|Market Size in 2022
|Market Forecast in 2030
|CAGR (in %)
|USD 2,003.68 Billion
|USD 2,677.77 Billion
Tourism Source Market
The global tourism source market size was worth around USD 2,003.68 Billion in 2022 and is predicted to grow to around USD 2,677.77 Billion by 2030 with a compound annual growth rate (CAGR) of approximately 3.86% between 2023 and 2030. The report analyzes the global Tourism Source market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the tourism source industry.
Tourism is a leisure-based economic activity that connects countries and places around the world. There are two markets in tourism, the first is the tourist source market from which tourists visit the destination, and the second market is called the tourist host market, which generates tourist flows. Travel restrictions aimed at stopping the spread of the virus across international borders have suppressed international tourism. The tourism source market has great potential because people from the source location visit other places for leisure and entertainment. Potential and actual tourist attractions are the primary tourism resources of any given area. This is tourism based on the natural attractions of the area. Examples include bird watching, photography, stargazing, camping, hiking, hunting, fishing, and visiting parks. These seasoned travelers are drawn to a variety of natural and cultural resources, which is likely to help this market grow exponentially during the forecast period.
Rising number of tourism activities to stimulate market growth
The growing interest of residents to visit other destinations at home and abroad, as well as the growing tradition of participating in recreational activities, is likely to increase the demand for tourism activities. In addition, outbound tourism, westernization, urbanization, and income growth in developing countries are helping the market grow. In addition, increased promotional activities in the host market as well as participation in social media and online channels have also contributed to the rapid growth of the market. In addition, economic stabilization in developing countries and improving infrastructure with increasing population are also some of the major aspects driving the growth of the global tourism sources market. Thus, these factors along with growing developments and technological advances will help to boom the overall market during the forecast period.
Lack of market penetration in underdeveloped countries is hindering the market growth
In underdeveloped countries with low-income populations, the tourism source market is unable to hold a strong foothold. This is mainly due to low internet connectivity, lack of infrastructure development, and the presence of rural areas. In addition, lack of tourism planning, insufficient government support, poor transport systems, along with lack of knowledge are some of the inhibiting factors for the tourism industry. This in turn restricts the growth of the global tourism source market.
Increasing government initiatives in the tourism sector
Tourism is one of the major parts of several national economies which is why major investments are expected to happen in developed and developing countries over the forecast period. For instance, the United States invested the most money in the travel and tourism business of any country, with a total of USD 210 billion in 2019. China came in second place, with a total capital investment of USD 170 billion. In 2019, these two nations had the biggest direct contribution to GDP. Furthermore, initiatives such as UDAN, eVISA, PRASAD, and the reduction of GST measures taken by the government of India are supporting the sector's growth.
Furthermore, initiatives like Dekho Apna Desh, Swadesh Darshan Scheme, and Vibrant Villages program have been launched to promote the tourism sector. This program aims to promote thematic tourism to promote, develop and exploit India's tourism potential. As of March 2022, the Ministry of Tourism has sanctioned Rs 5,500 crore under this scheme and has approved more than 76 projects in 31 states/UTs. Thus, increasing government initiatives in the tourism source market. Moreover, Europe is also investing more to maintain its position as a top tourist destination. The European Commission is participating in projects to increase worker skills and mobility, notably through participation in global digital networks and assistance to tourist entrepreneurs. All such initiatives by several nations will support the global tourism source industry growth.
The lack of tourism infrastructure is a major challenge to market growth.
Lack of proper tourism infrastructure is still a significant problem for the tourist industry in low-income countries. This includes hotels, connections to neighboring cities, health care, and transportation, among other things. The main cause of this lack of concern is a misallocation of funds in the budget. Along with this, concerns regarding safety & security and inaccessibility are also equally responsible for the slow growth of the tourism source industry.
The global tourism source market is segmented into tourist size, booking channel, and region.
According to the tourist size, this market is divided into groups, solo, and others. Of these, the group segment held the largest market share in 2022. Group travel is a group of people who want to travel with other people who have the same interests. Group travel refers to organized multi-day trips that individuals have pre-booked where they meet other groups of travelers who have booked the same trip. These groups can range from a few people to full buses of 50 or more passengers. Group Tour is one of the most popular plans among travel companies and budget travelers as it is a very cheap and relatively reliable service to get you to your desired travel destinations.
According to booking channel, the market is divided into mobile applications, websites, travel agencies, and others. Among these, the website segment holds the largest market share, while the mobile application segment is expected to witness rapid growth during the forecast period. Booking channels are the ways in which tourism products and services are made available to consumers. Tourism products are usually sold directly by the main seller or through several intermediaries. In the case of brokers or wholesalers, this is called indirect selling. Online Booking System is a software solution and booking system that allows guests to easily book and pay for their tours and activities online. Some of these systems also include tour operator reporting software and other easy-to-use tools to help you increase efficiency and bookings.
|Tourism Source Market Research Report
|Market Size in 2022
|USD 2,003.68 Billion
|Market Forecast in 2030
|USD 2,677.77 Billion
|CAGR of 3.86%
|Number of Pages
|Key Companies Covered
|Ryanir, Renfe, Expedia, Air Malta, Vueling, Airbnb, Booking.com, Iberia Express, Alitalia, and Goibibo.com
|By Tourist Sizes, By Booking channel, And By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)
|2017 to 2021
|2023 - 2030
|Avail customized purchase options to meet your exact research needs. Request For Customization
North America is expected to dominate the market during the forecast period
North America leads the global tourism source market with over 38 percent share. The United States has a large share of the regional market. The US domestic tourism sector is an important contributor to the regional economy, with US domestic travel spending reaching nearly USD 975 billion in 2019. In addition, the amount of tourism activity in the United States is expected to double in the near future. In addition, it is hoped that the market in Europe will also grow far above estimates. Of all major countries, Spain is one of the leading European countries in terms of domestic and international tourism spending, with a domestic tourism market more than eight times the size of the international tourism sector.
The Asia Pacific is expected to grow at the fastest rate during the forecast period. The growth in the region is owing to the presence of the fastest-growing economies including China and India. Moreover, the escalating middle-class population income and growing urbanization are significant factors that rises the demand for the tourism source market. For instance, as per United Nations Human Settlements Programmed, Asia's urban population is projected to increase by approximately 50% by 2050, which is an additional 1.2 billion people.
Key players operating in the global tourism source market are expanding their market reach by offering attractive discounts and services. Some of these players include:
By Tourist Sizes
By Booking channel
Tourism is a leisure-based economic activity that connects countries and places around the world. There are two markets in tourism, the first is the tourist source market from which tourists visit the destination, and the second market is called the tourist host market, which generates tourist flows.
The growing interest of residents to visit other destinations at home and abroad, as well as the growing tradition of participating in recreational activities, is likely to increase the demand for tourism activities. In fact, it serves to increase the demand in the tourism source market and thus leads to market expansion.
According to the report, the global market size was worth around USD 2,003.68 billion in 2022 and is predicted to grow to around USD 2,677.77 billion by 2030.
The global Tourism Source market is expected to grow at a CAGR of 3.86% during the forecast period.
The global Tourism Source market growth is expected to be driven by North America. It is currently the world’s highest revenue-generating market owing to the increasing demand for aims to promote thematic tourism.
Key players operating in the global tourism source market are expanding their market reach by offering attractive discounts and services. Some of these players include Ryanir, Renfe, Expedia, Air Malta, Vueling, Airbnb, Booking.com, Iberia Express, Alitalia, and Goibibo.com