Travel and Tourism Industry on the Cusp of a New Era: $16 Trillion Contribution to Global GDP by 2034

The World Economic Forum has published a new report forecasting a significant expansion of the travel and tourism industry, with the sector projected to serve 30 billion tourist trips by 2034. The report, produced in collaboration with Kearney and the Ministry of Tourism Saudi Arabia, reveals that the industry is expected to contribute $16 trillion to global GDP by 2034, representing more than 11% of the total world economy. The sector is expanding 1.5 times faster than the global economy, generating significant commercial opportunities, but also posing challenges such as climate change, labor shortages, and infrastructure gaps.

Key Takeaways:

• The travel and tourism industry is expected to serve 30 billion tourist trips by 2034, with a projected $16 trillion contribution to global GDP.
• The sector is expanding 1.5 times faster than the global economy, generating significant commercial opportunities.
• Asia is on track to become the world's fastest-growing tourism economy, with a direct travel and tourism GDP contribution expected to exceed 7% across the region by 2034.
• Countries such as India and China will represent more than 25% of all outbound international travel by 2030.
• The global travel technology market is worth $10.5 billion in 2024 and is set to nearly double by 2033.
• The industry will need to expand significantly to support the boom, requiring an estimated 7 million new hotel rooms, 15 million additional flights annually, and investment in infrastructure capable of supporting 30 billion trips globally.
• The report flags significant risks, including 8% of global greenhouse gas emissions from travel and tourism, which could rise to 15% by 2034, and waste generated by tourists expected to reach 205 million tons annually.
• Workforce shortages are escalating, with the UK alone seeing 53% turnover in 2022-2023, and the US hospitality industry continuing to lag in hiring despite 16%-above-inflation wage increases.
• Without decisive, coordinated action, the sector could face up to $6 trillion in lost revenue by 2030 from future disruptions.
• The report offers a blueprint to guide the transformation of the travel and tourism industry and unlock its full promise in a rapidly evolving world.

Statistics:

• $16 trillion: projected contribution of travel and tourism to global GDP by 2034
• 30 billion: expected number of tourist trips by 2034
• 1.5: multiple by which the sector is expanding faster than the global economy
• 7%: direct travel and tourism GDP contribution expected to exceed across Asia by 2034
• 25%: proportion of all outbound international travel expected to come from India and China by 2030
• $10.5 billion: worth of the global travel technology market in 2024
• 2033: year by which the global travel technology market is set to nearly double
• 7 million: estimated number of new hotel rooms required to support the industry's growth
• 15 million: additional flights annually expected to be required to support the industry's growth
• 205 million tons: expected waste generated by tourists annually by 2034
• 8%: proportion of global greenhouse gas emissions from travel and tourism
• 15%: potential proportion of global greenhouse gas emissions from travel and tourism by 2034
• 53%: turnover rate in the UK hospitality industry in 2022-2023
• 16%: above-inflation wage increases for hospitality workers in the US
• $6 trillion: potential lost revenue for the industry by 2030 from future disruptions

Sources:

• "Travel and Tourism at a Turning Point: Principles for Transformative Growth" report by the World Economic Forum, Kearney, and the Ministry of Tourism Saudi Arabia.
• World Travel & Tourism Council estimates.