Despite global challenges, travel spending is surging worldwide, driven by Gen Z and experience-led tourism that’s reshaping the industry’s future.
Global travelers are proving that not even economic uncertainty, political instability, or safety concerns can suppress their desire to explore. Tourism is growing 1.5 times faster than the global economy and is set to generate 11% of the world’s GDP by 2034, according to new data from the World Economic Forum.
Behind this rapid growth lies a major shift in how and why people travel. Across continents, from North America to Europe and the Gulf, spending on travel is soaring. The Portrait of American and Canadian International Travelers™ study found that U.S. travelers alone plan to spend more than $13,000 on international trips over the next year — a dramatic increase over 2024. German, British and Gulf Cooperation Council (GCC) travelers are following the same trend, allocating more of their budgets to distinctive, experience-driven trips.
“German travelers show the same tendencies as U.S. travelers,” says Tobias Bandara of MMGY Lieb. “They’re spending more on distinctive experiences and longer stays.”
The GCC market, meanwhile, is emerging as one of the world’s most powerful growth engines, with travel spending expected to more than double over the next decade.
Yet the most disruptive force in global travel right now is generational. Gen Z travelers are planning the highest number of trips but intend to spend the least. “This will transform the industry,” says Beth Freedman of MMGY. “We’ll see more modular and à la carte travel, shorter micro-itineraries, and flexible payment options to attract younger audiences.”
Experts say that segmenting by age alone is no longer enough. “Some Boomers travel like Millennials, and some Gen Zers crave cultural depth,” adds Sanya Zaidi of MMGY Think Strawberries. “The future lies in understanding traveler mindsets, not just their demographics.”
Safety remains a top concern across all markets — from the U.S. and Canada to the GCC — shaping how destinations present themselves. But simply claiming safety isn’t enough, says Freedman. “Travelers want proof. Credibility comes through authentic storytelling, influencer content, and trusted third-party voices.”
Ultimately, the new era of global travel is being shaped by emotion, values, and connection as much as by economics. Destinations that focus less on promoting landmarks and more on curating authentic, story-led experiences will thrive.
As Zaidi puts it, “The role of tourism boards is evolving — from destination promoters to experience architects. Listening deeply, designing smartly, and activating locally are now the keys to success.”
