What a nearly $16 trillion travel economy means for your future vacation

Cameron Sperance

Anyone who has taken a trip this summer can tell the tourism sector is exploding with packed flights, soaring hotel rates and cruise ships buzzing with passengers.

Tourism remains the bright spot even in China, which is facing economic turmoil at the moment.

That kind of demand is expected to go only higher in the coming years. The World Travel & Tourism Council estimates the tourism economy will expand to become a $15.5 trillion industry by 2033, according to the WTTC's Travel & Tourism Economic Impact 2023 report .

That means an estimated 24 million new travel- and tourism-related jobs added to the sector over the next decade.

It's not all good news, however.

"Despite all this, the year ahead will not be without its challenges. Inflation, economic uncertainty, labour shortages and the climate crisis are limiting factors," WTTC president and CEO Julia Simpson noted in the report. "And as travel returns to its pre-COVID-19 peak, some businesses are struggling to keep pace with demand. Worldwide, we need strong efforts to increase capacity and connectivity, as well as action from both industry and governments to resolve staffing problems."

The state of tourism and the high cost of travel

The biggest travel economies aren't necessarily new faces: The U.S., China, Germany, the U.K. and Japan take the top five positions, respectively. But China is expected to overtake the U.S. in terms of travel economy size in the next decade, Simpson told Bloomberg this week .

That's unlikely to mean much in terms of your next vacation. What will, however, is that rising demand means hotel rates and airfare will only go higher.

Global leisure travel spending is expected to go from roughly $4 trillion last year to nearly $8 trillion in 2033.

Higher interest rates around the world mean it isn't as conducive to build new hotels as it was even just a few years ago. That means the hotel supply out there today is generally expected to remain about the same over the next few years in markets like the U.S., so the CEOs at companies like Hilton anticipate rates can go up simply from the case of there not being enough supply to meet traveler demands.

Bargains are still out there

Hotel supply not keeping up with growing demand doesn't mean you won't be able to find a discounted vacation over the next decade, especially in the near term.

A presentation at hotel data provider STR's recent Hotel Data Conference in Nashville noted hotels in Germany, Thailand, Malaysia and Japan haven't yet recovered to pre-pandemic performance levels. That could present an opportunity for better hotel rates, as owners look to woo back guests.

There's even potential opportunity for deals here in the U.S. There are signs of a flat summer in terms of hotel performance, and Americans heading abroad are largely to blame. But there are also fewer inbound travelers from abroad.

The same STR presentation noted there are about 1 million fewer international visitors to the U.S. each month this summer compared to 2019, while there are 200,000 more Americans heading abroad each month compared to pre-pandemic.

Further, Expedia indicates several fall travel deals out there. Offseason travel isn't a new concept for those looking for bargains, but it's something to consider even more in the years to come, considering swelling demand in peak travel periods like the summer.

Expedia reports airfare is down 20% to cities like Denver, Chicago, Tokyo and Florence, Italy, compared to summer prices. Beach destinations like the Outer Banks of North Carolina; Myrtle Beach, South Carolina; and Panama City Beach, Florida, have Vrbo vacation rentals priced at 25% below their summer rates.

Keep in mind: The offseason travel option isn't for everyone, especially families who plan their vacations around school schedules.

The Expedia report notes that 70% of couples with double income and no kids — sometimes known as "DINKs" — prefer traveling in the fall at times when occupancy rates are lower in popular cities like London, Paris and New York City.

Related reading:

  • Best hotel credit cards
  • When is the best time to book a hotel? Experts weigh in — and debunk a few myths
  • The best credit cards to reach elite status
  • A comparison of luxury hotel programs from credit card issuers
  • Which credit cards offer the most lucrative rewards for hotel stays?
  • The best hotel rewards programs in the world

Travel, Tourism & Hospitality

  • Total contribution of travel and tourism to GDP worldwide 2019-2033

Which countries record the highest travel and tourism contribution to GDP?

What are the most visited countries in the world, total contribution of travel and tourism to gross domestic product (gdp) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion u.s. dollars).

Additional Information

Show sources information Show publisher information Use Ask Statista Research Service

2019 and 2022

figures are in constant 2022 prices and exchange rates as of March 2023

The total contribution of travel and tourism to GDP reflects GDP generated directly by the travel and tourism sector plus its indirect and induced impacts.

Other statistics on the topic Tourism worldwide

Art & Culture

  • Monuments on the UNESCO world heritage list 2023, by type

Accommodation

  • Hotel room openings worldwide 2021-2024
  • Carbon footprint of international tourism transport worldwide 2005-2030, by type

Leisure Travel

  • Estimated revenue of leading OTAs worldwide 2022, by device
  • Immediate access to statistics, forecasts & reports
  • Usage and publication rights
  • Download in various formats

You only have access to basic statistics.

  • Instant access  to 1m statistics
  • Download  in XLS, PDF & PNG format
  • Detailed  references

Business Solutions including all features.

Statistics on " Tourism worldwide "

  • Travel and tourism: share of global GDP 2019-2033
  • Leading global travel markets by travel and tourism contribution to GDP 2019-2022
  • Global leisure travel spend 2019-2022
  • Global business travel spending 2001-2022
  • Number of international tourist arrivals worldwide 1950-2023
  • Number of international tourist arrivals worldwide 2005-2023, by region
  • Travel and tourism employment worldwide 2019-2033
  • Global hotel and resort industry market size worldwide 2013-2023
  • Most valuable hotel brands worldwide 2023, by brand value
  • Leading hotel companies worldwide 2022, by number of properties
  • Hotel openings worldwide 2021-2024
  • Countries with the most hotel construction projects in the pipeline worldwide 2022
  • Airports with the most international air passenger traffic worldwide 2022
  • Market value of selected airlines worldwide 2023
  • Global passenger rail users forecast 2017-2027
  • Daily ridership of bus rapid transit systems worldwide by region 2023
  • Number of users of car rentals worldwide 2019-2028
  • Number of users in selected countries in the Car Rentals market in 2023
  • Market size of museums, historical sites, zoos, and parks worldwide 2022-2027
  • Leading museums by highest attendance worldwide 2019-2022
  • Most visited amusement and theme parks worldwide 2019-2022
  • Selected countries with the most Michelin-starred restaurants worldwide 2023
  • Online travel market size worldwide 2020-2030
  • Most downloaded online travel agency apps worldwide 2022, by aggregated downloads
  • Market cap of leading online travel companies worldwide 2023
  • Leading online travel companies worldwide 2020-2022, by revenue CAGR
  • Leading online travel companies worldwide 2022-2023, by EV/EBITDA
  • Global travelers who believe in the importance of green travel 2022
  • Sustainable initiatives travelers would adopt worldwide 2022, by region
  • Airbnb revenue worldwide 2017-2023
  • Airbnb nights and experiences booked worldwide 2017-2023
  • Technologies global hotels plan to implement in the next three years 2022
  • Hotel technologies global consumers think would improve their future stay 2022
  • Travel and tourism revenue worldwide 2019-2028, by segment
  • Distribution of sales channels in the travel and tourism market worldwide 2018-2028
  • Inbound tourism visitor growth worldwide 2020-2025, by region
  • Outbound tourism visitor growth worldwide 2020-2025, by region

Other statistics that may interest you Tourism worldwide

  • Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
  • Basic Statistic Travel and tourism: share of global GDP 2019-2033
  • Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
  • Basic Statistic Global leisure travel spend 2019-2022
  • Premium Statistic Global business travel spending 2001-2022
  • Premium Statistic Number of international tourist arrivals worldwide 1950-2023
  • Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
  • Basic Statistic Travel and tourism employment worldwide 2019-2033
  • Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
  • Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
  • Basic Statistic Leading hotel companies worldwide 2022, by number of properties
  • Premium Statistic Hotel openings worldwide 2021-2024
  • Premium Statistic Hotel room openings worldwide 2021-2024
  • Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022
  • Premium Statistic Airports with the most international air passenger traffic worldwide 2022
  • Premium Statistic Market value of selected airlines worldwide 2023
  • Premium Statistic Global passenger rail users forecast 2017-2027
  • Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
  • Premium Statistic Number of users of car rentals worldwide 2019-2028
  • Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
  • Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Attractions

  • Premium Statistic Market size of museums, historical sites, zoos, and parks worldwide 2022-2027
  • Premium Statistic Leading museums by highest attendance worldwide 2019-2022
  • Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
  • Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
  • Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Online travel market

  • Premium Statistic Online travel market size worldwide 2020-2030
  • Premium Statistic Estimated revenue of leading OTAs worldwide 2022, by device
  • Premium Statistic Most downloaded online travel agency apps worldwide 2022, by aggregated downloads
  • Basic Statistic Market cap of leading online travel companies worldwide 2023
  • Premium Statistic Leading online travel companies worldwide 2020-2022, by revenue CAGR
  • Premium Statistic Leading online travel companies worldwide 2022-2023, by EV/EBITDA

Selected trends

  • Premium Statistic Global travelers who believe in the importance of green travel 2022
  • Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
  • Premium Statistic Airbnb revenue worldwide 2017-2023
  • Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
  • Premium Statistic Technologies global hotels plan to implement in the next three years 2022
  • Premium Statistic Hotel technologies global consumers think would improve their future stay 2022
  • Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
  • Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
  • Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
  • Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Further related statistics

  • Basic Statistic Global travel and tourism expenditure 2019-2022, by type
  • Basic Statistic Forecast: economic contribution of travel and tourism to GDP worldwide 2020-2029
  • Premium Statistic Leading countries in the MEA in the Travel & Tourism Competitiveness Index 2018
  • Premium Statistic Leading European countries in the Travel & Tourism Development Index 2021
  • Premium Statistic Sub-Saharan African countries in the Travel & Tourism Competitiveness Index 2019
  • Premium Statistic Inbound tourism of visitors from Denmark to the Netherlands 2013-2019
  • Premium Statistic Inbound tourism of visitors from Russia to the Netherlands 2013-2018
  • Basic Statistic Most popular cities for city break trips in Poland 2020
  • Basic Statistic Tourism: Scottish Household Final Consumption Expenditure 2000-2017
  • Premium Statistic Countries with the least restrictive visa requirements worldwide 2014
  • Premium Statistic Evaluation of the tourism infrastructure in the Nordic countries 2021
  • Premium Statistic Price competitiveness ranking of the Nordic countries 2017
  • Basic Statistic Tourism share of GDP in El Salvador 2019-2021
  • Basic Statistic Tourism share of GDP in Costa Rica 2019-2021
  • Basic Statistic Foreign departures from the Soviet Union1970-1989, by destination

Further Content: You might find this interesting as well

  • Global travel and tourism expenditure 2019-2022, by type
  • Forecast: economic contribution of travel and tourism to GDP worldwide 2020-2029
  • Leading countries in the MEA in the Travel & Tourism Competitiveness Index 2018
  • Leading European countries in the Travel & Tourism Development Index 2021
  • Sub-Saharan African countries in the Travel & Tourism Competitiveness Index 2019
  • Inbound tourism of visitors from Denmark to the Netherlands 2013-2019
  • Inbound tourism of visitors from Russia to the Netherlands 2013-2018
  • Most popular cities for city break trips in Poland 2020
  • Tourism: Scottish Household Final Consumption Expenditure 2000-2017
  • Countries with the least restrictive visa requirements worldwide 2014
  • Evaluation of the tourism infrastructure in the Nordic countries 2021
  • Price competitiveness ranking of the Nordic countries 2017
  • Tourism share of GDP in El Salvador 2019-2021
  • Tourism share of GDP in Costa Rica 2019-2021
  • Foreign departures from the Soviet Union1970-1989, by destination

AFAR Logo - Main

These Trends Will Define How We Travel in 2023

From the economy to the environment, from health and wellness to food and friends, these factors are influencing how we travel the world this year..

  • Copy Link copied

Italy's Polignano a Mare

Instead of following the White Lotus fans to Sicily this year, why not head to Italy’s Polignano a Mare, which topped Booking.com’s list of most welcoming cities in the world.

Photo by Vincenzo de Simone/Unsplash

When we look at 2023, several factors will shape how we travel this year. Of course, there’s the economy and concerns about a possible recession. Add to that the rising cost of, well, just about everything due to inflation, and travelers are keeping closer tabs on their spending. But financial concerns aside, consumer surveys indicate that after nearly three years of being hampered by the pandemic, travelers aren’t holding back and are planning and booking trips with a vengeance this year.

As they plan their adventures, people are also looking to reconnect—with friends, family, and the world. And as they travel through that world, they are doing so with greater awareness of their impact on it. Health, wellness , and food are also top of mind as we think more intently about our mental health and overall well-being .

Given all of that, these are the six trends that will define how we travel in 2023.

In search of lesser-known locales

Street scene in Hualien City on the east coast of Taiwan

Booking.com rated Hualien City on the east coast of Taiwan as one of the world’s most welcoming cities.

Photo by Su San Lee/Unsplash

Travelers are ditching beaten paths for alternative, under-the-radar destinations. Whether it’s due to a heightened awareness of the worrying effect overtourism is having on some of the world’s most visited places, or to simply wanting to unearth a destination that feels fresh, new, and unique to the discoverer, either way, travelers in 2023 will be flocking to hidden gems. Think Lyon over Paris for food lovers and volcanic hikes in the Azores instead of Hawai‘i. According to Skift Research , 70 percent of millennials and Gen Zs report that they will be seeking travel experiences their family and friends haven’t heard of.

Airbnb’s “anywhere” searches—just add dates and the number of guests for far-flung suggestions—and filters for lodgings labeled off-the-grid, shepherd’s huts, and “OMG!” are tools that can help explorers find that next travel surprise. Another way to search for alternative destinations is through Booking.com’s new list of the world’s most welcoming cities (based on hotel and transit reviews), which includes an intriguing lineup of places such as Polignano a Mare, Italy; Hualien City, Taiwan; and Klaipeda, Lithuania.

Wellness that focuses on the healing benefits of nature

Exterior of Forestis, a boutique wellness lodge in Italy’s Dolomites, surrounded by forest

Forestis, a boutique wellness lodge in Italy’s Dolomites, channels ancient forest reverence.

Photo by Jeremy Austin/Forestis

The pandemic sent travelers fleeing to the wilds—or at least local parks—for solace in naturally socially distanced settings, while also triggering a new appreciation for the physical and mental health benefits of switching off and smelling the roses. We’ve come to recognize that nature is not just a pretty view, but a soul-restoring, endorphin-eliciting, stress-relieving outlet. Consequently, biophilic—or nature-loving—design can be found everywhere from the future Pittsburgh International Airport expansion , where baggage claim connects to outdoor gardens, to Ambiente, a Landscape Hotel in Sedona, opening this month with accommodations in 40 glass-walled cubes for maximum immersion in Arizona’s high desert.

Forest bathing , a practice that derives from the Japanese shinrin-yoku , or meditative walks in nature, and actual bathing are being integrated into back-to-basic wellness treatments and experiences . Commune with nature at Forestis , a boutique wellness lodge in Italy’s Dolomites, which channels ancient forest reverence in its Druid-inspired Wdya movement techniques , and alternate between hot pools, cold dips, and sauna visits at the new World Spa in New York City, a true urban sanctuary.

The rise of the thrifty traveler

A tent in a forest

Why buy brand-new gear when you can rent or buy gently used equipment for camping and other gear-intensive outdoor adventures?

Photo by Cristofer Maximilian/Unsplash

Whether it’s the pinch of an inflationary economy, a green rejection of consumerism, or the only way to slake wanderlust, travelers will venture boldly with smaller budgets. The virtues of thrift have already shown up in the stats on resale clothing—the secondhand apparel market is projected to grow three times faster than retail by 2026, according to the online reseller ThredUp . Travelers can now buy used Patagonia ski jackets at recent online startups like Out&Back Outdoor , rent camping equipment rather than buying it through outfitters like Arrive Outdoors , and see the world at bargain rates through growing hostel-meets-coworking brand Selina . In a survey, Hotels.com found nearly a quarter of global travelers plan to be more frugal in 2023.

Travelers will have more ecofriendly options

Electric car charging in a parking garage

We can expect to start seeing more electric vehicles being offered by rental car agencies this year and beyond.

Photo by Michael Fousert/Unsplash

In 2023, the travel industry is finally starting to walk the talk on its climate goals. The vast majority of consumers (90 percent) are now looking for sustainable options when traveling, according to a survey of 11,000 global travelers conducted last year by Expedia Group Media Solutions. Half said they would pay more to take a sustainable trip. That’s a sizeable demand, and the industry is finally (really) working to meet it. Actors like England-based room2 hotels are modeling innovations like “whole life net zero” that accounts for emissions during construction and eventual demolition. Big-player Marriott International plans to implement a search filter for its hotels this year to identify those that are sustainable. G Adventures publishes a “ripple score” for each trip based on the amount of money that stays in a destination, which factors in things like local sourcing for food.

J. D. Power, which surveys consumers on rental car satisfaction, predicts that car rental agencies will offer more electric vehicles this year, in part responding to governmental financial incentives and in part to appeal to more environmentally focused renters. Decarbonizing aviation remains a more distant goal—the waste-oil-derived sustainable aviation fuel (SAF) is key to making the industry net-zero carbon-producing by 2050, but greater investment in the technology is needed. Although airlines like Swiss are modeling hydrodynamic fuselage skin to reduce drag, and we will surely continue to see a parade of innovations in air travel. Actions like France’s ban on domestic flights that are 2.5 hours or less are pushing more people to train travel , a better environmental option.

Vacation homes with chef-worthy kitchens

modern kitchen

Book a vacation rental and let your inner chef shine.

According to the World Food Travel Association , more than half of leisure travelers are food travelers, keen to experience food tours, cooking classes, winetastings, craft breweries, and local markets. All that provisioning from markets and wineries has led to increased demand for vacation homes to feature deluxe kitchens.

In a recent report, vacation rental company Vrbo found more than half of travelers seeking rentals with friends or family say cooking amenities are the most important criteria—often as a way to trim costs and to bond as a group. Airbnb’s new filter for “chef’s kitchens” turns up results like a Wisconsin lake estate with Viking kitchen appliances and a Spanish villa-style home in downtown Avila Beach along California’s Central Coast with a massive and airy gourmet kitchen. Vrbo said its top in-demand cooking amenities include outdoor kitchens, pizza ovens, and on-site gardens with fresh produce.

Hotels are creating unique spaces for gatherings and celebrations

Larger groups can book adjoining apartments at the Bode Nashville.

Larger groups can book adjoining apartments at the Bode Nashville.

Courtesy of Bode

In its 2023 trends report, Hilton noted a rise of intimate group travel to celebrate milestones regardless of the date; think a 40th birthday–level celebration but on your 42nd birthday. Travelers still have a lot of making up to do in 2023, and while vacation rentals often ban parties, hotels are creating spaces within their properties carved out specifically for small groups of family or friends to gather and celebrate.

“COVID expanded multigenerational travel to include any kind of group, and hotels are finding ways to encourage those connections by creating floors that can be totally closed off,” says Jack Ezon, the founder of the luxury travel agency Embark Beyond in New York City. The Atticus Hotel in Oregon’s Willamette Valley wine region reports booming business for its five-bedded Bunkhouse room . Bode hotels in Nashville and Chattanooga were designed with friends in mind with adjoining apartments. And groups of four can take a shared dorm room at The Pad in Silverthorne, Colorado.

Visit Monaco

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

Global Tourism Outlook in 2023

travel economy 2023

Global travel will show resilience in the face of the approaching economic downturn signalled by the pace of forward bookings and positive survey data. A continuing recovery in business travel, as well as some remaining built-up savings and pent-up demand, will support the ongoing travel recovery.

Nevertheless, the recession in the advanced economies will limit the pace of recovery in 2023. The US economy is set for a mild recession in 2023 but this will be countered by the strong dollar and accumulated savings. A looming recession and higher than previously anticipated inflation across Europe will erode earnings and weigh on consumer spending and tourism demand.

Staff shortages will continue to increase labour costs for the industry which will have to be, at least partially, passed on to consumers. Additional costs for travel will also feed through from higher energy prices and especially jet fuel prices.

Mass outbound tourism from China is expected to resume in the second half of 2023, although significant uncertainty remains around this timing.

The resumption of Chinese travel will contribute to the recovery of long-haul travel market share in 2023. The absence of Chinese outbound demand beyond this would be a major blow for the travel & tourism industry and for destinations worldwide.

There remains strong pent-up demand for cruise operations supported by bookings data which suggest that increased capacity will be filled. However, there will be increased deployment challenges and pricing pressure for cruise lines.

travel economy 2023

Related Posts

Cruise - tourism economics

Cruise Intelligence Platform

The new Cruise IP database, available from Tourism Economics, is designed to help understand the challenges facing the cruise sector as activity is restarting with higher capacity.

Global City Travel

Global City Travel

Detailed and comparable inbound and outbound travel intelligence for 300+ cities globally.

business man at the airport with an airplane in the background

Global Travel Service

Detailed travel and tourism market trends and forecasts for 185 countries globally.

Select to close video modal

Select to close video modal Play Video Select to play video

website logo

  • Sustainability

Tourism-driven growth to propel global economy in 2023

' src=

The global economic growth is expected to remain subdued in 2023 and 2024 due to a variety of factors, but the International Monetary Fund has raised its growth forecast for the global economy to 3%, marking a 0.2% increase from its earlier projection in April. This slight improvement is attributed in part to a rise in post-pandemic travel, as noted in the latest economic review by the IMF . This positive trend is further supported by a robust job market and a flourishing services sector.

In May, the World Health Organisation (WHO) declared that the coronavirus pandemic no longer constitutes a global health emergency. However, the reverberations of the pandemic’s aftermath continue to be felt, as emphasised by Pierre-Olivier Gourinchas, the chief economist of the IMF. The initial three months of 2023 exhibited remarkable resilience in demand for services, outdoor activities, and travel and tourism.

READ | Gender-inclusive trade key to resilient global economy

The engine of growth is notably powered by nations recognised for their appeal to tourists. While manufacturing-centric countries have also experienced growth, it has been slightly less pronounced compared to the tourism sector. Recent data from the International Air Transport Association (IATA) indicates that global air traffic in May sustained its recovery, reaching 96.1% of pre-pandemic levels.

Nonetheless, the optimism associated with tourism-driven growth might wane in the upcoming months. Certain economies heavily reliant on tourism in southern Europe face limited room for further recovery, compounded by the adverse impacts of climate change. This region has been particularly devastated by wildfires.

Risks for global economy

Elevated consumer prices and heightened interest rates continue to cast a shadow over economic growth, particularly for developed nations. The risk profile remains elevated, with higher interest rates eroding consumer purchasing power, thus constraining growth prospects. To curb economic fervour, banks have increased interest rates, which now stand at their highest since the global financial crisis of 2008. Both the United States Federal Reserve and the European Central Bank are poised to raise borrowing costs again this week.

The global drive to combat inflation through policy tightening, including measures taken by the Reserve Bank of India, has led to an increase in borrowing costs, thereby restraining economic activity. The IMF underscores that the impact of elevated interest rates extends to public finances, disproportionately affecting poorer countries grappling with elevated debt burdens.

In addition, China’s fragile economic recovery looms as a significant risk. Ongoing debt issues in China’s property market contribute to ongoing uncertainty, as the country slowly recuperates from the pandemic.

Looking ahead, the global economic outlook is expected to remain hindered by the aftermath of the COVID-19 pandemic and the Ukraine crisis triggered by Russia’s invasion. The trajectory of China’s economic health, the spectre of inflation, and the elevated cost of borrowing are also among the paramount challenges confronting the global economy. This outlook falls short of the 3.8% average observed in the pre-pandemic years of 2000 to 2019.

Engines of global economic growth

In the year ahead, India and China are poised to lead in growth, while advanced economies, including Europe and the United States, are anticipated to expand at a more subdued pace. India’s growth is projected at 6.1% for 2023, reflecting a 0.2-percentage-point upward revision from the April estimate. This upward momentum can be attributed to a stronger-than-anticipated surge in domestic investment during the fourth quarter of 2022.

Several policy measures can bolster global economic growth. Governments worldwide should take proactive steps to combat inflation, while central banks in economies contending with persistent core inflation should maintain a restrictive stance until signs of cooling underlying inflation become evident. Premature easing before price pressures have sufficiently abated is cautioned against.

The IMF also advocates for the establishment of fiscal buffers, considering that fiscal deficits and government debt persist above pre-pandemic levels. Addressing this entails credible medium-term fiscal consolidation to restore budgetary flexibility and ensure sustainable debt levels. For economies with access to international markets, the pace of fiscal consolidation should be contingent on the strength of private demand.

SUBSCRIBE | Policy Circle Newsletter

Share this:

  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to print (Opens in new window)

World Travel & Tourism Council

  • Press Releases
  • Press Enquiries
  • Travel Hub / Blog
  • Brand Resources
  • Newsletter Sign Up
  • Global Summit
  • Hosting a Summit
  • Upcoming Events
  • Previous Events
  • Event Photography
  • Event Enquiries
  • Our Members
  • Our Associates Community
  • Membership Benefits
  • Enquire About Membership
  • Sponsors & Partners
  • Insights & Publications
  • WTTC Research Hub
  • Economic Impact
  • Knowledge Partners
  • Data Enquiries
  • Hotel Sustainability Basics
  • Community Conscious Travel
  • SafeTravels Stamp Application
  • SafeTravels: Global Protocols & Stamp
  • Security & Travel Facilitation
  • Sustainable Growth
  • Women Empowerment
  • Destination Spotlight - SLO CAL
  • Vision For Nature Positive Travel and Tourism
  • Governments
  • Consumer Travel Blog
  • ONEin330Million Campaign
  • Reunite Campaign

Reports-Banner

Economic Impact Research

  • In 2022, the Travel & Tourism sector contributed 7.6% to global GDP ; an  increase of 22%  from 2021 and only  23%  below 2019 levels.
  • In 2022, there were  2 2 million new jobs , representing a 7.9% increase on 2021, and only 11.4% below 2019.
  • Domestic visitor  spending  increased by 20.4%  in 2022, only 14.1% below 2019.
  • International visitor spending  rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Regional overview 2019

WTTC EIR Regional Overview 2019

Regional overview 2022

WTTC EIR Regional Overview 2022

Regional overview 2022 vs 2019

WTTC EIR Regional Overview 2022 vs 2019

Why conduct research?

From the outset, our Members realised that hard economic facts were needed to help governments and policymakers truly understand the potential of Travel & Tourism. Measuring the size and growth of Travel & Tourism and its contribution to society, therefore, plays a vital part in underpinning WTTC’s work.

What research does WTTC carry out?

Each year, WTTC and Oxford Economics produce reports covering the economic contribution of our sector in 185 countries, for 26 economic and geographic regions, and for more than 70 cities. We also benchmark Travel & Tourism against other economic sectors and analyse the impact of government policies affecting the sector such as jobs and visa facilitation.

Visit our Research Hub via the button below to find all our Economic Impact Reports, as well as other reports on Travel and Tourism.

X

  • Stand Up for Free Enterprise

The State of the Travel Industry in 2023: Current Trends and Future Outlook

Kentucky chamber ceo: we must protect the free enterprise system, how franchising can help fuel the american dream, microsoft president: responsible ai development can drive innovation, suzanne clark's 2024 state of american business remarks, rhythms of success: the free enterprise tune of a small business.

January 12, 2023

Featured Guest

Tony Capuano CEO, Marriott International, Inc.

Chip Rogers President & CEO, American Hotel & Lodging Association (AHLA)

As COVID-19 restrictions have continued to ease, the travel and hospitality industries have seen a resurgence in customers. Companies like Marriott have seen percentage increases in revenue and rate, even topping pre-pandemic levels.

During the U.S. Chamber of Commerce’s 2023 State of American Business event, Chip Rogers, President and CEO of the American Hotel and Lodging Association , and Tony Capuano, CEO of Marriott International, Inc. , sat down for a fireside chat. Read on for their insights on the post-COVID state of the travel industry, a shifting customer base, and the outlook for 2023 and beyond.

2022 Demonstrated the Power and Resilience of Travel

After declines amid the pandemic, 2022 brought about a positive recovery for the travel industry.

“[2022] reminded us of the power and resilience of travel,” said Capuano. “If you look at the forward bookings through the holiday season, [you’ll see] really strong and compelling numbers … so we’re really encouraged.”

“The only caveat I would give you about that optimism is, as you know, the booking windows are much shorter than we’ve seen them in a pre-pandemic world,” he added. “So those trends can change more quickly than we’re accustomed to."

The ‘Regular’ Customer Segments Are Shifting

At the start of pandemic recovery, industry leaders believed leisure travel would lead travel recovery, with business travel closely behind and group travel at a distant third, according to Capuano. While some of those predictions have held, others have shifted.

“Leisure [travel] continues to be exceedingly strong, and group [travel] has surprised to the upside,” he explained. “Business travel is perhaps the tortoise in this ‘Tortoise and the Hare,’ slow-and-steady recovery.”

However, Capuano noted customer segments are becoming less and less strictly defined.

“[There’s] this trend we've seen emerge over the pandemic of blended trip purpose … [where] more and more folks are combining leisure and business travel,” he said. “If this has staying power, I think it’s absolutely a game changer, as we get back to normal business travel and hopefully maintain that leisure travel.”

To accommodate this shifting demand, Marriott has focused on expanding offerings to accommodate both the business and leisure sides of travelers’ trips.

“[We’ve had] a very big focus on [expanding bandwidth], so that if [we’ve] got 300 rooms full of guests on Zoom calls simultaneously, we’ve got the bandwidth to cover it,” Capuano added. “[We’re also] being more thoughtful about fitness, leisure, and food and beverage offerings — and having the flexibility to pivot those offerings as somebody sheds their business suit on Thursday and changes into shorts and flip flops for the weekend.”

2023 Offers Hope for Continued Growth in the Travel and Hospitality Sectors

As the travel and hospitality sectors continue to grow and shift in the post-pandemic era, Capuano shared reasons for optimism in 2023.

“Number one, it's our people,” he emphasized. “When you see their passion, their enthusiasm, their resilience, their creativity, and just how joyful they are to have their hotels full again … it's hard not to be filled with optimism.”

“If you look at how far the industry has come over the last few years,” Capuano continued, “any lingering doubts folks may have had about the resilience of travel — and about the passion that the general public has to explore cities and countries — it's hard not to be excited about the future of our industry.”

  • Post-Pandemic Work

From the Series

State of American Business

View this online

U.S. flag

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

GSA Logo

  • Explore sell to government
  • Ways you can sell to government
  • How to access contract opportunities
  • Conduct market research
  • Register your business
  • Certify as a small business
  • Become a schedule holder
  • Market your business
  • Research active solicitations
  • Respond to a solicitation
  • What to expect during the award process
  • Comply with contractual requirements
  • Handle contract modifications
  • Monitor past performance evaluations
  • Explore real estate
  • 3D-4D building information modeling
  • Art in architecture | Fine arts
  • Computer-aided design standards
  • Commissioning
  • Design excellence
  • Engineering
  • Project management information system
  • Spatial data management
  • Facilities operations
  • Smart buildings
  • Tenant services
  • Utility services
  • Water quality management
  • Explore historic buildings
  • Heritage tourism
  • Historic preservation policy, tools and resources
  • Historic building stewardship
  • Videos, pictures, posters and more
  • NEPA implementation
  • Courthouse program
  • Land ports of entry
  • Prospectus library
  • Regional buildings
  • Renting property
  • Visiting public buildings
  • Real property disposal
  • Reimbursable services (RWA)
  • Rental policy and procedures
  • Site selection and relocation
  • For businesses seeking opportunities
  • For federal customers
  • For workers in federal buildings
  • Explore policy and regulations
  • Acquisition management policy
  • Aviation management policy
  • Information technology policy
  • Real property management policy
  • Relocation management policy
  • Travel management policy
  • Vehicle management policy
  • Federal acquisition regulations
  • Federal management regulations
  • Federal travel regulations
  • GSA acquisition manual
  • Managing the federal rulemaking process
  • Explore small business
  • Explore business models
  • Research the federal market
  • Forecast of contracting opportunities
  • Events and contacts
  • Explore travel
  • Per diem rates
  • Transportation (airfare rates, POV rates, etc.)
  • State tax exemption
  • Travel charge card
  • Conferences and meetings
  • E-gov travel service (ETS)
  • Travel category schedule
  • Federal travel regulation
  • Travel policy
  • Explore technology
  • Cloud computing services
  • Cybersecurity products and services
  • Data center services
  • Hardware products and services
  • Professional IT services
  • Software products and services
  • Telecommunications and network services
  • Work with small businesses
  • Governmentwide acquisition contracts
  • MAS information technology
  • Software purchase agreements
  • Cybersecurity
  • Digital strategy
  • Emerging citizen technology
  • Federal identity, credentials, and access management
  • Mobile government
  • Technology modernization fund
  • Explore about us
  • Annual reports
  • Mission and strategic goals
  • Role in presidential transitions
  • Get an internship
  • Launch your career
  • Elevate your professional career
  • Discover special hiring paths
  • Events and training
  • Agency blog
  • Congressional testimony
  • GSA does that podcast
  • News releases
  • Leadership directory
  • Staff directory
  • Office of the administrator
  • Federal Acquisition Service
  • Public Buildings Service
  • Staff offices
  • Board of Contract Appeals
  • Office of Inspector General
  • Region 1 | New England
  • Region 2 | Northeast and Caribbean
  • Region 3 | Mid-Atlantic
  • Region 4 | Southeast Sunbelt
  • Region 5 | Great Lakes
  • Region 6 | Heartland
  • Region 7 | Greater Southwest
  • Region 8 | Rocky Mountain
  • Region 9 | Pacific Rim
  • Region 10 | Northwest/Arctic
  • Region 11 | National Capital Region
  • Per Diem Lookup

City Pair Program (CPP)

The OMB-designated Best-in-Class City Pair Program procures and manages discounted air passenger transportation services for federal government travelers. At its inception in 1980 this service covered only 11 markets, and now covers over 13,000 markets. Today, CPP offers four different contract fares.

Fare finder

  • Search for contract fares

Note: All fares are listed one-way and are valid in either direction. Disclaimer - taxes and fees may apply to the final price

Taxes and fees may apply to the final price

Your agency’s authorized travel management system will show the final price, excluding baggage fees. Commercial baggage fees can be found on the Airline information page.

Domestic fares include all existing Federal, State, and local taxes, as well as airport maintenance fees and other administrative fees. Domestic fares do not include fees such as passenger facility charges, segment fees, and passenger security service fees.

International

International fares do not include taxes and fees, but include fuel surcharge fees.

Note for international fares: City codes, such as Washington (WAS), are used for international routes.

Federal travelers should use their authorized travel management system when booking airfare.

  • E-Gov Travel Service for civilian agencies.
  • Defense Travel System for the Department of Defense.

If these services are not fully implemented, travelers should use these links:

  • Travel Management Center for civilian agencies.
  • Defense Travel Management Office for the Department of Defense.

Contract Awards CSV

Download the FY24 City Pair Contract Awards [CSV - 1 MB] to have them available offline. The file updates after 11:59 pm Eastern Time on standard business days. Previous fiscal year contract awards can be found on the Fiscal documents and information page . To read more about the contract award highlights, please see our Award highlights .

Instructions for the FY24 CSV file

All fares are listed one-way and are valid in either direction. In the CSV file, Origin and Destination are in alphabetical order regardless of travel direction. The Origin is the airport code (domestic travel) or city code (international travel) that comes first alphabetically and the Destination is the airport or city code that comes second alphabetically.

For example, you are traveling from Washington, DC to London, England. You know the city codes are WAS and LON respectively. The city code LON comes first alphabetically and WAS comes second alphabetically. To find the contract fares, you filter:

City Pair Program benefits and info

CPP offers government travelers extra features and flexibility when planning official travel, in addition to maintaining deep program discounts. These include:

  • Fully refundable tickets.
  • No advance purchase required.
  • No change fees or cancelation penalties.
  • Stable prices which enables accurate travel budgeting.
  • No blackout dates.
  • Fares priced on one-way routes, permitting agencies to plan multiple destinations.

GSA Best-in-class logo

CPP is a mandatory use, government-wide program, designated as a Best-In-Class procurement by OMB. The program delivers best value airfares, and ensures federal agencies effectively and efficiently meet their mission.

CPP saves the federal government time and money by maintaining one government-wide air program. At the acquisition level CPP delivers data analysis, compliance, and uses strategic sourcing to optimize its service.

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

travel economy 2023

16 Tips to Make Economy Seating More Comfortable

  • Stay hydrated and energized by drinking plenty of water and bringing healthy snacks on board. Avoid alcohol and sugary drinks.
  • Utilize personal space and be considerate of fellow passengers by avoiding placing belongings on extra seats or using someone else's seat as a footrest.
  • Bring entertainment like books, music, or games to pass the time, and bring noise-canceling headphones to block out cabin noise. Don't forget to bring a sweater to stay warm in chilly air conditioning.

Flying economy class can be uncomfortable, but some passengers can make it feel like first class . The truth is explorers can use simple tips and tricks to make the economy flight more comfortable. Some of the tips on making the airplane seat more comfortable are common, while others are more in-the-know hacks.

This article has tips for making economy seating more comfortable, so visitors can enjoy a pleasant flight without compromising their budget — but there are some ways to upgrade the airplane seat . From selecting the right seat to packing cleverly, these tips will help travelers get the most out of their economy flight.

UPDATE: 2023/10/15 20:58 EST BY LUANA FERREIRA

More Tips To Make Economy Flights More Comfortable For Travelers!

Economy flights aren't always comfortable, but there are many ways travelers can make it easier. This list was updated and expanded to bring more tips to make economy seats more comfortable. Stay comfy, and safe travels!

RELATED: 10 Tips For For Booking The Cheapest Flight Any Time You Travel

Practice Deep Breathing And Relaxation Techniques

Practicing deep breathing and relaxation techniques can significantly enhance comfort during travel. Deep, controlled breaths promote relaxation by calming the nervous system and reducing stress. Techniques like diaphragmatic breathing or guided meditation help maintain a steady oxygen flow, easing muscle tension.

This practice can alleviate anxiety, improve mental clarity, and enhance well-being. Incorporating deep breathing into your journey encourages a more peaceful and enjoyable travel experience, making it a valuable tool for any traveler, especially in the confines of economy class.

Another breathing technique to relax is alternate breathing between nostrils.

Avoid Caffeine and Alcohol

Avoiding caffeine and alcohol during travel can enhance a more comfortable experience. Both substances can lead to dehydration, disrupt sleep patterns, and increase feelings of restlessness. Caffeine is a diuretic, which can lead to frequent restroom trips and potential dehydration, while alcohol can worsen dehydration and disrupt the body's natural sleep cycle.

By abstaining from these beverages, travelers are more likely to stay hydrated and maintain a more regular sleep pattern. Additionally, avoiding these substances can help regulate energy levels and promote a more balanced mood throughout the trip.

Travelers should remember that caffeine is present in many drinks: energetic drinks, decaf coffee, chocolate, and green tea are some examples.

Select A Good Seat

Sometimes travelers can be lucky enough to get an upgrade, but if they’re stuck in economy class, they should select a good seat. If the airline allows, book a seat near the back of the plane where there’s more legroom. Or if going for a window seat, choose one in the first row to have more space.

Besides, this position is usually the most spacious and can provide extra legroom. However, before booking a seat, visitors should double-check with the airline if their preferred seat is available.

Furthermore, good seats are usually in the middle of the plane – that way, travelers won’t be affected by turbulence and can avoid noisy engines.

Bring Your Pillow And Blanket

Dedicated travelers should always carry a pillow and blanket to make their economy seats more comfortable . Comfy pillows are essential if visitors want to rest or sleep during the flight. And blankets will keep them warm and protect them against cold drafts.

Blanket sets are usually available in different materials, such as fleece or cotton, and come in various colors. Packing a small blanket will help explorers save money while keeping them warm and cozy in the cabin.

Moreover, travelers should bring a small neck pillow to support their head and neck if they prefer to sleep on their side.

Wear Comfortable Clothes

Sitting in economy seating for long periods can be uncomfortable, so travelers should wear comfy clothes. Loose-fitting garments made from breathable fabrics are ideal for flights. Wearing layers is also a great idea, as it allows explorers to adjust their clothing depending on the temperature in the cabin.

Nonetheless, travelers should avoid wearing tight clothes and high heels; instead, they should opt for comfy sneakers or sandals.

Additionally, don’t forget to bring a light jacket or scarf – visitors can feel cozy and protected against cabin drafts.

Use The Tray Table For Extra Legroom

When seated in economy class, travelers can use the tray table for extra legroom. Instead of folding it down, explorers should put the tray table flat against the seat. This will give them extra space to stretch their legs, and they can also use it as an improvised footrest.

The tray table can help store books, an iPad, or a laptop during the flight. Just make sure to bring a small cushion to put on the tray table – this will make it more comfortable for travelers’ legs.

Related: 18 Surprising Things That Aren't Allowed On A Plane (10 Shouldn't Be)

Choose Aisle Seats

Picking aisle seats on an economy flight will give travelers more room to stretch their legs and move around. Besides, it’s easier for them to get up and go to the restroom without disturbing other passengers .

Also, aisle seats are usually closer to the bathroom, so explorers won’t have to walk far when they need to use it.

Before picking an aisle seat, travelers should check if there’s a galley or a bulkhead behind it – this could be uncomfortable during the flight.

Pack Lightly

Saving space in the cabin is essential for economy flights, so travelers should pack lightly. Before packing, explorers should make a checklist of the items they need. That way, visitors can be sure they have the right clothes and toiletries for their journey.

Moreover, travelers should avoid bringing large suitcases or backpacks. Instead, they should opt for a light bag stored in the overhead compartment. This way, explorers will save space in the cabin and make sure their journeys are comfortable.

A good decision is searching for tips for minimalist packing that actually works .

Bring An Eye Mask And Ear Plugs

Economy cabin noise can be overwhelming, so it’s essential to block out the sounds during flights. That’s why travelers should bring an eye mask and earplugs. Visitors can enjoy a peaceful flight even with the noise from the engines or other passengers.

Also, earplugs are essential if explorers want to avoid eavesdropping on other conversations. That way, they can keep their peace and privacy while on board. Moreover, if visitors need a quick nap, the eye mask and ear plugs will help them relax and peacefully drift away.

Noise-canceling headphones can be the best friend of a regular traveler. They make the journey much easier.

Stay Hydrated And Energized

Visitors should stay hydrated and energized while on board. Drinking plenty of water will help travelers avoid dehydration, which can cause headaches and fatigue. Also, visitors can bring snacks to keep their energy levels up during the flight.

Visitors should bring healthy snacks such as energy bars or nuts. That way, they can stay energized and cozy in the cabin.

Explorers should avoid drinking alcohol or sugary drinks, as these can make them feel more tired in the cabin.

Utilize Personal Space

By understanding the concept of personal space, passengers can make sure they don’t disturb other travelers. Explorers should avoid placing their belongings on the seat next to them or in the aisle. Also, visitors should avoid using someone else’s seat as a footrest.

Additionally, visitors should stay in their seats and not lean over into the next person’s area. That way, they can ensure they don’t interfere with the comfort of their fellow passengers. Moreover, keeping to one’s own space will help explorers stay comfortable during the flight.

Related: 10 Things To Know When Traveling From Miami To The Bahamas By Plane

Bring Entertainment To Pass Time

Explorers should bring some entertainment to make time pass faster. Visitors can read, listen to music, watch movies, or play computer games. This way, they can keep themselves busy and make the flight less boring.

Also, visitors should remember to bring their headphones or earbuds . That way, they can enjoy their music without disturbing other passengers in the cabin.

Visitors should avoid playing video games with loud sound effects. That way, they can ensure the comfort and peace of their fellow travelers.

Bring A Sweater

Another tip to make economy flights more comfortable is to bring a sweater. The air conditioning can get very chilly during the flight (especially when one is trying to sleep). While it can be easy to just dress up in T-shirts and shorts during the summer, just remember that weather has no bearing on a flight! Take a sweater (and long pants) to avoid being cold.

Wearing dressing layers and socks and bringing a blanket can help to mitigate the colder temperatures in a plane.

Related: Don't Like Flying? Here Are The Longest Flights In The World

Bring A Full Set Of Headphones

Airplanes can be quite noisy - especially behind the engines - where the economy seats are located. One great way to make economy flights more comfortable is to bring a good pair of noise-canceling headphones. The cheap headphones the airlines normally give out are of very bad quality.

Book An Exit Row Seat

Airplanes are designed with safety in mind, and they have a number of emergency exits along the body of the aircraft. These rows normally have extra legroom (to facilitate the evacuation of the aircraft). These rows are a great option for those looking for extra legroom to stretch out and relax (and especially for taller folks out there).

Bring A Snack Onboard

There is typically no need to buy snacks on long-haul economy flights. But often, no refreshments are served on short-haul economy flights, and passengers are typically not permitted to bring their own hot beverages. Still, passengers can bring their own snacks on the aircraft (so long as they get through security). Alternatively, splurge a little and buy an in-flight beverage and snack.

16 Tips to Make Economy Seating More Comfortable

3 ways Russia's war-time economy is set to weaken after a surprisingly strong 2023

  • Russia's economy is bound to weaken in 2024, researchers at Finland's central bank said.
  • That's because Moscow's surprising growth spurt in 2023 isn't sustainable.
  • Russia is set to spend a record amount on its military this year, will which hinder growth.

Insider Today

Russia's economy is set to weaken this year, according to researchers from Finland's central bank.

Russia won't be able to maintain the surprisingly strong growth it saw, the Bank of Finland's Institute for Emerging Economies said in a recent report . Researchers at the institute are forecasting Russia's economic growth to slow to 2% this year, followed by 1% year-over-year growth in 2025 and 2026.

That's a stark contrast from what Russia saw last year, with its economy growing 3.6% , according to Russia's federal statistics service. But much of that growth was fueled by military spending amid the country's war against Ukraine, and there's a limit to how much that can continue to fuel its economy, the researchers said.

"With Russia already experiencing severe capacity constraints, growth this year is expected to decelerate. Russian economic growth in the years ahead will remain subdued and fuelled mostly by government spending. Russia's long-term potential growth rate, in particular, has been reduced by the shift to a wartime economy," the report said.

The report pointed to three areas of the Russian economy that could take a hit. 

Inflation could get worse

Russian central bankers will be challenged in their goal of bringing down high prices. Russian inflation came in at 5.9% for 2023, according to BOFIT data, well above the 4% price growth central bankers are shooting for.

Related stories

Russia's central bank has already hiked interest rates to 16% to reel in inflation, but efforts to control prices will be contradicted by robust military spending, which will stimulate price growth, the report said. 

"To finance the war effort, the Russian government is prepared to abandon earlier fiscal and monetary policies characterised by conservative budget rules and inflation targeting," the researchers said. "State spending will increase considerably in 2024 mainly due to war-related expenses, which will certainly hamper measures to bring down inflation levels," they later added.

Private consumption will slow

Russian consumers are unlikely to spend at the same pace they did last year. Even in its own budget plans, Russia is expecting demand in the public sector to sag in 2025 and 2026.

Private investment in the nation is unlikely to make up for that decline, the report added. High borrowing costs and risks stemming from the Ukraine war have put off investors, with Russia losing around $19 billion in foreign direct investments in 2022 alone, according to United Nations data.

"Continued high growth in 2025 and 2026 is very unlikely," researchers said of Russia's economy, though they noted that the outlook for private demand was dependent on its "military situation."

"Private consumption will continue to grow due to labour constraints, albeit at a slower pace," they later added.

Wages growth will ease

Salaries in Russia jumped last year as the country grappled with a worker shortage, but wage growth is likely to slow in 2024 as private consumption sags, the report suggested.

"The significant wage hikes of 2023 are unlikely to repeat this year and growth in private consumption slows down," researchers said.

Russia is struggling with a severe shortage of workers , which is one of the nation's "biggest bottle necks" to economic growth, the report added. Moscow had a deficit of nearly 5 million workers by the end of 2023, according to an estimate from the Russian Academy of Science's Institute of Economics.

"To achieve continuous growth significantly above the long-term potential growth rate will require redirection of capital investment to civilian uses along with significant productivity gains. This goal becomes all the more elusive due to the fact that the Russian population, and particularly the pool of young men available to the labour market, keeps shrinking," the report said. 

Other economists foresee a difficult future for Russia as the conflict in Ukraine drags on. At this point, Russia can't afford to win or lose the war , one European economist recently warned, as its economy is now too dependent on conflict in Ukraine to keep itself going strong without it.

Watch: The war in Ukraine by the numbers, one year later

travel economy 2023

  • Main content
  • Share full article

Advertisement

Supported by

Standing Up to China, Philippine Leader Courts New Network of Partners

Escalating tensions in the South China Sea, President Ferdinand R. Marcos Jr. says, are not only a regional issue, but a global one.

Two men walk on a red carpet followed by an official in uniform.

By Sui-Lee Wee and Camille Elemia

With China aggressively asserting its claims on the South China Sea, President Ferdinand R. Marcos Jr. of the Philippines spent his first year on the job beefing up Manila’s alliance with its oldest ally, the United States. Now he is shoring up support from a wider and new network of partners.

Mr. Marcos is adding a new intensity to his muscular foreign policy at a critical moment in his country’s territorial dispute with Beijing. Maritime clashes between Chinese and Philippine vessels have become more frequent in recent months.

In January, Mr. Marcos and the leaders of Vietnam, another country fighting off Chinese claims to the crucial waterway, pledged closer cooperation between their coast guards. This month, Mr. Marcos clinched a maritime cooperation deal with Australia. And this past week, he took his pitch to Europe.

“It has to be recognized that the South China Sea handles 60 percent of the trade of the entire world. So, it’s not solely the interest of the Philippines, or of ASEAN, or of the Indo-Pacific region, but the entire world,” Mr. Marcos said on Tuesday in Berlin, apparently referring to global maritime trade and using shorthand for the Association of Southeast Asian Nations.

Standing alongside Chancellor Olaf Scholz of Germany, Mr. Marcos, the first Philippine president to visit Germany in a decade, added, “That is why it’s in all our interest to keep it as a safe passage for all international commerce that goes on in the South China Sea.”

This flurry of diplomacy, analysts said, might ultimately help to deter China. But they also acknowledged that Beijing was going to continue doubling down on its territorial claims, increasing the risks of a conflict that could ultimately draw in the United States, the Philippines’ oldest treaty ally. Washington has repeatedly condemned Beijing’s actions and has vowed to come to the aid of Manila in the event of an armed conflict.

The foreign policy strategy adopted by Mr. Marcos, who took office in June 2022, is almost the opposite of the approach of his predecessor, Rodrigo Duterte. While Mr. Duterte spurned the West and courted China, Mr. Marcos has revived and cemented ties with traditional security partners like the United States and Japan. He has also cultivated new relations with the likes of Sweden and France, and his government has pushed for arms deals and military drills.

Tensions flared again this month when Chinese boats blocked the Philippine vessels off the Second Thomas Shoal, a contested reef 120 miles off the coast of the western province of Palawan. The confrontation culminated in Chinese and Philippine coast guard vessels colliding.

Mr. Marcos told reporters then there was no reason yet to invoke the mutual defense treaty with the United States.

China claims 90 percent of the South China Sea, some of it hundreds of miles from the mainland and in waters surrounding Vietnam, Malaysia, Brunei, Indonesia and the Philippines. In the past decade or so, China has asserted ever greater control over these waters, using two island chains called the Paracels and the Spratlys to expand its military footprint by building and fortifying outposts and airstrips.

The militarization of the Spratly Islands allowed China to maintain a round-the-clock presence in waters more than 500 miles from the coast of China. At another formation, the Scarborough Shoal, Chinese boats have repeatedly harassed Filipino fishing boats in an area that an international tribunal in The Hague had ruled was a traditional fishing ground of the Philippines, Vietnam and other nations. The Chinese presence also prevented Manila from fully exploring oil and gas deposits in the surrounding water.

China has blamed the Philippines for the frequent clashes in the South China Sea.

Wang Yi, China’s foreign minister, in December admonished the Philippines for “changing its policy stance, reneging on its commitments and continuing to provoke and cause trouble at sea.”

Mr. Wang also issued a warning: “If the Philippines misjudges the situation, insists on going its own way, or even colludes with malicious external forces to continue causing trouble and chaos, China will definitely safeguard its rights in accordance with the law and respond resolutely.”

Two weeks later, the Philippines announced that it had signed agreements with Britain and Canada to increase defense cooperation. They were part of 10 security agreements that Mr. Marcos has signed with seven countries since last year, according to a tally of public statements.

“China is basically pushing us closer to the United States and to the other countries that have already indicated their support, as far as Germany and as far as the Czech Republic,” said Renato Cruz De Castro, a professor of international studies at De La Salle University in Manila.

On Thursday, Petr Pavel, the president of the Czech Republic, said he was willing to cooperate with the Philippines in defense and cybersecurity, adding that his country “fully” supports Manila in the South China Sea.

“To us, South China Sea may seem to be far, far away, but if you take into account the percentage of share of world or global trade that passes through this area, any disruption of these routes would have an adverse impact on Europe, not only in the form of shortage of goods but also soaring prices,” Mr. Pavel told reporters at a joint news conference with Mr. Marcos. “Which is why we have to pay attention to this topic.”

New allies, Mr. De Castro said, are welcome because the Philippines cannot rely on the United States alone, especially if former President Donald J. Trump returns to power next year.

“The U.S. is simply — even Americans would say — so unstable right now, the political system is so volatile, look at what’s happening with the U.S. military assistance to Ukraine,” he said. “And I’m not saying that Trump would win, but there’s always uncertainty because of how unstable American domestic politics is.”

Another important calculus for Mr. Marcos, analysts said, is securing investments for the Philippines.

“That means that we can really be assertive, we can really protect the South China Sea interests without thinking of the economic backlash that China might impose on us,” said Aries A. Arugay, the chairman of the political science department of the University of the Philippines Diliman.

Even India, which has been silent on the South China Sea dispute for years, announced last June that it would provide loans with preferential rates to the Philippines for its military modernization. In August, both countries signed agreements to cooperate in the coast guard sectors.

Last week, when he was in Australia, Mr. Marcos warned that the constant clashes between Filipino and Chinese vessels have increased the risks of miscalculation.

“The potential for outright conflict is much higher now than it was before,” he said. “We worry in the Philippines because it could come from not a strategic decision by anyone saying, ‘OK, we’re going to war,’ but just by some servicemen making a mistake, or some action that’s misunderstood.”

An earlier version of this article misstated one site where Chinese boats harassed Philippine fishermen. It is the Scarborough Shoal, not the Spratly Islands.

How we handle corrections

Sui-Lee Wee is the Southeast Asia bureau chief for The Times, overseeing coverage of 11 countries in the region. More about Sui-Lee Wee

IMAGES

  1. Biz Travelers to See Travel Price Increases Through 2023

    travel economy 2023

  2. U.S. share of global travelers expected to decline through 2023: Travel

    travel economy 2023

  3. 2023 Travel Trends and Tips for Tourism Marketers

    travel economy 2023

  4. COVID-19: $1 Trillion Loss Could Set Global Tourism Industry Back 20

    travel economy 2023

  5. Chart: Where Tourism Gives The Biggest Economic Boost

    travel economy 2023

  6. 6 Key Travel Industry Growth Statistics

    travel economy 2023

COMMENTS

  1. America's Foreign Vacations Tell Us Something About the U.S. Economy

    The latter saw 8 percent more traffic from North America in June 2023 than in June 2019, based on airport data. "This year is just completely crazy," said Steeve Calvo, a tour guide in Paris ...

  2. What a nearly $16 trillion travel economy means for your future

    The World Travel & Tourism Council estimates the tourism economy will expand to become a $15.5 trillion industry by 2033, according to the WTTC's Travel & Tourism Economic Impact 2023 report. That means an estimated 24 million new travel- and tourism-related jobs added to the sector over the next decade. It's not all good news, however.

  3. Tourism outlook 2023

    Tourism outlook 2023. Global tourism arrivals will increase by 30% in 2023, following growth of 60% in 2022, but will remain below pre-pandemic levels. The economic downturn, sanctions on Russia, and China's zero-covid strategy will delay recovery. EIU's guide to tourism in 2023 provides a comprehensive view of the challenges, opportunities ...

  4. Travel and tourism: contribution to global GDP 2023

    Overall, the contribution of travel and tourism to the global GDP amounted to 7.7 trillion U.S. dollars in 2022. This figure was forecast to reach an estimated 9.5 trillion U.S. dollars in 2023 ...

  5. News Article

    The World Travel & Tourism Council's ( WTTC) 2023 Economic Impact Research (EIR) today shows the Travel & Tourism sector is closing in on its 2019 peak, recovering by more than 95%. In 2023, the sector is forecast to reach $9.5TN, just 5% below 2019 pre-pandemic levels when travel was at its highest. 34 countries have already exceeded 2019 ...

  6. PDF Global travel will show resilience in an economic downturn

    travel and remaining pent-up leisure demand supported by built-up savings accrued during the pandemic. This growth will support ongoing recovery during what is likely to be a challenging economic period. Globally we expect travel in 2023 to be only 28% below 2019 levels and significantly stronger in both North America and the Middle East.

  7. 2023 summer travel survey

    The possibility of disruption in the form of delayed or canceled flights was cited by just 6% of nontravelers, a huge drop compared to 18% over the winter holiday season. 1. As the summer begins, health concerns no longer hobble the travel industry (health risks were cited by 8% of nontravelers in 2023 vs. 33% in 2022).

  8. 6 Trends That Will Define Travel in 2023

    From the economy to the environment, from health and wellness to food and friends, these factors are influencing how we travel the world this year. ... In 2023, the travel industry is finally starting to walk the talk on its climate goals. The vast majority of consumers (90 percent) are now looking for sustainable options when traveling ...

  9. PDF Travel & Tourism Economic Impact 2023

    10.4% 334m 7.6% 9.2% 295m 320m +22m +24m +22% +23.3% 1/5 THE ECONOMIC IMPACT OF GLOBAL TRAVEL & TOURISM 2019 2022 2023 Forecast 2014-2019 Jobs Travel & Tourism GDP (percentage share of global GDP) Jobs supported by Travel & Tourism

  10. Will Travel Industry Recover in 2023? Reports Show Tourist Numbers, Not

    Some 30% say economic concerns will "greatly" impact their travels in 2023, up seven points since late August 2022. Global tourism in 2023 is predicted to reach approximately 80% to 95% of ...

  11. Global Tourism Outlook in 2023

    Global Tourism Outlook in 2023. Global travel will show resilience in the face of the approaching economic downturn signalled by the pace of forward bookings and positive survey data. A continuing recovery in business travel, as well as some remaining built-up savings and pent-up demand, will support the ongoing travel recovery.

  12. The Latest Travel Data (2024-03-04)| U.S. Travel Association

    Sentiment is also growing for upcoming leisure travel in 2024. The share of travelers reporting having travel plans within the next six months increased to 93% in January from 92% in December, according to Longwoods International's monthly survey. Travel price inflation (TPI) fell slightly in January as a result of falling transportation prices.

  13. Tourism-driven growth to propel global economy in 2023

    The IMF expects the global economy to expand 3% in 2023, backed by the rise in post-pandemic travel and a robust job market. The global economic growth is expected to remain subdued in 2023 and 2024 due to a variety of factors, but the International Monetary Fund has raised its growth forecast for the global economy to 3%, marking a 0.2% increase from its earlier projection in April.

  14. WTTC Says U.S. Travel and Tourism Industry Will Rebound in 2022

    The World Travel & Tourism Council (WTTC) has announced its newest economic modeling projecting that U.S. travel and tourism could rebound strongly this year, reaching nearly $2 trillion in U.S ...

  15. The future of travel is worth $15.5 trillion: Travel Weekly Asia

    Released as part of the 2023 World Economic Impact Report on travel, the data provides a glimpse into the future landscape of global tourism. Delving into the economic contributions of key tourism markets worldwide, the report underlines the top five dominant players in terms of GDP contribution: the United States, China, Germany, the United ...

  16. Report: As the economy goes, so will travel demand in 2023

    The outlook for consumer travel demand in the year ahead is uncertain, according to Deloitte's 2023 Travel Industry Outlook. The economy will play a major factor in leisure travel in the 12 months ...

  17. Economic Impact Research

    WTTC's latest annual research shows: In 2022, the Travel & Tourism sector contributed 7.6% to global GDP; an increase of 22% from 2021 and only 23% below 2019 levels. In 2022, there were 22 million new jobs, representing a 7.9% increase on 2021, and only 11.4% below 2019. Domestic visitor spending increased by 20.4% in 2022, only 14.1% below ...

  18. Economic Impact (2024-03-19)| U.S. Travel Association

    INTERACTIVE TRAVEL DATA March 19, 2024. Travel plays an essential role in stimulating economic growth, cultivating vibrant communities, creating quality job opportunities and inspiring new businesses, and it is indispensable to our nation's global competitiveness. Search by state or congressional district and download a detailed PDF that is ...

  19. PDF depended on the travel industry.

    2 JOBS // RIPPLE EFFECT In 2022, the travel industry directly employed 8 million Americans, supported nearly 15 million jobs and created nearly one-quarter of all jobs. Leisure and hospitality (L&H) has returned to pre-pandemic employment levels, yet still has 1.5 million open jobs as of February 2023—resulting in the highest job openings rate across all industries.

  20. The State of the Travel Industry in 2023

    2023 Offers Hope for Continued Growth in the Travel and Hospitality Sectors. As the travel and hospitality sectors continue to grow and shift in the post-pandemic era, Capuano shared reasons for optimism in 2023. "Number one, it's our people," he emphasized. "When you see their passion, their enthusiasm, their resilience, their creativity ...

  21. 2023: The Changes We Can Expect To See In The Travel Industry

    China Gets Some Good Economic New But Still Faces Huge Challenges. Mar 22, 2024, 12:30pm EDT. ... 2023 is the year in which travel is starting to climb back up to pre-covid numbers. The post ...

  22. Global Outlook for Air Transport

    likely to be at 87.8% of the 2019 level for 2023 as a whole. This strong performance greatly benefits from pent-up demand which remains buoyant in spite of the economic headwinds. • Looking forward, the demand for air travel is expected to double by 2040, growing at an annual average rate of 3.4%. Origin-destination passengers are projected to

  23. PDF Federal Travel Regulation Overview

    Establishes management controls for use of premium economy class airline seating. Among others, may be authorized when travel exceeds eight (8) hours and is to, from, or between OCONUS locations. Rest period of more than 24 hours may be authorized in limited circumstances (e.g., no available flights). "Smoking" seating exception removed ...

  24. US Economic Forecast Q4 2023

    Scenarios. Baseline (60%): Economic growth slows to the potential rate of around 1.5% to 1.6%, while inflation moderates to below 3% by 2025. This long-desired "soft landing" is accompanied by a stable labor market, despite slowing job growth. Slow growth in Europe and China, higher energy prices, and an expensive dollar have not proven to be strong enough headwinds to push the US economy ...

  25. Will 2024 Be the Biggest Travel Boom Year Ever?

    "The 'revenge travel' trend of 2022 and 2023 shows no signs of slowing, with 54 percent of respondents saying they'll take even more international trips in 2024 than they did in 2023 ...

  26. Here's how an immigration surge hurts

    That contributed to net immigration of 3.3 million people into the US in 2023, well above the 900,000 annual average from 2010 to 2019, according to the CBO. The agency's estimates consider both ...

  27. City Pair Program (CPP)

    Socio economic categories Check your eligibility for small-business set-asides. ... 2023 - Sep. 30, 2024. FY 2024; FY 2023; Search for contract fares; ... Taxes and fees may apply to the final price. Your agency's authorized travel management system will show the final price, excluding baggage fees.

  28. 16 Tips to Make Economy Seating More Comfortable

    These tips are sure to make your next seat in economy feel (almost) like first class. ... 2023/10/15 20:58 EST BY LUANA FERREIRA ... Avoiding caffeine and alcohol during travel can enhance a more ...

  29. Russia Economy: 3 Ways Moscow's War-Driven Economy Will Weaken

    3 ways Russia's war-time economy is set to weaken after a surprisingly strong 2023. Russian servicemen drive T-14 Armata tanks during the Victory Day Parade in Red Square in Moscow, Russia June 24 ...

  30. What the Philippines Is Doing About South China Sea Tensions

    Published March 16, 2024 Updated March 21, 2024, 4:34 a.m. ET. With China aggressively asserting its claims on the South China Sea, President Ferdinand R. Marcos Jr. of the Philippines spent his ...