The U.S. has been named the world’s most powerful travel and tourism market by the World Travel & Tourism Council (WTTC), contributing a staggering $2.36 trillion to its economy in 2023.
The announcement comes as part of WTTC’s 2024 Economic Impact Trends Report, which highlights the resilience and growth of the global travel industry despite ongoing challenges.
Even with the slow recovery of international traveler spending, the U.S. remains at the forefront, nearly doubling the economic contribution of its closest competitor, China.
The WTTC report ranks China as the second most powerful travel and tourism market, with a GDP contribution of $1.3 trillion in 2023. Despite the late reopening of its borders, China has shown an impressive rebound, demonstrating its strength and influence in the global tourism sector.
Germany is the third-largest market, contributing $487.6 billion, while Japan, which climbed from fifth to fourth place, added $297 billion. The United Kingdom rounds out the top five with $295.2 billion.
Julia Simpson, WTTC President & CEO, remarked on the positive trends, stating, “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. We will continue to prioritise sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations.”
France remains the world’s most popular tourist destination and retains the sixth spot on the WTTC ranking, contributing $264.7 billion, while Mexico follows closely with $261.6 billion. India has climbed from tenth to eighth place, contributing $231.6 billion, showcasing its growing influence in the sector. Italy and Spain complete the top ten, contributing $231.3 billion and $227.9 billion, respectively.
Looking ahead, WTTC forecasts that China will surpass the U.S. to become the largest travel and tourism market in the next decade, with India also projected to rise to fourth place. These shifts reflect the dynamic nature of the global travel landscape, with emerging markets rapidly gaining ground and challenging traditional powerhouses.
The report also highlights remarkable growth rates in travel and tourism contributions to GDP. In 2023, China led with an astounding year-on-year growth of 135.8%, followed by strong recoveries in other Asian countries like Hong Kong SAR, Malaysia, and the Philippines. Meanwhile, destinations such as Saudi Arabia, Türkiye, Kenya, Colombia, and Egypt have also experienced significant increases in international spending compared to pre-pandemic levels.
Global travel spending is expected to continue its upward trend. International visitor spending is projected to grow by nearly 16% to reach $1.9 trillion, while domestic tourists are set to spend more than ever, reaching $5.4 trillion, a 10.3% increase over 2019 levels. Investment in the sector grew by 13% in 2023, reaching over $1 trillion, with a return to pre-pandemic investment levels anticipated by 2025.
However, high interest rates globally could pose challenges for future investments in the sector. To ensure continued growth and stability, collaboration between public and private sectors is crucial, fostering innovation and strategic investments.
The WTTC report also emphasizes the sector’s ongoing commitment to sustainability and inclusivity. It showcases efforts to decouple growth from greenhouse gas emissions and highlights increasing opportunities for women, young people, and marginalized communities. Technological advancements, especially in AI, are expected to further enhance travel experiences and drive future growth.
