The United States remains the world’s leading Travel & Tourism market, contributing a record-breaking $2.36 trillion to the nation’s economy in 2023, according to the World Travel & Tourism Council (WTTC).
“As we look forward to a record-breaking 2024, it’s clear that Travel & Tourism is not only back on track but also poised for unprecedented growth,” said WTTC President & CEO Julia Simpson.
Top five
According to the WTTC’s 2024 Economic Impact Trends Report, despite a slow return of spending from international travelers, the U.S. maintains its top position with nearly double the economic contribution of its closest competitor, China.
Following a landmark year for Travel & Tourism, the sector remains a cornerstone for many national economies and supports millions of jobs globally. The report highlights China as the world’s second most significant market, with a GDP contribution of $1.3 trillion in 2023. This underscores China’s impressive rebound, despite its late border reopening.
Germany ranks third with an economic contribution of $487.6 billion. Japan, which held the fifth position in 2022, has risen to fourth place, contributing $297 billion. The United Kingdom rounds out the top five, contributing $295.2 billion to its GDP.
Top 10 global Travel & Tourism markets
France, the world’s most popular destination, retained its sixth position with a contribution of $264.7 billion. Mexico follows closely with a contribution of $261.6 billion, highlighting its continued appeal as a major tourist destination.
India secured the eighth spot, rising from tenth place in the previous year, with a contribution of $231.6 billion. This significant improvement underscores its growing influence in the sector. Italy and Spain complete the top ten, with contributions of $231.3 billion and $227.9 billion, respectively.
Emerging markets gaining ground
Looking ahead, the WTTC forecasts that China will become the largest Travel & Tourism market over the next decade, with India moving up to fourth place. These anticipated shifts reflect the dynamic nature of the global Travel & Tourism sector, as emerging markets gain prominence while traditional leaders continue to hold their ground.
The report also highlights countries experiencing the highest annual growth rates in Travel & Tourism contributions to GDP. In 2023, China led with an impressive year-on-year growth rate of 135.8%. Other Asian countries, including Hong Kong SAR, Malaysia, and the Philippines, showed strong recovery following the removal of travel restrictions.
International travelers’ spending
Globally, international visitor spending is projected to grow by nearly 16%, reaching $1.9 trillion. Domestic tourism is also set to see significant growth, with projected spending exceeding $5.4 trillion, marking a 10.3% increase over 2019 levels.
Investment trends
Travel & Tourism investment increased by 13% in 2023, surpassing $1 trillion. The sector is projected to return to pre-pandemic investment levels by 2025.
However, global high interest rates may pose challenges for future investments. To navigate these challenges, it is essential for both the public and private sectors to collaborate on innovative strategies to continuously strengthen this crucial sector.
Growth, opportunity, technology
The report also emphasizes the sector’s commitment to sustainability, noting the successful decoupling of economic growth from greenhouse gas emissions. Additionally, there are growing opportunities for women, young people, and marginalized communities within the sector. Technological advancements, particularly in artificial intelligence (AI), are expected to further enhance the travel experience and drive future growth.
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