Tourism hindered by instability in 2026 but still sets records

The tourism sector is expected to set records in arrivals and spending in 2026, despite geopolitical instability. According to the WTM Global Travel Report, international arrivals are projected to reach 1.57 billion, a 2% increase from 2025. Visitor spending is anticipated to rise by 6%, totaling $1.8 trillion. However, growth will slow compared to previous years due to factors like the US-Iran conflict and rising living costs, impacting long-haul travel demand. The Middle East saw a 40% drop in arrivals this year, but a recovery is expected if the conflict resolves. Short-distance travel is increasing, particularly in Europe and Sub-Saharan Africa. The report highlights resilience in the tourism industry, with young travelers prioritizing spending on experiences. Technology, especially AI, is increasingly used for travel planning. If international instability decreases, arrivals could grow by 8% in 2027, reaching 2.2 billion by 2032, driven by markets like India and China.