Tourism Rebounds in the Middle East, But Global Challenges Persist
The World Economic Forum's latest Travel & Tourism Development Index 2024 (TTDI) reveals that international tourist arrivals and the sector’s contribution to global GDP are expected to return to pre-pandemic levels this year. This recovery is driven by the easing of COVID-19 travel restrictions and a surge in pent-up demand.
High-income economies typically benefit from favourable conditions for travel and tourism development, such as robust business environments, dynamic labour markets, open travel policies, and strong transport and tourism infrastructure. Upper-middle-income economies like China, Indonesia, Brazil, and Türkiye have made significant strides.
Over 70 percent of countries that have improved their scores since 2019 are low- to upper-middle-income economies. Regions such as MENA and sub-Saharan Africa are among the most improved, with Saudi Arabia and the UAE ranking among the top 10 most improved economies from 2019 to 2024.
Despite these gains, significant investment is necessary to bridge the gap between developing and high-income countries. Leveraging natural and cultural assets sustainably could provide a pathway for tourism-led economic development in these regions.
The Middle East has shown exceptional recovery, with international tourist arrivals surpassing 2019 levels by 20 percent. Europe, Africa, and the Americas also display strong recovery, reaching around 90 percent of pre-pandemic levels in 2023.
Post-Pandemic Recovery
Globally, the tourism industry is on track to surpass pre-pandemic levels, fuelled by increased demand, more available flights, improved international openness, and heightened interest and investment in natural and cultural attractions.
However, recovery has been uneven. While 71 of the 119 ranked economies have improved their scores since 2019, the average index score is only 0.7 percent above pre-pandemic levels. The sector faces challenges including macroeconomic, geopolitical, and environmental risks, sustainability concerns, and technological advancements. Labour shortages, insufficient air route capacity, and other supply factors lag behind the surge in demand, exacerbated by global inflation, resulting in higher prices and service issues.
Addressing Global Challenges
The 2024 Global Risks Report by the World Economic Forum highlights various complex risks facing the travel and tourism sector, including geopolitical uncertainties, economic fluctuations, inflation, and extreme weather. Balancing growth with sustainability remains a critical issue due to high seasonality, overcrowding, and potential return of pre-pandemic emissions levels.
The report also underscores persistent concerns about equity and inclusion. Despite offering high-wage jobs, especially in developing countries, gender parity remains a significant challenge in regions like MENA and South Asia.
To address these challenges, the report suggests prioritizing actions such as leveraging tourism for nature conservation, investing in a skilled and inclusive workforce, strategically managing visitor behaviour and infrastructure, encouraging cultural exchange, and using the sector to bridge the digital divide.
If managed strategically, the travel and tourism sector, which has historically represented 10 percent of global GDP and employment, could become a key contributor to the well-being and prosperity of communities worldwide.
