Paris is the world’s most powerful city destination, according to new research from the World Travel & Tourism Council, but the French capital is bound to be overtaken by ‘staggering’ Beijing by 2032 reveals the WTTC forecast.
The report, sponsored by Visa and researched in partnership with Oxford Economics, analyzed key indicators such as Travel & Tourism’s contribution to GDP, employment and traveller spend.
COVID-19 had a devastating impact on Travel & Tourism and in particular major cities around the world as countries closed their borders in response to the pandemic. And as borders reopened, many leisure travellers swapped city visits for less-populated destinations such as coastal and rural destinations, but latest research from WTTC shows that city holidays are back and growing in popularity.
Paris takes the crown as the world’s most powerful city destination with a Travel & Tourism sector worth almost US$36 billion in 2022, in terms of direct GDP contribution to the city.
But over the next 10 years, WTTC predicts it will drop down to third place, although its value will rise to over $49BN.
Beijing is currently the second biggest city destination in the world with a Travel & Tourism sector worth nearly $33BN. However, WTTC predicts it will leapfrog Paris within the next 10 years, growing to a staggering $77BN.
Often dubbed the ‘theme park capital of the world,’ Orlando’s Travel & Tourism sector was valued at $31BN in 2022, but despite predictions suggesting it will grow by almost 50% to $45BN by 2032, it will drop down to become the fourth biggest city destination.
China’s national Travel & Tourism sector has seen phenomenal growth over the last decade as the country has invested in new hotels, transport infrastructure and new tourist destinations.
This investment in Travel & Tourism sees Shanghai’s sector, worth nearly $30BN last year, predicted to more than double to almost $71BN by 2032, to become the world’s second most powerful city destination.
Las Vegas is the only city in the top 10 list which holds its place, firmly staying as the 5th largest city destination.
WTTC President & CEO Julia Simpson says, “Major cities such as London, Paris and New York will remain global powerhouses, but over the next few years, Beijing, Shanghai, and Macau will be moving up the list of top city destinations.
“Tourists will always have favourite cities that they will return to, but as other countries prioritize Travel & Tourism, we are going to see new and emerging destinations challenging the traditional favourites.”
Other cities outside the top 10 showing promising growth as emerging destinations include the Polish capital of Warsaw, which has seen a 14.4% increase in its GDP contribution in 2022 versus 2019.
Orlando and Las Vegas are the only cities currently in the top 10 most powerful city destinations based on the sector’s value, which rely heavily on the sector as a share of the city’s overall economy. Travel & Tourism represents 20.4% of Orlando’s economy and 16.3% of Las Vegas’s economy. In comparison, Paris’s Travel & Tourism sector represents just 3.5% of the capital’s economy in 2022.
Here are the lists (based on Direct Travel & Tourism GDP in real terms, all figures in billions):
Top 10 Cities 2022
1. Paris – $35.65BN
2. Beijing -$32.62
3. Orlando – $31.1
4. Shanghai – $29.69
5. Las Vegas – $22.99
6. New York – $21.09
7. Tokyo – $17.97
8. Mexico City – $16.76
9. London – $14.92
10. Guangzhou – $13.15
Predicted Top 10 Cities 2032
1. Beijing – $77.28BN (+1 place from 2022)
2. Shanghai – $70.88 (+2)
3. Paris – $49.15 (-2)
4. Orlando – $45 (-1)
5. Las Vegas – $36.55 (no change)
6. Guangzhou – $34.94 (+4)
7. New York – $34.28 (-1)
8. Macau – $33.33 (+4)
9. Bangkok – $31.52 (+8)
10. Tokyo – $29.94 (-3)