$12.5T Travel & Tourism Investment to Shape G20 by 2035

WTTC Report: $12.5 Trillion Travel & Tourism Investment Expected Across G20 by 2035

The World Travel & Tourism Council (WTTC) estimates that $12.5 trillion in Travel & Tourism investments in major economies worldwide will shape sector growth and competitiveness through 2035. These insights are from WTTC’s recent report, “Bridging the Gap: Travel & Tourism Capital Investment and Demand Growth Across the G20,” developed with Oxford Economics and unveiled at ITB Berlin.

The report indicates that demand for Travel & Tourism across G20 countries and Spain is forecasted to grow at an average of 3.3% per year over the next decade. Meanwhile, capital investment in the sector is expected to increase at a rate of 4.6% annually, suggesting that investment growth will outpace demand growth over the long term.

However, the report points out that timing will be crucial for this investment. In the short term, demand recovery is outstripping capital investment, resulting in a temporary gap between them.

Balancing Investment and Demand

During the early years of the forecast period, slower investment recovery compared to rising demand could strain tourism infrastructure in some destinations. This may impact accommodation capacity, transportation networks, and local services in areas experiencing significant visitor growth.

From around 2033 onwards, investment levels are expected to surpass demand growth. Overall, capital investment is projected to grow at a compound annual growth rate (CAGR) of 4.6% between 2025 and 2035, compared with 3.3% demand growth over the same period.

WTTC emphasises that aligning infrastructure growth with tourism demand will be essential to sustain balanced sector development.

Investment Trends in Major Economies

Investment patterns differ among G20 economies. Some nations are planning infrastructure expansion in anticipation of future demand, while others are gradually increasing expenditure to keep up with tourism growth.

Germany is projected to invest approximately US$543 billion in travel and tourism infrastructure by 2035, with an investment-to-demand growth ratio of 1.39. The investment is anticipated to enhance transport connectivity, visitor infrastructure, and tourism services.

Spain is also expected to boost investment in its sectors, with projections reaching US$349 billion by 2035. The country’s investment rate is estimated to grow at a pace 1.46 times faster than demand over the same period.

Long-Term Infrastructure Planning

Gloria Guevara, President and CEO of WTTC, said the coming decade will be important for infrastructure development in the Travel & Tourism sector. She noted that countries aligning investment with future demand are strengthening economic resilience and supporting long-term sector growth.

She also highlighted the role of transport connectivity, infrastructure upgrades and coordinated planning in supporting tourism development. WTTC emphasises the importance of cooperation between governments and the private sector to ensure investment supports future travel demand while contributing to economic development.

The report suggests that continued infrastructure investment will play a key role in supporting tourism growth across G20 economies while maintaining balanced development in destinations experiencing rising visitor numbers.