The global tourism sector is recovering faster than expected this year despite macroeconomic and geopolitical tensions, experts from the World Travel and Tourism Council (WTTC) have concluded.
According to the latest WTTC forecast, prepared in partnership with Oxford Economics, total global tourism arrivals will grow by 5% in 2023 compared with 2019, not by 2% as predicted here in March this year. This year, the share of travel and tourism in global GDP is expected to be 9.2% and reach $9.5 trillion.
The number of tourists in the Middle East this year will increase by 28% compared to pre-pandemic levels. By the way, in the spring WTTC predicted an increase of 22%.
However, the war between Israel and the Gaza Strip has led to a reduction in air travel to the region, Middle Eastern carriers said. Problems encountered include costly flights, high fuel bills, and a decline in international travelers.
Despite being one of the hardest hit sectors during Covid-19, the tourism industry is now showing strong growth.
“The reason we have not achieved a full recovery is because China, one of the largest travel and tourism economies, only opened up this year,” said Julia Simpson, president and CEO of WTTC.
She also stressed that it was important for the sector to consider its impact on the environment as it bounced back. After all, according to a study published last year by WTTC and the Global Center for Sustainable Tourism, the travel industry accounted for 8.1% of greenhouse gas emissions in 2019, 10.6% of total global energy, and 0.9% of freshwater consumption.
In addition, the head of WTTC recalled the difficulties associated with labor shortages, “which were short-lived, but slightly slowed down the recovery.” She noted that in the next 10 years, the travel industry’s contribution to gross global income will increase and reach approximately $15.5 trillion.