The global travel industry will exceed $16 trillion by 2035, growing faster than the world economy – Key findings from the WTM Global Travel Report 2025.
Tourism is entering a new era of dynamic growth, expanding at a pace that surpasses that of the global economy. According to the new Global Travel Report by World Travel Market (WTM), presented on Tuesday, November 4, in London, the travel industry is expected to grow at an average annual rate of 3.5% over the next decade, compared to 2.5% for global GDP.
By 2035, the total economic value of global tourism is projected to exceed $16 trillion, representing nearly 12% of global GDP.
The tourist of 2025 travels more, stays longer, and seeks authenticity
In 2025, a new record is expected: international arrivals will surpass 1.5 billion, exceeding pre-pandemic 2019 levels.
Travelers now stay more days in each destination, with the Middle East being the most notable example, where the average length of stay has increased by two-thirds compared to 2019. Major investments in tourism infrastructure, particularly in Saudi Arabia, are seen as a key driver of this shift.
At the same time, the climate crisis is affecting both the timing and geographic distribution of demand. Travelers now avoid excessively hot periods, turning instead to “shoulder” seasons or cooler destinations. This shift has given rise to the trend of so-called “cool-cations,” with Scandinavia—Sweden, Norway, and Finland—expected to see a 9% rise in arrivals during 2025.
Traditional destinations retain their strength – but “rising” ones are gaining ground
The world’s top 50 urban destinations are expected to see a 20% increase in international arrivals over the next five years, with Dubai and Bangkok leading the way.
However, more and more travelers are seeking alternative destinations offering authentic experiences and better value for money. Among them, Albania and El Salvador stand out as emerging “winners” of the new era.
Gigtripping: When music and events become a reason to travel
One of the most striking phenomena of the period is the so-called “gigtripping,” meaning travel motivated by concerts and major events.
The success of Taylor Swift’s tour and those of other major artists illustrates how live events are now shaping global travel flows.
The live events market is projected to grow at an annual rate of 6% over the next five years—faster than the overall tourism industry.
Cities, recognizing this potential, are strategically investing in attracting major events, acknowledging their impact on destination branding and hospitality revenues.
Authenticity, locality, and experiences with “a story”
The report highlights a growing traveler shift toward culturally rich experiences: seeking connection with local communities, traditional flavors, and meaningful activities.
This trend is prompting tourism businesses to invest in storytelling, craftsmanship, and local engagement. At the same time, demand is rising for less crowded destinations and a diversification of seasonality, aiming for more balanced flows throughout the year.
Artificial intelligence “redesigns” travel
Technology—and especially artificial intelligence (AI)—is fundamentally transforming how we plan and experience travel.
From chat apps providing personalized information to AI tools generating tailored recommendations, these technologies enhance the business–customer relationship.
Three times as many tourism professionals now believe that AI will increase rather than reduce total tourism spending.
Meanwhile, the digitalization of transport—with biometric checks and smart security systems—is improving efficiency and reducing friction throughout the travel journey.
Airlines, cruises, and hotels expand capacity
Supply in transportation and hospitality is rapidly expanding.
More than 15,000 new aircraft are already on order from Boeing and Airbus, while cruise passengers will exceed 38 million in 2025.
By the end of the year, 15 new ships are expected to enter service, including the new AROYA Cruises brand targeting the Middle Eastern market.
In the hotel sector, 500,000 new rooms are expected to open in 2025, while another 1 million are under construction worldwide.
Challenges and inequalities: Pressure on the United States
Not all regions share the same positive outlook. The report notes that North America is facing a slowdown, with arrivals to the United States expected to fall by 6% in 2025.
Political uncertainty, new tariffs under the Trump administration, and inflationary pressures are affecting disposable income and, consequently, travel demand.
Conclusion: Tourism as the most dynamic “engine” of global growth
Despite challenges, the WTM report delivers a clear message: tourism continues to act as a powerful driver of global development, with new trends—from authenticity and experiential travel to artificial intelligence—shaping a future that is more diverse, technological, and experience-driven than ever before.
