A new report by the World Economic Forum in collaboration with Kearney has explored sustainable growth opportunities for the global visitor economy.

According to the report, it is a crucial moment for an industry “at a crossroads”.

"The travel and tourism sector stands on the threshold of significant growth," the report said.

"By 2034, it is expected to expand 1.5 times faster than the global economy. This growth trajectory reflects the continued rise in global mobility and increased spending across different segments despite the sector’s already substantial size."

The Travel and Tourism at a Turning Point: Principles for Transformative Growth report highlights the four segments that are emerging as significant growth drivers, expanding at rates exceeding sector averages.

Travelling to attend live events, including music festivals and sports tourism, is growing at double digit rates. Sports tourism was valued at more than $609 billion in 2023 and is expected to reach more than $1.7 trillion by 2032, a 16 per cent compound annual growth rate (CAGR).

Ecotourism is projected to expand at a CAGR of 14 per cent, reaching $760 billion by 2032. Among the drivers are the rise in awareness of outdoor recreational activities and in interest in sustainable tourism.

Wellness tourism is projected to increase at eight per cent CAGR by 2034 as health consciousness grows, creating demand for experiences that treat mind and body, such as spa treatments, mindfulness retreats and wellness programs).

Meetings, incentives, conferences and exhibitions (MICE) is projected to grow at nine per cent CAGR between 2025 and 2030, from $870 billion in 2024, outpacing the rest of the business travel segment. This growth reflects the value of face-to-face interaction even as technology provides alternatives.

"These segments offer opportunities to develop specialized offerings for destinations and organisations, while potentially addressing seasonality challenges," World Economic Forum said.

Evolving traveller profiles

According to the report, estimates suggest that by 2030 India and China will collectively account for more than 25 per cent of international outbound travel.

"With Indian travellers tripling and Chinese travellers doubling their current share, their preferences will shape the market," the World Economic Forum said.

"Simultaneously, Millennials and Generation Z will comprise most travellers, bringing in digital-native behaviours. They will continue to fuel demand for experiences and events, with most preferring live experiences over purchasing items and relying heavily on social media for inspiration.

"Content creators and travel influencers have emerged as powerful intermediaries, shaping travel decisions and behaviours through their platforms, creating both opportunities and responsibilities for promoting sustainable, respectful tourism practices."

The report also noted that the bleisure sector was also continuing to grow.

Blended business and leisure travel is projected to expand at around nine per cent CAGR by 2032 as remote work polices enable location flexibility.

Such shifts are accompanied by evolving preferences, for example more than 50 per cent of business travellers want more blended travel trips and in 2024 took at least two of them.

View the full report here.