Despite mounting pressures from inflation, rising living costs, tariffs, talent shortages and overtourism, city destinations continue to demonstrate striking resilience. The sector is entering a pivotal new era, marked by ambitious infrastructure investment, rapid innovation and the widescale integration of AI across urban systems. These shifts are reshaping how cities compete, manage visitor flows and safeguard long-term sustainability, setting a new global benchmark for urban tourism’s future.

Global tourism is entering a new era defined by personalisation, purpose, regeneration and diversification. From AI-enabled travel experiences to sustainable growth models and multi-market connectivity, 2025 trends reveal how innovation, inclusion and intentionality are reshaping value creation and long-term competitiveness across the travel industry.

The global travel industry continues to evolve amid economic uncertainty, geopolitical shifts and climate pressures. Despite these challenges, the industry remains resilient, reaching USD2.9 trillion in 2025 as demand for authentic, wellness-driven and tech-enabled experiences rises. Digitalisation and sustainability are reshaping travellers' engagement, while premiumisation and affordability together unlock new avenues for growth and value creation.

Despite a challenging political and economic environment, travel in Mexico maintained positive momentum in 2025, reinforcing the trend observed in 2024 and strengthening the industry’s contribution to the national GDP. This dynamism was closely linked to the intense commercial exchange and mobility among the North American countries, a phenomenon directly influenced by the trade war and migratory tensions arising from actions taken by the Trump administration.

Travel in Ireland continued to perform well in 2025. Ireland’s appeal as a tourist destination lies in the unspoilt beauty of the landscape of the Emerald Isle, especially its wild Atlantic coastline. Ireland is also associated with its culture heritage and pub scene. A domestic tourism trend is a growing interest in experiential tourism, such as taking part in traditional arts crafts and music. In value sales terms, Ireland’s largest inbound market is the US. Visitors from the US and Canada ten

South Africa’s travel industry is recording further rises in 2025, reflecting a solid growth in both inbound and outbound tourism, renewed confidence in air connectivity and the consolidation of a more digital, purpose-driven travel ecosystem. Inbound arrivals continue to rise, buoyed by regional strength, long-haul recovery and South Africa’s strong value-for-money positioning amid a weaker rand. Neighbouring SADC markets Zimbabwe, Mozambique, Lesotho, Eswatini and Botswana remain the largest v

Despite rising value sales, in 2025, the Israeli travel industry continues to experience a significant downturn, primarily driven by the prolonged impact of the regional conflict that escalated in late 2023. The situation has recently been further exacerbated by the war with Iran, which has compounded the existing instability and profoundly disrupted international travel to the country, causing a decline in visitor numbers and pushing the industry back to its lowest performance levels since the

In 2025, Singapore is expected to see another year of strong growth in arrival value, although arrival volume will continue to lag behind. The weak performance in volume will be mainly influenced by Singapore’s primary source markets, China and Indonesia, where challenging domestic economic conditions are restricting purchasing power for outbound travel, especially to high-end destinations like Singapore.

Croatia’s travel industry recorded moderate growth in 2025, maintaining the positive trajectory of the previous year but at a slower pace. Inbound tourism remained the main growth driver, supported by efforts to position Croatia as a year-round destination and reduce dependence on peak-season coastal tourism. The government and tourism boards intensified initiatives to extend the tourist season, expanding air connectivity beyond the summer months, investing in off-season cultural and wellness ev

Travel in Bulgaria is expected to continue expanding in current value terms in 2025, although at a more moderate pace compared to the strong post-COVID rebound seen earlier in the review period. Growth is being supported by rising inbound tourism, driven by the rising perception of the country as a more cost-effective alternative to more established destinations such as Greece or Spain. Indeed, despite gradual price increases and higher wage costs within the hospitality sector, Bulgaria continue

Travel in Slovakia is expected to continue expanding in terms of both number of trips and current value in 2025, albeit at a slightly slower pace than in the previous year. Recently introduced macroeconomic measures aimed at reducing public spending and national debt have contributed to higher inflation and weaker consumer purchasing power, limiting some households’ ability to indulge in leisure activities. Although VAT for restaurants and hotels was reduced to 5% from 1 January 2025, consumers

Travel in Hungary is maintaining positive growth in 2025, supported by a surge in both international and domestic tourism, lodging infrastructure investments, and evolving consumer preferences.

In 2025, India’s travel industry continues to evolve amid economic challenges and shifting traveller preferences. While inbound tourism has slowed, domestic and outbound segments have shown resilience, supported by rising demand for experiential and affordable travel.

In 2025, travel in Poland recorded steady growth across both inbound and outbound segments, though momentum moderated following the strong post-pandemic rebound of 2023-2024. Inbound arrivals almost fully recovered to pre-pandemic levels, led by travellers from Germany and Ukraine, which together accounted for over half of all inbound trips. Poland’s ongoing support for Ukrainian refugees under the Temporary Protection Directive continued to sustain high inflows from Ukraine, although regional i

Despite the sharp contraction in overall inbound visitor numbers in 2025, particularly from the Chinese market, Thailand’s travel sector was supported by underlying structural investment in digital and upscale experiences. Travel flows have been facilitated by increased airline capacity and connectivity, whilst significant growth and investment in the lodging sector has led to higher occupancy and rising average daily rates, notably in upscale segments where new properties cater to diverse trave

Travel in the Czech Republic is poised to witness steady value growth in 2025. Inbound arrivals are rising well driven by the growing interest in Czechia’s cultural heritage, sustainable tourism, and nature-based activities. Prague remains the primary tourism magnet followed by South Moravia and the Karlovy Vary region. The Czech Republic has experienced a significant decline in Russian tourists due to the war in Ukraine and travel restrictions during the pandemic. By contrast, Czechia is gainin

Value sales for travel in Romania was positive in 2025, largely driven by price increases for both domestic and outbound trips. These price hikes were the result of persistently high inflation and elevated costs in energy, food, and transportation, all of which continued to impact the cost of living. At the same time, according to the National Institute of Statistics, the average net wage rose by 9.8% in March 2025 compared to March 2024. Flexible working arrangements also remained in place, par

Travel in the Philippines has shown a mixed recovery in 2025. Domestic demand has driven growth, while international arrivals have recorded slower growth, impacted by softer outbound travel from key markets such as South Korea and China and ongoing geopolitical tensions. Arrivals from the US, Japan, and Australia have remained steady. Despite slower growth in volumes, travel revenues have remained strong due to longer stays, higher spending per visitor, and a preference for hotels, leisure, and

Travel is set to see significant current value growth in Indonesia in 2025. The Eid al-Fitr period remains the largest contributor to domestic tourism in Indonesia, in addition to several weekend holiday periods. There have been numerous aggressive discounts on train tickets, particularly during school holidays and anniversary celebrations, which were not offered in previous years. Another mode of transportation noted for offering numerous ticket discounts is air travel, both domestic and intern

Travel in Malaysia continues to develop and grow in 2025. The number of inbound arrivals to Malaysia is set for strong growth in terms of number of trips and retail current value sales, supported by the government’s robust subsidies and marketing initiatives, such as the Travel Promotion Matching Grant and Tourism Sector Support Grant, alongside the Visit Malaysia 2026 (VM2026) campaign. Outbound departures also continue to gain momentum, especially to neighbouring countries like Thailand and In

Hong Kong's inbound travel sector is undergoing structural transformation as it adjusts to changing travel patterns from Mainland China, its largest source market. There has been a sluggish recovery in arrivals from Mainland Chinese tourists, who increasingly favour same-day excursions over overnight stays, partly due to the seamless connectivity of High-Speed Rail. This trend has prompted a multi-faceted response from the aviation sector focused on enhancing quality and diversification. The Air

Travel in China continues to expand at a steady pace over 2025. Inbound travel has gained momentum largely driven by the extension of China’s visa-free policy and transit program. As of 17 July 2025, citizens of 46 countries with ordinary passports can enter China visa-free for up to 30 days, whilst citizens of 55 countries are eligible for China’s 240-hour visa-free transit, mainly benefitting inbound travellers from Western Europe, the Middle East and Southeast Asia. In terms of source markets

In 2025, retail value of travel sales in Australia continued to grow. However, travel began shifting in a new direction, influenced by changing international conditions that shaped consumer preferences. The cost of travelling abroad, particularly to North America and Europe, has risen significantly due to the reintroduction of US tariffs, ongoing inflation, and increasing long-haul travel expenses. As a result, both international tourists visiting Australia and Australians travelling oversea are

Taiwan’s inbound tourism strategy is undergoing a strategic transformation in 2025, focusing on diversifying its visitor base and shifting from volume to value. High-potential Southeast Asian markets and long-haul source regions are being actively targeted, with promotional efforts centred on high-yield niche experiences, such as cultural heritage, eco-tourism, and gourmet travel. The goal is to boost visitor spending, increase market resilience, and enhance the overall quality of tourism.