Executive summary The travel and tourism sector stands at a crossroads. After recovering from the unprecedented shock of the COVID-19 pandemic, the sector now faces new and exacerbated challenges. By 2034, travel and tourism is projected to contribute $16 trillion to global GDP (more than 11% globally), supporting businesses, destinations and local communities while facilitating approximately 30 billion tourist visits worldwide (domestic and international). This growth will be shaped by interconnected drivers and tension points: Growth drivers and opportunities Evolving traveller profiles Principle: Adapt, upgrade and personalize offerings Growing segments as drivers Principle: Embrace growth segments strategically Technology developments as an enabler Principle: Foster responsible technology and innovation Tension points and challenges Risk of global disruptions Principle: Develop crisis-resilient strategies Increased friction between visitors and residents Principle: Encourage mutual benefit and understanding between residents and visitorsGrowing pressure on nature Principle: Commit to regenerative practices Labour and skills crisis Principle: Bridge workforce gaps Local capacity-building Principle: Support small and medium-sized enterprises (SMEs) and local communities Infrastructure and investment requirements Principle: Invest in and develop sustainable infrastructure Cultural and heritage dynamics Principle: Revitalize unique heritage Implementation requires an overarching principle of holistic collaboration to align the public and private sector and all stakeholder efforts to drive transformative change. Governments must establish enabling frameworks through strategic policies and investments. Industry leaders should transform operating models while other stakeholders (e.g. civil society, academia) should make distinct contributions aligned with their capabilities. This insight report provides the foundational analysis for a new vision in which travel and tourism evolves beyond being a force of economic prosperity to become established as a catalyst of global resilience, cultural understanding, environmental regeneration and inclusive prosperity.Travel and tourism’s future transformation requires collaborative action to make the most of growth drivers while addressing tension points. 1 2 3 4 56 7 8 9 10$16 trillion T&T’s projected contribution to global GDP by 2034. Travel and Tourism at a Turning Point: Principles for Transformative Growth 4

Travel and Tourism at a Turning Point 2025