Australia has been ranked in fourth place on the World Economic Forum’s Travel & Tourism Development Index (TTDI) 2026.
Developed in collaboration with Zurich Insurance Group, the 10th edition of TTDI found that 101 of 110 ranked economies improved their scores between 2024 and 2026.
The TTDI measures the factors and policies that enable the sustainable and resilient development of the travel and tourism sector. It does not measure tourism performance – such as arrivals, spending or revenue – directly, but the conditions that determine how well a destination can attract, support and sustain travel and tourism in ways that generate benefits for economies and societies.
Gains in the latest report were driven by increased cultural resources, tourism infrastructure and services, and air connectivity and business travel.
Japan led the TTDI, followed by the United States, Spain, Australia and France. Japan and Australia also improved at a slightly faster rate than the overall index, with Australia moving up from sixth place in 2024.
The report found travel and tourism conditions have strengthened across most of the world, but destinations face a growing challenge: turning record demand into lasting value amid rising costs, geopolitical and climate disruption, workforce shortages and mounting pressure on infrastructure and communities.
World Economic Forum Head of Experience Economy and Cities Ramya Krishnaswamy said: “The latest Travel & Tourism Development Index shows that the enabling conditions for travel and tourism are at their strongest since the pandemic, with 92 per cent of economies improving since 2024.
“The next chapter is not simply about attracting more visitors, but it is going to be about creating greater value by investing in people, infrastructure and stronger public-private collaboration so tourism delivers lasting benefits for communities, businesses and destinations.”
Between 2024 and 2026, travel became less affordable in three out of four economies, while tourism investment failed to keep pace with rising demand and labour shortages threatened further growth.
Benefits for local communities also weakened during this period, highlighting that more visitors do not automatically translate into better livelihoods or higher quality jobs, particularly in destinations where tourism is highly seasonal.
Zurich Insurance Group CEO Global Businesses and Operations Cara Morton said: “Tourism is a major part of the global economy and the TTDI makes clear that resilience is what keeps that value intact when conditions change.
“That kind of resilience requires business and governments to take responsibility together.”
View the full report here.
