Many destinations and enterprises, particularly SMEs, often lack the frameworks for rapid response or the financial reserves and access to capital for post-disruption recovery, potentially leading to permanent closures that damage ecosystems. The fragmentation and deeply embedded nature of the sector (that is, many other sectors such as financial services and retail rely on and benefit from T&T) complicate coordinated responses, creating inefficiencies and increasing recovery timelines when swiftly aligned action is essential. For instance, during the early stages of the COVID-19 pandemic (June 2020), more than 60% of travel restrictions were ineffective because they were uncoordinated, were not introduced in the global public interest or were not conducted in a timely manner.48 Organizations and destinations that systematically prepare for disruption by building adaptive capacity, developing rapid response capabilities and recovery mechanisms will not only weather crises more effectively but may gain competitive advantages.Increased friction between visitors and residents As travel and tourism expands, tensions between visitors and residents are becoming more pronounced in popular destinations such as Amsterdam, Athens and Bali. Across these locations, an imbalance between visitor numbers and the capacity of local populations can erode community well-being and diminish the quality of visitor experiences. This phenomenon is often described as “overtourism”, but the term risks framing tourism growth itself as inherently problematic. In reality, the issue is not the overall scale of global tourism – especially in a world marked by a growing population, an expanding middle class and increased access to mobility – but rather the disproportionate concentration of visitors in a limited number of destinations.5 Projected increase in ratio of visitors to residents in most-visited cities FIGURE 5 Note: 1. Number of international arrivals per city – arrivals refer to visitors staying at least 24 hours. Source: Euromonitor International52 and World Population Review532. London (18.8 million) 5. Paris (15.5 million)1. Istanbul (20.2 million) 10. Mecca (10.8 million) 3. Dubai (16.8 million)6. Hong Kong SAR, China (14.7 million) 7. Bangkok (12.2 million)4. Antalya (16.5 million)8. New Y ork (11.7 million) 9. Cancun (10.8 million) 1.9x2.6x 2023 2034F+0.7x 2. London1.3x1.6x 2023 2034F+0.4x 1. Istanbul1.3x1.8x 2023 2034F+0.5x 5. Paris5.5x6.9x 2023 2034F+1.4x 3. Dubai Ratio inter national visitors to r esidents Rank, (of visitors)1# Travel and Tourism at a Turning Point: Principles for Transformative Growth 13

Travel and Tourism at a Turning Point 2025