Germany and Spain to Lead G20 in Travel and Tourism Investment Growth Through 2035

The World Travel & Tourism Council (WTTC) has reported that projected Travel & Tourism investment across major economies is expected to reach US$12.5 trillion through 2035, with Germany and Spain leading in investment growth.

The World Travel & Tourism Council (WTTC) released its latest report, “Bridging the Gap: Travel & Tourism Capital Investment and Demand Growth Across the G20,” at ITB Berlin. Produced in collaboration with Oxford Economics, the report states that Travel & Tourism demand across the G20 and Spain is forecast to grow at 3.3% annually over the next decade, while capital investment in the sector is projected to rise at a higher rate of 4.6% annually.

The report notes a current gap between the pace of investment recovery and demand growth, with investment lagging behind demand in the near term. This divergence is expected to result in capacity pressures and localised overcrowding, impacting existing tourist infrastructure. The situation is projected to shift from around 2033 onwards, when investment is expected to exceed demand. From 2025 to 2035, investment is projected to grow at a compound annual growth rate (CAGR) of 4.6%, compared to 3.3% for demand.

Germany plans to invest $543 billion up to 2035, with an investment-to-demand growth ratio of 1.39. Spain is projected to commit $349 billion over the same period, with investment 1.46 times faster than demand between now and 2035.

WTTC President & CEO Gloria Guevara stated that countries aligning investment with future demand are strengthening economic resilience and supporting long-term growth. Guevara also noted that sustained, targeted infrastructure investment, including transport connectivity and sustainable upgrades, will be central to unlocking the sector’s economic potential. She called for continued collaboration between governments and the private sector to ensure that investment remains aligned with long-term demand trends.

The report identifies the need to align investment with immediate demand to ensure long-term resilience in the Travel & Tourism sector. It notes that overall investment growth is expected to outpace demand over the coming decade, but the timing of investment recovery is critical to managing capacity and infrastructure challenges.