Tourism Market Size, Share, Trends, Growth 2032

Tourism Industry Prospective:

The global Tourism market size was worth around USD 11.39 trillion in 2023 and is predicted to grow to around USD 18.44 trillion by 2032 with a compound annual growth rate (CAGR) of roughly 5.5% between 2024 and 2032.  

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Tourism Market: Overview

Tourism is a social, cultural and economic phenomenon which comprises the migration of individuals to nations or locations beyond their typical surroundings for personal or business/professional goals. These individuals are known as visitors (they might be tourists, excursionists, residents, or non-residents), and tourism refers to their activities, some of which entail tourism spending. The tourism industry is being driven by several factors including growing government initiatives, increasing spending on transportation infrastructures, digital transformation, growing middle-class travelers and others.

Key Insights

• As per the analysis shared by our research analyst, the global Tourism market is estimated to grow annually at a CAGR of around 5.5% over the forecast period (2024-2032).
• In terms of revenue, the global Tourism market size was valued at around USD 11.39 trillion in 2023 and is projected to reach USD 18.44 trillion, by 2032.
• The increasing digital transformation is expected to drive market growth during the forecast period.
• Based on the travel purpose, the medical tourism segment is expected to dominate the market during the forecast period.
• Based on the tourism type, the international tourism segment is expected to grow at a significant rate during the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market over the projected period.

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Tourism Market: Growth Drivers

The growing foreign tourist footfall drives market growth

Global inbound tourism has grown rapidly in recent years, pushing up visitor numbers and creating demand for travel-related activities. One of the main reasons for the rise in tourist arrivals is the growing number of travelers to both domestic and foreign markets, as well as trips for leisure and sports. Moreover, the demand for travel-related activities, especially those provided by online travel service platforms, rises in tandem with the number of international passengers.

The tourism industry is seeing increased demand in addition to business travel due to increased government initiatives to promote tourism. The increase in the number of international tourist arrivals supports the increase in demand for travel activities, which is likely to drive the global tourism market growth throughout the forecast period.

Tourism Market: Restraints

The threat of terrorism impeding market growth

Terrorist activity has increased worldwide, mostly after 2016. The primary goal of terrorism is to instill fear in individuals so that they will behave differently. These terrorist assaults have a direct impact on the tourism and hotel industries. Travel becomes difficult, though, as terrorism contributes to an increase in problems with border clearance, including long waits and more stringent inspections.

Costs are also rising as a result of the growing need for greater safety around gas and oil pipelines as well as electrical transmission lines. Thus, throughout the projected period, the rise in terrorist activities is probably going to hinder the expansion of the worldwide tourism industry.

Tourism Market: Opportunities

Increasing adventure tourism offers a lucrative opportunity for market growth

The trend of emphasizing experiences above material belongings is having a big influence on the travel and tourism industry. When it comes to adventure tourism, this manifests as a growing desire among travelers to seek out possibilities for life-changing experiences that go beyond basic leisure or sightseeing. By pushing participants' physical and emotional boundaries, adventure sports—such as scuba diving in exotic underwater environments or hiking through vast forests—offer these potentially transformative experiences. The demand for meaningful experiences is not merely a passing trend; several consumer surveys and market research studies attest to this.

Desired experiences often advance one's growth, offer novel perspectives, and cultivate close interpersonal bonds. As a result of this shift, travel agencies, tour operators, and destination marketers are expanding the array of adventure tourism offerings they provide to meet the growing demand. The market for adventure travel is not an exception to the general trend that social media platforms are becoming powerful tools for influencing consumer behavior. Furthermore, social media platforms are flooded with travel-related content that showcases both well-known and obscure experiences.

Due to their inherent visual nature and shareability, adventure tourism-related activities frequently go viral and provide a virtual "word-of-mouth" impact. Furthermore, social media provides a platform for potential explorers to share reviews and recommendations, enhancing their credibility and self-assurance. Furthermore, the sense of community that these platforms foster may inspire users to take part in activities that they may not have considered before.

Tourism Market: Challenges

Digital disruption poses a major challenge to market expansion

Technology has transformed the travel and tourism sector, but it has also brought up new difficulties, including an over-dependence on online booking sites, the eviction of conventional travel agents, worries about data protection, and the proliferation of false information and fake reviews. Thus, this is expected to pose a major challenge to the market growth.

Tourism Market: Segmentation

The global Tourism industry is segmented based on travel purpose, travel type, tourism type, mode of booking, age group and region.

Based on travel purposes, the global Tourism market is bifurcated into Medical Tourism, Leisure Tourism, Business Tourism, Cultural & Heritage Tourism and Others. The medical tourism segment is expected to dominate the market during the forecast period. The segment growth is attributed to the growing prevalence of chronic diseases such as cancer, CVD, diabetes and others. The Medical Tourism Association estimates that every year, over 14 million individuals worldwide travel abroad to receive medical care. The activity has a value of between fifty and seventy million dollars. Thailand is now the most popular destination for medical tourism, with one million and two hundred thousand travelers. Mexico comes in second, with one million visitors a year seeking medical attention. They are Americans and Canadians for the most part. Mexico exceeds the United States, which comes in third with 800,000 people. Similarly, according to figures from Patients Without Borders, after these three countries, another million and thirty-seven thousand visitors are split between Singapore, India, Brazil, Turkey, and Taiwan.

Based on the travel type, the global Tourism industry is bifurcated into Group and Solo.

Based on the tourism type, the global Tourism market is bifurcated into International Tourism and Domestic Tourism. The international tourism segment is expected to grow at the highest CAGR during the forecast period. Travel-related efforts and agreements may improve bilateral relations, advance peace, and encourage collaboration in fields including commerce, investment, and cultural exchange. As a result, tourism plays a part in international relations. Thus, driving the segment growth.

Based on the mode of booking, the global Tourism industry is divided into Direct Booking and OTA Platforms.

Based on the age group, the global Tourism industry is divided into Below 30 years, 30 to 41 Years, 42 to 49 Years and 50 Years & Above.

Tourism Market: Report Scope

Regional Analysis

The Asia Pacific is expected to dominate the market over the projected period

The Asia Pacific is expected to dominate the market over the projected period. The two most powerful countries in the area are China and India. Travel and tourist businesses from around the world are concentrating on the growing BRICS countries. The travel and tourism industry is growing in China. Travelers should profit monetarily from both incoming and outbound travel to the developing Asia-Pacific region. Travelers most frequently choose to visit Thailand, Japan, Singapore, Vietnam, Indonesia, Malaysia, the Philippines, and South Korea.

Following the pandemic's height, ecotourism has continued to grow, with an emphasis on adventure travel, health and wellness tours, and conservation. According to the official figure given by the Government of India, India saw 677.63 million domestic tourist visits in 2021 compared to 610.22 million in 2020, an increase of 11.05 percent. As a result of global pandemic restrictions, fewer international tourists arrived. Consequently, the number of foreign tourists visiting India in 2021 was 1.05 million, compared to 7.17 million in 2020, indicating a negative growth rate of 85.29 percent.

Tourism Market: Competitive Analysis

The global Tourism market is dominated by players like:

• Airbnb Inc.
• Expedia Group Inc.
• com Group Limited
• Hilton Worldwide Holdings Inc.
• InterContinental Hotels Group PLC
• Marriott International Inc.
• Accor S.A.
• Booking Holdings Inc.
• com International Ltd.
• American Express Global Business Travel (GBT)
• Delta Air Lines Inc.
• TUI Group
• Wyndham Hotels & Resorts Inc.
• Hyatt Hotels Corporation
• The Priceline Group Inc.

The Global Tourism market is segmented as follows:

By Travel Purpose

• Medical Tourism
• Leisure Tourism
• Business Tourism
• Cultural & Heritage Tourism
• Others

By Travel Type

• Group
• Solo

By Tourism Type

• International Tourism
• Domestic Tourism

By Mode of Booking

• Direct Booking
• OTA Platform

By Age Group

• Below 30 years
• 30 to 41 Years
• 42 to 49 Years
• 50 Years & Above

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa