Your frequent flying and hotel-hopping adventures are significantly shaping the global economy.
The World Travel & Tourism Council (WTTC) projects that the travel industry will soar to a historic $11.1 trillion in 2024, surpassing the previous peak of $10 trillion recorded in 2019. Moreover, tourism is anticipated to burgeon into a $16 trillion juggernaut within the next decade, constituting 11.4 percent of the global GDP by 2034.
These projections are detailed in the WTTC’s 2024 Travel & Tourism Economic Impact Report, which Bloomberg obtained in advance of wider circulation. Developed in collaboration with research consultancy Oxford Economics, the latest report meticulously examines the economic ramifications of travel and tourism across various metrics. Analysts amalgamated data from governmental sources and industry bodies with travel prognostications to ascertain the sector’s future trajectory.
The unprecedented boom in travel is largely contingent on the conditions of the Chinese and American markets, Bloomberg reports. International arrivals in both nations significantly lagged behind pre-pandemic levels in 2023. Factors such as the robustness of the U.S. dollar and persistent visa delays have dissuaded travelers from visiting the United States, as noted by WTTC’s president and CEO Julia Simpson. Conversely, China’s fluctuating economy and political landscape have impeded inbound travel to the country. However, both countries are anticipated to rebound this year, propelling the industry to these astronomical trillion-dollar milestones.
The colossal figures can be dissected into three categories of travel expenditures, Bloomberg explains. Direct travel spending encompasses expenses like accommodation, excursions, and transportation, as well as public investments in these services. Indirect travel spending encompasses the outlays of businesses supporting the travel sector, such as linens and provisions for hotel buffets. Finally, induced spending encompasses the downstream effects on the economy stemming from employment in the hospitality sector.
In total, 142 out of 185 surveyed countries are projected to surpass their 2019 tourism performance levels in 2024. Nearly all nations are anticipated to experience year-over-year growth, setting records at both local and global levels.
“Travel isn’t merely rebounding; it’s experiencing an unprecedented surge,” asserts Simpson. “We’re witnessing the resurgence of a remarkably robust sector.”
