Global Tourism Flows and Economic Drivers

Global tourism flows are the movements of international travelers between countries and regions, and the economic drivers of tourism are the factors that make these flows possible and growing, such as rising incomes, cheaper transport, easier visas, new technology and the development of destinations. In brief: international tourist arrivals grew from about 25 million in 1950 to roughly 1.5 billion in 2019, before the Covid-19 pandemic caused a sharp fall and then a recovery. Most travel is within the same world region, with Europe the most visited region, and France and Spain are among the top destinations. Before the pandemic, tourism accounted for around 10% of global GDP and jobs, according to industry estimates.

Tourism is one of the world’s largest economic activities and a main source of income for many countries. This guide explains the pattern of global tourism flows, the push and pull factors and drivers behind them, the economic effects, compares regions in a table, works through calculations, outlines the history of growth and corrects common mistakes.

What are the main global tourism flows?

International tourism is concentrated in a few regions. Europe receives about half of all arrivals, helped by its density of countries, mild climates and cultural heritage. Asia and the Pacific is the second region and has been growing fastest, and the Americas follow, with the Middle East and Africa having smaller shares but growing. France has been the most visited country, with about 90 million arrivals in 2019 and about 100 million in 2023, followed by Spain, the United States, Türkiye and Italy.

About four out of five trips take place within the traveler’s own region (intraregional travel), because of lower cost, shorter distance and cultural familiarity. Long-haul flows connect, for example, North America and Europe, and Asia with Europe and North America. Major source markets have traditionally been Germany, the United States and the United Kingdom, and since the 2000s China became the largest in spending until the pandemic, followed by the United States, as its middle class grew. Seasonal flows, such as northern Europeans traveling to the Mediterranean in summer or skiers to the Alps in winter, create peaks in demand. The numbers of domestic tourists, who travel within their own country, are several times larger than international ones.

What drives tourism growth?

• Rising incomes and leisure time: as people become richer, they spend more on travel, and paid holidays and retirement give time.
• Cheaper and faster transport: jet aircraft, budget airlines (from the 1990s), high-speed rail, motorways and cruise ships have lowered the costs of travel.
• Technology: online booking, comparison sites, rental platforms, social media and mobile apps make planning easier and create new markets.
• Political change and easier travel: visa-free areas such as the Schengen Area, peace and opening of countries, and the freedom to travel for people in countries such as China and Eastern Europe.
• Marketing and development of destinations: investment in hotels, airports and attractions by governments and companies, and the promotion of places in media and film.
• Demographic change: more healthy retirees, smaller households and growing middle classes in Asia and elsewhere.

The decision to travel can be seen as a result of push factors in the home area (stress, bad weather, desire for change) and pull factors in the destination (climate, culture, scenery, attractions, price). Tourism is also sensitive to shocks such as terrorism, health crises, financial downturns, natural disasters and exchange rates.

What is the economic importance of tourism?

Tourism creates jobs in hotels, restaurants, transport, guides and crafts, and it generates foreign currency, tax revenue and investment in infrastructure. For small island states and some developing countries, such as the Maldives, the Bahamas and Jamaica, tourism is the largest source of income. The multiplier effect means that each unit of tourist spending leads to further spending as local businesses buy goods and pay wages. Weaknesses include leakage, when a large share of the money goes abroad to foreign owners, airlines and imports; dependence on one sector; low pay and seasonal work; and vulnerability to shocks, as seen in 2020, when international arrivals fell by about three quarters and millions of jobs were at risk. Tourism receipts as a share of GDP vary widely, from under 1% in some large economies to more than 20% in tourism-dependent ones.

Regions compared

Worked example: growth, share and spending

1. Growth multiple: from 25 million in 1950 to 1,500 million in 2019, arrivals grew 1,500 ÷ 25 = 60 times in 69 years, an average rate of 60^1/69 − 1 = about 6.1% per year.
2. Regional share: if Europe received 745 million of 1,460 million arrivals, its share is 745 ÷ 1,460 = 51%.
3. Pandemic fall: arrivals fell from 1,460 million in 2019 to about 400 million in 2020. The fall is 1,060 million, which is 1,060 ÷ 1,460 = 73%.
4. Recovery: arrivals of 1,400 million in 2024 are 1,400 ÷ 1,460 = 96% of the 2019 level.
5. Spending per trip: receipts of 1,400 billion from 1,460 million arrivals is an average of 1,400,000 ÷ 1,460 = about 959 per arrival.
6. Multiplier: if each 100 of tourist spending creates a further 60 of local economic activity through the multiplier, the total effect is 160, a multiplier of 1.6. For 400 million in direct spending, the total is 400 × 1.6 = 640 million.

How have tourism flows changed over time?

Before the 20th century, international travel was an elite activity. After 1945, rising incomes in Western Europe and North America, paid vacations and the jet age (from the late 1950s) started mass tourism, with Mediterranean coasts as the first major destinations. The 1970s and 1980s saw the growth of long-haul tourism and of package holidays, and the 1990s opened Eastern Europe and Asia. Since 2000, low-cost carriers, the internet and the rise of China and other emerging markets changed the picture. The 2008 financial crisis caused a short dip, and the Covid-19 pandemic led to the steepest fall ever recorded in 2020, followed by a recovery that brought arrivals close to the 2019 level by 2024. UN Tourism had earlier projected 1.8 billion arrivals by 2030.

Which mistakes are common?

Mistake 1: Thinking that most tourists travel to other continents

Most international trips stay within the same region, and domestic tourism is larger still.

Mistake 2: Equating arrivals with income

Income depends on how long visitors stay and how much they spend. A destination with fewer visitors can earn more per visitor than one with mass tourism.

Mistake 3: Ignoring leakage

Gross receipts overstate the benefit if much of the money is paid to foreign companies or spent on imported goods.

Mistake 4: Assuming that tourism growth is steady

Tourism can fall quickly in response to crises, so economies that depend on it are exposed to risk.