Economic and geopolitical headwinds continue to pose significant risks.
• The latest Panel of Tourism Experts survey points to economic factors including weaker economic growth, high travel costs and the recent increase in tariffs as the main challenges that could impact international tourism in 2025. • The increase in tariffs was ranked as the third major concern by the Panel in the May 2025 survey. Tariffs are taxes on imported goods and as such, can lead to higher consumer prices and thus put pressure on household consumption expenditure as well as disrupt global value chains. • Uncertainty from growing geopolitical and trade tensions are also weighing on travel confidence. Lower consumer confidence was ranked fourth among the factors expected to affect tourism this year, while geopolitical risks (aside from ongoing conflicts) ranked fifth. • According to the survey, tourists will continue to seek value for money but could also travel closer to home and make shorter trips to spend less, in response to elevated prices. Cautious op...

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