#TravelIndustry

Leisure travel is set to become a $15 trillion powerhouse by 2040, according to a landmark study by Boston Consulting Group (BCG), signaling an era of unprecedented opportunity—and challenge—for airlines, hotels, and tour operators worldwide. The report forecasts that the sector will triple in value from $5 trillion in 2024, driven by shifting demographics, fresh travel motivations, and groundbreaking use of digital technology in planning and experiences. These profound shifts carry particularly significant ramifications for Thailand, an established tourism hub in Asia primed to benefit—and compete—in this new global travel order.

As global travel rebounds with unprecedented force, new research warns that the benefits of mass tourism may be shadowed by serious costs—both for beloved destinations and their residents. In 2024, a staggering 1.4 billion people traveled internationally, according to the United Nations World Tourism Organization, accounting for roughly one in six people worldwide. For many communities, this surge has been a mixed blessing: while it has brought economic prosperity, it is also overwhelming town centers, fracturing local cultures, inflating living costs, and jeopardizing the pristine sites that first drew visitors from afar (UNWTO).

A landmark international study has found that despite twenty years of climate pledges, the global tourism industry has made scant progress towards reducing its greenhouse gas emissions, calling into question the sector’s commitment and strategies for climate action. The research, carried out by teams at Sweden’s Linnaeus University and Canada’s University of Waterloo, analyzes the effectiveness of climate declarations from leading tourism organizations and governments since 2003. The findings reveal that while climate commitments abound, meaningful results—especially in terms of emissions reductions—remain elusive, raising urgent concerns for countries like Thailand where tourism is a national economic pillar and environmental sustainability is increasingly central to policy and public debate (Skift).

Asia has soared to the top of travelers’ wishlists this summer, accounting for more than half of the season’s most popular destinations, according to a recent report highlighted by CNBC. As worldwide travel rebounds in the post-pandemic era, industry data signal a growing preference for Asian hotspots, reflecting shifting tourism trends, evolving traveler demographics, and renewed cultural curiosity.

Heightened demand for Asian destinations is particularly significant for Thai readers, as Thailand’s tourism industry is both a direct participant in and a beneficiary of this global pattern. The rebound underscores the resilience of Asian tourism sectors and brings renewed opportunities and challenges for Thailand as it competes for international arrivals and seeks to rejuvenate its domestic travel economy.

Asia’s tourism landscape is undergoing a dynamic transformation as Vietnam has emerged as the region’s most-visited country during the first quarter of 2024, outpacing popular destinations like Thailand and Indonesia, according to recent travel industry data highlighted by Hindustan Times. A staggering 10 million international tourists flocked to Vietnam in the first three months alone, reflecting the country’s surging appeal as well as shifting travel trends within Southeast Asia.

This news is especially significant for Thai readers as Thailand, long regarded as Asia’s tourism powerhouse, now faces stiff competition from neighboring Vietnam. The first quarter figures underscore a need for the Kingdom to re-examine its tourism strategies to maintain relevance amid rapidly evolving traveler preferences. With Vietnam attracting more arrivals than Thailand and Indonesia—both mainstays on the Asian tourism circuit—the development signals a new era of competition and innovation in the region’s travel sector.