Germany And Spain Lead Strategic Investments In Global Tourism Growth

Bridging The Gap

The World Travel & Tourism Council (WTTC) has reported that projected Travel & Tourism investments totaling USD 12.5 trillion across major economies will be crucial in driving competitiveness and economic growth through 2035.

According to WTTC’s latest report, Bridging the Gap: Travel & Tourism Capital Investment and Demand Growth Across the G20, launched at ITB Berlin in partnership with Oxford Economics, Travel & Tourism demand in the G20 nations and Spain is expected to grow at an annual rate of 3.3 per cent over the next ten years. Capital investment is forecasted to increase even faster, at 4.6 per cent per year. However, the report emphasises the pressing need to better align these investments with current demand to ensure long-term industry resilience.
 
The Strategic Gap: Investing for Future Resilience

While overall investment growth is expected to outpace demand, the timing is critical. In the near term, investment recovery lags demand, resulting in a temporary divergence between the two. This relative gap may translate into capacity pressures and localised overcrowding, putting a strain on existing tourist infrastructure. 
 
The situation will change from around 2033 onwards, with investment expected to exceed demand. Overall, investment is projected to grow at a CAGR of 4.6 per cent from 2025-2035, compared to 3.3 per cent for demand.
 
Germany and Spain leading the investment

The picture varies significantly between economies, with some countries acting as "strategic modernisers" by investing ahead of future needs. Germany plans to invest USD 543 billion up to 2035, an investment-to-demand growth ratio of 1.39, reinforcing its position as a high-quality, resilient destination. 
 
Meanwhile, Spain will commit USD 349 billion – an investment rate 1.46 times faster than demand between now and 2035 – enhancing the nation’s competitiveness as a tourist destination. 
 
Gloria Guevara, President & CEO, WTTC, said, “Travel & Tourism is entering a new decisive decade for infrastructure and competitiveness. Countries that align investment with future demand are strengthening their economic resilience and securing long-term growth. Germany and Spain show how strategic, forward-looking investment can enhance connectivity and support jobs. As demand continues to expand, maintaining this momentum will be critical to ensuring sustainable growth across the G20. The report highlights that sustained, targeted infrastructure investment - including transport connectivity and sustainable upgrades – will be central to unlocking the sector’s full economic potential. WTTC calls for continued collaboration between governments and the private sector to ensure investment remains aligned with long-term demand trends and delivers measurable economic returns.”