THE U.S. REMAINS the world’s top travel and tourism market, contributing a record $2.36 trillion to the economy last year, according to the World Travel & Tourism Council. Despite a slow recovery in international spending, the U.S. holds nearly double the economic contribution of its closest competitor.
The council’s 2024 Economic Impact Trends Report found that travel and tourism remain vital to many economies, supporting millions of jobs worldwide.
“As we look forward to a record-breaking 2024, it’s clear that travel and tourism are not only back on track but also set to achieve unprecedented growth,” said Julia Simpson, WTTC’s president and CEO. “We will continue to prioritize sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations. The sector’s resilience and potential for innovation continue to drive us forward.”
The report identified China as the world’s second-largest tourism market, contributing $1.3 trillion to GDP in 2023, showcasing its strong rebound despite a delayed border reopening. Germany ranked third with a $487.6 billion economic contribution, while Japan moved up from fifth to fourth place with $297 billion.
The U.K. rounds out the top five with a $295.2 billion contribution, WTTC said.
France, the world’s most popular destination, held its sixth position with a $264.7 billion contribution, followed closely by Mexico at $261.6 billion, highlighting its strong tourist appeal.
India rose to eighth place from tenth, contributing $231.6 billion, reflecting significant improvement and growing influence. Italy and Spain completed the top 10 with contributions of $231.3 billion and $227.9 billion, respectively.
China to lead in travel market
WTTC forecasts that within the next decade, China will become the largest travel and tourism market, surpassing all others, while India will rise to fourth place. These shifts highlight the dynamic nature of the global travel and tourism sector, with emerging markets gaining ground and traditional powerhouses maintaining their positions.
The report also noted countries with the highest annual growth rates in Travel & Tourism GDP contributions. In 2023, China’s sector saw a remarkable year-on-year growth of 135.8 percent, while other Asian countries, including Hong Kong SAR, Malaysia and the Philippines, rebounded quickly after travel restrictions were lifted.
Globally, international visitor spending is expected to grow nearly 16 percent to $1.9 trillion, the report said. Meanwhile, domestic tourism spending is projected to reach $5.4 trillion, marking a 10.3 percent increase over 2019 levels.
Travel and tourism investment grew 13 percent in 2023 to exceed $1 trillion, with a return to pre-pandemic levels expected by 2025. However, high global interest rates may pose challenges for future investment. The WTTC emphasized the need for collaboration and innovation between the public and private sectors to continue strengthening this vital sector.
The report also highlighted the sector’s commitment to sustainability, demonstrating the decoupling of growth from greenhouse gas emissions and expanding opportunities for women, young people and marginalized communities. Technological advancements, especially in artificial intelligence, are expected to further enhance the travel experience and drive future growth.
In April, the WTTC projected that the travel and tourism sector will contribute over $2.5 trillion to the U.S. economy in 2024, accounting for nearly 9 percent of the total, and employ approximately 18.8 million people nationwide, or one in nine American workers.
