Travel and Tourism at a Turning Point 2025

T&T growth areas and tension points FIGURE 3 Note: MICE = meetings, incentives, conferences and exhibitions. Source: World Economic Forum02 Growing segments as drivers New segments will emerge and become growth drivers – e.g. live events tourism (16% CAGR), ecotourism (14% CAGR), MICE (9% CAGR) and wellness (8% CAGR).03 Technology development as an enabler Travel tech (market ~$10 billion in 2024) is expected to double, serving as an enabler for new visitors with continuous focus on flexibility and transparency – but also carrying inherent risks. 05 Increased friction between visitors and residents Visitor-to-resident ratios could rise by at least 50%, intensifying challenges and highlighting the need to promote harmonious coexistence and spaces that benefit both.06 Growing pressure on nature The sector could strain natural systems and account for 15% of total GHG emissions, 10% of global energy consumption and 7% of solid waste production.01 Evolving traveller profiles Fast-growing middle classes, e.g. in India and China, are creating new traveller patterns and are set to reach more than 25% share of total international trips by 2030. 04 Risk of global disruptions Increased sensitivity to global disruptors such as geopolitical tensions, climate change and demographic shifts could reach $6 trillion losses by 2030, showing need to increase resilience. 09 Infrastructure and investment requirements Serving ~30 billion tourists in the future will require infrastructure and asset investments (e.g. ~25 million hotel rooms by 2034), as well as regulatory and other changes to expedite development. 10 Cultural and heritage dynamicsCultural homogenization and heritage degradation pose critical risks, with 97% of respondents in a survey agreeing locals are adopting tourist culture over traditions and 70% of heritage sites are being threatened by inadequate management plans.07 Labour and skills crisis By 2034, 100 million+ more jobs will have to be filled; some places currently face quantitative and qualitative labour gaps (e.g. in the UK, the sector turnover is > 50%, far exceeding other sectors).08 Local capacity-building SMEs represent 80% of the sector; to properly serve expected demand they will require support as travellers seek local experiences.Growth areas Tension points Travel and Tourism at a Turning Point: Principles for Transformative Growth 9