Prolonged high costs will hit tourism rebound momentum

Significance

Visitors to Southern/Mediterranean Europe, the Middle East, North Africa, Central America and the Caribbean exceeded 2019 levels last year and continue to rise. The reopening in Asia Pacific, increased air connectivity, and visa facilitation have also driven the recovery.

Impacts

• Business travel has returned to 2019 levels, but high costs, new working patterns, and corporate sustainability fears may slow its growth.
• Heatwaves driven by climate change may reduce tourism in popular destinations in southern Europe and the Global South.
• ‘Coolcations’ are now a trend as climate change and frequent heatwaves push people towards cooler Northern climes such as Scandinavia.
• ‘Workations’ and ‘digital nomadism’ continue to spread worldwide as flexible working conditions allow people to travel and work.