Dive Brief:
- The global economic contribution of the travel and tourism industry is set to reach an all-time high of $11.1 trillion in 2024, the World Travel & Tourism Council forecasted.
- This year, the travel and tourism sector will contribute $770 billion more than its previous record, generating one in every $10 worldwide, according to WTTC. The sector, “brimming with opportunities,” is underpinning almost 348 million jobs globally, the organization said.
- The WTTC predicts the travel and tourism sector will continue to grow over the next decade, though some of the largest tourism markets, including the U.S., will lag behind others. Overall, the growth will boost the global economy and employ a significant number of people, according to WTTC.
Dive Insight:
Despite a backdrop of macroeconomic and geopolitical uncertainty, the travel and tourism sector remains a “global economic powerhouse,” WTTC President and CEO Julia Simpson said in a statement.
In 2023, the sector represented 9.1% of global GDP at just over $9.9 trillion, WTTC found. Also in the year, the travel and tourism workforce grew by 27.4 million jobs, bringing the sector’s job total to nearly 330 million worldwide.
This growth was underpinned by increased international spending during the year, up 33.1% to reach $1.63 trillion, according to WTTC.
However, two of the largest tourism markets, the U.S. and China, lagged behind other countries in international visitor spending.
In 2023, international visitor spending in the U.S. was more than a quarter below 2019 peak levels, while in China, visitor spend remained almost 60% down, WTTC reported.
These lags pose a risk to continued growth, Simpson noted, calling on the American and Chinese governments to support their national travel and tourism sectors.
CBRE previously forecasted that the U.S. hotel industry, particularly, could benefit from roughly 4.7 million more overseas visitors in 2024.
Despite any potential lags in the U.S. and China, WTTC forecasted that the travel and tourism sector will see worldwide economic and job growth over the next decade.
By 2034, travel and tourism will make up 11.4% of the entire economic landscape, contributing $16 trillion to the global economy, WTTC forecasted. The sector will also employ some 449 million people worldwide, making up nearly 12.2% of the global workforce, WTTC predicted.
The U.S. hotel industry, specifically, is expected to see 12% job growth over the next five years, according to AHLA Foundation.
