Tourism back to pre-pandemic levels, but challenges remain
Developing economies are making strides but significant investment is needed to bridge gaps and increase market share.
The global tourism industry is poised to rebound to pre-pandemic levels in 2024, driven by lifted travel restrictions and pent-up demand, as per the World Economic Forum's Travel & Tourism Development Index 2024 (TTDI).The United States, Spain, Japan, France and Australia led the recovery, with the Middle East showing the highest growth in international arrivals.
Despite this progress, challenges persist. While 71 of 119 economies have improved since 2019, the average index score remains marginally above pre-pandemic levels. External challenges include geopolitical and environmental risks, sustainability concerns, and technological impacts like big data and AI.
Labour shortages, insufficient infrastructure, and supply constraints exacerbate these issues.
High-income economies dominate the top ranks, benefiting from favourable business environments, robust infrastructure, and diverse attractions. However, developing countries, notably China, Indonesia, Brazil and Türkiye, have made significant strides, with over 70% of countries improving since 2019.
The TTDI underscores the need for substantial investment to bridge the gap between developing and high-income countries, suggesting leveraging natural and cultural assets for sustainable development.
The sector faces complex global risks, including geopolitical uncertainties, economic fluctuations, and climate change. Balancing growth with sustainability remains a challenge, alongside concerns about equity and inclusion, particularly regarding gender parity.
To address these challenges, decision-makers should prioritise actions such as nature conservation, investing in skilled workforces, managing visitor behaviour, fostering cultural exchange, and bridging the digital divide. With strategic management, the tourism sector, historically contributing 10% of global GDP and employment, can emerge as a key driver of community well-being and prosperity.