The Global Tourism Leaderboard
According to the Travel & Tourism Development Index (TTDI), developed in collaboration with Zurich Insurance, the top-performing nations are overwhelmingly high-income economies with robust support systems for tourism. The 2024 edition of the index, whose
findings inform the 2026 outlook, places the United States, Spain, Japan, France, and Australia in the top five. These countries showcase a winning combination of favourable business environments, open travel policies, and highly developed transport and service infrastructure. The report highlights that the top 30 ranked economies account for more than 75% of the travel and tourism industry's GDP. While established players lead, many developing economies are showing significant improvement, with countries like Indonesia and several in the Middle East making major gains.
The Winning Formula: More Than Just Pretty Places
The core message of the WEF assessment is that a nation's natural beauty and cultural heritage are only part of the equation. To build a resilient and competitive tourism sector, this potential must be unlocked by strong infrastructure, enabling policies, and high-quality services. The report finds that since 2019, the most significant gains globally have been in cultural attractions, air connectivity, and tourism services. Effectively harnessing natural and cultural assets requires strategic management, promotion, and protection, alongside solid infrastructure to facilitate travel. This confirms the headline's assertion: destinations can no longer rely on their inherent attractions alone but must actively invest in the systems that support visitor experiences.
India’s Position and Potential
India has shown notable progress, climbing to 39th place in the 2024 index. This positions India as the highest-ranked country in South Asia and among lower-middle-income economies. The country's primary strengths lie in its exceptional natural resources (ranked 6th globally) and cultural resources (9th), alongside strong price competitiveness (18th). However, the overall ranking suggests there are opportunities for improvement in other areas to fully leverage these powerful assets. India is one of only three countries to score in the top 10 across all resource pillars, which includes natural, cultural, and non-leisure resources, highlighting its immense potential. The government has noted improvements in the prioritization of tourism, as well as in safety and hygiene, as key factors in its improved standing.
New Challenges on the Horizon
Even as the tourism sector celebrates a record 1.5 billion international arrivals in 2025, the WEF report warns of significant headwinds. The challenge is shifting from generating demand to managing growth sustainably. A key concern is affordability, as travel-related costs have outpaced general inflation in three-quarters of the economies studied, making trips more expensive. Furthermore, a global labor shortage threatens the quality of service, and capital investment has not kept up with the surge in demand. Destinations now face the complex task of balancing visitor numbers with the well-being of local communities and protecting the very assets that draw tourists in the first place.
Building a Resilient Future for Travel
In response to these challenges, the WEF and Zurich Insurance outline five priorities for building a more resilient tourism industry. These include diversifying source markets to avoid dependence on a single region or season, as Japan has successfully done. Another is protecting physical and digital access, ensuring transport and communication systems can withstand disruptions from geopolitical events or extreme weather. The report also urges destinations to compete on value and experience rather than just price, and to invest in the workforce to close a projected skills gap. Ultimately, the most successful destinations will be those that can adapt to shocks and ensure tourism delivers lasting benefits for businesses, communities, and visitors alike.
