The tourism industry, also defined as the travel industry, is associated with the concept of people heading towards other places, either domestically or internationally, for recreation, cultural, or professional reasons. It is closely related to the hotel, hospitality, and transportation industries, a significant portion of it focused around keeping tourists happy, occupied, and quite well during their trip away from home. Tourism increases the economy of a region, also generates job opportunities, improves the infrastructure of the region, and raises communication between foreign and native citizens.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~3% |
Base Year Market Size (2023) |
~ USD 6 Billion |
Forecast Year Market Size (2035) |
~ USD 9 Billion |
Regional Scope |
|
Growth Drivers
Increasing Preference for Experiential Tours, Especially Among Millennials – The millennials are more attracted to experiential tours to experience the hotels, resorts, culture, and luxury. These tours are reasonable for what the company offers which includes all the facilities such as food, accommodation, and entertainment. Experiential tours can be on trains, ships, planes, or in territorial hotels. The expenditure on experiential tours as per 2022 estimations was more than 30% of 2019 statistics with 33% of spending on recreational activities.
Increasing Per Capita Income of the People in Low and Middle-Income Countries - Increasing per capita income across the globe is leading people to spend more for their recreational activities. For instance, the global GDP growth for the year 2022 was estimated to reach approximately 3%.
Growing Trend of Sustainable Tourism Owing to Increasing Concern of People About the Environment - As travelers strive to reduce the environmental impact of tourism, in such case, sustainable tourism has emerged as a growing trend. In 2021, the growth in the figure of people exploring sustainable travel options reached above 70%.
Surge in Socio-Economic Growth with Rising Number of Students Studying Abroad – Socio-economic growth is a procedure that focuses on social power in exact correlation to cultural level rises. Therefore, the relevance of tourism to socio-economic development and growth with an escalating number of national and foreign destinations is quite significant. According to the data released by the World Bank, in 2019, the number of arrivals in international tourism around the globe reached 2.4 billion.
Escalating Trend of Low-Cost Carriers (LCCs) as People are More Inclined Towards Low-Budget Travelling - Low-cost carriers are mainly cheap as compared to traditional airlines. As a result, people are more inclined to travel via these carriers to cut the cost of traveling. So far, LCC seat share on intra-European routes has increased throughout 2022. It is nearly 52% in the second week of April 2022, contrasted to 45% in the same week in 2019.
Outbreak of Fatal Diseases Such as Swine Flu, COVID-19, and Ebola
The rise of communicable diseases such as COVID-19, flu, and Ebola adversely affects the healthcare infrastructure of the world. The economy, socio-political and cultural environment was equally affected during the COVID-19 pandemic. The occurrence of swine flu killed between 800 to 1.5 billion. COVID-19 had more than 10% of infected cases be fatal. Also, it is discovered that migrants carried most of the infections. So, to cut off the spread government ceased all means of traveling which hinders the market growth.
Rising Natural Disasters Destroying the Economic Status of People
Surging Geopolitical Tension Across the World
The global tourism industry market is segmented and analyzed for demand and supply by purpose into adventure tourism, business, medical, conference or seminar, religious, educational tourism, and others. Out of these sub-segments, the medical segment is expected to obtain the highest share over the forecast period owing to the improvement, and restoration of tourists’ health through cost-effective healthcare facilities, the presence of skilled and experienced professionals, easy availability of infrastructure and medical equipment, and better treatment options available in other countries. For instance, the Australian government is estimated to spend over USD 100 billion in 2022–2023 to strengthen the nation's healthcare system.
Our in-depth analysis of the global Tourism Market includes the following segments:
By Type
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By Purpose |
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Regionally, the global Tourism Market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. Amongst these markets, the market in Europe is projected to hold the largest market share by the end of 2031 owing to the rising disposable income and growing technological and digital advancements. As per the data provided by the European Commission, cloud computing usage increased to 34% during the pandemic. Furthermore, 66% of populous places had 5G connectivity by the end of 2021. Furthermore, the presence of various historic sites in the region is also projected to propel the growth of the market over the forecast period.
Author Credits: Yashika Karodiwal, Radhika Gupta
Ans: Socio-economic capita income, the growing trend of sustainable tourism, and surge in socio economic growth are some major factors driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~3% over the forecast period, i.e., 2023 – 2035.
Ans: Outbreaks of fatal diseases such as swine flu, Ebola, and COVID-19, and rising natural disasters affecting the economy of people are the challenges affecting the market growth.
Ans: The market in North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are G Adventures, Inc., TUI AG, Balkan Holidays Limited, Accor Group, DuVine Cycling + Adventure Co., Gray & Co., American Express Company, Omega World Travel, Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, purpose, and by region.
Ans: The medical segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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