Global tourism spending hits pre-pandemic highs, event reveals

Global tourism spending has bounced back, reaching pre-pandemic levels for the first time, as revealed at the 2024 World Travel Market (WTM) in London. 

Drawing over 40,000 industry professionals, including CEOs and tourism ministers, the event highlights both the recovery and the evolving challenges in travel and tourism.

Rapid rebound, but cost concerns loom

According to Oxford Economics, global tourism spending this year has outpaced the 2019 peak, when the sector contributed 10.4 percent to global GDP. 

David Goodger, Managing Director for EMEA at Oxford Economics, said to CGTN Europe that "the travel sector is resilient and people crave that human connection." He added that travelers' behaviors have evolved since COVID. 

"During the pandemic, we saw a lot of purchases – people bought a lot of items," he said. "Now we're seeing a move away from that. 

"When we look at travel spending as a share of total consumption, we see that it averages around 8 percent of total consumption. 2019 was a good year. It was up around 8.5 percent."

China's growing influence on global tourism

As the industry rebounds, China's role is set to become increasingly significant.

"The fastest-growing source market would be China. We expect a return to 2019 levels of Chinese travel by about 2026," Goodger noted. 

While global travel companies look to attract more Chinese tourists, who are known as big spenders, China is expanding visa-free policies, recently adding Slovakia, Norway and Finland. 

Ou Yao, Manager of Branding & Customer Management at China Highlights, said her company is "rolling out new travel packages to match China's updated visa-free policies."

"Our clients from different countries have varying preferences," she continued. "For instance, our customers from the United States often prefer a more traditional travel experience, with an emphasis on overall comfort and high-quality options for dining and accommodation. 

"European customers, however, tend to seek out more in-depth cultural experiences, with destinations like Datong—known for its rich heritage—being particularly popular. Meanwhile, travelers from Southeast Asia are often drawn to iconic 'check-in' spots, such as Zhangjiajie, which has become a well-known internet favorite."

Ou said one challenge for travelers in China is the use of digital payment systems. China has introduced several measures to facilitate intentional tourists' travel across the country. 

"We're enhancing inbound travel convenience by supporting various payment methods - credit cards for larger transactions, QR codes for smaller ones, and cash as a fallback option," said Shi Zeyi, Deputy Director-General of the Bureau of International Exchange and Cooperation, Ministry of Culture and Tourism of China.

Boon Sian Chai, Trip.com Group's Managing Director of International Markets, hopes China's visa-free policy would inspire similar actions from other nations. 

"For countries that have adopted some of these reciprocal visa free travels like Singapore, Malaysia and Thailand, including some of the Middle East countries like Saudi Arabia and UAE, they are actually seeing better growth compared to those countries without visa free applications," said Chai.

Sustainability as a concern

Before the pandemic in 2019, global tourism spending reached an historic high, according to the World Travel and Tourism Council, and industry leaders now expect that momentum to pick up and continue for years to come.

With travelers increasingly seeking tailored experiences, Trip.com is using AI-powered solutions to enhance customization. "Our trip planner tool provides an itinerary based on customer preferences," explained Chai. 

"If someone flies from Shanghai to London with five days, our tool curates activities, hotel options, and more, integrating everything into a seamless booking experience."

Despite the positive economic impact, sustainability remains a key concern. WTM discussions highlighted the need for standardized practices across the industry.

Chai highlighted a significant gap: "There's a lack of consistency in sustainability certification across different countries and hotels, leading to inappropriate practices."