Reimagining the $9 trillion tourism economy—what will it take?
Tourism made up 10 percent of global GDP in 2019 and was worth almost $9 trillion, 1 See “Economic impact reports,” World Travel & Tourism Council (WTTC), wttc.org. making the sector nearly three times larger than agriculture. However, the tourism value chain of suppliers and intermediaries has always been fragmented, with limited coordination among the small and medium-size enterprises (SMEs) that make up a large portion of the sector. Governments have generally played a limited role in the industry, with partial oversight and light-touch management.
COVID-19 has caused an unprecedented crisis for the tourism industry. International tourist arrivals are projected to plunge by 60 to 80 percent in 2020, and tourism spending is not likely to return to precrisis levels until 2024. This puts as many as 120 million jobs at risk. 2 “International tourist numbers could fall 60-80% in 2020, UNWTO reports,” World Tourism Organization, May 7, 2020, unwto.org.
Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive for tourists, and economically viable will require coordination at a level not seen before. The public sector may be best placed to oversee this process in the context of the fragmented SME ecosystem, large state-owned enterprises controlling entry points, and the increasing impact of health-related agencies. As borders start reopening and interest in leisure rebounds in some regions , governments could take the opportunity to rethink their role within tourism, thereby potentially both assisting in the sector’s recovery and strengthening it in the long term.
In this article, we suggest four ways in which governments can reimagine their role in the tourism sector in the context of COVID-19.
1. Streamlining public–private interfaces through a tourism nerve center
Before COVID-19, most tourism ministries and authorities focused on destination marketing, industry promotions, and research. Many are now dealing with a raft of new regulations, stimulus programs, and protocols. They are also dealing with uncertainty around demand forecasting, and the decisions they make around which assets—such as airports—to reopen will have a major impact on the safety of tourists and sector employees.
Coordination between the public and private sectors in tourism was already complex prior to COVID-19. In the United Kingdom, for example, tourism falls within the remit of two departments—the Department for Business, Energy, and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media & Sport (DCMS)—which interact with other government agencies and the private sector at several points. Complex coordination structures often make clarity and consistency difficult. These issues are exacerbated by the degree of coordination that will be required by the tourism sector in the aftermath of the crisis, both across government agencies (for example, between the ministries responsible for transport, tourism, and health), and between the government and private-sector players (such as for implementing protocols, syncing financial aid, and reopening assets).
Concentrating crucial leadership into a central nerve center is a crisis management response many organizations have deployed in similar situations. Tourism nerve centers, which bring together public, private, and semi-private players into project teams to address five themes, could provide an active collaboration framework that is particularly suited to the diverse stakeholders within the tourism sector (Exhibit 1).
We analyzed stimulus packages across 24 economies, 3 Australia, Bahrain, Belgium, Canada, Egypt, Finland, France, Germany, Hong Kong, Indonesia, Israel, Italy, Kenya, Malaysia, New Zealand, Peru, Philippines, Singapore, South Africa, South Korea, Spain, Switzerland, Thailand, and the United Kingdom. which totaled nearly $100 billion in funds dedicated directly to the tourism sector, and close to $300 billion including cross-sector packages with a heavy tourism footprint. This stimulus was generally provided by multiple entities and government departments, and few countries had a single integrated view on beneficiaries and losers. We conducted surveys on how effective the public-sector response has been and found that two-thirds of tourism players were either unaware of the measures taken by government or felt they did not have sufficient impact. Given uncertainty about the timing and speed of the tourism recovery, obtaining quick feedback and redeploying funds will be critical to ensuring that stimulus packages have maximum impact.
2. Experimenting with new financing mechanisms
Most of the $100 billion stimulus that we analyzed was structured as grants, debt relief, and aid to SMEs and airlines. New Zealand has offered an NZ $15,000 (US $10,000) grant per SME to cover wages, for example, while Singapore has instituted an 8 percent cash grant on the gross monthly wages of local employees. Japan has waived the debt of small companies where income dropped more than 20 percent. In Germany, companies can use state-sponsored work-sharing schemes for up to six months, and the government provides an income replacement rate of 60 percent.
Our forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. This prolonged period of low demand means that the way tourism is financed needs to change. The aforementioned types of policies are expensive and will be difficult for governments to sustain over multiple years. They also might not go far enough. A recent Organisation for Economic Co-operation and Development (OECD) survey of SMEs in the tourism sector suggested more than half would not survive the next few months, and the failure of businesses on anything like this scale would put the recovery far behind even the most conservative forecasts. 4 See Tourism policy responses to the coronavirus (COVID-19), OECD, June 2020, oecd.org. Governments and the private sector should be investigating new, innovative financing measures.
Revenue-pooling structures for hotels
One option would be the creation of revenue-pooling structures, which could help asset owners and operators, especially SMEs, to manage variable costs and losses moving forward. Hotels competing for the same segment in the same district, such as a beach strip, could have an incentive to pool revenues and losses while operating at reduced capacity. Instead of having all hotels operating at 20 to 40 percent occupancy, a subset of hotels could operate at a higher occupancy rate and share the revenue with the remainder. This would allow hotels to optimize variable costs and reduce the need for government stimulus. Non-operating hotels could channel stimulus funds into refurbishments or other investment, which would boost the destination’s attractiveness. Governments will need to be the intermediary between businesses through auditing or escrow accounts in this model.
Joint equity funds for small and medium-size enterprises
Government-backed equity funds could also be used to deploy private capital to help ensure that tourism-related SMEs survive the crisis (Exhibit 2). This principle underpins the European Commission’s temporary framework for recapitalization of state-aided enterprises, which provided an estimated €1.9 trillion in aid to the EU economy between March and May 2020. 5 See “State aid: Commission expands temporary framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak,” European Commission, May 8, 2020, ec.europa.eu. Applying such a mechanism to SMEs would require creating an appropriate equity-holding structure, or securitizing equity stakes in multiple SMEs at once, reducing the overall risk profile for the investor. In addition, developing a standardized valuation methodology would avoid lengthy due diligence processes on each asset. Governments that do not have the resources to co-invest could limit their role to setting up those structures and opening them to potential private investors.
3. Ensuring transparent, consistent communication on protocols
The return of tourism demand requires that travelers and tourism-sector employees feel—and are—safe. Although international organizations such as the International Air Transport Association (IATA), and the World Travel & Tourism Council (WTTC) have developed a set of guidelines to serve as a baseline, local regulators are layering additional measures on top. This leads to low levels of harmonization regarding regulations imposed by local governments.
Our surveys of traveler confidence in the United States suggests anxiety remains high, and authorities and destination managers must work to ensure travelers know about, and feel reassured by, protocols put in place for their protection. Our latest survey of traveler sentiment in China suggests a significant gap between how confident travelers would like to feel and how confident they actually feel; actual confidence in safety is much lower than the expected level asked a month before.
One reason for this low level of confidence is confusion over the safety measures that are currently in place. Communication is therefore key to bolstering demand. Experience in Europe indicates that prompt, transparent, consistent communications from public agencies have had a similar impact on traveler demand as CEO announcements have on stock prices. Clear, credible announcements regarding the removal of travel restrictions have already led to increased air-travel searches and bookings. In the week that governments announced the removal of travel bans to a number of European summer destinations, for example, outbound air travel web search volumes recently exceeded precrisis levels by more than 20 percent in some countries.
The case of Greece helps illustrate the importance of clear and consistent communication. Greece was one of the first EU countries to announce the date of, and conditions and protocols for, border reopening. Since that announcement, Greece’s disease incidence has remained steady and there have been no changes to the announced protocols. The result: our joint research with trivago shows that Greece is now among the top five summer destinations for German travelers for the first time. In July and August, Greece will reach inbound airline ticketing levels that are approximately 50 percent of that achieved in the same period last year. This exceeds the rate in most other European summer destinations, including Croatia (35 percent), Portugal (around 30 percent), and Spain (around 40 percent). 6 Based on IATA Air Travel Pulse by McKinsey. In contrast, some destinations that have had inconsistent communications around the time frame of reopening have shown net cancellations of flights for June and July. Even for the high seasons toward the end of the year, inbound air travel ticketing barely reaches 30 percent of 2019 volumes.
Digital solutions can be an effective tool to bridge communication and to create consistency on protocols between governments and the private sector. In China, the health QR code system, which reflects past travel history and contact with infected people, is being widely used during the reopening stage. Travelers have to show their green, government-issued QR code before entering airports, hotels, and attractions. The code is also required for preflight check-in and, at certain destination airports, after landing.
4. Enabling a digital and analytics transformation within the tourism sector
Data sources and forecasts have shifted, and proliferated, in the crisis. Last year’s demand prediction models are no longer relevant, leaving many destinations struggling to understand how demand will evolve, and therefore how to manage supply. Uncertainty over the speed and shape of the recovery means that segmentation and marketing budgets, historically reassessed every few years, now need to be updated every few months. The tourism sector needs to undergo an analytics transformation to enable the coordination of marketing budgets, sector promotions, and calendars of events, and to ensure that products are marketed to the right population segment at the right time.
Governments have an opportunity to reimagine their roles in providing data infrastructure and capabilities to the tourism sector, and to investigate new and innovative operating models. This was already underway in some destinations before COVID-19. Singapore, for example, made heavy investments in its data and analytics stack over the past decade through the Singapore Tourism Analytics Network (STAN), which provided tourism players with visitor arrival statistics, passenger profiling, spending data, revenue data, and extensive customer-experience surveys. During the COVID-19 pandemic, real-time data on leading travel indicators and “nowcasts” (forecasts for the coming weeks and months) could be invaluable to inform the decisions of both public-sector and private-sector entities.
This analytics transformation will also help to address the digital gap that was evident in tourism even before the crisis. Digital services are vital for travelers: in 2019, more than 40 percent of US travelers used mobile devices to book their trips. 7 Global Digital Traveler Research 2019, Travelport, marketing.cloud.travelport.com; “Mobile travel trends 2019 in the words of industry experts,” blog entry by David MacHale, December 11, 2018, blog.digital.travelport.com. In Europe and the United States, as many as 60 percent of travel bookings are digital, and online travel agents can have a market share as high as 50 percent, particularly for smaller independent hotels. 8 Sean O’Neill, “Coronavirus upheaval prompts independent hotels to look at management company startups,” Skift, May 11, 2020, skift.com. COVID-19 is likely to accelerate the shift to digital as travelers look for flexibility and booking lead times shorten: more than 90 percent of recent trips in China were booked within seven days of the trip itself. Many tourism businesses have struggled to keep pace with changing consumer preferences around digital. In particular, many tourism SMEs have not been fully able to integrate new digital capabilities in the way that larger businesses have, with barriers including language issues, and low levels of digital fluency. The commission rates on existing platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.
Governments are well-positioned to overcome the digital gap within the sector and to level the playing field for SMEs. The Tourism Exchange Australia (TXA) platform, which was created by the Australian government, is an example of enabling at scale. It acts as a matchmaker, connecting suppliers with distributors and intermediaries to create packages attractive to a specific segment of tourists, then uses tourist engagement to provide further analytical insights to travel intermediaries (Exhibit 3). This mechanism allows online travel agents to diversify their offerings by providing more experiences away from the beaten track, which both adds to Australia’s destination attractiveness, and gives small suppliers better access to customers.
Governments that seize the opportunity to reimagine tourism operations and oversight will be well positioned to steer their national tourism industries safely into—and set them up to thrive within—the next normal.
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Margaux Constantin is an associate partner in McKinsey’s Dubai office, Steve Saxon is a partner in the Shanghai office, and Jackey Yu is an associate partner in the Hong Kong office.
The authors wish to thank Hugo Espirito Santo, Urs Binggeli, Jonathan Steinbach, Yassir Zouaoui, Rebecca Stone, and Ninan Chacko for their contributions to this article.
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International tourism growth continues to outpace the global economy
- All Regions
- 20 Jan 2020
1.5 billion international tourist arrivals were recorded in 2019, globally. A 4% increase on the previous year which is also forecast for 2020, confirming tourism as a leading and resilient economic sector, especially in view of current uncertainties. By the same token, this calls for such growth to be managed responsibly so as to best seize the opportunities tourism can generate for communities around the world.
According to the first comprehensive report on global tourism numbers and trends of the new decade, the latest UNWTO World Tourism Barometer, this represents the tenth consecutive year of growth.
All regions saw a rise in international arrivals in 2019. However, uncertainty surrounding Brexit, the collapse of Thomas Cook, geopolitical and social tensions and the global economic slowdown all contributed to a slower growth in 2019, when compared to the exceptional rates of 2017 and 2018. This slowdown affected mainly advanced economies and particularly Europe and Asia and the Pacific.
Looking ahead, growth of 3% to 4% is predicted for 2020, an outlook reflected in the latest UNWTO Confidence Index which shows a cautious optimism: 47% of participants believe tourism will perform better and 43% at the same level of 2019. Major sporting events, including the Tokyo Olympics, and cultural events such as Expo 2020 Dubai are expected to have a positive impact on the sector.
Presenting the results, UNWTO Secretary-General Zurab Pololikashvili stressed that “in these times of uncertainty and volatility, tourism remains a reliable economic sector”. Against the backdrop of recently downgraded global economic perspectives, international trade tensions, social unrest and geopolitical uncertainty, “our sector keeps outpacing the world economy and calling upon us to not only grow but to grow better”, he added.
Given tourism’s position as a top export sector and creator of employment, UNWTO advocates the need for responsible growth. Tourism has, therefore, a place at the heart of global development policies, and the opportunity to gain further political recognition and make a real impact as the Decade of Action gets underway, leaving just ten years to fulfill the 2030 Agenda and its 17 Sustainable Development Goals.
The Middle East leads
The Middle East has emerged as the fastest-growing region for international tourism arrivals in 2019, growing at almost double the global average (+8%). Growth in Asia and the Pacific slowed down but still showed above-average growth, with international arrivals up 5%.
Europe where growth was also slower than in previous years (+4%) continues to lead in terms of international arrivals numbers, welcoming 743 million international tourists last year (51% of the global market). The Americas (+2%) showed a mixed picture as many island destinations in the Caribbean consolidated their recovery after the 2017 hurricanes while arrivals fell in South America due partly to ongoing social and political turmoil. Limited data available for Africa (+4%) points to continued strong results in North Africa (+9%) while arrivals in Sub-Saharan Africa grew slower in 2019 (+1.5%).
Tourism spending still strong
Against a backdrop of global economic slowdown, tourism spending continued to grow, most notably among the world’s top ten spenders. France reported the strongest increase in international tourism expenditure among the world’s top ten outbound markets (+11%), while the United States (+6%) led growth in absolute terms, aided by a strong dollar.
However, some large emerging markets such as Brazil and Saudi Arabia reported declines in tourism spending. China, the world’s top source market saw outbound trips increase by 14% in the first half of 2019, though expenditure fell 4%.
Tourism delivering ‘much-needed opportunities’
“The number of destinations earning US$1 billion or more from international tourism has almost doubled since 1998,” adds Mr Pololikashvili. “The challenge we face is to make sure the benefits are shared as widely as possible and that nobody is left behind. In 2020, UNWTO celebrates the Year of Tourism and Rural Development , and we hope to see our sector lead positive change in rural communities, creating jobs and opportunities, driving economic growth and preserving culture.”
This latest evidence of the strength and resilience of the tourism sector comes as the UN celebrates its 75th anniversary . During 2020, through the UN75 initiative the UN is carrying out the largest, most inclusive conversation on the role of global cooperation in building a better future for all, with tourism to be high on the agenda.
- Download Excerpt of World Tourism Barometer, January 2020 (PDF)
- UNWTO World Tourism Barometer Nº18 January 2020
- Tourism in the 2030 Agenda
- Presentation (PDF)
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By Bastian Herre, Veronika Samborska and Max Roser
Tourism has massively increased in recent decades. Aviation has opened up travel from domestic to international. Before the COVID-19 pandemic, the number of international visits had more than doubled since 2000.
Tourism can be important for both the travelers and the people in the countries they visit.
For visitors, traveling can increase their understanding of and appreciation for people in other countries and their cultures.
And in many countries, many people rely on tourism for their income. In some, it is one of the largest industries.
But tourism also has externalities: it contributes to global carbon emissions and can encroach on local environments and cultures.
On this page, you can find data and visualizations on the history and current state of tourism across the world.
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Mapping the Tourism Industry Around the World
Despite signs of a global economic slowdown, it seems that there is no stop on tourism growth . For many individuals, traveling is an ideal way to experience new cultures, meet new people, and broaden horizons. At the same time, tourism is a major component of the economy for many countries. Our new visualization takes a look at which countries reap the greatest benefits from tourist spending.
- In 2018, the global tourism industry was worth $1.7 trillion.
- Revenues generated from tourists have grown faster than the world economy.
- The Asia-Pacific region saw the greatest growth in tourist spending, with a 7% increase year-over-year.
- At $570 billion, Europe is the region with the most tourist spending in 2018.
The visualization and trends are based on a report released by the UN World Tourism Organization . The map above shows the biggest international tourism receipts (tourist spending) in 2018. Each country is proportional to the value of its tourism receipts. Countries that attract more tourism receipts (such as the U.S. and Spain) appear larger, while countries that have fewer tourism receipts (such as El Salvador) appear smaller. We also color-coded the countries by region, as shown in the map legend. All monetary values are expressed in USD.
Top 10 Tourist Destinations by Money Spent
1. United States - $214 billion 2. Spain - $74 billion 3. France - $67 billion 4. Thailand - $63 billion 5. United Kingdom - $52 billion 6. Italy - $49 billion 7. Australia - $45 billion 8. Germany - $43 billion 9. Japan - $41 billion 10. China - $40 billion
Popular tourist destinations are subject to changes due to a variety of factors. Notably, media trends have surged to shape the new attractive destinations for tourists. For example, the UK city of Birmingham has seen a dramatic increase in tourism due to the popularity of the British drama “Peaky Blinders,” which takes place in the Midlands city. In addition, the political situation within a city can play a major role on its tourist performance, as shown by the negative effects that political protests have had on Hong Kong’s tourism industry. While developed countries in the West tend to have the highest tourist spending, developing countries like India are also gaining a larger share of tourism dollars. It is yet to be seen how fast-developing countries will reshape the tourist landscape in the future.
Finally, not everybody is happily welcoming tourists in their home city and concerns about overtourism abound. Being a courteous traveler and respecting the local culture will go a long way toward providing not only economic benefits to different countries, but also fostering international goodwill.
What country is next on your travel list? Please let us know in the comments.
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- Tourism Revenue By Country
Tourism plays an important role in the economy and it is a major source of revenue for most countries around the world. Countries have invested in tourist attraction sites and infrastructure within their countries to attract both domestic and international tourists. International tourists account for more than 50% of revenue earned from tourism in most countries. An expense incurred by inbound international visitors on goods and services and sometimes passenger items received in the country visited is referred to as international tourism receipt. These payments may include airfare, accommodation fees, shopping fee, money spent on food, and entrance fee paid for public facilities.
Countries Earning The Most From International Tourism
International tourism is an important part of international trade in the United States . The range of tourist attraction sites, including parks, museums, historical sites, hotels, recreation centers, gambling, and sports venues, are among the factors that are responsible for an increase in international tourist receipt in the US. The majority of the international tourists came from Mexico , Canada , and the UK.
Spain is the second highest earning country in the world when it comes to tourism. The number of international tourists visiting Spain have increased over the years. Environmental factors such as favorable weather, romantic coastline, beaches, and the 44 world heritage sites were significant factors that influenced the arrival of international tourists in Spain.
The United Kingdom (UK) earns the third highest amount from tourism in the world. The majority of those who visited the UK went for holiday, business, and studies. London was the most visited city in the UK with Manchester following closely. Some of the famous sites most frequently visited include the British Museum, the National Gallery, Tower of London, and the Science Museum.
Foreign Tourists Serve as an Economic Boost
International tourism is a major source of revenue that directly affects the growth of a country’s economy. The revenue generated from tourism can be used to develop other sectors of the economy such as transport, health, and education. International tourism has also opened up employment in most countries especially in the local communities. France recorded a total of 1.2 million jobs created as a result of tourism leading to the further generation of revenue through taxes. Hotels have also been built to meet the high demand for accommodation in the visited countries. International relations have also been strengthened through international tourism.
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List of Countries by Tourism Income
Below you can find a list of countries by total tourism income and ratio of tourism income by total GDP. You can also find an interactive map below where each country is colored by its tourism income. The ratio of tourism income to the total GDP gives a rough figure which economies are most dependent on tourism income.
- United States of America has the highest total tourism income with over 210 billion $ yearly. This huge figure however is only 1.1% of the country's total GDP
- Spain has the second largest tourism income in the World with almost 68 billion $ yearly, making up tourism 5.2% of the total economy.
- Another Mediterranean country, France, is the third on the list with over 60 billion yearly tourism income.
- It is no wonder that the popular holiday destination Maldives is the leader when it comes to share of tourism in the total GDP. 2.7 billion $ tourism income of Maldives makes up 60% of the country's total GDP.
- Palau and Grenada, two island countries of Caribbeans, come second and third after Maldives. Palau with 141 million $ and Granada with 448 million $ obtain respectively 48% and 40% of their GDP by tourism.
Countries by Number of Incoming Tourists
- UNWTO - World Tourism Organization
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Internal tourism revenue 2019-2024, by type
Distribution of internal tourism revenue worldwide from 2019 to 2024, by type (in billion u.s. dollars).
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2019 and 2020
Total internal tourism revenue is defined as the revenues of a country generated by domestic and inbound international tourists through the acquisition of consumer goods, services, and valuables for and during trips. A country's luxury tourism revenue is defined as income generated by domestic and inbound international high-net-worth individuals (HNWIs) through the acquisition of consumer goods, services, and valuables for and during trips. HNWIs have net assets over one million U.S. dollars. Figures have been rounded.
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- Premium Statistic Internal tourism revenue of trending destinations 2024, by market
- Basic Statistic Global inbound tourism by mode of transport 2019
- Basic Statistic Contribution of China's travel and tourism industry to GDP 2014-2023
- Premium Statistic Middle Eastern countries with the largest international tourism receipts 2018
- Premium Statistic Music tourist spending at concerts and festivals in the United Kingdom (UK) 2012-2016
- Basic Statistic Importance of BRICS countries to UK tourism businesses 2011
- Basic Statistic Growth of inbound spending in the U.S. using foreign visa credit cards
- Premium Statistic Most visited destinations by international tourists in Turkey 2019-2022
- Premium Statistic Cuba: number of cruise visitors 2017-2018
- Basic Statistic Number of overseas arrivals to the U.S. 2011-2025
- Premium Statistic Share of inbound stopover visitor arrivals in Jamaica 2021, by lodging type
- Premium Statistic Inbound tourism spending in Sweden 2015-2020
- Premium Statistic Tourist overnight stays in Denmark 2019-2021, by month
- Premium Statistic Inbound tourist arrivals for personal purposes in Ireland 2007-2019
- Basic Statistic Decrease in overnight stays of international tourists due to COVID-19 in Finland 2020
- Basic Statistic Number of overnight visitors APAC 2018, by city
- Basic Statistic Distribution of travel and tourism expenditure in the UK 2019-2022, by tourist type
- Premium Statistic Tourist arrivals in the Italian region of Sicily 2019-2022, by province
- Premium Statistic Tourist overnight stays in the Italian region of Sicily 2019-2022, by province
- Premium Statistic Leading inbound tourist markets in the Ionian Islands, Greece 2019-2022
- Premium Statistic Share of Europeans planning to travel domestically or in Europe 2023
- Premium Statistic Europeans planning domestic or European trips in the next six months 2023, by age
- Premium Statistic European travelers' favorite destinations for their next European trip 2023
- Premium Statistic Number of inbound tourists in Malta 2010-2022, by frequency
- Premium Statistic Number of inbound tourists in Malta 2019-2022, by age group
- Premium Statistic Leading inbound travel markets in Malta 2019-2022, by number of nights
- Premium Statistic Leading inbound travel markets in Malta 2019-2022, by tourist expenditure
Further related statistics
- Premium Statistic Change in number of visitors from Mexico to the U.S. 2018-2024
- Premium Statistic International tourist arrivals in Europe 2006-2022
- Basic Statistic International tourism receipts of India 2011-2021
- Premium Statistic Passenger traffic at Dubai Airports from 2010 to 2020*
- Premium Statistic Countries with the highest outbound tourism expenditure worldwide 2019-2021
- Basic Statistic Foreign exchange earnings from tourism in India 2000-2022
- Basic Statistic Average price paid for a hotel room at home and away 2014, by country
- Premium Statistic Consumer magazine industry revenue in North America 2008 -2016
Further Content: You might find this interesting as well
- Change in number of visitors from Mexico to the U.S. 2018-2024
- International tourist arrivals in Europe 2006-2022
- International tourism receipts of India 2011-2021
- Passenger traffic at Dubai Airports from 2010 to 2020*
- Countries with the highest outbound tourism expenditure worldwide 2019-2021
- Foreign exchange earnings from tourism in India 2000-2022
- Average price paid for a hotel room at home and away 2014, by country
- Consumer magazine industry revenue in North America 2008 -2016
What is international tourism and why is it important?
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The International tourism industry is stronger than ever before. Destinations around the world have developed their economies around international tourism and they are thriving (minus the ongoing Coronavirus pandemic, but I am confident that tourism will return so I am going to put that to one side for now). But what does it all mean?
In this article I am going to introduce you to the exciting world of international tourism- the industry that I have lived and breathed for so many years. The industry that I love. So here goes…
What is international tourism?
International tourism definitions, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, international tourism statistics, international tourism: conclusion, further reading.
Tourism is the generic term used to cover both demand and supply that has been adopted in a variety of forms and used throughout the world.
International tourism essentially refers to the activities undertaken by visitors, also known as the visitor economy. The tourism industry encompasses all activity that takes place within the visitor economy.
This includes activities that are directly related to the tourist, such as staying in a hotel, ordering a meal or visiting a tourist attraction. It also includes indirect activities, such as the transport company which delivers the food to the restaurant in which the tourist eats or the laundry company that has a contract with the hotel for cleaning bed sheets.
It is largely due to the indirect contributions to tourism, that defining and measuring the tourism industry is so difficult!
Tourism is a phenomenon with no universally accepted definition, owing to the complexity and individualism of the travellers themselves and the activities that they choose to undertake.
The most widely utilised definition of tourism, proposed by the World Trade Organisation (WTO) and United States (UN) Nations Statistics Division (1994), prescribes that in order to qualify as a tourist one must travel and remain in a place outside of their usual residential environment for not more than one consecutive year for leisure, business or other purposes.
Matheison and Wall (1982) on the other hand, do not impose a timeframe, simply stating that one must travel to a destination temporarily.
Leiper (1979) believed that defining tourism is more complex than this, proposing that there are three approaches that can be taken. The economic stance focuses on tourism as a business, the technical stance focusses on the tourist in order to provide a common basis by which to collect data and the holistic stance attempts to include the entire essence of the subject.
The Cambridge Dictionary define tourism quite simply as; ‘the business of providing services such as transport, places to stay or entertainment for people who are on holiday’.
As there is no universal definition for the term ‘international tourism’, for the purposes of this article I will define it as follows:
‘International tourism is the act of travelling to another country other than where you live for no more than one year for purposes of leisure or business’.
Why is international tourism important?
International tourism is hugely important. There are a number of key reasons for this that I will outline below.
Value to the economy
International tourism can help economies to bring in money in a number of different ways. Below I have provided some examples of the positive economic impacts of tourism .
The importance of international tourism is demonstrated through foreign exchange earnings.
Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy.
How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up!
Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro .
Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.
The importance of international tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated.
Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes.
According to the World Tourism Organisation, the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.
Indirect contributions come from goods and services supplied to tourists which are not directly related to the tourism industry.
There is also the income that is generated through induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed.
The importance of international tourism can be demonstrated through employment generation.
The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers.
There are two types of employment in the tourism industry: direct and indirect.
Direct employment includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.
Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.
It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!
The importance of international tourism can be further seen through the contributions to local economies.
All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy.
If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or volunteer tourism projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect.
International tourism boosts the economy exponentially.
This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place.
Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.
For some towns, cities and even whole countries, the importance of international tourism is greater than for others. In some cases, it is the main source of income.
For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.
Other posts that you might be interested in: – What is tourism? A definition of tourism – The history of tourism – The structure of the tourism industry – Stakeholders in tourism – Inbound tourism explained: What, why and where – What is ABTA and how does it work? – Outbound tourism | Understanding the basics
Value to society
The importance of international tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Below I will outline some of the social gains from tourism.
It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of international tourism.
Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…
Many destinations will make a conserved effort to preserve and protect the local culture. This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts.
The importance of international tourism can also be demonstrated through the strengthening of communities.
Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.
The jobs created by international tourism can also be a great boost for the local community. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income.
Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.
The importance of international tourism is shown through the provision of social services in the host community.
The international tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also.
Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism.
International tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result.
These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.
Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example.
This may help promote traditions that may have become distant.
Another reason for the importance of international tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage.
This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful tourism planning and sustainable tourism management.
International tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.
Small villages in far off lands are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population .
Value to the environment
Whilst most media coverage involving international tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.
Some people think that international tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers.
As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!
Tourism brings with it huge economic potential for a destination that wishes to develop their tourism industry. Employment, currency exchange, imports and taxes are just a few of the ways that tourism can bring money into a destination.
In recent years, tourism numbers have increased globally at exponential rates, as shown in the World Tourism Organisation data below. There are a number of reasons for this growth including improvements in technology, increases in disposable income, the growth of budget airlines and consumer desires to travel further, to new destinations and more often.
Here are a few statistics providing by the UN and Statistica:
Here are a few facts about the economic importance of the tourism industry globally:
- The tourism economy represents 5 percent of world GDP
- Tourism contributes to 6-7 percent of total employment
- International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports
- The tourism industry is valued at US$1trillion a year
- Tourism accounts for 30 percent of the world’s exports of commercial services
- Tourism accounts for 6 percent of total exports
- 1.4billion international tourists were recorded in 2018 (UNWTO)
- In over 150 countries, tourism is one of five top export earners
- Tourism is the main source of foreign exchange for one-third of developing countries and one-half of less economically developed countries (LEDCs)
There is a wealth of data about the economic value of tourism worldwide, with lots of handy graphs and charts in the United Nations Economic Impact Report .
International tourism is arguably the largest industry in the world. There are many benefits of international tourism to local economies as well as society and the environment. The many components of tourism that make up the industry are integral to livelihoods the world over.
- An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
- The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
- Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.
United States Tourism Revenues
Tourism revenues in the united states increased to 19021 usd million in august from 18160 usd million in july of 2023. tourism revenues in the united states averaged 13204.19 usd million from 1999 until 2023, reaching an all time high of 20819.00 usd million in march of 2018 and a record low of 3835.00 usd million in september of 2020. source: office of travel and tourism industries, tourism revenues in the united states increased to 19021 usd million in august from 18160 usd million in july of 2023..
gdp, labour, prices, health, money, trade, government, business, consumer, housing, taxes, climate.
Global Luxury Travel Market to Exceed USD 2,762 Billion by 2032 | CAGR 7.8%
According to market.us, the global luxury travel market size is projected to surpass around usd 2,762 billion by 2032 and it is poised to reach at a registered cagr of 7.8% from 2023 to 2032..
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New York, March 08, 2023 (GLOBE NEWSWIRE) -- Market.us has published a new report on the global Luxury Travel Market was valued at USD 1,328.1 billion in 2022 and is anticipated to reach USD 2,762 billion by 2032, expanding at a CAGR of 7.8% between 2023 and 2032. The industry is being driven by the increase in the elite travellers around the world who wants to travel and explore new destinations and wanted to have unforgettable experiences.
The growth of the market is dominated by the increase in the popularity of the micro-trips and the expanding tourism sector around the world. The market was badly affected by the COVID-19 pandemic, due to the travel restriction imposed by the government. The local economies depends on it, as luxury travel is an important part of the wealth and distribution around the world. Travellers generally looks for flexible itineraries which can offer both relaxation and entertainment to create their one-of-a-kind experience.
Get additional highlights on major revenue-generating segments, Request a Luxury Travel Market sample report at https://market.us/report/luxury-travel-market/request-sample/
- By Type of Tour, in 2022, the Luxury Cruise/Ship Expedition segment has generated highest revenue in Global Luxury Travel Market share in 2022.
- By Age Group , the Millennial Market segment is dominating the market and it is growing at significant rate over the forecast period 2023 to 2032.
- In 2022, Europe Region dominated the luxury travel market with the highest revenue share of 33.8%.
- APAC Region has held second Position in revenue share in 2022.
- Europe will grow at a significant rate from 2023-2032.
A large numbers of tourists particularly the wealthy travellers, are enjoying the most popular Cruises, Yachts, and small ships. One of the markets most commonly clients are the High Net Worth Individuals. Which resulted the businesses in the industry to fous more on the water based luxury travels , like cruises.
Factors affecting the growth of Luxury Travel industry?
There are several factors that can affect the growth of the Luxury Travel industry. Some of these factors include:
- Increase in disposable income: With the growth of an economy, the disposable income of people increases. This in turn leads to more people being able to enjoy luxury travel.
- Expansion of air travel: Increasing air travel facilities has enabled people to travel to distant places with ease and comfort. This has allowed luxury travel to become more accessible.
- Technological advancement: The development of technology has made the whole process of booking a luxury holiday much easier. People are able to find information about a destination, book tickets, and make reservations online.
- Emergence of new destinations: With the emergence of new destination countries, the luxury travel industry has been able to expand its reach and offer more experiences to its customers.
- Emergence of new luxury travel services: The introduction of new luxury travel services such as private jets, yacht charters, and luxury tours has made the experience more enjoyable and unique.
- Increase in social media influence: Social media has played a huge role in the growth of the luxury travel industry. People are able to share their experiences, which in turn entices more people to travel to certain locations.
To understand how our report can bring a difference to your business strategy, Inquire about a brochure at https://market.us/report/luxury-travel-market/#inquiry
Top Trends in Luxury Travel Market
The “Five Star Alliance” has listed various numbers of eco-friendly luxury hotels around the world. The hotels listed include Banyan Tree Bintan in Indonesia, Four Seasons Vancouver in Canada, Shangri-La Hotel Bangkok, Hyatt at Olive 8 in the United States, and The Oberoi Vanyavilas of India. These hotels are listed on the basis of several factors including local labour force recruitment, local material used, and sustainable business practices.
The shift of the consumer preference on the nature-based living, hotel owners are focusing more on providing eco-friendly services to the customers. For example, Marriott International, in August 2019, announced that it will remove single-use bath gels, shampoos and conditioning bottles from all the properties worldwide. The aim of the hotel company is to reduce the use of the plastic consumption by 30% by eliminating such small bottles.
The rise in the people demanding for unique and exotic holiday experiences is enhanced by the rise in the disposable income. The trend in the middle and upper middle class population, and people who likes to spend more time with their family, due to busy lifestyles are the factors that drives the growth of the luxury travel market globally. To have a most memorable experience, people mostly choose to go adventure trips, cruising, and unique holidays abroad. The fluctuating economies in different regions is the threat for the growth of the luxury travel market.
Because of the well financially supported population, Europe is the dominating region holding the maximum share of the luxury travel market . People spend more on travel to relax their mind and restore their mental health after a hectic day. This can be boosted by the rapid expansion of high-speed internet and the growing travel connectivity.
The luxury travel market is driven by high quality food and wine, personal service, reliable transports, safety measures, leisure luxury, professional personal, political stability, and personalized service. There are many destination which are popular among the Europeans such as Muesums, Eifel Towers, castels and enormous places, etc.
Asia-Pacific holds the second largest luxury travel market globally due to its large investments in adventure tourism and food tourism . Apac regions Young people are taking interest in adventure and trekking. The APAC regions have the highest number of destination which also includes museums and historical sites.
North America is the third largest luxury travel market. As North America is financially developed so it’s a trend among the people to travel and enjoy their life to the fullest. In North America there are highest number of luxury travel industries, luxury hotels and destination. Which gives a positive impact on the increasing number of tours and guides employees.
There are many key players who are likely to introduce enhanced services to the newly opened deluxe facilities to attract more clients. Which will eventually increase competition among the players to win new clients and to to keep regular visitors. Key players may also like to consider mergers and acquisitions to expand their brand portfolios and increase their market share.
Scope of the Report
Steady growth has been observerd with an increase in number of international and domestic tours over the years. Travellers travel for various reasons, which includes vacation, leisure, and recreation.
The percentage of international tourists visiting the country has increased. In addition, the availability of lodging packages which includes deluxe rooms and top-end services has attracted more guests has increased which resulted in boosted revenue generation.
Guests attracts to the 5-star hotels which provides advanced technologies like smart bathroom and WiFi. The growing trend for luxury travel and leisure travel has increased the demand for luxurious hospitality. Luxury products and services are used by the Wealthy consumers, which means that the increase in wealth of the world may encourage the luxury travel market growth.
Market growth may be affected by the high tariffs in star-rated hotels and the rise of low cost affordable shared accommodation platforms like Airbnb are rising in the nations with low income. The increasing in the presence of mid-scaled and budgets hotels in many countries around the world may limit the market growth globally.
Technology has revolutionalized by how people love to travel. High speed internet is the main key, which allows people to book flights and hotels online. By looking at the reviews and offerings, and in addition to opt for easy cancellations and online check-in and outs, are the reason to create great opportunities for the market.
Luxury travel companies like Airbnb are giving people more of an opportunities to travel and explore different places around the world, and digitalization allows them to find more information online. Technology has made luxury travel more personal. Which includes booking hotel rooms and tickets, unlocking doors, checking in, personalizing your stay, and even checking out. During the forecasted period the key market players may take the advantages and benefits of Seychelles and Tanzania, AguasCalientes in Peru, Mirihi Island, Maldives and other countries.
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Report Segmentation of the Luxury Travel Market
Type of Tour Insight
Based on the type of tours, the Luxury cruise/ship expedition segments held largest market share of the Global Luxury Travel Market. The segment is expected to dominate for the forecasted period. As the Luxury cruise ship is gaining attraction it is expected to get tripled during the forecasted period.
MEA and APAC are the two potential markets that will see a significant growth rate during the forecasted period. The market for the cruise/ship exploration is growing due to technological advancement in the new curise design concepts, longer ships, more exotic destinations, and new activities and themes onboard and off-shore.
Some of people prefer luxury cruising because it is more comfortable, relaxing and beautiful way of travelling. These are the factors which are likely to contribute the growth of the luxury travel market through the cruise/ships expedition segments over the forecast period.
Age Group Insight
The millennial market segment dominates the market growth globally. In 2022, North America and Europe combined accounted for approximately 67.4% of the total Millennial luxury travel market’s revenue, with Europe accounting for 28%.
APAC, MEA and latin America are the potential growth market, which are expected to experience a significant growth over the forecasted period. The majority people travel around the world are millennials, who spends an average of $527 per day. These people prefer short trips to the countries with rich in cultural tradition and other countries, they also travel a lot to do local shopping. This category is also driven by honeymoons and romantic introductions. These are the factor for which millennial market sees a increase in demand for the luxury travel market globally.
Types of Travellers Insights.
The millennial generations are most likely to be a part of this aspiring luxury class. These generations are relatively wealthy and prefer luxury short trips. The ‘newly wealthy’ are also included in this segment. They are ready to invest in the luxury travel and they are the leaders of the segment.
Aspiring luxury travellers typically take five business and pleasure trips each years because of their high spending power and the ability to afford luxury travel. Growth of the premium brand and second hand market is encouraged by the aspirational and middle-income shoppers. For example, Dubai has launched programs to invest in mid market hotels, which includes release of government land plots for three and four star hotels projects.
Unique and exclusive destinations to shop is preferred by Luxury-seeking individuals. This group also includes aspirational young people who are well-off and have little to no family responsibilities. Thus the Luxury Travel Market is expected to grow with increasing number of aspiring luxury travellers.
Recent Development of the Luxury Travel Market
- White Desert launched ‘Echo’, a luxury travel company in November 2021. It offers exclusive access to Antarctica for rare interior views and luxurious experiences.
- A special edition cruise was announced by Abercrombie & Kent USA, LLC in November 2019. It features astronomy experts, including first women ever to walk in the space. The company's Antarctica and the Total Solar Eclipse Cruise will offer an exclusive experience with rare astronomical spectacles alongside experts
For more insights on the historical and Forecast market data from 2016 to 2032 - download a sample report at https://market.us/report/luxury-travel-market/request-sample/
By Type of Tours
- Adventure and safari
- Customized and private vacations
- Small group journey
- Cruise/ship expedition
- Culinary travel and shopping
- Celebration and special events
By Age Group
- Generation X
- Silver hair
- Baby Boomer
By Types of Traveler
- Aspiring Luxury
- Absolute luxury
- Accessible Luxury
- Rest of Western Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Rest of Latin America
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Key Market Players
- Butterfield & Robinson Inc.
- Scott Dunn Ltd.
- Cox & Kings Ltd.
- Lindblad Expeditions
- Abercrombie & Kent USA, LLC
- Micato Safaris
- Geographic Expeditions, Inc.
- Travel Edge (Canada) Inc.
- Exodus Travels Ltd.
- Other Key Player
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- Luxury Footwear Market : is expected to be worth around USD 65.63 billion by 2032 from USD 35.3 billion in 2021, growing at a CAGR of 5.8% during the forecast period from 2022 to 2032.
- Luxury Hotel Furniture Market : is expected to exhibit moderate growth at a CAGR of 4.2% during the forecast period 2023-2032.
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Full coverage of AFL legend Ron Barassi's state memorial service at the MCG
SA's post-COVID international tourism recovery struggles as sector takes stock of slow return
Hundreds of thousands of international tourists have not returned to Adelaide after the COVID-19 pandemic, with Adelaide Airport recording more than a 30 per cent drop in overseas visitors.
- Adelaide Airport saw a 34 per cent drop in international passengers post-pandemic
- Experts say the shortfall is not unexpected because it follows a national trend
- The state government says more international flights will help fix the issue
The total number of international passenger arrivals and departures to and from Adelaide dropped from 1,063,216 in the 2018-19 financial year to 698,548 in the 2022-23 financial year — a shortfall of 34 per cent, according to Adelaide Airport data.
Owner and skipper of catamaran tour company Temptation Sailing, William Pyke, said while he thought the figure would not bounce back straight away, he did not think it would take this long.
"We're at about 40 to 50 per cent of our international visitors compared to pre-COVID so that's slowly coming back," Mr Pyke said.
"It's a bit of a mixed bag but we generally would find international tourists are more willing to do experiences like ours."
Mr Pyke has operated the Glenelg-based business for more than three years, running dolphin cruises and private charters.
He said that most of the recent bookings had been from within Australia, with a notable decline in tourists from Asian countries.
"We're starting to see some backpackers and younger people from Europe in particular and not really seeing any Asian market come back yet," he said.
"A lot of other tourism businesses and eco-tourism businesses as well seem like they have had a steady decline of international tourists and they are wanting them to come back as well. "
Australia's distance 'a challenge'
Flinders University tourism researcher Roberta Crouch said Adelaide's shortfall in international passengers is not unexpected, because a large number of overseas visitors have not returned to Australia as a whole.
"We have to remember that we are a long way away and that has always been a challenge for Australia," Professor Crouch said.
"The further people have to travel the more they need to think about it, the more they need to plan for it."
Professor Crouch researches what the rest of the world thinks of Australia.
She said Adelaide has always had to work harder to convince the tourists that the so-called "City of Churches" was a desirable and worthwhile tourism destination.
"People have heard of Sydney, they've heard of the Gold Coast, Uluru and the Great Barrier Reef," she said.
"Whereas Adelaide has never been a primary destination for many international travellers, but there's strategies in place to address that."
SA government promotes major events
In a statement, SA's Tourism Minister, Zoe Bettison, said while tourism to the state had "never been stronger", she would continue to work with the South Australian Tourism Commission to drive up international visitation.
"We're seeing great momentum in South Australia, with international expenditure in the state increasing by 24 per cent in the last quarter alone — it is now worth $1 billion, just shy of its pre-pandemic $1.2 billion," Ms Bettison said.
"Our strong suite of new major events, including LIV Golf Adelaide and AFL Gather Round — and this weekend's Harvest Rock festival — give visitors just another reason to visit South Australia."
The minister said the state government was in discussions with other airlines in an attempt to attract them to South Australia and "drive the full recovery of international visitation as soon as possible".
Professor Crouch said the state's tourism sector should not be "disheartened" by the slow recovery post-pandemic.
She predicts that Australia's improving relations with China will see large groups of tourists return within the next few months.
"I think we need to remember that the Chinese tourism market is likely to rebound strongly now," she said.
"The more opportunities people have to get on a plane to come down to Australia, in particular South Australia, it helps."
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Here's Americans' net worth at every age—for people under 35, it's up 142%
Americans under 35 increased their median net worth by a whopping 142% between 2019 and 2022 — from $16,100 to $39,000 — according to the Federal Reserve's October 2023 Survey of Consumer Finances .
The report defines net worth as the difference between a person's assets and liabilities. Assets are things you expect to hold value in the future, such as your home or investments. Liabilities, on the other hand, are debts or money you owe, such as your mortgage, car payment or student loans.
To that point, many young people don't have assets that would push up their net worth. A little less than 40% of Americans under 35 own a home as of 2022, per the latest Census data.
On the other hand, Americans between the ages of 65 and 74 have the highest median net worth out of all age cohorts, increasing their net worth from a median of $308,800 to $409,900 over the same time period.
That makes sense considering a larger percentage of older Americans own their homes. Plus, they've had more time to earn money and grow their investments.
Here's Americans' median net worth, broken down by age.
How to build wealth, according to a self-made millionaire
Remember, building your net worth takes time. Although owning property is one way to boost your net worth, there are plenty of other ways to do it too, such as starting a successful company.
One thing you don't have to do is give up treating yourself to little luxuries, Ramit Sethi, a self-made millionaire and author of New York Times bestseller "I Will Teach You To Be Rich," told CNBC Make It in December.
"I'm not the guy who's going to say, 'Hey, got to cut back on lattes. And if you save for the next 360,000 years, you can afford a down payment on a house.' It doesn't work," he told CNBC's Frank Holland during CNBC Make It's Your Money virtual event on Dec. 13.
Instead, the key to building wealth is investing, Sethi says.
Investing helps your money to grow exponentially faster than if it were sitting in a savings account, thanks to compounding interest. With that, you earn interest on your initial investment as well as the interest that has accumulated over time.
If you're new to investing, many financial experts, including billionaire Warren Buffett, recommend starting with low-cost index mutual funds or exchange-traded funds that track a market index such as the S&P 500. This type of fund invests your money in around 500 top-performing companies, including heavyweights like Amazon, Microsoft and Netflix.
Owning these types of funds tends to be less risky than owning individual stocks since they provide automatic diversification. Your investment is spread across an array of companies, which lessens the likelihood that a downturn in one company's share price would hurt your overall portfolio.
And while this strategy won't make you a millionaire overnight, it can help you build long-term wealth for the future.
"Real wealth is almost always created consistently over a long period of time," Sethi told Make It at the December event. "It's boring, as it should be."
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Taylor Swift is officially a billionaire thanks to her record-breaking Eras Tour and re-recording project, according to Bloomberg
Pop music supernova Taylor Swift has officially joined the three-comma club, Bloomberg News reports . On the eve of the release of 1989 TV —and amid a record-breaking tour and box office bonanza—the singer-songwriter’s net worth sits at an estimated $1.1 billion.
Bloomberg’s analysis takes into account the estimated value of Swift’s music catalog and her five homes, as well as earnings from streaming, music sales, and concerts. The news outlet says the calculation is likely conservative and is based “only on assets and earnings that could be confirmed or traced from publicly disclosed figures.” Swift did not respond to Bloomberg’s request for comment.
The bulk of her wealth is tied to her impressive catalog, which Bloomberg values at $400 million. (And that’s the music she’s released since 2019—the music she made before that is now held by Shamrock Holdings. If all of her music is included, the value reaches $1 billion on its own, per Bloomberg.) Another $370 million is tied to ticket sales and merchandise, while Spotify and YouTube earnings account for $120 million, and her five homes are valued at $110 million. It is possible she has other sources of wealth that are not public.
“She’s one of the few entertainers to reach that status based on music and performing alone, the result of work and talent, but also canny marketing and timing,” Bloomberg notes.
The world’s ‘most charismatic CEO’
Speculation on when, not if, Swift would officially crossover into billionaire-dom has abounded since the Eras Tour kicked off with unprecedented demand for tickets . The tour itself, which is currently slated to run through the end of 2024, is set to rack in well over $1 billion in ticket sales , much of which makes its way to Swift.
The Eras Tour has worked as something of a marketing machine for her other projects. While many artists make most of their money off of touring, Swift is the rare musician who also makes a significant amount from digital and physical music sales . Her devoted fan base makes sure of that (her most recent release, Speak Now TV , debuted in the midst of the tour and sold 716,000 copies, including nearly 270,000 on vinyl LP ).
And with the fourth re-record of her first six studio albums set to release Friday, the 33-year-old is bringing in even more money. Analysts expect 1989 TV to be one of the biggest albums of the year in terms of sales.
But Swift, never one to settle for just one or two projects at a time, is also benefitting from movie ticket sales. Taylor Swift: The Eras Tour has brought in around $165 million at the worldwide box office in the past two weeks, thanks to support from fans and other moviegoers curious to get a taste of the Eras Tour for themselves. That makes it the highest-grossing concert tour movie of all time.
Bloomberg also credits Swift’s billionaire status, partly, to her shrewd negotiations around streaming. The pop star took her music off Spotify in 2014—when the original 1989 was released—demanding the company compensate artists better for their work. She took Apple to task a few years later, resulting in changes at both streamers.
Swift’s Eras Tour was a boon not just to the singer, but to the cities she performed in. The Eras Tour added $4.3 billion to the U.S.’s gross domestic product throughout the first 53 shows, according to estimates from Bloomberg Economics. She even got a shoutout from the U.S. Federal Reserve.
“Taken together, Swift Inc. is essentially a multinational conglomerate with the world’s most devoted customer base, its most charismatic CEO and significant economic power,” Bloomberg writes.