The World Travel & Tourism Council (WTTC) has joined hands with Hotelbeds to bring sector leaders together in Palma, Mallorca, Spain, to explore the evolving dynamics of global travel and tourism.
The event “Global Trends in the Tourism Sector,” which offered a platform to understand the present situation of travel and tourism through discussions, was led by WTTC President & CEO Julia Simpson and Hotelbeds CEO Nicolas Huss. The event was held at the TravelTech Lab in Hotelbeds’ headquarters in Palma.
The event explored the thriving tourism conditions, both globally as well as in the Balearic Islands. Global travel and tourism in 2022 grew by an impressive 22%, driven mainly by the easing of pandemic restrictions and a rise in spending by international travelers.
While post-pandemic leisure travel is booming, travel patterns are changing, said Simpson. The Balearics are witnessing an extended season. Luxury travel is quite strong, with hotels leading with new offerings for this market, she added.
By the end of the year, the travel and tourism sector is expected to account for 14.6% of Spain’s GDP and provide employment to around three million citizens.
“The strong commitment of companies throughout the tourism ecosystem to work together with external partners, including those in the innovation sphere, will be critical to ensure travel and tourism continue to thrive,” said Huss.
Huss and Simpson highlighted the sector’s shift from corporate to leisure travel, with the latter representing 88% of travel spending in Spain. This shift is expected to continue, strengthening the leisure travel segment.
TOURISM TRENDS
According to Hotelbeds, three trends will continue to define the traveler:
- Trips merging leisure and business, supported by the shift to remote working in the last few years.
- Sustainable travel is supported mainly by Gen Z, who are more conscious of their environmental footprint. Hotelbeds has signed an agreement to join WTTC’s Sustainability Basics program to raise awareness and encourage properties to make more eco-friendly choices.
- The rise of personalized travel. While travelers look for ease of booking trips, technology is the driving force and is used increasingly to deliver customized experiences, often helped by AI.
BALEARIC ISLANDS
The usual flow of travel has increased to the Balearic Islands, according to Hotelsbeds’ data. The highest share of travelers originated from the U.K. (+17%) and Germany (+29%).
Additionally, countries like France and Portugal have been witnessing increasing demand for the islands, while long-haul markets from Europe are also on the rise.
PALMA’S ROLE IN INTERNATIONAL TRAVEL
Palma’s travel and tourism contribution to the city’s GDP surged by a whopping 128% to reach more than €1.5 billion ($1.61 billion), accounting for 6.3% of the local economy, according to WTTC’s latest Cities Economic Impact Research.
In 2022, the travel and tourism sector in the city supported around 20,000 jobs, which accounted for 6% of the local workforce. However, this figure is behind 2019 levels by 11,000 jobs.