Travel, tourism investment may hit $955bn year end – Report

Bisola David
Bisola David
Travel, tourism investment may hit $955bn year end - Report

The World Travel & Tourism Council’s research indicates that investments in travel and tourism are on the mend, with a forecasted value of $955 billion by the end of 2023.

By 2025, investments are expected to increase by 11.5%, reaching their pre-pandemic levels.

According to the WTTC report, the travel and tourism industry would experience annualized growth of 6.1% on a global scale by 2033, with the Asia-Pacific region and the Caribbean leading the way.

Pent-up demand led to an increase of 11.1% in travel and tourist investment over the previous year, which totaled $856 billion.

Despite being 53% greater than in 2000, this number is still 22.5% below than 2019 levels.

Regionally, the Asia-Pacific region and Africa have experienced significant growth, with investments 161% higher in 2022 than they were in 2000. Europe and the Middle East, in contrast, have had slower growth, with the pandemic wiping out some prior advances.

In terms of total investments in travel and tourism in 2022, the United States came out on top with $213 billion, followed by China with $146 billion and Saudi Arabia with $42 billion.

Investment in the industry increased consistently from 2010 to 2019 at a Compound Annual Growth Rate of 4.3%, reaching $1.1 trillion in 2019.

The COVID-19 pandemic resulted in a 24% reduction in 2020, a further 8% decline in 2021, and a reversal in 2022.

A major portion of the economies of some island destinations, like the US Virgin Islands, were invested in travel and tourism, with a concentration on hotels, airplanes, and vehicle fleets.

Rising international interest rates, however, could make future investments more difficult. Borrowing costs may rise as interest rates rise.

To preserve the sector’s expansion, cooperation between the public and private sectors is considered crucial.

Public and private investments in infrastructure and capacity expansion are considered as essential for fostering economic growth and job opportunities.

The relevance of travel and tourism investment for global connection and economic restoration was emphasized by the president & CEO of WTTC,  Julia Simpson, who also emphasized its role in promoting economic recovery and growth.

“Travel and tourism investment is essential to the global recovery and growth and we are confident but also vigilant in our quest for a brighter future, she said.”

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