Travel industry growth to outpace global economy: WTM Global Travel report

The travel industry is set to grow at a faster pace than the global economy over the next 10 years, according to the World Travel Market Global Travel Report.

Released on November 4, on the first day of WTM London, the report says: “Over the next decade, the industry is on track to post annual growth of 3.5%, surpassing global economic growth of 2.5% per year over the same period.”

By 2035, the travel industry is expected to generate more than $16 trillion globally, representing nearly 12% of global GDP, according to WTTC’s 2025 economic impact research, conducted in collaboration with Oxford Economics.

These optimistic projections come as the global travel industry reached record levels in 2025, with international arrivals set to top 1.5 billion, surpassing the previous record achieved in 2019.

The report outlines key reasons for the growth forecasts, saying more travellers will be heading further afield and booking longer stays.

Continued economic growth in emerging markets, especially in Asia Pacific, will also fuel more travel.

More broadly, consumers are prioritising their spending on travel, which remains a high share of overall expenditure, despite increasing costs in many parts of the world.

Furthermore, people are increasingly buying experiences rather than material items, and live events are a key driver in this sector. 

The report notes: “Destinations are actively encouraging major touring artists to host events in their cities following the successes of a series of high-profile concerts, including Taylor Swift’s Eras Tour – attended by more than 10 million people – and Oasis’ Live ’25 Tour, which is set to attract nearly two million fans across 13 countries in 2025.”

Other trends continue to shape the market, with many more tourists heading off the beaten track or booking trips in shoulder seasons to avoid high summer temperatures.

Travel’s environmental impact is expected to come under increasing scrutiny. However, with consumers resistant to paying more, it will be difficult to swiftly fund the modernisation needed to improve sustainability. 

Northern locations have an opportunity due to the ‘coolcations’ trend, adds the report, with arrivals to Sweden, Norway and Finland expected to grow by 9% in 2025, outpacing more traditional summer destinations.

However, bucket list destinations are set to remain popular as iconic and must-see places continue to benefit from powerful social media exposure, notes the report. 

Expansion is predicted in the aviation, cruise and accommodation sectors. 

More than 15,000 new aircraft are on the order books of Boeing and Airbus; global cruise deployment is on track to increase by almost 6% in 2025; and more than 500,000 new hotel rooms will open this year, with a further one million being built.

The report confirms that digital platforms are also driving growth, with social media, online travel agents and review sites growing in popularity. AI has quickly become a major driver of demand, with three times as many travel professionals saying AI tools will help to increase, rather than decrease, overall travel spend.

Nonetheless, the report also notes: “While the outlook for travel is strong, economic and geopolitical headwinds are an immediate concern.”

It says trade tariffs announced by the Trump administration are adding to business costs, while industry continues to face a skills shortage.

While there are prospects for growth in most regions, the immediate outlook in North America is “less optimistic”, says the report, with inbound arrivals to the United States set to decrease 6% in 2025 – meaning that 2019 peak levels are unlikely to be regained until 2029.

Chris Carter-Chapman, WTM London’s Event Director, says: “With the accelerating rate of change in travel, our event and content such as this report will support industry professionals as they navigate the opportunities and challenges ahead. 

“The WTM Global Travel Report reflects this year’s theme of ‘Reimagining Travel in a Changing World’ and explores the topics that will be examined in more detail across our conference tracks, ranging from diversity and inclusion to geo-economics, sustainability, technology and trends. 

“With travel at record levels and set to outpace the wider economy over the next 10 years, WTM London is the place to be in order to network, plan and make business deals.”

Dave Goodger, Managing Director EMEA at Tourism Economics, adds: “Our latest global travel trends report, produced in partnership with World Travel Market, provides an important manual for the industry to understand and capitalise on the ever-changing dynamics of global travel.” -TradeArabia News Service