Tariffs May Not Impact Travel Economy, Global Tourism Expert Says

The price of nearly every good you consume may be on the verge of skyrocketing, and global markets are teetering on the edge of a recession. Yet the travel industry is predicting record growth in the months ahead: The leading forecast for its contribution to the global economy in 2025 is $11.7 trillion, or 10.3% of the world’s gross domestic product. Travelers are projected to spend more than ever on international trips this year, to the tune of $2.1 trillion, which surpasses the prior high of $1.9 trillion in 2019.

As a whole, the tourism industry has experienced sustained growth since pandemic lockdowns lifted, putting the sector on a trend line that could reach $2.9 trillion in spending by 2035. Considering the indirect contributions of tourism to the global economy—such as hotels’ purchases of supplies from nearby businesses and the local spending power of hospitality staff—that would make the travel industry a $16 trillion powerhouse, responsible for 11.5% of global GDP.