US$12,5 trillion in Travel & Tourism investment expected to shape G20 competitiveness through 2035

International

WTTC report highlights strong growth outlook and rising infrastructure investment

Global investment in the Travel & Tourism sector across the world’s major economies is projected to reach approximately US$12.5 trillion by 2035, according to new analysis released by the World Travel & Tourism Council (WTTC). The findings were presented at ITB Berlin and form part of the report Bridging the Gap: Travel & Tourism Capital Investment and Demand Growth Across the G20, developed in partnership with Oxford Economics.

The report forecasts steady expansion in travel demand across the G20 and Spain over the coming decade, with annual growth expected to average around 3.3%. Investment in tourism-related infrastructure and assets is projected to increase even faster, at roughly 4.6% per year.

Investment and demand moving at different speeds

While long-term investment growth is set to exceed demand, the report notes that the timing of these developments is uneven. In the near term, demand is recovering more quickly than investment, creating a temporary gap that could put pressure on tourism capacity and infrastructure in certain destinations.

This mismatch may result in congestion and strain on existing facilities until new projects come online. According to the analysis, the trend is expected to shift in the early 2030s, when investment growth begins to outpace demand and capacity expands.

Overall, tourism investment is projected to grow at an annual compound rate of about 4.6% between 2025 and 2035, compared with 3.3% for demand.

Germany and Spain among the leading investors

The report highlights significant differences between countries in how they approach tourism investment. Some economies are pursuing forward-looking strategies aimed at strengthening long-term competitiveness by expanding infrastructure ahead of demand.

Germany is expected to invest approximately US$543 billion in Travel & Tourism by 2035. This level of investment represents a growth rate significantly higher than projected demand, reinforcing the country’s focus on maintaining a high-quality and resilient tourism offering.

Spain is also taking a proactive approach, with planned investment of about US$349 billion over the same period. According to the report, the country’s investment pace is forecast to grow around 1.46 times faster than tourism demand, strengthening its competitive position in global tourism markets.

Investment key to long-term competitiveness

Gloria Guevara, President and CEO of WTTC, said the coming decade will be crucial for strengthening the sector’s infrastructure and competitiveness.

“Travel & Tourism is entering a decisive decade for investment in infrastructure and connectivity,” Guevara said. “Countries that successfully align investment with future demand will strengthen their economic resilience and secure long-term growth. Germany and Spain demonstrate how strategic planning can enhance connectivity, support employment and maintain competitiveness in global tourism.”

The WTTC emphasises that continued investment in transport infrastructure, connectivity and sustainability will be essential for unlocking the full economic potential of the sector.

The organisation also calls for close cooperation between governments and private-sector stakeholders to ensure that investment strategies remain aligned with long-term demand trends and contribute to sustainable economic growth across the G20.