International tourism is one of the largest and fastest-growing parts of the global economy. In 2025, 1.52 billion international tourist arrivals were recorded worldwide, and many destinations have built their economies around visitors from overseas. But what exactly is international tourism, and why does it matter?
In this article, I explain what international tourism is, how it is defined, why it is important for economies, societies and the environment, and what the latest international tourism statistics show.
What is international tourism?
Tourism is the generic term used to cover both demand and supply that has been adopted in a variety of forms and used throughout the world.
International tourism refers to travel that crosses national borders, when people visit a country other than the one in which they usually live. It forms part of the wider visitor economy, which includes all of the activity generated by visitors, whether they are travelling internationally or within their own country (domestic tourism). The tourism industry encompasses all activity that takes place within the visitor economy.
This includes activities that are directly related to the tourist, such as staying in a hotel, ordering a meal or visiting a tourist attraction. It also includes indirect activities, such as the transport company which delivers the food to the restaurant in which the tourist eats or the laundry company that has a contract with the hotel for cleaning bed sheets.
It is largely due to the indirect contributions to tourism, that defining and measuring the tourism industry is so difficult!
Video: Inbound, outbound and international tourism explained
International tourism definitions
Tourism is a phenomenon with no universally accepted definition, owing to the complexity and individualism of the travellers themselves and the activities that they choose to undertake.
The most widely used definition of tourism, proposed by the World Tourism Organization (UN Tourism, now known as UN Tourism) and the United Nations Statistics Division (1994), states that to qualify as a tourist, a person must travel to and stay in a place outside their usual environment for not more than one consecutive year for leisure, business or other purposes.
Mathieson and Wall (1982), on the other hand, do not impose a timeframe, simply stating that one must travel to a destination temporarily.
Leiper (1979) believed that defining tourism is more complex than this, proposing that there are three approaches that can be taken. The economic stance focuses on tourism as a business, the technical stance focusses on the tourist in order to provide a common basis by which to collect data and the holistic stance attempts to include the entire essence of the subject.
The Cambridge Dictionary defines tourism quite simply as ‘the business of providing services such as transport, places to stay or entertainment for people who are on holiday’.
As there is no universal definition of the term ‘international tourism’, for the purposes of this article it is defined as follows:
‘International tourism is the act of travelling to another country other than where you live for no more than one year for purposes of leisure or business’.
International tourism can be viewed from two directions. Inbound tourism refers to international visitors arriving in a country, while outbound tourism refers to residents of a country travelling abroad. The same trip is outbound for the traveller’s home country and inbound for the destination they visit.
Why is international tourism important?
International tourism is hugely important. It brings benefits to economies, societies and the environment, as outlined below. You can also read more about the importance of tourism in general.
Value to the economy
International tourism helps economies to bring in money in a number of different ways. Below are some of the main positive economic impacts of tourism.
Foreign exchange earnings
The importance of international tourism is demonstrated through foreign exchange earnings.
Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy.
How a destination manages this income differs around the world. Some destinations spend it on growing their tourism industry further, some invest in public services such as education or healthcare, and in some destinations weak governance means that tourism revenue does not always reach the communities that need it most. Money that flows out of the destination, for example to foreign-owned hotel chains or on imported goods, is known as economic leakage.
Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British pound, the US, Australian and Singapore dollars and the Euro.
According to UN Tourism, international tourism generated an estimated US$1.9 trillion in receipts in 2025, rising to around US$2.2 trillion in total export revenues once international passenger transport is included. For many countries, tourism is one of their largest sources of export earnings and foreign exchange.
Contribution to government revenues
The importance of international tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that is then invested elsewhere by the government. There are two main ways that this money is accumulated.
Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes.
Indirect contributions come from goods and services supplied to tourists which are not directly related to the tourism industry.
There is also the income that is generated through induced contributions. This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure activities, amongst others. This all contributes to an increase in economic activity in the area where tourism is being developed, a process known as the tourism multiplier effect.
According to the World Travel and Tourism Council (WTTC), the direct, indirect and induced contribution of travel and tourism to the global economy reached a record US$11.6 trillion in 2025, equivalent to 9.8% of global GDP.
Employment generation
The importance of international tourism can be demonstrated through employment generation.
The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. The WTTC estimates that travel and tourism supported 366 million jobs in 2025 (around 10.9% of global employment) and accounted for one in three new jobs created worldwide.
There are two types of employment in the tourism industry: direct and indirect.
Direct employment includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.
Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.
It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!
Contribution to local economies
The importance of international tourism can be further seen through the contributions to local economies.
All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy.
If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or volunteer tourism projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect.
Overall economy boost
International tourism can provide a significant boost to the wider economy.
This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place.
When tourists travel, they spend money. They pay for accommodation, eat in local restaurants, use local public transport and buy souvenirs and other goods. Every trip contributes to the economy of the destination and, through airlines, travel agents and tour operators, to the wider global economy.
For some towns, cities and even whole countries, the importance of international tourism is greater than for others. In some cases, it is the main source of income.
For example, tourism is the largest industry in the Maldives, accounting for more than a quarter of GDP and over 60% of the country’s foreign exchange receipts. Many other small island destinations, such as the Seychelles and much of the Caribbean, are similarly dependent on international visitors. In large, diversified economies such as the UK and the USA, tourism makes up a much smaller share of total GDP, even though the amounts of money involved are very large.
Other posts that you might be interested in:
–What is tourism? A definition of tourism
–The history of tourism
–The structure of the tourism industry
–Stakeholders in tourism
–Inbound tourism explained: What, why and where
–What is ABTA and how does it work?
–Outbound tourism | Understanding the basics
–Domestic tourism explained
–150 types of tourism
Value to society
The importance of international tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Some of the main social benefits of tourism are outlined below.
Preserving Local Culture
It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of international tourism.
Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…
Many destinations will make a concerted effort to preserve and protect the local culture. This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts.
Strengthening Communities
The importance of international tourism can also be demonstrated through the strengthening of communities.
Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.
The jobs created by international tourism can also be a great boost for the local community. Aside from the economic impacts created by improved employment prospects, stable jobs and incomes can improve wellbeing and quality of life for local residents.
Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.
Provision of Social Services
The importance of international tourism is shown through the provision of social services in the host community.
The international tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also.
Local people often gain new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism.
Commercialisation of Culture and Art
International tourism can give rise to many new commercial businesses, which can be a positive social impact of tourism. This can help to enhance community spirit, as people tend to have more disposable income as a result.
These businesses may also promote the local cultures and arts. Museums, shows and galleries are a fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.
Revitalisation of Culture and Art
Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example.
This may help promote traditions that may have become distant.
Preservation of Heritage
Another reason for the importance of international tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage.
This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful tourism planning and sustainable tourism management.
Empowering communities
International tourism can, if managed well, empower communities. While it is important to consider issues of authenticity in tourism, tourism can empower communities.
Small villages in remote areas are able to profit from selling their handmade goods, crafts and experiences to visitors. This income can improve living standards, health and education for local families.
Value to the environment
Whilst most media coverage involving international tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.
Protecting nature
Some people think that international tourism is what kills nature. While tourism can certainly damage the environment, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers.
Visitors can also take part in activities that help to protect the local environment, such as beach clean-ups, tree-planting projects and citizen science programmes. Tourism revenue, including national park entrance fees, helps to fund conservation in many parts of the world. When managed well, tourism can help the environment rather than harm it. Read more about the environmental impacts of tourism and ecotourism.
International tourism statistics
Tourism brings with it huge economic potential for a destination that wishes to develop their tourism industry. Employment, currency exchange, imports and taxes are just a few of the ways that tourism can bring money into a destination.
International tourism has grown rapidly over recent decades. International tourist arrivals rose from around 25 million in 1950 to almost 1.5 billion in 2019, fell sharply during the COVID-19 pandemic and have since recovered to record levels. There are a number of reasons for this growth, including improvements in technology, increases in disposable income, the growth of low-cost airlines and consumer desire to travel further, to new destinations and more often.
Here are some of the key international tourism statistics from UN Tourism and the WTTC:
- 1.52 billion international tourist arrivals were recorded in 2025, up 4% on 2024 (UN Tourism)
- International tourism receipts reached an estimated US$1.9 trillion in 2025, and total tourism export revenues, including passenger transport, were around US$2.2 trillion (UN Tourism)
- Europe is the world’s most visited region, with 793 million international arrivals in 2025, followed by Asia and the Pacific (331 million) and the Americas (218 million) (UN Tourism)
- Africa recorded the strongest growth of any region in 2025, with international arrivals up 8% (UN Tourism)
- Arrivals to the Middle East were around 39% above pre-pandemic levels in 2025 (UN Tourism)
- Travel and tourism contributed US$11.6 trillion to the global economy in 2025, equivalent to 9.8% of global GDP (WTTC)
- Travel and tourism supported 366 million jobs in 2025, around 10.9% of all jobs worldwide (WTTC)
For the latest data on international tourism, see UN Tourism World Tourism Barometer and the WTTC Economic Impact Research.
International tourism: Conclusion
International tourism is one of the world’s largest economic sectors, with more than 1.5 billion international arrivals each year. It brings significant benefits to economies, societies and the environment, although these benefits depend on careful tourism planning and management. The many components of tourism that make up the industry are integral to livelihoods the world over.
International tourism: FAQs
Below are answers to some of the most common questions about international tourism.
What is international tourism?
International tourism is travel to a country other than the one in which a person usually lives, for no more than one consecutive year, for leisure, business or other purposes.
What is the difference between international and domestic tourism?
International tourism involves crossing a national border, while domestic tourism takes place when residents travel within their own country.
How many international tourists are there each year?
UN Tourism recorded 1.52 billion international tourist arrivals in 2025, a new record and 4% more than in 2024.
Why is international tourism important?
International tourism brings foreign exchange, creates jobs, generates tax revenue and supports local businesses. It can also help to fund conservation and preserve culture and heritage when it is well managed.
Which region receives the most international tourists?
Europe receives the most international tourists, with 793 million arrivals in 2025, more than half of the global total.
What is the difference between inbound and outbound tourism?
Inbound tourism refers to international visitors arriving in a country, while outbound tourism refers to residents travelling abroad.
Further reading
- An Introduction to Tourism: a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
- The Business of Tourism Management: an introduction to key aspects of tourism, and to the practice of managing a tourism business.
- Tourism Management: An Introduction: gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.
