Visitor spending projected to rise 9 percent as global travel heads for record
The Middle East has recorded a 40 percent fall in international arrivals, even as the global tourism outlook points to growth in 2026.
Visitor spending worldwide is expected to reach $7.8 trillion in 2026, a 9 percent increase, the World Travel Market global report says. It projects a record year for travel despite the wars in Iran and Ukraine, more expensive fuel and continued pressure on living costs.
The gains are uneven across destinations. The report links a 40 percent decline in international arrivals in the Middle East to the war in Iran, although analysts forecast a strong rebound in 2027.
Travelers are also choosing shorter-distance options. Tourism within their own regions has grown by three percent in 2026, while travel across regions and long-haul trips have fallen by three percent. The report attributes the decline to safety worries and increased fares.
Sean Morgan, Oxford Economics’ head of research and a contributor to the report, said travel’s share of household budgets had held steady despite financial strains. He attributed some of the demand to consumers increasingly favoring experiences over material goods.
Morgan said higher average disposable incomes in developing economies are expected to expand participation in overseas travel. Together, India and China are projected to bring an additional 24 million households into the potential travel market over the next six years.
Luxury tourism is another area of growth identified by the report, with Africa showing strong regional gains. African Travel and Tourism Association chair Taqi Moledina described ultra-luxury travelers as the fastest-growing market, reporting increases of more than 10 or 15 percent in both traveler numbers and spending.
