International visitor spending in the United States is expected to decline by $12.5 billion this year, with the world’s largest travel and tourism market showing it could lose its competitive edge without traveler-friendly policies and reduced visa costs, the World Travel & Tourism Council warned at its 25th annual meeting in Rome. On the other hand, Europe’s tourism industry is on track to reach record numbers by 2025, contributing 2.6 trillion euros to the continent’s GDP.
Travel and tourism contributed $2.6 trillion to the US GDP in 2024, with the domestic market remaining the strongest in the world, maintaining millions of jobs and supporting the sector’s resilience. However, Donald Trump’s return to the presidency has led to travel bans on certain countries and tariffs, adding uncertainty to transatlantic travel, as the European Travel Commission pointed out before the peak of the summer season.
The case of Europe
The report notes that the region’s broad development in Europe demonstrates its ability to combine heritage with innovation, maintain its global competitiveness, and lead the way in sustainable tourism development.
According to the latest WTTC Economic Impact Report, the European tourism industry is on track to reach record numbers by 2025, contributing €2.6 trillion to the continent’s GDP and supporting more than 41 million jobs – one in 10 across the continent.
The WTTC report on economic impact shows that five of the ten strongest travel and tourism markets worldwide, based on GDP, are in Europe.
France was ranked as the most visited destination in the world, generating $289 billion from travel and tourism in 2024, while Spain, the second most visited country in the world, added $270 billion.
Other markets
The United Kingdom added $367 billion to its economy, maintaining its position as one of the strongest and most dynamic markets worldwide, despite losing £2.2 billion from international visitors last year, according to the report.
The Middle East remains one of the fastest-growing regions in the world, with Saudi Arabia continuing to stand out as a global power, with incoming visitor spending increasing and infrastructure investments reaching record levels.
In China, which ranks as the world’s second-largest travel and tourism market, the sector contributed $1.64 trillion to the economy in 2024 and is expected to grow 22.7% this year, adding $260 billion.
Japan, with the fifth largest travel and tourism economy at $310.5 billion in 2024, is expected to add an additional $13.8 billion to its GDP this year, reaching nearly $325 billion.
Investments and jobs
Global investments in the sector exceeded $1 trillion in 2024, marking a 9.9% year-over-year increase, and are expected to continue growing in 2025.
The United States, China, Saudi Arabia, and France together accounted for more than half a trillion dollars of these investments.
The travel and tourism industry supported 357 million jobs in 2024, which is expected to increase to 371 million, along with the increase in the industry’s share in global employment.
One in eight jobs worldwide will be supported by the sector by 2035, with an additional 91 million new jobs – the majority in the Asia-Pacific region – resulting in one in three new jobs worldwide being supported by travel and tourism, the WTTC predicted.
Gloria Guevara, the interim CEO of WTTC, said: “These results show strength and opportunities. The US remains the world’s largest travel and tourism market, China is recovering, Europe is moving at a rapid pace, and destinations in the Middle East, Asia, and Africa are experiencing record growth. This year, we predict that our sector will contribute a historic $2.1 trillion, surpassing the previous high of $1.9 trillion in 2019 by $164 billion.”
