Leading providers such as Trip.com use AI to generate customized itineraries that combine traveller preferences with real-time conditions and historical data. Similarly, South Korea’s Yanolja connects data, improves data quality and provides AI services that aim to increase efficiency and level the playing field for companies worldwide. Internet of things (IoT) technologies create environments that enhance guest experiences while optimizing efficiency. Hospitality properties implement these solutions for energy management, predictive maintenance, contactless options and personalization, while airports deploy connected systems for baggage tracking and optimizing crowd flow. Beyond operational applications, emerging technologies such as augmented reality, virtual reality and gamification also offer innovative opportunities to engage younger generations with cultural heritage destinations or attractions by creating immersive experiences that preserve authenticity while making traditions accessible and meaningful to digital-native travellers. These technologies are increasingly supported by advanced connectivity solutions, which are significantly faster than previous networks, thus enabling more responsive and data-rich travel applications. Biometric identification continues to revolutionize traveller processing, with facial recognition, fingerprint scanning and other technologies streamlining processes. Hong Kong International Airport exemplifies these trends. It introduced Flight Token, a biometric system enabling seamless face-based navigation, in 2021–2022, and nearly 90% of surveyed people provided an excellent ranking to Airport Service Quality.39 It also features the SKYTOPIA initiative, which aspires to transform the traditional airport into an airport city that combines aviation services with retail, cultural and entertainment facilities to enhance passenger experiences. While technology offers tremendous potential to enhance experiences, reduce frictions and increase sustainability practices, implementation challenges remain. The digital divide between regions – TTDI 202440 scores for ICT (information and communication technology readiness) range from almost 5 in Asia Pacific to less than 3 in Africa – limits equitable competition. Data privacy and security concerns require careful navigation of regulatory environments while maintaining the expected personalization, especially as the sector ranks third for cyberattacks and 70% of companies have experienced data breaches.41 Workforce implications include potential jobs displacement and the creation of new roles requiring digital skills. Risk of global disruptions Travel and tourism historically faces sensitivity to disruptive forces that can rapidly change market dynamics, consumer behaviour and operational realities. Building resilience against these disruptions becomes critical for stability and long-term viability. While exact figures remain speculative, cumulative revenue losses for global tourism by 2030 due to disruptions such as pandemics, geopolitical events, climate change and regulatory shifts could range from $3 trillion (moderate mitigation) to $6 trillion (worst-case scenario).42 Proactive policy coordination and sustainable transitions are critical to minimizing these losses. The COVID-19 pandemic already demonstrated the sector’s vulnerability, causing losses of approximately $4.5 trillion in GDP contribution in 2020.43 Recent events also highlight this vulnerability. Geopolitical tensions are already having an impact on travel patterns. Diplomatic friction between the United States and Canada led to a substantial travel boycott, with Canadian car travel to the US declining by 32% in March 2025 and dropping by over 30% in April and May 2025, compared to the previous year.44 This decline is projected to potentially cost the US economy $6 billion. Similar declines have been observed across other regions (e.g. travellers to the US from Western Europe, Mexico and the Caribbean).45 These shifts demonstrate how political tensions can disrupt established travel corridors and create cascading economic impacts. The global risks ranked highest by world leaders for the next two years include misinformation and disinformation, extreme weather events, state- based armed conflicts and societal polarization. In the long term, the most anticipated risks ranked by severity are mainly related to environmental issues, with extreme weather events, biodiversity loss and ecosystem collapse and critical changes to Earth systems ranked as the top three.46 Without enhanced resiliency measures, continued disruptions could result in sustained monetary losses and a drop-off in job creation, threatening livelihoods and the sector’s ability to meet demand. The increasing frequency and intensity of global disruptions (e.g. 50% increase in natural disaster events in the past 30 years)47 create critical challenges that traditional approaches might struggle to address. Conventional forecasting and planning methodologies become less effective in highly volatile environments, requiring new uncertainty management techniques that embrace scenario planning and adaptive strategies. 1.2 Tension points 4 Travel and Tourism at a Turning Point: Principles for Transformative Growth 12

Travel and Tourism at a Turning Point 2025