Domestic Tourism Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028

The global domestic tourism market was valued at USD 1840.67 billion in 2022 and is expected to experience strong growth with a CAGR of 15.85% through 2028. Domestic tourism refers to the travel of a country's residents within their own nation. It is closely associated with activities such as visiting relatives and friends, as well as religious pilgrimages. Domestic tourism plays a pivotal role in boosting the local economy as it leads to increased local expenditure. This, in turn, enhances the quality of life for residents and provides the local government with additional funds to invest in infrastructure and facility improvements.

Domestic travel also helps overcome seasonality within regions by encouraging tourists to explore less-visited rural areas that are often overlooked by foreign visitors. China has been particularly successful in promoting domestic tourism, surpassing all other countries in domestic expenditure growth due to its growing middle class and government support. While China continues to lead in absolute domestic expenditure growth, many emerging countries are also experiencing significant increases in domestic travel and tourism expenditures as their citizens have more disposable income.

The closure of international borders during the pandemic led to a significant increase in internal travel, especially to smaller areas where people could relax and enjoy some alone time. Domestic travel offers the advantage of avoiding the need for visa applications and the additional time spent waiting for approval. It also eliminates the expenses associated with international travel, such as long-haul flights, hotel stays, tour guides, and more expensive 'foreign visitor' tickets for local attractions, as well as visa and immigration fees.

Moreover, traveling to local destinations encourages regular interactions with locals, providing travelers with the opportunity to explore the true distinctive character of a location, its people, and its culture. Tourists often learn a lot about the area they are visiting due to their familiarity with the local culture and proficiency in the language.

The growth of the tourism sector over the past century has enabled people to visit other states or cities to experience new locations and activities. This growth has also been facilitated by the introduction of numerous activities and attractive packages by tour operators. In addition to the crucial roles that travel and hotels have played in the growth of domestic tourism, advancements in media technology have contributed to this trend.

Key Market Drivers:

1. Economic Factors: Economic conditions, including disposable income levels, employment rates, and overall economic stability, play a pivotal role in shaping the domestic tourism landscape. As economies grow and per capita income rises, individuals have more resources to spend on travel experiences, directly contributing to the growth of the tourism sector.

2. Sociocultural Shifts: Changing societal trends and cultural norms influence the way people approach domestic travel. Trends such as the desire for unique, personalized experiences and the influence of social media have driven the shift towards 'experiential tourism,' boosting domestic tourism.

3. Infrastructure and Accessibility: A well-developed transportation and hospitality infrastructure significantly impacts the attractiveness of domestic tourism. Improved road networks, efficient public transportation, and diverse accommodation options enhance the appeal of domestic travel.

4. Technological Advancements: Technology has transformed travel planning and experiences. Online travel agencies, mobile apps, and travel comparison websites provide travelers with seamless platforms to research and book various travel components, democratizing travel planning.

5. Environmental Considerations: Increasing awareness of environmental sustainability has led to the rise of ecotourism and nature-based experiences. Travelers seek eco-friendly and responsible tourism options, promoting domestic tourism that minimizes environmental impact.

6. Government Policies and Support: Government policies, such as visa liberalization, infrastructure investment, and cultural event promotion, influence both domestic and international tourism. Some governments offer incentives to attract tourists, contributing to the sector's growth.

7. Cultural and Heritage Tourism: Countries rich in cultural heritage and historical sites attract travelers interested in exploring their own history, fostering the development of cultural tourism routes and heritage trails.

8. Educational Opportunities: The integration of education with travel has fueled educational tourism. Students and families view travel as an opportunity to enhance learning experiences through visits to museums, historical sites, and educational institutions.

Key Market Challenges:

1. Economic Uncertainty: Economic fluctuations significantly shape domestic tourism trends. Factors such as inflation, unemployment rates, and disposable income directly affect people's ability to travel. Economic uncertainties can lead to reduced consumer spending on leisure activities, including domestic travel.

2. Changing Consumer Behavior: Shifts in consumer behavior, driven by preferences for experiences over possessions, sustainability considerations, and technological influences, are changing how people explore their own country.

3. Infrastructure and Accessibility: The quality and accessibility of transportation, accommodation, and tourist facilities impact destination attractiveness. Inadequate infrastructure can deter tourists, while inaccessible destinations exclude certain populations.

4. Seasonality and Overcrowding: Many domestic tourism destinations face issues of seasonality, leading to overcrowding during peak times and reduced economic activity during off-peak seasons.

5. Competition from International Tourism: The allure of international destinations can divert domestic tourists' attention from local attractions. Effective marketing campaigns showcasing local treasures are necessary to combat this challenge.

6. Lack of Innovation: Innovation is crucial for domestic tourism's continued growth. Embracing new technologies and data analytics can enhance travel experiences

and support modern travelers' needs.

7. Regulatory and Policy Challenges: Complex regulatory landscapes and changing policies can create barriers for travelers and tourism businesses. Clear and consistent policies are essential for the sector's growth.

8. Environmental Concerns: Tourism's environmental impact, including overdevelopment and pollution, raises ecological concerns. Destinations must adopt sustainable practices and promote responsible tourism.

Key Market Trends:

1. Reimagined Travel Experiences: Travelers seek authentic and meaningful experiences, moving away from traditional tourist attractions to engage with local cultures, communities, and environments.

2. Health and Safety Prioritization: Health and safety concerns, heightened by the COVID-19 pandemic, influence destination choices. Enhanced cleanliness, hygiene protocols, and safety measures are integral considerations for travelers.

3. Rise of Sustainable and Responsible Tourism: Travelers prioritize destinations and businesses that prioritize sustainability and responsible practices, reshaping the industry.

4. Technology Integration: Technology transforms travel planning, experiences, and safety measures, providing personalized recommendations and real-time information.

5. Workcation and Leisure Travel: Remote work trends lead to 'workcation' travel, combining work with leisure. 'Leisured' travel blends business trips with leisure activities.

6. Focus on Wellness and Mindfulness: Travelers seek wellness experiences, leading to wellness retreats, spa getaways, and wellness-focused activities.

7. Multi-Generational Travel: Families spanning multiple generations travel together, creating demand for diverse activities catering to different age groups.

8. Hyper-Local Travel: Travel restrictions during the pandemic have increased interest in nearby destinations, supporting local businesses.

9. Personalization and Data-Driven Insights: Data analytics enable personalized recommendations, customized itineraries, and targeted marketing.

10. Regenerative Travel: Travelers aim to leave a positive impact on destinations, engaging in community projects, conservation efforts, and cultural exchanges.

11. Niche and Adventure Tourism: Specialized offerings, such as culinary journeys and extreme sports, cater to diverse interests and passions.

12. Resilient Tourism Planning: Destinations diversify tourism offerings and develop contingency plans to ensure sustainable growth and resilience.

In conclusion, the global domestic tourism market is evolving rapidly, shaped by changing consumer behaviors, technological advancements, and a renewed focus on sustainability and wellness. Adapting to these trends will be crucial for destinations, businesses, and travelers to collaboratively shape a resilient, responsible, and engaging future for domestic tourism.

Segmental Insights:

Tour Type Insights: In 2022, adventure tourism held the largest market share in terms of sales. Adventure travel involves visiting unusual, exotic, distant, or remote destinations and often includes outdoor activities with varying levels of risk and excitement.

Regional Insights: In 2022, Europe accounted for more than 38% of the market share. Europe boasts well-known countries and cities with rich history, diverse cultures, and stunning natural settings. It has attracted a significant number of domestic arrivals, with many developing countries in the Asia-Pacific region also experiencing growth in domestic travel due to rising middle-class incomes. The performance of the tourism industry varies among nations due to differences in development stages, income levels, infrastructure, and economic and geopolitical conditions.

Report Scope:

In this report, the global Domestic Tourism market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Domestic Tourism Market, By Tour Type:

• Adventure
• Spiritual/Cultural
• Sports
• Weekend Getaways
• Others

Domestic Tourism Market, By Tourism Type:

• Local Travel
• Interstate Travel

Domestic Tourism Market, By Mode Of Booking:

• Online
• Offline

Domestic Tourism Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia-Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Domestic Tourism Market.

Available Customizations:

Global Domestic Tourism Market report with the given market data, the publisher offers customizations according to a company's specific needs.


This product will be delivered within 1-3 business days.