Direct and induced GDP in USD generated per $1 of direct T&T GDP $3.50 $0.50Economic multiplier of the travel and tourism sector FIGURE 4 Note: The map shows the ratio of indirect and induced to direct GDP generated by T&T in USD (an average of figures from 2017, 2018 and 2019), per WTTC definitions. Direct GDP refers to internal tourism spending and government services for visitors; indirect GDP covers supply-chain and investment effects; induced reflects employee spending within the wider economy. Country coverage based on the Travel & Tourism Development Index 2024. Source: World Economic Forum and World Travel and Tourism Council Local officials, business leaders and community representatives emphasized how deeply tourism’s impacts are felt, even in places without formal tourism institutions. –Retail is another sector deeply intertwined with tourism demand. The duty-free and travel retail market is expanding alongside the recovery in international travel, with independent analyses estimating it at around $66–70 billion in 2024 and projecting a near-doubling by the early 2030s.17 Other forecasts put the market above $110 billion in 2024 as pent-up demand and airport expansions lift spend.18 International visitors are pivotal for premium retail: Chinese consumers account for roughly one-third of global luxury purchases, and the return of outbound Chinese travel materially affects sales in key shopping hubs.19 The dependence of flagship districts on tourist spend is visible in London’s West End, where business groups attribute hundreds of millions of pounds in lost sales to changes in tax-free shopping rules, even as visitor numbers recover.20 This ecosystem structure means tourism’s performance cannot be judged solely by direct visitor spending or hotel occupancy rates. While these have long served as indicators of sector health, they offer only a narrow view. They fail to capture the broader economic, social and environmental interdependencies that define tourism’s true impact. A single decision in one part of the system can generate ripple effects across multiple layers. The launch of a new air route alters the viability of regional accommodation providers, creates demand for ground transport services, stimulates local retail and increases tax revenues. Conversely, disruption in one area cascades quickly throughout the system, as power outages at airports strand travellers, reduce hospitality demand, disrupt retail sales and damage destination reputations. These interconnections are not abstract. They were reinforced repeatedly during Forum consultations with stakeholders across destinations, industries and communities. Local officials, business leaders and community representatives emphasized how deeply tourism’s impacts are felt, even in places without formal tourism institutions. As one local official noted, “Our town may not have a tourism office, but we feel the impact of every tour bus.” Such sentiments, echoed in multiple consultations, highlight how tourism’s footprint extends far beyond its formal boundaries. 1.2 Economic multiplication and the positive impact of interconnection Beyond Tourism: Coordinated Pathways to Inclusive Prosperity 10

Beyond Tourism Coordinated Pathways to Inclusive Prosperity 2025