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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2033

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

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Current statistics on this topic.

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2033

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• Hotel industry worldwide
• Travel agency industry
• Sustainable tourism worldwide
• Travel and tourism in the U.S.
• Travel and tourism in Europe

Recommended statistics

• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
• Basic Statistic Travel and tourism: share of global GDP 2019-2033
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
• Basic Statistic Global leisure travel spend 2019-2022
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2033

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2022, with a forecast for 2023 and 2033 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Hotel openings worldwide 2021-2024
• Premium Statistic Hotel room openings worldwide 2021-2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022

Global hotel and resort industry market size worldwide 2013-2023

Market size of the hotel and resort industry worldwide from 2013 to 2022, with a forecast for 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Hotel openings worldwide 2021-2024

Number of hotels opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Hotel room openings worldwide 2021-2024

Number of hotel rooms opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Countries with the most hotel construction projects in the pipeline worldwide 2022

Countries with the highest number of hotel construction projects in the pipeline worldwide as of Q4 2022

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Market value of selected airlines worldwide 2023
• Premium Statistic Global passenger rail users forecast 2017-2027
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2019-2028
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2027

Worldwide number of passenger rail users from 2017 to 2022, with a forecast through 2027 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Market size of museums, historical sites, zoos, and parks worldwide 2022-2027
• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
• Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Market size of museums, historical sites, zoos, and parks worldwide 2022-2027

Size of the museums, historical sites, zoos, and parks market worldwide in 2022, with a forecast for 2023 and 2027 (in billion U.S. dollars)

Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Leading online travel companies worldwide 2020-2022, by revenue CAGR
• Premium Statistic Leading online travel companies worldwide 2022-2023, by EV/EBITDA

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Leading online travel companies worldwide 2020-2022, by revenue CAGR

Revenue compound annual growth rate (CAGR) of leading online travel companies worldwide from 2020 to 2022

Leading online travel companies worldwide 2022-2023, by EV/EBITDA

Enterprise-value-to-EBITDA (EV/EBITDA) of selected leading online travel companies worldwide in 2022, with a forecast for 2023

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2022
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2022

Share of travelers that believe sustainable travel is important worldwide in 2022

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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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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Top 9 Travel Trends & Innovations in 2024

How are the latest trends in the travel industry reshaping trip planning and enhancing tourist experiences in 2024? Explore our in-depth industry research on the top 9 travel trends based on our analysis of 3500+ companies worldwide. These trends include AI, immersive tourism, IoT, contactless travel & more!

Technological advancements in the travel industry meet the growing demand for personalized experiences, safety, and sustainability. Post the COVID-19 pandemic, emerging travel trends mark a shift towards contactless travel through digital payments, self-check-ins, and more. Additionally, artificial intelligence (AI), the Internet of Things (IoT), and blockchain are automating various hospitality and travel-related operations.

For instance, smart hotels make use of internet-connected devices to remotely control rooms. Further, businesses offer virtual tours by adopting extended reality (XR) technologies like virtual reality (VR) and augmented reality (AR). Travel companies also leverage data analytics to personalize marketing. At the same time, traveler assisting solutions like chatbots and voice technology aid them in booking accommodation and optimizing journeys. These travel trends improve the overall profitability of the tourism industry and enable it to make operations more sustainable and safe.

This article was published in July 2022 and updated in February 2024.

Innovation Map outlines the Top 9 Travel Trends & 18 Promising Startups

For this in-depth research on the Top 9 Trends & Startups, we analyzed a sample of 18 global startups and scaleups. The result of this research is data-driven innovation intelligence that improves strategic decision-making by giving you an overview of emerging technologies & startups in the travel industry. These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform , covering 2 500 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant startups, emerging technologies & future industry trends quickly & exhaustively.

In the Innovation Map below, you get an overview of the Top 9 Travel Trends & Innovations that impact travel & tourism companies worldwide. Moreover, the Travel Innovation Map reveals 3 500+ hand-picked startups, all working on emerging technologies that advance their field.

Top 9 Travel Trends

• Artificial Intelligence
• Immersive Tourism
• Internet of Things
• Contactless Travel
• Big Data & Analytics
• Post-Pandemic Tourism
• Tour Premiumization

Click to download

Tree Map reveals the Impact of the Top 9 Travel Trends

Based on the Travel Innovation Map, the Tree Map below illustrates the impact of the Top 9 Travel Industry Trends in 2024. Startups and scaleups are enabling contactless travel using technologies like biometrics, radio-frequency identification (RFID), and near-field communication (NFC). This is due to increasing health and hygiene concerns post the pandemic. The use of AI in tourism ensures hassle-free trip planning while AR and VR allow tourists to virtually visit various locations and excursions. IoT increases visibility into tourism industry operations and allows passengers to track their luggage more efficiently. Further, the demand for personalized and luxurious travel is rising. Several startups enable recreational space travel as well as offer sustainable travel options to passengers.

Global Startup Heat Map covers 3 635 Travel Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 3 635 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that the US, Europe, and India see the most activity.

Below, you get to meet 18 out of these 3 635 promising startups & scaleups as well as the solutions they develop. These 18 startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.

Interested in exploring all 3500+ travel startups & scaleups?

Top 9 Travel Trends in 2024

1. artificial intelligence.

Hotels employ intelligent chatbots, powered by AI, to provide quick and personalized responses to traveler inquiries. These chatbots simplify the booking process and gather customer reviews, aiding potential travelers in making informed decisions. Moreover, AI-based robots enhance the customer experience by automating hotel disinfection and delivering room service.

At airports, these robots guide travelers and assist with luggage handling. Facial recognition technology, driven by AI, expedites identity verification at airports, enhancing security and offering a swift alternative to traditional methods. Startups are developing AI-powered trip planning solutions, optimizing journeys, and personalizing travel experiences.

Travel Professor develops a Travel Chatbot

UK-based startup Travel Professor offers an AI-enabled chatbot for travelers. The startup’s chat widget software monitors multiple flight deals and notifies users when their preferences match. It also provides travel destination recommendations and flight price alerts. This allows travelers to book economical flights and have a budget-friendly tourism experience.

Pneuma Travel facilitates Travel Planning

US startup Pneuma Travel develops a voice-assisted digital agent, Sarah , to streamline the process of travel planning. This assistant, powered by AI, excels in arranging flight and accommodation bookings and assists travelers in discovering a variety of activities. Sarah , available round the clock, provides continuous support for all travel-related inquiries.

Moreover, Sarah customizes travel options according to individual preferences and budgetary constraints. The agent further enhances the travel experience by providing insights into local attractions in unfamiliar cities. Importantly, Sarah enables real-time modifications to travel plans, in compliance with specific airline policies, thereby minimizing waiting times for users.

2. Immersive Tourism

Immersive tourism caters to the growing demand for meaningful experiences among travelers, leveraging AR, VR, and mixed reality (MR). VR simulates original locations through a computer-generated environment, allowing tourists to virtually explore destinations. It provides travelers with a comprehensive 360-degree tour of points of interest.

AR enhances the travel experience with interactive elements such as navigation maps and ads. Travel companies employ AR and VR-based gamification to heighten tourist attractions. Moreover, these technologies enable hotels and resorts to present amenities and rooms in an engaging, interactive manner.

VR Travel Expo offers VR-based Travel Plans

US startup VR Travel Expo develops a VR travel application to transform the way people research and book travel. The application enables users to plan their vacations more efficiently. It provides an engaging platform for users to explore and expand their knowledge of the world. Moreover, it employs 3D geospatial technology that creates real-time digital twins of the world. This further enhances the travel planning experience.

AR Tour makes AR Glasses

Italian startup AR Tour offers AR-powered tours. The startup’s AR glasses superimpose reconstructed images of archaeological ruins to show how the site originally was. Its tour informs the tourists about the site’s history and significance via an audio-visual package. Moreover, the startup designs lightweight AR glasses to prevent motion sickness among tourists, improving convenience.

3. Internet of Things

IoT generates ample data that tourism companies leverage to personalize services in their subsequent visits. Hotels use IoT sensors to enable smart rooms that automate room lighting, temperature, and ambiance control, enhancing guest comfort. These sensors adjust appliances in vacant rooms, conserving energy and reducing the building’s carbon footprint.

Startups harness IoT to deliver location-specific information to customers, including real-time luggage tracking via IoT tags, minimizing lost items. Airlines also incorporate IoT-based solutions into seats, monitoring passenger temperature and heart rate for proactive health management.

Altitude enables Smart Hotels

New Zealand-based startup Altitude creates an IoT-based hotel software and hardware to develop smart hotels. The startup makes self-service kiosks to automate reservations, room up-gradation, payments, as well as check-in and check-out. Its hotel management platform further enables contactless engagement with guests. Additionally, Altitude’s mobile keys allow guests to open doors using mobile phones, providing convenience and saving time for travelers.

Smart Tour provides Smart Itineraries

Brazilian startup Smart Tour offers smart itineraries using IoT and quick response (QR) codes. The startup recommends travel routes and destinations based on the user’s preference in real-time. This facilitates a seamless experience for travelers. Besides, the user-generated data enables tourism managers to better understand consumer behavior and indulge in proximity marketing. The startup also offers a contact tracing solution to monitor COVID-19 infected travelers and ensure public safety.

4. Contactless Travel

Travelers benefit from contactless recognition technologies like retina scanning, which replace traditional travel documents, speeding up passenger identification and reducing airport queues. QR codes offered by travel companies allow tourists to access relevant information on their mobile devices, enhancing engagement.

Hotels have introduced contactless self-check-ins, enabling visitors to arrange services before arrival. Additionally, contactless payment modes are available in hotels and restaurants for swift and secure transactions. Moreover, wearable devices are transforming the travel experience by providing real-time notifications and touch-free access to services and information.

Loxe designs Smart Hotel Keys

US-based startup Loxe makes smart mobile keys for hotels. The startup’s smartphone app replaces key cards with contactless mobile keys that allow users to unlock doors using smartphones. It also reduces operational costs incurred in the manufacturing of conventional keys or plastic cards. Moreover, the startup designs a Bluetooth retrofit module that converts normal door locks into mobile-ready door locks. This allows hotel owners to easily convert their existing locks into smart ones without additional expenses while improving guest safety and convenience.

Avendi provides Contactless Payment

Singaporean startup Avendi offers contactless and cashless payments for travelers. The startup allows tourists to accumulate expenses throughout their trip and pay at the end of the journey. Avendi’s app utilizes QR codes to add all the billed expenses and shown through its dashboard. The user settles the tab amount in the preferred currency, preventing the inconvenience of cash withdrawal or credit card payments.

5. Big Data & Analytics

Big data empowers travel companies with customer trends for strategic marketing. Analyzing traveler behavior, they offer tailored recommendations for hotel bookings, cab hires, flight reservations, and ticket purchases.

Predicting future demand is another advantage of big data and analytics, helping hotels and airlines identify peak periods to optimize revenue. Advanced analysis of transactional data aids in detecting cyber fraud, and safeguarding sensitive customer information such as credit card details and biometric data.

CheckandPack creates a Travel Platform

Dutch startup CheckandPack offers a big data travel platform. It runs marketing campaigns to gather traveler data and understand tourism trends. Based on these insights, the platform enables businesses to approach travelers with a customized appeal. It also provides travelers with holiday planning.

3Victors provides Travel Data Analytics

US-based startup 3Victors offers travel data analytics. The startup’s product, PriceEye Suite , proactively monitors the prices of numerous airlines to provide insights into competitor prices. It creates a dashboard to display travelers’ location of interest, allowing travel airlines to better manage their revenue and pricing strategy.

6. Post-Pandemic Tourism

Post-pandemic tourism focuses on safe, sustainable, and flexible travel options, responding to evolving traveler preferences and health guidelines. Enhanced health and safety protocols, including regular sanitization and contactless services, become standard in airlines and hotels, ensuring traveler confidence.

Destinations and operators emphasize outdoor and less crowded experiences, catering to a heightened demand for nature-based and wellness travel. Flexible booking policies and trip insurance gain prominence, offering peace of mind amid uncertainties. Sustainable travel gains traction, with tourists and businesses prioritizing environmental impact and community well-being.

GOPASS Global enables Pre-travel Risk Management

Singaporean startup GOPASS Global provides a travel risk analytics platform against COVID-19. It analyzes the biosecurity risk elements involved in a trip, such as border restrictions, quarantine requirements, airport type, and airline transit points or seating in real-time. This allows travelers to assess risk factors and plan their trips accordingly.

Moreover, the startup creates world maps displaying information regarding COVID-prone areas, testing areas, and vaccine coverage. This provides travelers with a preview of the current situation, allowing them to ensure safety during business and leisure travel.

Workcations enables Work from Anywhere

Indian startup Workcations provides properties at tourist destinations for remote-working individuals. It offers amenities like internet connectivity, food, and a quiet ambiance, allowing tourists to work in a peaceful environment without hindrance. This increases employee productivity, motivation, and retention.

7. Tour Premiumization

Hyper-personalization in travel experiences is on the rise, with tourists eager to immerse themselves in diverse cultures. Luxury travelers enjoy tailored experiences and intuitive services through tour premiumization. Health and wellness packages offered by travel startups help tourists unwind.

These retreats enhance health and offer detoxifying food options. Space tourism is another exciting development, offering leisure or research trips to space. Lastly, travel startups are fostering customer loyalty and building strong relationships through membership or subscription models.

STOKE provides Space Tour

US-based startup STOKE facilitates space travel using everyday-operable rockets. The startup’s rockets are reusable and deliver satellites to any desired orbit. This enables on-demand access to space, paving way for space tours for exploration, recreation, and research. The startup also emphasizes the economical and rapid development of its hardware for feasible spacecraft launches, advancing space tourism.

Origin offers Travel Personalization

Dutch startup Origin provides premium travel personalization to tourists. The startup utilizes machine learning and travel curators to plan creative vacations. It also arranges flights and accommodation for travelers. Further, the startup measures the carbon output of itineraries and offers sustainable tourism options.

8. Ecotourism

Traveling responsibly minimizes tourism’s environmental impact and supports local communities’ well-being. Ecotourists strive to reduce their carbon footprint during their journeys. Startups contribute by developing sustainable transport, ecolodges, and solar-powered resorts.

Airline passengers have the option to offset carbon emissions during flight bookings. Local tourism stimulates small businesses economically and creates job opportunities. It also emphasizes minimum littering, which lowers pollution and the time spent on cleanups.

Jet-Set Offset simplifies Flight Carbon Offset

US-based startup Jet-Set Offset creates a carbon-offsetting platform for air travel. The startup partners with non-profit organizations working against climate change and connects them with travelers. Each time travelers book flight tickets via the startup’s platform, Jet-Set Offset contributes a certain amount per mile for their journey to environmental organizations. This way, the passenger’s journey promotes mileage-based donations to offset carbon emissions.

The Green Stamp facilitates Ethical Wildlife Tour

Dutch startup The Green Stamp provides a platform to book ethical wildlife tours. It curates tours based on the tourists’ inclinations toward certain locations or wildlife. Exploration of these projects allows travelers to indirectly contribute to their cause as these wildlife projects donate to the welfare of local communities and the environment.

9. Blockchain

Blockchain provides the travel industry with operational transparency and security. Traceable payments, particularly for international travel, are a key application, that fosters trust among parties involved in transactions.

Automation and enforcement of agreements in travel insurance and supplier contracts are achieved through smart contracts. This strengthens reliability and cuts administrative costs. Travel firms establish customer loyalty programs where points are exchanged for cryptocurrency. Lastly, blockchain increases data storage security, reducing the risk of information leaks.

Upswing facilitates Guest Profiling

Indian startup Upswing creates AURA , a blockchain-powered platform for guest profiling. It provides a holistic view of guests, their preferences, and purchase patterns. The platform associates a score with each guest and suggests improvements in their service. This facilitates hotels to provide a personalized experience to their guests and, in turn, increase sales.

UIQ Travel develops a Solo Traveling App

US-based startup UIQ Travel develops a blockchain-based app to connect solo travelers. It discovers people with shared interests and suggests tours or attractions. Such hyper-personalized recommendations assist in experience discovery and also increase traveler engagement.

Discover all Travel Trends, Technologies & Startups

Tourism, although severely impacted by the pandemic, now continues to rapidly grow across the globe. Post-pandemic trends indicate an increasing emphasis on hygiene and safety during travel. The industry is witnessing the widespread adoption of disruptive technologies like AI, XR, IoT, and blockchain. The travel industry utilizes big data to understand traveler trends for targeted marketing. The transition to ecotourism is accelerating as businesses integrate zero-emission transit and carbon offset programs to reduce their carbon footprint.

The Travel Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, personalization, decarbonization, and travel safety will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!

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A travel boom is looming. But is the industry ready?

An increase in travel is expected between countries which have moderate COVID-19 caseloads and vaccine access. Image:  Unsplash/William Hook

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Darren rivas, steve saxon.

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Stay up to date:, travel and tourism.

• A new age of travel could be on the horizon, as vaccinations increase and caseloads become more manageable.
• A McKinsey survey reveals that travel is the second-most-desired activity in the U.S., after eating out.
• However, if the travel industry is not prepared, it could buckle under this new pressure.
• Building capacity, investing in digital innovation and revisiting commercial approaches will be key if countries want to seize value from this surge.

If things go well, we might be at the threshold of a new age of travel. Although COVID-19 variants may affect conditions, it seems only a matter of time before travelers in some parts of the world hit the road and take to the skies again, thanks to rising vaccination rates and manageable caseloads. Some countries have begun gingerly relaxing travel restrictions and reopening borders.

As the worst effects of the COVID-19 pandemic ebb, most indicators point to travel coming back—with a vengeance—as people look to reconnect, explore new destinations, or revisit reliable favorites. Many just want to get away from the confines of their homes. A McKinsey survey reveals traveling to be the second-most-desired activity among respondents (in first place: dining out). In the United States, air travel has hit two million daily passengers, closer to the prepandemic level of around 2.5 million than to the low of around 90,000, in April 2020. Hotel reservations and rental-car bookings are surging.

All these trends should taste sweet for the industry, but ill-prepared companies may find themselves facing the wrath of a cohort of leisure-focused vacationers who might already be struggling to keep up with new travel protocols. If the industry doesn’t work to increase capacity now, the ecosystem may buckle under the pressure, forcing travelers to endure long wait times and inflated prices.

This article projects two broad trajectories of how travel will likely bounce back, comparing countries that have near-zero caseloads with those that have more, but manageable, caseloads and higher vaccination rates. In both scenarios, travel companies that don’t prepare themselves for the forthcoming influx of travelers risk missing out on a valuable opportunity to recoup losses incurred during the height of the pandemic. On the flip side, we believe that by focusing on four key areas—building capacity, investing in digital innovation, revisiting commercial approaches, and learning from critical moments—travel companies can seize value as they exceed the needs and demands of their customers.

The tale of two travel recovery paths

Wherever in the world you look, you’ll see people itching to travel. Most high-income earners have not lost their jobs. In the United States, the savings rate among this demographic is 10 to 20 percent higher now than before the pandemic, and such people are eager to spend their money on travel. Leisure trips are expected to lead the rebound, with corporate travel trailing behind.

A recent survey of 4,700 respondents from 11 countries around the world, conducted by the International Air Transport Association (IATA), revealed that 57 percent of them expected to be traveling within two months of the pandemic’s containment, and 72 percent will do so as soon as they can meet friends and family. In our China travel survey, we see more and more respondents yearning for leisure trips further afield; 41 percent say they want their next trip to be outside China, the highest level we’ve seen, despite borders remaining sealed.

Yet it’s worth noting that despite the near-universal desire to travel, countries will likely manage their plans to reopen differently. Two main factors come into play here: current COVID-19 caseloads and vaccination rates. People living in countries with limited access to vaccines and uncontainable levels of cases—such as a number of countries in Africa and Southeast Asia—will continue to be bound by tight travel restrictions for some time to come.

Have you read?

These could be the most popular travel destinations after covid-19, covid-19 could change travel – but not in the way you think, how the travel industry can influence sustainable growth, travel will take off in and between countries with manageable caseloads.

We can expect a surge in travel in (and between) countries with manageable and moderate COVID-19 caseloads and vaccine access. These regions are willing to accept rising case levels as long as death and hospitalization rates stay low. In many European countries and the United States, a significant portion of the population has been inoculated. Such people feel safe enough to travel both domestically and internationally, especially with the introduction of safety measures such as the EU-issued digital health certificates given to people vaccinated against COVID-19. Despite fluctuating rates of new caseloads in these regions, the efficacy of the vaccine so far (to reduce the spread of the disease and avoid its worst effects) gives many people enough feeling of security to travel.

Countries in Europe that have gotten used to living with manageable caseloads of COVID-19 have begun to welcome visitors without asking them to quarantine: Iceland (March 2021), Cyprus (May 2021), and Malta (June 2021). In addition, Europe is open to vaccinated US travelers. After the US Centers for Disease Control and Prevention (CDC) started approving cruise vessels with conditional sailing certifications to enter the country, a Florida federal court ruled in June 2021 that CDC-issued regulations should serve only as nonbinding guidelines, further reducing restrictions on tourists.

If past instances serve as indicators, we’ll see travel demand soaring once travel restrictions are eased and freedom of mobility returns.

Domestic trips will lead the recovery of travel in near-zero countries

However, a slightly different picture is emerging for countries with near-zero caseloads. Countries in this group include Australia, China, New Zealand, and Singapore. Their governments face a difficult trade-off. They can open up national borders without quarantines—which will almost certainly lead to increased local transmissions of COVID-19 and an increase in new cases, especially in countries with low vaccination rates, such as Australia and New Zealand. Or, they can choose to continue imposing strict restrictions and quarantine measures until the pandemic has truly passed, which would deter all but the most determined of travelers. Unlike places that have adjusted to living with COVID-19, even a moderate increase of cases in countries with caseloads near zero would likely be unacceptable to the public.

That’s not to say there are no travel opportunities in these countries. First, we’ll likely see increased interest in domestic travel, especially for large countries with sizable home markets, such as Australia and China, which have traditionally been net exporters of tourists. With few international destinations open to visit, this group of travelers will likely seek out vacation experiences within their nations’ borders. China has seen hordes of tourists flood many scenic destinations and tourist sites, especially during peak travel seasons.

Second, even though travel bubbles have had only limited success so far, it may soon be possible for territories with very low COVID-19 caseloads and no local transmissions to open up access to each other. Mainland China, for instance, has been allowing citizens to travel to and from Macau without quarantine requirements. Hong Kong and Singapore have also restarted negotiations on a potential travel bubble between the two cities. The key is establishing common standards and trust in the public-health protocols and testing regimes of the participants in the travel bubble.

Four actions travel players must consider

Despite these promising signs, the tourism industry will likely struggle to capitalize on the imminent spike in travel demand, especially in Europe and the United States. From airlines and car rentals to hotels and airport restaurants, the entire travel supply chain is already showing signs of strain. Wait times at security checkpoints are stretching into hours at some airports, while popular vacation destinations, including Arizona, Florida, and Hawaii, are facing rental-car shortages.

Needless to say, bad news travels fast, and a negative experience can quickly become fodder for a viral video and bad publicity, leading customers to look for alternatives more in their control, including nearby drives and rental properties.

While the process is daunting, clear-sighted travel leaders know that preparing their organizations for a surge of travelers is also an opportunity to redefine their value propositions and make their offerings distinctive. This will not only reinstill confidence in travel but also increase customer loyalty. Leaders and executives would be wise to focus on the following four areas.

1. Bring back capacity

The most pressing imperative for all companies across the travel supply chain is bringing back capacity or, at the very least, ensuring that they’re able to do so. Many contract and temporary workers in the restaurant industry who were laid off during the pandemic have found other employment and are reluctant to go back to their former jobs, resulting in a labor crunch. In the United Kingdom, more than one in ten workers left the hospitality sector last year. In the United States, there was still a shortfall in April of around two million leisure and hospitality jobs—far greater than before the pandemic. Global aviation capacity levels are still well below prepandemic levels as many planes remain in long-term storage and staff remain furloughed. We believe that even though reactivating airline pilots and cabin crews, preparing grounded aircraft for service, and rehiring and training service staff can be pricey, the cost of standing by and doing nothing would be higher.

2. Invest innovatively to improve the entire customer journey

While cash might continue to be in short supply, an area still worth considering for overinvestment is digital operations. Remember that the customer experience is shaped across the entire end-to-end journey, from booking to travel to the return home. Even seasoned travelers will have to adapt to new protocols, such as digital health certificates and safety measures. Travelers now need more, not less, assistance. Furthermore, certain critical journeys and moments—such as a family vacation, an important business trip, or a last-minute emergency—carry a disproportionate weight in consumers’ minds when they plan their next trip. The anticipated volume of traffic during the summer and peak holiday periods will only compound these issues and bring about greater inconvenience in the overall system.

In our work in this sector, we have found that if even one pain point in the customer journey is not satisfactorily resolved, the entire perception of a travel company can be degraded. The industry needs to make sure that processes are smooth for reopening and that adequate assistance is available for travelers to help them adapt to new ways of traveling. It is likely that international trips will need additional documentation for some time. These requirements will vary by country and potentially by transit hub. They may include proof of COVID-19 vaccination (when, as well as which vaccine) and testing requirements (type of test and recency).

As the long wait times at airport checkpoints attest, manually navigating these complexities at the check-in desk is highly inefficient and prone to human error. Some airports are testing camera-powered and AI-based digital technologies to monitor crowd densities and reduce time spent standing in line—which makes the airport experience more bearable for travelers and ensures safe physical distancing. Autonomous robots are also being deployed to maintain hygiene standards; some are equipped with UV-light cleaners to disinfect areas, and others are outfitted with body-temperature sensors to help minimize the risk of virus outbreaks.

3. Reimagine commercial approaches

Travel companies may rethink their commercial approaches. The profiles of airline passengers and hotel guests will be different: more leisure guests, later booking windows, and higher demand for flexible tickets. Historical booking curves are no longer a good indicator of current behavior. Travel companies need to use every source of insight they can to anticipate demand and optimize pricing . Flexible pricing models can also ease customer discomfort with today’s heightened levels of unpredictability. For example, EasyJet now offers a Protection Promise program that gives fliers free changes up to two hours before the flight.

Hotels will need to find new purposes for meeting and conference spaces, which will be slower to fill. Airlines need to figure out how to fill intercontinental business class, likely with premium leisure promotions. For all travel companies, the boom may be higher in traveler numbers than in profits, as the most lucrative corporate business has been slow to return.

One year on: we look back at how the Forum’s networks have navigated the global response to COVID-19.

Using a multistakeholder approach, the Forum and its partners through its COVID Action Platform have provided countless solutions to navigate the COVID-19 pandemic worldwide, protecting lives and livelihoods.

Throughout 2020, along with launching its COVID Action Platform , the Forum and its Partners launched more than 40 initiatives in response to the pandemic.

The work continues. As one example, the COVID Response Alliance for Social Entrepreneurs is supporting 90,000 social entrepreneurs, with an impact on 1.4 billion people, working to serve the needs of excluded, marginalized and vulnerable groups in more than 190 countries.

Read more about the COVID-19 Tools Accelerator, our support of GAVI, the Vaccine Alliance, the Coalition for Epidemics Preparedness and Innovations (CEPI), and the COVAX initiative and innovative approaches to solve the pandemic, like our Common Trust Network – aiming to help roll out a “digital passport” in our Impact Story .

4. Learn from critical moments—and the wider ecosystem

Aside from streamlining processes and personalizing the customer experience, investing in digital analytics can allow companies to identify opportunities to differentiate their services. Companies would also be able to discern emerging trends and hiccups before they turn into nightmares. Industry players, such as online travel agents, may also be a trove of useful insights pertaining to how the external ecosystem is evolving; their experiences may be beneficial for hotels and airlines to explore potential partnerships with them.

The various parts of the travel industry have to work together as a whole to usher in a safe return of travel. Even as individual companies improve their internal operations, they should also keep a close eye on industry-wide developments, watching for collaboration opportunities. The industry and governments will have to reach consensus on safety standards and requirements. The IATA travel pass is a plug-in that could be used on airlines’ mobile apps, for example. Currently being tested by many airlines as a way to ensure passenger health, the app would allow travelers to manage verified certifications for COVID-19 vaccines and test results. Governments, in turn, could consider accepting and embedding the app into the flight check-in workflow.

It’s been a long time coming, but we see several factors aligning that could lead to a short-term travel boom, although not all countries and customer segments will boom at the same time. With continued perseverance, travel companies can ensure that travel is not just back but better.

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10 Economic impacts of tourism + explanations + examples

Disclaimer: Some posts on Tourism Teacher may contain affiliate links. If you appreciate this content, you can show your support by making a purchase through these links or by buying me a coffee . Thank you for your support!

There are many economic impacts of tourism, and it is important that we understand what they are and how we can maximise the positive economic impacts of tourism and minimise the negative economic impacts of tourism.

Many argue that the tourism industry is the largest industry in the world. While its actual value is difficult to accurately determine, the economic potential of the tourism industry is indisputable. In fact, it is because of the positive economic impacts that most destinations embark on their tourism journey.

There is, however, more than meets the eye in most cases. The positive economic impacts of tourism are often not as significant as anticipated. Furthermore, tourism activity tends to bring with it unwanted and often unexpected negative economic impacts of tourism.

In this article I will discuss the importance of understanding the economic impacts of tourism and what the economic impacts of tourism might be. A range of positive and negative impacts are discussed and case studies are provided.

At the end of the post I have provided some additional reading on the economic impacts of tourism for tourism stakeholders , students and those who are interested in learning more.

 Foreign exchange earnings

Contribution to government revenues, employment generation, contribution to local economies, development of the private sector, infrastructure cost, increase in prices, economic dependence of the local community on tourism, foreign ownership and management, economic impacts of tourism: conclusion, further reading on the economic impacts of tourism, the economic impacts of tourism: why governments invest.

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 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 .

In short, tourism is an example of an economic policy pursued by governments because:

•      it brings in foreign exchange
•      it generates employment
•      it creates economic activity

Building and developing a tourism industry, however, involves a lot of initial and ongoing expenditure. The airport may need expanding. The beaches need to be regularly cleaned. New roads may need to be built. All of this takes money, which is usually a financial outlay required by the Government.

For governments, decisions have to be made regarding their expenditure. They must ask questions such as:

How much money should be spent on the provision of social services such as health, education, housing?

How much should be spent on building new tourism facilities or maintaining existing ones?

If financial investment and resources are provided for tourism, the issue of opportunity costs arises.

By opportunity costs, I mean that by spending money on tourism, money will not be spent somewhere else. Think of it like this- we all have a specified amount of money and when it runs out, it runs out. If we decide to buy the new shoes instead of going out for dinner than we might look great, but have nowhere to go…!

In tourism, this means that the money and resources that are used for one purpose may not then be available to be used for other purposes. Some destinations have been known to spend more money on tourism than on providing education or healthcare for the people who live there, for example.

This can be said for other stakeholders of the tourism industry too.

There are a number of independent, franchised or multinational investors who play an important role in the industry. They may own hotels, roads or land amongst other aspects that are important players in the overall success of the tourism industry. Many businesses and individuals will take out loans to help fund their initial ventures.

So investing in tourism is big business, that much is clear. What what are the positive and negative impacts of this?

Positive economic impacts of tourism

So what are the positive economic impacts of tourism? As I explained, most destinations choose to invest their time and money into tourism because of the positive economic impacts that they hope to achieve. There are a range of possible positive economic impacts. I will explain the most common economic benefits of tourism below.

One of the biggest benefits of tourism is the ability to make money 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. I remember when I visited Goa and somebody helped to carry my luggage at the airport. I wanted to give them a small tip and handed them some Rupees only to be told that the young man would prefer a British Pound!

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.

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.

Taxes differ considerably between destinations. I will never forget the first time that I was asked to pay a departure tax (I had never heard of it before then), because I was on my way home from a six month backpacking trip and I was almost out of money!

Japan is known for its high departure taxes. Here is a video by a travel blogger explaining how it works.

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.

Take food, for example. A tourist may buy food at a local supermarket. The supermarket is not directly associated with tourism, but if it wasn’t for tourism its revenues wouldn’t be as high because the tourists would not shop there.

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 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. Take a fisherman, for example. He does not have any contact of dealings with tourists. BUT he does sell his fish to the hotel which serves tourists. So he is indirectly employed by the tourism industry, because without the tourists he would not be supplying the fish to the hotel.

It is because of these indirect relationships, that it is very difficult to accurately measure the economic value of tourism.

It is also difficult to say how many people are employed, directly and indirectly, within the tourism industry.

Furthermore, many informal employments may not be officially accounted for. Think tut tut driver in Cambodia or street seller in The Gambia – these people are not likely to be registered by the state and therefore their earnings are not declared.

It is for this reason that some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

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.

The multiplier effect relates to spending in one place creating economic benefits elsewhere. Tourism can do wonders for a destination in areas that may seem to be completely unrelated to tourism, but which are actually connected somewhere in the economic system.

Let me give you an example.

A tourist buys an omelet and a glass of orange juice for their breakfast in the restaurant of their hotel. This simple transaction actually has a significant multiplier effect. Below I have listed just a few of the effects of the tourist buying this breakfast.

The waiter is paid a salary- he spends his salary on schooling for his kids- the school has more money to spend on equipment- the standard of education at the school increases- the kids graduate with better qualifications- as adults, they secure better paying jobs- they can then spend more money in the local community…

The restaurant purchases eggs from a local farmer- the farmer uses that money to buy some more chickens- the chicken breeder uses that money to improve the standards of their cages, meaning that the chickens are healthier, live longer and lay more eggs- they can now sell the chickens for a higher price- the increased money made means that they can hire an extra employee- the employee spends his income in the local community…

The restaurant purchase the oranges from a local supplier- the supplier uses this money to pay the lorry driver who transports the oranges- the lorry driver pays road tax- the Government uses said road tax income to fix pot holes in the road- the improved roads make journeys quicker for the local community…

So as you can see, that breakfast that the tourist probably gave not another thought to after taking his last mouthful of egg, actually had the potential to have a significant economic impact on the local community!

The private sector has continuously developed within the tourism industry and owning a business within the private sector can be extremely profitable; making this a positive economic impact of tourism.

Whilst many businesses that you will come across are multinational, internationally-owned organisations (which contribute towards economic leakage ).

Many are also owned by the local community. This is the case even more so in recent years due to the rise in the popularity of the sharing economy and the likes of Airbnb and Uber, which encourage the growth of businesses within the local community.

Every destination is different with regards to how they manage the development of the private sector in tourism.

Some destinations do not allow multinational organisations for fear that they will steal business and thus profits away from local people. I have seen this myself in Italy when I was in search of a Starbucks mug for my collection , only to find that Italy has not allowed the company to open up any shops in their country because they are very proud of their individually-owned coffee shops.

Negative economic impacts of tourism

Unfortunately, the tourism industry doesn’t always smell of roses and there are also several negative economic impacts of tourism.

There are many hidden costs to tourism, which can have unfavourable economic effects on the host community.

Whilst such negative impacts are well documented in the tourism literature, many tourists are unaware of the negative effects that their actions may cause. Likewise, many destinations who are inexperienced or uneducated in tourism and economics may not be aware of the problems that can occur if tourism is not management properly.

Below, I will outline the most prominent negative economic impacts of tourism.

Economic leakage in tourism is one of the major negative economic impacts of tourism. This is when money spent does not remain in the country but ends up elsewhere; therefore limiting the economic benefits of tourism to the host destination.

The biggest culprits of economic leakage are multinational and internationally-owned corporations, all-inclusive holidays and enclave tourism.

I have written a detailed post on the concept of economic leakage in tourism, you can take a look here- Economic leakage in tourism explained .

Another one of the negative economic impacts of tourism is the cost of infrastructure. Tourism development can cost the local government and local taxpayers a great deal of money.

Tourism may require the government to improve the airport, roads and other infrastructure, which are costly. The development of the third runway at London Heathrow, for example, is estimated to cost £18.6billion!

Money spent in these areas may reduce government money needed in other critical areas such as education and health, as I outlined previously in my discussion on opportunity costs.

One of the most obvious economic impacts of tourism is that the very presence of tourism increases prices in the local area.

Have you ever tried to buy a can of Coke in the supermarket in your hotel? Or the bar on the beachfront? Walk five minutes down the road and try buying that same can in a local shop- I promise you, in the majority of cases you will see a BIG difference In cost! (For more travel hacks like this subscribe to my newsletter – I send out lots of tips, tricks and coupons!)

Increasing demand for basic services and goods from tourists will often cause price hikes that negatively impact local residents whose income does not increase proportionately.

Tourism development and the related rise in real estate demand may dramatically increase building costs and land values. This often means that local people will be forced to move away from the area that tourism is located, known as gentrification.

Taking measures to ensure that tourism is managed sustainably can help to mitigate this negative economic impact of tourism. Techniques such as employing only local people, limiting the number of all-inclusive hotels and encouraging the purchasing of local products and services can all help.

Another one of the major economic impacts of tourism is dependency. Many countries run the risk of becoming too dependant on tourism. The country sees $ signs and places all of its efforts in tourism. Whilst this can work out well, it is also risky business!

If for some reason tourism begins to lack in a destination, then it is important that the destination has alternative methods of making money. If they don’t, then they run the risk of being in severe financial difficulty if there is a decline in their tourism industry.

In The Gambia, for instance, 30% of the workforce depends directly or indirectly on tourism. In small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica.

There are a number of reasons that tourism could decline in a destination.

The Gambia has experienced this just recently when they had a double hit on their tourism industry. The first hit was due to political instability in the country, which has put many tourists off visiting, and the second was when airline Monarch went bust, as they had a large market share in flights to The Gambia.

Other issues that could result in a decline in tourism includes economic recession, natural disasters and changing tourism patterns. Over-reliance on tourism carries risks to tourism-dependent economies, which can have devastating consequences.

The last of the negative economic impacts of tourism that I will discuss is that of foreign ownership and management.

As enterprise in the developed world becomes increasingly expensive, many businesses choose to go abroad. Whilst this may save the business money, it is usually not so beneficial for the economy of the host destination.

Foreign companies often bring with them their own staff, thus limiting the economic impact of increased employment. They will usually also export a large proportion of their income to the country where they are based. You can read more on this in my post on economic leakage in tourism .

As I have demonstrated in this post, tourism is a significant economic driver the world over. However, not all economic impacts of tourism are positive. In order to ensure that the economic impacts of tourism are maximised, careful management of the tourism industry is required.

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Sustainable Tourism Practices and Destinations: Examples from Around the World

Sustainable Tourism Practices: Sustainable tourism is a growing trend in the travel industry that focuses on minimizing the environmental and social impact of tourism while providing economic benefits to local communities. From eco-friendly accommodations to responsible travel practices, there are many ways that tourism can be made more sustainable. Around the world, destinations and businesses are implementing sustainable tourismthat support conservation, reduce carbon emissions, and promote local cultural heritage. These efforts not only benefit the planet, but also provide a unique and authentic travel experience for visitors. In this context, we will explore some of the sustainable tourism and destinations from around the world that are leading the way in promoting responsible and ethical tourism.

Here are 40 examples of sustainable tourism and destinations from around the world:

• The Galapagos Islands, Ecuador – A protected wildlife sanctuary that limits visitor numbers to prevent environmental damage and promote sustainable tourism.
• Costa Rica – A country that has made a strong commitment to sustainable tourism, with a focus on eco-tourism, community-based tourism, and conservation efforts.
• Bhutan – A country that measures its economic success through a Gross National Happiness index, which includes the protection of the environment and cultural heritage.
• Norway – A country that is known for its sustainable tourism, including eco-friendly transportation, green energy, and sustainable tourism certification programs.
• The Netherlands – A country that is promoting sustainable tourism through initiatives such as green hotels, bike-friendly cities, and nature conservation programs.
• New Zealand – A country that has a strong focus on sustainable tourism, including eco-tourism, conservation efforts, and responsible travel practices.
• The Amazon Rainforest, Brazil – A region that has adopted sustainable tourism to promote conservation and support local communities.
• The Great Barrier Reef, Australia – A protected marine park that promotes sustainable tourism, such as reducing carbon emissions and protecting the natural environment.
• Kenya – A country that has implemented sustainable tourism, including wildlife conservation, community-based tourism, and eco-friendly lodges.
• Iceland – A country that is promoting sustainable tourism through eco-friendly transportation, renewable energy, and eco-certification programs.
• South Africa – A country that is known for its conservation efforts, including wildlife protection and community-based tourism.
• The Azores, Portugal – A group of islands that is promoting sustainable tourism through eco-tourism, whale watching, and nature conservation programs.
• The Serengeti, Tanzania – A protected wildlife sanctuary that promotes responsible tourism practices, such as reducing carbon emissions and supporting local communities.
• The Cook Islands, Pacific Ocean – A group of islands that is committed to sustainable tourism, including protecting the environment and supporting local communities.
• Thailand – A country that has implemented sustainable practices, including community-based tourism, wildlife conservation, and responsible travel.
• The Faroe Islands, Denmark – A group of islands that is promoting sustainable tourism through eco-friendly transportation, sustainable seafood, and nature conservation programs.
• The Lake District, England – A protected national park that promotes sustainable tourism, such as reducing carbon emissions and supporting local communities.
• The Annapurna Region, Nepal – A region that is promoting sustainable tourism through community-based tourism, conservation efforts, and responsible trekking practices.
• The Maasai Mara, Kenya – A protected wildlife reserve that promotes sustainable practices, such as reducing carbon emissions and supporting local communities.
• The Blue Mountains, Australia – A protected national park that promotes sustainable tourism practices, such as reducing carbon emissions and supporting local communities.
• Guna Yala, Panama – A protected indigenous territory that promotes sustainable tourism, such as supporting traditional livelihoods and preserving cultural heritage.
• The Isle of Eigg, Scotland – An island that is promoting sustainable tourism through renewable energy, eco-friendly accommodations, and community-based tourism initiatives.
• The San Blas Islands, Panama – A group of islands that is promoting sustainable tourism through eco-tourism, community-based tourism, and responsible travel practices.
• The Burren, Ireland – A protected national park that promotes sustainable practices, such as reducing carbon emissions and supporting local communities.
• The Bay of Fundy, Canada – A protected marine park that promotes sustainable tourism practices, such as reducing carbon emissions and supporting local communities.
• The Lofoten Islands, Norway – An archipelago that is promoting sustainable tourism through eco-friendly transportation, responsible fishing, and community-based tourism initiatives.
• The Tongariro National Park, New Zealand – A protected national park that promotes sustainable tourism, such as reducing carbon emissions and supporting local communities.
• The Danube Delta, Romania – A protected wetland that promotes sustainable tourism practices, such as eco-tourism and responsible travel practices.
• The Douro Valley, Portugal – A region that is promoting sustainable tourism through eco-tourism, responsible wine tourism, and community-based tourism initiatives.
• The Lake Titicaca, Peru/Bolivia – A protected lake that promotes sustainable tourism, such as preserving cultural heritage and supporting traditional livelihoods.
• The Everglades, United States – A protected wetland that promotes sustainable tourism, such as reducing carbon emissions and supporting local communities.
• The Cinque Terre, Italy – A protected coastal area that promotes sustainable tourism practices, such as reducing carbon emissions and supporting local communities.
• The Mekong Delta, Vietnam – A region that is promoting sustainable tourism through eco-tourism, responsible travel practices, and community-based tourism initiatives.
• The Lake District, Chile – A protected national park that promotes sustainable tourism practices, such as reducing carbon emissions and supporting local communities.
• The Sinharaja Forest Reserve , Sri Lanka – A protected rainforest that promotes sustainable tourism, such as eco-tourism and responsible travel practices.
• The Jasper National Park, Canada – A protected national park that promotes sustainable tourism practices, such as reducing carbon emissions and supporting local communities.
• The Arctic, various countries – A region that is promoting sustainable tourism through eco-tourism, responsible travel practices, and nature conservation programs.
• The Torres del Paine National Park, Chile – A protected national park that promotes sustainable tourism, such as reducing carbon emissions and supporting local communities.
• The Sagarmatha National Park, Nepal – A protected national park that promotes sustainable tourism practices, such as eco-tourism and responsible trekking practices.
• The Monteverde Cloud Forest Reserve, Costa Rica – A protected cloud forest that promotes sustainable tourism practices, such as eco-tourism and nature conservation programs.

These are just a few more examples of the many destinations and businesses around the world that are adopting sustainable tourism. With a growing focus on responsible and ethical tourism, sustainable tourism is becoming an increasingly important industry worldwide.

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Frequently Asked Questions About Sustainable Tourism Practices

What is sustainable tourism?

Sustainable tourism is a form of tourism that focuses on minimizing the environmental and social impact of travel while providing economic benefits to local communities.

What are some sustainable tourism practices?

Some sustainable tourism practices include supporting conservation efforts, reducing carbon emissions, promoting local cultural heritage, and supporting local communities through community-based tourism initiatives.

Why is sustainable tourism important?

Sustainable tourism is important because it helps to preserve natural and cultural resources, provides economic benefits to local communities, and promotes responsible and ethical travel practices.

How can travelers practice sustainable tourism?

Travelers can practice sustainable tourism by supporting eco-friendly accommodations, engaging in responsible travel practices, supporting local communities, and minimizing their carbon footprint.

What are some examples of sustainable tourism destinations?

Some examples of sustainable tourism destinations include national parks, protected areas, eco-tourism lodges, and community-based tourism initiatives.

How can tourism businesses implement sustainable tourism practices?

Tourism businesses can implement sustainable practices by reducing their carbon emissions, supporting local communities, promoting conservation efforts, and adopting eco-friendly practices.

What is community-based tourism?

Community-based tourism is a form of tourism that involves local communities in the tourism industry, providing economic benefits while preserving local culture and traditions.

What is responsible tourism?

Responsible tourism is a form of tourism that focuses on minimizing the environmental and social impact of travel while providing economic benefits to local communities and promoting cultural awareness.

What is the difference between sustainable tourism and ecotourism?

Sustainable tourism is a broader concept that encompasses all forms of tourism that are socially, economically, and environmentally responsible, while ecotourism is a specific form of tourism that focuses on nature-based experiences that support conservation efforts.

How does sustainable tourism benefit local communities?

Sustainable tourism benefits local communities by providing economic benefits through job creation and supporting local businesses, while also preserving cultural heritage and traditions.

How can tourists ensure they are practicing sustainable tourism?

Tourists can ensure they are practicing sustainable tourism by choosing eco-friendly accommodations, engaging in responsible travel practices, supporting local communities, and minimizing their carbon footprint.

What role do governments play in promoting sustainable tourism?

Governments play an important role in promoting sustainable tourism by establishing policies and regulations that support conservation efforts, promoting sustainable practices, and providing funding for sustainable tourism initiatives.

What are some challenges to implementing sustainable tourism practices?

Some challenges to implementing sustainable tourism practices include the high cost of implementing eco-friendly practices, lack of awareness among tourists, and limited resources in developing countries.

What is the role of tourism businesses in promoting sustainable tourism?

Tourism businesses play a critical role in promoting sustainable tourism by adopting eco-friendly practices, supporting conservation efforts, and engaging with local communities to ensure their economic benefits are sustainable.

What is the impact of sustainable tourism on the environment?

Sustainable tourism aims to minimize the impact of tourism on the environment by reducing carbon emissions, supporting conservation efforts, and promoting eco-friendly practices. This can have a positive impact on the environment by preserving natural resources and reducing pollution.

What is the role of tourists in promoting sustainable tourism?

Tourists have a crucial role to play in promoting sustainable tourism by supporting eco-friendly accommodations, engaging in responsible travel practices, supporting local communities, and minimizing their carbon footprint.

What is the role of local communities in sustainable tourism?

Local communities play a vital role in sustainable tourism by providing unique cultural experiences, supporting conservation efforts, and benefitting from the economic opportunities that tourism can bring. Sustainable tourism initiatives often involve working with local communities to ensure their voices are heard and their needs are met.

How can sustainable tourism help preserve cultural heritage?

Sustainable tourism can help preserve cultural heritage by supporting local cultural practices and traditions, promoting cultural awareness, and providing economic benefits to local communities. In doing so, it helps to maintain and celebrate cultural diversity and promote the value of cultural heritage.

What is the impact of sustainable tourism on the economy?

Sustainable tourism can have a positive impact on the economy by providing job opportunities, supporting local businesses, and promoting economic growth in tourism-dependent communities. It can also encourage investment in infrastructure and services, leading to long-term economic benefits.

What is the role of education in promoting sustainable tourism?

Education plays a critical role in promoting sustainable tourism by raising awareness among tourists, tourism businesses, and local communities. It can help to promote best practices, encourage responsible travel behavior, and foster a culture of sustainability.

How can technology be used to promote sustainable tourism?

Technology can be used to promote sustainable tourism by supporting digital platforms that provide information and resources for sustainable travel, reducing the need for paper-based materials and promoting more efficient and eco-friendly travel methods.

What is the role of sustainable tourism in climate change mitigation?

Sustainable tourism can contribute to climate change mitigation by promoting low-carbon travel options, reducing carbon emissions, and supporting conservation efforts that help to mitigate the impact of climate change on natural resources.

How can sustainable tourism be measured?

Sustainable tourism can be measured using a range of indicators, such as carbon emissions, waste reduction, water conservation, and economic impact. There are also several certification programs and sustainability standards that can be used to assess the sustainability of tourism businesses and destinations.

How can travelers support sustainable tourism initiatives?

Travelers can support sustainable tourism initiatives by choosing eco-friendly accommodations, engaging in responsible travel practices, supporting local communities, and minimizing their carbon footprint. They can also seek out sustainable tourism certification programs and support businesses that are committed to sustainable tourism practices.

• Carbon emissions
• community-based tourism
• conservation
• Cultural Heritage
• Eco-friendly travel
• ethical tourism
• Local Communities
• Responsible Tourism

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What is Industrial Tourism: Definition, Stats, Benefits & Real-Life Examples

What is industrial tourism?

Stats about industrial tourism, benefits of industrial tourism, who is it for, types of industrial tourism, real-life examples.

The travel sector is one of the most diverse industries out there. With so many moving pieces on the board, it’s hard to stay on top of all developments and make informed business decisions. Industrial tourism is one of the newest additions to the large family of tourism types . 

It is one of the growing sub-sectors, and it attracts many companies to explore it further . It’s size is projected to grow at a CAGR of 27.% from 2022 to 2028 . However, before deciding whether it is worth your time and money, you need to learn all about it.

We’ve put together a sort of ultimate guide on industrial tourism. Below you will be able to find what industrial tourism is, the most recent and important stats, benefits, real-life examples, and more.

After the industrial revolution, industries around the globe started flourishing. People got more interested in how products are made, especially in particular details such as the manufacturing process, material sourcing, and specifics regarding operational logistics. That’s why many experts refer to industrial tourism as one of the oldest forms of tourism, but it’s really starting to become popular nowadays.

What is industrial tourism exactly? To understand the consent of industrial tourism, you should learn about educational tourism because industrial tourism is a perfect example of educational tourism.

Educational tourism encompasses all tourism products and services tailored to enable travelers to acquire new information, knowledge, or skills while traveling. In its essence, the definition of industrial tourism reflects the one of educational tourism. However, it’s a bit more specific.

“Industrial tourism is a type of tourism of visiting locations linked to the industries that are most common in those places.”

The definition can get you thinking that it’s a very narrow field. However, industrial tourism is one of the most diverse tourism types. It involves a variety of activities and experiences. Here are some examples:

• Experience firsthand the manufacturing process of a specific product;
• Organized visit to a specific company;
• Organized visit to an industrial heritage site;
• Educational tours with a focus on teaching the history of a particular industry or regional company.

Unlike traditional consumer tourism, which focuses on tourist attractions such as entertainment, sightseeing, and adventure, industrial tourism focuses on education and experience “behind the scenes” aspects of production. In other words, the core activity that tourists engage with is non-tourism-oriented . 

Industrial tourism is not reserved only for visiting locations where the manufacturing industry is dominant. Tourists also enjoy visiting sites of handcrafted goods, food, and drink, and branded luxury goods and discovering products that are symbols of a specific geographical region.

There are numerous industrial tourism studies and research. One of the most interesting recent findings is that people find industrial tourism as attractive as any other type of tourism. Also, no significant differences were recorded between people of different ages, education levels, and gender. 

One of the best ways to keep up with the trends in specific travel industry markets is to track changes in market size and growth rate . The global industrial tourism market size in 2021 was $986 million . It is projected to grow at a CAGR of 27% over the next 6 years to finally reach $1.258 billion by 2028 .

The financial benefits of industrial tourism are also being researched. Its potential to revitalize local economies is put under the scope. One thing is certain – industrial tourism can help revitalize post-industrial sites and facilitate the economic development of regions . 

Unfortunately, the World Tourism Organisation doesn’t provide stats on industrial tourism or the demand for industrial tourism products. However, we can assess the demand by taking a look at local and national stats . 

Australia, more specifically New South Wales, records a 10% increase in demand for industrial tourism packages . France also recorded the same trends with over 8 million people visiting industrial sites in the period of one year .

More and more companies open their doors for industrial tourists. In the UK over 6% of companies are open for visitors and the number keeps increasing.

Industrial tourism market share is increasing across countries. Industrial tourism attractions are especially popular in China. In 2017, 140 million tourists visited industrial sites in China, and the industrial tourism revenue reached $3 billion . The same report outlines the two most popular types of industrial tourism – industrial production tourism and industrial heritage tourism.

The industrial tourism market in Japan is also among the markets with the highest revenue generated per year. Japan’s most popular industrial tourism packages include factory tours, farm tours, craft centers, plant tours, industrial museums, and brewery tours. 

In 2020, Japanese Renew received over 30,000 visitors , which is a great success considering how small the industrial tourism-oriented event is compared to other travel-related events.

Local benefits

Industrial tourism offers many benefits. First, it can help boost economies in local regions and even help companies generate additional revenue streams from it. Direct financial benefits for firms that decide to open the door to industrial tourists come from the following:

• Entrance tickets – the entrance fees can significantly help companies stay on top of their finances and even get access to funds to grow and enter new markets;
• On-site sales – on-site sales are an excellent opportunity for companies to generate more revenue. They can sell products available in stores at promotional prices or develop a brand-new product line only available to industrial tourists.

There are also reputational benefits. Industrial tourism can help companies improve their brand image, promote products and services, and build long-lasting customer relationships. 

Industry benefits

Finally, industrial tourism offers opportunities to travel agents and OTAs as well. It can help them diversify their travel product offer, attract more tourists, and capture more revenue.  

Industrial tourism packages are suitable for OTAs of all sizes and individual travel agents. They can help them deliver more attractive product portfolios, gain a competitive advantage, and attract consumers interested in industrial tourism packages. 

Industrial tourism is a go-to option for people who want to get more out of travel. It’s a perfect choice for travelers who want to satisfy their intellectual curiosity and learn details regarding product design and manufacturing. As more people are stepping away from traditional vacation travel and wanting to try alternative travel, industrial tourism presents itself as a viable opportunity to explore.

This type of tourism allows travelers to discover new locations and experience exclusive “behind-the-scenes” arrangements. They can learn how their favorite products are made, taste the local food and beverage, and learn new historical facts about the region and local industry.

Industrial tourism is one of the most dynamic travel sectors. It continues to accommodate the needs of industrial travelers. While there are some shifts in industrial tourism trends from time to time, we can talk about specific types and forms of industrial tourism.

Based on the on-site activity and experience, we can divide industrial tourism into several types:

• Factory tours – these tours include organized visits to one of the prominent factories in the region. The most common goals are to enable travelers to learn about the manufacturing process and discover the company’s history;
• Work watching – work watching enables travelers to learn details about specific manufacturing processes, which is quite fun and engaging in some industries;
• Farm tours – farm tours put travelers in a unique position to firsthand experience life on a farm and discover details about different processes that take place at farms;
• Mine tours – some tourists enjoy taking a trip underground to visit old and abandoned or still operational mines;
• Wine tours – wine tours are extremely popular among tourists who enjoy quality wines and want to explore famous wine regions, see the wine production in person, and taste different wines.

Industrial tourism doesn’t only include visits to places that are currently operational. Many industrial tourists enjoy visiting closed factories and mines . Some of the old factories are turned into museums, restaurants, and art galleries. These locations enable a sub-sector of industrial tourism called post-industrial tourism. 

Each one of these locations offers a unique experience and an exciting story to learn . Based on the locations and activities tourists like to explore and experience, industrial tourists can be divided into the following categories:

• Stalkers – these tourists are interested in visiting closed and abandoned locations for industrial purposes;
• Diggers – this term is used to describe tourists who prefer underground locations such as sewers and catacombs;
• Roofing – roofing is a type of industrial tourism that attracts tourists comfortable with heights. You can find these tourists visiting dams and skyscrapers.

The best way to understand what industrial tourism is all about is to look at some real-life examples . Below you can find some noteworthy industrial tourism examples.

Industrial heritage sites in Katowice and Silesia region

The Silesia region in Poland is considered an industrial tourist goldmine. It has an abundance of overgrown slag heaps and derelict factories . Industrial tourism is flourishing in these parts. There is even an official Silesian Industrial Monuments Route specifically tailored for industry-savvy tourists.

One of the most popular destinations in Katowice is a former Katowice Coal Mine and Industrial Ethnography Museum in the Nikiszowiec district. 

The attractive industrial tourism destinations in Kawasaki, Japan

Kawasaki is the industrial tourism center of Japan . It has more than a few attractive destinations tourists can explore . Most importantly, the destinations offer completely different experiences, thus making the entire region attractive to industrial tourists from all corners of the world.

The most noteworthy destinations include:

• Kawasaki Mari-in – this is the main city’s port which tourists can explore on foot or from the observation deck;
• Toshiba Science Museum – this museum is perfect for travelers who want to learn everything there is to know about the Toshiba brand;
• Kawasaki EcoLife Museum of the Future – a go-to destination for travelers interested in renewable energy solutions;
• Ajinomoto Umami Science Square – this is a place where tourists can do various things ranging from tasting umami to creating Ajinomoto.

Japan has to offer other sites apart from Kawasaki, including the Noritake Company near Tokyo and the Toyota Commemorative Museum of Industry and Technology.  

Diverse industrial tourism offer in Minsk, Belarus

Minks, Belarus, is another popular destination on every industrial traveler’s map. As the industry center of Belarus, Minsk has a lot to offer. Travelers can learn all about the products, interesting places, and secrets of some of the biggest Belarus brands.

Some of this city’s most famous industrial tourism attractions include Minsk Tractor Plant , Beer Tour in the Alivaria Brewery, and Gold Tour in the Minsk Jewellery Factory Zorka. 

Gujarat, India, is the industrial tourism country’s center

India has one of the most diverse tourism offers. Industrial tourism is one of the tourism types available in this country. The most noteworthy example is the Gujarat region, the Anand-Amul Dairy factory , a historic place with great importance for the entire region. In fact, this factory focuses on producing sweets, ice cream, butter, and ghee and was the main cog in the milk revolution machine, which changed the region forever.

The Catalan capital’s industrial tourism attractions

Barcelona is most famous for its remarkable architecture. However, recently, tourists have recognized its incredible industrial tourism potential . The majority of the main attractions are close to the city. 

Some of the most popular ones are Colonia Gell which is unique for its use of steam energy; Colonia Sedo , with a museum to enable visitors to understand the everyday life at this cotton colony – and the prominent textile colony of Colonia Borgonya .

The Italian archipelago Murano and its attractive industrial tourism offer

Venetian lagoon in Italy is famous for Murano – an island known for Murano glassware . Many people refer to Murano as an island while it’s in fact a collection of islands (archipelago) connected by bridges. The island’s glass manufacturing industries deliver some of the most unique and colorful products . 

The glass industry’s colorful and mesmerizing products are not the only thing that interests industrial tourists. The glass industry in these parts has 8 centuries of engaging industry travelers can learn . Additionally, tourists can visit the Murano Glass Factory and see glass masters blow glass work on site .

Industrial tourism is definitely gaining in popularity. There are many unique types, each offering different experiences and levels of engagement . Consumers have many options to choose from, as do travel agents and OTAs. 

As you can see, some regions, factories, and countries are already reaping all the benefits this tourism type has to offer. It’s safe to assume that industrial tourism will become even more popular in the foreseeable future with new generations of tourists coming of age to travel on their own and have memorable experiences.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Aurora Tourism in Iceland: You Can Seek, but You May Not Find

The country markets itself as a destination to see the northern lights — especially this year, which is a peak time for solar activity. But they can be elusive, as one writer recently found.

In Reykjavík, Iceland, aurora borealis tourism is a booming business. Hopeful tourists board buses to head out into the night in search of the northern lights. Credit... Sigga Ella for The New York Times

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By Amelia Nierenberg

Amelia Nierenberg spent four nights searching for the northern lights in Iceland.

• March 25, 2024

From the outside, it may seem like the northern lights dance across Iceland’s skies each night. On Icelandair ads, planes fly across shimmering curtains in the sky. On social media, travelers gaze at the green bands above them . The lights are even on some recycling bins in Reykjavík, the capital: “Keep Iceland Clean.”

In the past decade or so, an aurora borealis industrial complex has boomed in Iceland. Many rent a car and go out on their own, but there are northern lights big bus tours and northern lights minibus tours and northern lights Super Jeep tours . There are private guides and boat cruises . There’s an observatory base camp . There’s even a museum .

But the lights can be elusive.

“Tourists sometimes expect, like, ‘At what time do you turn them on?’” said Björn Saevar Einarsson, a forecaster at Iceland’s meteorological office , chuckling. “Like we have a switch in the back room.”

This year, the letdowns are especially intense.

The northern lights, which are also called the aurora borealis, are most visible when there are solar flares, which are big eruptions on the sun that send charged particles toward Earth. This year, the sun is approaching the peak of its 11-year cycle of activity , which some assume means that the displays could peak, too.

But the enhanced solar activity doesn’t necessarily mean the northern lights will be brighter or more frequent, scientists wearily explain. Instead, they mostly mean that the lights can be seen farther south than usual: In recent months, they have been visible in Arizona , Missouri and southern England .

That doesn’t mean much for Iceland.

In fact, Icelanders and scientists said, this winter is nothing special. Sometimes, the lights are there. Sometimes, they aren’t. Just like always.

Hunting the lights

But nothing special, with the northern lights, is still very special. And so tourists keep coming .

Last month, I joined the fray. For four nights, I looked for telltale sky shimmers in and around Reykjavík.

I booked my tickets riding high — this was the best year yet, right? But as I learned more, and as my flight neared, my hopes ebbed. Scientists and tour leaders gently told me that the skies were cloudy and the solar activity seemed quiet.

“Just to let you know the forecast doesn’t look too good” Inga Dís Richter, the chief commercial officer at Icelandia , a tourism agency, wrote in an email two days before I planned to take a minibus trip with Reykjavik Excursions , one of its tour operators.

“But,” she added, “this can change.”

To find the lights, guides and travelers often rely on aurora forecasts, which overlay cloud cover and solar activity. They check them constantly, like a bride with an outdoor wedding in mid-April.

Some of the forecasts are free, like the aurora forecast run by Iceland’s meteorological office or Iceland at Night , which includes space weather. (Some are not — Aurora Forecast , which costs $12.99 a year, sends alerts.) Many people also turn to Facebook pages , where enthusiasts hungrily swap sightings.

Luck, though, is everything.

“There’s only one thing less predictable with the northern lights, and that’s the Arctic weather,” said John Mason, a global expert on the northern lights. “An aurora forecast is barely worth the paper that it’s written on.”

The guides work hard to explain the science, and set expectations. Most companies offer a free rebooking option if the lights do not show.

On my first night of aurora stalking, despite Ms. Richter’s warnings, I joined an expectant group on the Reykjavík Excursions minibus. For $88, I got a seat on the 19-person bus, which left the city’s central bus station at 9:30 p.m.

Over the next three to four hours, we would drive through the Icelandic night together. I’d either see something astonishing with these strangers — the sky, banded with light — or shiver with them shoulder-to-shoulder, awkward in the cold.

As we pulled onto the road, Gudjon Gunnarsson, the guide, set the mood early. “We are going hunting for the lights,” he said, emphasizing the word “hunting,” “similar to going out fishing in a lake.”

He drove for about 45 minutes, letting Reykjavík’s glow fade behind us. The city has about 140,000 people, and no real skyscrapers, so there’s limited light pollution. Although the northern lights can appear over the city, it’s best to see them in total darkness.

Then he paused and consulted with another guide.

“It is too cloudy here,” he told his flock. “So we will keep driving.”

But as we kept driving, clouds turned to a dense fog, so thick that the moon all but disappeared.

Mr. Gunnarsson turned off the main highway about an hour after we left Reykjavík. He parked in a parking lot. Or maybe it was a side street? The darkness was so deep that I could only make out the moonlight on the ocean, and only then after my eyes adjusted.

We disembarked and stood dutifully beside him, staring up at the sky. Then, one woman pointed toward Reykjavík. Were those the lights? (No. That was light pollution.)

Christof Reinhard, 65, who owns a medical laser company and was visiting with his family from Paris, mused that our search was a little bit like a safari. Sure, the desert is amazing, but it’s much better with lions. Or, maybe, was this more like a whale watch?

“Instead of a boat,” he said, “you have a bus.”

Mr. Gunnarsson watched the group stomp their feet and bend into the wind. Fifteen minutes. Then, half an hour. The clouds hung thick above. “There’s nothing happening here, as you can see,” he finally said to relieved chuckles. “It’s one of those nights where you just have to give up.”

Tourists can get mad, Mr. Gunnarsson and other guides said. It’s rare, but it does happen.

“It’s the trip that has our worst reviews,” said Eric Larimer, the digital marketing manager for Gray Line Iceland , a day tour and airport transport company.

A wake-up call for the aurora

For some, the joy is in the search, even if there is no find. A few focus on astronomy, often opting to stay at Hotel Rangá , which is just off the main ring road (Route 1) near Iceland’s south coast.

The hotel looks unassuming — low-slung and wooden — but it’s one of the most famous in Iceland. (The Kardashians stayed there . So did the Real Housewives of Orange County .) A standard room costs more than $300, depending on the season.

But Rangá doesn’t just cater to celebrities. It also draws astronomy buffs, enticed by its “aurora wake-up call” service and its observatory, which has state-of-the-art telescopes.

“One thing is to sell them,” said Fridrik Pálsson, the hotel’s owner, speaking of the northern lights. “Another thing is to deliver them.”

About 20 years ago, before the northern lights industry took off, he delegated the night security guard to monitor the sky. The guard pokes his head out every few minutes to look for the telltale flicker. If he sees the lights, he alerts the guests.

The service aims to address one of the main issues with hunting for the northern lights: They are usually only visible on winter nights, when it is very cold, very windy and very late.

“To be a good northern lights observer, you need the constitution of an insomniac polar bear,” Dr. Mason said.

My room phone, alas, stayed silent. But I did dream about the lights — great Wonka colors swirling, strangely, behind the Chrysler Building.

Mr. Pálsson built the observatory, too. Even if the lights didn’t show up, he figured, the stars are still magnificent — and, for city dwellers, also rare. The hotel contracts astronomers to work the telescopes and explain the stars to guests.On my second night in Iceland, as twilight slipped below happy-hour skies, I crunched across the snow to the observatory with Saevar Helgi Bragason, an Icelandic science communicator who leads the astronomy program.

He bent into a toddler-size telescope, focusing it on the moon’s craters. They looked clearer than the hotel, just a short walk away. It was too early for the lights, he said. And that evening seemed too cloudy (on Earth) and too quiet (on the sun).

Mr. Bragason joked that the lights can get in his way — they create a mist over the stars he really wants to see. But tourists often come specifically to see them. And sometimes, he said, as they wait impatiently, they can miss the real wonder.

“You’re left with these beautiful skies above you,” he said. “Basically, literally, another universe opens up.”

Creating a lights season

Hotel Rangá was a pioneer in Iceland’s northern lights tourism industry: About two decades ago, people came to Iceland for the long summer days, and left as daylight slipped farther south.

“I found it rather stupid in the beginning,” admitted Mr. Pálsson, the owner of Rangá, speaking of northern lights tourism.

But spreading tourism throughout the year made sense. Partly, that was an environmental concern. The tourists would crowd the country’s extraordinary natural sites over just a few months. It was also economic. When the visitors left Iceland, tourism jobs would ebb with the sunlight.

So the northern lights, which are reliably visible from September to March, became the backbone of the country’s winter branding, said Sveinn Birkir Björnsson, the marketing and communications director at Business Iceland , which promotes the country.

“To be able to sell this product of cold and darkness, you have to have something to offer,” he said.

Now, even though June, July and August are the busiest months, tourism has evened out over the seasons. In 2023, there were about 1.1 million international visitors to Iceland during the aurora months, based on departures from Keflavík Airport, according to data from Iceland’s tourist board . From April to August, there were about 1.1 million, too.

About a decade earlier , when tourism overall to Iceland was lower, there were about 336,000 departures from the main airport in colder months, and about 446,000 in the spring and summer.

The winter travelers are drawn by the lights — and the hot springs, glaciers and icy waterfalls. It’s also cheaper than the summer season.

Some try to visit volcanoes , but the country recently warned tourists to avoid the lava flows — Iceland is living in an unusually active period of seismic activity . In January, lava flowed into a small town and last week a volcano erupted with just 40 minutes’ notice near the Blue Lagoon thermal springs, one of the country’s biggest attractions.

The final attempts

Near midnight on my last night, a Sunday, I drove to the Grótta Lighthouse , a popular spot on the outskirts of Reykjavík.

A few die-hard experts had warned me off — many tourists go there because it’s darker than most of Reykjavík, but then don’t think to turn off their headlights. It was also raining, greatly diminishing my chances of seeing the lights.

But I only had three hours before I had to leave to make my predawn flight. I felt a little desperate, a little dazed. I parked, and approached two people who were sitting in the rain on a wet wall, looking at the water in the darkness. I climbed over seaweed, and introduced myself. What would it mean to them, I asked, if the lights suddenly appeared?

“It’d be a little bit like the cherry on top,” said Catherine Norburn, 29, who was visiting from England.

She and her husband were set to fly out the next morning. They had not yet seen the lights.

“We don’t have high hopes,” said her husband, Reece Norburn, 29, “but it’s now or never.”

We didn’t see the lights. And I didn’t see them later, even after pulling off the highway halfway between Reykjavík and the airport at 3:30 a.m., half convinced by a shimmery cloud.

But I did spend more time looking up at the sky. And it’s a marvel.

In New York City, where I live, the night sky blooms orange-mauve. In Iceland, the nighttime darkness is just that — darkness. Clouds roll, breaking the deep blue. Stars actually shine. Northern lights or no northern lights, it was still cosmically beautiful.

Amelia Nierenberg writes the Asia Pacific Morning Briefing , a global newsletter. More about Amelia Nierenberg

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

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Ask Skift: What Are Summer Travel Trends for 2024?

Rashaad Jorden , Skift

April 12th, 2024 at 9:35 AM EDT

As a monster summer travel season is a rapidly approaching, here are some trends worth noting as the industry continues its recovery from the pandemic.

Rashaad Jorden

Travel brands are busy preparing for the upcoming summer season, and travel demand is xpected to surpass pre-pandemic levels . What are the major trends for this summer?

We put the question to our artificial intelligence chatbot  Ask Skift , which used information from our past news coverage and research, and we did additional reporting as well.

Ask Skift said:

Based on recent articles from Skift, several travel trends are emerging for summer 2024.

First, many travelers are keeping an open mind when it comes to their summer trips. In fact, 51% of visitors to a certain website and app are still undecided on a destination or departure date as of March 2024.

In terms of specific travel behaviors, there’s a growing trend of digital nomadism, where people are traveling while working, spurred on by the rise of remote work. This trend is not only popular among solo travelers but across different traveler segments as well. There’s also a noticeable increase in travelers seeking social connections during their travels. For instance, about 66% of Hostelworld’s guests travel solo to meet people to hang out with .

Personalized experiences are becoming more in-demand , with more travelers hiring private drivers and guides to design their unique tours, showing a growing demand for more independent travel experiences.

In terms of accommodation, hotels remain the top choice, but vacation rentals are also gaining in popularity . Direct bookings, especially for hotels and flights, maintain an upward trend. It’s also worth noting that international tourism is predicted to rise by 15% in 2024 , exceeding 2019 levels by 2%, suggesting a strong recovery for the travel industry.

Ask Skift Is the AI Chatbot for the Travel Industry

Go deeper into the business of travel with Skift’s new AI chatbot.

What else you need to know:

One trend to look out for this summer is the rise of “ coolcations ,” which are summer vacations in colder and more moderate destinations. Condé Nast Traveler listed coolcationing as one of 2024’s biggest travel trends , with a growing number of travelers looking to avoid scorching heat .

A survey by luxury travel network Virtuoso found 75% of travelers are seeking destinations with more moderate weather, according to its Vice of President of Sustainability Javier Arrendondo. In addition, 46% of Virtuoso advisors said climate change was causing their clients to travel differently.

As for where travelers might head to this summer, a survey by Skyscanner found 53% of those based in Europe, the Middle East and Africa said they’re choosing Europe as a summer holiday destination this year. That’s a 4% percent jump from 2023. Meanwhile, roughly 12% of EMEA travelers are looking to visit Southeast Asia this summer, a 1% increase from last year.

Skyscanner attributed that shift in part to a 4% decline in interest among EMEA travelers in visiting North America this summer, which the travel metasearch site said was likely caused by the strength of the U.S. dollar.

The strength of the U.S. dollar is also driving more Americans to plan travel to destinations where their money will go further. Tour operator Intrepid Travel said its North American bookings to Southeast Asia for this year are up 15% from 2023, according to the company’s President of the Americas Matt Berna.

As for travelers based in the Asia-Pacific region, more of them are looking to visit destinations closer to home this summer. Skyscanner found roughly 10% fewer APAC travelers are looking to book trips to Europe, while it saw 4% and 1% increases in those looking to visit North Asia and Southeast Asia this summer, respectively.

Finally, this summer is poised to see a further boom in the rise of ‘ destination dupes ,’ in which travelers opt to visit a less crowded or less expensive location with a vibe similar to that of a more popular destination.

“We’ve seen some more ‘alternate’ destinations starting to grow in popularity, like Balkans in Europe with lesser-known destinations like Albania becoming a popular alternate to Croatia,” said Berna, adding that bookings made to Italy and France for the first quarter of 2024 dropped 25% from the previous year.

“We anticipate more people this summer looking to avoid those bucket list trips this year to escape the crowds, as well as find better deals.”  

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Tags: ask skift , climate change , skyscanner , summer , summer travel

Photo credit: This summer will continue to see more scenes like this. Phil Shirley / Flickr

• Friday, April 12, 2024

© 2023 - Businessday NG. All Rights Reserved.

• Solar Eclipse 2024

The Eclipse Could Bring $1.5 Billion Into States on the Path of Totality

T he total solar eclipse passing through parts of the U.S. on April 8 stands to have a major economic impact on cities across the country as stargazers flock to the path of totality. 

Factors including the date of the eclipse and the number of states in the path of totality means that millions of people will have the opportunity to view the event— and that the cities hosting them could see a combined $1.5 billion injected into their states’ economies.

“That number will include lodging costs for visitors coming from out of state or far away parts of their own state, as well as gas costs and food costs,” says Bulent Temel, assistant professor of practice in economics at the University of Texas at San Antonio, San Antonio, who performed the calculations to arrive at the $1.5 billion figure.

One to four million people are expected to travel for the eclipse, according to Great American Eclipse , an informational site that tracks solar eclipses around the world. The Federal Aviation Administration (FAA) estimates the days leading up to the eclipse will be some of the busiest travel days of the season, with 50,670 flights on Thursday, April 4 and 48,904 flights on Friday, April 5. That means the spending will be spread out: “[The eclipse] is on a Monday, so you might have folks coming Friday, Saturday, Sunday, spending a few days somewhere ahead of the event,” says John Downen, Director of Impact Analysis at Camoin Associates.

Read More : How Cities Around the U.S. Are Celebrating the Eclipse

Many regions along the path of totality have spent months—if not years—preparing for the upcoming surge of visitors and money. Rochester, NY, is expecting 300,000 to 500,000 visitors across the nine - county Greater Rochester region. Local businesses have a slate of specials and planned events the weekend leading up to the event—including eclipse themed beers from local breweries and a three-day pass from the Rochester Museum and Science Center for visitors to attend a range of talks and performances. 

The area’s tourism board says that some hotels have reported demand skyrocketing an average of 1200% for the four-day span leading up to April 8— unusual demand for a Monday in the region’s off-peak season. 

It’s an economic boost that no amount of planning— or marketing—can replicate. “It’s a really great tourism opportunity,” says Shannon Ealy, Director of Communications and Marketing for the Greater Rochester Chamber of Commerce. “You can spend millions of dollars on media buys to get our regional brand out there, but you can't exactly buy the sun and the moon crossing over us.” 

Read More: See the 2024 Solar Eclipse’s Path of Totality

But unfortunate weather could still put a damper on things, especially for businesses that might be stocking up for an influx of visitors, since many eclipse chasers decide where to view the eclipse based on weather that can’t be predicted until the event draws closer. “Even a simple factor like a cloudy day could just compromise all these expectations quite a bit,” Temel says. 

The real task for local business and tourism boards lies in converting one-time visitors into ones that return—without the promise of a solar eclipse. “Every single one of those visitors is a potential future visitor to the same area as well,” says Temel. “In the long run, the economic impact would be magnified quite significantly. 

Adds Downen: “It definitely presents an opportunity, especially in smaller communities, to showcase themselves and hopefully capture some future repeat visitors.”  

Read More : Where to Find Solar Eclipse Glasses—And Spot Fake Ones

Lebanon, Indiana, for example, is expecting its population to triple during the weekend before the eclipse. Joe Lepage, the city’s communication and community development director, says he hopes that the eclipse will change the way both locals and out-of-towners talk about Lebanon. 

“We have a large business park, great hospitals, establishments where people can work, but actually staying and living in Lebanon has been difficult to sell.” he says. "It'll give people that are going back home a chance to visit and realize, ‘Hey, that little town is nice.’ But then our locals can see all the things they have in their backyard and realize, ‘Hey, my community is pretty special too.’”

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Hit by boycott, Maldives reaches out to India for tourism boost

Maldives' tourist association expressed its intention to collaborate closely with the indian high commission to bolster tourism initiatives..

• Updated Apr 11, 2024, 9:09 PM IST

As the number of Indian tourists to the Maldives continues to decline, the island country's tour and travel association has reached out to India to arrest the further slide. The Maldives Association of Travel Agents and Tour Operators (MATATO) met Munu Mahawar, the Indian High Commissioner to the Maldives on Monday "to explore collaborative efforts in tourism promotion". 

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The association expressed its intention to collaborate closely with the Indian High Commission to bolster tourism initiatives. "Plans are underway to launch a comprehensive roadshow across key cities in India and to facilitate influencer and media familiarisation trips to the Maldives in the forthcoming months," it said. 

The number of Indian tourists, who ranked among the top sources for tourism for Male in the last few years, plunged after January when now three suspended ministers made derogatory remarks against India and Prime Minister Narendra Modi after he pitched Lakshadweep as a tourist destination. The insulting comments against India and PM Modi did not go down well with a section of people and organisations, who started "BoycottMaldives" campaign on social media.

Within weeks, from being the top tourist group visiting the Maldives, Indians slipped to fifth position in the last three weeks of January. In the last three years, over 2 lakh Indians visited Maldives annually - the highest from any country post-Covid. Over 17 lakh tourists visited Maldives in 2023, of which the maximum were Indians (2,09,198) followed by Russians (2,09,146) and Chinese (1,87,118). The number of Indian visitors to Maldives was more than 2.4 lakh in 2022 and over 2.11 lakh in 2021. 

As per the latest data till April 8, tourists from India to Maldives slipped to the sixth position. So far, only 36,840 tourists visited the island nation, a sharp decline compared to similar months in previous years.

Maldives' tour association in a statement said that "India remains a vital market" for Maldivian tourism and it looks forward to partnering with prominent travel associations and industry stakeholders across India to further promote the island nation as a premier travel destination.

"The Association is confident with the support from the industry and the Government agencies, Maldives can regain the current decline in Indian tourists," it said.  

MATATO said India's burgeoning middle class is anticipated to spend a substantial $144 billion annually on international travel by the year 2030, drawing significant interest and investment from global players in the hospitality, airline, and tourism industries. 

According to Euromonitor, it said, the number of outbound Indian travelers is expected to double to 47 million by 2030, with their spending projected to increase from $35 billion in 2019 to an impressive $84 billion by 2030. 

"This growth trajectory positions India to ascend to the sixth-largest outbound travel market globally by 2030, trailing only China, the U.S., the U.K., Germany, and France."

The association said industry reports forecast robust expansion in Indian outbound travel, with a compounded annual growth rate of 11.2 per cent through 2032, closely mirroring Euromonitor's predictions. This surge in outbound tourism, it added, has led to a fervent pursuit of Indian tourists by top destinations such as Dubai and prominent airlines like Qatar Airways, leveraging the star power of Bollywood icons. 

In February this year, Dubai rolled out a five-year multiple-entry visa for Indians to "bolster travel between India and Dubai, to foster sustained economic collaborations and encourage tourism and business ties." 

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