Global Economic Impact Expected to Break Records

According to a report by the World Travel & Tourism Council (WTTC), the global travel and tourism sector is forecast to generate $11.7 trillion in economic value, accounting for 10.3% of global GDP. The projection surpasses the previous record set in 2019, with international visitor spending alone expected to reach $2.1 trillion—$164 billion more than before the pandemic.

Job creation is also projected to increase, with the sector expected to support 371 million jobs worldwide by the end of the year, up from 357 million. If realized, this figure would exceed pre-pandemic employment levels.

Uneven Recovery Across Major Economies

Despite overall sector growth, key markets are showing uneven recovery trends. The United States, the largest travel and tourism market globally, has not yet regained its 2019 levels of international visitor spending. Similarly, while exceeding pre-pandemic international spending in 2023, China is anticipated to see a significant deceleration in 2025.

These trends suggest that while global totals are improving, individual country recoveries remain inconsistent due to various domestic and international factors, including economic uncertainty, fluctuating consumer confidence, and geopolitical influences.

Saudi Arabia Forecasts New Sector Highs

Saudi Arabia is projected to see the travel and tourism sector contribute SAR 447.2 billion to its economy. This would mark the highest level of economic impact from the sector in the country’s history. Employment in the sector is expected to reach 2.7 million, with the industry making up more than 10% of national GDP by 2025.

Inbound visitor spending in Saudi Arabia is projected to approach SAR 200 billion, while domestic tourism spending is estimated to hit SAR 162.5 billion—both setting new records.

Middle East Regional Outlook

The travel and tourism sector across the broader Middle East is expected to contribute $367.3 billion to the regional economy and support 7.7 million jobs. International visitor spending in the region is projected at nearly $194 billion, representing a 24% increase compared to 2019. Domestic traveler spending is expected to reach approximately $113 billion.

These figures position the Middle East as one of the fastest-growing regions for travel and tourism recovery and development, contrasting with stagnation or slower growth in some Western and Asian markets.

Outlook and Risks

The WTTC report highlights the sector’s strong post-pandemic recovery trajectory, driven by increased global mobility, improved infrastructure, and rising consumer demand. However, it also notes that persistent inflation, labor shortages, and regional instability may challenge growth.

The projections are based on data modeling in partnership with Oxford Economics and include detailed assessments of more than 185 countries and territories.