The United States is consolidating its position as the most important Travel and Tourism market in the world

The World Travel & Tourism Council (WTTC) released its Economic Impact Trends Report 2024, with the United States standing out as the world’s largest travel and tourism market, contributing a record $2.36 trillion to its economy over the past year. Despite the
slow return of spending by international travelers, the United States maintains the top position, with nearly twice the economic contribution of second-place China on the list.

Following a record year for travel and tourism, the sector remains the backbone of many countries’ economies, while supporting millions of jobs around the world.

According to the same report, China's travel and tourism sector contributed $1.3 trillion to national GDP in 2023, underscoring its impressive rebound despite the late reopening of its borders.

Germany ranked third with an economic contribution of $487.6 billion, while Japan, which ranked 5th in 2022, jumped to 4th position, contributing $297 billion.

The United Kingdom rounds out the top five, contributing $295.2 billion.

France, the world's most popular destination, maintained its sixth position with a contribution of $264.7 billion, closely followed by Mexico with $261.6 billion.

India ranked eighth, up from tenth, with $231.6 billion, a notable improvement that underscores its growing influence in the sector. Italy and Spain round out the top 10, contributing $231.3 billion and $227.9 billion respectively.

However, over the next decade, the WTTC predicts that China will become the largest travel and tourism market, with India rising to fourth position.

These changes illustrate the dynamic nature of the global travel and tourism sector, with emerging markets gaining ground and traditional powerhouses maintaining their strongholds.

The report also highlights countries experiencing the highest annual growth rates in their travel and tourism contributions to GDP.

In 2023, China's sector boomed, with a year-on-year growth of 135.8%, while other Asian countries, such as Hong Kong SAR, Malaysia and the Philippines, recovered soon after travel restrictions were lifted.

Julia Simpson, WTTC President and CEO, said: “As we look forward to a record-breaking 2024, it is clear that Travel and Tourism is not only back on track, but is also set to achieve unprecedented growth.

"We will continue to prioritise sustainability and inclusion, ensuring this growth benefits everyone and protects our planet for future generations. The sector's resilience and innovation potential continue to propel us forward."

According to the report, many key destinations are set to benefit from increased international spending this year compared to pre-pandemic levels, with Saudi Arabia, up 91.3% compared to 2019, Turkey (+38.2%), Kenya (+33.3%), Colombia (+29.1%) and Egypt (+22.9%) leading the way.

Globally, international visitor spending is projected to grow by almost 16% to $1.9 trillion, while domestic tourists are expected to spend more than ever, reaching $5.4 trillion, an increase of 10.3% from 2019 levels.

Travel and tourism investment grew by 13% in 2023 to reach more than $1 trillion, with a return to pre-pandemic levels expected by 2025.

However, high interest rates around the world could create challenges for future investment. It is therefore crucial that the public and private sectors work together to innovate and ensure the continued strengthening of this sector.

The report also highlights the sector's commitment to sustainability, showing the decoupling of its growth from greenhouse gas emissions, as well as the role it plays in increasing opportunities for women, youth and marginalized communities.

Technological advancements, particularly in Artificial Intelligence, are expected to further enhance the travel experience and drive growth in travel and tourism.

Source: WTTC