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New 2024 Travel and Tourism Report Issued by World Economic Forum
The latest World Economic Forum report on travel and tourism, unveiled yesterday, predicts that international tourist arrivals and the sector’s contribution to global GDP will rebound to pre-COVID levels this year. This resurgence is fueled by the removal of pandemic-related travel bans and a robust backlog of travel demand.
Leading the 2024 recovery are the United States, Spain, Japan, France, and Australia. The Middle East stands out with a 20% increase in tourist arrivals compared to 2019, the highest globally. Conversely, Europe, Africa, and the Americas are experiencing a solid recovery, with tourist numbers nearing 90% of their pre-pandemic figures in 2023.
The findings are part of the Travel & Tourism Development Index 2024 (TTDI), a biennial analysis produced in partnership with the University of Surrey. The report evaluates the travel and tourism environments of 119 nations across various indicators and policies.
Francisco Betti, Head of the Global Industries team at the World Economic Forum, remarked, “This year signifies a pivotal moment for the travel and tourism industry, which is poised to drive significant economic and social benefits.” He emphasized that the TTDI provides insights that will help leaders understand and navigate the complexities of the sector and harness its potential sustainably.
Following the pandemic, the global tourism industry is on track to not only recover but exceed pre-crisis levels. This is mainly due to a marked rise in global demand, coinciding with an increase in flight availability, improved international openness, and heightened interest and investment in natural and cultural attractions.
Nevertheless, the recovery has been uneven. Although 71 of the 119 ranked economies improved their scores since 2019, the average index score only slightly surpassed pre-pandemic levels by 0.7%.
Despite moving beyond the initial shock of the global health crisis, the sector faces ongoing challenges including macroeconomic uncertainties, geopolitical tensions, environmental concerns, scrutiny over sustainability practices, and the impact of new technologies like big data and AI. Furthermore, issues such as labor shortages, insufficient air route capacity, capital investment, productivity, and other supply factors have not kept pace with the rising demand. This mismatch has led to increased prices and service issues.
In the 2024 TTDI, 26 of the top 30 index scorers are high-income economies, with 19 from Europe, seven from Asia-Pacific, three from the Americas, and one from the Middle East and North Africa region (the United Arab Emirates). High-income countries continue to provide more favorable conditions for travel and tourism due to their robust business environments, dynamic labor markets, liberal travel policies, strong transportation and tourism infrastructures, and well-developed attractions.
On the other hand, developing countries have made significant advancements. Notably, China maintains its position in the top 10, while Indonesia, Brazil, and Türkiye have risen to join the top quarter of the rankings. Over 70% of nations that have improved their scores since 2019 are low- to upper-middle-income countries, with the MENA and sub-Saharan Africa regions showing substantial progress.
Despite these gains, the TTDI highlights the need for considerable investments to bridge the developmental and market share gaps between developing and high-income nations. A viable strategy could involve leveraging natural and cultural resources, which are less dependent on national income levels and could provide a pathway for tourism-driven economic growth in developing countries.
Addressing Global Challenges in Travel and Tourism
The 2024 Global Risks Report by the World Economic Forum highlights several complex challenges facing the travel and tourism industry, including geopolitical instability, economic volatility, inflation, and extreme climate events. Another pressing issue is balancing expansion with environmental sustainability, particularly with concerns such as seasonal peaks, over-tourism, and the potential resurgence of pre-pandemic emission levels. Additionally, the report sheds light on ongoing issues of equity and inclusion, noting that while the sector is a significant provider of relatively high-wage jobs in developing regions, disparities in gender equity persist, especially in areas like the MENA region and South Asia.
Despite these obstacles, the travel and tourism industry holds significant promise for addressing these challenges. To capitalize on this potential, leaders in the sector are encouraged to adopt strategic measures. These include utilizing tourism to support conservation efforts, investing in diverse and resilient workforces, managing visitor numbers and infrastructure more effectively, fostering cultural exchanges between tourists and local populations, and using the industry as a means to reduce the digital divide, among other initiatives.
With thoughtful management, the travel and tourism sector, which has traditionally accounted for 10% of global GDP and employment, can play a crucial role in enhancing the prosperity and quality of life for communities across the globe.
Leading the 2024 recovery are the United States, Spain, Japan, France, and Australia. The Middle East stands out with a 20% increase in tourist arrivals compared to 2019, the highest globally. Conversely, Europe, Africa, and the Americas are experiencing a solid recovery, with tourist numbers nearing 90% of their pre-pandemic figures in 2023.
The findings are part of the Travel & Tourism Development Index 2024 (TTDI), a biennial analysis produced in partnership with the University of Surrey. The report evaluates the travel and tourism environments of 119 nations across various indicators and policies.
Francisco Betti, Head of the Global Industries team at the World Economic Forum, remarked, “This year signifies a pivotal moment for the travel and tourism industry, which is poised to drive significant economic and social benefits.” He emphasized that the TTDI provides insights that will help leaders understand and navigate the complexities of the sector and harness its potential sustainably.
Following the pandemic, the global tourism industry is on track to not only recover but exceed pre-crisis levels. This is mainly due to a marked rise in global demand, coinciding with an increase in flight availability, improved international openness, and heightened interest and investment in natural and cultural attractions.
Nevertheless, the recovery has been uneven. Although 71 of the 119 ranked economies improved their scores since 2019, the average index score only slightly surpassed pre-pandemic levels by 0.7%.
Despite moving beyond the initial shock of the global health crisis, the sector faces ongoing challenges including macroeconomic uncertainties, geopolitical tensions, environmental concerns, scrutiny over sustainability practices, and the impact of new technologies like big data and AI. Furthermore, issues such as labor shortages, insufficient air route capacity, capital investment, productivity, and other supply factors have not kept pace with the rising demand. This mismatch has led to increased prices and service issues.
In the 2024 TTDI, 26 of the top 30 index scorers are high-income economies, with 19 from Europe, seven from Asia-Pacific, three from the Americas, and one from the Middle East and North Africa region (the United Arab Emirates). High-income countries continue to provide more favorable conditions for travel and tourism due to their robust business environments, dynamic labor markets, liberal travel policies, strong transportation and tourism infrastructures, and well-developed attractions.
On the other hand, developing countries have made significant advancements. Notably, China maintains its position in the top 10, while Indonesia, Brazil, and Türkiye have risen to join the top quarter of the rankings. Over 70% of nations that have improved their scores since 2019 are low- to upper-middle-income countries, with the MENA and sub-Saharan Africa regions showing substantial progress.
Despite these gains, the TTDI highlights the need for considerable investments to bridge the developmental and market share gaps between developing and high-income nations. A viable strategy could involve leveraging natural and cultural resources, which are less dependent on national income levels and could provide a pathway for tourism-driven economic growth in developing countries.
Addressing Global Challenges in Travel and Tourism
The 2024 Global Risks Report by the World Economic Forum highlights several complex challenges facing the travel and tourism industry, including geopolitical instability, economic volatility, inflation, and extreme climate events. Another pressing issue is balancing expansion with environmental sustainability, particularly with concerns such as seasonal peaks, over-tourism, and the potential resurgence of pre-pandemic emission levels. Additionally, the report sheds light on ongoing issues of equity and inclusion, noting that while the sector is a significant provider of relatively high-wage jobs in developing regions, disparities in gender equity persist, especially in areas like the MENA region and South Asia.
Despite these obstacles, the travel and tourism industry holds significant promise for addressing these challenges. To capitalize on this potential, leaders in the sector are encouraged to adopt strategic measures. These include utilizing tourism to support conservation efforts, investing in diverse and resilient workforces, managing visitor numbers and infrastructure more effectively, fostering cultural exchanges between tourists and local populations, and using the industry as a means to reduce the digital divide, among other initiatives.
With thoughtful management, the travel and tourism sector, which has traditionally accounted for 10% of global GDP and employment, can play a crucial role in enhancing the prosperity and quality of life for communities across the globe.
Source: Travel And Tour World
