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Tourism could be a $16 trillion industry by 2034. This is how destinations can create sustainable growth


Glance at the news headlines and you might wonder about the future for tourism as we know it. 
Locals with water guns have hit the streets of Barcelona as part of anti-tourism protests across Spain, Italy and Portugal. Destinations around the globe have taken measures from implementing entry fees to blocking famous views to help manage increasing numbers of holidaymakers.
Yet despite friction between visitors and residents – as well as threats including the risk of global disruptions and the pressure it puts on nature – travel and tourism’s contribution to global GDP is projected to be $16 trillion by 2034. The sector supports businesses and communities and has a central role in the labour market – accounting for about 1 in 10 jobs in 2024.
Importantly, while some destinations are overwhelmed, many others remain under-visited and could benefit greatly from increased tourism – especially when aligned with sustainability and local development goals. Rather than curbing growth, the opportunity lies in better management, smarter distribution and more inclusive strategies that share tourism’s benefits more evenly.
It is a crucial moment for an industry “at a crossroads”, according to Travel and Tourism at a Turning Point: Principles for Transformative Growth, a report from the World Economic Forum in collaboration with Kearney. 
New report suggests balanced approach for sustainable tourism
When poorly managed, tourism can strain the long-term sustainability of a destination – increasing pressure on natural resources, infrastructure and communities. But framing tourism growth itself as the core problem risks missing the point. 
Experts say tourism will only be sustainable if it is developed and managed with the needs of both visitors and local communities in mind. This isn’t about limiting travel but about shaping it to benefit everyone involved. With visitor-to-resident ratios expected to increase, these challenges will become more pressing, particularly in destinations where tourism is highly concentrated.
Rather than curbing demand, solutions lie in redistributing tourism flows, diversifying experiences and expanding opportunities to under-visited regions. Done well, tourism can be a powerful driver of local development, investment and cultural exchange – if aligned with sustainability goals and community needs. 
The Forum report includes examples of places worldwide doing just that.
Success through long-term strategies
After years of conflict, two decades ago Rwanda identified the tourism sector as a key pillar for economic development, and today it contributes about 10% to GDP. 
Nature-based tourism, including the Volcanoes National Park and gorilla tourism, is at the heart of the offering – but given the capacity of such activities, other options have been explored. In 2014, the country decided to build a MICE tourism strategy, which caters to meetings, incentives, conferences and exhibitions, after strong analysis showed the potential for Rwanda to become a successful destination in this area. It has also become a leading African destination for lifestyle events and concerts. 
The 2024 annual report from the Rwanda Development Board demonstrates the success of this strategy, showing that its MICE sector generated $84.8 million in revenue from hosting 115 high-profile events with over 52,000 delegates.
Ensuring growth is inclusive
In Mexico, tourism plays a crucial role in the economy, accounting for 8.5% of GDP and providing employment for millions of people. But the industry’s potential to promote inclusive and sustainable growth in the country has been “largely unrealized” according to the Organisation for Economic Co-Operation and Development (OECD).
This was the case in Barrancas del Cobre, to which people travel to explore a series of vast canyons but where the Indigenous Rarámuri people had no meaningful involvement in the area’s tourism. Today, things are different thanks to the creation of Experiencias Rarámuri, a tourist attraction with immersive experiences, including nature-based adventures and cultural workshops.
The result of collaboration between groups, including entrepreneurs, commercial partners and regional authorities, the initiative balances growth with local requirements and reinvests income into areas such as healthcare and education. Alongside, it has provided employment opportunities for more than 100 families. 
What is the World Economic Forum doing to promote sustainable urban development? 
Incorporating local needs
Atlanta's Mercedes-Benz Stadium, which opened in 2017, has a capacity of more than 71,000 and hosts sporting events including Atlanta Falcons National Football League games as well as conferences, exhibitions and trade shows. With visitor volumes in the region of 3 million a year, during construction there was concern about the impact this would have on the surrounding neighbourhoods, which were under-invested and struggled with high crime rates. 
Engaging the community helped to manage potential tensions, with workshops being held to gain resident input on various projects including flood-resistant parks and public art around the stadium. Alongside, local people took part in a programme that helped to prepare them for a visitor economy, with more than 700 residents trained and over 150 employed in stadium roles. 
Supporting SMEs
When tourism is a significant contributor to a local economy, small businesses can often need support with resources and connections to help them take advantage. San Diego, where the sector generates more than $14.3 billion annually, took a systematic approach to ensure tourism benefitted the community when rebuilding after the pandemic. 
Its Tourism Accelerator programme trains 10 local businesses that reflect the community's diversity each year in areas including marketing, public relations and networking. Over three years, the initiative has supported 30 businesses, the majority of which have reported increased revenue and job creation as a result.
Tourism’s projected growth, the Forum report concludes, brings complex challenges but also an opportunity to thrive while helping to address some of our most pressing challenges.
WEFORUM
Jul 7, 2025 13:38
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