The World Travel & Tourism Council’s (WTTC) recent global trends report reveals a resurgence in investment for the travel and tourism industry.
From 2010 to 2019, investment grew consistently at a compound annual growth rate of 4,3%, growing from $754,6 bn (R14trn) in 2010 to $1,1trn (R20,5trn) in 2019.
The global pandemic in 2020 then led to a 24% decline and a further 8% dip in 2021.
Nevertheless, 2022 has marked a revival of investment in the industry, with travel and tourism investment surging to $856bn (R15,9trn), up 11,1% from the previous year.
In Asia Pacific and Africa, investment grew by 161% between 2000 and 2022, while Europe and the Middle East have shown lesser growth.
The US was reported to be leading in absolute figures in 2022 with $213bn (R3,9trn), showing industry recovery.
China followed with $146bn (R2,7trn) investment in 2022, and Saudi Arabia was next with total investment of $42bn (R782bn).
“Investment is not just a numbers game; it is the heartbeat of global connectivity and economic revival,” said Julia Simpson, WTTC President. “Despite the setbacks from the pandemic, 2022’s growth is a promising sign of what’s to come.”
WTTC predicts 11,5% growth in investment in 2023 to $955bn (R18,5trn) and a return to pre-pandemic levels by 2025.
However, the report says the global hike in interest rates creates challenges for future investment.
