WTTC: Tourism expected to grow at record pace despite new US tariffs

London, April 9 - New US tariffs may not have a negative impact on tourism. Although the prices of goods are expected to increase significantly and global markets are teetering on the edge of recession, the World Travel and Tourism Council (WTTC) expects record growth in tourism in the coming months. This year, the value of the tourism industry is expected to reach a record 11.7 trillion USD (267.2 trillion CZK) and will account for 10.3 percent of global gross domestic product (GDP). Travelers are expected to spend 2.1 trillion USD on international trips this year. This will surpass the record spending in 2019, which amounted to 1.9 trillion USD. This was reported by Bloomberg, citing a WTTC report.

Tourism as a whole has been recording steady growth since the lifting of pandemic restrictions. It is expected that by 2035, total traveler spending could rise to 2.9 trillion USD. When indirect contributions to the global economy, such as hotel purchases from nearby businesses and the local purchasing power of hospitality workers, are taken into account, the value of tourism is $16 trillion, equivalent to 11.5 percent of global GDP.

The WTTC report was prepared before the announcement of new US tariffs on most countries in the world. These tariffs could raise the price of goods, reduce access to flights and leave American consumers with less money to spend. However, WTTC President and CEO Julia Simpson is not too concerned about the wider impact of the tariffs on tourism.

"Očekáváme, že mezinárodní cestovní ruch bude letos pokračovat v silném růstu, stejně jako výdaje, a to i přes některé krátkodobé protivětry," řekla Simpsonová agentuře Bloomberg. Od doby, kdy její tým ukončil průzkum, se toho hodně změnilo, ale lidé podle ní stále dávají svým cestám přednost a případné negativní dopady budou spíše jen krátkodobou záležitostí, určitým "výkyvem v číslech".

This is partly because people often plan their holidays in advance and many trips are paid for in advance. Current summer bookings, according to WTTC, show France and Spain on track for a record year, while Asia-Pacific and the Middle East are also showing strong performance.

But WTTC admits that tourism performance could be weaker in the United States and China. A separate US analysis published by Oxford Economics in early April showed that international tourist arrivals could fall by 9.4 percent, causing a loss of around $9 billion in tourist revenue. The decline is attributed to a number of factors, including US border and immigration policies, a strong dollar, reputational damage and weaker economic growth in Canada and Mexico, the two main sources of international visitors.

“The US will continue to be the largest tourism market by contribution to GDP, but there are some headwinds,” Simpson said. She promised more analysis in the coming weeks and months.

Simpson also noted that tourism has proven to be a more resilient industry - one that has recovered faster than most from major wars, global pandemics and natural disasters. Despite her optimistic outlook, she is concerned because no one knows how tariffs might affect the global supply chains that tourism depends on. We'll have to wait and see how things play out.

Czech press agency | WT.24