Tourism Market Size (2024 – 2030)

The Global Tourism Market was valued at USD 950 billion in 2023 and is projected to reach a market size of USD 1486.02 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.6%.

The United States, France, and other European countries are common tourism destinations and are world famous and have a growing economy. However, in recent years, some lesser-known Asian and African countries have become attractive destinations for foreign tourists. As a result, travel service providers around the world are rethinking their services to reap the economic benefits of this shift.

The emergence of new trends such as adventure tourism and art tourism will lead to the growth of the global tourism industry. Rock climbing, climbing, digging, canoeing, and other activities are examples of adventure activities that have made a significant contribution to the tourism industry in recent years. Secondly, using a travel website plays an important role in managing and earning any type of tourism. The proliferation of social networking sites is also expected to be effective in developing business operations.

Key Market Insights:

The tourism industry, at a level, is an ever-changing sector involving various offerings and experiences associated with travel and recreation. Although the COVID-19 pandemic has had an impact on this industry there are indications of its recovery, by the year 2023 with further growth expected in the years ahead.

According to the Tourism Industry Survey, culture and pilgrimage tourism are the fastest-growing sectors in Asia, Africa, and South America, while adventure and ecotourism are among the largest sectors mostly in North America and Europe. Unfortunately, the spread of diseases such as Ebola, SARS, and COVID-19 in some countries, along with regional conflicts, has greatly affected the travel industry all over the world.

In the Tourism market, 76% of total revenue will be generated through online sales by 2028.

Tourism Market Drivers:

The surge in disposable income fuels the market growth.

The rise of digital transformation and online access has presented new opportunities to the tourism industry. Online resources make it easy to book flights, and hotels, and find places to plan travel. 

An increase in disposable income increases the stability of the economy and humans tend to spend money on leisure activities such as travel. Families are more likely to plan vacations, increasing demand for travel and tourism. In 2022-2023, India's total domestic disposable income reached US$ 3,882.5 billion, an increase of 19.6% compared to the previous year. According to the Bureau of Economic Analysis, America's personal income increased by $48 billion in July 2023 (up 0.22% month-over-month). Therefore, increasing disposable income is also expected to increase revenue in the tourism industry during the forecast period.

Rise in Government Investment in the Tourism Sector.

The global travel industry is growing rapidly, especially after the lifting of the COVID-19 quarantine. The government is committed to promoting and increasing tourism. In India, the Ministry of Tourism, with the approval of the government, provides financial support to foreign travel agencies under the CSSS "Promoting Travel Agencies to Increase the Number of Tourists in India" program. These publications expand the great business of the travel and tourism industry.

Accessing remote and beautiful tourist destinations through online platforms and attracting the attention of tourists has made tourism an important activity in many countries. The number of international tourists to the United States increased from 29.2 million in 2023 to 34.5 million in 2024, according to the U.S. Department of Commerce. Additionally, the U.S. government is working to attract approximately 90 million international tourists who are expected to spend approximately $279 billion annually by 2027. The number of international visitors is expected to stimulate the travel and tourism sector.

Tourism Market Restraints and Challenges:

The rise in the cost of traveling and exploring restrains the Tourism market growth.

One of the main factors hindering the growth of the economy and tourism industry during the forecast period is the increase in the cost of research and development activities. Strict regulations issued by authorities to deal with the impact of COVID-19 will further affect the development of business culture.

The risk associated with traveling proves to be a huge challenge for travelers.

When a person goes to another country, there are risks of infection, theft, legal problems, etc. Moreover, some language restrictions also tend to decelerate the growth of the market during the forecast period.

Tourism Market Opportunities:

The Tourism market is brimming with opportunities. There are several areas where one can make a profit, some of them are as follows:

Finding the calm in the chaos.

Nowadays, most humans are stressed about work, life, etc. So, to bring peace to their mind they often tend to find places that resonate with their body and mind. Hence, if someone is doing full-time traveling, they can benefit from these scenarios They can start a vlogging community where they can highlight various places and encourage humans to visit those regions which in turn will boost the tourism sector. Also, they can create multiple pages on social media platforms for different types of locations like spiritual places, scenic locations, etc.

Technological advancements in this sector are gaining popularity.

With the rapid technological advancements, this sector provides ample opportunities to make a remarkable impact. AI will recommend places based on your travel history and also come up with locations specific to your mood. Not only it will recommend places on the travel history but also based on other activities if a human likes to do adventurous activities but likes only a particular type of food, AI will give you choices regarding that.  So, all these advancements in turn will boost the tourism sector.

People who are full-time travelers tend to shift from DSLR cameras to Drone shots as they will cover a wider area with relatively less effort. So manufacturers see this shift and to make a profit out of it they made it available for a cheaper price so that everyone can afford it.

TOURISM MARKET REPORT COVERAGE:

Tourism Market Segmentation by Travel Type

• Business Purpose

• Leisure Purpose

• Other Purpose

In 2023, based on the Travel Type, the Business Purpose segment is projected to grow at a CAGR of 4.86%. Businesses often provide mobility opportunities to their employees, fueling the growth of this segment.

Tourism Market Segmentation by Travel Days

• Within 8 days

• Between 8-15 days

• More than 15 days

In 2023, based on Travel Days, the Within 8 Days segment accounted for the largest revenue share with approximately 45% of the market. As People cannot travel for more than 7 days as they have work responsibilities, which further strengthens the growth of this segment. While other segments are expected to grow at a relatively lower CAGR than the prior segment.

Tourism Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia Pacific currently dominates the tourism industry and will account for 45% of the industry's revenue in 2023. China and India are the two most powerful countries in the region. BRICS countries are the target of international travel and tourism companies. Tourism is developing in China. International tourism entrepreneurs should benefit from the economic benefits provided by domestic and foreign trade to developing countries in the Asia-Pacific region. Thailand, Japan, Singapore, Vietnam, Indonesia, Malaysia, the Philippines, and South Korea are the most popular tourist destinations. After the end of the pandemic, ecotourism trends in terms of conservation, adventure, health, and wellness tourism continue.

Europe is expected to record the fastest growth during the forecast period. To increase tourism, regional governments are working with the tourism industry and other government agencies. This is an important factor affecting the European tourism world.

COVID-19 Impact Analysis on the Global Tourism Market:

The global travel industry has struggled in the wake of the COVID-19 pandemic, with revenue from travelers declining due to major closures of transportation options and travel delays. However, after the lockdown is lifted, the tourism sector is expected to restart in 2022 and return to its previous growth within one to two years.

Latest Trends/ Developments:

Bleisure is a growing travel mode where people expand their business into leisure activities. Experts predict that the mobile workforce will continue to grow. Even though the travel industry is starting to bounce back in 2022, bleisure is still seeing its future.  These bleisure trips can be arranged in advance and customers can also book holidays at the same time as business trips. Companies can also offer some travel opportunities to their employees during business trips.  On the other hand, it may also be an afterthought. Once meetings, professional meetings, and other events are over, business travelers may decide to extend their stay and explore their destination.  At the same time, there is also the growth of the Y generation as a result of "digital nomadism". Online entrepreneurs and freelancers adopt this lifestyle while working.

Another emerging trend is Transformative Travel. This type of travel isn't just about traveling, it's also about changing the lives of others and yourself. Volunteering trips are an example of popular experiences in this travel. Travelers take vacations and plan volunteer work at travel destinations. When it comes to changing their lifestyle, clients can choose to live healthily with retreats, take yoga classes, relax in nature, or learn new skills with a little practice. Due to this difference, the traveler's diet also varies greatly. People who are fond of organic food do not like to eat unhealthy food and prefer places where healthy and organic food is available.

Key Players:

1. Austin Adventures, Inc.

2. Butterfield & Robinson Inc.

3. G Adventures

4. Geographic Expeditions Inc.

5. Intrepid Group, ltd.

6. Mountain Travel Sobek

7. Discovery Nomads

8. Row Adventures

9. Tui Group

10. Cox & Kings Ltd.

• Hilton Worldwide Holdings Inc. plans to expand its presence in the Caribbean and Latin America in August 2022. The company aims to open its 200th hotel in the region by the end of 2022. The company also signed 15 new partnerships. The company announced plans to open 15 more hotels in the second half of 2022, increasing its total production pipeline to 105 projects with approximately 15,750 rooms.

• In August 2023, G Adventures added two new National Geographic family tours in Italy and Tanzania. An eight-day Tanzania family trip should take the family on a hunting trip in the Serengeti and include community visits throughout the trip.

• In July 2023, TUI Group launched a chatbot powered by ChatGPT on its UK app; This was the first wave of deployments expected to incorporate AI into enterprise technology to help customers search for their products.

• In February 2023, Adris announced plans to invest $511 million in the Maistra resort by 2025 to increase its luxury.