Global Tourism Projected to Reach $15.5 Trillion in 10 Years

Global Tourism Projected to Reach $15.5 Trillion in 10 Years  TravelPulse

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Aug 21, 2023 - 23:00
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Global Tourism Projected to Reach $15.5 Trillion in 10 Years

Increase in Economic Activity in the Travel and Tourism Industry

In 34 countries around the world, the travel and tourism industry has recovered so dramatically that economic activity now exceeds pre-pandemic levels of business.

That’s just one of the highlights from the World Travel & Tourism Council’s (WTTC) 2023 Economic Impact Research (EIR) report.

Globally, the travel and tourism industry is closing in on 2019 levels of economic activity, recovering by more than 95 percent, according to the just-released report.

In 2023 alone, travel and tourism industry is expected to reach $9.5 trillion, which is merely 5 percent below 2019 pre-pandemic levels when travel was at its highest.

Perhaps the most notable takeaway, the global tourism body is forecasting that the travel and tourism industry will grow its GDP contribution worldwide to reach a staggering $15.5 trillion by 2033.

Should that occur, the industry would represent 11.6 percent of the global economy. Additionally, it’s expected that travel and tourism will employ some 430 million people around the world by 2033, which would amount to about 12 percent of the planet’s working population.

Female traveler with a suitcase at the airport

Female traveler with a suitcase at the airport (photo courtesy FTiare/iStock / Getty Images Plus)

A Year of Substantial Recovery

Despite the economic and geopolitical difficulties that dominated 2022, travel and tourism experienced significant post-pandemic recovery last year. Specifically, the industry grew 2 percent year-on-year to reach $7.7 trillion.

That figure represents 7.6 percent of the global economy in 2022, the highest sector contribution since 2019. With that said, the global GDP for the industry is still 22.9 percent behind its 2019 peak. In 2021, the travel and tourism industry grew 24.7 percent year-on-year.

Various global challenges and issues continue to impact the travel industry including the conflict in Ukraine and prolonged travel restrictions imposed by a number of countries, including China. The recent decision by the Chinese government to reopen its borders from January is expected to propel the sector and allow it to recover to pre-pandemic levels next year, said the report.

Additional report highlights include:

  • From a pre-pandemic high of more than 334 million, the COVID-19 pandemic ravaged the employment in the sector, which saw losses of more than 70 million to bring the total number employed in 2020 to just 264 million.
  • Following the recovery of 11 million jobs in 2021, the sector created 21.6 million new jobs in 2022 to reach more than 295 million globally or one in 11 jobs worldwide.
  • Spending from overseas visitors grew by a record 82 percent to reach $1.1 trillion in 2022, showing that international travel is firmly back on track.

“The Travel & Tourism sector continues to recover at pace, demonstrating the resilience of the sector and the enduring desire to travel,” Julia Simpson, WTTC president and CEO, said in a statement. “By the end of the year, the sector’s contribution will be within touching distance of the 2019 peak. We expect 2024 to exceed 2019.”

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SDGs, Targets, and Indicators

  1. SDG 8: Decent Work and Economic Growth

    • Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
    • Indicator 8.9.1: Tourism direct GDP as a proportion of total GDP and in growth rate.
    • Indicator 8.9.2: Proportion of jobs in tourism industries out of total jobs.

  2. SDG 12: Responsible Consumption and Production

    • Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.
    • Indicator 12.8.1: Extent to which (i) global citizenship education and (ii) education for sustainable development (including climate change education) are mainstreamed in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment.

  3. SDG 17: Partnerships for the Goals

    • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
    • Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals.

Analysis

The article highlights the recovery of the travel and tourism industry, which is connected to several Sustainable Development Goals (SDGs) and their targets.

1. SDG 8: Decent Work and Economic Growth

The recovery of the travel and tourism industry contributes to SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

2. Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.

The article mentions that the travel and tourism industry is expected to employ 430 million people worldwide by 2033, which aligns with Target 8.9.

3. Indicator 8.9.1: Tourism direct GDP as a proportion of total GDP and in growth rate.

The article states that the travel and tourism industry is closing in on 2019 levels of economic activity, recovering by more than 95 percent. This information can be used to measure progress towards Indicator 8.9.1.

4. Indicator 8.9.2: Proportion of jobs in tourism industries out of total jobs.

The article mentions that the travel and tourism industry is expected to employ about 12 percent of the planet’s working population by 2033. This data can be used to measure progress towards Indicator 8.9.2.

5. SDG 12: Responsible Consumption and Production

The recovery of the travel and tourism industry also relates to SDG 12, which aims to ensure sustainable consumption and production patterns.

6. Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.

The article does not directly mention this target, but the recovery of the travel and tourism industry can contribute to raising awareness about sustainable development and lifestyles in harmony with nature.

7. Indicator 12.8.1: Extent to which (i) global citizenship education and (ii) education for sustainable development (including climate change education) are mainstreamed in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment.

The article does not provide specific information related to this indicator.

8. SDG 17: Partnerships for the Goals

The recovery of the travel and tourism industry also aligns with SDG 17, which emphasizes the importance of partnerships for achieving the sustainable development goals.

9. Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.

The article does not directly mention this target, but the World Travel & Tourism Council’s report represents a partnership that shares knowledge and expertise to support the growth of the travel and tourism industry.

10. Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals.

The article does not provide specific information related to this indicator.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: travelpulse.com

 

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SDGs Targets Indicators
SDG 8: Decent Work and Economic Growth Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. Indicator 8.9.1: Tourism direct GDP as a proportion of total GDP and in growth rate.
Indicator 8.9.2: Proportion of jobs in tourism industries out of total jobs.
SDG 12: Responsible Consumption and Production Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature. Indicator 12.8.1: Extent to which (i) global citizenship education and (ii) education for sustainable development (including climate change education) are mainstreamed in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment.
SDG 17: Partnerships for the Goals Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.