Domestic Tourism Market Report
Domestic Tourism Market by Tour Type (Adventure, Spiritual/Cultural, Sports, Weekend Getaways, and Others), Tourism Type (Local Travel and Interstate Travel), Mode of Booking (Online and Offline), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2023-2032
Domestic Tourism Overview
When people travel within their own country for pleasure, recreation, or relaxation, is referred to as domestic tourism. It plays a crucial part in the tourism and hospitality sectors by boosting local economies, generating employment, and encouraging cross-cultural interaction,. This type of tourism has gained substantial traction due to its convenience, familiarity, and often more affordable nature compared to international travel. Domestic tourism encompasses a diverse range of activities and destinations tailored to cater to the interests of residents exploring their own country. Visits to historical sites and national parks & beaches, rural regions, and urban centers fall under this category.
Global Domestic Tourism Market Analysis
The global domestic tourism market size was $1,703.7 billion in 2022 and is predicted to grow at a CAGR of 16.7%, by generating a revenue of $7,947.1 billion by 2032.
COVID-19 Impact on Global Domestic Tourism Market
The COVID-19 pandemic had a great impact on the domestic tourism sector. Travel restrictions, lockdowns, and safety concerns significantly disrupted the usual flow of tourists. Popular tourist destinations also witnessed a decline in footfall. Small businesses dependent on tourism, such as local eateries, souvenir shops, and tour guides, faced economic strain. The travel and hospitality industries experienced a sharp decline in demand, leading to job losses and revenue slumps. As a result, many businesses adapted by implementing stringent health protocols and promoting local tourism to stimulate recovery. The situation led to a surge in digital innovation, with virtual tours and online experiences gaining prominence. Public’s preferences also evolved, with an increased focus on open spaces, nature-centric activities, and wellness retreats. Domestic tourism gained favor due to its perceived safety and convenience compared to international travel. The recovery of the domestic tourism market gradually took shape as restrictions eased and vaccinations rolled out.
Multifaceted Benefits of Domestic Tourism to Drive Market Growth
Domestic tourism brings a host of positive impacts to a country’s economy, culture, and environment. It boosts a sense of national pride as citizens explore and appreciate the wonders of their own country. Such experiences light a deeper connection to their roots and heritage, promoting a shared identity. Moreover, domestic tourism boosts local economies by generating demand for goods and services particularly in the hospitality, transportation, and entertainment sectors. This in turn promotes job creation and helps small businesses flourish. Communities thrive as visitors explore lesser-known destinations, distributing economic benefits more evenly across the nation. Culturally, domestic tourism celebrates the diversity within a country. Travelers engage with various traditions, languages, and cuisines, driving mutual respect and understanding among regions. Shorter travel distances reduce carbon footprints and the strain on transportation infrastructure. In addition, appreciation for domestic natural wonders encourages their conservation and protection for future generations.
Concerns Related to Congestion and Strain on Infrastructure to Restrain Market Growth
The overemphasis on domestic tourism can lead to over-tourism in popular destinations, resulting in congestion, strained infrastructure, and negative impacts on local ecosystems. The increase in footfall can contribute to pollution, habitat destruction, and loss of biodiversity. Also, a major focus on domestic tourism might divert attention and resources from international tourism. This could limit opportunities for cross-cultural interactions and global exposure. In addition, over time, domestic tourism might accentuate socio-economic inequalities. Popular tourist areas often experience rising property prices which can lead to gentrification and displacement of local residents. This, in turn, can disrupt community cohesion and destroy the authenticity of the destination. Another potential downside is the reliance on seasonal tourism patterns, which can lead to unstable job markets for those in the tourism industry. This uncertainty can impact the livelihoods of individuals and communities dependent on tourism-related employment. Therefore, concentrating solely on domestic tourism might hinder the development of a globally competitive tourism industry.
Innovations in Domestic Tourism to Drive Excellent Opportunities in the Future
Travelers are increasingly seeking environmentally friendly options. The domestic tourism sector can leverage this trend by promoting eco-friendly accommodations, transportation, and activities that resonate with conscious travelers. Domestic tourism can capitalize on the desire for authentic cultural experiences. Such opportunities could include heritage tours, culinary trails, and workshops that immerse travelers in the local way of life. With rising health awareness, domestic tourism can develop wellness retreats, spa getaways, and outdoor adventure packages that cater to travelers seeking relaxation and rejuvenation. Incorporating technology like augmented reality (AR) and virtual reality (VR) into tourism experiences can create interactive and engaging journeys, enhancing the appeal of domestic destinations. Creating accessible infrastructure and services ensures that travelers with disabilities can enjoy destinations, broadening the market reach of domestic tourism. Encouraging travel during off-peak seasons can help reduce overcrowding, support year-round business for local vendors, and make destinations more attractive to a broader range of visitors. Celebrating regional cuisines and local food production can be a significant factor for travelers interested in exploring the culinary diversity of a country.
Global Domestic Tourism Market, by Tour Type, 2022
The adventure sub-segment accounted for the highest market share in 2022. Adventure activities are considered as the foremost tour choice in domestic tourism due to its inherent allure and the increasing demand for unique experiences among travelers. The search for thrilling experiences boosts the dominance of adventure tourism in the travel industry. Younger generation desires excitement and a break from routine, and adventure trips offer precisely that. Such experiences are an opportunity to explore the unexplored and embrace challenges. The rise of social media and digital sharing plays a pivotal role in spreading its awareness. Furthermore, Adventure tourism frequently involves physical activities that align with growing focus on overall well-being. Activities like hiking, rock climbing, and water sports not only provide an adrenaline rush, but also contribute to personal fitness goals. In addition, the desire of conquering fears and pushing boundaries is a major factor driving the demand for adventure activities.
Global Domestic Tourism Market, by Tourism Type, 2022
The local travel sub-segment accounted for the highest market share in 2022. The prevalence of local travel as the primary form of domestic tourism can be attributed to several compelling reasons. Local travel offers convenience and familiarity that attracts travelers. Exploring nearby destinations allows individuals to escape the routines of daily life without the hassle of long journeys or the need for extensive planning. This simplicity appeals to those seeking relaxation and spontaneity. Local travel often presents an opportunity for individuals to discover hidden gems in their own cities. Familiarity with the language, culture, and customs of the region facilitates meaningful interactions with locals enhancing the overall travel experience. Such authentic encounters create a sense of connection and belonging and raise a deeper appreciation for one's own culture and heritage. In addition, smaller towns' economies are strengthened by local tourism since it brings in money for nearby companies, which boosts the general profitability of the area.
Global Domestic Tourism Market, by Mode of Booking, 2022
The offline sub-segment accounted for the highest market share in 2022. Domestic tourism demand is increasing as tour operators offer a diverse range of services to tourists through offline modes, such as controlled packages, fully tailored packages, mapped-out systematized tour packages, and limited tourism packages in which the customer selects each element of the tour based on their specific needs. Offline tour operators offer a variety of services to tourists, including customized packages in which the customer selects each component of the tour based on their individual needs, designed standardized tour packages, specialized tourism packages, and full tour guide packages. Small tour firms have created a market for themselves and maximized their profits by conducting business offline..
Global Domestic Tourism Market, by Region, 2022
The Europe domestic tourism market generated the highest revenue in 2022. Europe stands out as a dominant hub for domestic tourism due to a blend of historical richness, diverse cultural tapestry, and efficient infrastructure. The region's historical significance creates a magnetic fascination, with iconic landmarks like the Eiffel Tower and Colosseum attracting millions of visitors annually. Such sites have centuries of stories, making Europe a living history book that travelers desire to explore. Furthermore, Europe's cultural diversity enhances its appeal. From the Mediterranean charm of Spain to the fairy-tale landscapes of Scandinavia, each nation offers a distinct experience. Local cuisines, traditions, and languages boosts the travel industry in the region. The ease of travel within Europe is another key factor driving the market growth. Well-connected transportation networks, including high-speed trains and budget airlines, facilitate seamless exploration of neighboring areas. This accessibility boosts curiosity-driven journeys, encouraging travelers to explore beyond their cities. Europe's commitment to preserving its heritage enhances the domestic tourism experience.
Competitive Scenario in the Global Domestic Tourism Market
Some of the leading companies of the market include Abercrombie & Kent USA LLC, Expedia Group, Cox and Kings Ltd, Kensington Tours, Micato Safari, Scott Dunn Ltd., Tauck, Inc., Thomas Cook India Ltd., La Vacanza Travel, and Butterfield & Robinson.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Tour Type
Segmentation by Tourism Type
Segmentation by Mode of Booking
Key Companies Profiled
Q1. What is the size of the global domestic tourism market?
A. The size of the global domestic tourism market was over $1,703.7 billion in 2022 and is projected to reach $7,947.1 billion by 2032.
Q2. Which are the major companies in the domestic tourism market?
A. Abercrombie & Kent USA LLC, Expedia Group, and Cox and Kings Ltd. are the major companies in the domestic tourism market.
Q3. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q4. Which companies are investing more on R&D practices?
A. Scott Dunn Ltd., Tauck, Inc., and Thomas Cook India Ltd., are the major companies investing in R&D to improve their product portfolio.