It looks like we’ll all be traveling more internationally in the next few years, at least according to a study released last week titled “Painting the Future of Global Travel and Tourism.” The study, carried out by Oxford Economics (a forecasting organization that works with the University of Oxford) and Visa, provided a wealth of predictions about how much international travel people will take, and exactly who will do it.
First, the study predicts that by 2025, more than 50 percent of travelers (more than 1.8 billion) will be traveling internationally each year. Economically speaking, this means that international travelers, who currently spend more than $1 trillion abroad each year, are likely to spend $1.5 trillion by 2025. Reasons for the expected increase include demographic changes, advances in technology, and the construction of 340 new airports around the world over the next decade, all of which will make international travel more attainable. The study also cited the growing number of mobile devices around the world as a factor, noting that they will increase awareness of travel options and allow more people to personalize their trips.
Second, the findings showed that rising income levels around the world are creating a new ‘travel class’. This is the group of people who earn at least $20,000 a year and account for more than 90 percent of today’s spending on international travel. By 2025, as many as 945 million households will be in this travel class, with each household likely to spend an average of more than $5,300 on international travel each year.
So where did this travel class come from? Travel is widespread around the world, but some countries are predicted to spend more on travel than others. Unsurprisingly, China is expected to lead the growth rate. Travelers from the Middle Kingdom are expected to spend approximately $255.4 billion annually by 2025, an 86 percent increase compared to 2015. The United States is likely to experience the second-largest growth, with annual travel spending of $134.1 billion, an increase of 33 percent compared to 2015. Other countries expected to be in the top five in terms of spending include Germany ($97.6 billion) and the United Kingdom ($96.9 billion). ($1 billion), Russian Federation ($49.1 billion).
Another interesting prediction from the study is that by 2025, travelers aged 65 and over will more than double the number of international trips they take, allowing them to spend more on longer, more luxurious trips. Medical tourism is also expected to grow by 25% annually over the next decade.
Bottom line: Get your passport ready.