Despite a slow return to travel following the COVID-19 pandemic, the United States is still the world’s most powerful travel and tourism market, according to the World Travel & Tourism Council’s (WTTC) recently released 2024 Economic Impact Trends report.
What’s more, the sector’s contribution to the nation’s economy was record-breaking in 2023, at $2.36 trillion. China is the world’s second-most-powerful market (contributing $1.3 trillion in 2023), followed by Germany ($487.6 billion) and Japan ($297 billion). The top five is rounded out by the United Kingdom, at $295.2 billion. Other hot spots on the list include France, Mexico, India, Italy and Spain.
Our Analysis: Tourism Will Continue to Experience Record-Breaking Growth
These latest figures make one thing crystal clear: Travel and tourism is not just rebounding, it is thriving (and, according to the report, numbers are set to reach pre-pandemic levels globally by 2025). Travel advisors who stuck it out through the pandemic are now reaping the rewards, but they must proceed thoughtfully, choosing destinations and suppliers that keep sustainability, inclusion, overtourism and social impact in mind.
We must also acknowledge the barriers to travel (including high interest rates, notes the WTTC), in addition to those factors that strengthen the market (such as technological advancements in artificial intelligence). WTTC recommends that the public and private sectors work hand in hand to continue to push for future growth.
Fast Facts: Here’s What Else the Report Found
– Globally, international visitor spending will increase 16% (to $1.9 trillion).
– Destinations listed as profiting from a surge in international spending include Saudi Arabia (up 91.3% over 2019), Turkey (up 38.2%), Kenya (33.3%), Colombia (29.1%) and Egypt (22.9%).
– The report also shows which countries received the highest annual growth rates (measured in travel contributions to the GDP), which is led by China (at 135.8% growth). Other destinations in Asia, including Hong Kong, Malaysia and the Philippines, also showed a hasty recovery after COVID-19 restrictions were lifted.
– Domestic tourists are expected to set new spending highs, reaching $5.4 trillion, up 10% over 2019)
What They Are Saying: Resilience and the Potential for Innovation Paint a Sunny Forecast for the Tourism Market
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,” said Julia Simpson, president and CEO of the WTTC. “We will continue to prioritize sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations. The sector’s resilience and potential for innovation continue to drive us forward.”
