Tourism conditions improve across most economies despite global headwinds: WEF

Travel and tourism conditions have strengthened across most of the world, but destinations face a growing challenge: turning record demand into lasting value amid rising costs, geopolitical and climate disruption, workforce shortages and mounting pressure on infrastructure and communities, according to a new World Economic Forum (WEF) report. 

Developed in collaboration with Zurich Insurance Group, the 10th edition of the Travel & Tourism Development Index (TTDI) 2026, launched yesterday (September 25) at Beyond Tourism Day, finds that 101 of 110 ranked economies improved their scores between 2024 and 2026, with the average rising 2.1% - the fastest pace since 2019. 

Gains were driven by increased cultural resources, tourism infrastructure and services, and air connectivity and business travel. Japan leads the Index, followed by the United States, Spain, Australia and France.

"The latest TTDI data shows that the enabling conditions for travel and tourism are at their strongest since the pandemic, with 92% of economies improving since 2024,” said Ramya Krishnaswamy, Head of Experience Economy and Cities, World Economic Forum. 

"The next chapter is not simply about attracting more visitors, but it is going to be about creating greater value by investing in people, infrastructure and stronger public-private collaboration so tourism delivers lasting benefits for communities, businesses and destinations," she stated.

The Index also shows that tourism is facing growing challenges. Between 2024 and 2026, travel became less affordable in three out of four economies, while tourism investment failed to keep pace with rising demand and labour shortages threatened further growth. 

Benefits for local communities also weakened during this period, highlighting that more visitors do not automatically translate into better livelihoods or higher quality jobs, particularly in destinations where tourism is highly seasonal, she added.

Despite these pressures, emerging tourism economies are gaining ground. Since 2019, the largest emerging economies have improved their TTDI scores more than twice as fast as the Top 20, with Asia-Pacific economies accounting for seven of the 10 fastest-improving performers. Albania recorded the largest overall gain between 2024 and 2026.

"Tourism is a major part of the global economy, and the TTDI makes clear that resilience is what keeps that value intact when conditions change," remarked Cara Morton, CEO Global Businesses and Operations, Zurich Insurance Group. “That kind of resilience requires business and governments to take responsibility together.”

Drawing on nearly two decades of WEF benchmarking, the TTDI measures the factors and policies that enable the sustainable and resilient development of travel and tourism. 

It does not measure tourism performance directly – such as arrivals, spending, or revenue – but the underlying conditions that enable destinations to attract, support and sustain tourism in ways that benefit economies and societies.-TradeArabia News Service