The travel industry is experiencing a surge in growth after a long hiatus.

According to U.N. Tourism, the global travel industry is expected to fully recover from the Covid-19 pandemic this month.

In the first nine months of 2024, international arrivals worldwide were 98% of their pre-pandemic levels, compared to the same period in 2019, according to the data.

The organization predicts that the remaining 2% gap will close this month, signaling a significant shift in the industry towards a new era of growth.

The Middle East has experienced significant growth in international arrivals, with Qatar and Saudi Arabia leading the way.

The recovery of Africa and Europe is evident, with a 6% and 1% increase in arrivals, respectively, it stated.

This year, 97% (-3%) of international arrivals in the Americas are close, while Asia-Pacific is at 85% of pre-pandemic levels, as the region continues to bear the brunt of the slow return of Chinese travelers.

Epicenter of global growth

The Asia-Pacific region is currently experiencing slower international travel compared to other areas, but it is predicted to become the focal point of global travel expansion in the future.

The number of air passengers is predicted to increase significantly in the next two decades, from 8.69 billion in 2023 to 19.49 billion by 2042, as stated by Airports Council International Asia-Pacific and Middle East.

Over the next 20 years, it is predicted that the airport trade organization anticipates that more than one-third of new flyers will originate from three countries: China, India, and Indonesia.

In the next decade, the region is expected to see a surge in middle-class individuals, prompting hospitality companies to rapidly expand.

Hilton's Asia-Pacific President Alan Watts announced on "Squawk Box Asia" Monday that the company has achieved its goal of operating 1,000 hotels in the region, which it had initially expected to reach by 2025.

He stated that there are 200,000 bedrooms available for sale each night, and there are 915 hotels in various stages of construction in the pipeline.

In 2023, Hilton launched a premium economy brand called Spark by Hilton and announced a deal to open 150 hotels in India on Nov. 19.

"Watts stated that we have recently signed a deal in Vietnam for 14 mid-scale hotels, indicating the growing demand for mid-scale travel."

In November, Marriott International launched the first Four Points Flex by Sheraton in Japan. According to CEO Anthony Capuano, twelve more are set to open in Japan before the end of the year.

'Back with a vengeance'

The slow return of two types of travelers, namely Chinese outbound travelers and business travelers, has hindered global recovery.

But Watts said both are rebounding, albeit at different speeds.

"Business travel is back with a vengeance," he said.

He stated that booking trends for business travelers in Southeast Asia in the first half of 2024 were "absolutely great," and "next year is on track to be even better."

Chinese travelers have experienced a "tale of two halves" in 2024, as stated by him on "Squawk Box Asia."

In the first half of the year, consumer confidence was low, but in the second half, increased travel interest will positively affect bookings in Asia-Pacific, particularly in Japan, Korea, and Southeast Asia, according to Watts.

He stated that it is predicted that it will take until 2026 for the long-haul China market to recover and enter the U.S. and Europe markets.