outbound tourism growth

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Outbound tourism visitor growth worldwide 2020-2025, by region

According to a 2024 study, the number of outbound tourist visits worldwide is expected to grow across all regions in that year. After the dramatic decline with the onset of the coronavirus (COVID-19) pandemic, and the rebound in 2022, global outbound visits are predicted to rise annually by 17 percent in 2024. That year, the Asia-Pacific region is forecast to record the highest figure, with a 36.4 percent increase in outbound trips.

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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February 2024

2020 to 2022

Data for 2020 were previously published by the source. Figures for 2022 are estimates. Data from 2023 to 2025 are forecasts. Outbound refers to the sum of visits to all destinations. Figures were calculated using the Global Travel Service (GTS) model as of December 12, 2023.

Statistics on " Tourism worldwide "

Total contribution of travel and tourism to GDP worldwide 2019-2033
Travel and tourism: share of global GDP 2019-2033
Leading global travel markets by travel and tourism contribution to GDP 2019-2022
Global leisure travel spend 2019-2022
Global business travel spending 2001-2022
Number of international tourist arrivals worldwide 2005-2023, by region
Travel and tourism employment worldwide 2019-2033
Global hotel and resort industry market size worldwide 2013-2023
Most valuable hotel brands worldwide 2023, by brand value
Hotel openings worldwide 2021-2024
Hotel room openings worldwide 2021-2024
Countries with the most hotel construction projects in the pipeline worldwide 2022
Airports with the most international air passenger traffic worldwide 2022
Global passenger rail users forecast 2017-2027
Daily ridership of bus rapid transit systems worldwide by region 2023
Number of users of car rentals worldwide 2019-2028
Number of users in selected countries in the Car Rentals market in 2023
Carbon footprint of international tourism transport worldwide 2005-2030, by type
Market size of museums, historical sites, zoos, and parks worldwide 2022-2027
Leading museums by highest attendance worldwide 2019-2022
Monuments on the UNESCO world heritage list 2023, by type
Selected countries with the most Michelin-starred restaurants worldwide 2023
Online travel market size worldwide 2017-2028
Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
Number of aggregated downloads of leading online travel agency apps worldwide 2023
Market cap of leading online travel companies worldwide 2023
Estimated EV/Revenue ratio in the online travel market 2024, by segment
Estimated EV/EBITDA ratio in the online travel market 2024, by segment
Global travelers who believe in the importance of green travel 2023
Sustainable initiatives travelers would adopt worldwide 2022, by region
Airbnb revenue worldwide 2017-2023
Airbnb nights and experiences booked worldwide 2017-2023
Technologies global hotels plan to implement in the next three years 2022
Hotel technologies global consumers think would improve their future stay 2022
Travel and tourism revenue worldwide 2019-2028, by segment
Distribution of sales channels in the travel and tourism market worldwide 2018-2028
Inbound tourism visitor growth worldwide 2020-2025, by region

Other statistics that may interest you Tourism worldwide

Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
Basic Statistic Travel and tourism: share of global GDP 2019-2033
Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
Basic Statistic Global leisure travel spend 2019-2022
Premium Statistic Global business travel spending 2001-2022
Premium Statistic Number of international tourist arrivals worldwide 1950-2023
Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
Basic Statistic Travel and tourism employment worldwide 2019-2033
Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
Basic Statistic Leading hotel companies worldwide 2023, by number of properties
Premium Statistic Hotel openings worldwide 2021-2024
Premium Statistic Hotel room openings worldwide 2021-2024
Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022
Premium Statistic Airports with the most international air passenger traffic worldwide 2022
Premium Statistic Market value of selected airlines worldwide 2023
Premium Statistic Global passenger rail users forecast 2017-2027
Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
Premium Statistic Number of users of car rentals worldwide 2019-2028
Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Attractions

Premium Statistic Market size of museums, historical sites, zoos, and parks worldwide 2022-2027
Premium Statistic Leading museums by highest attendance worldwide 2019-2022
Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Online travel market

Premium Statistic Online travel market size worldwide 2017-2028
Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
Basic Statistic Market cap of leading online travel companies worldwide 2023
Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Selected trends

Premium Statistic Global travelers who believe in the importance of green travel 2023
Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
Premium Statistic Airbnb revenue worldwide 2017-2023
Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
Premium Statistic Technologies global hotels plan to implement in the next three years 2022
Premium Statistic Hotel technologies global consumers think would improve their future stay 2022
Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Further related statistics

Premium Statistic Number of tourist arrivals from Canada to Europe 2019-2022, by destination
Premium Statistic Inbound and outbound visitor growth worldwide 2020-2025
Premium Statistic Number of tourist arrivals from the U.S. to Europe 2019-2022, by destination
Premium Statistic Number of tourist arrivals from Mexico to Europe 2019-2022, by region of destination
Basic Statistic Number of tourist arrivals from Argentina to Europe 2019-2022, by destination
Premium Statistic Number of tourist arrivals from Brazil to Europe 2019-2022, by destination
Basic Statistic Number of tourist arrivals from India to Europe 2019-2022, by destination
Premium Statistic Outbound visitor growth in the Americas 2020-2024, by region
Basic Statistic Outbound visitor growth in Africa 2020-2025
Premium Statistic Italy: international outbound tourism 2016-2018, by macro area
Premium Statistic Distribution of Italian outbound tourist spending 2019, by country
Premium Statistic Y-o-Y change in departures from the United states to the Middle East by country 2017
Premium Statistic Venezuela: inbound tourism daily spending 2010-2017
Premium Statistic Number of international visitor arrivals from India to Indonesia 2014-2023
Premium Statistic Number of international visitor arrivals from Germany to Indonesia 2014-2023
Premium Statistic Arrival of international tourists in Bahrain 2017-2020
Premium Statistic Main international destinations for Colombians 2022
Premium Statistic French tourists' reasons not to withdraw money outside the Euro zone in 2014

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Number of tourist arrivals from Canada to Europe 2019-2022, by destination
Inbound and outbound visitor growth worldwide 2020-2025
Number of tourist arrivals from the U.S. to Europe 2019-2022, by destination
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Number of tourist arrivals from Argentina to Europe 2019-2022, by destination
Number of tourist arrivals from Brazil to Europe 2019-2022, by destination
Number of tourist arrivals from India to Europe 2019-2022, by destination
Outbound visitor growth in the Americas 2020-2024, by region
Outbound visitor growth in Africa 2020-2025
Italy: international outbound tourism 2016-2018, by macro area
Distribution of Italian outbound tourist spending 2019, by country
Y-o-Y change in departures from the United states to the Middle East by country 2017
Venezuela: inbound tourism daily spending 2010-2017
Number of international visitor arrivals from India to Indonesia 2014-2023
Number of international visitor arrivals from Germany to Indonesia 2014-2023
Arrival of international tourists in Bahrain 2017-2020
Main international destinations for Colombians 2022
French tourists' reasons not to withdraw money outside the Euro zone in 2014

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United States Outbound Tourism Takes Flight: Market Set to Reach US$ 412.26 Billion by 2034, CAGR 14.2%

The US outbound tourism market is soaring, projected to reach a staggering US$ 412.26 billion by 2034 , with a growth rate of 14.2% CAGR . This surge in wanderlust presents a golden opportunity for travel businesses to cater to the evolving needs and desires of American vacationers. But what makes your brand stand out in a crowded landscape?

Fueling the American Adventure

Culture Cravings: Go beyond the beach. Offer unique travel experiences that cater to the growing desire for cultural immersion, allowing Americans to connect with their roots or discover new traditions.
Passport Powerhouse: Make the world accessible. Highlight the ease of travel with the US passport, offering seamless travel packages that capitalize on visa-free destinations or simplified visa processes.
Social Media Safari: Embrace the digital explorer. Partner with travel influencers to showcase hidden gems and fresh perspectives on popular destinations, igniting wanderlust on social media platforms.

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Medical Tourism on the Rise: Expand your healthcare offerings. Cater to the growing trend of medical tourism by offering travel packages that combine cultural exploration with access to specialized medical treatments abroad.
Escape the Ordinary: Become a haven for rejuvenation. Offer wellness retreats and eco-adventures that provide an escape from pollution and a chance to reconnect with nature.
Business & Beyond: Support the global workforce. Design travel packages that cater to the increasing number of American business travelers, with options for workcations that blend remote work with leisure activities.
Sports Fanatics Welcome: Embrace the global game. Develop travel packages focused on major sporting events around the world, allowing American sports fans to experience their passion on a global stage.

Understanding the Growth Drivers:

Affluent Adventurers: Target the American dream vacationer. Rising disposable income empowers Americans to spend more on travel experiences that go beyond the traditional.
Cultural Connections: Become a bridge to the world. Cater to the American desire to explore diverse cultures and connect with their heritage.
Remote Work Revolution: Embrace the workcation trend. Offer flexible travel options for remote workers who want to blend work and leisure abroad.

Due to the affordable travel and access to cutting-edge cosmetic surgery, many American patients fly to South or Central American nations like Costa Rica, Argentina, or Brazil for cosmetic procedures. Patients from the United States who require primary and dental care frequently travel to Mexico.

As Americans travelled to countries in Central America, including Costa Rica, for dental care that wasn’t covered by insurance, “Dental Tourism” quickly took off. Dental work makes up around 40% of the current medical tourism from the U.S., according to estimates. For high-quality dental care at around half the cost, American medical tourists frequently travel to Costa Rica. According to the Medical Tourism Association, the majority of American patients receive healthcare in Mexico or India.

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Modern amenities are currently available in nations like Thailand and India for life-saving procedures like heart surgery and hip or knee replacements. Singapore, Belgium, and South Africa are a few other well-liked locations. For affordable medical and dental care, many people from the U.S. to various other regions of the world. This will boost the U.S. outbound tourism market during the projection period.

Similarly, growing interest among the American population to spend their leisure time exploring the beauty and culture of other nations, especially developing ones, is expected to aid in the expansion of the U.S. outbound tourism market over the next ten years.

“With increasing number of business trips and booming medical tourism, the U.S. outbound tourism market is set to witness remarkable growth during the next ten years,” – says a lead FMI analyst.

Recent Developments

In July 2023, Brand USA hosted its first sales mission in Japan.
In 2019, LoungeBuddy, a platform that aims to ease access to lounges in airports, was acquired by American Express.

Who is Winning?

Key players operating in the U.S. outbound tourism market

Butterfield & Robinson
Expedia Inc.
Priceline Group
America Express Global Business Travel
Carlson Wagonlit Travel
HRG North America
America Express Travels
Travel Leaders Group

It is common knowledge that every traveler has different needs and expectations while making travel plans. Only when a travel agency satisfies the needs and preferences of the traveler will it be recognized and held to the highest standards in the industry. As a result, companies are continuously introducing new attractive packages to woo more and more customers.

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Future Market Insights, in its new offering, provides an unbiased analysis of the U.S. Outbound Tourism Market presenting historical demand data (2017-2021) and forecast statistics for the period from 2024 to 2034. The study divulges compelling insights on the U.S. Outbound Tourism Market based on Purpose Type (Business, Holiday/Leisure, VFR & Others) Booking Channel (Online Travel Agents, Traditional Agents, and Direct Booking), Tourism Type (Cultural & Heritage Tourism, Medical Tourism, Eco/Sustainable Tourism, Sports Tourism, Wellness Tourism & Others), Tour Type (Independent Traveller, Package Traveller, and Tour Group), By Age Group (15-25 Years, 26-35 Years, 36-45 Years, 46-55 Years, and 66- 75 Years) & Region – Forecast to 2024-2034.

The U.S. Outbound Tourism Market by Category

By Purpose Type:

Holiday/Leisure
VFR & Others

By Booking Channel:

Phone Booking
Online Booking
In Person Booking

By Tourism Type:

Cultural & Heritage Tourism
Medical Tourism
Eco/Sustainable Tourism
Sports Tourism
Wellness Tourism & Others

By Tour Type:

Independent Traveller
Package Traveller

By Age Group:

15-25 Years
26-35 Years
36-45 Years
46-55 Years
66-75 Years

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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Trends, Growth, and Opportunity Analysis of Outbound Tourism in the United States

In-depth Look at Demand Forecast for Outbound Tourism in the United States by Leisure Travel and Business Travel through 2034

Growing Desire Among the American Population to Indulge in Diverse Cultural Traditions Leading to Increase in Outbound Tourists from the United States

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United States Outbound Tourism Industry Snapshot

The demand for outbound tourism in the United States is expected to be valued at US$ 108.81 billion in 2024 and reach US$ 412.26 billion by 2034. Outbound tourism is expected to progress at an impressive CAGR of 14.2% through 2034.

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United States Outbound Tourism Growth Analysis

Tourists from the United States are increasingly flocking outbound not only to roam destinations but also to immerse themselves in the culture of the region. Thus, outbound tourism’s function is increasing in consumers’ eyes in the United States.
The United States is recognized to be a melting pot of cultures and an increasing number of tourists in the country are traveling internationally to connect to their roots.
Rising disposable income in the United States is enabling the population of the country to spend more money on outbound tourism activities.
The United States passport is in the top 10 when it comes to passport rankings, allowing American tourists to travel to nearly every recognized country in the world. Thus, the ease factor is propelling the outbound tourism industry in the country.
By highlighting previously little-explored locales around the world or showcasing popular destinations in a new light, social media is playing a key role in inducing wanderlust among the population of the United States and leading to growth in outbound tourism in the country.

United States Outbound Travel Trends

Mexico remains the region that Americans travel to the most, with a survey by the National Travel and Tourism Office of the United States pegging the number at 33.5 million in 2022. The vibrant culture of the nation, along with party hotspots like Acapulco and Tijuana, is inducing more outbound tourism from the United States to the country.
Increasing number of American patients are taking the plunge and traveling abroad for medical tourism . This trend is particularly evident in Americans traveling to Asian countries for local remedies not widely available in the United States, like Ayurveda treatments in India.
Rise in pollution levels in the United States is seeing an increasing number of tourists in the country traveling abroad for escapism. Beaches in the Caribbean and jungle safaris in Africa are winning over tourists from the United States.
Continuing expansion of American companies in the United States is seeing more international travel from the country for business purposes.
Passionate sports culture in the United States is helping the outbound tourism industry in the country. A survey commissioned by Visit Anaheim that about 45% of American sports fans have traveled abroad to watch sports and 35% have planned international trips around the location of a sporting event.
With remote work becoming more prominent among the American population, an increasing number of Americans are taking workcations, thus increasing the scope of outbound tourism from the United States.

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Overview of Restrictive Factors for Outbound Tourism in the United States

Worsening geopolitical conditions and rising flight prices are factors restraining the growth of outbound tourism in the United States. Safety concern while traveling abroad is another factor impeding the growth of the industry.

Comparative View of Adjacent Industries

In addition to the United States outbound tourism industry, analysis has been done on two other related industries. The industries by name are the India outbound tourism industry and the Japan outbound tourism industry.

Government initiatives to facilitate more international travel are helping the growth of outbound tourism in India. Social media influence is also fueling the desire for international travel among Indians.

Rising disposable income in Japan is enabling more Japanese people to engage in outbound tourism. Japanese people’s propensity to make frequent trips to nearby nations like the Philippines and South Korea is also benefitting the outbound tourism industry in Japan.

United States Outbound Tourism Industry:

India Outbound Tourism Industry:

Japan Outbound Tourism Industry:

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Category-wise Insights

Leisure travel is the overwhelming reason for outbound travel among american consumers.

Leisure travel is anticipated to account for 45.0% of the industry share in 2024. Some of the reasons it is the top reason for outbound tourism are:

Rising disposable income among the American youth is seeing the young generation of the country more inclined towards taking luxurious holidays. Thus, leisure-based abroad trips are getting more extensive among American tourists.
Tourists are traveling abroad in the United States to immerse themselves entirely in the traditions of the locale they are visiting. Thus, the scope of leisure travel is increasing in the United States outbound tourism.

Families are the Predominant Configuration of Outbound Tourists from the United States

In 2024, families are expected to account for 44.3% of the industry share by tourist type. Some of the reasons families remain the predominant type of tourists are:

Tourist companies in the United States advertising attractive packages for group travel are seeing tourist units comprised of families travel abroad more.
Rising concerns with safety and comfort show that American consumers prefer taking trips with families over solo travel.

Competitive Landscape

Framing attractive packages and introducing discounts, offers, and more, is a common policy among players in the United States. Extensive trips spanning multiple countries are also being increasingly offered by these tour providers.

Butterfield & Robinson is one of the prominent players in the American outbound tourism landscape. The company is attracting consumers through its luxury tours. Other players are focused on partnerships and mergers to strengthen their position in the landscape.

Recent Developments

In July 2023, Brand USA hosted its first sales mission in Japan.
In 2019, LoungeBuddy, a platform that aims to ease access to lounges in airports, was acquired by American Express.

Key Coverage in the United States Outbound Tourism Industry Report

USA Overseas Tourism Industry Analysis
Growth Forecast of Traveling Abroad from the United States
USA Tourist Spending Overseas Assessment
USA Outbound Tourism Growth Report
Demand in the USA Outbound Tourism Industry
Industry Value of the USA Outbound Tourism

Scope of the Report

The united states outbound tourism industry by category, by purpose:.

VFR & Others

By Booking Channel:

Phone Booking
Online Booking
In Person Booking

By Tourism Type:

Cultural & Heritage Tourism
Medical Tourism
Eco/Sustainable Tourism
Sports Tourism
Wellness Tourism & Others

By Tourist Type:

Independent Traveller
Package Traveller

By Age Group:

15-25 Years
26-35 Years
36-45 Years
46-55 Years
66-75 Years

Frequently Asked Questions

What is the estimated industry value for outbound tourism in the united states in 2024.

The United States outbound tourism demand value is estimated to be US$ 108.81 billion in 2024.

What is the Demand Forecast for Outbound Tourism Through 2034 in the United States?

Outbound tourism demand is expected to reach US$ 412.26 billion by the end of 2034 in the United States.

What is the United States Outlook for Outbound Tourism?

The United States is expected to register a CAGR of 14.2% over the forecast period.

What are the Key Trends for Outbound Tourism in the United States?

Undertaking tourist expeditions to escape worsening environmental conditions and the rising popularity of medical tourism are two of the trends related to outbound tourism in the United States.

What are the Prominent Companies for Outbound Tourism in the United States?

Butterfield & Robinson, Expedia Inc., Priceline Group, and America Express Global Business Travel are some of the prominent companies offering outbound tourism in The United States.

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Encyclopedia of Tourism pp 1–2 Cite as

Outbound tourism

Peiyi Ding 3 &
Shan Jiang 4
Living reference work entry
First Online: 01 January 2015

147 Accesses

1 Citations

Outbound tourism describes the phenomenon of residents traveling from one country to another (World Tourism Organization 1994 ). It does not comprise of goods and services acquired for or after the trip within the generating country. It may be contrasted with inbound, domestic, and border tourism . For example, from an Australian perspective, visitors from the United States are inbound tourists, while from the US standpoint, they are outbound tourists.

With rising levels of disposable income, however, many emerging economies have shown fast growth. In 2012, the world’s top five destinations were the United States, Spain , France , China , and Macao (China). Source markets are largely concentrated in the industrialized countries of Europe , the Americas , and Asia and the Pacific (UNWTO 2013 ). With regard to expenditure on outbound tourism, China has shown by far the fastest growth. With the 2012 surge, China leaped to first place (US$102 billion), overtaking both the longtime top spender Germany...

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Gholipour, F., and R. Tajaddini 2014 Cultural Dimensions and Outbound Tourism. Annals of Tourism Research 49:203-205.

Article Google Scholar

Pearce, D., and R. Butler 2010 Tourism Research: A 20-20 Vision. Oxford: Goodfellow.

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World Tourism Organization 1994 Recommendations on Tourism Statistics. New York: United Nations.

UNWTO 2013 UNWTO Tourism Highlights. Madrid: World Tourism Organization.

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Tourism Confucius Institute, Gold Coast Campus, Griffith University, Parkland Dr., 4215, Southport, Australia

Capital Normal University, Beijing, China

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Correspondence to Peiyi Ding .

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School of Hospitality Leadership, University of Wisconsin-Stout, Menomonie, Wisconsin, USA

Jafar Jafari

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, Hong Kong SAR

Honggen Xiao

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Ding, P., Jiang, S. (2015). Outbound tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_139-1

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DOI : https://doi.org/10.1007/978-3-319-01669-6_139-1

Received : 20 April 2015

Accepted : 20 April 2015

Published : 29 September 2015

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Outbound Tourism Market by Purpose Type (Business, Holiday/Leisure, VFR & Others) by Tourist Type (Domestic, International) by Tour Type (Independent Traveller, Package Traveller, Tour Group) and Region, Global trends and forecast from 2024 to 2030

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Segmentation Analysis
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REPORT OUTLOOK

Scope of the report, market overview.

The global Outbound Tourism market size is projected to grow from USD 16.89 billion in 2023 to USD 35.96 billion by 2030, exhibiting a CAGR of 11.4% during the forecast period.

Traveling beyond the borders of one’s own country is referred to as outbound tourism by citizens of that nation. Stated differently, it refers to people or organizations departing from their nation of origin for reasons of pleasure, travel, or other objectives. Vacations, business travel, family visits, and educational excursions are just a few of the many activities that fall under this category of tourism. Traveling abroad promotes economic development and cross-cultural exchange as individuals visit new places, and outbound tourism is a major part of this global industry. Travel encompasses a number of elements, including lodging, travel, and leisure pursuits, all of which support the growth and sustainability of the tourism industry worldwide. For destination nations and the travel industry to customize their products and services to the wide range of demands of outbound tourists, it is imperative that they comprehend outbound tourism trends and preferences.

Outbound Tourism Market | Exactitude Consultancy

Traveling abroad is important from an economic and cultural standpoint. By promoting international trade and creating income for different sectors, it plays a significant economic role in the expansion of the global tourism industry. Through spending on travel, lodging, food, and leisure activities, this type of tourism strengthens the economies of the nations it visits. Additionally, it promotes career prospects in the travel and hospitality industries. Furthermore, international travel encourages cross-cultural communication and mutual respect between various groups. Travelers promote peace and unity throughout the world by exposing themselves to various customs, ways of life, and viewpoints. Furthermore, the promotion of mutual respect, stereotype dismantling, and improved cross-cultural communication are all made possible by outbound tourism. A world that is richer and more interconnected is created through the ideas and experiences that are shared between outbound tourists and the communities they are visiting, creating a global community that is not limited by geography. All things considered, international cooperation, cultural enrichment, and economic growth can all be accelerated by outbound tourism.

Outbound Tourism Market Segmentation Analysis

The global Outbound Tourism market is bifurcated into two segments, by purpose type, tour type and region. By purpose type, the market is divided into business, holiday/leisure, VFR & others. By tour type, the market is bifurcated into Independent traveler, package traveler, tour group and region.

The tourism industry is divided into several segments based on the reasons for travel, such as business travel, vacation or leisure travel, visiting friends and relatives (VFR), and other purposes. People who travel for business purposes, such as conferences, meetings, or corporate events, are said to be engaged in business travel. It is essential to the development of international trade and economic ties. In the VFR segment, people are seen visiting friends and family, highlighting the importance of interpersonal relationships and familial ties as the main reasons people travel. Last but not least, the “others” category includes a variety of varied objectives, such as special interest travel, health tourism, and educational travel. Contrarily, holiday or leisure tourism includes travel for leisure activities like sightseeing and vacations, and it makes a substantial economic and cultural contribution to the tourism sector. The tourism sector can customize its offerings, advertising tactics, and facilities to match the specific requirements of every type of traveler by having a thorough understanding of these purpose-driven markets. Travelers’ preferences and expectations can be better met by stakeholders by acknowledging and addressing the variety of reasons they travel, which will ultimately support the expansion and sustainability of the global tourism industry.

The traveler market is segmented into three main categories based on the type of tour they take: independent travelers, package travelers, and tour groups. Individuals who travel independently organize and carry out their own travel plans, making their own arrangements for lodging, meals, and activities. This group frequently looks for a more flexible and customized travel experience that permits spontaneity and customized exploration. On the other hand, package travelers choose pre-made travel packages that are provided by travel companies or tour operators. Typically, these packages consist of lodging, transportation, and maybe activities or guided tours. Package travelers value the ease and simplicity of having planned most of their trip ahead of time, which often saves time and effort when it comes to preparation. Tour groups consist of tourists who sign up for scheduled group excursions that are run by tour operators or guides. This category places a strong emphasis on interpersonal communication and shared experiences. It offers a planned schedule and frequently incorporates group activities. People looking for a more guided and social travel experience will find tour groups appealing. The logistics are taken care of by experts, so travelers can concentrate on having fun with a like-minded group.

Outbound Tourism Market Dynamics

Economic prosperity plays a crucial role in driving outbound tourism.

Economic growth is a key factor driving outbound tourism, influencing travel habits as people’s and families’ financial situation improves. People find themselves with more discretionary income as economies grow and incomes rise, which naturally leads to a desire to spend money on vacation and leisure activities. People can now realize their dreams of traveling to new places, experiencing different cultures, and having fun thanks to this change in their financial situation. The way that rising living standards contribute to the democratization of travel is one clear indication of the relationship between economic prosperity and outbound tourism. What was once thought of as an indulgence for a privileged few becomes more widely available and essential to a wider range of people’s lifestyle options. Having more disposable income makes it easier to pay for travel-related costs like airfare, lodging, and meals, as well as enabling more interesting and varied travel experiences. Raising living standards affects travelers’ tastes and expectations in addition to promoting international travel. A move away from traditional vacationing toward a more sophisticated investigation of various cultures and their lifestyles is evident in people’s increased desire for unusual and culturally immersive experiences. When people prioritize their own development and well-being through their travels, their desire for enriching experiences becomes a determining factor in their travel decisions.

Rising travel costs, including airfare, accommodation, and other expenses, can act as a deterrent for potential outbound tourists.

Exorbitant airfares are a major obstacle to the outbound travel industry, discouraging prospective visitors and affecting their choice-making. The rise in travel expenses, which include airfare, lodging, and other related costs, can have a substantial effect on how affordable international travel experiences are. The overall increase in travel expenses is a result of economic factors such as inflation and rising operational costs in the travel industry. The rise in airfare is one of the main causes of rising travel expenses. Some segments of the potential outbound tourist market may find it more difficult to afford air travel due to fluctuating fuel prices, airline operating expenses, and other economic factors. The ripple effect also affects the cost of lodging, since hotels and other lodging facilities must modify their rates to cover rising operating costs while preserving profit margins. Apart from travel and accommodation, other travel-related expenses like food, entertainment, and local transportation might also go up. For individuals and families, the cumulative effect of growing costs can make travel financially taxing, which may cause them to reevaluate or postpone their plans. The perception of higher travel costs is further influenced by economic factors that affect the purchasing power of currencies, such as inflation. Traveling abroad becomes less attractive or feasible as living expenses rise and people’s disposable income does not go as far.

Opportunities

The demand for unique and immersive travel experiences continues to grow.

Experience travel is becoming more and more popular, which indicates that customers are choosing more customized and meaningful travel experiences. This is creating a lot of opportunities for the outbound tourism industry. There’s a growing demand for customized, real, and culturally enriching travel experiences as tourists look for more immersive and distinctive experiences than just sightseeing. One of the main chances is to meet this changing demand by providing travelers with specially selected travel experiences that speak to their unique interests and preferences. This could entail creating itineraries that incorporate local tours that offer insights into a destination’s cultural fabric and going beyond popular attractions. Travelers are drawn to experiences that provide a deeper understanding of the places they visit, such as guided walks through historic neighborhoods and hands-on activities with local artisans. Another essential component of experiential travel is culinary adventures. There are many opportunities for businesses to offer culinary experiences, like cooking classes, food tours, and dining at real local restaurants. Travelers prioritize their eating experiences because they want to fully immerse themselves in the local cuisine and stimulate their senses.

Outbound Tourism Market Trends

The outbound tourism market is still changing as a result of the emergence of digital technology. Social media, smartphone apps, and online booking sites are all essential for trip preparation—from choosing a destination to making hotel and airline reservations.

Tourists are looking for experiences that are genuine and one-of-a-kind. As an alternative to conventional sightseeing, there is a growing interest in adventure travel, cultural immersion, and off-the-beaten-path locations.

A growing interest in sustainable and responsible tourism practices is being displayed by tourists as they become more conscious of environmental and social issues. This involves minimizing the carbon footprint of travel, staying in eco-friendly lodging, and engaging in conservation-focused events.

More flexible travel arrangements are now possible thanks to the growth of remote work. These days, a lot of people mix work and play travel, which has given rise to “leisure” travel trends, which involve extending business trips for leisure travel.

The market for specialized travel experiences, such as wellness retreats, culinary tourism, and educational travel, is expanding. Tourists are searching for specialized and one-of-a-kind experiences that suit their interests.

Discovering new places that provide distinct cultural experiences, stunning scenery, and less crowds of tourists than well-known tourist destinations is becoming more and more popular among travelers.

The competitive landscape of the Outbound Tourism market was dynamic, with several prominent companies competing to provide innovative and advanced Outbound Tourism solutions.

Akbar Travels
BCD Travels
Booking Holding
Cox and Kings
Expedia Group
In Orbit Tours
MakeMyTrip Limited
Mercury Travels
Raj Travels
Thomas Cook
Travelmart India

Recent Developments:

December 5, 2023 — Expedia Group announced today a series of new and expanded travel partnerships across Europe, encompassing B2B technology, advertising partnerships and supply distribution deals, connecting European partners to the company’s extensive global traveller base and giving them access to Expedia Group’s innovative technology and industry expertise.

January 15,2024 – TUI Group continues its strong and strategic growth in Tours & Activities: Its digital platform TUI Musement was selected as the experiences partner by easyJet, one of Europe’s leading airlines.

In the market for outbound travel, the Asia-Pacific region was beginning to take center stage. Numerous factors can be attributed to this trend. The middle class is expanding and becoming more affluent as a result of the region’s rapid economic growth, particularly in countries like China and India. This rise in wealth has increased people’s desire to travel and experience the world. Furthermore, the development of efficient transportation infrastructure, which includes larger airline networks and improved connectivity, has made it easier for residents of the Asia-Pacific region to travel outside of their borders.

Particularly in China, outbound tourism has increased dramatically, with millions of Chinese tourists visiting places across the globe. The region’s dominance in the outbound tourism market can be attributed to a number of factors, including the desire for varied experiences, exposure to various cultures, and a growing interest in luxury and immersive travel. The influence of digital platforms that facilitate travel planning and booking, in addition to favorable government policies and initiatives to promote outbound tourism, have further propelled the growth of the Asia-Pacific outbound tourism market.

Target Audience for Outbound Tourism Market

Business Travelers
Leisure Travelers
Adventure Travelers
Cultural and Heritage Tourists
Luxury Travelers
Retirees and Seniors
Group Travelers

Segments Covered in the Outbound Tourism Market Report

Outbound Tourism Market by Purpose Type

Holiday/Leisure

Outbound Tourism Market by Tour Type

Independent Traveler
Package Traveler

Outbound Tourism Market by Tourist Type

International

Outbound Tourism Market by Region

North America
Asia Pacific
South America
Middle East and Africa
What is the expected growth rate of the Outbound Tourism market over the next 7 years?
Who are the key market participants in Outbound Tourism, and what are their market share?
What are the end-user industries driving market demand and what is their outlook?
What are the opportunities for growth in emerging markets such as Asia-Pacific, the Middle East, and Africa?
How is the economic environment affecting the Outbound Tourism market, including factors such as interest rates, inflation, and exchange rates?
What is the expected impact of government policies and regulations on the Outbound Tourism market?
What is the current and forecasted size and growth rate of the global Outbound Tourism market?
What are the key drivers of growth in the Outbound Tourism market?
Who are the major players in the market and what is their market share?
What are the distribution channels and supply chain dynamics in the Outbound Tourism market?
What are the technological advancements and innovations in the Outbound Tourism market and their impact on product development and growth?
What are the regulatory considerations and their impact on the market?
What are the challenges faced by players in the Outbound Tourism market and how are they addressing these challenges?
What are the opportunities for growth and expansion in the Outbound Tourism market?
What are the product offerings and specifications of leading players in the market?
MARKET DEFINITION
MARKET SEGMENTATION
RESEARCH TIMELINES
ASSUMPTIONS AND LIMITATIONS
SECONDARY RESEARCH
PRIMARY RESEARCH
SUBJECT-MATTER EXPERTS’ ADVICE
FINAL REVIEW
BOTTOM-UP APPROACH
TOP-DOWN APPROACH
RESEARCH FLOW
DATA SOURCES
EXECUTIVE SUMMARY
MARKET DRIVERS
MARKET RESTRAINTS
MARKET OPPORTUNITIES
IMPACT OF COVID-19 ON THE OUTBOUND TOURISM MARKET
THREAT FROM NEW ENTRANTS
THREAT FROM SUBSTITUTES
BARGAINING POWER OF SUPPLIERS
BARGAINING POWER OF CUSTOMERS
DEGREE OF COMPETITION
INDUSTRY VALUE CHAIN ANALYSIS
HOLIDAY/LEISURE
INDEPENDENT TRAVELER
PACKAGE TRAVELER
INTERNATIONAL
REST OF SOUTH AMERICA
REST OF EUROPE
SOUTH KOREA
SOUTH-EAST ASIA
REST OF ASIA PACIFIC
SAUDI ARABIA
SOUTH AFRICA
REST OF MIDDLE EAST AND AFRICA
COMPANY PROFILES*

(BUSINESS OVERVIEW, COMPANY SNAPSHOT, PRODUCTS OFFERED, RECENT DEVELOPMENTS)

AKBAR TRAVELS
BCD TRAVELS
BOOKING HOLDING
COX AND KINGS
EXPEDIA GROUP
IN ORBIT TOURS
MAKEMYTRIP LIMITED
MERCURY TRAVELS
RAJ TRAVELS
THOMAS COOK
TRAVELMART INDIA
TUI GROUP *THE COMPANY LIST IS INDICATIVE

LIST OF TABLES

TABLE 1 GLOBAL OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 2 GLOBAL OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 3 GLOBAL OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 4 GLOBAL OUTBOUND TOURISM MARKET BY REGION (USD BILLION) 2020-2030

TABLE 5 NORTH AMERICA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 6 NORTH AMERICA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 7 NORTH AMERICA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 8 NORTH AMERICA OUTBOUND TOURISM MARKET BY COUNTRY (USD BILLION) 2020-2030

TABLE 9 US OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 10 US OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 11 US OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 12 CANADA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 13 CANADA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 14 CANADA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 15 MEXICO OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 16 MEXICO OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 17 MEXICO OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 18 SOUTH AMERICA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 19 SOUTH AMERICA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 20 SOUTH AMERICA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 21 SOUTH AMERICA OUTBOUND TOURISM MARKET BY COUNTRY (USD BILLION) 2020-2030

TABLE 22 BRAZIL OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 23 BRAZIL OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 24 BRAZIL OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 25 ARGENTINA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 26 ARGENTINA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 27 ARGENTINA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 28 COLOMBIA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 29 COLOMBIA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 30 COLOMBIA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 31 REST OF SOUTH AMERICA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 32 REST OF SOUTH AMERICA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 33 REST OF SOUTH AMERICA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 34 ASIA-PACIFIC OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 35 ASIA-PACIFIC OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 36 ASIA-PACIFIC OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 37 ASIA-PACIFIC OUTBOUND TOURISM MARKET BY COUNTRY (USD BILLION) 2020-2030

TABLE 38 INDIA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 39 INDIA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 40 INDIA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 41 CHINA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 42 CHINA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 43 CHINA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 44 JAPAN OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 45 JAPAN OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 46 JAPAN OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 47 SOUTH KOREA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 48 SOUTH KOREA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 49 SOUTH KOREA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 50 AUSTRALIA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 51 AUSTRALIA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 52 AUSTRALIA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 53 SOUTH-EAST ASIA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 54 SOUTH-EAST ASIA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 55 SOUTH-EAST ASIA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 56 REST OF ASIA PACIFIC OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 57 REST OF ASIA PACIFIC OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 58 REST OF ASIA PACIFIC OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 59 EUROPE OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 60 EUROPE OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 61 EUROPE OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 62 EUROPE OUTBOUND TOURISM MARKET BY COUNTRY (USD BILLION) 2020-2030

TABLE 63 GERMANY OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 64 GERMANY OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 65 GERMANY OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 66 UK OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 67 UK OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 68 UK OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 69 FRANCE OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 70 FRANCE OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 71 FRANCE OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 72 ITALY OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 73 ITALY OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 74 ITALY OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 75 SPAIN OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 76 SPAIN OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 77 SPAIN OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 78 RUSSIA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 79 RUSSIA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 80 RUSSIA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 81 REST OF EUROPE OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 82 REST OF EUROPE OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 83 REST OF EUROPE OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 84 MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 85 MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 86 MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 87 MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY COUNTRY (USD BILLION) 2020-2030

TABLE 88 UAE OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 89 UAE OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 90 UAE OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 91 SAUDI ARABIA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 92 SAUDI ARABIA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 93 SAUDI ARABIA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 94 SOUTH AFRICA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 95 SOUTH AFRICA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 96 SOUTH AFRICA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

TABLE 97 REST OF MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY PURPOSE TYPE (USD BILLION) 2020-2030

TABLE 98 REST OF MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY TOUR TYPE (USD BILLION) 2020-2030

TABLE 99 REST OF MIDDLE EAST AND AFRICA OUTBOUND TOURISM MARKET BY TOURIST TYPE (USD BILLION) 2020-2030

LIST OF FIGURES

FIGURE 1 MARKET DYNAMICS

FIGURE 2 MARKET SEGMENTATION

FIGURE 3 REPORT TIMELINES: YEARS CONSIDERED

FIGURE 4 DATA TRIANGULATION

FIGURE 5 BOTTOM-UP APPROACH

FIGURE 6 TOP-DOWN APPROACH

FIGURE 7 RESEARCH FLOW

FIGURE 8 GLOBAL OUTBOUND TOURISM MARKET BY PURPOSE TYPE, USD BILLION, 2020-2030

FIGURE 9 GLOBAL OUTBOUND TOURISM MARKET BY TOUR TYPE, USD BILLION, 2020-2030

FIGURE 10 GLOBAL OUTBOUND TOURISM MARKET BY TOURIST TYPE, USD BILLION, 2020-2030

FIGURE 11 GLOBAL OUTBOUND TOURISM MARKET BY REGION, USD BILLION, 2020-2030

FIGURE 12 PORTER’S FIVE FORCES MODEL

FIGURE 13 GLOBAL OUTBOUND TOURISM MARKET BY PURPOSE TYPE, USD BILLION, 2022

FIGURE 14 GLOBAL OUTBOUND TOURISM MARKET BY TOUR TYPE, USD BILLION, 2022

FIGURE 15 GLOBAL OUTBOUND TOURISM MARKET BY TOURIST TYPE, USD BILLION, 2022

FIGURE 16 GLOBAL OUTBOUND TOURISM MARKET BY REGION, USD BILLION, 2022

FIGURE 17 MARKET SHARE ANALYSIS

FIGURE 18 AKBAR TRAVELS: COMPANY SNAPSHOT

FIGURE 19 AMADEUS: COMPANY SNAPSHOT

FIGURE 20 BCD TRAVELS: COMPANY SNAPSHOT

FIGURE 21 BOOKING HOLDING: COMPANY SNAPSHOT

FIGURE 22 BTI SITA: COMPANY SNAPSHOT

FIGURE 23 COX AND KINGS: COMPANY SNAPSHOT

FIGURE 24 EXPEDIA GROUP: COMPANY SNAPSHOT

FIGURE 25 GOLD CHIP: COMPANY SNAPSHOT

FIGURE 26 IN ORBIT TOURS: COMPANY SNAPSHOT

FIGURE 27 KESARI: COMPANY SNAPSHOT

FIGURE 28 MAKEMYTRIP LIMITED: COMPANY SNAPSHOT

FIGURE 29 MERCURY TRAVELS: COMPANY SNAPSHOT

FIGURE 30 ORBIT: COMPANY SNAPSHOT

FIGURE 31 RAJ TRAVELS: COMPANY SNAPSHOT

FIGURE 32 SOTC KUONI: COMPANY SNAPSHOT

FIGURE 33 TCI: COMPANY SNAPSHOT

FIGURE 34 THOMAS COOK: COMPANY SNAPSHOT

FIGURE 35 TRAVELMART INDIA: COMPANY SNAPSHOT

FIGURE 36 TUI GROUP: COMPANY SNAPSHOT

Asia Pacific accounted for the largest market in the Outbound Tourism market.

Akbar Travels;Amadeus;BCD Travels;Booking Holding;BTI Sita;Cox and Kings;Expedia Group;Gold Chip;In Orbit Tours;Kesari;MakeMyTrip Limited;Mercury Travels;Orbit;Raj Travels;SOTC Kuoni;TCI;Thomas Cook;Travelmart India;TUI Group.

Offering individualized and adaptable travel experiences is the main focus of tour operators and travel companies. Customizing itineraries to each traveler’s interests and preferences is turning into a crucial business tactic.

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Travel Tips

What Is Outbound Tourism

Published: December 12, 2023

Modified: December 28, 2023

by Minne Rosenthal

Plan Your Trip
Sustainability
Travel Essentials & Accessories

Overview of Outbound Tourism

Outbound tourism refers to the phenomenon of people traveling from their home country to other countries for various purposes, such as leisure, business, education, or healthcare. It is a key component of the global travel industry and has experienced significant growth in recent years.

With the increasing affluence of societies, improved transportation systems, and easier access to information, the number of outbound tourists has been steadily increasing. This trend has transformed the way people view travel, turning it from a luxury to a regular part of life for many individuals.

One of the primary motivations for outbound travel is the desire to explore new cultures, see iconic landmarks, and experience different lifestyles. People are drawn to the opportunity to broaden their horizons, gain new perspectives, and create lasting memories. Whether it’s standing in awe of the Eiffel Tower in Paris, immersing oneself in the vibrant streets of Tokyo, or relaxing on the picturesque beaches of Bali, outbound travel offers a chance to escape the routine and discover the wonders of the world.

Moreover, outbound tourism plays a vital role in fostering international cooperation and understanding. By engaging with diverse cultures and interacting with local communities, travelers can gain a deeper appreciation for global interconnectedness and promote a sense of unity among nations.

In addition to personal benefits, outbound tourism also contributes significantly to the economy of both the home and destination countries. It creates employment opportunities in various sectors such as transportation, accommodation, food and beverage, and entertainment. The influx of tourist spending also boosts local businesses, stimulates economic growth, and encourages infrastructure development.

Despite the numerous advantages of outbound tourism, it does present some challenges. Managing the environmental impact of increased travel, ensuring the safety and security of tourists, and addressing concerns related to overcrowding in popular tourist destinations are among the key issues that need to be addressed. It is essential to adopt sustainable practices, promote responsible travel, and strike a balance between economic development and conservation efforts.

In summary, outbound tourism has become an integral part of modern society. It offers individuals the chance to explore new cultures, broaden their horizons, and create lifelong memories. It also plays a significant role in economic development and cultural exchange. However, it is crucial to manage its impacts and promote sustainable practices to ensure the long-term sustainability of the global travel industry.

Definition of Outbound Tourism

Outbound tourism is a term used to describe the act of traveling from one’s home country to visit another country for various purposes, including leisure, business, education, or healthcare. It is essentially the opposite of inbound tourism, which refers to visitors coming into a country from abroad.

Outbound tourists are individuals who leave their home country with the intention of visiting and staying in another country for a specific period. These travelers seek experiences beyond their familiar surroundings, exploring different cultures, historical landmarks, natural wonders, and engaging in a range of activities that are unique to the destination they choose to visit.

The concept of outbound tourism has evolved over time due to advancements in transportation and the integration of technology. In the past, traveling to other countries was often viewed as a luxury reserved for the elite or experienced travelers. However, with the rise of affordable air travel, improved travel infrastructure, and the widespread accessibility of information through the internet, outbound tourism has become more accessible and popular among a wider range of people.

Outbound tourism can take various forms depending on the purpose and duration of the trip. For example, leisure tourism involves traveling for relaxation and enjoyment, while business tourism encompasses travel for professional purposes such as attending conferences, meetings, or negotiating business deals. Educational tourism refers to trips undertaken to broaden one’s knowledge through studying abroad or participating in workshops or training programs. Additionally, medical tourism has emerged as a significant category, with individuals traveling abroad to seek specialized medical treatments or procedures.

Outbound tourism is driven by various factors, including personal interests, curiosity, the desire for personal growth, and the need to build connections with people from different cultures. Improved living standards, rising disposable incomes, and the availability of travel incentives and discounts also contribute to the growth of outbound tourism.

Global tourism organizations and governments recognize the importance of outbound tourism in fostering cultural exchange, economic development, and diplomatic relations between countries. Efforts are being made to promote international cooperation, simplify travel procedures, and ensure the safety and well-being of outbound tourists.

Overall, outbound tourism reflects the human desire to explore, learn, and connect with the wider world. It offers individuals the opportunity to experience different cultures, broaden their horizons, and create lasting memories. As the world becomes more interconnected, outbound tourism is expected to continue its growth trajectory, playing a significant role in the global travel industry.

Importance of Outbound Tourism

Outbound tourism holds immense importance in both personal and global contexts. It enriches individuals’ lives by providing opportunities for exploration, cultural immersion, personal growth, and relaxation. Additionally, it plays a vital role in economic development, job creation, and international relations. Here, we delve into the key reasons why outbound tourism is significant.

First and foremost, outbound tourism allows individuals to expand their horizons and experience different cultures. Traveling to other countries exposes tourists to new languages, customs, traditions, and ways of life. This exposure fosters understanding, empathy, and tolerance, breaking down stereotypes and promoting cultural exchange. It enables individuals to gain a broader perspective of the world, appreciate diversity, and develop a sense of global interconnectedness.

Furthermore, outbound tourism is an essential driver of economic growth. It stimulates various sectors such as transportation, accommodation, food and beverage, entertainment, and retail. The income generated from outbound travelers contributes to the local economies of destination countries, creating jobs and generating tax revenue. This infusion of money also encourages investment in infrastructure development, benefiting both locals and future tourists.

In addition to economic impacts, outbound tourism plays a crucial role in international relations. It fosters diplomacy, encourages bilateral cooperation, and builds bridges between nations. Through personal interactions with people from different countries, stereotypes can be dismantled, cultural misunderstandings can be overcome, and mutual respect can be fostered. Such interpersonal connections facilitate diplomatic discussions, trade partnerships, cultural collaborations, and ultimately contribute to a more peaceful and interconnected world.

Outbound tourism also benefits the environment and wildlife conservation efforts. Responsible travelers prioritize eco-friendly practices, support sustainable tourism initiatives, and contribute to the preservation of natural resources and biodiversity. Moreover, the demand for sustainable practices in the travel industry encourages stakeholders to adopt environmentally friendly policies, reducing carbon footprints and promoting conservation efforts.

From a personal perspective, outbound tourism provides individuals with a break from their daily routine, reducing stress levels and promoting mental well-being. It offers opportunities for personal growth, self-discovery, and self-reflection. Travelers can gain new skills, overcome challenges, and cultivate a sense of confidence and independence.

In summary, outbound tourism is of great importance for both individuals and society as a whole. It broadens horizons, promotes cultural understanding, drives economic growth, fosters international cooperation, and contributes to personal well-being. As the world becomes increasingly interconnected, the significance of outbound tourism is expected to grow, encouraging individuals to explore and embrace the wonders of the global community.

Factors Influencing Outbound Tourism

Outbound tourism is influenced by a variety of factors that shape travel preferences, behavior, and decision-making. Understanding these factors is crucial for travel industry stakeholders, governments, and marketers to effectively cater to the needs and desires of outbound tourists. Here, we highlight some key factors that influence outbound tourism.

1. Economic Factors: The economic stability and prosperity of a country play a significant role in shaping outbound tourism. As individuals’ disposable incomes rise, they have more financial resources to allocate towards leisure travel. Economic factors such as GDP per capita, employment rates, and exchange rates influence people’s ability to afford international travel and impacts their spending patterns during their trips.

2. Destinations and Attractions: The availability and appeal of tourist destinations and attractions greatly influence outbound tourist flows. People are drawn to iconic landmarks, natural wonders, historical sites, cultural events, and unique experiences that different countries offer. The perceived safety, ease of travel, and accessibility of a destination also impact the decision to choose a particular location.

3. Travel Infrastructure: The quality and efficiency of travel infrastructure, including transportation systems (such as airports, airlines, and railways), accommodation options (such as hotels, resorts, and vacation rentals), and connectivity (such as internet and mobile networks), significantly impact outbound tourism. Well-developed infrastructure ensures smooth travel experiences and enhances the overall satisfaction of travelers.

4. Demographic Factors: Demographic characteristics, such as age, income level, and family composition, play a role in outbound tourism. Younger individuals and a growing middle class tend to have more disposable income and a desire for adventure, contributing to increased travel. Family dynamics and the presence of children can influence destination choices and the types of activities that families engage in during their trips.

5. Technological Advancements: The rapid advancements in technology have had a profound impact on outbound tourism. The widespread availability of the internet, social media platforms, and travel apps has made it easier for individuals to research, plan, and book their trips. Online travel agencies, price comparison websites, and user-generated content have revolutionized the way people make travel decisions, increasing the convenience and accessibility of travel information.

6. Cultural and Social Factors: Cultural and social factors influence outbound tourism by shaping individual preferences and motivations. People may be influenced by their social networks, including friends, family, and colleagues, who share their travel experiences and recommendations. Cultural events, festivals, and trends play a role in driving tourism to specific destinations, as travelers seek to immerse themselves in local traditions and experiences.

7. Government Policies: Government policies and regulations can both facilitate or impede outbound tourism. Visa restrictions, safety advisories, travel advisories, and tax policies can affect the decision to travel to specific destinations. Governments that actively promote tourism, provide financial incentives, and ensure safety and security often experience higher outbound tourist numbers.

8. Marketing and Promotional Efforts: Effective marketing and promotional activities can significantly influence outbound tourism. Destination branding, advertising campaigns, targeted messaging, and travel incentives can impact people’s perceptions of a destination and influence their travel choices. Collaborative efforts between tourism boards, airlines, travel agencies, and hospitality businesses are often employed to attract outbound tourists.

In summary, outbound tourism is influenced by a complex interplay of economic, cultural, technological, and demographic factors. Understanding these influences is crucial for destinations and stakeholders in the travel industry to attract, cater to, and meet the evolving preferences and needs of outbound tourists.

Benefits and Challenges of Outbound Tourism

Outbound tourism brings a range of benefits to individuals, communities, and economies. However, it also poses certain challenges that need to be addressed for sustainable and responsible tourism practices. Here, we explore the benefits as well as the challenges of outbound tourism.

Benefits of Outbound Tourism:

1. Economic Growth: Outbound tourism contributes to economic growth by generating revenue and creating employment opportunities in various sectors such as transportation, accommodation, food and beverage, entertainment, and retail. The influx of tourist spending stimulates local businesses, encourages infrastructure development, and boosts the overall economy of both the home country and the destination.

2. Cultural Exchange: Outbound tourism promotes cultural exchange by providing individuals with the opportunity to explore and engage with diverse cultures, traditions, and ways of life. Travelers can gain a deeper understanding and appreciation for different customs, values, and perspectives, breaking down stereotypes and promoting global interconnectedness.

3. Personal Enrichment: Outbound tourism offers individuals the chance to broaden their horizons, learn new languages, develop cross-cultural communication skills, and gain a more profound understanding of the world. It provides opportunities for personal growth, self-discovery, and self-reflection.

4. Environmental Conservation: Outbound tourism can support environmental conservation efforts by promoting responsible and sustainable travel practices. Travelers who prioritize eco-friendly options and engage in activities that protect natural resources and wildlife contribute to the preservation of fragile ecosystems.

Challenges of Outbound Tourism:

1. Environmental Impact: The increase in outbound tourism has led to environmental challenges, such as pollution, resource depletion, and the degradation of natural sites. Managing the carbon footprint of transportation and implementing sustainable practices in accommodation and tourist activities are vital for minimizing the negative impact on the environment.

2. Overtourism: Popular tourist destinations are often overcrowded, leading to issues such as damage to infrastructure, strain on local resources, cultural commodification, increased waste, and loss of authenticity. Balancing tourism growth with the carrying capacity of destinations and promoting alternative destinations can help alleviate the pressures of overtourism.

3. Sociocultural Impact: The influx of tourists can impact local communities by altering social dynamics, traditions, and livelihoods. It is essential to respect local cultures, promote responsible behavior, and ensure that the benefits of tourism are distributed equitably among the local population.

4. Safety and Security: Ensuring the safety and security of outbound tourists is of utmost importance. Travelers may face risks such as theft, scams, natural disasters, or political unrest. Governments and tourism stakeholders must take measures to provide accurate information, enhance safety protocols, and establish effective communication channels to address emergencies.

5. Economic Leakage: In some cases, a significant portion of the revenue generated by outbound tourism can leak out of the local economy. This happens when international tour operators, foreign-owned hotels, or multinational corporations benefit more from tourism than local businesses. Promoting entrepreneurship and local ownership in the tourism industry can help address this issue.

It is crucial for destination management organizations, governments, and travelers themselves to address these challenges and implement sustainable practices. By doing so, outbound tourism can continue to bring economic, cultural, and personal benefits without compromising the natural environment, local communities, and unique identities of destinations.

Popular Destinations for Outbound Tourists

Outbound tourism offers individuals a wide variety of destinations to explore, each with its own unique attractions and experiences. From bustling cities to serene beaches, natural wonders to historical sites, the options are endless. Here, we highlight some of the most popular destinations for outbound tourists.

1. Europe: Europe attracts millions of outbound tourists each year, offering a rich blend of cultural heritage, historic landmarks, and picturesque landscapes. Destinations like Paris with the Eiffel Tower, Rome with the Colosseum, and Barcelona with the Sagrada Familia are perennial favorites. European cities, with their cobblestone streets, medieval architecture, and vibrant café culture, entice travelers seeking an immersive cultural experience.

2. Southeast Asia: Southeast Asia is a hotspot for outbound tourists, with countries such as Thailand, Vietnam, Indonesia, and Malaysia offering a mix of vibrant cities and breathtaking natural landscapes. The allure of beautiful beaches, ancient temples, exotic cuisine, and warm hospitality makes this region a top choice for leisure travelers seeking relaxation and adventure.

3. United States: The United States is a diverse destination that attracts outbound tourists with its iconic cityscapes, natural wonders, and world-famous attractions. New York City, Los Angeles, San Francisco, and Las Vegas offer a vibrant urban experience, while national parks like Yellowstone, the Grand Canyon, and Yosemite captivate nature enthusiasts.

4. Australia and New Zealand: Australia and New Zealand are renowned for their stunning landscapes, unique wildlife, and outdoor adventures. From the Great Barrier Reef in Australia to Milford Sound in New Zealand, these countries offer a perfect blend of natural beauty and cultural experiences.

5. East Asia: East Asian countries such as Japan, China, and South Korea are popular destinations for their rich history, traditions, modern innovation, and captivating landscapes. Travelers are drawn to the bustling streets of Tokyo, the ancient Great Wall of China, and the vibrant K-pop culture that attracts music and entertainment enthusiasts.

6. Africa: Africa’s diverse landscapes, wildlife, and cultural richness make it an exciting destination for outbound tourists seeking unique experiences. Safari adventures in countries like Kenya, Tanzania, and South Africa, along with iconic landmarks such as Egypt’s ancient pyramids, draw visitors from around the world.

7. Caribbean and Latin America: The Caribbean and Latin American countries offer a mix of stunning beaches, vibrant culture, and historical sites. Destinations like Mexico, Brazil, Jamaica, and the Dominican Republic attract travelers seeking relaxation, water sports, and the charm of Caribbean and Latin American heritage.

8. Middle East: Middle Eastern destinations like the United Arab Emirates, Qatar, and Oman are known for their futuristic architecture, luxury shopping, and rich traditions. Cities like Dubai and Abu Dhabi have become global tourism hubs, offering a blend of modernity and Arabian culture.

These are just a few examples of the popular destinations for outbound tourists. Each destination has its own unique appeal, ranging from cultural attractions to natural wonders, historical landmarks to modern metropolises. The choices are endless, ensuring that travelers have a wide range of options to curate their ideal travel experiences.

Trends in Outbound Tourism

Outbound tourism has witnessed several trends in recent years, driven by changing consumer behaviors, advancements in technology, and evolving global travel preferences. These trends shape the way people plan, experience, and engage with outbound travel. Here, we explore some of the significant trends in outbound tourism.

1. Rise of Experiential Travel: Travelers are increasingly seeking authentic and experiential travel experiences. They want to immerse themselves in the local culture, engage with communities, and participate in meaningful activities. This trend has led to the growth of activities such as culinary tours, responsible tourism initiatives, volunteer programs, and cultural exchanges.

2. Focus on Sustainable Tourism: Travelers are becoming more conscious of the environmental and social impact of their travel choices. There is a growing demand for sustainable tourism practices, including eco-friendly accommodations, responsible wildlife tourism, carbon-neutral travel options, and support for local communities. This trend highlights the importance of preserving destinations for future generations.

3. Digital Transformation: Technology has revolutionized how people plan, book, and share their travel experiences. The rise of online platforms, mobile apps, and social media has made travel information more accessible, allowing travelers to research and book their trips with ease. Social media platforms have also become influential in shaping travel trends, with travelers seeking Instagrammable destinations and unique photo opportunities.

4. Multi-destination Trips: Travelers are increasingly opting for multi-destination trips, combining visits to multiple countries or cities within the same trip. This trend allows travelers to maximize their time and explore diverse destinations in a single journey. It is often facilitated by improved transportation networks, such as low-cost airlines and high-speed rail connections.

5. Niche and Adventure Tourism: Niche tourism segments, such as adventure tourism, wellness tourism, and cultural tourism, have seen significant growth. Travelers seeking unique experiences are now opting for activities like hiking, diving, wildlife safaris, yoga retreats, and cultural immersions. This trend reflects the desire for personal enrichment and the pursuit of new and transformative experiences.

6. Solo Travel: Solo travel has become increasingly popular, with more individuals choosing to embark on journeys alone. This trend reflects the desire for independence, self-discovery, and the freedom to tailor the travel experience to individual preferences. It has led to the emergence of solo-friendly destinations and services that cater specifically to solo travelers.

7. Medical and Wellness Tourism: The demand for medical and wellness tourism has grown significantly. Travelers seek destinations that offer high-quality healthcare services, specialized medical treatments, and wellness retreats to improve their physical and mental well-being. This trend is driven by the desire for advanced medical treatments, alternative therapies, and holistic wellness experiences.

8. Slow Travel: Slow travel advocates for a more relaxed and immersive travel experience, where travelers spend more time in a single destination, exploring it thoroughly and connecting with the local culture. This trend promotes a deeper understanding of a place, sustainable tourism practices, and a more meaningful travel experience.

These trends in outbound tourism reflect the changing preferences and priorities of travelers worldwide. The industry continues to evolve, and travelers can expect more personalized, conscious, and immersive travel experiences in the future.

Outbound Tourism and its Economic Impacts

Outbound tourism has significant economic impacts on both the home and destination countries. It generates revenue, creates employment opportunities, stimulates economic growth, and contributes to the overall development of the tourism industry and related sectors. Here, we explore the economic impacts of outbound tourism.

1. Revenue Generation: Outbound tourism is a major source of revenue for both the home and destination countries. Outbound tourists spend money on transportation, accommodation, food and beverage, shopping, entertainment, and other tourist-related activities. This influx of spending contributes directly to the local economies of the destination countries, supporting local businesses and generating tax revenue. In the home country, outbound tourism can also contribute to foreign exchange earnings, as tourists convert their currency to the currency of the destination country.

2. Employment Opportunities: Outbound tourism creates employment opportunities in various sectors of the economy. The growth of outbound tourism leads to increased demand for transportation services, such as airlines, cruise lines, and travel agencies. Accommodation providers such as hotels, resorts, and vacation rentals also benefit from the influx of outbound tourists. Furthermore, restaurants, cafes, tour operators, souvenir shops, and other sectors of the tourism industry experience increased business, resulting in job creation and economic stability.

3. Economic Multiplication Effect: Outbound tourism has a multiplying effect on the economy. The spending by tourists creates a ripple effect throughout the local economy, as the businesses that receive tourist spending, in turn, spend on goods and services provided by other local businesses. This multiplier effect stimulates economic activity beyond the tourism sector, contributing to overall economic growth and development.

4. Infrastructure Development: The growth of outbound tourism often leads to infrastructure development in both the home and destination countries. Governments recognize the economic benefits of tourism and invest in improving transportation networks, enhancing airports, upgrading roads and highways, expanding hospitality infrastructure, and establishing tourism-related amenities. These infrastructure developments not only benefit the tourism industry but also improve the overall quality of life for residents, attracting further investment and contributing to regional development.

5. Promotion of Small and Medium Enterprises (SMEs): Outbound tourism provides opportunities for Small and Medium Enterprises (SMEs) to participate in the tourism value chain. Locally-owned guesthouses, family-run restaurants, independent tour operators, and artisanal shops can benefit from the patronage of outbound tourists. This helps to distribute the economic benefits of tourism more equitably, supporting local entrepreneurship, and fostering sustainable economic growth in communities.

6. Contribution to Trade Balance: Outbound tourism can have a positive impact on a country’s trade balance. When outbound tourists spend money in the destination country, it helps to offset the outflow of funds for imported goods and services. The revenue generated from outbound tourism can help to balance the trade deficit and strengthen the country’s economic position.

In summary, outbound tourism has significant economic impacts, with the potential to drive revenue generation, create employment opportunities, stimulate economic growth, and contribute to infrastructure development. However, it is important to manage these economic impacts responsibly, ensuring that the benefits are distributed equitably, and that the negative effects, such as environmental degradation and economic leakage, are minimized through sustainable practices.

Outbound Tourism and Cultural Exchange

Outbound tourism plays a pivotal role in fostering cultural exchange between tourists and the local communities they visit. It provides a platform for people from different cultures and backgrounds to come together, share experiences, and learn from one another. Here, we delve into the significance of outbound tourism in promoting cultural exchange.

1. Exposure to Different Cultures: Outbound tourism exposes individuals to diverse cultures, traditions, customs, and ways of life. Through direct interactions with locals, tourists gain insights into the unique aspects of the destination’s culture, such as language, art, music, dance, food, and religious practices. This exposure broadens their understanding, tolerance, and appreciation for cultural diversity, ultimately promoting a more inclusive and understanding society.

2. Cultural Immersion: Outbound tourists have the opportunity to immerse themselves in the local culture during their travels. They can participate in local traditions, festivals, and events, providing them with a firsthand experience of the destination’s cultural heritage. This immersion fosters empathy, respect, and a deeper connection with the local community.

3. Exchange of Ideas and Perspectives: Outbound tourism encourages the exchange of ideas and perspectives between tourists and locals. Through interactions, conversations, and shared experiences, both parties have the opportunity to challenge stereotypes, break down cultural barriers, and gain a broader worldview. This exchange of knowledge fosters mutual understanding and can lead to personal and societal growth.

4. Learning Opportunities: Outbound tourism provides valuable learning opportunities for tourists to understand different cultures. They can engage in activities such as cooking classes, language lessons, traditional craft workshops, or visits to historical sites and museums. These experiences enable tourists to gain a deeper appreciation for the destination’s cultural heritage, history, and contributions to the world.

5. Preservation of Cultural Heritage: Outbound tourism can contribute to the preservation and revitalization of cultural heritage. As tourists show interest in visiting historical sites, traditional villages, or cultural landmarks, local communities are encouraged to preserve and maintain their heritage for future generations. This helps to safeguard cultural assets, traditions, and practices that might otherwise be at risk of disappearing.

6. Building Bridges and Breaking Stereotypes: Outbound tourism has the power to build bridges between nations and break down stereotypes. When individuals from different countries interact and engage in meaningful exchanges, they gain firsthand experiences that challenge preconceived notions and stereotypes. This helps to foster goodwill, mutual respect, and long-lasting connections between people from different cultures.

7. Mutual Benefits: Cultural exchange through outbound tourism brings benefits to both tourists and host communities. Tourists gain a deeper understanding of the world, develop cross-cultural communication skills, and return home with a broader perspective. Local communities benefit from economic opportunities, preservation of cultural traditions, and the enrichment of their own cultural experiences through interactions with tourists.

In summary, outbound tourism facilitates cultural exchange, promotes understanding, and builds bridges between individuals from different cultures. It exposes tourists to diverse cultural experiences, challenges stereotypes, fosters empathy, and contributes to the preservation of cultural heritage. Through these interactions, outbound tourism plays a crucial role in promoting a more interconnected and harmonious global society.

Sustainable Practices in Outbound Tourism

Sustainable practices in outbound tourism aim to minimize the negative impact of travel on the environment, preserve cultural heritage, and promote responsible and ethical tourism. As the tourism industry continues to grow, it is crucial to adopt sustainable practices to ensure the long-term viability of destinations and the well-being of host communities. Here, we highlight some key sustainable practices in outbound tourism.

1. Reduce Carbon Footprint: One of the primary goals of sustainable tourism is to reduce the carbon footprint of travel. This can be achieved by opting for eco-friendly transportation options, such as using public transport or choosing airlines that prioritize fuel efficiency and carbon offset programs. Travelers can also minimize their environmental impact by participating in carbon offset initiatives and supporting renewable energy projects.

2. Support Local Communities: Sustainable tourism practices emphasize supporting local communities and reducing economic leakage. Travelers can achieve this by staying in locally-owned accommodations, eating at local restaurants, and purchasing locally-made products and crafts. Engaging in cultural exchanges, respecting local customs and traditions, and hiring local guides for tours can also contribute to the economic development and empowerment of local communities.

3. Respect the Environment: Responsible tourists should respect the natural environment and wildlife conservation efforts. This means adhering to guidelines for protected areas, national parks, and marine reserves. Travelers can minimize waste generation, practice proper waste disposal, and support organizations that focus on environmental conservation and sustainability initiatives. Additionally, participating in activities that promote wildlife conservation and avoiding attractions that exploit animals can help protect biodiversity.

4. Promote Responsible Cultural Interactions: Sustainable tourism encourages respectful interactions between tourists and local communities. Travelers should seek opportunities to engage with local cultures and traditions in a sensitive and responsible manner. This includes respecting cultural norms, seeking permission before taking photos, using appropriate language, and educating oneself about local customs and etiquette before visiting a destination.

5. Opt for Sustainable Accommodations: Sustainable accommodations aim to minimize their impact on the environment. Travelers can choose eco-friendly and certified accommodation options that implement practices such as energy conservation, waste management, water efficiency, and the use of renewable resources. Look for certifications such as LEED (Leadership in Energy and Environmental Design) or Green Globe to ensure that accommodations meet certain sustainability criteria.

6. Conserve Resources: Responsible tourists should strive to conserve resources during their travels. This can be achieved by using water and energy efficiently, avoiding excessive plastic consumption by carrying reusable water bottles and bags, and supporting establishments that follow sustainable practices such as recycling and minimizing single-use plastics.

7. Educate Yourself: Sustainable tourism begins with education and awareness. Travelers can educate themselves about the destination’s environmental and cultural issues, as well as sustainable tourism practices. By understanding the local context, travelers can make informed choices and actively contribute to the sustainability of the destination.

Implementing sustainable practices in outbound tourism is crucial for protecting natural resources, preserving cultural heritage, supporting local communities, and ensuring the long-term viability of destinations. By adopting these practices, travelers can minimize their impact on the environment, respect local cultures, and contribute to the well-being of host communities, thus promoting a more responsible and conscious approach to tourism.

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By Bastian Herre, Veronika Samborska and Max Roser

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The dynamic linkages among outbound tourism, economic growth, and international trade: empirical evidence from China

Chien-ming wang.

1 Department of International Business, Ming Chuan University, Taipei, Taiwan

2 School of Tourism and Hospitality Management, Hubei University of Economics, Wuhan, China

Alastair M. Morrison

3 School of Management and Marketing, Greenwich Business School, University of Greenwich, London, UK

Tsung-Pao Wu

4 School of Accounting and Finance in Beijing Institute of Technology, Zhuhai, China

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The aim of this research was to examine the long- and short-run relationships among real expenditures on outbound tourism from China, economic growth and international trade for the period of 1995 to 2018, applying a newly developed cointegration test—the Bootstrap Autoregressive Distributed Lag framework. Evidence of cointegration was found when expenditures on outbound tourism served as the dependent variable, and economic growth and international trade were important factors affecting outbound tourism from China. For the short-run, a two-way Granger causality relationship was detected between economic growth and outbound tourism expenditures, and the feedback was confirmed between outbound tourism expenditures and international trade. The findings have important policy implications for the growth of the outbound tourism market. Large volumes of outbound tourists result in economic losses for China and outbound tourism reduces the growth of tourism-driven international trade.

Introduction

Over the last 20 years, Chinese outbound tourism has rapidly grown, and the volume of outbound travelers reached 135 million with expenditures of USD 258 billion, reflecting annual growth rates of 5.3% and 3.2%, respectively, in 2017 (UNWTO 2018 ). International tourism expenditures by Mainland Chinese are the largest of all countries since 2012 (UNWTO 2015 ). Around 10% of China’s 1.4 billion inhabitants travel internationally and Chinese travellers spent a record US$ 277 billion abroad that China remains the world’s largest spender in 2018 (World Tourism Organization 2019 ). The development of Chinese outbound tourism can be attributed to the nation’s political liberalization and increasing economic prosperity. 1 Therefore, recent economic growth is inextricably linked to China’s outbound tourism growth. The economic growth trend of China followed the introduction of the “Open Door” policy in 1978 when the country began the transition to a market economy. China embarked on an import-substitution and export-oriented industrialization strategy in the early stages of economic growth.

Several researchers have suggested that the dramatic growth in China’s outbound tourism is related to increasing economic prosperity. First, gross domestic product (GDP) is an important factor affecting outbound tourism expenditures, which has support from consumer behavior theory. Crouch ( 1994 ) and Lim ( 1997b ) reported on very comprehensive surveys of empirical tourism demand studies for the past four decades. These surveys revealed that most of the existing research tends to use tourism expenditures as a dependent variable. The literature also demonstrates that the most widely used explanatory variable is income. Second, there is the question of whether outbound tourism expenditures causes a reduction in China's foreign exchange earnings and affects economic growth. Most of the existing studies adopt the tourism-led growth hypothesis, and less research considers if outbound tourism has the same impact on economic growth. Whether the impact of outbound tourism on China's economic growth is negative still needs to be tested.

This research assumes that the demand factors for outbound tourism not only need to consider the impact of economic growth but also international trade. The investigation followed Kulendran and Wilson ( 2000 ) definition of international trade, which is that it comprises China’s total exports to and imports from foreign countries. Kulendran and Wilson ( 2000 ) proposed a simple flow model for international tourism and trade. They suggested that tourism leads to international trade (export sales and import purchases), which in turn encourages international tourism. Outbound tourism, including taking holidays, visiting friends or relatives, or studying overseas, can generate either the import or export of goods. China's reduction of trade barriers has proven to be a catalyst for international trade and travel. It is, therefore, possible to test the relationship between outbound tourism and international trade.

Figure 1 presents outbound tourism expenditures, GDP, and international trade during 1995–2018 for China. This graphic shows outbound tourism expenditures, GDP, and international trade for China have increased exponentially over the 20 years. China’s economic prosperity began in the early 1980s, following the introduction of reform and the Open Door Policy when the market economy model was adopted. China began to open its market and in so doing attracted a large volume of international trade. As a result, the overall living standards of China’s populace steadily improved and disposable incomes substantially increased. There are numerous studies examining the relationship between China’s outbound tourism and GDP, but few empirical studies have investigated China’s outbound tourism expenditures, international trade, and GDP. Most importantly, Fig. 1 appears to suggest that outbound tourism expenditures, GDP, and international trade are highly correlated. In addition, they may be cointegrated and could have causal relationships. A more sophisticated technical analysis of time series data is needed and was attempted in this research.

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Outbound tourism, GDP and trade in China 1995–2018

There remains an unanswered question of whether growth in GDP and international trade (exports and imports) causes China outbound tourism increases or if China’s outbound tourism instead contributes to international trade and economic growth. Previous studies on the relationship among outbound tourism, economic growth, and international trade are scant and lack enough rigor. Therefore, this research focused on the international trade to outbound tourism demand function, and further tested the impact of outbound tourism and international trade on economic growth. and the impact of outbound tourism and economic growth on international trade.

To evaluate the three-way, long-run relationship among outbound tourism, economic growth, and international trade, a specific autoregression distributed lag (ARDL) econometric method, the Bootstrap ARDL was employed, which was pioneered by McNown et al. ( 2018 ). This research is the first to use the bootstrap ARDL test in the context of a nation’s tourism economic and market development. McNown et al. ( 2018 ) modified this test through Bootstrap techniques and the newly developed test has several advantages over the ARDL Bounds test of Pesaran et al. ( 2001 ). The first advantage of the Bootstrap ARDL test is that there is evidence that it is superior to the asymptotic test in the ARDL Bounds tests based on power and size properties. Second, McNown et al. ( 2018 ) used Bootstrap techniques solves the endogeneity problem of the ARDL Bounds test, because the ARDL Bounds test assumes that there is no feedback from the dependent to the independent variable. Finally, the advantage of the Bootstrap ARDL test is that it generates critical values for tests of degenerate cases in the ARDL model. McNown et al. ( 2018 ) also pointed out that degenerate cases are not a cointegration (Pesaran et al. 2001 ). Therefore, McNown et al. ( 2018 ) added another F test to complement the existing F and t tests for the cointegration proposed by Pesaran et al. ( 2001 ).

The structure of this work is as follows. The first two sections review the literature on Chinese outbound tourism, economic development, and international trade. The third section discusses the data and econometric methodology. The fourth provides the empirical results for long- and short-run relationships, and the fifth section is the conclusion.

Literature review and hypotheses

The purpose of this research was to investigate the interactions among outbound tourism, international trade, and economic growth in China. The pairwise related variables are discussed here, and several hypotheses are proposed on the basis of the following literature review. The main focus is on outbound tourism and trade, outbound tourism and economic growth, and the relationships among these three variables.

Outbound tourism and economic growth

Tourism researchers have payed greater attention to the relationship between tourism and economic growth in the past two decades (Castro-Nuno et al. 2013 ; Eeckels et al. 2012 ; Ghartey 2013 ; Husein and Kara 2011 ; Cortés-Jiménez et al. 2011 ; Oh 2005 ; Tang 2011 ; Chatziantoniou et al. 2013 ; Nowak and Sahli 2007 ; Ridderstaat et al. 2014 ; Lee et al. 2022 ). However, most of these researchers examined the relationship between inbound tourism and economic growth.

In less than 20 years, China’s outbound tourism has rapidly increased. China has become the top outbound tourism spender. Many countries, especially the leading destinations, are greatly interested in the development and influencing factors of China's outbound tourism. Crouch ( 1994 ) meta-analyzed 80 studies estimating the income elasticity of international tourism as a function of demand. Lee et al., ( 2021a , b ) examines the relationship between geopolitical risk and tourism demand using panel bootstrapping technique. The results show that geopolitical risk negatively caused tourism demand, which was significant. Lim ( 1997a , b ) reviewed 100 studies about empirical tourism demand in the 1980s. Cointegration and error correction methods have been used to estimate tourism demand and examine income elasticities (Kulendran 1996 ; Kulendran and King 1997 ; Vogt and Wittayakorn 1998 ). Song et al. ( 2000 ) built United Kingdom demand for outbound tourism models for different overseas destinations. They found that long- and short-run periods had positive income elasticities and that income had the best forecasting performance for United Kingdom outbound tourism. In addition, Dritsakis ( 2004 ) found that real GDP had a positive coefficient for German and British long-run tourism demand for Greece. Halicioglu ( 2010 ) aggregated outbound tourism data for Turkey for 1970–2005. He conducted a Granger causality analysis to understand how outbound tourist flows, income, and relative prices determined the direction of causality. Some studies estimated the long- and short-run income elasticities of tourism demand and found that tourism may be considered as a luxury good (income elasticities value greater than one). Therefore, this research proposed the following hypotheses on the relationship of economic growth and outbound demand.

Hypothesis 1: Economic growth has a positive relationship with outbound tourism; outbound tourism demand and outbound tourism is a luxury good.

As previously noted, most prior research evidence has a focus on inbound tourism and economic growth as a tourism-led growth scenario. A large number of Chinese tourists can increase the economic growth of a region but also cause an environmental impact due to traffic pollution (Lee et al. 2021a , b ). Fewer studies have investigated the causal relationship between outbound tourism and economic growth. However, outbound tourism may be more substantial than inbound for some countries, including China. International tourism expenditures by Mainland Chinese are the largest for all countries. Song and Lin ( 2010 ) forecast outbound tourism from Asia by considering the impact of the 2008 world financial crisis. Their study showed that outbound tourism generally fell significantly in 2009, except in China and Hong Kong. Because China’s economy is predicted to experience significant growth in coming years (albeit interrupted by the effects of the COVID-19 pandemic), many overseas destinations are making efforts to attract Chinese tourists to recover from post-2008 challenges to their tourism sectors. The Chinese tourism market in the past 15 years, has diversified and increased in complexity. Indeed, the characteristics of the outbound China market seem to be a miniature version of global tourism development. These relatively early stages of Chinese outbound tourism offer significant opportunities for longitudinal studies to demonstrate how a market has matured and to describe its life-cycle in a short time period (Jin and Wang 2015 ). Guo et al. ( 2007 ) argued that outbound tourism may have a negative effect on economic growth, because the expenditures abroad result in losses of foreign exchange. However, important questions remain to be answered, including on the relationship between outbound tourism and economic growth in China, and on the short- and long-run differences in this relationship. Thus, the second hypothesis focuses on the interaction of outbound tourism and economic growth.

Hypothesis 2: Outbound tourism leads to economic losses and has a negative effect on economic growth.

Outbound tourism and international trade

Kulendran and Wilson ( 2000 ) found a Marco Polo phenomenon when examining the relationship between outbound tourism and international trade. Countries have extended international trade flows, they also have experienced greater international travel flows, and vice versa. They investigated the relationship between international trade and tourism development flows with data from four important travel and trade partners (United States of America, United Kingdom, New Zealand, and Japan) to Australia. Using cointegration and Granger approaches, they found correlational and bidirectional causal relationships between travel (business, holiday, and total) and international trade.

International trade leads to travel, including the influence of the interest hypothesis. Turner and Witt ( 2001 ) found that international trade played an important role in influencing tourism demand. International trade has a network effect that decreases transaction costs as well as leading to growth in travel volumes. Katircioglu ( 2009 ) explored a long-run equilibrium relationship among trade, tourism and real income growth for Cyprus. Using data covering the period of 1960–2005, the results indicated that the increases in real income stimulated growth in international trade and growth in international trade also motivated an increase in international tourist arrivals to Cyprus. Analyses of both the long- and short-run relationships between international tourism and trade (Santana-Gallego et al. 2011 ) demonstrated that international trade promotes tourism development, since international trade encourages improvements in tourism supply. Massidda and Mattana ( 2013 ) investigated the relationship across international tourism arrivals and trade in Italy and found there was long-run causality from trade to international tourism arrivals. Studied tourism in Thailand and found that international trade increased outbound tourism demand.

Hypothesis 3: International trade leads to greater outbound tourism demand (the interest hypothesis).

Kulendran and Wilson ( 2000 ) also showed that international travel leads to international trade through what they called the Marco Polo or opportunity hypothesis. However, much of the research about the Marco Polo hypothesis is on the relationship between inbound tourism and trade. Khan et al. ( 2005 ) examined the relationship between inbound tourism and trade and detected no correlation and Granger causality between inbound tourism and trade. Gunduz and Hatemi-J ( 2005 ) found the relationship between international tourism and trade to be inconclusive. Lionetti and Gonzalez ( 2012 ) investigated the relationship between inbound tourism and international trade for six countries in Latin America and the Caribbean. In the long-run, their results showed there was no Granger causality for all six countries. However, in the short-run, several countries (Nicaragua, Chile, Venezuela and Dominican Republic) had bi-directional causality relationships between inbound tourism and trade. Shan and Wilson ( 2001 ) found a two-way Granger causality relationship between inbound tourism and international trade in the case of China.

Again, however, some important questions remain unanswered, including what is the relationship between outbound tourism and international trade in China?

Hypothesis 4: Outbound tourism leads to international trade (Marco Polo or opportunity hypothesis).

Variables and data series

This research used annual data for the period from 1995 to 2018. 2 All the databases were from World Bank Development indicators. These included annual data for real GDP in US dollars (2015 = 100), Chinese expenditures on outbound tourism (TD) (international tourism expenditures of Chinese international outbound visitors in other countries), and total international trade in exports and imports (TR). 3 A logarithmic transformation of all three variables was completed. 4

Table Table1 1 presents summary statistics of the variable-series used in the cointegration analysis. The variable-series demonstrated a considerable range of standard deviations. It was found that all three variables had positive skewness and Jarque–Bera statistics indicating that the outbound tourism expenditures variable was non-normally distributed and economic growth and international trade were normally distributed.

Summary of main variables

The Bootstrap ARDL test allows for all series to include both I (0) or I (1) time series in a long-run relationship. The Pesaran et al. ( 2001 ) approach does not require the modeling of variables with the same order of integration. The order of integration of the three variables was scrutinized to understand the properties of each time series. The Augmented Dickey–Fuller (ADF), Phillips–Perron (PP), and Kwiatkowski–Phillips–Schmidt–Shin (KPSS) Unit Root tests were employed to test the integration level (Dickey and Fuller 1981 ; Kwiatkowski et al. 1992 ; Phıllıps and Perron 1988 ). Table Table2 2 reports ADF, PP, and KPSS unit root test results at level and first difference values for real tourism expenditures, real GDP, and real international trade. For real tourism expenditures and real international trade, all tests indicated non-stationary conclusions in the level column. Table Table3 3 reports Zivot–Andrews (Z–A) unit root test that allows an endogenous structural break at a point in the intercept and liner trend (Zivot and Andrews 2002 ). The Zivot–Andrews unit root test show that three variables rejecting the null hypothesis in the first difference column. However, it was found that three variables turned stationary in the first difference column, means all variables are I (1) process. Thus, it was appropriate to proceed to examine for the presence of cointegration among real tourism expenditures, real GDP, and real international trade.

Univariate unit root test

The asterisks ***, ** and * denote significant are the 1%, 5% and 10% levels, respectively. The figure in the parenthesis is the optimal lag structure for ADF and PP tests as determined by the Schwert ( 1989 ) formula or bandwidth for the KPSS unit root test

Zivot and Andrews unit root tests

The asterisks ***, ** and * denote significant are the 1%, 5% and 10% levels, respectively. The optimal lag structure for Z–A test is determined by the Schwarz information criterion (SIC)

Econometric methodology

To investigate the long- and short-run relationships among the variables under consideration, the Bootstrap for cointegration within the ARDL (the Autoregressive Distributed Lag) modeling approach was adopted (McNown et al. 2018 ). 5 This foundational model was developed by Pesaran et al. ( 2001 ) and can be applied irrespective of the order of integration of the variables. 6 The ARDL modeling approach involves estimating the following error correction models:

In Eqs. ( 1 ), ( 2 ) and ( 3 ), Δ is the difference operator, TD t is real outbound tourism expenditure, GDP t is real gross domestic product, and TR t is international trade. Where i , j are the index of lags; i = 1 , 2 , ⋯ p ; j = 1 , 2 , ⋯ p ; t denotes the time periods t = 1 , 2 , ⋯ T ; D t , j are dummy variables to represent the structural breaks in the equation 7 ; β 1 , β 2 , β 3 , γ i , δ i , and θ i are coefficients on the lags of the variables.

According to McNown et al. ( 2018 ), the F test and t test are used for testing to determine the existence of long-run relationships. They point out that cointegration TD t , GDP t and TR t requires rejection of all three of the null hypotheses:

H 0 : β 1 = β 2 = β 3 = 0 , F test on all error correction term (define as F 1 ).

H 0 : β 1 = 0 , t test on lagged dependent variable (define as t ).

H 0 : β 2 = β 3 = 0 , F test on lagged independent variables (define as F 2 ).

The F 1 , t and F 2 critical values are different in McNown et al. ( 2018 ). Pesaran et al. ( 2001 ) provided critical values only for F 1 and t but not for the F 2 test on the lagged independent variable. McNown et al. ( 2018 ) identified two degenerate cases: degenerate case #1 is a mean, where the F 1 and t tests are significant, but the F 2 test on the lagged independent variable is not significant. Degenerate case #2 is where the F 1 and F 2 tests are significant, but the t test on the lagged dependent variable is not significant. Pesaran et al. ( 2001 ) presented critical values for degenerate case #1; however, they only showed the upper and lower bounds for critical values while imposing strict exogeneity on the explanatory variable. Another advantage of the Bootstrap ARDL test is that it is suitable for models with multiple endogenous variables. The Bootstrap ARDL test uses the resampling procedure, which is better than the asymptotic test in the ARDL Bounds test based on size and power properties. McNown et al. ( 2018 ) argued that the Bootstrap ARDL test provides a better insight on the cointegration status of the time series in the ARDL model.

The short-run relationships were determined by Granger-causality tests. 8 If cointegration is not found among TD t , GDP t and TR t when TD t is the dependent variable, the Granger causality test for GDP t => TD t and TR t => TD t should only include the lagged difference on GDP t and TR t , i.e., testing δ i = 0 and θ i = 0 . However, if there is cointegration among the variables, then this means the dependent and independent variables form a fixed linear combination. As a result, the lagged level can be considered as I (0). In this case, the Granger causality test of GDP t => TD t and TR t => TD t should include the lagged difference of GDP t and TR t and the lagged level of GDP t and TR t , i.e., testing β 2 = δ i = 0 and β 3 = θ i = 0 . Therefore, this situation also exists when GDP t or TR t is a dependent variable in Eqs. ( 2 ) or (3).

Empirical results

Before proceeding with the Bootstrap ARDL cointegration tests, Table Table4 4 shows that the diagnostic details of optimal models. 9 These tests include the correlogram for white noise residuals, the Lagrange multiplier test for no residual serial correlation, the heteroscedasticity test, and the Ramsey RESET test of no functional mis-specification is presented. We found that all equations passed these test diagnoses.

Optimal model by diagnostic checking

The asterisks ***, ** and * denote significant are the 1%, 5% and 10% levels, respectively. Q -statistic(5) denotes Q statistic at lag 5, LM(2) indicates Lagrange Multiplier statistic against order 2 autocorrelation, BPG denotes Breusch–Pagan–Godfrey chi-square statistic for heteroscedasticity test. F_RESET(1) is the F -statistic for regression specification error test against order 1 for no functional form mis-specification.

Long-run relationship with structural breaks

The Bootstrap ARDL test was used to estimate the long-run determinants of outbound tourism expenditures, economic growth, and international trade so that all three variables could be viewed as endogenous. The Bootstrap ARDL was implemented with structural breaks proposed capturing shocks as the data demonstrated peaks and valleys caused by dummy variables, for example, economic crises and open tourism policies. The Akaike Information Criterion (AIC) was used in lag selection. The optimal number of lag periods was set to one (1 year) because of the length of the sample in the ARDL model.

The Bootstrap ARDL was used to test, Eqs. ( 1 )–( 3 ), and the estimates are reported in Table Table5. 5 . From Table Table5, 5 , the existence of a long-run relationship in the model rejected the hypothesis of the F 1 test, F 2 test and t test (significant t statistic on the lagged level of the dependent variable). When TD served as the dependent variable, there was cointegration evidence and controlling structure breaks for the years 2007, 2011, and 2014 for China outbound tourism. As reported in Table Table3, 3 , in the TD equation, all three test statistics, F 1 , F 2 and t , were significant.

Cointegration results: outbound tourism expenditures (TD), economic growth (GDP), and international trade (TR)

D07 means a dummy variable for the year 2007; other years are 0. F 1 is the F -statistics for the coefficients of TE t - 1 , GDP t - 1 and TD t - 1 ; t _dep is the t -statistics for the dependent variable, and F 2 _indep is the F -statistics for the independent variable. F 1 *, t * and F 2 * are the critical value at the 5% significance level, generated from the bootstrap program

It was found that economic growth and international trade played an important role in China's outbound tourism expenditures in the long-run. First, the results of the Bootstrap ARDL test supported Halicioglu’s ( 2010 ) research that used Bounds testing to compute outbound tourist flows and income. Second, it is suggested that international trade is also a main variable in determining China's outbound tourism expenditures in the long-run. This research confirmed that international trade should be considered in testing the cointegration of China's outbound tourism expenditures. This is because China’s open policy not only affects outbound tourism, but also has an impact on international trade and economic growth.

As shown in Table Table6, 6 , the coefficients were significant for economic growth and international trade. When economic growth increased by one percent, outbound tourism tended to increase by 1.4734 in the long-run. Outbound tourism for China can be regarded as a luxury good as the income elasticity of demand is positive and exceeds one. Thus, there was empirical evidence in support for hypotheses 1 but this result did not support hypothesis 3 in the long-run relationship. However, this also indicated that international trade had a negative impact on outbound tourism in the long-run with a coefficient of − 0.5421 percent. China's outbound tourism was affected by the lag in international trade behavior. A large volume of early international trade drove China's economic growth, which led to the growth of Chinese outbound tourism after 2009 (Dai et al. 2017 ). However, after 2009 international trade slowed down. China's outbound tourism has already been improved by the economy and the recent increase in China's outbound tourism has been accelerated due to the stimulation of trade.

Long-run coefficient results (dependent variable = LTD)

The asterisks ***, ** and * denote the significance at the 1%, 5% and 10% levels, respectively

Table Table5 5 shows that cointegration did not exist when economic growth or international trade were used as dependent variables. Kulendran and Wilson ( 2000 ), Katircioglu ( 2009 ) and Massidda and Mattana ( 2013 ) discovered a long-run relationship among inbound tourism, trade and economic growth but the analyses found that there is not a long-run relationship from outbound tourism expenditures to international trade and economic growth. The appropriate conclusion is that cointegration does not exist when economic growth is used as a dependent variable.

Short-run Granger causality test based on Bootstrap ARDL

Table Table7 7 reports the Granger causality test results based on the Bootstrap ARDL. A feedback relationship existed between outbound tourism expenditures and international trade. Between outbound tourism expenditures and economic growth and between economic growth and international trade, there were also two-way Granger causality relationships.

Granger causality results: outbound tourism expenditures, economic growth, and international trade

The asterisks ***, ** and * denote the significance at the 1%, 5% and 10% levels, respectively. In addition, (.) are p value and sign for the coefficients. The case of non-cointegration and its causality test involved only lagged differenced variables

In the outbound tourism (TD) equation, economic growth (GDP) positively caused outbound tourism with an F-statistic of 2.896, which was significant. In addition, international trade (TR) positively caused TD at a 1% significance level with an F -statistic of 7.612. Looking at the sign of the coefficients of the two independent variables, both GDP and international trade were important determinants of Chinese outbound tourism. The Granger causality test indicated that GDP and international trade are important variables influencing outbound tourism demand. These empirical findings suggested that when economic growth and international trade are increasing, people have more monetary wealth and more frequent contact with foreign goods, and they spend more on travel outside of Mainland China. There are several previous studies concluding that income is a good variable to measure outbound tourism (Kulendran 1996 ; Lim and McAleer 2001 ; Seddighi and Shearing 1997 ). Lim ( 1997a ) found that income was the most commonly used explanatory variable in outbound tourism generation. Most importantly, this research found that international trade is also a key variable for creating China's outbound tourism. It is argued that greater trade in goods and services with a foreign country can enhance the image of the destination country within the origin nation’s outbound market; thus, travel opportunities are likely to increase between trading countries. It follows that a full understanding of China's outbound tourism cannot ignore the impact of the nation’s foreign trade. Hypotheses 1 and 3 were supported in the short-run relationship.

Furthermore, a Granger causality relationship was found between international trade to GDP, which means international trade positively caused economic growth with a 5% significance level. This confirms that international trade promotes China’s economic development. International trade can bring about the upgrading of skills through the adoption of superior production technology and such innovation can positively influence economic growth, in line with the benefits of the division of international trade in classical macroeconomic theory.

There was strong evidence of a Granger causality relationship from outbound tourism to GDP for China. This suggests that outbound tourism expenditures do negatively contribute to GDP in the short-run; therefore, this result supports hypothesis 2. Guo et al. ( 2007 ) pointed out that large volumes of outbound tourism expenditures affect China's foreign exchange reserves, thereby reducing economic growth. This investigation has found that there was this effect. The substantial increase in outbound tourism has resulted in the loss of a large amount of foreign exchange reserves in recent years, which not only promoted the tourism development of neighboring countries but also eroded the domestic economic achievements in a short period of time. The economic fluctuation caused by the short-run impact of outbound tourism deserves greater attention from researchers and government.

The last international trade equation suggested that outbound tourism expenditures influence international trade in a negative way. Outbound tourism consumption increased along with decreases in international trade. These results suggest that increases in outbound tourism expenditures in the previous year will reduce China's foreign trade expenditures for the current year, as more Chinese go abroad to purchase foreign goods, which decreases the demand for traded goods. Kulendran and Wilson ( 2000 ) found a Marco Polo effect, where tourism drives trade growth; however, the data in recent years indicate that there was a negative Marco Polo effect in China. This research supported hypothesis 4, but outbound tourism expenditures had a negative effect on international trade in the short-run. Large volumes of outbound tourism will cause a decline in China's international trade, possibly due to excessive parallel trade in outbound tourism, thus reducing tourism-led trade growth. In the international trade (TR) equation, economic growth (GDP) negatively influenced international trade with an F-statistic of -1.856, which was significant.

Stability of ARDL model

The robustness of the model is ensured by the CUSUM (Brown et al. 1975 ) and the CUSUM of squares tests (Brown et al. 1975 ) that are based on the cumulative sums and squares of the recursive residuals. The test finds parameter stability if this option plots the cumulative sum together within the 5% critical lines. In Fig. 2 , the CUSUM and the CUSUM of squares tests showed that the residual variance was stable, because the blue lines were within the 5% significance lines.

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Plot of CUSUM and CUSUM of squares tests

Conclusions and policy implications

The research aim was to empirically test the long-run relationships and directions of Granger causality among outbound tourism expenditures, economic growth, and international trade for China using a newly developed Bootstrap ARDL model over the period of 1995–2018. There were several main findings and conclusions. First, a long-run equilibrium relationship (Bootstrap ARDL test for cointegration) existed in the model, when outbound tourism expenditures served as the dependent variable. However, this long-run relationship did not exist for the case in which economic growth and international trade were the dependent variables.

The Granger causality test based on the Bootstrap ARDL model found a feedback relationship existed between outbound tourism expenditures and international trade. However, a two-way Granger causality relationship was also detected for outbound tourism expenditures and economic growth. By considering the signs of the coefficients of the independent variables, it was concluded that economic growth and international trade were very important factors for promoting outbound tourism demand in China. The contribution of this research is the finding that economic growth and international trade not only have an impact on inbound tourism (Kulendran and Wilson ( 2000 ), Katircioglu ( 2009 ), Massidda and Mattana ( 2013 ) and Lionetti and Gonzalez ( 2012 )) but also on outbound tourism. Interestingly, the results also suggested that outbound tourism expenditures reduce international trade.

The income elasticity of demand in the short-run is greater than the long-run, which can be used by policymakers to manage the outbound demand. Short-run economic cycles will have a great impact on China's outbound demand, but in the long-run, the effects of sudden shocks will slow down. For example, the coronavirus pandemic caused a global economic recession, which seriously reduced China's outbound tourism in the short-run, but its impact on China's outbound travel in the long-run will be lower than in the short-run given the same economic situation.

There were two variables that are crucial to increasing outbound tourism expenditures. It was confirmed that when there are increases in economic growth, this will positively affect outbound tourism expenditures. In addition, the promotion of international trade had a positive impact on outbound tourism expenditures. Moreover, the large volume of outbound tourism expenditures had a significant impact on economic growth in China. Similarly, outbound tourism expenditures may reduce international trade. Outbound tourism expenditures affect the overall economy, and they also have an influence on international trade. Outbound tourism has a negative impact on international trade and international trade is extremely important in driving China’s economic engine. Therefore, outbound tourism not only has direct impact on the Chinese economy, but it gas an indirect effect as well.

It may be suggested that China's outbound tourism has grown too quickly, so tourism has become a part of foreign exchange earnings, and China's outbound foreign exchange reserves are already in a trade deficit. Dai et al. ( 2017 ) pointed out that China's tourism industry had a deficit of US $372 billion in total trade from 2009 to 2011 and continues to grow. This study provides strong evidence that China’s outbound tourism impacts short-run economic growth. Therefore, the Chinese government might consider using a tax levy on outbound travel expenditures to reduce foreign exchange losses. However, the trade deficit in tourism is an outcome of the development of a free economy and is also caused by globalization. The increase in costs of outbound tourism brought out by a tourism tax may have short-run effects, which may lead to the loss of consumption in the tourism industry in the long-run. The second policy implication is the option of strengthening the quality of China’s domestic tourism, because domestic tourism and foreign tourism are substitutes for each other and may be affected less by the costs of tourism but more by the respective tourism quality.

The empirical results support a trade-led growth hypothesis for China’s economic growth. While short-run impacts of international trade on economic growth exist for most economies, international trade is a key factor promoting China’s economic development. Moreover, the short-run results found that the economic growth of the previous year signify a decrease in China’s trade demand for the current period. The Granger causality test based on the Bootstrap ARDL model found a feedback relationship existed between economic growth and international trade.

Although this research identifies multiple pathways for future research in the leading emerging economy of China, these opportunities may also be relevant to research in other emerging markets. Brazil, India, Russia, and Eastern Europe have unique social, cultural, historical, and political characteristics, as does China. China's experience can be used as a reference for the long-run strategic development of these markets.

Author contributions

C-MW: analysed the results, collected the data, and wrote the paper. S-LP: wrote the paper, and analysed the results. AMM: edited the paper, and wrote the paper. T-PW: collected the data.

Availability of data and materials

Code availability, declarations.

The authors declare that they have no conflict of interest.

1 In May 1991, China's outbound travel development was due to the relaxation of travel regulations by the government. Chinese people can join Chinese tour groups to Singapore; Hong Kong, Thailand and Malaysia and other countries to travel (Wang & Sheldon 1996 ; Wen & Tisdell 2001 ).

2 This is the earliest data that we have on Chinese expenditures on outbound tourism from 1995. In fact, China's outbound tourism began to grow significantly around 2000, thence the analysis from 1995 is representative.

3 All the data we collect exclude Hong Kong and Macau.

variation into linearity is to reduce the estimation error caused by structural changes, so as to facilitate model.

estimation.

5 Cointegration is the existence of a long-run relationship between two or more variables. When two time series variables X and Y do not individually hover around a constant value, but their combination (which could be linear) does hover around a constant value, this is called cointegration.

6 There variances are purely I (0), purely I (1) or mutually cointegrated.

7 The dummy is specified as one in the identified year and zero otherwise. Considering dummy variables can control possible structural changes can increase the explanatory power of the estimates and have better estimation results in the model.

predictive power of variables. Thus, it is said that as a variable X evolves over time its Granger.

causes another evolving variable Y if predictions of the value of Y based on its own past values and on the past values of X are better than predictions of Y based only on its own past values.

9 The manuscript used EViews 8 software as the estimation of the model.

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UN Tourism | Bringing the world closer

International Tourism to End 2023 Close to 90% of Pre-Pandemic Levels

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International Tourism to End 2023 Close to 90% of Pre-Pandemic Levels

All Regions
30 Nov 2023

International tourism is on track to recover almost 90% of pre-pandemic levels by the end of this year. According to the latest data from the World Tourism Organization (UNWTO), an estimated 975 million tourists travelled internationally between January and September 2023, an increase of 38% on the same months of 2022.

The newest UNWTO World Tourism Barometer also shows:

World destinations welcomed 22% more international tourists in the third quarter of 2023 compared to the same period last year, reflecting a strong Northern Hemisphere summer season.
International tourist arrivals hit 91% of pre-pandemic levels in the third quarter, reaching 92% in July, the best month so far since the start of pandemic.
Overall, tourism recovered 87% of pre-pandemic levels in January-September 2023 . That puts the sector on course to recover almost 90% by the end of the year.
International tourism receipts could reach USD 1.4 trillion in 2023 , about 93% of the USD 1.5 trillion earned by destinations in 2019.

The latest UNWTO data shows that international tourism has almost completely recovered from the unprecedented crisis of COVID-19 with many destinations reaching or even exceeding pre-pandemic arrivals and receipts

UNWTO Secretary-General Zurab Pololikashvili said: "The latest UNWTO data shows that international tourism has almost completely recovered from the unprecedented crisis of COVID-19 with many destinations reaching or even exceeding pre-pandemic arrivals and receipts. This is critical for destinations, businesses, and communities where the sector is a major lifeline. "

The Middle East, Europe and Africa lead recovery

The Middle East continues to lead the recovery by regions in relative terms, with arrivals 20% above pre-pandemic levels in the nine months through September 2023. The Middle East remains the only world region to surpass 2019 levels this period. Visa facilitation measures, the development of new destinations, investments in new tourism-related projects and the hosting of large events, help underpin this remarkable performance.
Europe , the world's largest destination region, welcomed 550 million international tourists over the period, 56% of the global total. That represents 94% of pre-pandemic levels. The rebound was supported by robust intra-regional demand as well as strong demand from the United States.
Africa recovered 92% of pre-pandemic visitors this nine-month period, and arrivals in the Americas reached 88% of 2019 numbers this period, as the region benefitted from strong US demand, in particular to Caribbean destinations.
Asia and the Pacific reached 62% of pre-pandemic levels this period due to slower reopening to international travel. However, performance among subregions is mixed, with South Asia recovering 95% of pre-pandemic levels but North-East Asia only about 50%.

International tourist arrivals (% change vs. 2019)

The World Tourism Barometer includes more focused data on regions, as well as sub-regions and individual destinations.

Tourism spending strong

Strong demand for outbound travel was reported by several large source markets this period, with many exceeding 2019 levels. Germany and the United States spent 13% and 11% more respectively on outbound travel than in the same nine months of 2019, while Italy spent 16% more through August.

The sustained recovery is also reflected in the performance of industry indicators. Drawing on data from IATA (the International Air Transport Association) and STR, the UNWTO Tourism Recovery Tracker details a strong recovery in air passenger numbers and tourist accommodation occupancy levels.

Against this backdrop, international tourism is well on track to fully recover pre-pandemic levels in 2024 despite economic challenges such as high inflation and weaker global output, as well as important geopolitical tensions and conflicts.

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Experts and industry insiders are confident of the steady development of the Chinese mainland's outbound and inbound tourism, and are calling for more measures to improve international travelers' experiences to revitalize the stillweak inbound tourism market.

The China Tourism Academy estimates that the number of outbound visits exceeded 87 million in 2023, a twofold increase compared with the previous year. The figure is more than half of that in 2019, before the COVID-19 pandemic hit the world.

The number of outbound visits is projected to jump to 130 million by the end of this year, allowing the Chinese economy to recover further and paving the way for more international flights and continuous optimization of visa policies, according to the academy.

"The recovery of and boom in outbound tourism were expected after China optimized its COVID-19 control measures starting early last year," said Yang Jinsong, director of the academy's international institute, at a news conference on Thursday.

The Hong Kong and Macao special administrative regions remained the top choices for outbound tourists in the first half of 2023, while the traditionally popular overseas destinations among Chinese travelers, such as Japan and South Korea, saw some European and African rivals, including France, Italy and Egypt, according to the academy.

"We are optimistic about China's outbound tourism development, because we see an improving macroeconomy, and people's disposable incomes have also increased," said Yang. "More international flights, further optimized visa policies and the recovery of outbound tourism service chains will contribute to the sector's development."

Beijing Capital International Airport handled 1.05 million international passenger trips last month, recording an eightfold increase compared with last year, according to data released by the airport authorities on Thursday.

The peak was hit on Jan 28, when more than 40,000 international trips were made, reaching a nearly four-year high, data showed.

With the Spring Festival holiday approaching, the number of outbound visits is expected to rise. Data showed that the number of searches for outbound international flights from Beijing Capital airport for the eight-day holiday period this year surged more than 2.5 times compared with the same period last year.

The inbound tourism market has not performed very well so far, but industry insiders expect a good recovery and have called for more effective measures to attract international travelers.

The tourism academy estimates that the number of inbound visits for 2023 reached 60 to 70 percent of the figure in 2019.

Inbound visits by residents of Hong Kong and Macao witnessed a faster recovery last year compared with those by foreign travelers. The number of inbound visits from Hong Kong and Macao was 81 percent of the level in 2019, while that from foreign countries was 36 percent, according to the National Immigration Administration.

The inbound tourism market showed some structural imbalance in 2023, as most visits were for business purposes rather than tourism.

The academy estimates that inbound visits by residents of the Hong Kong and Macao SARs and the Taiwan region will see a full recovery this year, while visits by foreign travelers will recover to 50 percent of the level in 2019.

Dai Bin, president of the academy, said that increased flights and optimized visa policies are key to attracting more international travelers. The authorities should announce effective measures, including steps to improve communication, transportation, accommodations and payment services, in order to improve travelers' experiences.

Luo Wangshu contributed to this story.

[email protected]

Text: A A A Print Economy

Outbound tourism growth, inbound recovery projected.

The peak was hit on Jan 28, when more than 40,000 international trips were made, reaching a nearly four-year high, data showed.

The inbound tourism market has not performed very well so far, but industry insiders expect a good recovery and have called for more effective measures to attract international travelers.

The tourism academy estimates that the number of inbound visits for 2023 reached 60 to 70 percent of the figure in 2019.

The inbound tourism market showed some structural imbalance in 2023, as most visits were for business purposes rather than tourism.

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Outbound tourism growth, inbound recovery projected

The peak was hit on Jan 28, when more than 40,000 international trips were made, reaching a nearly four-year high, data showed.

The inbound tourism market has not performed very well so far, but industry insiders expect a good recovery and have called for more effective measures to attract international travelers.

The tourism academy estimates that the number of inbound visits for 2023 reached 60 to 70 percent of the figure in 2019.

The inbound tourism market showed some structural imbalance in 2023, as most visits were for business purposes rather than tourism.

Luo Wangshu contributed to this story.

How Indians Are Traveling Now: Takeaways From MakeMyTrip’s First Trend Report

Bulbul Dhawan , Skift

April 22nd, 2024 at 10:09 AM EDT

MakeMyTrip shares insights into changing preferences of Indian travelers as the Indian tourism industry is poised for significant growth in 2024.

Bulbul Dhawan

Indian travelers have an increased interest in weekend getaways and spiritual tourism, according to online travel agency MakeMyTrip’s first-ever travel trends report . Searches for destinations with or around religious spots increased by 97% in the last two years, the platform stated in the report, which was released on Monday.

Spiritual tourism is also leading the growth of tourism in tier-2 and tier-3 cities. MakeMyTrip recorded a 585% increase in searches for Ayodhya in 2023. Gains were 343% for Badrinath, and 359% for Ujjain.

In the domestic hotels category, weekend getaways have seen the highest growth. Popular travel destination Jim Corbett has seen an year-on-year increase of 131% in terms of search volumes, followed by Ooty and Munnar. “A large number of travelers are driving to these destinations from nearby metros,” MakeMyTrip stated in the report.

Skift’s earlier report had mentioned how the Indian tourism industry is poised for significant growth, with estimates projecting a revenue of $24 billion in 2024 .

Increased Discretionary Spend on Travel

The number of travelers taking more than three trips a year in 2023 has grown by 25% as compared to 2019. Indians are also spending more discretionary income on travel, MakeMyTrip said. There has also been an increased interest in domestic travel and travel to unexplored destinations in the country, especially because of the country’s improved infrastructure.

Staycations and experience travel increased in 2023. Family travel bookings witnessed a 64% year-on-year increase, while solo travel bookings increased by 23%. Two people traveling together accounted for 50% of all bookings, MakeMyTrip shared. It also recorded December and May as the most preferred months for travel.

Spontaneous Domestic Trips, But Planned International Travels

According to the report, Indians are spontaneous travelers when it comes to domestic bookings. As much as 46% of domestic flight bookings were done in less than a week before the date of travel, it stated.

International bookings, however, witnessed a longer planning period, with 51% of the international flight bookings having been done at least 15 days before departure. One-third of all international bookings were made more than a month in advance.

MakeMyTrip observed the same pattern in hotel bookings. More than 50% of the domestic hotel bookings for leisure were made less than a week before travel. One-third of international hotel bookings were made at least 30 days in advance.

Preferences of Indian Travelers

As much as 30% of all international travel searches from India were for Dubai, Bangkok, and Singapore. “London, Toronto, and New York were the most searched long-haul destinations,” MakeMyTrip stated in the report. There has also been an interest in international travel during long weekends, as the platform recorded a surge in searches for Bali, Bangkok, Phuket, and Singapore.

When it comes to domestic travel, two-thirds of the travelers prefer to pre-select their flight seats. During international travel, this figure drops to 40%, the platform shared. Additionally, indigenously developed unified payments interface (UPI) is the most preferred mode of payment for Indian travelers and accounts for 36% of all transactions.

India is also witnessing an increase in the popularity of travel gift cards. Half of the travel gift cards are gifted on the occasion of weddings, while the other 50% are gifted on occasions such as birthdays and festivals.

Hotels continue to be the most popular type of accommodation, with searches for hotels increasing by 39% year-on-year in 2023. Couples and family travelers formed the majority of the guests booking for hotels.

Alternate accommodations witnessed a 24% increase in searches. Friends and larger groups preferred to book homestays, apartments, and villas, while more solo travelers favored hostels.

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Tags: flight bookings , flight search , hotels , india , india outbound , india travel , international travel , makemytrip , middle class , online travel agencies , online travel companies , religious travel , skift india report , tourism , travel spending , Travel Trends

Photo credit: Weekend getaways have seen the highest growth in the domestic hotels category. Uriel Mont / Pexels

US travel sector faces long wait for China tourism to hit 2019 highs

By Aishwarya Jain

(Reuters) - The U.S. travel sector will have to wait at least two more years for lucrative Chinese tourism to recover to pre-pandemic levels as slow growth and high costs in the Asian country keep its tourists away from America.

The slower-than-expected China travel rebound may further pressure earnings for hotel operators in the U.S. even as they grapple with normalizing domestic travel driven by persistent inflation.

"There was an expectation that as COVID restrictions eased, travel between the U.S. and China, especially tourist travel, would show large demand growth and a return at least to the pre-COVID levels. No such rebound has occurred," said Ryan Yonk, senior research faculty at American Institute for Economic Research.

China gradually began lifting travel-related restrictions from January 2023 and fully lifted group tour restrictions in August last year, but the resultant rise in Chinese arrivals to nearly 1.1 million remains 60% below 2019 levels, according to data from the U.S. National Travel and Tourism Office (NTTO).

That's largely because Chinese tourists are still grappling with an uncertain economy, prioritizing savings and turning to domestic travel or visiting nearby countries to save money.

The Asian American Hotel Owners Association (AAHOA), which represents about 20,000 U.S. hoteliers, said the decline in Chinese tourism has decreased revenue and profitability.

"This, in turn, has led to job losses and financial strain for employees and related workers who rely on international tourism for their livelihoods," the AAHOA said in a statement to Reuters.

Chinese tourists in the U.S. spent a whopping $15 billion in 2019, more than any other market, according the U.S. travel association.

International Trade Administration (ITA) data for 2023 shows that Chinese tourist spending, which stands at an average of $4,137 per visitor, is 123.6% above the average overseas tourist spending at $1,850 per visitor.

Tourists from China also spend about 30% of the total trip budget on accommodations and lodgings, ITA data shows.

The U.S. economy stands to gain $30 billion and 50,000 jobs if China returned to 2019 tourism levels, Commerce Secretary Gina Raimondo said last year.

Analysts have also said rising geopolitical tensions and the high cost of flying between the U.S. and China are weighing on travel as the number of flights between the two countries remains below pre-pandemic levels.

"The generally negative political climate between the U.S. and China does not help with tourism between the two countries," said Patrick Scholes, analyst at Truist Securities.

Nearby countries in Southeast Asia have incentivized Chinese visitors by lifting visa requirements.

Chinese arrivals to Thailand and Singapore jumped 1,187.1% and 942.2% in 2023, remaining below pre-pandemic levels but far higher than a 192.9% gain in the U.S.

While China's outbound tourism to the U.S. is expected to grow in 2024, it is expected to cross pre-pandemic levels only in 2026, the NTTO said.

A report from Economist Intelligence said the overall number of Chinese outbound travelers will remain short of pre‑pandemic levels until 2025.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Syamnath)

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IMAGES

What Is Outbound Tourism And Why Is It Important?
Growth in Worldwide Tourism
What Is Outbound Tourism And Why Is It Important?
The UNWTO Tourism Data Dashboard
OECD Tourism Trends and Policies 2022
6 Key Travel Industry Growth Statistics

COMMENTS

Global tourism: outbound visitor growth by region 2024
Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region [Graph], European Travel Commission, February 2, 2024. [Online].
United States Outbound Tourism Industry Strategies by 2034
United States Outbound Tourism Industry. The US outbound tourism market is soaring, projected to reach a staggering US$ 412.26 billion by 2034, with a growth rate of 14.2% CAGR.This surge in wanderlust presents a golden opportunity for travel businesses to cater to the evolving needs and desires of American vacationers.
Tourism Statistics
Tourism Statistics. Get the latest and most up-to-date tourism statistics for all the countries and regions around the world. Data on inbound, domestic and outbound tourism is available, as well as on tourism industries, employment and complementary indicators. All statistical tables available are displayed and can be accessed individually ...
The UN Tourism Data Dashboard
International Tourism and COVID-19. Export revenues from international tourism dropped 62% in 2020 and 59% in 2021, versus 2019 (real terms) and then rebounded in 2022, remaining 34% below pre-pandemic levels. The total loss in export revenues from tourism amounts to USD 2.6 trillion for that three-year period. Go to Dashboard.
International Tourism to Reach Pre-Pandemic Levels in 2024
Several destinations reported strong growth in international tourism receipts during the first ten to twelve months of 2023, exceeding in some cases growth in arrivals. Strong demand for outbound travel was also reported by several large source markets this period, with many exceeding 2019 levels. ... Chinese outbound and inbound tourism is ...
United States Outbound Tourism Industry Forecast to 2034
The demand for outbound tourism in the United States is expected to be valued at US$ 108.81 billion in 2024 and reach US$ 412.26 billion by 2034. Outbound tourism is expected to progress at an impressive CAGR of 14.2% through 2034. Industry Outlook.
International Tourism Highlights
International tourism trends, 2019. 2. Key trends: • 2019 was another year of strong growth, though international arrivals grew below the exceptional rates seen in 2017 (+7%) and 2018 (+6%). • Demand was somewhat weaker for travel to advanced economy destinations in different regions. • Uncertainty surrounding Brexit, geopolitical and ...
2023 Edition International Tourism Highlights
Tourism in pre-pandemic times: an engine of growth and development 4 2020: The worst year on record for global tourism 5 2021: Another challenging year for tourism 6 ... Outbound tourism 20 Changes in consumer behaviour during the pandemic 21 Purpose of visit and means of transport 22 Statistical Annex 23
Outbound tourism
Globalization is the driving force for modern outbound tourism development and causes strong growth rates and increasing competition within the industry worldwide. The increasing competition for outbound tourists leads to destinations to focus more on specialization and product innovation in order to meet outbound demands from different sources.
India is now the most populous country in the world. And it's ready to
And the tourism industry is no exception. By 2024, Indians are expected to spend more than $42 billion per year on outbound travel, according to recent reports. India is experiencing what Omri ...
Outbound Tourism Market, Tourists Purpose of Visit, Countries
Economic prosperity plays a crucial role in driving outbound tourism. Economic growth is a key factor driving outbound tourism, influencing travel habits as people's and families' financial situation improves. People find themselves with more discretionary income as economies grow and incomes rise, which naturally leads to a desire to spend ...
Outbound Tourism Market Insights: Navigating Growth Rate and ...
According to the latest research, the global Outbound Tourism market size was valued at USD XX million in 2022 and is expected to expand at a CAGR of XX% during the forecast period, reaching USD ...
Global and regional tourism performance
The UNWTO Tourism Data Dashboard - provides statistics and insights on key indicators for inbound and outbound tourism at the global, regional and national levels. Data covers tourist arrivals, tourism receipts, tourism share of exports and contribution to GDP, source markets, seasonality, domestic tourism and data on accommodation and employment.
What Is Outbound Tourism
The growth of outbound tourism leads to increased demand for transportation services, such as airlines, cruise lines, and travel agencies. Accommodation providers such as hotels, resorts, and vacation rentals also benefit from the influx of outbound tourists. Furthermore, restaurants, cafes, tour operators, souvenir shops, and other sectors of ...
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Tourism has massively increased in recent decades. Aviation has opened up travel from domestic to international. Before the COVID-19 pandemic, the number of international visits had more than doubled since 2000. Tourism can be important for both the travelers and the people in the countries they visit. For visitors, traveling can increase their ...
The dynamic linkages among outbound tourism, economic growth, and
Introduction. Over the last 20 years, Chinese outbound tourism has rapidly grown, and the volume of outbound travelers reached 135 million with expenditures of USD 258 billion, reflecting annual growth rates of 5.3% and 3.2%, respectively, in 2017 (UNWTO 2018).International tourism expenditures by Mainland Chinese are the largest of all countries since 2012 (UNWTO 2015).
International Tourism to End 2023 Close to 90% of Pre-Pandemic ...
Tourism spending strong . Strong demand for outbound travel was reported by several large source markets this period, with many exceeding 2019 levels. Germany and the United States spent 13% and 11% more respectively on outbound travel than in the same nine months of 2019, while Italy spent 16% more through August.
Outbound tourism growth, inbound recovery projected
Outbound tourism growth, inbound recovery projected. By Cheng Si. Published:12:27, February 02, ... "The recovery of and boom in outbound tourism were expected after China optimized its COVID-19 control measures starting early last year," said Yang Jinsong, director of the academy's international institute, at a news conference on Thursday. ...
Outbound tourism growth, inbound recovery projected
The tourism academy estimates that the number of inbound visits for 2023 reached 60 to 70 percent of the figure in 2019. Inbound visits by residents of Hong Kong and Macao witnessed a faster ...
Outbound tourism growth, inbound recovery projected
The tourism academy estimates that the number of inbound visits for 2023 reached 60 to 70 percent of the figure in 2019. Inbound visits by residents of Hong Kong and Macao witnessed a faster ...
China preps for tourism boom on May Day holiday as early bookings
China's coming May Day holiday already has the makings of a major tourism rush, with early bookings exceeding pre-pandemic levels and the travel boom likely to fuel a much-desired round of ...
How Indians Are Traveling Now: Top Trends From MakeMyTrip
Spiritual tourism is also leading the growth of tourism in tier-2 and tier-3 cities. MakeMyTrip recorded a 585% increase in searches for Ayodhya in 2023. Gains were 343% for Badrinath, and 359% ...
US travel sector faces long wait for China tourism to hit 2019 highs
By Aishwarya Jain (Reuters) - The U.S. travel sector will have to wait at least two more years for lucrative Chinese tourism to recover to pre-pandemic levels as slow growth and high costs in the ...
Souring China dreams force Western financial firms to cut costs
And China's onshore fund market saw a muted 6% growth in assets last year after a 1% rise in 2022, slowing from an annual jump of more than 27% in both 2020 and 2021. Reuters Graphics Reuters Graphics

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Outbound Tourism Market by Purpose Type (Business, Holiday/Leisure, VFR & Others) by Tourist Type (Domestic, International) by Tour Type (Independent Traveller, Package Traveller, Tour Group) and Region, Global trends and forecast from 2024 to 2030

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The dynamic linkages among outbound tourism, economic growth, and international trade: empirical evidence from China

Alastair M. Morrison

Tsung-Pao Wu

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