The world of tourism is undergoing a transformation, and one significant aspect of this shift is the changing dynamics of domestic spending. Across the globe, experts anticipate a decline in domestic spending on tourism over the next decade. Let's explore this trend and its implications on different regions, including the United States, Europe, MENA countries, Asia Pacific (APAC), and the Americas.
The United States: A Domestic Tourism Powerhouse
According to Statista, the United States has consistently maintained the highest domestic spending as a share of total tourism revenue. In 2020, domestic spending accounted for approximately 85% of the country's total tourism revenues. However, by 2022, this figure had dropped slightly to 80%. Projections indicate that by 2025, domestic spending in the US will represent around 75% of tourism revenue and is expected to increase to approximately 77% by 2032. Unlike most other regions, the US is expected to generate more domestic spending in 2032 compared to 2025.
Europe: Balancing International and Domestic Tourism
Europe presents a unique case, with international travel constituting a significant portion of tourism. Many Europeans live within a few hours' drive of an international border, leading to international travel making up as much as two-thirds of the region's tourism. In 2020, domestic spending in Europe accounted for 35% of total tourism revenue, which decreased to approximately 33% in 2022. Projections suggest a further decline, with domestic spending expected to drop to 29% by 2025 and 28% by 2032.
MENA Countries: Changing Dynamics
The Middle East and North Africa (MENA) countries witnessed an increase in domestic spending from just over 20% of total tourism revenue in 2020 to 25% in 2022. However, this trend is expected to reverse, with domestic spending projected to decrease to 20% in 2025 and further decline to 18% in 2032.
Asia Pacific (APAC): A Shift in Spending
APAC countries experienced a notable increase in domestic spending, rising from 73% of tourism revenues in 2020 to 80% in 2022. Nevertheless, projections suggest a downward trajectory, with domestic spending anticipated to drop to 65% in 2025 and 63% in 2032.
The Americas: A Broader Picture
Across the Americas, there is a general expectation of a 13% decrease in tourism-related domestic spending. This decline will take domestic spending from 78% of total tourism-generated revenue in 2020 to approximately 65% by 2032.
The evolving landscape of domestic spending in tourism reflects changing preferences, economic factors, and global events. While some regions, like the United States, maintain a strong domestic focus, others are shifting towards a greater reliance on international tourism. These trends offer insights into the resilience and adaptability of different tourism markets in the face of evolving circumstances. Understanding these dynamics is crucial for businesses and travellers as they navigate the ever-changing world of tourism.