Global Tourism Market size was worth around $11.39 trillion in 2023 and is predicted to grow to around $18.44 trillion by 2032 with a CAGR of 5.5%.

The market size of the global tourism sector grew significantly in 2023 over the previous year, totaling around *** trillion U.S. dollars. Despite the sharp annual increase, global tourism revenue remained below pre-pandemic levels. As forecast, the market size of the tourism sector worldwide was estimated at *** trillion U.S. dollars in 2024. What is the economic impact of travel and tourism? In 2023, the total contribution of travel and tourism to global GDP, including the direct, indirect, and induced impact of these markets, was estimated at nearly ** trillion U.S. dollars, almost recovering from the impact of the COVID-19 pandemic. Similarly, the number of travel and tourism jobs worldwide was just around *** percent below pre-pandemic levels in 2023, with these industries generating, directly and indirectly, *** million jobs. What are the most popular travel destinations worldwide? Both before and after the COVID-19 pandemic, France topped the ranking of the most visited countries by inbound tourists worldwide. In 2023, the number of inbound tourist arrivals in France peaked at *** million, the highest figure reported to date. That year, Spain, the United States, and Italy followed on the list. Meanwhile, the United States was the country with the highest international tourism receipts worldwide in 2023, ahead of Spain and the United Kingdom.

The Global Tourism industry experienced a tumultuous journey over the five years to 2025. The industry began to slowly recover in 2021 before surging in 2022 and 2023 as pent-up demand for travel drove robust industry performance. The industry has performed well despite recent inflation and economic uncertainty. However, the tariff war between the US and other countries has further increased uncertainty among businesses and leisure travelers, weighing on industry demand. Overall, industry revenue is anticipated to rise at a CAGR of 13.8% to reach $1.5 trillion in 2025, including an expected 1.7% rise in 2025 alone. This substantial growth is the product of a low pandemic year. In the same year, profit is expected to reach 9.7% of revenue. The industry is highly fragmented and comprises large conglomerates and small, local enterprises operating in an increasingly competitive setting. Conglomerates that provide the world market with transport, accommodation, entertainment, and travel arrangement services are at the forefront of the industry. Some of these large operators' annual revenue totals billions of dollars, which supports the industry. Global tourism revenue will increase at a CAGR of 2.0% to $1.6 trillion over the five years to 2030. Rising per capita income growth and consumer sentiment will boost global tourism. The desire for travel will likely remain strong, given the fact that airlines are trimming ancillary services to focus on budget-conscious customers. Travel booking, personalization, and sustainability innovations will likely attract new segments and enhance experiences. However, challenges like economic uncertainty and geopolitical instability may persist. Operators adapting to changing trends and addressing challenges will likely outperform others.

According to this forecast, the revenue will stay nearly the same over the forecast period. Notably, the revenue of the travel & tourism market was continuously increasing over the past years.Find further information concerning the number of users in the travel & tourism market in the world and the revenue in the travel & tourism market in Vietnam. The Statista Market Insights cover a broad range of additional markets.

The tourism market size was valued at USD 686.32 billion in 2024 and is likely to reach USD 1431.88 billion by the end of 2037, expanding at around 5.82% CAGR during the forecast period i.e., between 2025-2037. North America industry is projected to account for a remarkable revenue share between 2025 and 2037.

Global Industrial Tourism market size is expected to reach $10.62 billion by 2029 at 33.1%, experiential travel drives growth in industrial tourism market

The global sports tourism industry was valued at just under 565 billion U.S. dollars in 2023. With upcoming sporting events such as the FIFA World Cup in North America in 2026 and the Summer Olympics in Los Angeles in 2028, the global sports tourism market was projected to grow to beyond 1.3 trillion U.S. dollars by 2032.

In 2024, the share of travel and tourism's total contribution to global gross domestic product (GDP) showed a decline of *** percentage points compared to 2019. Overall, the travel and tourism market represented ** percent of the global GDP in 2024. That year, the total contribution of travel and tourism to the global GDP amounted to almost ** trillion U.S. dollars. What is the contribution of travel and tourism to employment? In 2024, the total number of travel and tourism jobs worldwide exceeded pre-pandemic levels, with global travel and tourism employment surpassing *** million. This figure, which refers to jobs generated directly and indirectly by the travel and tourism sector, was forecast to grow further in 2025. How many people travel every year? After sinking in 2020 to the lowest point recorded since 1989, the number of international tourist arrivals worldwide caught up with pre-pandemic levels in 2024, reaching almost *** billion. Both before and after the impact of the COVID-19 pandemic, Europe was the global region with the highest number of international tourist arrivals.

Global Travel and Tourism Spending Market size worth $204.96 Billion in 2023 and projected to $749.74 Billion by 2032, a CAGR of 15.5% By 2024-2032.

Market Size statistics on the Global Tourism industry in Global

Smart Tourism Market Outlook

The global smart tourism market size was valued at approximately USD 18 billion in 2023 and is projected to reach USD 62 billion by 2032, growing at a CAGR of 14.8% during the forecast period. This impressive growth is primarily driven by the increasing adoption of cutting-edge technologies such as IoT (Internet of Things), AI (Artificial Intelligence), and AR/VR (Augmented Reality/Virtual Reality) across the tourism industry. The demand for personalized and immersive travel experiences is propelling the market, as travelers are becoming more tech-savvy and expect seamless, integrated solutions that enhance their journey. The growing emphasis on sustainability and the efficient use of resources is also a key factor boosting the smart tourism market.

One of the significant growth factors for the smart tourism market is the increasing adoption of IoT technologies. IoT enables the creation of interconnected systems and devices, providing real-time data and analytics that enhance the travel experience. For instance, IoT applications in smart hotels allow for automated check-ins, personalized room settings, and efficient energy management systems, contributing to enhanced guest satisfaction and operational efficiency. Similarly, IoT-enabled smart transportation systems provide real-time updates on traffic conditions and public transport schedules, optimizing travel routes and reducing delays. The integration of IoT in tourism is not only enhancing the convenience and safety of travelers but is also contributing to cost savings and environmental sustainability.

The application of AI in smart tourism is another critical driver of market growth. AI technologies are being leveraged to offer personalized travel recommendations, automate customer service through chatbots, and optimize pricing strategies based on demand forecasts. AI-driven analytics tools help tourism operators understand consumer behavior, preferences, and patterns, enabling them to tailor their services and offerings more precisely. Additionally, AI is playing an essential role in predictive maintenance and operational efficiency, ensuring that tourism facilities and infrastructure are functioning optimally. The ability of AI to provide insights and automate tasks is revolutionizing the tourism industry, fostering growth, and improving the overall tourist experience.

Moreover, the utilization of AR/VR technologies is transforming the way travelers experience destinations before and during their trips. Virtual reality offers potential tourists the ability to explore destinations and attractions virtually, influencing their travel decisions. Augmented reality enhances the tourism experience by providing interactive guides and information overlays on smartphones or wearable devices, enriching the cultural and historical understanding of a location. These technologies are particularly appealing to younger generations and tech-savvy travelers seeking immersive and engaging experiences. The increasing availability and affordability of AR/VR equipment are further propelling their adoption in the tourism industry, contributing significantly to market growth.

Regionally, Asia Pacific is anticipated to dominate the smart tourism market, driven by the rapid technological advancements and the growing middle-class population in countries like China and India. The region's tourism sector is booming, with increasing investments in smart city initiatives and infrastructure development. North America and Europe are also significant markets due to the high adoption of advanced technologies and the presence of established tourism industries. In contrast, the markets in Latin America and the Middle East & Africa, while smaller, are expected to grow steadily as they increasingly integrate digital solutions into their tourism sectors.

Component Analysis

The component segment in the smart tourism market comprises hardware, software, and services, each playing a vital role in enhancing the overall tourism experience. Hardware components include devices and sensors used in IoT systems, AR/VR headsets, smart displays, and other technological equipment critical for implementing smart tourism solutions. As the market for smart tourism expands, the demand for sophisticated hardware capable of supporting advanced applications is rising. Companies are increasingly investing in developing innovative hardware solutions that offer improved performance, reliability, and integration capabilities. The hardware segment is crucial for the establishment of smart infrastructures, which serve as the foundation for various smart tourism applications.&l

According to Cognitive Market Research, the global Smart Tourism market size will be USD 29154.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 11661.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 8746.26 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 6705.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1457.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 583.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
The Mobile Applications is the fastest growing segment of the Smart Tourism industry

Market Dynamics of Smart Tourism Market

Key Drivers for Smart Tourism Market

Enhanced Tourist Experience to Boost Market Growth: Enhanced traveler stories are pushed via smart technologies that customize, streamline, and increase travel. With AI-pushed answers, travelers revel in tailored itineraries and tips based totally on their hobbies, growing a unique and attractive adventure. Chatbots and digital assistants provide seamless assistance, presenting instant solutions and resolving troubles, making the journey smoother and problem-loose. Meanwhile, immersive technology like augmented and virtual reality permits traffic to explore historical websites, cultural landmarks, or even marine environments from any region, enhancing their connection with the destination. These innovations transform tourism into a more interactive, handy, and remarkable enjoy for travelers internationally.

Efficient Resource Management to Drive Market Growth: Efficient, useful resource management in tourism leverages advanced technology to optimize operations and sustainability. Real-time monitoring via clever sensors tracks tourist footfall, visitor congestion, and resource use, imparting crucial information for informed choice-making and proactive planning. This enables authorities to manipulate overcrowding, reduce environmental effects, and beautify the tourist experience. Predictive analytics, in addition, empowers corporations with the aid of reading historic records to forecast developments, permitting the most advantageous staffing, inventory management, and useful resource allocation. This equipment not only improves operational performance but additionally assists a balanced technique to tourism, ensuring each traveler's delight and the maintenance of neighborhood environments and communities.

Key Restraint Factor for the Smart Tourism Market

High Initial Investment, will Limit Market Growth: Adopting smart tourism solutions comes with high initial investment demanding situations because of the want for widespread upfront prices in hardware, software programs, and infrastructure. Setting up a community of sensors, enforcing AI-driven tools, and establishing reliable connectivity for seamless statistics transmission requires vast capital. Additionally, protection and improvements upload to lengthy-term prices, that could strain budgets, especially for smaller tourism businesses and destinations. However, while the initial investment is massive, the capacity for enhanced traveler experiences, streamlined operations, and long-term monetary advantages make that technology worthwhile attention for tourism stakeholders aiming for sustainable growth and competitive gain.

Key Trends Factor for the Smart Tourism Market

Combining AI and Big Data to Create Highly Tailored Experiences: Big data analytics and artificial intelligence are being used more and more in the tourism sector to provide individualized services. Travel platforms are providing dynamic, interest-based suggestions for lodging, activities, and restaurants based on search trends, social media inputs, and behavioral data. Travelers' expectations are rising as a result of this hyper-personalization tren...

Number of Businesses statistics on the Global Tourism industry in Global

According to Cognitive Market Research, the global Travel and Tourism Spending market size is USD 14845295.6 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 5938118.24 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 4453588.68 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 3414417.99 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 742264.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 296905.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Couple Traveler held the highest Travel and Tourism Spending market revenue share in 2024.

Market Dynamics of Travel and Tourism Spending Market

Key Drivers of Travel and Tourism Spending Market

Growing Disposable Income and Middle-Class Expansion to Increase the Demand Globally

The Travel and Tourism Spending Market is being significantly driven by the rise in disposable income and the expanding middle class in emerging economies. As more people enter the middle-income bracket, there is a noticeable shift in spending patterns towards leisure activities, including travel and tourism. This trend is particularly evident in countries like China, India, Brazil, and several Southeast Asian nations, where rapid economic growth has lifted millions out of poverty and into the middle class. The increasing affordability of travel, coupled with aspirations for new experiences and exposure to different cultures, is fueling the demand for tourism services and experiences.Another key driver for the Travel and Tourism Spending Market is the rapid advancement of technology and digitalization. The travel industry has undergone a profound transformation with the advent of the internet, smartphones, and various digital platforms. These technologies have made travel planning more accessible, convenient, and personalized, influencing consumer behavior and preferences. Online booking platforms, travel apps, and social media have revolutionized how people research, book, and share their travel experiences. Additionally, technologies such as virtual reality (VR) and augmented reality (AR) are enhancing the travel experience by offering immersive previews of destinations and attractions, further driving the demand for travel and tourism services.

Restraint Factors Of Travel and Tourism Spending Market

Economic Uncertainty and Exchange Rate Volatility to Limit the Sales

One of the key restraints affecting the Travel and Tourism Spending Market is economic uncertainty and exchange rate volatility. Fluctuations in exchange rates can affect the cost of travel, particularly for international tourists. A strong currency in the destination country can make travel more expensive for foreign visitors, leading to a decline in tourism spending. Similarly, economic downturns or recessions can result in reduced disposable income and consumer confidence, leading individuals to cut back on discretionary spending, including travel and tourism. Economic instability in key source markets can also impact outbound travel, affecting the overall tourism industry.

Trend Factor for the Travel and Tourism Spending Market

There is a shift in demand toward experiential, sustainable, and digital-first travel. 

Fueled by an increasing demand for tailored and meaningful travel experiences, the market for travel and tourism expenditures is going through a rapid shift. Instead of typical sightseeing itineraries, contemporary tourists are more and more opting for immersive experiences like culinary tourism, adventure travel, cultural discovery, and well-being retreats. With more customers choosing eco-friendly lodging, carbon-neutral travel options, and ethical tourism practices, sustainability has also become a major consideration in decision-making. Digital payment methods, mobil...

The global tourism big data analytics market (2025 USD 18.4 billion) is projected to double in size to USD 41.9 billion by 2035, growing at a CAGR of 8.6%. Tourism stakeholders are moving away from post-trip surveys or guesswork. Instead, they are leveraging real-time analytics to gain insights into travelerbehavior, streamline operations and create hyper-personalized experiences.

Country-wise Visitor Data Integration Projects

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Travel Market Size 2024-2028

The travel market size is forecast to increase by USD 2860.2 billion, at a CAGR of 11.1% between 2023 and 2028.

The market is experiencing significant growth, fueled by the increasing popularity of experiential travel and the surge in international tourist footfall. This trend is driven by consumers' shifting preferences towards unique and immersive travel experiences, offering opportunities for companies to differentiate their offerings and cater to this demand. However, the market faces challenges, including the growing threat from terrorism, which can deter travelers and negatively impact the industry. Companies must navigate these challenges by implementing robust security measures and fostering transparency to reassure customers. To capitalize on market opportunities, businesses should focus on delivering personalized, authentic experiences that cater to the evolving needs of travelers. By staying attuned to these trends and addressing the challenges, companies can effectively position themselves in the competitive the market landscape.

What will be the Size of the Travel Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free SampleIn the ever-evolving the market, various sectors continue to adapt and innovate to meet the changing needs and preferences of consumers. Business travelers seek convenience and efficiency with portable chargers, travel adaptors, and carry-on luggage, while solo travelers prioritize safety with GPS trackers and TSA locks. Sustainable tourism gains traction as eco-friendly options such as biodegradable products, carbon offsetting, and sustainable packaging become more prevalent. Medical tourism and food tourism cater to specific niches, offering unique experiences and specialized services. Travel data analytics and online booking platforms streamline the planning process, while tour guides and local experts provide valuable insights into destinations. Travel writing and journals allow travelers to document their experiences and share them with others. Luxury travel and adventure travel cater to diverse markets, with wheeled luggage, travel pillows, and hiking boots providing comfort and functionality. The marketing and social media platforms connect travelers with new experiences and destinations. Travel influencers and customer loyalty programs offer incentives and personalized recommendations. Tourism management and responsible travel initiatives prioritize the well-being of communities and the environment. Cultural tourism and destination marketing foster appreciation and understanding of diverse cultures. Rental cars and community tourism provide opportunities for authentic experiences and exploration. The market remains dynamic, with ongoing developments and trends shaping the industry. From travel accessories to travel technology, the market continues to evolve, offering new possibilities and experiences for travelers.

How is this Travel Industry segmented?

The travel industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. SectorTransportationHotelTravel activitiesTypeLeisureBusinessTourCustomized & Private VacationsSafari & AdventureCruises, Yachting & Small Ship ExpeditionsCelebration JourneysCulinary Travel & ShoppingLuxury TrainsCustomized & Private VacationsSafari & AdventureCruises, Yachting & Small Ship ExpeditionsCelebration JourneysCulinary Travel & ShoppingLuxury TrainsAge21-30 Years31-40 Years41-60 Years60 And Above21-30 Years31-40 Years41-60 Years60 And AboveGeographyNorth AmericaUSEuropeFranceUKAPACChinaJapanRest of World (ROW)

By Sector Insights

The transportation segment is estimated to witness significant growth during the forecast period.In the thriving business travel sector, various offerings cater to the diverse needs of modern tourists. First-aid kits and biodegradable products have become essential travel accessories, reflecting a growing emphasis on health and sustainability. Travel insurance policies ensure peace of mind for business travelers, while ear plugs, eye masks, and portable chargers enhance comfort during long flights. Passport holders and sustainable packaging promote organization and eco-consciousness. Carbon offsetting and packing cubes streamline the process of planning and packing for trips. Food tourism and insect repellent cater to the adventurous palate and the need for outdoor exploration. Group travel and duffel bags offer cost savings, while hiking boots and travel data analytics facilitate efficient and enjoyable exploration. Medical tourism and travel safety services ensure well-being during international journeys. Trav

According to Cognitive Market Research, the global Outbound Tourism market size will be USD 17518.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 12.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 7007.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 5255.46 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4029.19 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 875.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 350.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.2% from 2024 to 2031.
The Business is the fastest growing segment of the Outbound Tourism industry

Market Dynamics of Outbound Tourism Market

Key Drivers for Outbound Tourism Market

Increasing Economic Growth to Boost Market Growth

As nations experience monetary increases, growing disposable earnings offer individuals and families extra financial flexibility. This increase in wealth permits more people to interact in international travel, as they are able to come up with the money for flights, accommodations, and activities overseas. Enhanced financial conditions regularly lead to advanced infrastructure, better connectivity, and a much wider variety of journey alternatives, in addition to encouraging tourism. Additionally, as extra residents tour internationally, cultural trade will increase, fostering worldwide expertise and cooperation. Ultimately, the economic boom no longer best boosts journey opportunities; however additionally enriches tour enjoyment, making it more handy to a broader segment of the population.

Technological Advancements to Drive Market Growth

Technological advancements, mainly the upward push of the internet, have transformed travel-making plans right into a more accessible and fee-effective process. Online systems allow travelers to effortlessly compare flight costs, discover various lodging options, and find out about sports at their locations, all from the comfort of their homes. Booking engines and tour apps provide immediate get entry to deals and actual-time availability, empowering users to make informed choices. Additionally, social media and overview websites permit tourists to proportion stories and pointers, in addition to improving the decision-making technique. Overall, the internet has democratized travel planning, making it simpler for anybody to explore the sector.

Restraint Factor for the Outbound Tourism Market

Economic Downturns, will Limit Market Growth

During economic downturns, outbound tourism regularly studies a sizable decline as individuals and families reduce discretionary spending to control tighter budgets. With rising unemployment quotes and uncertainty about their destiny, travel will become a luxury many pick to forgo. People might also opt for home holidays or staycations in place of worldwide trips main to a lower call for flights, resorts, and travel offerings. Additionally, agencies may scale back on corporate travel, further impacting the tourism industry. This discount in outbound tourism could have a cascading impact on economies reliant on travel, leading to job losses and reduced revenues in the zone.

Impact of Covid-19 on the Outbound Tourism Market

The COVID-19 pandemic significantly impacted the outbound tourism marketplace, leading to unparalleled declines in global journeys. Lockdowns, tour regulations, and fitness issues led to flight cancellations and resort closures, inflicting a sharp drop in calls. Many tourists postponed or canceled trips, even as others shifted to nearby or domestic tourism. The industry faced tremendous revenue losses, mainly due to layoffs and financial challenges for airways, lodges, and excursion operators. Recovery has been sluggish, with ongoing uncertainty affecting consumer confidence in travel. Introduction of the Outbound Tourism Market

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Gain insights into the Global Tourism Market size at USD 11.39 trillion in 2023, featuring Market Forecasts & Outlook, industry trends, and investment opportunities.

Global Domestic Tourism Market size & share estimated to surpass USD 7,970.78 billion by 2032, to grow at a CAGR of 16.9% during the forecast period.

Global Big Data Analytics in Tourism is segmented by Application (Technology industry, Tourism industry, Hospitality industry, Data science, Big data), Type (Technology, Data analytics, Tourism, Hospitality, Travel) and Geography(North America, LATAM, West Europe, Central & Eastern Europe, Northern Europe, Southern Europe, East Asia, Southeast Asia, South Asia, Central Asia, Oceania, MEA)