Resilient global tourism outlook despite downturn in sentiment

The latest results from Tourism Economics’ Q1 2025 Travel Industry Monitor (TIM) identified a significantly weaker economic sentiment with almost two-thirds of tourism experts worldwide developing a negative view on the economy over the past three months.

• There was a continuation in the overall positive outlook for tourism as strong levels of confidence in growth persisted, however, short and medium-term expectations were notably lower than in other recent surveys.
• Experts now think that travel budgets will be squeezed in 2025 as fewer respondents expected that travel would account for an increased share of disposable income compared with last year’s survey results.
• Financial pressures remain a key challenge (mentioned by over 80%) but they eased slightly compared with last quarter. In contrast, concerns regarding bureaucracy, regulation, and trade policy were more prominent, likely influenced by recent global trade announcements by the U.S. administration.
• While travel prices are still expected to rise, the pace of increase – especially for eating, drinking, and entertainment – was predicted to slow slightly. This is an encouraging finding as value is seen as an increasingly important factor influencing travel.