The World Travel & Tourism Council (WTTC) today launched its 2024 Economic Impact Trends Report, which has revealed the U.S. as the world’s most powerful Travel & Tourism market, contributing a record-breaking $2.36 TN to the nation’s economy last year.

Despite the slow return of spending from international travellers, the U.S. keeps pole position, with almost double the economic contribution of its nearest rival.

Following a record-breaking year for Travel & Tourism, the sector continues to be the backbone to many country economies, while supporting millions of jobs globally.

The latest report from the global tourism body reveals China as the world’s second most powerful market with a GDP contribution of US$1.3 TN in 2023, underscoring its impressive rebound, despite the late reopening of its borders.

Germany secured the third spot with a US$487.6 BN economic contribution, while Japan, which in 2022 was in 5th place, jumped up to 4th position, contributing US$297 BN.

The United Kingdom completes the top five contributing US$295.2 BN.

France, the world’s most popular destination retained its sixth position with a contribution of US$264.7 BN, followed closely by Mexico at US$261.6 BN, showcasing its continued appeal as a major tourist destination.

India came in eighth, rising from a previous 10th position, with US$231.6 BN, marking a notable improvement and highlighting its growing influence in the sector. Italy and Spain complete the top 10, contributing US$231.3 BN and US$227.9 BN, respectively.

However, over the next decade, WTTC predicts China will become the biggest Travel & Tourism market with India moving up to 4^th position.

These shifts illustrate the dynamic nature of the global Travel & Tourism sector, with emerging markets gaining ground and traditional powerhouses maintaining their strongholds.

The report also highlights the countries experiencing the highest annual growth rates in their Travel & Tourism contributions to GDP.

In 2023, China’s sector surged led with an astounding year on year growth of 135.8%, while other Asian countries, such as Hong Kong SAR, Malaysia, and the Philippines recovered soon after the removal of travel restrictions.

Julia Simpson, WTTC President & CEO, said: “As we look forward to a record-breaking 2024, it’s clear that Travel & Tourism is not only back on track, but also set to achieve unprecedented growth.

“We will continue to prioritise sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations. The sector’s resilience and potential for innovation continues to drive us forward.”

According to the report, many key destinations will profit from a surge in international spending this year compared to pre-pandemic levels, with Saudi Arabia, up 91.3% compared to 2019%, Türkiye (+38.2%), Kenya (+33.3%), Colombia (+29.1%) and Egypt (+22.9%) leading the way.

Globally international visitor spending is set to grow by nearly 16% to reach US$1.9 TN, while domestic tourists are projected to spend more than ever before, reaching US$5.4TN, an increase of 10.3% over 2019 levels.

Travel & Tourism investment grew 13% in 2023 to reach more than US$1TN, with a return to pre-pandemic levels anticipated by 2025.

However, high interest rates around the world could create challenges for future investment. It is therefore crucial that the public and private sectors work together to innovate to ensure the continual strengthening of this vital sector.

The report also highlights the sector’s commitment to sustainability, showcasing the decoupling of growth from greenhouse gas emissions and the increasing opportunities for women, young people, and marginalised communities.

Technological advancements, particularly in AI, are expected to further enhance the travel experience and drive future growth.

The Lagos Red Line Rail has commenced partial passenger operations as part of a test run for the new rail project.

According to a statement released by Lagos State Governor Babajide Sanwo-Olu, the Red Line will operate four daily trips between Oyingbo and Agbado.

The service starts from Oyingbo at 8:30 am and will be making a stop at Yaba, Mushin, Oshodi, Ikeja, Agege, and Iju before arriving at Agbado by 9:37 am.

Below is the trip schedule:

AM Trip 1: Oyingbo (8:30), Yaba (8:37), Mushin (8:45), Oshodi (8:54), Ikeja (9:05), Agege (9:15), Iju (9:27), Agbado (9:37).
AM Trip 2: Agbado (10:30), Iju (10:37), Agege (10:49), Ikeja (10:59), Oshodi (11:10), Mushin (11:19), Yaba (11:27), Oyingbo (11:37).
PM Trip 1: Oyingbo (12:40), Yaba (12:47), Mushin (12:55), Oshodi (13:04), Ikeja (13:15), Agege (13:25), Iju (13:37), Agbado (13:47).
PM Trip 2: Agbado (14:50), Iju (14:57), Agege (15:09), Ikeja (15:19), Oshodi (15:30), Mushin (15:39), Yaba (15:47), Oyingbo (15:57).

This partial operation aims to assess the Red Line’s safety, reliability, and efficiency.

Once fully operational, the Red Line is projected to run 20 trips daily and transport about 500,000 passengers per day.

Emirates Airlines has re-entered the Nigerian aviation market, offering dollar-denominated fares that have sparked debate among industry experts and travelers alike.

The airline, which suspended services to Nigeria due to trapped funds, announced it will resume daily flights between Lagos and Dubai starting October 1, 2024, but with all fare inventories priced in U.S. dollars.

While the move has garnered applause for its competitive pricing, many are concerned about its potential impact on Nigeria’s foreign exchange market.

Checks revealed that Emirates’ fares, though in dollars, are priced competitively compared to other international airlines.

A return economy class ticket from Lagos to London Heathrow on Emirates costs $1,130, which amounts to ₦1.83 million at the current exchange rate.

In comparison, other airlines such as KLM, Air France, and Ethiopian Airlines have ticket prices ranging from ₦2.2 million to ₦2.7 million. This pricing strategy is seen as an effort by Emirates to regain a foothold in Nigeria, a key market for the airline.

However, not all are enthusiastic about Emirates’ decision to price fares in dollars. Susan Akporaiye, Managing Director and CEO of Topaz Travels and Tours, expressed concern over the impact on Nigeria’s already fragile foreign exchange market.

“This means people have to buy dollars in the black market to pay for tickets, putting more pressure on the foreign exchange market, which could lead to scarcity and further fare increases,” Akporaiye said.

Travel industry analyst Olumide Ohunayo noted that Emirates’ decision to charge in dollars might be a strategic marketing move but warned of possible risks.

“It may be a marketing gimmick to attract travelers with lower fares, but the real test will be when operations commence on October 1. The airline can’t afford to alienate travel agents and customers by bypassing traditional naira-based pricing,” Ohunayo stated.

Emirates had previously suspended flights to Nigeria due to complications arising from trapped funds and fuel supplier payments. The airline, unlike other carriers operating in Nigeria, pays its suppliers in dollars, while others pay in naira.

This mismatch was a significant factor in Emirates’ decision to pull out of the market in 2022. With its return, industry experts are urging Emirates to address these underlying issues to ensure long-term success in the Nigerian market.

Critics also raised concerns about the potential impact on Nigeria’s sovereignty, with many questioning the decision to prioritize the dollar over the local currency, the naira.

Yinka Folami, President of the National Association of Nigerian Travel Agencies (NANTA), stated that while the fares might be competitive, charging in dollars undermines Nigeria’s legal tender.

“Nigeria is a sovereign nation, and it deserves respect. Pricing tickets in dollars puts unnecessary pressure on the naira and the forex market,” he said.

Despite the concerns, some industry insiders believe that Emirates’ re-entry will benefit travelers by increasing competition and providing more affordable options.

A return business class ticket from Lagos to Dubai on Emirates, for example, costs $4,418 (₦7.1 million), which is competitive with other carriers such as Turkish Airlines and Qatar Airways, whose fares are in the same range but often higher in naira.

As the October 1 launch date approaches, analysts will be closely watching how Emirates navigates Nigeria’s unique challenges, including foreign exchange volatility and the complexities of pricing in a dual currency environment.

Whether this bold move by Emirates will result in a long-term strategy or a short-lived experiment remains to be seen, but for now, the airline has certainly reignited conversation in Nigeria’s aviation industry.