World Economic Forum report shows market segments driving tourism growth

A new report by the World Economic Forum has highlighted four segments that are emerging as significant tourism growth drivers, expanding at rates exceeding sector averages.

The report, developed in collaboration with Kearney, explores sustainable growth opportunities for the global visitor economy identifying that it is a crucial moment for an industry “at a crossroads”.

The report advises "the travel and tourism sector stands on the threshold of significant growth.

"By 2034, it is expected to expand 1.5 times faster than the global economy. This growth trajectory reflects the continued rise in global mobility and increased spending across different segments despite the sector’s already substantial size."

The Travel and Tourism at a Turning Point: Principles for Transformative Growth report highlights the four segments that are emerging as significant growth drivers, expanding at rates exceeding sector averages.

Travelling to attend live events, including music festivals and sports tourism, is growing at double digit rates. Sports tourism was valued at more than $609 billion in 2023 and is expected to reach more than $1.7 trillion by 2032, a 16% compound annual growth rate (CAGR).

Ecotourism is projected to expand at a CAGR of 14%, reaching $760 billion by 2032. Among the drivers are the rise in awareness of outdoor recreational activities and in interest in sustainable tourism.

Wellness tourism is projected to increase at 8% CAGR by 2034 as health consciousness grows, creating demand for experiences that treat mind and body, such as spa treatments, mindfulness retreats and wellness programs).

Meetings, incentives, conferences and exhibitions (MICE) is projected to grow at nine% CAGR between 2025 and 2030, from $870 billion in 2024, outpacing the rest of the business travel segment. This growth reflects the value of face-to-face interaction even as technology provides alternatives.

The report noted "these segments offer opportunities to develop specialised offerings for destinations and organisations, while potentially addressing seasonality challenges."

Evolving traveller profiles
According to the report, estimates suggest that by 2030 India and China will collectively account for more than 25% of international outbound travel.

It explains "with Indian travellers tripling and Chinese travellers doubling their current share, their preferences will shape the market.

"Simultaneously, Millennials and Generation Z will comprise most travellers, bringing in digital-native behaviours. They will continue to fuel demand for experiences and events, with most preferring live experiences over purchasing items and relying heavily on social media for inspiration."

It also advises "content creators and travel influencers have emerged as powerful intermediaries, shaping travel decisions and behaviours through their platforms, creating both opportunities and responsibilities for promoting sustainable, respectful tourism practices."

The report also noted that the bleisure sector was also continuing to grow.

Blended business and leisure travel is projected to expand at around 9% CAGR by 2032 as remote work polices enable location flexibility.

Such shifts are accompanied by evolving preferences, for example more than 50% of business travellers want more blended travel trips and in 2024 took at least two of them.

Click here to view the full report.

Images: Australia's annual Bluesfest (top, credit: Bluesfest) and a wellness retreat in Saudi Arabia (below, credit: Visit Saudi).