Sustainable Development

7 tourism and travel myths busted: and why they mask the sector's sustainable development potential

In 2024, tourism is expected to contribute around 10% of global GDP.

In 2024, tourism is expected to contribute around 10% of global GDP. Image: Getty Images/iStockphoto

Francisco Betti
Head, Global Industries Team; Member of the Executive Committee, World Economic Forum
Mauricio Zuazua
Partner, Kearney
This article is part of: World Economic Forum Annual Meeting
  • Travel and tourism aren't just expanding after the pandemic, they are promoting growth aligned with sustainable development.
  • The sector fosters cultural exchange across geographies and boosts individual happiness and well-being.
  • Its innately interconnected nature rests on an ecosystem of stakeholders who must collaborate effectively along the value chain.

The travel and tourism sector is on an exciting journey of transformation. Emerging from the challenges posed by the COVID-19 pandemic, the industry is not just recovering; it’s thriving! While some mixed sentiments linger, recent news and reports highlight a wave of optimism, showcasing the incredible potential of this vibrant sector.

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As one of the largest industries globally, contributing over 10% of total jobs and projected to grow significantly in the coming years, travel and tourism is poised for "good growth”. This means economic expansion that uplifts not only corporations, but also local communities, travellers and our environment. To realize this vision, it’s essential to harness the sector's full potential by looking at it holistically, foster collaboration across its diverse ecosystem, and also tackle some misconceptions.

Here are seven current travel and tourism myths debunked:

1. Slow recovery from COVID-19: Contrary to belief, 2024 is set to surpass previous national travel spending records in over 140 countries, signalling a robust rebound.

2. International dominance: Actually, domestic travellers account for approximately 75% of total spending in travel and tourism, highlighting the strength of local exploration.

3. Business travel in decline: The global business travel industry is instead expected to reach around $1.5 trillion in spending by 2024, with forecasts suggesting growth to $2 trillion by 2028.

4. Benefits limited to developed countries: Emerging economies capture today nearly half of global tourism flows, making tourism a top-five export earner for 80% of nations worldwide.

5. Large corporations reap all rewards: In reality, 80% of businesses in this sector are small and medium enterprises that drive local employment and community development.

6. Jobs in decline: But forecasts predict an addition of approximately 100 million jobs in travel and tourism by 2034, which is higher than the ~350 million jobs the sector has today.

7. Big environmental impact: Reducing emissions is a key priority for travel and tourism, and the sector contributes today to about 8% of global emissions, making its environmental impact smaller than many other sectors.

These realities not only dispel myths, but also illuminate the sector’s capacity to drive economic growth, inclusive prosperity and sustainable development.

Well-being and interconnectedness of tourism industry

The economic impact of travel and tourism is significant. In 2024, the sector is projected to contribute around 10% to global GDP with expectations to reach 11.4% – equivalent to $16 trillion by 2034. This expected growth would outpace the global economy by 1.5 times (3.7% vs 2.4% real growth). However, the benefits extend beyond mere numbers. Travel fosters cultural exchange, promotes empathy and enhances cross-cultural understanding between and across geographies. Studies indicate that travelling can boost happiness and even slow ageing, enriching personal well-being alongside economic contributions.

The traveller’s journey – from inspiration through social media to booking and engaging with local businesses – is supported by a vast network of stakeholders. This interconnectedness highlights the importance of collaboration among airlines, hospitality providers, local businesses, and technology platforms. No single player can drive meaningful transformation alone; solid partnerships across the value chain are essential for success.

Establishing solid partnerships across and beyond the tourism value chain is critical.
Establishing solid partnerships across and beyond the tourism value chain is critical. Image: WEF

This interconnected journey illustrates the interdependence of diverse players, from airlines and hospitality providers to local SMEs and technology platforms. Beyond these core players, the sector relies on adjacent and supporting industries, such as infrastructure, telecommunications and service providers, that enable seamless travel experiences and add to a destination’s value proposition.

To reimagine travel and tourism as a transformative force for good, stakeholders must embrace a holistic approach. The sector already acts as a catalyst for growth; however, for sustainable impact, this vision must be shared by all involved. The road ahead is not just about recovery; it’s about envisioning travel as a powerful connector that fosters understanding and sustainable development. While challenges remain, the opportunities to cultivate a more inclusive and impactful industry are vast.

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This positive sentiment within the sector serves as a call to action. By addressing misconceptions, leveraging its extensive ecosystem and prioritizing collaboration, travel and tourism can change its narrative into one that champions economic growth, cultural enrichment and environmental stewardship. As we look forward to a brighter future in travel, let’s celebrate how it can uplift communities while creating unforgettable experiences for travellers worldwide!

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The views expressed in this article are those of the author alone and not the World Economic Forum.

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