How travel and tourism can fuel growth in an uncertain economic era

Earlier this year at the World Economic Forum Annual Meeting in Davos, Switzerland, as leaders and innovators from around the world came together to share ideas and solutions, we were reminded of the transformative power of travel – not just as an economic engine but as a deeply human force.

We heard stories: a young entrepreneur in Latin America whose eco-lodge now supports her entire village and a city mayor in Europe using technology to preserve cultural heritage for future generations.

These examples reflect a simple truth: tourism is more than an industry. It is a bridge – between cultures, communities and aspirations – with the capacity to spark hope even in times of uncertainty.

That hope is needed now more than ever. The global economy is forecast to grow by 3% this year – a resilient figure but still below pre-pandemic dynamism.

Services form the bedrock of this growth, accounting for two-thirds of global gross domestic product (GDP) and more than half of all jobs. Yet the sector shows signs of strain, with global services trade growth slowing to 5% year-on-year in early 2025.

Within this landscape, travel and tourism remain powerful drivers of shared prosperity. This year, global travel and tourism revenues are expected to reach a record $2.1 trillion. Behind these numbers lie millions of livelihoods and countless stories of personal transformation.

Today, the sector contributes over 10% of global GDP and supports more than 350 million jobs worldwide – a figure set to rise to 430 million by 2034, according to the World Economic Forum’s latest research. It is also a vital source of opportunity for women and youth, particularly in regions where access to employment is limited.

However, unlocking tourism’s full potential requires confronting real challenges. Many frameworks governing the sector are outdated, often overlooking the very communities and workers who make tourism thrive.

Overcrowding now affects the majority of major destinations. Housing, infrastructure and social cohesion are under pressure. Volatile energy prices, labour shortages and uneven digital readiness further threaten to slow momentum.

The sector’s environmental impact also demands attention. If tourism is to preserve the destinations that inspire travel, it must move beyond minimizing harm to actively restore and protect natural resources. Responsible, low-carbon and nature-positive models of growth are not just desirable – they are essential.

Encouragingly, innovative approaches are already emerging. In Latin America, community-based tourism initiatives are protecting biodiversity while creating jobs. In Asia, new digital tools are helping small businesses and start-ups reach global audiences.

Across Europe, cities are using technology and public-private partnerships to enhance both visitor experiences and residents’ quality of life. These examples show that when stakeholders collaborate, they can transform challenges into opportunities and make prosperity more resilient and inclusive.

Scaling such solutions will require cooperation across sectors and borders, balancing economic growth with environmental stewardship and social cohesion. Ensuring that tourism development aligns with climate commitments, community wellbeing and transparent governance will be critical to building trust and resilience.

The energy and innovation within the travel and tourism community offer real reasons for confidence. Now is the moment for policymakers, business leaders, travellers and hosts to work together. If we do, we can ensure that this remarkable sector continues to serve as both a bridge – connecting cultures, people and perspectives – and a ladder – lifting communities, creating opportunity and inspiring shared progress for generations to come.