factors of international tourism

What is international tourism and why is it important?

The International tourism industry is stronger than ever before. Destinations around the world have developed their economies around international tourism and they are thriving (minus the ongoing Coronavirus pandemic, but I am confident that tourism will return so I am going to put that to one side for now). But what does it all mean?

In this article I am going to introduce you to the exciting world of international tourism- the industry that I have lived and breathed for so many years. The industry that I love. So here goes…

What is international tourism?

International tourism definitions, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, international tourism statistics, international tourism: conclusion, further reading.

Tourism is the generic term used to cover both demand and supply that has been adopted in a variety of forms and used throughout the world.

International tourism essentially refers to the activities undertaken by visitors, also known as the visitor economy. The tourism industry encompasses all activity that takes place within the visitor economy.

This includes activities that are directly related to the tourist, such as staying in a hotel, ordering a meal or visiting a tourist attraction. It also includes indirect activities, such as the transport company which delivers the food to the restaurant in which the tourist eats or the laundry company that has a contract with the hotel for cleaning bed sheets.

It is largely due to the indirect contributions to tourism, that defining and measuring the tourism industry is so difficult!

Tourism is a phenomenon with no universally accepted definition, owing to the complexity and individualism of the travellers themselves and the activities that they choose to undertake.

The most widely utilised definition of tourism, proposed by the World Trade Organisation (WTO) and United States (UN) Nations Statistics Division (1994), prescribes that in order to qualify as a tourist one must travel and remain in a place outside of their usual residential environment for not more than one consecutive year for leisure, business or other purposes.

Matheison and Wall (1982) on the other hand, do not impose a timeframe, simply stating that one must travel to a destination temporarily.

Leiper (1979) believed that defining tourism is more complex than this, proposing that there are three approaches that can be taken. The economic stance focuses on tourism as a business, the technical stance focusses on the tourist in order to provide a common basis by which to collect data and the holistic stance attempts to include the entire essence of the subject.

The Cambridge Dictionary define tourism quite simply as; ‘the business of providing services such as transport, places to stay or entertainment for people who are on holiday’.

As there is no universal definition for the term ‘international tourism’, for the purposes of this article I will define it as follows:

‘International tourism is the act of travelling to another country other than where you live for no more than one year for purposes of leisure or business’.

Why is international tourism important?

International tourism is hugely important. There are a number of key reasons for this that I will outline below.

Value to the economy

International tourism can help economies to bring in money in a number of different ways. Below I have provided some examples of the positive economic impacts of tourism .

The importance of international tourism is demonstrated through foreign exchange earnings. 

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy.

How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up!

Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro . 

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

The importance of international tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated. 

Direct contributions  are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes. 

According to the World Tourism Organisation, the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions  come from goods and services supplied to tourists which are not directly related to the tourism industry. 

There is also the income that is generated through  induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed. 

The importance of international tourism can be demonstrated through employment generation.

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers. 

There are two types of employment in the tourism industry: direct and indirect. 

Direct employment  includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.

It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

The importance of international tourism can be further seen through the contributions to local economies.

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy. 

If  sustainable tourism  is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or  volunteer tourism  projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect. 

International tourism boosts the economy exponentially.

This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place.

Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.

For some towns, cities and even whole countries, the importance of international tourism is greater than for others. In some cases, it is the main source of income.

For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.

Other posts that you might be interested in: – What is tourism? A definition of tourism – The history of tourism – The structure of the tourism industry – Stakeholders in tourism – Inbound tourism explained: What, why and where – What is ABTA and how does it work? – Outbound tourism | Understanding the basics

Value to society

The importance of international tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Below I will outline some of the social gains from tourism.

It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of international tourism.

Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…

Many destinations will make a conserved effort to preserve and protect the local culture. This often contributes to the conservation and  sustainable management  of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. 

The importance of international tourism can also be demonstrated through the strengthening of communities.

Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.

The jobs created by international tourism can also be a great boost for the local community. Aside from the  economic impacts  created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. 

Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.

The importance of international tourism is shown through the provision of social services in the host community.

The international tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also. 

Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. 

International tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result. 

These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.

Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. 

This may help promote traditions that may have become distant. 

Another reason for the importance of international tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage. 

This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful  tourism planning  and sustainable tourism management. 

International tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.

Small villages in far off lands are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population .

Value to the environment

Whilst most media coverage involving international tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.

Some people think that international tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers. 

As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!

Tourism brings with it huge economic potential for a destination that wishes to develop their tourism industry. Employment, currency exchange, imports and taxes are just a few of the ways that tourism can bring money into a destination.

In recent years, tourism numbers have increased globally at exponential rates, as shown in the World Tourism Organisation data below. There are a number of reasons for this growth including improvements in technology, increases in disposable income, the growth of budget airlines and consumer desires to travel further, to new destinations and more often.

Here are a few statistics providing by the UN and Statistica:

Here are a few facts about the economic importance of the tourism industry globally:

• The tourism economy represents 5 percent of world GDP
• Tourism contributes to 6-7 percent of total employment
• International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports
• The tourism industry is valued at US$1trillion a year
• Tourism accounts for 30 percent of the world’s exports of commercial services
• Tourism accounts for 6 percent of total exports
• 1.4billion international tourists were recorded in 2018 (UNWTO)
• In over 150 countries, tourism is one of five top export earners
• Tourism is the main source of foreign exchange for one-third of developing countries and one-half of less economically developed countries (LEDCs)

There is a wealth of data about the economic value of tourism worldwide, with lots of handy graphs and charts in the United Nations Economic Impact Report .

International tourism is arguably the largest industry in the world. There are many benefits of international tourism to local economies as well as society and the environment. The many components of tourism that make up the industry are integral to livelihoods the world over.

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

International Tourism

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The most widely used definition for “international tourism” defines it as comprising “inbound tourism and outbound tourism, that is, the activities of resident visitors outside the country of reference, either as part of domestic or outbound tourism trips and the activities of non-resident visitors within the country of reference on inbound tourism trip” (United Nations 2010 : 15). This definition refers specifically to travel among different countries.

In 2019, there were 1.46 billion international arrivals generating US$1.7 trillion in total tourism export earnings (UNWTO 2020 ). Yet, during the first eight months of 2020, because of the COVID-19 pandemic and travel restrictions introduced by destinations worldwide, international tourism declined by 70% (700 million fewer than in 2019). The unprecedented decline translated into a loss of $730 billion, more than eight times the loss felt in 2009 from the global economic crisis.

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AirportWatch. 2019. 4.4 billion air trips taken worldwide in 2018; number was 2.63 billion in 2010. https://www.airportwatch.org.uk/2019/08/4-4-billion-air-trips-taken-world-wide-in-2018-number-was-2-63-billion-in-2010/ Accessed 11 Dec 2020.

Leiper, M. 1979. The framework of tourism: Towards a definition of tourism, tourist and the tourist industry. Annual of Tourism Research 6: 390–407. https://doi.org/10.1016/0160-7383(79)90003-3 .

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———. 2020. International tourism highlights, 2020 Edition. Madrid. https://www.e-unwto.org/doi/epdf/10.18111/9789284422456 . Accessed 26 June 2023

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Robinson, P., Turner, J. (2023). International Tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_745-1

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What is travel and tourism’s role in future global prosperity?

The travel and tourism sector faces many challenges in a disrupted world, from geopolitical tensions to climate change. Image:  Unsplash.

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Stay up to date:, travel and tourism.

• The travel and tourism sector faces many challenges in a disrupted world, from geopolitical tensions to climate change.
• The sector can be a powerful driver of sustainable economic prosperity – supporting people and places.
• The latest Travel and Tourism Development Index benchmarks the factors and policies that enable resilient and sustainable development.

With 2023 at an end, the Travel and Tourism (T&T) sector is finally positioned to move past the impact of the pandemic, with international tourist arrivals anticipated to reach levels reminiscent of the pre-pandemic era . However T&T sector stakeholders and destinations are navigating a complex terrain marked by external challenges such as geopolitical and economic uncertainty, inflation and dangers from the proliferation of extreme weather events like wildfires.

Many of these issues represent broader ongoing and longer-term economic, environmental, societal, geopolitical and technological trends. Within this context, consumers, policy-makers and advocates have expressed growing apprehension about the sector’s record on sustainability and its role in issues such as climate change, overcrowding, and overall impact on local communities.

Against this dynamic backdrop, it becomes imperative for the leaders and visionaries of the T&T industry to not only comprehend the impending trends but also acknowledge the sector's potential to tackle global challenges. When managed thoughtfully, travel and tourism emerge as potent drivers of resilient and sustainable development, contributing to the collective well-being of our planet.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

Why travel and tourism have a role to play in future global prosperity

The recently released World Economic Forum’s Global Risk Report 2024 sheds light on the short- and long-term risks that the world faces. According to the report’s survey results, economic and societal risks, such as inequality, inflation, migration, and economic downturns, take center stage in the next two years, while environmental concerns, including extreme weather events and biodiversity loss, dominate the global risks for the next decade.

Given that T&T accounts for 7.6% of global GDP and close to 300 million jobs , the sector plays a critical role in addressing societal and economic challenges. The sector's significance magnifies as it empowers small- and medium-sized enterprises, with over 80% of T&T businesses falling under this category. It also plays a pivotal role in employing women, youth, migrants, and informal workers, thereby contributing significantly to economic opportunities .

T&T is also a major driver of global connectivity at a time when geopolitical tensions and conflict are on the rise, while globalization seems to be slowing. In the coming decade, T&T’s role in mitigating socioeconomic risks will only climb, with the World Travel and Tourism Council forecasting T&T sector GDP to grow at nearly double the rate of the broader global economy in the 10 years to 2033, thereby adding more than 100 million new jobs.

On an environmental level, T&T is a key stakeholder in addressing climate change and protecting the environment. The sector is not only affected by these challenges but also contributes to climate change with around 8% of global anthropogenic greenhouse gas emissions stemming from tourism activities. Therefore, actions in the sector, especially in hard-to-abate segments like aviation, are important to helping meet global climate change targets. Moreover, many destinations' dependence on nature-based attractions makes T&T a means to generate economic value for protecting nature.

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To unlock the full potential of T&T as a tool for addressing many of the world’s ongoing and future challenges, sector leaders must prioritize sustainability and resilience in their development strategies.

The Global Future Council on Sustainable Tourism emphasizes the importance of creating standards and metrics for sustainability, cultivating a well-trained and inclusive workforce, prioritizing and engaging with local communities, aligning visitors with destinations carrying capacity and making appropriate investments in relevant infrastructure .

Achieving these goals necessitates a high degree of collaboration among sector and non-sector businesses, employees, and government actors at national and local levels, including tourism and environmental agencies, civil society, and international organizations.

In the coming months, the Forum, in collaboration with the University of Surrey, will unveil the latest edition of the Travel and Tourism Development Index (TTDI). This index promises to provide a comprehensive understanding of the factors and policies that enable the sustainable and resilient development of the T&T sector.

Drawing on the latest data encompassing environmental and social impacts of T&T, labour markets, infrastructure, natural and cultural resources, and demand sustainability, the TTDI offers insights into the challenges ahead, the sector's readiness for risks and opportunities, and how it can be leveraged to address global issues. The importance of T&T for global prosperity will only grow in the years, creating new opportunities for shared commitment to a sustainable and inclusive future.

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Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

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Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Most visited museums worldwide 2019-2023
• Basic Statistic Most visited amusement and theme parks worldwide 2023
• Basic Statistic Monuments on the UNESCO world heritage list 2024, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2024

Most visited museums worldwide 2019-2023

Museums with the highest attendance worldwide from 2019 to 2023 (in millions)

Most visited amusement and theme parks worldwide 2023

Leading amusement and theme parks worldwide 2023, by attendance (in millions)

Monuments on the UNESCO world heritage list 2024, by type

Number of monuments on the UNESCO world heritage list as of 2024, by type

Selected countries with the most Michelin-starred restaurants worldwide 2024

Number of Michelin-starred restaurants in selected countries and territories worldwide as of August 2024

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Share of tech investments by travel and mobility corporations worldwide 2018-2024
• Premium Statistic Use of mobile devices to plan travel with an AI chatbot worldwide 2023, by country
• Premium Statistic Global travelers who believe in the importance of green travel 2024
• Premium Statistic Reasons for traveling sustainably worldwide 2024
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023

Share of tech investments by travel and mobility corporations worldwide 2018-2024

Distribution of tech investment deals by travel and mobility corporations worldwide between 2018 and 2024, by area of investment

Use of mobile devices to plan travel with an AI chatbot worldwide 2023, by country

Share of travelers who used a mobile device to plan or research travel with an AI chatbot worldwide as of October 2023, by country

Global travelers who believe in the importance of green travel 2024

Share of travelers that believe sustainable travel is important worldwide in 2024

Reasons for traveling sustainably worldwide 2024

Factors that inspire eco-friendly travel worldwide as of February 2024

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

• Premium Statistic Travel and tourism revenue worldwide 2020-2029, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2019-2029
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2020-2029, by segment

Revenue of the travel and tourism market worldwide from 2020 to 2029, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2019-2029

Revenue share of sales channels of the travel and tourism market worldwide from 2019 to 2029

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Further reports

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UN Tourism | Bringing the world closer

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International Tourism to Reach Pre-Pandemic Levels in 2024

• All Regions
• 19 Jan 2024

Following a strong 2023, international tourism is well on track to return to pre-pandemic levels in 2024.

According to the first UNWTO World Tourism Barometer of the year, international tourism ended 2023 at 88% of pre-pandemic levels , with an estimated 1.3 billion international arrivals . The unleashing of remaining pent-up demand, increased air connectivity, and a stronger recovery of Asian markets and destinations, are expected to underpin a full recovery by the end of 2024.

Middle East, Europe and Africa performed strongest in 2023

The latest UNWTO World Tourism Barometer provides a comprehensive overview of the sector's performance in 2023, tracking recovery by global region, sub-region and destination. Key takeaways include:

• The Middle East led recovery in relative terms as the only region to overcome pre-pandemic levels with arrivals 22% above 2019.
• Europe , the world's most visited region, reached 94% of 2019 levels, supported by intra-regional demand and travel from the United States.
• Africa recovered 96% of pre-pandemic visitors and Americas reached 90%.
• Asia and the Pacific reached 65% of pre-pandemic levels following the reopening of several markets and destinations. However, performance is mixed, with South Asia already recovering 87% of 2019 levels and North-East Asia around 55%. 

International Tourist Arrivals (% change over 2019)

Available data shows several destinations, including both large, established destinations as well as small and emerging ones, reporting double-digit growth in international arrivals in 2023 when compared to 2019. Four sub-regions exceeded their 2019 arrival levels: Southern Mediterranean Europe, Caribbean, Central America and North Africa.

UNWTO Secretary-General Zurab Pololikashvili says: "The latest UNWTO data underscores tourism's resilience and rapid recovery, with pre-pandemic numbers expected by the end of 2024. The rebound is already having a significant impact on economies, jobs, growth and opportunities for communities everywhere. These numbers also recall the critical task of progressing sustainability and inclusion in tourism development"

International tourism hit US$1.4 trillion in 2023

The latest UNWTO data also highlights the economic impact of recovery.

• International tourism receipts reached USD 1.4 trillion in 2023 according to preliminary estimates, about 93% of the USD 1.5 trillion earned by destinations in 2019.
• Total export revenues from tourism (including passenger transport) are estimated at USD 1.6 trillion in 2023, almost 95% of the USD 1.7 trillion recorded in 2019.
• Preliminary estimates on the economic contribution of tourism, measured in tourism direct gross domestic product (TDGDP) point to USD 3.3 trillion in 2023, or 3% of global GDP. This indicates a recovery of pre-pandemic TDGDP driven by strong domestic and international tourism.

Several destinations reported strong growth in international tourism receipts during the first ten to twelve months of 2023, exceeding in some cases growth in arrivals. Strong demand for outbound travel was also reported by several large source markets this period, with many exceeding 2019 levels.

The sustained recovery is also reflected in the performance of industry indicators. According to the UNWTO Tourism Recovery Tracker, both international air capacity and passenger demand recovered about 90% of pre-pandemic levels through October 2023 (IATA). Global occupancy rates in accommodation establishments reached 65% in November, slightly above 62% in November 2022 (based on STR data).

Looking Ahead to 2024

International tourism is expected to fully recover pre-pandemic levels in 2024, with initial estimates pointing to 2% growth above 2019 levels. This central forecast by UNWTO remains subject to the pace of recovery in Asia and to the evolution of existing economic and geopolitical downside risks.  

The positive outlook is reflected in the latest UNWTO Tourism Confidence Index survey, with 67% of tourism professionals indicating better or much better prospects for 2024 compared to 2023. Some 28% expect similar performance, while only 6% expect tourism performance in 2024 to be worse than last year. Key considerations include:

• There is still significant room for recovery across Asia. The reopening of several source markets and destinations will boost recovery in the region and globally.
• Chinese outbound and inbound tourism is expected to accelerate in 2024, due to visa facilitation and improved air capacity. China is applying visa-free travel for citizens of France, Germany, Italy, the Netherlands, Spain and Malaysia for a year to 30 November 2024.
• Visa and travel facilitation measures will promote travel to and around the Middle East and Africa with the Gulf Cooperation Council (GCC) countries to implement a unified tourist visa, similar to the Schengen visa, and measures to facilitate intra-African travel in Kenya and Rwanda.
• Europe is expected to drive results again in 2024. In March, Romania and Bulgaria will join the Schengen area of free movement, and Paris will host the Summer Olympics in July and August.
• Strong travel from the United States, backed by a strong US dollar, will continue to benefit destinations in the Americas and beyond. As in 2023, robust source markets in Europe, the Americas and the Middle East, will continue to fuel tourism flows and spending around the world.
• Economic and geopolitical headwinds continue to pose significant challenges to the sustained recovery of international tourism and confidence levels. Persisting inflation, high interest rates, volatile oil prices and disruptions to trade can continue to impact transport and accommodations costs in 2024.
• Against this backdrop, tourists are expected to increasingly seek value for money and travel closer to home. Sustainable practices and adaptability will also play an increasing role in consumer choice. 
• Staff shortages remain a critical issue, as tourism businesses face a shortfall in labor to cope with high demand.
• The evolution of the Hamas-Israel conflict may disrupt travel in the Middle East and impact traveler confidence. Uncertainty derived from the Russian aggression against Ukraine as well as other mounting geopolitical tensions, continue to weigh on confidence.

Related links

• Download the News Release on PDF
• World Tourism Barometer | EXCERPT | Volume 22 • Issue 1 • January 2024
• World Tourism Barometer | PPT Version | Volume 22 • Issue 1 • January 2024
• UNWTO Tourism Recovery Tracker
• UNWTO World Tourism Barometer
• UNWTO Tourism Data Dashboard

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