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.
Delivery
This report comes in PPT.
Key findings
From volume to value: Rethinking urban tourism
Cities are reframing their tourism strategies to prioritise value over volume, recognising that unmanaged growth strains infrastructure, ecosystems and residents’ wellbeing. By targeting visitors who stay longer, spend more and engage more responsibly, cities are tackling overtourism pressures while securing stronger, more reliable economic returns. This shift marks a move towards tourism models designed to protect local quality of life and ensure long-term sustainability.
The AI race: Powering innovation and strategic leadership
As competition among major cities intensifies, AI readiness has become a decisive factor in urban leadership. Cities at the forefront of AI adoption are not only advancing infrastructure, talent development and business growth but also transforming tourism by enhancing visitor experiences and delivering personalised, seamless services. By fostering AI innovation, expanding smart city initiatives and start-up incubators, implementing digital government solutions and enabling AI-driven governance, leading cities are optimising tourism management and positioning themselves as global leaders.
Sustainability as a cornerstone of urban development
Achieving genuine sustainability continues to be a complex and enduring challenge for cities facing significant tourism pressures. Balancing growth with the preservation of cultural identity, social dynamics and environmental systems often entails difficult trade-offs, and overlooking community impacts can trigger unintended consequences, including local unrest, as demonstrated in Barcelona. Nevertheless, sustainability will be a defining determinant of the future of cities, underpinning long-term economic stability and social resilience.
Why read this report?
Key findings
Global tourism poised for growth
Travel continues to show resilience amidst challenges
The new urban frontier 2025: Cities leading tourism, innovation and connectivity
Madrid: The benchmark for balanced city performance
Cities must be highly adaptive in an era of geopolitical turbulence
Can raising travel fees boost border security and tourism attractiveness?
Future-proofing destinations: Delivering the elevated experiences travellers seek
Bangkok reigns as the world’s top city for international arrivals despite slowdown
World-class infrastructure is the backbone of novel travel experiences
Balancing growth and compliance: Short-term rentals under regulatory pressure
“Safe destination” emerges as a key travel priority for visitors
Sustainability race: Who can rival the Nordics?
Americas: Stalled momentum, understanding the US tourism downturn
Americas: New York, Los Angeles and Orlando defy market challenges
São Paulo and Mexico City: Driving Latin America’s regional tourism excellence
Smart tourism in practice: NYC’s AI-powered travel assistant
Turning waste into opportunity: Mexico City’s circular economy model
Asia’s tourism boom accelerates – but new challenges loom
Hong Kong ramps up marketing to position its multi-layered tourism appeal
Seoul taps global K-culture to drive tourism expansion
Singapore sets sights on wellness tourism growth by 2040
Can a balanced tourism approach curb Europe’s overtourism challenges?
Europe’s tourism rankings: Status quo maintained in 2025
Europe’s cities in the age of tourism change
Instability and competition drive down CEE cities’ global rankings
Paris Saint-Germain victory boosts Paris’s tourism leadership
Fiumicino airport powers itself through renewable energy
Middle East and Africa: GCC tourist visa, catalyst for tourism and regional integration
Building a smart future: AI as a priority across United Arab Emirates cities
Saudi Arabia charts a path to tourism hegemony
Rail emerging as a regional priority for sustainable development
Dubai’s Green Licence: A catalyst for eco-focused business and innovation
Infrastructure investments fuel Mecca’s expanding tourism momentum
Recommendations/opportunities for growth
Evolution of cities
Questions we are asking
Top 100 city destinations ranked by performance pillar (1)
Top 100 city destinations ranked by performance pillar (2)
Top 100 city destinations ranked by performance pillar (3)
Top 100 city destinations ranked by performance pillar (4)
Top 100 city destinations ranked by performance pillar (5)
Methodology and definitions
Geographical coverage
Pillar 1: Economic and Business Factors
Pillar 2: Tourism Performance
Pillar 3: Tourism Infrastructure
Pillar 4: Tourism Policy and Attractiveness
Pillar 5: Health and Safety
Pillar 6: Sustainability
Glossary of terms
Travel
Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.
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