$12.5 trillion in travel and tourism investments to shape G20 competitiveness to 2035 | News
The World Travel & Tourism Council (WTTC) today announced that $12.5 trillion in expected investment in travel and tourism in major economies will play a decisive role in shaping competitiveness and economic growth through 2035.
The latest report from WTTC Bridging the Gap: Travel & Tourism Capital Investment and Demand Growth Across the G20, launched at ITB Berlin and produced in collaboration with Oxford Economics, shows that demand for travel and tourism in the G20 and Spain is expected to grow by 3.3% per year over the next decade. Capital investment is expected to increase by an even stronger 4.6% per year. However, the report highlights the urgent need to align these investments with immediate demand to ensure long-term resilience.
The strategic divide: investing in future resilience
While overall investment growth is expected to exceed demand, timing is critical. In the short term, the investment recovery lags behind demand, resulting in a temporary difference between the two. This relative gap can translate into capacity pressure and local overcrowding, putting pressure on existing tourism infrastructure.
The situation will change from around 2033, with investments expected to exceed demand. Overall, investment is expected to grow at a CAGR of 4.6% between 2025 and 2035, compared to 3.3% for demand.
Germany and Spain are leading the investment
The picture varies considerably across economies, with some countries acting as “strategic modernizers” by anticipating future needs. Germany plans to invest $543 billion through 2035, an investment-to-demand ratio of 1.39, strengthening its position as a high-quality, resilient destination.
Meanwhile, Spain will invest $349 billion – a rate of investment 1.46 times faster than demand between now and 2035 – to boost the country’s competitiveness as a tourist destination.
Gloria Guevara, President & CEO of WTTC, said: “Travel and tourism are entering a new, decisive decade for infrastructure and competitiveness. Countries that align investments with future demand strengthen their economic resilience and secure long-term growth. Germany and Spain show how strategic, forward-looking investments can improve connectivity and support jobs. As demand continues to grow, maintaining this momentum will be critical to ensuring sustainable growth in the G20.”
“The report highlights that sustained, targeted investments in infrastructure – including transport connectivity and sustainable upgrades – will be critical to unlocking the sector’s full economic potential. WTTC calls for continued collaboration between governments and the private sector to ensure investments remain aligned with long-term demand trends and deliver measurable economic returns.”
