The ability of tourism destinations to withstand and recover from disruptions is becoming increasingly important as international travel reaches record levels, according to the Travel & Tourism Development Index (TTDI) 2026, developed by the World Economic Forum (WEF) in collaboration with Zurich Insurance.
The latest index evaluates 110 economies based on a broad range of factors, including infrastructure, policy and enabling conditions, services, sustainability and resilience. Rather than simply measuring tourist arrivals or travel spending, the index assesses the conditions that enable destinations to achieve sustainable and long-term travel growth.
International Travel Reaches Record Levels
Global tourism continued to expand in 2025, with a record 1.5 billion people travelling internationally. The travel and tourism sector contributed approximately US$11.6 trillion to the global economy. However, the strong growth in international travel is also increasing destinations’ exposure to a range of disruptions.
The report highlighted geopolitical tensions, economic volatility, climate-related events and digital outages as growing challenges for the global tourism industry. Such disruptions can affect not only destinations and travellers but also insurers, travel assistance providers and other businesses involved in managing travel risks.
Geopolitical and Climate Risks Put Pressure on Tourism
Recent disruptions to aviation linked to the conflict in Iran, as well as heatwaves and wildfires across parts of Europe and North America, were cited in the report as examples of how quickly tourism systems can come under pressure. According to the report, resilient destinations need to be capable of maintaining essential services, keeping travellers informed and mobile during disruptions, protecting critical infrastructure and restoring normal operations as quickly as possible.
Destination preparedness is also becoming increasingly important for maintaining traveller confidence following major disruptions. “ The places that plan for disruption recover faster and maintain travellers’ trust. That’s not just good risk management. It’s how you stay competitive,” said Cara Morton, CEO, Global Businesses and Operations at Zurich Insurance Group.
Japan Tops 2026 Tourism Development Index
Japan ranked first in the 2026 Travel & Tourism Development Index, followed by the United States, Spain, Australia, and France. Germany ranked sixth, while the United Kingdom placed seventh. China, Switzerland and Italy completed the top 10. The index found that travel development conditions improved across most of the economies assessed.
Ninety-two percent of the 110 economies recorded higher scores than in 2024. Albania recorded the largest improvement, followed by Vietnam and Laos. Asia Pacific featured prominently among the fastest-improving destinations, accounting for seven of the 10 economies with the greatest improvements.
Rising Demand Creates New Challenges
Despite improvements in tourism development conditions, the report warned that rapidly increasing demand is creating new pressures for destinations. Tourism-related prices have risen faster than general inflation in many markets, making travel less affordable. According to the index, 75% of the economies assessed have become less affordable for travellers.
Investment in travel infrastructure and capacity has also failed to keep pace with growing demand since 2022, while the global travel and tourism industry is projected to face a workforce shortfall of 43 million people by 2035. These challenges could affect the ability of destinations to provide adequate services as visitor numbers continue to rise.
Five Priorities for Tourism Resilience
The report identified five key priorities for strengthening the resilience of travel destinations. These include diversifying visitor demand across different markets and seasons, ensuring transport and digital infrastructure can continue operating during disruptions, improving service quality, supporting local communities, and strengthening the tourism workforce. The report emphasized that resilience should not be viewed solely as a response to crises. Instead, destinations need to incorporate preparedness into long-term tourism planning and investment.
Implications for Travel Risk and Insurance
The findings also have implications for the travel insurance and assistance sectors as rising visitor numbers increase exposure to potential disruptions. Extreme weather, geopolitical instability, infrastructure failures and other unexpected events can result in widespread travel disruption and increased demand for emergency assistance and insurance services. As international tourism continues to expand, the report suggests that destinations capable of preparing for disruptions, maintaining essential infrastructure and restoring traveller confidence quickly will be better positioned to support sustainable travel growth.
