Travel and tourism investment of a projected US$12.5 trillion across major economies will play a decisive role in shaping competitiveness and economic growth through to 2035.
In its latest Bridging the Gap: Travel & Tourism Capital Investment and Demand Growth Across the G20 report — launched at ITB Berlin and produced in collaboration with Oxford Economics – the WTTC reveals that travel and tourism demand across the G20 and Spain is forecast to grow at 3.3% annually over the next decade.
Capital investment is projected to rise at an even stronger 4.6% annually – however, the report highlights an urgent need to align this investment with immediate demand to ensure long-term resilience.
While overall investment growth is expected to outpace demand, the timing is critical. In the near term, investment recovery lags demand, resulting in a temporary divergence between the two. This relative gap may translate into capacity pressures and localized overcrowding, putting a strain on existing tourist infrastructure.
The situation will change from around 2033 onwards, with investment expected to exceed demand. Overall, investment is projected to grow at a CAGR of 4.6% from 2025-2035, compared to 3.3% for demand.
The picture varies significantly between economies, with some countries acting as “strategic modernizers” by investing ahead of future needs. Germany plans to invest $543 billion up to 2035, an investment-to-demand growth ratio of 1.39, reinforcing its position as a high-quality, resilient destination.
Meanwhile, Spain will commit $349 billion – an investment rate 1.46 times faster than demand between now and 2035 – enhancing the nation’s competitiveness as a tourist destination.
Gloria Guevara, President & CEO, WTTC, observed that: “Travel & Tourism is entering a new decisive decade for infrastructure and competitiveness. Countries that align investment with future demand are strengthening their economic resilience and securing long-term growth.”
Guevara pointed out that: “Germany and Spain show how strategic, forward-looking investment can enhance connectivity and support jobs. As demand continues to expand, maintaining this momentum will be critical to ensuring sustainable growth across the G20.”
And she added that: “The report highlights that sustained, targeted infrastructure investment – including transport connectivity and sustainable upgrades – will be central to unlocking the sector’s full economic potential. WTTC calls for continued collaboration between governments and the private sector to ensure investment remains aligned with long-term demand trends and delivers measurable economic returns.”
Go to www.wttc.org for more.
