The World Travel & Tourism Council (WTTC) estimates that travel will contribute $11.1 trillion to global GDP in 2024. This represents a 12.1% increase from the previous year and 7.5% higher than the pre-pandemic records set in 2019. This means that one in every $10 spent worldwide in 2024 will be on travel.
The WTTC’s 2024 Economic Impact Trends Report, released on August 4, identified the United States as the leading player in the travel and tourism market. In 2023, the United States 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 that we would enter a global recession and high inflation, this year we believe that travel and tourism will be a real global economic powerhouse,” said Julia Simpson, President and CEO of WTTC.
Each year, the WTTC produces reports on the economic and employment impact of travel and tourism for 185 countries or economies and 28 geographic or economic regions around the world.
Global data (key results for 2024)
1. Spending by international visitors:
Global international visitor spending showed an annual change of +12.1% compared to 2019.
2. Trips abroad (worldwide):
Flight departures from several countries are projected to grow significantly, with key source markets including the United Arab Emirates (18%) and Thailand (9%).
These 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 dollars
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 dollars
8. India: $231.6 billion
9. Italy: $231.3 billion
10. Spain: 227.9 billion dollars
Where does India rank in the world?
India’s role in global tourism is increasing and the country now ranks eighth. In 2023, it contributed $231.6 billion to its GDP through travel and tourism, up from its previous tenth position.
Among the countries that surpass India are China in second place with $1.3 trillion and Germany in third place with $487.6 billion. Japan with $297 billion and the United Kingdom with $295.2 billion round out the top five.
Emerging markets and expected changes
One of the report’s key findings is the predicted shift in the global travel landscape over the next decade. China is expected to overtake the United States as the world’s largest travel market, while India is projected to rise to fourth place.
China’s travel sector saw a remarkable growth of 135.8% in 2023, following the easing of travel restrictions. Other Asian markets such as Hong Kong SAR, Malaysia and the Philippines also saw a strong recovery.
India’s Perspectives
India’s travel and tourism sector is expected to contribute $256.1 billion to the economy by 2024, accounting for 10.4% of the country’s GDP. Here are the key figures, according to WTTC:
Highlights:
1. India’s labour market in the travel and tourism sector:
It is estimated that India’s travel and tourism industry will employ 330 million people by 2024.
By 2034, 69.5 million new jobs are projected to be created, bringing the global total to 449 million.
3. Growth of Indian economy:
The Indian economy is expected to grow at an annual rate of 10.0% between 2024 and 2034.
The travel and tourism sector alone will grow at a CAGR of 9.1% during this period.
4. Domestic and international spending:
In 2023, domestic spending accounted for 95.2% of total travel and tourism spending, and international visitor spending accounted for 4.8%.
Domestic visitor spending is expected to account for 85.8% of total spending in 2023.
5. Inbound and outbound tourism:
The top inbound visitor markets to India in 2023 were Bangladesh (9%), the United States (9%) and the United Kingdom (6%).
India’s top source markets include the United Arab Emirates (18%), Thailand (9%) and the United States (7%).
Trends in international spending and domestic tourism
By 2024, international traveler spending is projected to increase by 16% to reach $1.9 trillion globally. Domestic tourists are also expected to increase their spending, with a projected increase of 10.3% over 2019 levels, amounting to $5.4 trillion.
Several countries are experiencing large increases in spending by international visitors, including:
Saudi Arabia:an increase of 91.3% compared to 2019.
Türkiye, Kenya, Colombia and Egypt:leader in international spending growth.
Global domestic tourism spending is expected to exceed $5.4 trillion.
These trends point to a full recovery of the sector, driven by both international and domestic demand.
Investment and sustainability challenges
Travel investment grew by 13% in 2023, reaching over $1 trillion, marking a recovery to pre-pandemic levels. However, there are challenges ahead. High global interest rates could impact future investments, but the WTTC highlighted the need for public-private partnerships to drive innovation.
Sustainability has become a major issue in the sector. The report highlights the decoupling of sector growth from greenhouse gas emissions, which is important for tackling climate change. In addition, the sector is creating more opportunities for underrepresented groups, including women and young people.
Technological advances, particularly in artificial intelligence (AI), are set to revolutionise the travel industry. WTTC sees AI as a key enabler in improving customer experience and operational efficiency, which is expected to drive future demand.
Looking ahead, WTTC expects record growth for the travel industry in 2024. Simpson said: “As we look forward to a record 2024, it is clear that travel and tourism is not only returning to normal, but is also set to achieve unprecedented growth.”
Simpson noted that sustainability and inclusion remain top priorities for the sector, ensuring that growth benefits everyone while safeguarding the environment for future generations.
The sector is expected to support nearly 348 million jobs globally, an increase of 13.6 million from 2019. The hospitality and leisure industries continue to hire, with more than 1 million open positions in the U.S. alone, according to the report.
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