The World Economic Forum’s 2024 Travel & Tourism Index (TTDI) in partnership with the University of Surrey analysed 119 economies to identify factors driving sustainable travel and tourism growth. The TTDI’s 5 dimensions and 17 pillars provide a comprehensive view of industry enablers. Positive news shows global tourist’s arrivals are projected to reach pre- pandemic levels in 2024, reflecting pent-up demand and the sector’s resilience.
But the recovery is uneven as 71 economies improved since 2019, the average TTDI score is just 0.7 per cent higher than pre- pandemic levels. The TTDI’s 2024 results highlight the need for collaboration among stakeholders to address challenges like rising prices, labour shortages, imbalances and an uncertain economic and geopolitical climate. This will be crucial to harnessing the sector’s transformative power.
Regional Breakdown of recovery
The Middle East leads with a 20 per cent increase over 2019 arrivals while Europe, Africa and the Americas show a strong 90 per cent recovery in 2023. Asia’s delayed lifting of restrictions will likely fuel further global growth in 2024.
Europe remains the global leader in travel and tourism boasting the highest average TTDI score and dominating most industry pillars. Asia- Pacific follows closely while sub-Saharan Africa shows the most significant improvement since 2019. Europe captures a staggering 64.9 per cent of global tourist arrivals translating to 32.6 per cent of the industry’s GDP and generating 13.9 per cent of its employment.
While ranking second, Asia- Pacific presents a mixed picture. 10 of its 19 economies surpass the global average and 11 improved since 2019. The region saw the biggest average score decline -0.7 per cent between 2021 and 2024, likely due to slower travel restriction relaxation and lagging air route capacity recovery. This resulted in the only regional decline in air transport infrastructure -1.6 per cent and tourist’s services and infrastructure scores -4.4 per cent.
However, bright spots in Southeast Asia remains with initiatives like the ‘ASEAN-EU Comprehensive Air Transport Agreement (CATA)’ and the ‘ASEAN Single Aviation Market’ are expected to boost regional and international aviation. Southeast Asia reflects this with the highest improvement in air service agreement scores +6.0 per cent since 2019.
Within Asia-Pacific, Japan world’s 4th largest economy with GDP (USD 4112 billion) leads with 3rd rank globally in TTDI Index followed by Australia on 5th. China world’s 2nd largest economy with GDP (USD 18,536 billion) ranks 8th in the top 10, boasts the regions T&T economy. India standing as world’s 5th largest economy with GDP (USD 3,942) holds 39th rank the top spot, while the Philippines 69th relies most heavily on the tourism industry for its GDP according to 2022 data. Finally, Singapore 13th reigns supreme in Southeast Asia, with neighbouring Indonesia experiencing the region’s most significant score improvement +4.5 per cent jumping from 36th to 22nd.
Why is India falling behind?
India’s travel and tourism industry ranking fell sharply compared to 2019, India dropped 10 positions to 39th globally. This decline is reflected in its average score which decreased by 2.1 per cent. Overall, India’s TTDI score lags behind the global average 7.1 per cent. This represents the steepest decline among the world’s top 10 economies.
While India boasts a strong foundation for tourism, a recent decline in its TTDI ranking paints a concerning picture. The country shines in its natural beauty, ranking 6th globally and boasts rich cultural experience rank 9th and diverse non-leisure offerings 9th globally- a unique combination not found elsewhere in top 10. Additionally, India excels in price competitiveness ranking 18th with well-developed air transport 26th and grounds and port infrastructure 25th.
Despite these strengths, India lags in promoting itself as a tourist destination. With a mere USD 3 crore allocated for oversees promotion and the closure of 20 tourism offices abroad, India is missing out on attracting potential visitors. This is particularly concerning given the significant economic impact of “Inbound Tourism” in India.
Industry expert’s calls for marketing boost
As per the data by the “Ministry of Tourism” 1,439 million people participated in religious tourism in India during 2022, it is more than double from 677 million in 2021. In 2022, religious tourism destinations earned INR 1.34 lakh crore in revenue, up from INR 65,070 crore in 2021. In December 2023, over 10.7 lakh foreign tourists visited India, contributing a significant INR 24,707 crore to the country’s foreign exchange. However, the number of foreign tourist visits has declined in recent years, from 31.41 million in 2019 to 8.59 million in 2022, due to changing travel behaviours post-pandemic.
Under central government’s Swadesh Darshan Scheme, an outlay of INR 5294 crore has been allocated for the development of theme-based tourist circuits. A total of 76 projects have been sanctioned under the project which covers popular religious destinations across different states of India. But for inbound tourism schemes Indian lags behind. India’s tourism needs a marketing boost to capitalise on Asia’s travel boom and reclaim its global tourism leader status.
In an exclusive conversation with ETTravelWorld, Jyoti Mayal, President of Travel Agents Association of India, highlighted that we need to do data analysis which is very important for any marketing, we should not be marketing randomly, but we need to market properly so that the focus is where it is. Very soon we are going to be having the Incredible India website which is going to be very well done by the Ministry of Tourism.
She added, “To take that further, we need to see that the website and the content reaches the world globally because today is the world of technology. So, we need to move technology to enhance our business in every format. The outreach can be much easier today with technology and we should be marketing that perspective, working with all the embassies TAAI is already doing that. We are actually tying up with all the Indian embassies abroad and working with them and in West India.
We have been regularly doing updating and giving presentations to countries outside. We’ve also been reaching out to all the stakeholders. Currently we were at the Arabian Travel Mart with TAAI, along with the Ministry of Tourism and our partners, BFS.
The index, prepared in collaboration with the University of Surrey, showed India is highly price-competitive (18th) and boasts competitive Air Transport (26th) and Ground and Port (25th) infrastructure. In particular, India’s strong Natural (6th), Cultural (9th) and Non-Leisure (9th) Resources help drive travel, and the country is only one of three to score in the top 10 for all the resource pillars, the WEF said.
We came into a PPP model and got an inbound show there where we had 200 stakeholders together, inbound and local suppliers. All this needs to be done much more. It’s just not one, it doesn’t need to end one. We need to do many more roadshows outside to showcase India. We should be showcasing weddings outside, conferencing how it can happen in India. So, all these things need to be done and we as the association and ministry should be working together towards it.
I think all these things will make a lot of difference and impact. And of course, I always say that associations need to be regularly involved with the ministry, which it is, but we need to work more aggressively to see that it happens.”
Ministry of Tourism in collaboration with the overseas Indian Missions participated in major international travel exhibitions like FITUR to promote the industry. And also participated as a partner country for the JATA Tourism Expo, which was held at Tokyo, in October 2023. By 2028, India’s tourism and hospitality industry is projected to generate revenue of over USD 59 billion. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 million by 2028. The foreign exchange earnings in 2023 were USD 28.07 billion.
Looking Forward: Collaboration for a sustainable future
The travel and tourism sector are experiencing a robust rebound from the pandemic with international arrivals projected to reach pre-pandemic levels in 2024. This resurgence presents a crucial opportunity to address broader challenges, the report added.
While strong pent-up demand fuels the rebound 88 per cent of 2019 arrivals achieved in 2023, the T&T sector’s increasing economic impact nearly USD 9.9 trillion contribution to global GDP necessitates a focus on long-term sustainability. Collaboration is key to unlocking the potential of tourism sector as a force for good. The report calls for, stakeholders – businesses within and outside the sector, employees, governments, NGOs and international organizations all must work together to achieve environmental stewardship, socioeconomic progress, global connectivity and technological innovation.
Key Action Areas:
• Sustainability: Prioritizing nature conservation and responsible tourism practices.
• Inclusivity: Empowering local communities through tourism development.
• Openness: Promoting travel facilitation and reducing barriers.
• Technology: Ensuring responsible and safe adoption of technology in tourism.
By prioritising collaboration and focusing on these key areas the tourism sector can move beyond recovery and become a true driver of positive global change.
