By Justin Varghese
Dubai: Global tourism is entering an unprecedented era鈥攑oised to serve 30 billion annual trips and contribute $16 trillion to the world economy by 2034, according to a new report by the World Economic Forum (WEF) in collaboration with Kearney and the Saudi Ministry of Tourism.In the report titled 鈥淭ravel and Tourism at a Turning Point: Principles for Transformative Growth,鈥 the sector is projected to grow 1.5 times faster than the global economy, cementing its position as a powerful engine of jobs, cultural exchange, and investment. Yet, the path forward is not without turbulence.鈥淎s global travel accelerates, we are standing at a pivotal crossroads,鈥 said B酶rge Brende, President and CEO of the WEF. 鈥淩ealizing tourism鈥檚 full potential will require bold reimagining鈥攁ligned across sustainability, community, and innovation.鈥滱sia to be fastest-growing tourism economyAsia is poised to become the fastest-growing tourism economy, with countries like India, China, Saudi Arabia, Thailand, and Sri Lanka at the forefront. By 2030, India and China alone will account for over 25% of all outbound international trips, reshaping global travel flows.The report forecasts travel and tourism GDP in Asia to exceed 7% by 2034, with countries accelerating tourism investment to build global visibility and diversify their economies.New growth drivers are emerging fast. Sports tourism is forecast to hit $1.7 trillion by 2032, while ecotourism continues to grow at 14% CAGR, tapping into younger, experience-driven travellers. Meanwhile, the travel tech market鈥攙alued at $10.5 billion in 2024鈥攊s expected to nearly double by 2033, with 91% of travel tech leaders planning increased investments.But this growth comes with high infrastructure demand. To support 30 billion global trips, the industry will need to build 7 million hotel rooms and add 15 million flights per year, the report notes.How tourism boom brings serious challengesDespite its potential, the tourism boom brings serious challenges. Without targeted reforms, greenhouse gas emissions from travel could rise from 8% to 15% of global totals by 2034. Tourists may generate 205 million tons of solid waste annually, or 7% of global waste.At the same time, labour shortages persist. The UK hospitality sector saw 53% staff turnover from 2022 to 2023, and U.S. hotels continue to face hiring challenges despite significant wage hikes.鈥淭he industry鈥檚 success is not guaranteed,鈥 warned Bob Willen, Managing Partner and Chairman at Kearney. 鈥淭o grow responsibly, we must build greener infrastructure, empower workers, and ensure local communities benefit.鈥滺osting the report launch, Saudi Arabia is investing in regenerative destinations, future-ready infrastructure, and talent pipelines to welcome 150 million visitors by 2030.鈥淭ourism is no longer a siloed industry鈥攊t is a powerful catalyst for economic growth and cooperation,鈥 said Ahmed Al-Khateeb, Saudi Minister of Tourism. 鈥淲e invite the world to be part of shaping tourism鈥檚 transformation.鈥滽ey tourism stats at a glance:30 billion annual trips by 2034 (WEF)$16 trillion contribution to global GDP (WTTC)25% of outbound travel by 2030 from India and China$1.7 trillion sports tourism market by 20327 million hotel rooms needed globally205 million tons of annual tourist waste by 2034As the world redefines how it travels, the WEF鈥檚 report offers more than forecasts鈥攊t presents a blueprint for balancing growth with responsibility, ensuring that the future of tourism is not just bigger, but better for all.