- Region:
- World
- Category:
- Tourism
The growth of the travel and tourism industry will be crucial for the global economy in the next decade
The global tourism industry is positioned for substantial growth in the next decade, with the World Travel and Tourism Council (WTTC) forecasting an increase in the sector's contribution to the GDP to $15.5 trillion by 2033. This projection represents 11.6% of the global economy and is expected to provide employment to approximately 430 million people worldwide, constituting nearly 12% of the global workforce.
According to the latest Economic Impact Report (EIR), 34 out of 185 analyzed countries have successfully returned to pre-pandemic levels in terms of GDP contribution. During the 2023 review in an interview with ABC MUNDIAL, Julia Simpson, CEO of the World Travel and Tourism Council (WTTC), shared that the tourism recovery is complete. She emphasized that, in some cases, tourism not only fully recovered but also surpassed pre-pandemic levels. Simpson underscored the importance of this achievement and pointed out that the next decade will be crucial for the tourism industry. In her perspective, the revival of tourism is directly related to people's growing desire to travel. According to her words, "when people travel, they significantly contribute to improving economies and fostering understanding between people and cultures, which is of paramount importance."
The United Nations World Tourism Organization identifies India, Indonesia, and Vietnam as some of the fastest-growing outbound tourism markets. These nations are expected to attract the attention of tourist destinations looking to diversify and enter new markets, especially if traditional markets remain stagnant.
One key driver behind the growing trend of outbound tourism in emerging markets is the growth of the middle class. Research from the Brookings Institution shows that the middle class is currently the largest spending group globally and is expected to reach 3.8 billion people, nearly half of the projected global population of 8.4 billion by 2030. This demographic is expected to contribute around $35 trillion annually.
In India, the middle class is projected to almost double, reaching 61% of the total population by 2047, up from 31% in 2020-21. Growth is being encouraged through political stability and economic reforms in the country. Similarly, Indonesia has 52 million individuals classified as middle class, while Vietnam has the fastest-growing middle class among ASEAN nations, reaching 36 million by 2030.
Strong economies play a crucial role in driving tourism. India's strong economic performance in the last two decades, with a per capita GDP increasing from $755.5 in 2000 to $2,085.1 in 2022, has led to significant growth in outbound tourism.
Millennials and Generation Z are contributing to this growth, and destinations worldwide are competing for their attention. Visa openness is identified as a crucial factor in attracting this new generation of travelers.
Vision 2030 Plan, Saudi Arabia
Gloria Guevara Manzo, Chief Advisor to the Minister of Tourism of Saudi Arabia, highlights the implementation of the ambitious Vision 2030 Plan, aiming to transform the country's tourism sector. With goals such as raising the tourism contribution to GDP to 10%, generating 1 million jobs, and attracting 100 million tourists (55 million international) by 2030, Saudi Arabia aspires to become a prominent player in the global tourism scene. Guevara Manzo emphasizes the determination of leadership and available resources, highlighting the lack of excuses for not achieving these objectives.
Saudi Arabia's management under the Vision 2030 Plan is characterized by a rigorous business approach, with regular reviews of indicators and performance providing certainty to the private sector. This disciplined and disruptive approach has been praised as an interesting project that instills confidence in the country's tourism development.
The World Expo 2030 presents a key opportunity for the promotion of travel and tourism, with a focus on sustainability. Guevara Manzo emphasizes the event's importance as a window to showcase Saudi Arabia's achievements in the global tourism context, reflecting the country's commitment to sustainable development. With results exceeding expectations, the review of the goal for 2030, with the aspiration to receive 150 million visitors, highlights the extraordinary growth that Saudi Arabia seeks to achieve in the next decade."