Despite facing significant challenges due to the Covid-19 pandemic, the global tourism sector has witnessed remarkable resilience, with people worldwide spending a staggering amount on travelling and vacations. According to data from Stocklytics.com, global travel and tourism expenditures have exceeded USD 4 trillion in the past five years, highlighting the enduring appeal of travel and leisure activities.
The rebound in the tourism sector has been particularly notable, with global travel and tourism revenues projected to increase by 8.3 per cent in 2024, reaching almost USD 930 billion. This surge marks the highest revenue figure ever recorded in the industry, reflecting a strong resurgence following the pandemic-induced downturn.
Hotels emerged as the dominant segment in terms of spending, accounting for nearly half of the total expenditure over the past five years. With a cumulative revenue of USD 1.85 trillion, hotels significantly outpaced other sectors such as package holidays, camping, cruises, and vacation rentals.
Hospitality and consumer tech companies are emerging as hunting grounds for such talent, which can command compensation packages ranging fromINR 70-80 lakhs, reaching up toINR 1-2 crore for CXO appointments. The travel market in India, estimated at USD 75 billion in FY20, is projected to reach USD 125 billion by FY27, according to data from industry body FICCI.
The years 2020 and 2021 witnessed unprecedented challenges for the tourism sector, characterized by steep revenue declines. However, despite these setbacks, people continued to allocate substantial resources to travel and vacation activities, underscoring the enduring appeal and importance of leisure experiences.A detailed breakdown of regional spending patterns revealed that Europeans emerged as the top spenders on vacation and travel, with a total expenditure exceeding USD 1.2 trillion in the last five years. Americans followed closely behind, with USD 917.7 billion in total spending, while Chinese travellers accounted for USD 666 billion in expenditures during the same period.
The data underscores the global appetite for travel and leisure activities, highlighting the sector’s resilience and capacity for recovery in the face of unprecedented challenges. As global travel restrictions ease and consumer confidence rebound, the tourism industry is poised for further growth and innovation, signaling promising prospects for stakeholders across the travel ecosystem.
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The travel and tourism sector has marked a robust bounce back to the pre-pandemic levels, which would generate USD 10 trillion by the end of 2023 and become a USD 15 trillion economy in the next 10 years, the World Travel & Tourism Council (WTTC) said here. Speaking at the opening press conference of its 23rd Global Summit, WTTC President & CEO Julia Simpson said the latest data highlights that the sector, which was badly hit during the COVID-19 pandemic, is now recovering faster than anticipated.
“We are in 2023 and I am delighted to say that we have recovered, and by the end of this year, the industry will be worth nearly USD 10 trillion. Despite China’s full recovery potential yet to be realised, the sector’s performance is exceeding expectations. But, we are practically there,” Simpson said as the Summit commenced on Wednesday.
“In the next 10 years, the industry will go way ahead of the USD 10 trillion mark. This sector will be worth nearly USD 15 trillion,” Simpson said.
Though China is one of the biggest travel and tourism economies, the country is still going through “opening processes and making sure people can travel and get visas,” she added.
Citing the latest WTTC data, she said despite geo-political and economic turmoil in 2023, the sector has demonstrated a fast recovery against our initial expectations. “Our previous prediction in March has now been exceeded by the sector’s performance.”
“Every single region, such as Europe, Africa, and the Middle East is growing faster than what we have originally predicted. Our sector has shown true resilience and grit in re-opening and returning post the pandemic,” she said.
The Indian hotel industry has successfully sustained many cost-rationalisation measures adopted during the Covid-19 pandemic, coupled with the benefits of operating leverage. Margins have expanded significantly when compared to pre-Covid levels. Companies have also transitioned to renewable power sources, managed cost inflation, and maintained strict control over fixed costs, bolstering margins.
Expressing the sector’s commitment to save the environment, Simpson said the travel and tourism industry is also focussing on sustainability. According to WTTC 2019 data, travel and tourism was responsible for 8.1 per cent of the Greenhouse gas emission globally. “As our sector continues to grow, we are becoming more efficient with our energy use. While travel and tourism is growing, the impact on the environment is not growing at the same rate,” said Simpson, who was accompanied by WTTC Chair, Arnold Donald.
Highlighting the importance of the sector in creating new employment opportunities, Donald said one out of five new jobs being created today across the world is from the travel and tourism sector.
Officials said the three-day-long Summit is being attended by nearly 1,000 delegates from across the world, including government representatives of 45 countries.
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