International visitor arrivals are predicted to return to pre-pandemic levels by 2024, owing to increased demand. However, the rehabilitation of the travel and tourist industry following the pandemic has not been without hurdles. Add to it financial, geopolitical, and environmental problems, which have put additional strain on the business.
These pressures will magnify and evolve in the coming years, and the tourism sector may be forced to adapt as digital technologies and AI advance.
Some economies are better positioned than others to implement these changes, respond to future dangers, and guarantee that travel and tourism remain a driver of economic growth and prosperity.
The World Economic Forum’s Travel & Tourism Development Index (TTDI) provides a baseline for stakeholders to track progress, guide choices and policies, and promote sustainable and resilient growth.
Europe leads the top ten T&T economies, according to the 2023 ranking, however the United States takes the top slot.
However, the index also shows that, while 71 of the 119 economies it evaluates had their scores rise between 2019 and 2023, the average increase was only 0.7% above pre-pandemic levels.
On the one hand, the recovery in travel and tourism has corresponded with expanded global air route capacity and connectivity, more international openness, and increased investment in natural and cultural resources that drive tourism. Non-leisure demand, on the other hand, remains low, labor shortages persist, and air route capacity and connectivity, capital investment, and productivity have struggled to keep up with demand.
This has generated a supply-demand imbalance, which, along with inflationary pressures, has resulted in decreased pricing competitiveness and service problems.