The World Travel & Tourism Council (WTTC) has released its 2024 Economic Impact Trends Report, highlighting the US as the global leader in travel and tourism, generating a record-breaking $2.36 trillion in economic contribution last year. Despite the slower return of international spending, the US maintains its top spot, with nearly double the economic impact compared to its closest competitor.
The report underscores the sector’s global importance, with travel and tourism serving as a crucial economic backbone for numerous countries and supporting millions of jobs worldwide. In 2023, China emerged as the world’s second-largest travel and tourism market, contributing $1.3 trillion to its GDP. This impressive rebound comes despite the late reopening of its borders, showcasing its remarkable recovery. Germany secured the third position with a $487.6 billion contribution, while Japan jumped to fourth place, contributing $297 billion, surpassing its previous position in 2022. The United Kingdom rounds out the top five, contributing $295.2 billion.
While the US maintains its current leadership, the WTTC predicts a shift in the global landscape over the next decade. China is expected to become the world’s biggest travel and tourism market, while India is projected to ascend to the fourth position. This dynamic signifies the evolving nature of the global travel and tourism sector, with emerging markets gaining momentum while traditional powerhouses retain their influence.
The report also reveals the countries experiencing the most significant annual growth rates in travel and tourism contributions to GDP. China led the charge in 2023 with a staggering 135.8% year-on-year growth, reflecting its rapid recovery following the lifting of travel restrictions. Other Asian countries, such as Hong Kong, Malaysia, and the Philippines, also experienced substantial rebounds.
Julia Simpson, WTTC President & CEO, stated, “As we look forward to a record-breaking 2024, it’s clear that Travel & Tourism is not only back on track but also set to achieve unprecedented growth. We will continue to prioritize sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations. The sector’s resilience and potential for innovation continue to drive us forward.”
The report predicts a surge in international spending in 2024 compared to pre-pandemic levels, with key destinations like Saudi Arabia (+91.3%), Turkey (+38.2%), Kenya (+33.3%), Colombia (+29.1%), and Egypt (+22.9%) leading the way. Global international visitor spending is projected to increase by nearly 16% to reach $1.9 trillion, while domestic tourists are expected to spend more than ever before, reaching $5.4 trillion, a 10.3% increase from 2019 levels.
Travel and tourism investments saw a 13% growth in 2023, surpassing $1 trillion, with a return to pre-pandemic levels anticipated by 2025. However, high interest rates across the globe pose potential challenges for future investment. Collaborative efforts between the public and private sectors are crucial to ensure continued innovation and strengthening of this vital sector.
The report emphasizes the sector’s commitment to sustainability, demonstrating the decoupling of growth from greenhouse gas emissions and the increasing opportunities for women, young people, and marginalized communities. Advancements in technology, particularly artificial intelligence (AI), are expected to enhance the travel experience and fuel future growth.
