In 2020, the gross domestic product (GDP) of Central and South America had suffered a contraction of more than 110 billion U.S. dollars due to the impact of the COVID-19 pandemic on tourism. Meanwhile, the global travel restrictions imposed due to the health crisis caused a GDP decline of roughly 33 billion U.S. dollars in the Caribbean. In consequence, tourism employment was also severely affected in those regions that year.

Tourism contribution to GDP in Latin America and the Caribbean

The gross domestic product (GDP) measures the value of all goods and services produced in a country or a region within a certain period. Excluding Mexico, the total contribution of the tourism sector to Latin America and the Caribbean’s GDP saw a moderate but overall positive trend during the past decade, surpassing 350 billion U.S. dollars in 2019. In Mexico alone, nearly two trillion Mexican pesos (more than 100 billion U.S. dollars at exchange rates of December 31, 2019) were added that year to the country’s GDP by tourism-related activities.

COVID-19 impact on travel and tourism in Mexico

Mexico is not only the leading country for tourism in Latin America but also one of the key players in the travel sector worldwide. For most of 2020, the Mexican government opted out of travel restrictions and lockdowns. This measure, however, did not rescue the country's tourism sector from the harsh impact of COVID-19. As of October of that year, Mexico was among the travel destinations most affected by the pandemic, with tourism revenue losses amounting to nearly 14 billion U.S. dollars.

At the beginning of 2020, the tourism industry across the Asia Pacific region experienced the consequences of the unexpected outbreak of the novel coronavirus (COVID-19). Indonesia displayed a decrease of 13.5 percent in terms of its tourist arrivals. The likes of China, Vietnam, and Thailand all demonstrated dramatic tourist arrival decreases.

Travel cancellations

The outbreak of COVID-19, a respiratory lung infection, originating in Wuhan, China, began to spread just before the Chinese New Year of 2020. Consequently, travel restrictions and increased infection cases hindered plans over the festive period. This in turn resulted in both domestic and international travel cancellations and subsequent losses to the tourism industry. As anxiety over the COVID-19 outbreak grew in 2020, citizens of the Asia Pacific region even stated that flights from China should be banned. Importance of Chinese tourism in Asia Pacific

China is renowned for its economic dominance within the Asia Pacific region. Its thriving economy has allowed for an increased level of affluence among its citizens. Wage increases have allowed Chinese people to travel more frequently, with many opting to travel within the Asia Pacific region. Through increased domestic tourism, many countries across Asia Pacific have come to rely on Chinese tourism to support their respective tourism industries. Interestingly, Chinese tourism alone made great contributions to many of the Asia Pacific GDPs in 2018. As the tourism industry represents a significant part of the GDPs in Hong Kong, Singapore, and Thailand, it is believed that these economies have suffered greatly due to the COVID-19 outbreak. Although there have been outbreaks of infection previously, which have disrupted the tourism industry in Asia Pacific, none have been quite as severe as the COVID-19 outbreak. This is likely due to the fact that previously Asia Pacific tourism industries were not as reliant on Chinese tourism as they have been in recent years.

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.

Technological Advancements and Digitalization to Propel Market Growth

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.

Impact of Covid-19 on the Travel and Tourism Spending Market

The Covid-19 pandemic has had a profound impact on the Travel and Tourism Spending Market, causing unprecedented disruptions worldwide. Travel restrictions, border closures, and lockdown measures implemented to curb the spread of the virus have led to a significant decline in tourism activity. The closure of hotels, restaurants, and attractions has resulted in massive revenue losses for the tourism industry. Travelers have canceled or postponed trips, leading to a sharp decline in tourist arrivals and spending. The aviation industry has been particularly hard hit, with airlines facing...

Due to the impact of the coronavirus (COVID-19) pandemic, it was estimated that the global travel and tourism market had lost roughly 63 million jobs in 2020. While this scenario improved significantly in 2022, the sector still reported around 39 million fewer jobs worldwide compared to 2019. Overall, the Asia-Pacific region recorded the most significant employment loss due to the COVID-19 pandemic, with approximately 28 million fewer travel and tourism jobs in 2022 compared to 2019.

According to Decipher Market Research, The Global Tourism Guidance Service market is growing at a compound annual growth rate (CAGR) of 8.1% from 2023 to 2030. Advancements in Technology and Digital Solutions to Drive Market Growth

The rapid evolution of technology is a major driving factor behind the global tourism guidance service market. Integrating digital solutions such as mobile apps, augmented reality(AR), virtual reality (VR), and GPS-based navigation has transformed how travelers access and engage with guided tours. These technologies enhance the tour experience by offering real-time information, interactive elements, and immersive storytelling. Travelers can use their smartphones or wearable devices to access guided tours that combine audio commentary, visual enhancements, and multimedia content, providing a multi-sensory journey. Moreover, the rise of online platforms and booking services allows tourists to conveniently discover, compare, and select guided tour options tailored to their preferences. The convenience, interactivity, and accessibility offered by technological advancements have expanded the reach of guided tours, attracted a wider audience, and contributed to the market's growth.

For instance, Expedia Group established a Verbo holiday rental website and smartphone application in Mexico in November 2019. This website and application assist Mexicans in quickly finding and selecting rental homes worldwide.

(Source:www.vrbo.com/media-center/press-releases/2019/vrbo-debuts-vacation-rental-website-and-app-in-mexico)

Market Dynamics of Tourism Guidance Service

Seasonal Fluctuations and Dependency to Hinder Market Share

One significant restraint in the tourism guidance service market is the inherent dependency on seasonal trends and fluctuations. Many tourist destinations experience peak and off-peak seasons based on weather, holidays, and special events. During peak seasons, there is high demand for guided tours, but off-peak periods can see a sharp decline in tourist numbers, leading to reduced bookings and revenue for tourism guidance service providers. This cyclicality can make it challenging for businesses to maintain consistent cash flow, plan staffing levels, and allocate resources effectively. Dependence on specific seasons also limits the diversification of offerings and can hinder the ability to sustain year-round operations.

Impact of COVID-19 on the Tourism Guidance Service Market

The COVID-19 pandemic profoundly impacted the tourism guidance service market, leading to widespread disruptions as travel restrictions, lockdowns, and health concerns significantly reduced travel and tourism activities. The market saw a sharp decline in tourist arrivals, resulting in canceled or postponed guided tours and a downturn in bookings. Social distancing measures and safety protocols necessitated adjustments in tour group sizes, transportation arrangements, and itinerary planning. Many tour operators faced financial challenges due to revenue loss. At the same time, digital transformation accelerated as virtual and self-guided tour options gained traction to cater to the changing preferences of cautious travelers. The pandemic prompted the industry to focus on health and safety standards, innovate with virtual experiences, and adapt operational strategies to ensure a resilient recovery in the post-pandemic landscape Introduction of Tourism Guidance Service

The tourism guidance service market is a vibrant and essential global travel and tourism industry sector. The market facilitates deeper cultural immersion, historical understanding, and engagement with local communities, creating memorable and enriching travel encounters. With the advent of advanced technologies and evolving traveler preferences, the tourism guidance service market is transforming and expanding, offering diverse guided tour options catering to various interests, age groups, and travel styles.

Key organizations are working on increasing their business portfolios by utilizing various innovative technologies to develop smart tourism. Emerging players are gathering funds to create various smart tourism guidance service applications.

For example, in January 2020, China-based travel company 'Chengdu Zhongke Daqi Software Co. Ltd' raised USD 5 million in funding to develop smart tourism guiding services.

(Source:skift.com/2020/01/10/daq-soft-raises-5-million-for-smart-to...

As a result of the coronavirus (COVID-19) pandemic, the global travel market is seeing a significant decline. According to the source, year-on-year flight bookings to China by U.S. travelers saw an enormous decrease of 98.1 percent when comparing 2020 bookings between January 6 to March 8 to those of the previous year. The Americas saw a lower drop of 14.5 percent, but whether this figure will decrease further remains to be seen as travel restrictions are being put in place across the globe. For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page.

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

Th...

Business travel and tourism spending of Bosnia and Herzegovina surged by 7.03% from 0.5 billion US dollars in 2018 to 0.5 billion US dollars in 2019. Since the 0.14% decline in 2016, business travel and tourism spending soared by 42.66% in 2019. US dollar billion, at current prices and exchange rates.

Direct contribution of travel and tourism to employment (% of GDP) of Estonia rose by 4.67% from 4.0 % in 2018 to 4.2 % in 2019. Since the 1.07% decline in 2017, direct contribution of travel and tourism to employment (% of GDP) leapt by 5.13% in 2019. The share of Travel & Tourism spending or employment in the equivalent economy-wide concept in the published national income accounts or labour market statistics. Visitor exports are compared with exports of all goods and services Domestic Travel & Tourism spending is compared with GDP Government individual Travel & Tourism spending is compared with total government spending Internal Travel & Tourism consumption is compared with total internal consumption (i.e. total domestic spending plus total export) Leisure Travel & Tourism contribution to GDP is compared with total GDP Business Travel & Tourism contribution to GDP is compared with total GDP Travel & Tourism capital investment spending is compared with all fixed investment spending

As of March 2020, Russian tourists' demand for all travel destinations was projected to decline by 20 to 25 percent due to the coronavirus (COVID-19) pandemic. Furthermore, approximately 30 percent of small- and medium-sized tourism companies were estimated to close down in Russia by the end of vacation season of 2020. For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page.

Leisure travel and tourism spending of Trinidad and Tobago surged by 14.89% from 1.5 billion US dollars in 2018 to 1.7 billion US dollars in 2019. Since the 4.45% decline in 2016, leisure travel and tourism spending soared by 26.53% in 2019. US dollar billion, at current prices and exchange rates.

The rapid decline in domestic and international travel caused by the pandemic has created a drastic knock-on impact for the airline industry. With the temporary collapse of tourism flows, many airlines have reduced flight schedules and suffered from lower-than-normal load factors, causing many to rapidly streamline operations in order to navigate the pandemic. However, airlines are adapting and adopting new technologies and strategies in a bid to cater to changing consumer preferences. Read More

In 2024, after two years of growth, there was significant decline in the Dominican travel set market, when its value decreased by -13.4% to $577K. Over the period under review, consumption, however, recorded resilient growth. Travel set consumption peaked at $943K in 2019; however, from 2020 to 2024, consumption failed to regain momentum.

Revenue in the Tour Operators industry in Europe is anticipated to contract at a compound annual rate of 6.2% to €78.3 billion over the five years through 2024. The decline in revenue over the period is predominantly due to the damage the COVID-19 outbreak inflicted on the travel sector over the two years through 2022. Customers were unable to travel abroad or domestically. Since restrictions were eased (at different intervals across different countries), holiday numbers have increased both domestically and internationally, which has seen an influx in bookings for European tour operators. Travel in Europe has reached 91% of its pre-pandemic level, as recorded by the European Travel Commission, and many Europeans have sought advice and booked tours to travel to their dream destinations. Revenge travel is a trend tour operators have become accustomed to, with customers hungry for trips after being locked in for so long during the COVID-19 outbreak. High inflation in the two years through 2024 is curbing demand as people’s pockets are squeezed. As a result, tour operator’s revenue is set to contract by 3.1% in 2024. The weather continues to dictate seasonal demand and destinations that tour operators target for trips, whilst geopolitical tensions have customers wanting the protection of booking through a travel operator.

Revenue is expected to grow at a compound annual rate of 1.1% over the five years through 2029 to €82.6 billion. Tour operators will continue to benefit from the growing travel industry, with people keen to travel for once-in-a-lifetime trips, city breaks, walking tours, culinary hotspots and beach retreats. Tour operators that give their customers more flexibility and the ability to book at the last minute will see significant demand as Europeans opt to travel at the last minute to reduce the risk of cancellations and airport strikes. Operators will face the challenge of adjusting packages, deals and holiday destinations to suit changing preferences. Sustainable travel tours are a growing market as travellers aim to travel more responsibly and lessen the environmental impact of tourism, which will encourage more operators to appeal to the environmentally conscious traveller.

According to Cognitive Market Research, the global Extreme Tourism Market size will be USD 295485.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 15.90% 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 118194.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.1% from 2024 to 2031. Europe accounted for a market share of over 30% of the global revenue with a market size of USD 88645.65 million. Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 67961.67 million in 2024 and will grow at a compound annual growth rate (CAGR) of 17.9% from 2024 to 2031. Latin America had a market share of more than 5% of the global revenue with a market size of USD 14774.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.3% 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 5909.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.6% from 2024 to 2031. The Mountain Climbing held the highest Extreme Tourism Market revenue share in 2024. Market Dynamics of Extreme Tourism Market Key Drivers for Extreme Tourism Market Increased disposable income allows more people to spend on high-adventure travel experiences. The global extreme tourism market is benefiting from increased disposable income, which is enabling more people to spend on high-adventure travel experiences. As individuals’ financial resources grow, they are more willing to invest in unique and thrilling travel activities that promise unparalleled experiences. This rise in disposable income is facilitating greater participation in extreme tourism, leading to a broader market reach and increased demand for adventurous travel options. Social media influence showcasing extreme tourism experiences and driving demand through shared content. Social media has significantly impacted the extreme tourism market by showcasing extreme tourism experiences and driving demand through shared content. Platforms such as Instagram, Facebook, and TikTok feature compelling visuals and stories from extreme travelers, inspiring others to seek out similar adventures. This influence of social media amplifies interest and encourages more people to explore extreme tourism opportunities, contributing to the market’s expansion. Restraint Factor for the Extreme Tourism Market High cost of extreme tourism activities, which may limit accessibility to a niche market segment. The extreme tourism market faces a challenge due to the high cost of extreme tourism activities, which may limit accessibility to a niche market segment. The expense associated with activities such as skydiving, bungee jumping, and deep-sea diving can be prohibitive for many potential travelers. As a result, the market is constrained to a smaller audience who can afford these premium experiences, potentially limiting overall market growth. Impact of Covid-19 on the Extreme Tourism Market The COVID-19 pandemic severely impacted the Extreme Tourism market, as travel restrictions, lockdowns, and safety concerns led to a sharp decline in tourism activities worldwide. Adventure and extreme tourism, which rely heavily on cross-border travel and outdoor experiences, faced significant challenges as destinations closed and potential tourists opted for safer, local options or postponed their plans altogether. Additionally, the financial strain on individuals and businesses resulted in reduced disposable income and spending on non-essential activities like extreme tourism. However, as vaccination rates increased and restrictions gradually eased, there has been a resurgence in interest, with travelers seeking unique and isolated experiences, driving a slow but steady recovery in the market. Introduction of the Extreme Tourism Market Extreme tourism is characterized by high-adventure travel experiences that push the boundaries of conventional tourism and is rapidly gaining traction globally. This niche market encompasses activities such as skydiving, deep-sea diving, and extreme sports, offering thrill-seekers unique and exhilarating experiences. With the growing popularity of these adrenaline-pumping activities, extreme tourism has carved out a distinct segment within the broader travel industry, appealing to adventurous travelers seeki...

In 2024, after three years of growth, there was significant decline in the East European travel set market, when its value decreased by -14.5% to $13M. Overall, consumption, however, posted noticeable growth. The level of consumption peaked at $15M in 2023, and then shrank in the following year.

Travel and tourism direct contribution to GDP (LCU) of Netherlands rose by 3.45% from 13.3 billion LCU in 2018 to 13.8 billion LCU in 2019. Since the 0.68% decline in 2014, travel and tourism direct contribution to GDP (LCU) soared by 23.84% in 2019.

The Europe travel set market shrank to $78M in 2024, which is down by -10.1% against the previous year. Over the period under review, consumption saw a slight decline. Over the period under review, the market attained the maximum level at $145M in 2018; however, from 2019 to 2024, consumption remained at a lower figure.

Revenue in the Tour Operators industry in Europe is anticipated to contract at a compound annual rate of 6.2% to €78.3 billion over the five years through 2024. The decline in revenue over the period is predominantly due to the damage the COVID-19 outbreak inflicted on the travel sector over the two years through 2022. Customers were unable to travel abroad or domestically. Since restrictions were eased (at different intervals across different countries), holiday numbers have increased both domestically and internationally, which has seen an influx in bookings for European tour operators. Travel in Europe has reached 91% of its pre-pandemic level, as recorded by the European Travel Commission, and many Europeans have sought advice and booked tours to travel to their dream destinations. Revenge travel is a trend tour operators have become accustomed to, with customers hungry for trips after being locked in for so long during the COVID-19 outbreak. High inflation in the two years through 2024 is curbing demand as people’s pockets are squeezed. As a result, tour operator’s revenue is set to contract by 3.1% in 2024. The weather continues to dictate seasonal demand and destinations that tour operators target for trips, whilst geopolitical tensions have customers wanting the protection of booking through a travel operator.

Revenue is expected to grow at a compound annual rate of 1.1% over the five years through 2029 to €82.6 billion. Tour operators will continue to benefit from the growing travel industry, with people keen to travel for once-in-a-lifetime trips, city breaks, walking tours, culinary hotspots and beach retreats. Tour operators that give their customers more flexibility and the ability to book at the last minute will see significant demand as Europeans opt to travel at the last minute to reduce the risk of cancellations and airport strikes. Operators will face the challenge of adjusting packages, deals and holiday destinations to suit changing preferences. Sustainable travel tours are a growing market as travellers aim to travel more responsibly and lessen the environmental impact of tourism, which will encourage more operators to appeal to the environmentally conscious traveller.

In 2021, after two years of growth, there was significant decline in the Cuban travel set market, when its value decreased by -29.5% to $X. Overall, consumption, however, enjoyed a perceptible increase. Travel set consumption peaked at $X in 2020, and then contracted rapidly in the following year.