The global travel and tourism industry is on track to outpace worldwide economic growth over the next ten years, according to the World Travel Market (WTM) Global Travel Report, released today at WTM London 2025.

The report forecasts that the travel industry will grow 3.5% annually, compared to 2.5% growth for the global economy. By 2035, the sector is expected to generate over US$16 trillion, representing nearly 12% of global GDP, based on new research from the World Travel & Tourism Council (WTTC) in partnership with Oxford Economics.

Record Tourism Levels and New Travel Trends

The findings come as the global travel sector reaches record levels in 2025, with international arrivals exceeding 1.5 billion, surpassing pre-pandemic figures from 2019. The Asia-Pacific region continues to drive much of this expansion, supported by rising middle-class incomes and stronger outbound travel demand.

The report highlights a shift toward longer and more immersive trips, as well as a growing preference for experiential travel. Major live events—such as Taylor Swift’s “Eras Tour”, which drew over 10 million attendees, and Oasis’ “Live ’25 Tour”, expected to attract nearly two million fans—are boosting tourism flows across multiple destinations.

Meanwhile, off-season travel and the rising trend of “coolcations”—with more travelers heading to cooler northern destinations like Sweden, Norway, and Finland—are reshaping global travel patterns. These countries are expected to see a 9% increase in arrivals in 2025, outpacing traditional sun destinations.

Digital Transformation and AI Integration

Digital platforms and artificial intelligence continue to revolutionize the travel landscape. The report notes that online travel agencies, social media, and AI-driven tools are driving engagement and sales, with three times as many travel professionals saying AI will increase travel spending rather than reduce it.

More than 15,000 new aircraft are on order from Boeing and Airbus, cruise capacity is set to grow nearly 6% in 2025, and over half a million new hotel rooms will open this year, with another one million in development.

Challenges Ahead

Despite the optimistic outlook, the report warns of economic and geopolitical headwinds, including rising trade tariffs from the Trump administration and an ongoing labor shortage. North America remains the only major region facing a downturn, with U.S. inbound tourism projected to fall by 6% in 2025, delaying recovery to pre-pandemic levels until 2029.

WTM London: Reimagining Travel in a Changing World

“With travel at record levels and set to outpace the global economy over the next decade, WTM London is the place to connect, innovate and plan for the industry’s future,” said Chris Carter-Chapman, WTM London Event Director.

Dave Goodger, Managing Director EMEA at Tourism Economics, added: “This report serves as a vital guide for industry leaders to understand and capitalize on global travel trends in an ever-changing environment.”

Held under the theme “Reimagining Travel in a Changing World,” WTM London 2025 brings together global tourism leaders, destinations, and investors to explore the industry’s next chapter.