Monday, July 7, 2025

The Travel & Tourism industry in the globe is recording unprecedented expansion in 2025, with spending and employment creation potential at all-time highs. The sector will contribute a record $11.7 trillion towards the global economy as per the World Travel & Tourism Council’s (WTTC) Economic Impact Research (EIR) projection, and it will contribute 10.3% towards the global GDP. It has been a brilliant feat for an industry which had come through pandemic destruction and unpredictable economy. Despite traveling with patchy recovery and critical staffing deficiencies, the Travel & Tourism industry has remained steady as it continues driving global economic growth and employment creation.

As one of the cornerstones of the global economy, the Travel & Tourism sector’s performance in 2025 is set to outpace previous records. According to the WTTC’s report, international visitor spending is forecasted to reach an all-time high of $2.1 trillion in 2025, surpassing the previous high of $1.9 trillion in 2019. This growth signifies a significant recovery and highlights the sector’s ongoing importance as a key economic driver. Countries and destinations that rely on international tourism will see direct economic benefits from this surge in spending, and travelers are expected to explore new destinations, fueling the demand for diverse cultural experiences worldwide.

A particularly noteworthy aspect of the WTTC’s findings is the expected job growth in the sector. Globally, Travel & Tourism jobs are projected to increase by 14 million in 2025, bringing the total number of people employed by the sector to an estimated 371 million. This growth means that one in eight jobs worldwide will be tied to Travel & Tourism, contributing to a steady recovery in employment and offering new opportunities across multiple regions. Countries like Saudi Arabia, with an ambitious goal of injecting $800 billion into the sector by 2030, are already setting new benchmarks for growth and development within the industry.

While the global picture looks promising, the recovery is far from uniform across all regions. As outlined by the WTTC, countries like the United States, China, and Germany are experiencing slower growth compared to other markets. The U.S., for instance, remains the largest Travel & Tourism market globally, but international visitor spending remains below pre-pandemic levels. Despite a strong start, the country is expected to see only a modest recovery in 2025.

Similarly, while China’s international spending surpassed pre-pandemic levels in 2024, growth in the sector is expected to slow in 2025. The country’s recovery from the pandemic has been uneven, with some regions and travel hubs thriving while others lag behind. This contrast in recovery rates is particularly noticeable when compared to emerging markets like Saudi Arabia, where sustained investment and strategic planning have bolstered the country’s tourism industry, positioning it ahead of the curve.

European nations like France and Spain continue to lead the region’s resurgence in Travel & Tourism. These countries have benefitted from strategic investments and their continued appeal as major global destinations. Both nations have recorded strong visitor numbers and increased international spending, bolstered by their rich cultural heritage, diverse landscapes, and world-renowned attractions.

Meanwhile, in the Middle East, Saudi Arabia is rapidly establishing itself as a key player in the global Travel & Tourism market. The country’s ambitious Vision 2030 project aims to inject $800 billion into the sector by 2030, contributing to the expansion of tourism infrastructure and services. With initiatives focused on both luxury tourism and cultural heritage, Saudi Arabia’s tourism sector is poised for long-term growth, offering a range of opportunities for travelers seeking unique experiences in the region.

One of the most prominent trends emerging from this recovery is the growing popularity of Slow Travel. This movement encourages travelers to spend more time immersing themselves in a destination and its local culture, instead of rushing through a list of attractions. Slow Travel is gaining traction as tourists increasingly prioritize meaningful experiences over traditional, fast-paced tourism. This cultural shift is reflected in the growing demand for longer stays and deeper connections with the places visited.

The Slow Travel movement is being driven by travelers who are looking to escape the pressure of modern life and reconnect with nature and local communities. Many are seeking to avoid the environmental and social impacts of mass tourism and are opting for destinations that offer sustainable travel experiences. A survey found that 62% of travelers consider sustainability programming when choosing a hotel, while 73% express a desire to minimize their environmental impact while traveling.

This shift toward Slow Travel is likely to have lasting effects on how tourism is structured in the coming years, with an increasing focus on sustainable and responsible travel. In response, many destinations are enhancing their sustainability efforts, incorporating eco-friendly practices, and providing travelers with immersive experiences that support local communities.

Despite the promising outlook for Travel & Tourism in 2025, one of the sector’s biggest challenges remains a critical shortage of workers. Many countries and regions are struggling to find qualified staff to meet the surge in demand, resulting in service disruptions and slower recovery in certain areas. The labor shortage is particularly acute in hospitality, transport, and entertainment sectors, which rely heavily on seasonal and part-time workers.

The shortage of workers has been exacerbated by the pandemic, which led to widespread layoffs and disrupted workforce training programs. While many businesses are beginning to recover, they face significant hurdles in attracting and retaining talent, as labor markets around the world remain competitive.

Looking ahead to the next decade, the WTTC forecasts that Travel & Tourism will continue to be a major economic driver, contributing $16.5 trillion to the global economy by 2035. This represents a long-term growth rate of 3.5% annually, outpacing the wider global economy, which is expected to grow at 2.5%. Jobs within the sector will continue to rise, with more than 460 million people employed globally, and international spending is expected to reach $2.9 trillion, further solidifying Travel & Tourism’s role in global economic growth.

As consumers increasingly demand sustainable and enriching travel experiences, the Travel & Tourism sector will continue to evolve to meet these needs. While challenges remain, particularly regarding staffing and regional disparities in recovery, the overall trajectory for the sector is one of strong growth and resilience.

2025 recovery in the Travel & Tourism sector indicates the sector’s resilience and flexibility in the face of changes in consumer demand and economy. Record levels of international spending, jobs gains across the sector, and the rise of Slow Travel all look extremely positively for the sector’s long-term prospects. There will, though, need to be ongoing caution in responding to challenges such as worker shortages and spotty recovery in the sector in order for the sector to keep its momentum.

With the economy increasingly recovering all over the world, Travel & Tourism will remain one of the cornerstones of the global economy, offering countless opportunities for travelers and economies alike. For the future, governments, businesses, and travelers themselves will need to work together in creating a sustainable and prosperous future for the industry.

World Travel & Tourism Council (WTTC), United Nations World Tourism Organization (UNWTO), Saudi Arabian Ministry of Tourism, Spanish Ministry of Industry, Trade, and Tourism, French Ministry of Foreign Affairs.