Log in
Oops! Something went wrong while submitting the form.
Create an account
Oops! Something went wrong while submitting the form.
Global Summary
Tourism businesses and destinations are transforming and reinventing themselves to cater for a more discerning yet demanding customer. As we fully emerge from the disruption caused by the pandemic, consumer preferences have evolved. Travellers are now seeking more unique and richer experiences than ever before, sparking a new wave of tourism opportunities globally. The prize is impressive; growing to a level 24% above 2019 values, global leisure tourism expenditure in 2024 is now worth over $5.5 trillion.
International travel is expected to be a key growth driver in the coming years. In 2024, a significant milestone of 1.5 billion international tourism arrivals is expected, but by 2030 this figure should grow by over 30% to 2 billion. Advanced markets such as Western European countries and the United States will continue to represent the largest portion of outbound travellers. However, emerging markets are expected to post the fastest growth, with Chinese demand at the forefront.
Short-haul travel will continue to dominate, especially in the short-term, with many households facing increased financial pressures from persistent inflation in recent years. The challenging economic backdrop is shaping an increasingly cost-conscious consumer. Over 80% of tourism experts in a recent survey conducted by Tourism Economics think that price sensitivity will increasingly influence travel retail in 2025.
Consumers continue to prioritise travel despite the rise in value-hunting. Tourism Economics Travel Trends Survey (TTS) showed that three-quarters of all respondents are still prioritising travel but are looking for more cost-effective options. Travellers are also continuing to seek new destinations and experiences. Average length of stay on international travel remains elevated as some shorter trips are being sacrificed in place of longer visits. This is to explore destinations more fully as part of the slow travel trend. The overwhelming majority of TTS respondents said that they are now more interested in meeting locals or learning about local culture.
Regional Trends
In Europe, the largest markets— notably Germany, France, and the UK—will continue to drive leisure spend in 2025. These markets also benefit from significant domestic tourism activity, which in the case of Germany accounts for around 95% of all leisure tourism spend. Meanwhile, profiting from profiting from travellers increasingly hunting for newer and more affordable experiences, the strongest growth will come from smaller markets. This includes emerging or developing markets such as Slovak Republic and Azerbaijan, while Albania and Armenia have experienced the fastest growth to date.
Domestic tourism will continue to be the mainstay of demand in North America, influenced by the United States, accounting for circa 90% of travel spending. However, international leisure spend is expected to grow by 9% per year until 2030, providing the greatest opportunities.
Central American and Caribbean countries have performed the strongest in Latin America, benefitting from strong demand by U.S. travellers. This looks set to continue next year with destinations such as Dominica, U.S. Virgin Islands and Barbados expected to achieve double digit spend growth. South American countries face a generally more subdued outlook, but with growth in a range of markets including the large Brazilian domestic market. Travel spend across Africa surpassed the pre-pandemic level in 2023, and is set to grow again in 2024 and looking forward to 2030, albeit, more modestly compared with some other regions. Geopolitical tensions are constraining the outlook while connectivity is also a challenge with limited route development across the region. However, with niche activities on the rise, including adventure travel, there are upsides for some countries, especially those less reliant on domestic tourism. This includes the big three—South Africa, Egypt, and Morocco—and other smaller destinations such as Mozambique and Ghana.
The slower travel recovery of China is weighing on the regional outlook in Asia. This is having a disproportionate impact on its near neighbours with Thailand and Vietnam particularly reliant on Chinese travellers. Recovery to 2019 levels is lagging, but overall tourism spend growth is expected in each of the 20+ territories in 2025 compared with 2024. The steepest growth is expected in Sri Lanka with spend set to increase by 40%.
Increased appeal to visit Gulf Cooperation Council (GCC) countries has played a major role in propelling tourism across the Middle East in recent years. In 2024, the region should attract roughly double the volume of inbound visitors compared with 2019. Global mega events, such as Dubai Expo and Qatar World Cup, and more relaxed border controls and visa policies are key features of this success. Improved connectivity and destination development will continue to drive growth in coming years. However, the travel outlook across the region is subject to a high degree of uncertainty due to the direct and indirect consequences of ongoing conflicts and instability.
Trendspotting
The rise of the global middle class is driving increased demand for newer and distinctive tourism experiences. This is leading to shifts in traditional norms in travel. The rise of alternative accommodations such as short-term rentals, which now represent 20% of tourism nights in Europe, illustrates how the industry has undergone significant change in recent decades.
The prospect of further change and disruption lurks in many corners as technology is set to play an increasingly significant role in influencing behaviour. This is not only as a source of information but also as part of a new toolkit used by travel businesses to improve efficiencies and offer more immersive experiences. Growing adoption of new technologies could significantly grow profitability for tourism firms. Adoption of new technology is higher among younger demographics, with Gen Z respondents much more reliant on technology including AI for trip planning according to TTS. This is becoming more widespread among the wider travel population and, consequently, a large majority of tourism experts agree that these tools will boost productivity and experiences across the industry.
Sustainable travel choices will also continue to rise in prominence and influence activity. Elevated recognition of the potential negative aspects of travel on social, cultural, and natural environments, combined with climate change impacts, will shift behaviour. This may further fuel the trend of slow travel as consumers prioritise travel experiences by undertaking longer and more meaningful trips. Climate and environmental challenges may lead to the demise of some traditional tourism products for some countries as conditions or natural environments deteriorate. The number of days when typical tourism activities are possible is projected to fall in some important destinations.
As some demand is displaced, there are sizeable opportunities for the industry to capitalise on growing demand for more sustainable offerings. This also coincides with a trend of increased interest in the outdoors, either through passive or more active activities, with adventure tourism expected to grow by over 15% per year in the next decade.
There is a trend of democratisation in travel with consumers drawn to and presented with a broadening range of offerings. Many of today’s travellers are more interested in sustainability and authenticity, so local cultures and the natural environment are increasingly powerful magnets. There is potential for travel businesses large and small to tap into this increased curiosity which will propel the industry forward in this exciting new chapter.
Global Summary
Tourism businesses and destinations are transforming and reinventing themselves to cater for a more discerning yet demanding customer. As we fully emerge from the disruption caused by the pandemic, consumer preferences have evolved. Travellers are now seeking more unique and richer experiences than ever before, sparking a new wave of tourism opportunities globally. The prize is impressive; growing to a level 24% above 2019 values, global leisure tourism expenditure in 2024 is now worth over $5.5 trillion.
International travel is expected to be a key growth driver in the coming years. In 2024, a significant milestone of 1.5 billion international tourism arrivals is expected, but by 2030 this figure should grow by over 30% to 2 billion. Advanced markets such as Western European countries and the United States will continue to represent the largest portion of outbound travellers. However, emerging markets are expected to post the fastest growth, with Chinese demand at the forefront.
Short-haul travel will continue to dominate, especially in the short-term, with many households facing increased financial pressures from persistent inflation in recent years. The challenging economic backdrop is shaping an increasingly cost-conscious consumer. Over 80% of tourism experts in a recent survey conducted by Tourism Economics think that price sensitivity will increasingly influence travel retail in 2025.
Consumers continue to prioritise travel despite the rise in value-hunting. Tourism Economics Travel Trends Survey (TTS) showed that three-quarters of all respondents are still prioritising travel but are looking for more cost-effective options. Travellers are also continuing to seek new destinations and experiences. Average length of stay on international travel remains elevated as some shorter trips are being sacrificed in place of longer visits. This is to explore destinations more fully as part of the slow travel trend. The overwhelming majority of TTS respondents said that they are now more interested in meeting locals or learning about local culture.
Regional Trends
In Europe, the largest markets— notably Germany, France, and the UK—will continue to drive leisure spend in 2025. These markets also benefit from significant domestic tourism activity, which in the case of Germany accounts for around 95% of all leisure tourism spend. Meanwhile, profiting from profiting from travellers increasingly hunting for newer and more affordable experiences, the strongest growth will come from smaller markets. This includes emerging or developing markets such as Slovak Republic and Azerbaijan, while Albania and Armenia have experienced the fastest growth to date.
Domestic tourism will continue to be the mainstay of demand in North America, influenced by the United States, accounting for circa 90% of travel spending. However, international leisure spend is expected to grow by 9% per year until 2030, providing the greatest opportunities.
Central American and Caribbean countries have performed the strongest in Latin America, benefitting from strong demand by U.S. travellers. This looks set to continue next year with destinations such as Dominica, U.S. Virgin Islands and Barbados expected to achieve double digit spend growth. South American countries face a generally more subdued outlook, but with growth in a range of markets including the large Brazilian domestic market. Travel spend across Africa surpassed the pre-pandemic level in 2023, and is set to grow again in 2024 and looking forward to 2030, albeit, more modestly compared with some other regions. Geopolitical tensions are constraining the outlook while connectivity is also a challenge with limited route development across the region. However, with niche activities on the rise, including adventure travel, there are upsides for some countries, especially those less reliant on domestic tourism. This includes the big three—South Africa, Egypt, and Morocco—and other smaller destinations such as Mozambique and Ghana.
The slower travel recovery of China is weighing on the regional outlook in Asia. This is having a disproportionate impact on its near neighbours with Thailand and Vietnam particularly reliant on Chinese travellers. Recovery to 2019 levels is lagging, but overall tourism spend growth is expected in each of the 20+ territories in 2025 compared with 2024. The steepest growth is expected in Sri Lanka with spend set to increase by 40%.
Increased appeal to visit Gulf Cooperation Council (GCC) countries has played a major role in propelling tourism across the Middle East in recent years. In 2024, the region should attract roughly double the volume of inbound visitors compared with 2019. Global mega events, such as Dubai Expo and Qatar World Cup, and more relaxed border controls and visa policies are key features of this success. Improved connectivity and destination development will continue to drive growth in coming years. However, the travel outlook across the region is subject to a high degree of uncertainty due to the direct and indirect consequences of ongoing conflicts and instability.
Trendspotting
The rise of the global middle class is driving increased demand for newer and distinctive tourism experiences. This is leading to shifts in traditional norms in travel. The rise of alternative accommodations such as short-term rentals, which now represent 20% of tourism nights in Europe, illustrates how the industry has undergone significant change in recent decades.
The prospect of further change and disruption lurks in many corners as technology is set to play an increasingly significant role in influencing behaviour. This is not only as a source of information but also as part of a new toolkit used by travel businesses to improve efficiencies and offer more immersive experiences. Growing adoption of new technologies could significantly grow profitability for tourism firms. Adoption of new technology is higher among younger demographics, with Gen Z respondents much more reliant on technology including AI for trip planning according to TTS. This is becoming more widespread among the wider travel population and, consequently, a large majority of tourism experts agree that these tools will boost productivity and experiences across the industry.
Sustainable travel choices will also continue to rise in prominence and influence activity. Elevated recognition of the potential negative aspects of travel on social, cultural, and natural environments, combined with climate change impacts, will shift behaviour. This may further fuel the trend of slow travel as consumers prioritise travel experiences by undertaking longer and more meaningful trips. Climate and environmental challenges may lead to the demise of some traditional tourism products for some countries as conditions or natural environments deteriorate. The number of days when typical tourism activities are possible is projected to fall in some important destinations.
As some demand is displaced, there are sizeable opportunities for the industry to capitalise on growing demand for more sustainable offerings. This also coincides with a trend of increased interest in the outdoors, either through passive or more active activities, with adventure tourism expected to grow by over 15% per year in the next decade.
There is a trend of democratisation in travel with consumers drawn to and presented with a broadening range of offerings. Many of today’s travellers are more interested in sustainability and authenticity, so local cultures and the natural environment are increasingly powerful magnets. There is potential for travel businesses large and small to tap into this increased curiosity which will propel the industry forward in this exciting new chapter.
.webp)
