The global travel industry is projected to grow faster than the world economy over the next decade, according to the newly released World Travel Market (WTM) Global Travel Report. The report, unveiled on the opening day of WTM London, forecasts an average annual growth rate of 3.5% for travel through 2035, compared to 2.5% for the broader global economy.
By 2035, the sector is expected to generate more than $16 trillion worldwide, representing nearly 12% of global GDP, according to economic data from the World Travel & Tourism Council (WTTC) and Oxford Economics. The report attributes the strong outlook to increased international arrivals, growing consumer demand for experiences, and expanding travel infrastructure across multiple regions.
Travel demand reaches new highs in 2025
The WTM report highlights that global travel reached record levels in 2025, with international arrivals expected to exceed 1.5 billion, surpassing the pre-pandemic peak of 2019. Travellers are also booking longer trips and visiting destinations further afield, reflecting shifting priorities toward experiences rather than material purchases.
Emerging economies, particularly in Asia Pacific, are driving much of the growth as rising incomes boost outbound travel. Despite higher living costs in many markets, travel remains a priority for consumers, maintaining a high share of discretionary spending. The report notes that live events, such as concerts and cultural festivals, have become major travel motivators, contributing to destination economies.
“Destinations are actively encouraging major touring artists to host events in their cities following the successes of a series of high-profile concerts, including Taylor Swift’s Eras Tour – attended by more than 10 million people – and Oasis’ Live ’25 Tour, which is set to attract nearly two million fans across 13 countries in 2025,” the report says.
New patterns and emerging destinations
Travel patterns continue to evolve, with more tourists avoiding traditional high-season destinations and seeking alternative experiences. The report identifies a surge in “shoulder season” bookings and a preference for less crowded, cooler destinations — a trend dubbed “coolcations.” Arrivals to northern European countries such as Sweden, Norway and Finland are projected to grow by 9% in 2025, outpacing southern summer destinations.
Bucket list destinations remain resilient, driven by the influence of social media exposure. Meanwhile, the travel industry’s environmental footprint is drawing increased scrutiny, though the report cautions that consumers remain resistant to higher prices for sustainability initiatives. The challenge, it says, lies in funding the upgrades needed for greener operations without deterring demand.
Expansion is also forecast across aviation, cruise, and accommodation sectors. More than 15,000 new aircraft are currently on order from Boeing and Airbus, global cruise deployment is set to rise nearly 6% in 2025, and over 500,000 new hotel rooms will open this year, with an additional one million in development.
Digital platforms are another key growth driver, with social media, online travel agencies, and review sites influencing booking behavior. Artificial intelligence is emerging as a major force, with three times as many travel professionals saying AI tools will increase, rather than reduce, overall travel spending.
However, the report also warns of short-term economic and geopolitical risks. Trade tariffs announced by the Trump administration are raising business costs, and workforce shortages continue to challenge the sector. While growth prospects are strong in most regions, the near-term outlook in North America is “less optimistic,” with inbound arrivals to the United States forecast to decline by 6% in 2025 — delaying a full recovery to pre-pandemic levels until 2029.
Chris Carter-Chapman, Event Director at WTM London, said the report and the wider event theme, “Reimagining Travel in a Changing World,” aim to help industry professionals navigate both opportunities and headwinds. “With travel at record levels and set to outpace the wider economy over the next 10 years, WTM London is the place to be in order to network, plan and make business deals,” said Carter-Chapman.
Dave Goodger, Managing Director EMEA at Tourism Economics, added: “Our latest global travel trends report, produced in partnership with World Travel Market, provides an important manual for the industry to understand and capitalise on the ever-changing dynamics of global travel.”
The WTM Global Travel Report underscores the resilience of the travel sector and its expanding economic influence, positioning tourism as one of the world’s most dynamic industries heading into the next decade.
