Travel Sector Forecasted to Surpass Global Economic Growth: WTM Report

The travel industry is projected to expand at a pace exceeding that of the global economy over the next decade, as stated in the latest report from World Travel Market (WTM).

Key Insights from the Report

• Over the next ten years, the industry anticipates an annual growth rate of 3.5%, compared to the 2.5% rate of global economic growth.
• By 2035, worldwide travel is expected to exceed $16 trillion, making up nearly 12% of global GDP according to the 2025 research by the World Travel & Tourism Council (WTTC).
• The report reflects a rebound to record levels for global travel, with international arrivals expected to surpass 1.5 billion visitors in 2025, overcoming the previous peak in 2019.
• Significant factors driving this growth include increased travel to distant destinations, longer stays, and rising disposable incomes in emerging markets, especially in the Asia Pacific region.
• Travellers are inclined to spend more on experiences rather than material goods, highlighting the growing popularity of live events, including concerts from artists like Taylor Swift, which attracted millions.

Industry Challenges

Despite the optimistic outlook, economic and geopolitical factors pose risks to growth, including higher operational costs due to tariffs and ongoing skills shortages within the industry.

Chris Carter-Chapman commented, “With the rapid changes in travel, resources such as this report are vital for industry professionals navigating future opportunities and challenges.”

The report underscores a strong potential for the aviation, cruise, and lodging sectors, with new innovations and advancements. However, as the industry faces scrutiny over its environmental impact, funding for sustainable modernization remains a challenge.

For more details on this report and the future of travel, please explore the full report by WTM.