For decades, the success of a tourism industry has been measured in simple terms: how many visitors arrived, how much money they spent, and how many jobs they created. But that narrow lens misses a lot. A destination can welcome millions of tourists and still struggle with environmental damage or poor working conditions. The World Travel & Tourism Council (WTTC) wants to change that with a new way of measuring tourism performance.
At the World Travel Market in London, the WTTC, alongside Oxford Economics and Oman's OMRAN Group, unveiled the Power, Efficiency & Opportunity (PEO) Indices. Covering 184 economies, this framework goes beyond traditional metrics to assess three interconnected dimensions: economic power, resource efficiency, and social opportunity. The goal is to give governments, investors, and industry leaders a fuller picture of where tourism truly thrives.
Power Still Concentrated in a Few Hands
The Power Index measures the sheer scale of tourism's economic contribution. Unsurprisingly, the biggest economies dominate. The United States, China, and India top the list, followed by Germany, France, the UK, Japan, Mexico, Spain, and Saudi Arabia. Together, the top 20 economies account for 81% of global travel and tourism GDP in 2024. But the index also reveals that some smaller players punch above their weight in employment or investment relative to their size.
Where Growth Meets Green
The Environmental Efficiency Index looks at how much environmental footprint a country's tourism sector leaves behind, relative to its economic output. It tracks greenhouse gas emissions, low-carbon energy use, water consumption, air pollution, and materials use. The good news? Global environmental efficiency improved between 2019 and 2024, with the overall score rising by 2.3 points. Sweden leads among high-income economies, while Costa Rica tops the upper-middle-income group. This suggests that economic growth and sustainability can go hand in hand, though the report cautions that improved efficiency doesn't necessarily mean total emissions have fallen.
Opportunity Beyond the Job Count
The Opportunity Index digs deeper than just counting jobs. It examines employment growth, social inclusion, and opportunities for women and young people. Croatia ranks first among high-income economies, while the Maldives leads the upper-middle-income group. El Salvador and The Gambia are the top performers in the lower-middle-income and low-income categories, respectively. These results highlight tourism's capacity to create meaningful work across different economies, though the index doesn't measure wages, job security, or working conditions.
So what does this mean for travelers? It's a reminder that the places we visit are more than just numbers on a brochure. A destination that scores well on the PEO indices is likely to offer a more responsible and rewarding experience. For example, if you're planning a trip to Europe, you might consider how the continent's new tourism strategy aligns with these goals. Europe's first-ever tourism strategy aims to balance growth with sustainability, which could shape your next vacation.
Similarly, if you're looking for destinations that prioritize social opportunity, consider places like Croatia or the Maldives, which are leading the way in creating inclusive tourism jobs. And for those concerned about environmental impact, Sweden and Costa Rica offer models of how tourism can thrive while protecting natural resources.
The WTTC's new indices are a step toward a more holistic understanding of tourism. But as with any framework, their real value depends on how they're used. Governments and industry leaders will need to act on these insights to foster truly sustainable and equitable growth. For travelers, it's an invitation to look beyond the glossy ads and consider the bigger picture. After all, the places we love to visit deserve more than just a passing glance. This summer's tourism mishaps show what happens when we don't think about our impact.
As the world of travel evolves, so too must our measures of success. The PEO indices offer a fresh perspective, one that values people and the planet alongside profit. Whether you're a traveler, a policymaker, or an industry insider, it's worth paying attention to these new benchmarks. They might just change the way you see the world.
