The global travel industry is expected to grow faster than the world economy over the next decade, according to the World Travel Market (WTM) Global Travel Report released today at WTM London.
The report forecasts annual growth of 3.5% for the travel sector over the next 10 years, outpacing projected global economic growth of 2.5%. By 2035, the industry is expected to generate more than $16tn (£13tn) worldwide, representing nearly 12% of global GDP, based on research by the World Travel and Tourism Council (WTTC) and Oxford Economics.
International travel reached record levels in 2025, with arrivals set to exceed 1.5 billion, surpassing the previous high recorded in 2019.
The report attributes the continued expansion to several factors, including longer and more distant trips, rising demand from emerging markets – particularly across Asia Pacific – and consumers’ growing preference for experiences over material goods. Live events and major tours are also cited as key growth drivers, with destinations seeking to attract global artists following the success of events such as Taylor Swift’s Eras Tour and Oasis’s Live ’25 Tour.
The report notes that more travellers are visiting lesser-known destinations or travelling in shoulder seasons to avoid extreme summer temperatures. Northern European countries are expected to benefit from the “coolcation” trend, with arrivals to Sweden, Norway and Finland forecast to rise by 9% in 2025.
Environmental concerns are expected to intensify, but the report warns that modernising the industry to improve sustainability may be hampered by consumer resistance to higher costs.
Growth is also predicted across aviation, cruise and accommodation. Boeing and Airbus have more than 15,000 aircraft on order, global cruise deployment is expected to rise by almost 6% in 2025, and over 500,000 new hotel rooms are due to open this year, with a further one million in development.
Digital platforms continue to drive travel demand, with social media, online travel agents and review sites becoming increasingly influential. Artificial intelligence has also become a major factor, with three times as many travel professionals saying AI tools will help boost, rather than reduce, overall spending.
However, the report cautions that geopolitical and economic challenges remain. It highlights higher business costs linked to new trade tariffs introduced by the Trump administration and ongoing skills shortages in the sector.
While most regions are set for growth, the short-term outlook in North America is described as “less optimistic”, with inbound travel to the United States expected to fall 6% in 2025 and not return to 2019 levels until 2029.
Chris Carter-Chapman, event director at WTM London, said: “With the accelerating rate of change in travel, our event and content such as this report will support industry professionals as they navigate the opportunities and challenges ahead.
“The WTM Global Travel Report reflects this year’s theme of ‘Reimagining Travel in a Changing World’ and explores the topics that will be examined in more detail across our conference tracks, ranging from diversity and inclusion to geo-economics, sustainability, technology and trends. With travel at record levels and set to outpace the wider economy over the next 10 years, WTM London is the place to be in order to network, plan and make business deals.”
Dave Goodger, managing director for EMEA at Tourism Economics, added: “Our latest global travel trends report, produced in partnership with World Travel Market, provides an important manual for the industry to understand and capitalise on the ever-changing dynamics of global travel.”
