The global travel industry is expected to grow at a faster rate than the world economy over the next decade, according to the Global Travel Report by World Travel Market (WTM), released today, November 4, in London. The research, conducted by Tourism Economics, a subsidiary of Oxford Economics, forecasts that tourism will expand by an average of 3.5% annually, compared with 2.5% for the global economy.
By 2035, the sector is projected to generate over $16 trillion worldwide, representing nearly 12% of global GDP.
Travelers return – and change their habits
The year 2025 marks the full recovery of international tourism after the pandemic, with international arrivals surpassing 1.5 billion, a new historic record. Travelers are now staying longer in one destination, reversing the previous trend of short but frequent getaways. The change is particularly evident in the Middle East, where the average length of stay has increased by about two-thirds compared to 2019 – a development attributed to Saudi Arabia’s momentum and massive investments in tourism infrastructure across the region.
At the same time, the climate crisis is reshaping travel patterns. Excessive heat and wildfires are prompting more travelers to choose shoulder and low seasons instead of the summer peak. From this shift emerged the new trend of “cool-cations”, with travel to Sweden, Norway, and Finland rising by 9% in 2025, surpassing more traditional summer destinations.
Classic destinations and new discoveries
“Bucket list” destinations remain consistently popular: the 50 leading urban cities in the world are expected to record a 20% increase in international arrivals over the next five years, with Dubai and Bangkok leading the way. At the same time, the quest for authentic experiences and better value is steering travelers toward emerging destinations such as Albania and El Salvador, which are showing remarkable growth.
Gigtripping: major events drive travel
The trend of “gigtripping” – traveling for concerts and major events – continues to boom. From Taylor Swift’s tour to the Olympic Games and other major sporting events, live experiences are becoming decisive factors in destination choice. According to Allied Market Research, the global live events industry is expected to grow by 6% annually over the next five years, outpacing overall tourism growth.
The search for authenticity
Connection with locals, traditional flavors, and handcrafted experiences now lie at the heart of travel. Travelers seek a genuine bond with the destination, favoring less crowded places and new narratives. The industry, in turn, is focusing on creating personalized and culturally rich experiences, emphasizing each place’s uniqueness.
Artificial intelligence changes the game
Technology is emerging as a defining factor in shaping the travel experience. From messaging apps that offer personalized communication to immersive travel applications that accompany travelers through every stage—from dreaming to booking—the digital dimension is becoming central.
Artificial intelligence (AI) is now a growth driver, as three times more tourism professionals report that AI tools increase rather than reduce total tourism spending. At the same time, broader automation at airports, including biometric systems and smart security, is streamlining traveler flow.
More supply, more travel
The expansion of options in air routes, cruises, and accommodations is further boosting demand. Airlines have ordered more than 15,000 new aircraft, while the cruise industry is expected to surpass 38 million passengers in 2025, with 15 new ships joining the global fleet this year. New players such as AROYA Cruises, targeting the Arab market, are entering the scene, while the hotel sector is projected to add more than 500,000 new rooms in 2025, with another one million under construction worldwide.
Challenges and uncertainties
Despite the optimism, the report notes that the picture is not uniform. Prospects in North America are more restrained, with arrivals to the United States expected to decline by 6% in 2025, meaning that 2019 levels will not be regained before 2029. Economic and geopolitical risks, along with trade tariffs under the Trump administration, are driving up costs and reducing travelers’ disposable income.
The WTM Global Travel Report outlines a sector in profound transformation — more technological, more culturally aware, and more experience-oriented. Tourism, despite the challenges, continues to stand as one of the strongest driving forces of the global economy.
