CashNews.co
The World Travel & Tourism Council (WTTC) estimates that travel will contribute $11.1 trillion to the global GDP in 2024. This represents an increase of 12.1% from the previous year and 7.5% higher than pre-pandemic records set in 2019. This means, one in every 10 dollars spent worldwide in 2024 will be on travel.
Released on August 4, the WTTC’s 2024 Economic Impact Trends Report identified the United States as the leading player in the travel and tourism market. In 2023, the US added $2.36 trillion to its economy through this sector, outpacing any other country, despite the slower return of international tourists.
“Despite some concerns last year about us going into a global recession and high inflation, this year we are looking at travel and tourism being a real economic powerhouse globally,” said Julia Simpson, WTTC’s president & CEO.
Every year, WTTC produces reports on the economic and employment impact of Travel & Tourism for 185 countries or economies and 28 geographic or economic regions in the world.
Global data (2024 key highlights)
1. International visitor spending:
Global international visitor spending showed an annual change of +12.1% as compared to 2019.
2. Outbound departures (worldwide):
Outbound departures from various countries are projected to grow significantly, with key source markets like the United Arab Emirates (18%) and Thailand (9%).
Here are the top 10 countries ranked by their contribution to GDP through travel and tourism in 2023, according to the WTTC report:
1. United States: $2.36 trillion
2. China: $1.3 trillion
3. Germany: $487.6 billion
4. Japan: $297 billion
5. United Kingdom: $295.2 billion
6. France: $264.7 billion
7. Mexico: $261.6 billion
8. India: $231.6 billion
9. Italy: $231.3 billion
10. Spain: $227.9 billion
Where does India stand in the global rankings?
India’s role in global travel is rising, with the country now ranked eighth. It contributed $231.6 billion to its GDP through travel and tourism in 2023, moving up from its previous tenth position.
Countries ahead of India include China, in second place with $1.3 trillion, and Germany, in third, adding $487.6 billion. Japan, with $297 billion, and the UK, contributing $295.2 billion, round out the top five.
Emerging markets and predicted shifts
A key insight from the report is the predicted shift in the global travel landscape over the next decade. China is expected to overtake the US as the world’s largest travel market, while India is projected to rise to fourth place.
China’s travel sector experienced a remarkable 135.8% growth in 2023, following the easing of travel restrictions. Other Asian markets like Hong Kong SAR, Malaysia, and the Philippines also saw strong recoveries.
India outlook
India’s travel and tourism sector is expected to contribute $256.1 billion to the economy in 2024, making up 10.4% of the country’s GDP. Here’s key data, according to WTTC:
Key highlights:
1. India’s job market in travel & tourism:
In 2024, India’s travel and tourism industry is estimated to employ 330 million people.
By 2034, 69.5 million new jobs are projected, bringing the worldwide total to 449 million.
3. Growth in Indian economy:
The Indian economy is expected to grow at an annual rate of 10.0% from 2024 to 2034.
The travel and tourism sector alone will grow at a CAGR of 9.1% over this period.
4. Domestic and international spending:
In 2023, domestic spending made up 95.2% of the total travel and tourism spending, with international visitor spending at 4.8%.
Domestic visitor spending is forecast to account for 85.8% of total spending by 2023.
5. Inbound and outbound tourism:
The top inbound visitor markets for India in 2023 were Bangladesh (9%), the United States (9%), and the United Kingdom (6%).
Key outbound markets from India include the United Arab Emirates (18%), Thailand (9%), and the United States (7%).
International spending and domestic tourism trends
In 2024, international traveller spending is set to increase by 16%, reaching $1.9 trillion globally. Domestic tourists are also expected to boost their spending, with a projected increase of 10.3% over 2019 levels, amounting to $5.4 trillion.
Several countries are seeing large surges in international visitor spending, including:
Saudi Arabia: up 91.3% compared to 2019.
Türkiye, Kenya, Colombia, and Egypt: leading in international spending growth.
Domestic tourism spending globally is expected to exceed $5.4 trillion.
These trends point towards a full recovery for the sector, driven by both international and domestic demand.
Investment and sustainability challenges
Investment in the travel sector grew by 13% in 2023, reaching over $1 trillion, marking a recovery to pre-pandemic levels. However, there are challenges ahead. High interest rates globally could affect future investments, but the WTTC stressed the need for partnerships between the public and private sectors to drive innovation.
Sustainability has become a major focus within the industry. The report noted the decoupling of sector growth from greenhouse gas emissions, which is important in addressing climate change. Additionally, the sector is creating more opportunities for underrepresented groups, including women and young people.
Technological advancements, particularly in artificial intelligence (AI), are poised to revolutionise travel. The WTTC sees AI as a key driver in enhancing customer experiences and operational efficiency, which is expected to fuel future demand.
Looking ahead, the WTTC expects record-breaking growth for the travel industry in 2024. Simpson said, “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.”
Simpson pointed out that sustainability and inclusivity remain top priorities for the sector, ensuring growth benefits everyone while safeguarding the environment for future generations.
The sector is expected to support almost 348 million jobs globally, an increase of 13.6 million from 2019. Hospitality and leisure industries are still hiring, with over one million job vacancies in the US alone, according to the report.