The World Travel & Tourism Council (WTTC), in partnership with OMRAN Group, has launched its inaugural Power, Efficiency & Opportunity (PEO) Indices, introducing a new framework to assess the economic, environmental and social performance of the global Travel & Tourism sector across 184 economies.

Unveiled at World Travel Market (WTM) London, the indices were developed by WTTC and Oxford Economics to provide a broader assessment of tourism performance, moving beyond traditional indicators such as visitor numbers and economic contribution.

The framework examines three interconnected dimensions: the economic power of tourism, the efficiency with which destinations use resources and manage their environmental footprint, and the employment and social opportunities generated by the sector.

The indices aim to provide governments, investors and industry leaders with a more comprehensive tool for benchmarking destinations, identifying performance gaps, guiding investment decisions and supporting sustainable and resilient tourism growth.

The Travel & Tourism Power Index measures the sector's economic scale and influence through GDP contribution, employment and investment.

According to the findings, tourism's economic power remains concentrated among a relatively small number of economies, with the top 20 accounting for 81% of global Travel & Tourism GDP in 2024.

The United States, China and India ranked as the world's most powerful tourism economies, reflecting their economic scale, employment contribution and investment levels.

Germany, France, the United Kingdom, Japan, Mexico, Spain and Saudi Arabia completed the top 10.

The research also identified differences in how destinations perform across individual indicators, with some countries recording stronger results in tourism investment or employment relative to their overall economic contribution.

However, the findings highlight that economic scale does not necessarily translate into stronger environmental performance or greater employment opportunities. Countries leading the Power Index do not automatically rank highest in the other two categories, reinforcing the importance of assessing tourism performance across all three dimensions.

The Environmental Efficiency Index evaluates the sector's environmental footprint relative to the economic activity it generates, covering greenhouse gas emissions, low-carbon energy use, water consumption, air pollution and materials efficiency.

One of the key findings was an improvement in global environmental efficiency between 2019 and 2024. The sector's overall score increased by 2.3 points, supported by progress across several indicators.

The low-carbon energy component improved by 6.7 points, while greenhouse gas intensity recorded a 3.9-point improvement, indicating that tourism activity is becoming less environmentally intensive in a number of destinations.

The findings suggest that economic expansion and environmental sustainability can advance together through long-term policy measures, stronger environmental standards and investment in clean energy infrastructure.

Sweden ranked first among high-income economies in environmental efficiency, while Costa Rica led the upper-middle-income category, demonstrating that environmental leadership is not limited to countries at a particular stage of economic development.

The third measure, the Opportunity Index, assesses tourism's contribution to social development and inclusion through its share of national employment, employment growth, youth participation and female employment.

The findings highlight Travel & Tourism's role as an important source of employment and an accessible entry point into the labour market, particularly for women and young people.

Croatia ranked first among high-income economies, while the Maldives led the upper-middle-income group. El Salvador and The Gambia topped the lower-middle-income and low-income categories, respectively.

In destinations such as the Maldives, Grenada and Belize, tourism accounts for a particularly significant share of national employment, underlining its contribution to inclusive economic growth and job creation.

WTTC President and CEO Gloria Guevara said: “Travel & Tourism is one of the world’s most powerful sectors, and these new Indices give us a broader and more holistic way to understand its impact. As the sector grows, we must focus on quality as well as quantity of growth. By assessing economic contribution, environmental efficiency and employment opportunities together, the Indices provide valuable insights to support sustainable growth and informed decision-making, while highlighting the sector’s ability to create opportunities for women and young people around the world.”

Ayad Al Balushi, CEO of OMRAN Group, said: “The PEO Indices represent an important step forward in how we define and measure tourism success, looking beyond growth to the efficiency, opportunity and lasting value the sector creates. OMRAN Group is proud to partner with WTTC in advancing this global perspective and supporting more informed decision-making across the sector. The findings reinforce our shared ambition to shape a future where tourism is economically strong, environmentally responsible and inclusive, creating meaningful and sustainable value for destinations, communities and future generations.”

Oman's tourism performance

The research also highlights Oman's progress in tourism development, with the country's 2024 scores across all three PEO dimensions improving compared with 2019.

Oman demonstrated particularly strong performance in employment opportunities, with women accounting for 28% of jobs in the Travel & Tourism sector, compared with 18% across the Middle East.

Young people represent 13% of Oman's tourism workforce, compared with less than 9% of employment across the wider national economy, highlighting the sector's contribution to creating opportunities for the next generation.

The country's tourism power has been supported by growth in its GDP contribution and employment, while improvements in environmental efficiency reflect progress in areas including water consumption, air pollution and materials use.

The findings are particularly relevant as Oman continues to pursue economic diversification and strengthen tourism's contribution to long-term development.

For OMRAN Group, the indices provide a framework for assessing the relationship between tourism investment, destination development and sustainability, helping inform decisions that deliver economic benefits while improving environmental performance and supporting local communities.

The partnership between WTTC and OMRAN Group reflects a shared focus on using data and research to guide tourism development, with the new indices intended to help destinations balance economic growth, environmental responsibility and social inclusion.

By measuring these dimensions together, the PEO framework seeks to offer a more complete understanding of tourism competitiveness, recognising that the sector's long-term success depends not only on its economic contribution but also on how efficiently it operates and the opportunities it creates for communities. -TradeArabia News Service