WTTC Reports ‘Cleaner’ Growth in Global Travel & Tourism

WTTC President & CEO Julia Simpson. Photo source: WTTC

Travel & Tourism accounted for 6.7 percent of global emissions in 2023, down from 7.8 percent in 2019, when the sector was at its peak, according to the latest Environmental & Social Research (ESR) released by the World Travel & Tourism Council (WTTC) on Tuesday.

Created in partnership with the Ministry of Tourism of Saudi Arabia, the updated environmental footprint data were presented at the WTTC’s 24th Global Summit in Perth, Western Australia, which opened on October 8.

Travel & Tourism grows cleaner

Photo source: WTTC

The research highlights a significant achievement: the sector’s economic contribution is growing faster than its environmental impact.

Last year, the contribution of Travel & Tourism to global GDP nearly reached pre-pandemic levels at 9.9 trillion American dollars (USD), just 4 percent lower than the sector’s peak.

However, in 2023, global greenhouse gas (GHG) emissions were 12 percent below the 2019 peak, with GHG intensity (emissions per unit of GDP) falling by 8.4 percent during this period.

According to the WTTC, this demonstrates that the sector’s growth is becoming cleaner.

“Our sector is proving that we can grow responsibly,” said WTTC President & CEO Julia Simpson. “We’re decoupling growth from emissions—Travel & Tourism is expanding economically while lowering its environmental footprint.”

However, Simpson added that the industry must significantly accelerate its progress to meet the Paris climate targets.

“We’re on the right track, but we need to up our game,” she said.

Travel & Tourism may still accelerate green transition 

Photo source: WTTC

According to the research, a key driver of Travel & Tourism’s emissions is the energy used to power its operations.

While 2023 showed positive trends compared to 2019, significant opportunities remain to accelerate the green transition. The increases in renewable energy use and reductions in fossil fuel reliance are relatively modest, underscoring the need for more decisive action.

In 2023, the sector’s reliance on fossil fuel energy sources (oil, coal, and natural gas) dropped to 88.2 percent from 90 percent in 2019. The share of low-carbon energy sources (nuclear and renewables) increased from 5.1 percent in 2019 to 5.9 percent in 2023, reflecting ongoing efforts to reduce dependence on fossil fuels.

Travel & Tourism global tax revenues 

Photo source: WTTC

The resurgence of the global Travel & Tourism sector is also reflected in the tax revenues accrued by governments from the direct taxes paid by businesses in the sector.

In 2023, total Travel & Tourism tax revenues amounted to 3.32 trillion dollars (USD), equating to 9.6 percent of total global tax revenues. Governments must use these additional revenues to reinvest in decarbonizing infrastructure, expanding renewable energy sources, and supporting businesses in their green transition.