The latest Economic Trends Report from the World Travel & Tourism Council (WTTC) reveals that the US continues to be the largest and most powerful Travel & Tourism market in the world.
Its position at the top has been reaffirmed, despite suffering long and damaging travel restrictions, which did little to stop the spread of COVID-19 and only resulted in severe economic losses.
However, although it has maintained its number one position, the contribution of the Travel & Tourism sector to the US economy fell by $700 billion compared to 2019, to just under $1.3 trillion last year.
Research from Oxford Economics for the WTTC shows that there has been no change in the top three countries — with China in second and Germany in third.
But the rankings are misleading, as the major economies boosted their numbers through domestic travel, while international visitor numbers plummeted.
In the US, international traveler spending rankings saw the country dethroned from its pre-pandemic top position.
But despite the challenges of the last 2 years, the new report shows that business travel is on the path to recovery.
Julia Simpson, president and CEO of the WTTC, said: “Our report shows the resilience of the Travel & Tourism sector, despite the impact of travel restrictions worldwide, which failed to stop the spread of the virus.
“Despite a challenging macroeconomic environment, Travel & Tourism has recovered. The world is traveling again. And we are seeing a resurgence in business travel. In the next 10 years, the growth of Travel & Tourism will outpace that of the global economy.”
WTTC data reveals that in terms of the contribution of the Travel & Tourism sector to GDP, China maintained its second position, with over $814 billion, while Germany remained the third largest Travel & Tourism sector in the world, contributing $251 billion to the German economy.
The UK dramatically fell from 5th place in 2019 to ninth in 2021, with a contribution of just over $157 billion, marking the largest decline among the top 10 countries.
In terms of international traveler spending, France, which was in fourth place before the pandemic, surpassed Spain, China, and the US to take first place.
China, which remains closed to much of the rest of the world, was in second place before the pandemic but dramatically fell to 11th place in 2021.
In the Asia-Pacific region, major Travel & Tourism markets like Thailand and Japan recorded huge losses in international spending, resulting in both markets — in fifth and eighth places, respectively, before the pandemic — completely dropping out of the top 20 in 2021.
According to WTTC forecasts, business travel worldwide is expected to grow by more than 41% this year. In the next 10 years, it predicts that business travel could grow by an average of 5.5% per year and may recover more quickly in the Asia-Pacific region.
The WTTC forecasts that by 2032, China could surpass the US and become the largest Travel & Tourism market in the world.