The global travel sector is on a remarkable comeback journey, demonstrating resilience and strong growth after facing the challenges of recent years. Phocuswright’s latest Global Travel Market Report 2024 highlights this resurgence, revealing a stunning 24% increase in the travel market for 2023, culminating in a massive $1.5 trillion in gross bookings. This figure not only underscores the industry’s impressive recovery but also marks a significant milestone in the journey towards global travel revival.
North America, Asia-Pacific (APAC), and Western Europe continue to dominate the global travel landscape, solidifying their positions as leading regions in international tourism. These regions have consistently attracted the largest share of travelers, and their continued dominance is a testament to their robust infrastructure, diverse attractions, and strong economic recovery efforts.
While these established regions maintain their stronghold, the Phocuswright 2024 Report also sheds light on a dynamic shift within the global travel landscape. Among the top 15 markets, notable changes have emerged, with rankings being reshuffled and new players stepping onto the stage. This evolving landscape signifies not just a recovery but a transformation within the industry, making way for emerging markets and a broader global presence.
One of the most significant developments highlighted in the report is the substantial growth observed across several European markets. The strengthening of the euro against the US dollar has played a pivotal role in this surge, particularly in countries like Spain, which has led the charge with a remarkable 40% increase in travel market activity. Other major European players, including Italy, Germany, the UK, and France, have also seen significant gains, further cementing Europe’s position as a key driver of global travel growth.
The European Union (EU-28), comprising 28 member countries, has long been a powerhouse in the global travel sector. From 1980 to 2013, EU-28 tourism grew from 153 million international tourist arrivals to an impressive 433 million. During the same period, international tourism receipts increased from $55 billion to $403 billion. In 2013, the EU-28 countries accounted for 40% of international tourist arrivals worldwide, demonstrating their immense influence on global tourism.
Looking ahead, the EU-28 is projected to continue its growth trajectory, with international tourist arrivals expected to grow by 2.1% annually until 2025. By 2023, international arrivals in the EU-28 are expected to exceed half a billion, reaching 520 million in 2025 and 557 million by 2030. Notably, emerging economy destinations within the EU-28, such as Bulgaria, Croatia, Hungary, Latvia, Lithuania, Poland, and Romania, are anticipated to grow faster, at an average of 3.7% annually through 2025.
Europe, particularly the EU-28, continues to have the highest tourism density in the world. In 2010, EU-28 countries accounted for 505 million residents and 380 million international arrivals, averaging 75 arrivals per 100 residents. This density is expected to increase to 107 arrivals per 100 residents by 2030, showcasing the region’s continued appeal.
Air travel has increasingly become the preferred mode of transport for international travel globally, rising from 38% of international arrivals in 1980 to 51% in 2010. However, in Europe, where infrastructure for travel by car, coach, or train is highly developed, surface travel remains dominant, accounting for 54% of travel in 2010.
The majority of international arrivals in the EU-28 were for leisure, recreation, and holidays (59%) in 2010, while business travel accounted for 16%, and visits to friends and relatives (VFR), health, religion, or other reasons made up 25%.
A significant portion of the new arrivals in the two decades from 2010 to 2030 is expected to come from emerging economy source markets in Asia, Latin America, Central and Eastern Europe, Eastern Mediterranean Europe, Africa, and the Middle East.
As in most regions, the majority of international arrivals in EU-28 destinations originate from within the same region. In 2010, 75% of the 380 million arrivals in the EU-28 were from other EU-28 countries, while another 11% came from European countries outside the EU. Approximately 14% of arrivals were from outside Europe, with most visitors coming from the Americas (7%) and Asia and the Pacific (5%).
Arrivals in the EU from non-EU Europe and other regions are projected to grow at 2.9% annually, reaching 144 million by 2025. The growth in these markets presents significant opportunities for the EU-28 countries to diversify their visitor base and attract more long-haul travelers.
The Schengen visa is playing a pivotal role in fueling Europe’s tourism sector, making travel across multiple countries within the region seamless and accessible. By allowing visitors to move freely across 27 European nations with a single visa, the Schengen agreement significantly boosts the appeal of Europe as a destination, encouraging longer stays and multi-country trips. This ease of travel not only attracts millions of international tourists but also stimulates economic growth across the continent, particularly in popular destinations like Spain, France, and Italy. As a result, the Schengen visa continues to be a key driver in Europe’s thriving tourism industry, contributing to the region’s robust recovery and growth in the global travel market.
UNWTO’s long-term outlook, Tourism Towards 2030, indicates that there is substantial potential for further expansion in the coming decades. Both existing and new destinations can benefit from this opportunity, provided they ensure the right conditions with regard to the business environment, infrastructure, and travel facilitation.
For the EU-28 destinations, tourism will continue to show growth, albeit at a modest rate compared to other regions. To stay competitive and tap into potential demand, it is essential to continue creating and raising awareness, mainstreaming tourism in political agendas, and addressing challenges related to sustainability, infrastructure, accessibility, travel facilitation, changing consumer trends, and governance.
The global travel sector is not only recovering but transforming. As the Phocuswright 2024 Global Travel Market Report reveals, the industry is experiencing significant growth, with a 24% increase in 2023 alone, bringing the market to $1.5 trillion in gross bookings. Europe, particularly the EU-28, continues to play a pivotal role in this resurgence, driven by strong market performance and a growing number of international arrivals. Emerging markets are also stepping up, reshaping the global travel landscape and paving the way for a more diverse and dynamic future.
As the world continues to navigate through post-crisis recovery, the opportunities for growth and expansion in the travel sector are immense. The focus now shifts to ensuring sustainable development, maintaining competitiveness, and adapting to changing trends to secure the future of global tourism.
