Global Travel Industry Set to Outpace World Economy, Says WTM Report

International

Travel spending, emerging markets and experiential tourism drive growth beyond 2035

The global travel industry is expected to grow faster than the world economy over the next decade, according to the World Travel Market Global Travel Report, unveiled today at WTM London.

The report forecasts annual growth of 3.5% for travel, surpassing the projected 2.5% growth of the global economy. By 2035, travel and tourism are set to generate more than $16 trillion, accounting for nearly 12% of global GDP, according to WTTC and Oxford Economics.

Demand for Experiences and Longer Journeys

International arrivals in 2025 are on track to exceed 1.5 billion, breaking pre-pandemic records. Travellers are venturing farther, staying longer and spending more on experiences over possessions. Live events are a major draw – with megatours like Taylor Swift’s Eras Tour and Oasis’ Live ’25 Tour drawing tens of millions of fans and boosting destination economies.

Emerging markets, particularly in Asia-Pacific, continue to fuel global growth, while consumers maintain strong spending on travel despite higher costs.

Shifting Destinations and Climate Trends

The report notes a rising demand for off-season and off-the-beaten-path travel, as tourists seek to avoid summer heat and overcrowding. The “coolcation” trend is boosting northern destinations such as Sweden, Norway and Finland, where arrivals are expected to increase by 9% in 2025.

At the same time, iconic “bucket list” destinations remain strong, fuelled by social media exposure and ongoing global fascination with must-see landmarks.

Sustainability and Technological Acceleration

While environmental scrutiny of travel is intensifying, consumer resistance to higher costs may slow progress toward sustainability goals. Nonetheless, major expansion is under way: 15,000 new aircraft are on order, global cruise capacity is rising nearly 6%, and more than 500,000 hotel rooms are opening worldwide this year.

AI, social media and digital platforms are reshaping demand and decision-making, with three times as many industry professionals expecting AI to increase overall travel spending rather than reduce it.

Opportunities and Headwinds

Despite a strong long-term outlook, the report warns of short-term challenges, including trade tariffs, labour shortages and geopolitical uncertainty. Inbound travel to the United States is projected to decline 6% in 2025, with 2019 levels not expected to return before 2029.

Chris Carter-Chapman, WTM London’s Event Director, said: “With travel at record levels and growth outpacing the global economy, WTM London is where the industry comes together to plan, collaborate and shape the future.”