Global tourism industry economic contribution grows faster than its environmental impact

October 9, 2024

The World Travel & Tourism Council’s (WTTC) 24th Global Summit is underway in Perth and has revealed a significant decrease in tourism’s climate footprint emissions.

A key driver of tourism’s emissions is the energy used to power its operations.

However, although 2023 showed positive trends compared to 2019, it’s clear that there are still significant opportunities to accelerate the green transition.

The increases in renewable energy use and reductions in fossil fuel reliance remain relatively modest, highlighting the need for more decisive action.

In 2023, the sector’s reliance on fossil fuel energy sources (oil, coal, and natural gas) dropped to 88.2% from 90% in 2019.

WTTC’s latest Environmental & Social Research (ESR), created in partnership with the Ministry of Tourism of Saudi Arabia, reveals that in 2023, tourism accounted for 6.7% of all emissions globally, down from 7.8% in 2019, when the industry was at its peak.

Last year, tourism’s contribution to global GDP almost reached pre-pandemic levels at US$9.9 trillion, just 4% shy of the sector’s peak.

However, in 2023 global GHG emissions were 12% below the 2019 peak, with GHG intensity (emissions per unit of GDP) falling 8.4% during this period. This demonstrates the sector’s growth is becoming cleaner.

Julia Simpson, WTTC President & CEO noted “our sector is proving that we can grow responsibly. We’re decoupling growth from emissions - Travel & Tourism is expanding economically while lowering its environmental footprint.

“This is a defining moment, proving that innovation and sustainability go hand in hand in shaping the future of global tourism. However, while we are decoupling our sector’s growth from the increase in GHG, our aim is absolute reductions. We must accelerate this progress significantly to meet the Paris climate targets. We’re on the right track, but we need to up our game.”

The share of low-carbon energy sources (nuclear and renewables) increased from 5.1% in 2019 to 5.9% in 2023, reflecting ongoing efforts to reduce dependence on fossil fuels.

The resurgence of the global Tourism industry is also mirrored in tax revenues that accrue to Governments from the direct taxes paid by our businesses.

In 2023, total Tourism tax revenues amounted to US$3.32trillion. This equates to 9.6% of total global tax revenues.

Governments must use these additional revenues to reinvest in decarbonising infrastructure, expanding renewable energies and supporting businesses in their green transition.

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