WTTC Reports Travel Emissions Dive

Travel Industry’s Climate Footprint Shrinks

The 24th Global Summit of the World Travel & Tourism Council (WTTC) in Perth (Boorloo), Western Australia, began with an update on its groundbreaking environmental footprint data. WTTC’s latest Environmental & Social Research (ESR), developed in partnership with the Ministry of Tourism of Saudi Arabia, shows that in 2023, Travel and tourism were responsible for 6.7% of global emissions, a decrease from 7.8% in 2019 when Travel and tourism were at their peak.

The research shows a significant achievement: The economic impact of the travel and tourism industry is growing faster than its environmental impact. Last year, the industry’s contribution to global GDP almost reached pre-pandemic levels at US$9.9 trillion, just 4% below the sector’s peak. However, in 2023, global greenhouse gas (GHG) emissions were 12% lower than the 2019 peak, with GHG intensity (emissions per unit of GDP) falling 8.4% during this period. This indicates that the sector’s growth is becoming more environmentally friendly.

“Our sector is proving that we can grow responsibly,” said WTTC President & CEO Julia Simpson. “We’re decoupling growth from emissions – Travel & Tourism is expanding economically while lowering its environmental footprint.  

“This is a defining moment, proving that innovation and sustainability go hand in hand in shaping the future of global tourism. However, while we are decoupling our sector’s growth from the increase in GHG, our aim is absolute reductions. We must accelerate this progress significantly to meet the Paris climate targets. We’re on the right track, but we need to up our game.”

The energy used to power travel and tourism operations is a major source of emissions. While there were some positive trends in 2023 compared to 2019, there are still significant opportunities to speed up the transition to green energy. The growth in renewable energy use and decreased reliance on fossil fuels have been relatively small, showing the need for more decisive action.

In 2023, the sector’s reliance on fossil fuel energy sources (oil, coal, and natural gas) dropped to 88.2% from 90% in 2019. The share of low-carbon energy sources (nuclear and renewables) increased from 5.1% in 2019 to 5.9% in 2023, reflecting ongoing efforts to reduce dependence on fossil fuels.

The revival of the global Travel & Tourism sector is reflected in the tax revenues collected by governments from the direct taxes paid by businesses in the industry. In 2023, total Travel & Tourism tax revenues reached US$3.32 trillion, accounting for 9.6% of the total global tax revenues. It is important for governments to utilize these additional revenues to reinvest in decarbonizing infrastructure, expanding renewable energies, and supporting businesses in their transition towards sustainability.