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While global tourism has strengthened across most countries, rising visitor numbers are not translating into wider economic and social benefits, according to a World Economic Forum (WEF) report.
Several destinations are struggling to convert record tourism demand into long-term benefits amid rising costs, geopolitical and climate disruptions, labour shortages and growing pressure on infrastructure and local communities, according to the WEF. This comes despite broad improvement in the 2026 Travel & Tourism Development Index (TTDI). The index measures the factors and policies enabling the sustainable and resilient development of travel and tourism. As per the report, 92% of the 110 economies in the 2026 Travel & Tourism Development Index (TTDI) improved their score since 2024, with Japan taking the top position, while average scores rose by 2.1 per cent. Tourism development conditions are at their strongest since the pandemic, led by improvements in cultural attractions, tourism infrastructure and services, and air connectivity. At the same time, cultural resources stood as the most improved pillar in the TTDI, with over 95% of economies recording higher scores. WEF also noted, International tourist arrivals reached a record 1.5 billion in 2025, up 5% on 2024 and 4.4% above 2019 levels, highlighting, Middle East and Africa recorded strongest growth while Asia-Pacific continued to close the gap with pre-pandemic travel level. However, 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, it said. Benefits for local communities also declined during the period, which reflects higher visitor numbers do not necessarily lead to better livelihoods or higher-quality jobs, particularly in destinations heavily dependent on seasonal tourism. It further noted that travel and tourism-related prices have risen faster than inflation in many economies, contributing to a decline in price competitiveness in three-quarters of TTDI-ranked economies between 2024 and 2026. Despite improvement, tourism investment has lagged behind activity since 2022, while workforce shortages and skills gaps risk constraining service quality and adaptation to digital and AI-driven change, it said. The economic and social value generated by tourism also weakened between 2024 and 2026, while pressures from crowding and visitor concentration remained above pre-pandemic levels. The report stressed that destinations must focus not only on generating tourism growth but also on managing it effectively by spreading its benefits more widely while limiting pressure on local communities, infrastructure and natural assets. (ANI)
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