Should international tourism fear population aging

Increases in life expectancy and drops in fertility have slowly but steadily raised the fraction of the population in old-age. While this population aging phenomenon is not new, its speed has increased markedly over past decades in many countries. Given evidence of a decline in international travel with age late in life, should we expect a drop in international tourism, as population aging continues? The answer of this paper is: “no”. The medical progress which leads to longer lives also leads to healthier lives, which allows more old-age households to travel abroad. Furthermore, smaller family sizes make international travel more affordable. Among others, I find that a 1 year gain in life expectancy increases the number of worldwide international travels by 10%.