Like a runaway train, the travel and tourism industry is projected to serve 30 billion tourist trips by 2034, according to the World Economic Forum – a development that will generate significant commercial opportunities, but also the massive challenges of climate change, labour shortages and infrastructure gaps, which will require nothing less than a “bold reimagining of the systems that underpin travel and tourism.”
To support the forecasted boom, the industry will need to expand significantly – requiring an estimated 7 million new hotel rooms, 15 million additional flights annually, and investment in other infrastructure capable of meeting the booming demand, according to the report, ‘Travel and Tourism at a Turning Point: Principles for Transformative Growth.’
The WEF reveals a projected $16 trillion contribution to global GDP by the same year – representing more than 11% of the total world economy, according to World Travel & Tourism Council estimates – additionally noting the sector is expanding 1.5 times faster than the global economy.
Why so fast?
Asia is on track to become the world’s fastest-growing tourism economy, with the direct travel and tourism GDP contribution expected to exceed 7% across the region by 2034. Notably, India and China alone will represent more than 25% of all outbound international travel by 2030.
Countries such as Sri Lanka, Thailand, Indonesia, and Saudi Arabia are also poised for significant growth, driven by substantial investment in their tourism sectors. This momentum is leading to a rise in international arrivals, increased tourism-related business activity and greater global visibility.
Sports and technology
Equally, high-growth segments like sports tourism, projected to hit $1.7 trillion by 2032, and ecotourism which is growing at 14%, are redefining travel priorities. The global travel technology market, worth $10.5 billion in 2024, is set to nearly double by 2033, as 91% of industry tech leaders anticipate aggressive investment increases.
Risks
However, the report also flags significant risks. Travel and tourism currently accounts for 8% of global greenhouse gas emissions, a figure that without intervention could rise to 15% by 2034. Waste generated by tourists is expected to reach 205 million tons annually, equivalent to 7% of the world’s solid waste. At the same time, workforce shortages are escalating. The UK alone saw 53% turnover in 2022-23, while the US hospitality industry continues 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, missing its potential to become a true driver of resilience, inclusion and regeneration.
“As global travel accelerates, we are standing at a pivotal crossroads,” said Børge Brende, President and CEO of the World Economic Forum. “The sector’s potential to drive inclusive prosperity, cultural understanding and environmental regeneration is immense – but realizing this opportunity will require more than incremental change.”
“It calls for a bold reimagining of the systems that underpin travel and tourism, anchored in multistakeholder collaboration. From aligning on sustainable fuel standards to empowering local communities in tourism planning, the time has come to redesign the rules to create a sector that works better for people and the planet. This report offers a blueprint to guide that transformation and unlock tourism’s full promise in a rapidly evolving world.”
“Tourism is a powerful driver of jobs, culture and economic growth around the world,” said Bob Willen, Managing Partner and Chairman at management consulting firm Kearney, which partnered in the report. “As the industry grows to meet the needs of billions more travellers, it also needs to evolve. That means using technology responsibly, supporting workers and small businesses, protecting the planet, and making sure local communities truly benefit… It’s about creating a travel and tourism sector that’s not just bigger, but works in everyone’s interests.”
An estimated 1.4 billion international tourists (overnight visitors) were recorded around the world in 2024, an increase of 11% over 2023, or 140 million more, according to the UN World Tourism Barometer.
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