There’s a particular kind of number that stops you mid-scroll, and $17.8 trillion is one of them. This is where the international travel and tourism sector will reach in 2034, according to market research. It is almost twice what it was a few years ago. For a town like Bath, which thrives on numbers of people coming through the gates, hotels being booked and tables in the cafés full on Saturday mornings, it is worth listening to.
A market back on its feet, and then some
As stated by Dataintelo, the global travel and tourism market was valued at $9.5 trillion in 2025, regaining everything it had lost during the pandemic period and moving way ahead of pre-2020 levels. The industry is predicted to achieve a CAGR of 7.2% until 2034, by which time its value will be $17.8 trillion. In the meanwhile, tourism’s contribution to global GDP, standing above 10%, is also predicted to increase.
It is not just one thing behind the industry’s rapid development, but several of them combined: budget airlines’ cheap flights, easy visa policies, rising global middle class willing to spend money on vacations and digitization of the booking process. Currently, over 65% of all travel bookings globally take place online, compared to less than 50% five years ago.
International travel is where the real growth is
The market can be split into two segments – domestic and international – and the latter will come out on top in terms of both size and growth. In addition to being currently responsible for the larger portion of the global revenue from tourism, it is also showing a higher rate of growth – 7.8% compared to 6.4% for the domestic segment. A part of it stems from expenditure patterns – international tourists spend over three times as much per trip as the domestic ones.
The largest contribution to growth is made by the Asia Pacific region, especially China and India whose increasing love for travel both in and out of the country pushes the region above the 30% mark of global market share. But Europe still holds a strong second-place position, thanks largely to the enduring pull of destinations like Spain, Italy, France — and closer to home, historic cities that draw travellers back year after year.
Where the demand is actually coming from
However, there are two generations which influence this development direction. Firstly, Millennials are still the most lucrative generation around the globe, who prefers experience-based journeys, boutique hotels, and storytelling destinations. Secondly, Generation Z is the fastest growing generation at the moment with the discovery of destinations through social media and short spontaneous trips, willing to pay more for something unique or shareable.
Finally, the environmental sustainability is the factor which began to determine the travel choices of consumers in recent years. In fact, as the latest global survey shows, almost three-quarters of travelers take into account the environmental aspects of the destination or accommodation during booking their trip. Thus, this tendency results in increased demand for boutique and eco-accommodations.
What it means closer to home
In the case of a city such as Bath, which already attracts domestic tourists, as well as foreign tourists, due to its heritage, Georgian architecture, and health, it offers a good starting point. Traveling budget for foreigners has been rising in recent years, while travelers tend to choose unique experiences in terms of culture rather than generic city break, therefore, preserved historic destinations have every chance to take advantage of it. The local hospitality industry including hotels and restaurants, belongs to those sectors which will benefit most.
It is evident that the future of travel lies ahead – it will not only recover but enter a completely new era of growth.
Reference: https://dataintelo.com/report/travel-and-tourism-market
