International Tourism in 2025

Source: A personal holiday snap. Taken on the way to travel on holiday during the Chinese New Year holiday 2025 (Year of the Snake)

International tourist arrivals are expected to grow by 3% to 5% in 2025, following a strong rebound in 2023 (+33%) and 2024 (+11%). This growth assumes stable global economic conditions, lower inflation, and no escalation of geopolitical conflicts. The UN Tourism Confidence Index supports these positive expectations, with 64% of experts predicting better prospects for 2025. However, challenges remain, including high transport and accommodation costs, volatile oil prices, and geopolitical risks. Tourists are expected to seek value for money, with a focus on sustainability and lesser-known destinations becoming key trends for 2025.

International tourism significantly contributes to global economies, impacting GDP and job creation across various countries. In 2023, the travel and tourism sector's total contribution to global GDP was approximately $10 trillion, accounting for about 9.1% of the global economy. This marks a substantial recovery from the pandemic's impact, with a 23.2% increase compared to 2022. The sector also supported around 330 million jobs worldwide in 2023, representing 9.1% of total employment.

At the national level, the economic impact varies. In 2023, the United States experienced the highest total contribution from travel and tourism to its GDP, amounting to $2.36 trillion. China and Germany followed, with contributions of approximately $1.3 trillion and $488 billion, respectively. Regarding international arrivals, France led globally with 100 million visitors in 2023, making it the most visited country that year.

Trends Among Different Generations of Travellers

Youth travel remains a crucial segment within the global tourism industry, accounting for a significant portion of international arrivals. In 2017, top destinations for young travellers included the United States, Spain, France, Italy, the United Kingdom, Germany, the Netherlands, Australia, Thailand, and Austria. This demographic typically stays longer, spends more, and travels more frequently than other tourists, influencing both their current travel behaviour and future patterns. In fact, the youth travel market represented over 20% of all international arrivals in 2014, with 227 million arrivals and US$250 billion in expenditures. By 2020, the market was expected to grow to 300 million arrivals, generating US$320 billion in value. Young travellers also have an estimated lifetime travel budget of US$80,000, making them key players in shaping tourism trends.

Meanwhile, middle-aged travellers are increasingly prioritising travel as an essential part of their lives. A survey by Marriott International showed that 36% of respondents plan to travel more in the coming year, with individuals aged 25 to 34 showing the strongest interest. Many are also embracing off-peak travel to save money and avoid crowds, while an increasing number are opting for eco-friendly transportation and accommodations. Technology plays a significant role in this shift, as more travellers turn to AI-powered tools for trip planning, reflecting the broader trend of incorporating digital solutions into their travel decisions.

For retirees, travel has become a central aspect of post-retirement life. In the U.S., 59% of retirees plan to travel more during retirement than they did while working, with 40% either planning or already taking celebratory trips. In Europe, the over-60 age group is projected to represent 140 million tourists by 2030, driven by longer life expectancies and better financial stability. This demographic tends to favour off-peak travel for lower prices and fewer crowds. However, health concerns remain a barrier, with 41% of seniors citing health issues as a reason for limiting travel.

Looking to the future, international tourism will continue to evolve, with technological advancements playing a central role. Artificial intelligence will help personalise travel experiences, while virtual reality could allow travellers to preview destinations before booking. Sustainability will remain a key focus, with growing demand for eco-friendly travel options and authentic, meaningful experiences. Young travellers, in particular, will continue to seek ways to engage with the world more consciously and impactfully, redefining what it means to travel in a socially and environmentally responsible way.

Sources

•  https://www.thetimes.co.uk/article/over-60s-more-likely-to-fly-than-gen-z-travellers-k5m5l9vhz

•  https://www.travelandtourworld.com/news/article/global-travel-trends-for-2025-sustainability-tech-integration-emerging-destinations/

• https://www.keevee.com/digital-nomad-statistics

•  https://www.news.com.au/travel/destinations/major-move-to-make-nation-wfh-haven/news-story/b0072abab5e76fcf09e7a5fcd1f93a8a

• https://nypost.com/2024/12/31/lifestyle/noctourism-is-set-to-soar-in-2025-heres-why-travelers-are-splashing-out-to-see-the-northern-lights-and-go-star-bathing/

• https://ec.europa.eu/eurostat/en/web/products-eurostat-news/

• https://europaexpress.news/senior-tourism-boom-europe-expects-140-million-tourists-aged-60-and-over-by-2030/

• https://nypost.com/2024/08/27/lifestyle/how-americans-are-reinventing-retirement/

• https://wttc.org/news-article/travel-and-tourism-sector-now-worth-more-than-quarter-of-a-trillion-sterling-says-wttc

• https://wttc.org/research/economic-impact/country-analysis/league-table-summaries

• https://elpais.com/economia/2024-12-26/el-turismo-supera-las-cifras-prepandemia-y-vuelve-a-aportar-el-12-del-pib-y-del-empleo-en-espana.html

• https://www.unwto.org/news/international-tourism-recovers-pre-pandemic-levels-in-2024#:~:text=With%201.4%20billion%20international%20tourist,crisis%20in%20the%20sector's%20history.