The World Travel & Tourism Council’s (WTTC) Economic Trends Report that is now out puts the U.S. on top as the world’s biggest and most powerful travel and tourism market by GDP numbers. However, those rankings may be true but slightly illusionary as the U.S., as with other top economies, boosted its metrics through domestic travel as international visitor numbers plummeted.
While its number one position was retain with feverish travel report by Americans to U.S. destinations, the U.S. Travel & Tourism sector’s contribution to the nation’s economy fell by $700 billion in 2019, to just under $1.3 trillion last year.
Behind the U.S., research by Oxford Economics for WTTC saw China second and Germany third for sector GDP contributions, representing no change in ranking since 2019. However, total sector economic contribution in both countries decline versus 2019 surveys.
China contributed more than $814 billion last year to the Chinese GDP (vs. $1.857 billion in 2019), while Germany’s contributions to its economy were $251 billion compare with over $391 billion in 2019.
Meanwhile, the UK slip dramatically from fifth place in 2019 to ninth in 2021, with a contribution of just over $157 billion, the biggest fall among the top 10 countries in the study.
But the rankings are illusionary as the top economies bolster their numbers through domestic travel, while international visitor numbers plummet.
“Our report shows the resilience of the Travel & Tourism sector, even in the face of travel restrictions around the world,” Julia Simpson, WTTC President & CEO, said. “Despite a challenging macro environment, Travel & Tourism has bounced back. The world, with some exceptions, is traveling again. And we are seeing a resurgence in business travel. Over the next 10 years, Travel & Tourism growth will outstrip the overall growth rate of the global economy.”
International Visitor Spending: The Skinny
In terms of the international traveler spend, France, which was rank fourth before the pandemic, overtook Spain, China, and the U.S. to grab first place.
China, which remains closed to much of the rest of the world, was in second place for international visitor spending before the pandemic but fell dramatically to 11th position in 2021.
Across Asia-Pacific, major tourism markets saw huge losses in international spending. China was in second place for international visitor spending before the pandemic but fell dramatically to 11th position in 2021.
Countries like Thailand and Japan, which ranked fifth and eighth in international visitor spending before the pandemic, fell out of the top 20 altogether in 2021. (Thailand has received about two million foreign visitors in the first six months of this year, a steady revival after its tourism industry almost collapsed due to the pandemic and more than 18 months of complex and costly entry requirements. As of 6th August 2022 international flight and hotel searches are up 164% and 111% respectively compared to the start of the year.)
Business Travel Report Poised for Drastic Growth
Moving forward, the WTTC predicts worldwide business travel will grow more than 41% this year. For the next 10 years, it predicts business travel could grow an average of 5.5% annually and may return faster in the Asia-Pacific region.
WTTC predicts by 2032, China will overtake the U.S. to become the world’s biggest Travel & Tourism market.
The research shows China’s Travel & Tourism sector’s contribution to GDP could reach $3.9 trillion by 2032, making it the world’s most powerful Travel & Tourism market, and India could leapfrog Germany to reach third place with a projected value of $457 billion.
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