The travel industry is experiencing a remarkable resurgence, with its global economic impact expected to reach a record-breaking $11.1 trillion in 2024. This surpasses the previous high of $10 trillion set in 2019. According to a report by the World Travel & Tourism Council (WTTC), tourism is projected to grow even further, potentially becoming a $16 trillion industry by 2034, making up 11.4% of the global GDP.

Currently, 1 in 10 jobs worldwide are linked to tourism, and by 2034, this figure is expected to increase to 12.2%. The WTTC’s 2024 Economic Impact Research, produced with Oxford Economics, highlights that the travel sector’s growth aligns with previous forecasts, though 2023's rebound occurred despite lower international arrivals from key markets like China and the U.S.

The report breaks down travel’s economic impact into three categories: direct spending (on things like hotels and transportation), indirect spending (like purchases made by businesses that serve travelers), and induced spending (where tourism employees spend their earnings locally). Notably, domestic travel spending is also reaching new heights, projected to hit $5.4 trillion in 2024, a 10% increase from 2019.

WTTC President Julia Simpson noted that challenges like a strong U.S. dollar and visa delays have impacted international travel to the U.S., while China remains the slowest to recover among 185 countries surveyed. Despite these hurdles, most countries are expected to exceed their pre-pandemic tourism performance levels this year, signaling a strong and resilient travel sector.

As Simpson puts it, “Travel isn’t just back, travel is booming.”

Source: Bloomberg