Global Travel & Tourism: 2024 environmental and social impact report

The Travel & Tourism sector has made a remarkable comeback, bouncing back from the depths of the pandemic to reclaim its position as a global economic powerhouse. In 2023, the sector contributed 9.1% to global GDP, nearly reaching pre-pandemic levels at 96% of its 2019 peak. This resurgence signals a revival of travel demand and a sector-wide transformation in how businesses operate globally with growth.

However, this comeback isn't without its challenges. As the sector regains momentum, the focus on reducing environmental impact has become more pressing than ever. The sector remains a significant consumer of energy and water. While GHG emissions have declined from 2019 levels, the push towards greener, more efficient operations continue.

Beyond its environmental footprint, the sector remains a vital source of jobs and economic stability, particularly for young workers, women, and those in high-wage sectors. It also plays a crucial role in global tax revenues, contributing billions to public funding. The 2024 Environmental & Social Research (ESR) report by WTTC highlights the key trends, challenges, and opportunities shaping the future of Travel & Tourism. Hence, as tourism moves forward, businesses, especially SMEs, must embrace innovation, sustainability, and inclusivity to thrive in this new era.

Environmental Impact: Emissions, energy, and water use

GHG emissions

• In 2023, tourism contributed 6.5% of global GHG emissions, significantly lower than 7.8% in 2019.

• Total GHG emissions increased by 20% from 2022 to 3,410 billion kg CO2, but emissions remain 14% below 2019 levels.

• International transport emissions were 12% below the 2019 peak, driven by lower aviation emissions.

Energy consumption

• Travel & Tourism used 8.1% of global energy in 2023, up from 6.9% in 2022, yet still below the 9.5% share in 2019.

• The sector's energy consumption increased 22% year-on-year, with international transport growing the fastest (34%).

• 88% of energy use came from fossil fuels, making the sector more reliant on oil and gas compared to the global average (77%).

Water use

• The sector accounted for 5.6% of global water use in 2023, with direct activities contributing just 1.1%.

• The total water consumption of 222 billion m³ was 26% higher than in 2022, nearing pre-pandemic levels.

• Water use intensity remains highest in lower-middle-income countries, mainly due to the agricultural footprint of the supply chain.

Social Impact

Employment contributions

• Travel & Tourism directly employed 18.7 million young workers in 2023, nearly recovering to 2019 levels (1% below).

• The sector supported 9.1% of total global youth employment across direct, indirect, and induced jobs.

• Women accounted for 39.7% of direct employment, contributing 3.6% to global female employment.

• 90.9 million high-wage jobs were supported in 2023, exceeding 2019 levels by 1.7 million.

Tax revenues

• Tax revenues totaled $3.3 trillion in 2023, representing 27% of its GDP footprint.

• Direct tax contributions were $1.8 trillion, marking a return to pre-pandemic levels.

• Across all economic channels, taxes contributed 9.6% of total global government revenues.

The Travel & Tourism sector has demonstrated remarkable resilience, rebounding strongly from the pandemic while making strides in reducing its environmental impact. With GDP nearing pre-pandemic levels, a growing workforce, and significant contributions to global tax revenues, the industry remains a cornerstone of economic and social progress.

However, as the sector expands, sustainability must remain a top priority. While emissions intensity has decreased and water and energy efficiency have improved, the reliance on fossil fuels and resource consumption still poses challenges. Businesses, especially SMEs, must adopt greener practices, invest in energy efficiency, and embrace inclusive employment strategies to ensure long-term growth.

‍