A record $1 out of every $10 spent globally in 2024 is projected to be dedicated to travel, as consumers eagerly book hotels, cruises, and flights. This forecast comes from the World Travel and Tourism Council (WTTC), a non-profit membership organization, which released its annual report highlighting the robust growth in the travel and tourism sector.
Impact on Global GDP
The travel and tourism industry’s contribution to global gross domestic product (GDP) is set to achieve unprecedented levels. The WTTC estimates that this contribution will rise by 12.1% year-over-year to $11.1 trillion, representing 10% of global GDP. This marks a 7.5% increase from the previous record set in 2019.
Economic Outlook Despite Challenges
Julia Simpson, CEO of the WTTC, commented on the sector’s resilience: “Despite some concerns last year about us going into a global recession and high inflation, this year we are looking at travel and tourism being a real economic powerhouse globally.”
Major Contributors to Global Travel Spending
The United States, China, and Germany are expected to make the most significant contributions to global GDP through travel spending. These economies are driving substantial growth in the sector.
Job Growth and Industry Expansion
The travel and tourism sector is anticipated to support nearly 348 million jobs in 2024, which is 13.6 million more than the number of jobs recorded in 2019, the previous pre-pandemic peak. The industry continues to expand rapidly, with ongoing hiring efforts to meet the growing demand.
Employment Trends in the U.S.
In the United States, there are currently 1 million job openings within the leisure and hospitality sector, according to the U.S. Travel Association. The WTTC reported that total employment supported by the travel and tourism industry in the U.S. was approximately 27 million jobs in 2023.
Conclusion
The projected surge in global travel spending and its substantial impact on GDP underscores the travel and tourism industry’s vital role in the global economy. As the sector rebounds and expands, it continues to be a significant driver of job creation and economic growth worldwide.
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