Global tourism industry set to touch $17.1 trn
Tourism made a swift recovery in Europe, declared as the safest continent to visit
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Asia, Africa and South America dominate cultural and pilgrimage tourism while North America and Europe witness strong growths in adventure and ecological tourism. Emerging trends in the market include medical tourism, arts tourism and adventure tourism
Future Market Insights has reported that the global tourism industry was valued at $10.5 trillion in 2022 and is expected to grow to $17.1 trillion by 2032, registering a compound annual growth rate of five per cent over the forecast period.
Region-wise, Asia, Africa, and South America dominate cultural and pilgrimage tourism while North America and Europe witness strong growths in adventure and ecological tourism. Emerging trends in the market include medical tourism, arts tourism and adventure tourism.
As reported by UN Tourism, international tourism started to return to pre-pandemic levels in 2023 as 235 million tourists traveled internationally in the first three months of the year. While the Middle East showed a strong recovery, Europe was successful in achieving 90% of pre-pandemic levels.
On September 15, 2023, Eurostat reported that this rebound was strong during the first half of 2023. The number of nights spent in tourist accommodations in the EU during this period was 11 million more than in the same period in 2019. The overnight stays also exceeded the statistics for 2022. All EU members witnessed this increase in overnight stays in 2023 except for Hungary which saw a minor decrease. Overnight stays increased the most in Slovakia, Cyprus, and Malta. In addition to foreign tourists, turnout of domestic visitors also increased as compared to 2022. Altogether, 2023 was a record year for Europe, with approximately three billion nights spent at tourist accommodation establishments in the region.
Regardless of inflation and rising costs of travel, tourism made a swift recovery in Europe. Europe is also deemed the safest continent to visit. This is evident from the fact that seven out of the top 10 most peaceful countries as reported by the Global Peace Index are situated in Europe. This builds the tourism market for Europe since safety is one of the primary concerns for those traveling. You can also take a look at some of the safest cities for solo female travelers and the safest countries for US travelers. Another unique aspect of the continent is that all the countries are located in close proximity which brings convenience for those who wish to see multiple cultures in a single region.
Companies accommodating tourists: As the inflow of tourists rises as in the case of Europe, hotel companies cater to the increasing demand for accommodation. Some of the most reputable and global hotel chains include Marriott International, Inc., Hilton Worldwide Holdings Inc., and InterContinental Hotels Group.
Marriott International, Inc. is an American multinational, which operates in the hospitality industry. The company operates and franchises hotels worldwide. On January 24, Marriott International, Inc. reported the planned expansion of its apartments by Marriott Bonvoy. The firm has signed agreements to set up its presence in the United States, Italy and Saudi Arabia. These new premium and luxury apartment-style accommodations will be fulfilling the diverse stay needs of the guests. Apart from convenient living spaces, they will be offering local designs.
Hilton Worldwide Holdings Inc. is another known hospitality firm based in the US. The company has more than 7,500 properties and has catered to over three billion guests in the past.
On January 25, Hilton Worldwide Holdings Inc. reported that Motto by Hilton has made its debut in South America by opening Motto by Hilton Cusco. The property is strategically located to enable the guests to feel the local culture while they are close to the landmarks. It is based on the Peruvian culture and will enable people to discover more about the city of Cusco's history. Guests can enjoy flexible stays, connecting room configurations for groups, and communal spaces inspired by the culture.
InterContinental Hotels Group (NYSE:IHG) is a British multinational hospitality firm. The firm continues to build a strong global presence. On January 24, InterContinental Hotels Group reported that it has signed its sixth Vignette Collection property in Thailand. This development adds to the company’s Luxury and Lifestyle portfolio and ensures that the varying traveler needs in the region will be fulfilled efficiently. The upcoming beachfront resort of 115 rooms and suites will be located on Nai Yang Beach in Phuket, a leading tourist spot. It will be a short drive away from Phuket Town and Phuket International Airport.
Thus, with the increase of tourists and the economic improvement of tourism globally, a large part of them are looking for sustainable experiences.
This is what will shape the future and the forecast of 17 trillion dollars by 2027.
