In-destination spending is benefiting from the recovery of tourism, with pent-up demand and revenge travel driving trips abroad and powering visitor spending. Shopping is receiving a boost from the return of Chinese travellers after the removal of the country’s zero COVID-19 policy. In-destination spending is a key vehicle for sustainable tourism, with revenue kept in-destination creating jobs and opportunities for local communities.
This report comes in PPT.
In-destination spending worldwide is growing in line with the rebound in tourism as pent-up demand and revenge travel internationally, powers forward. In 2022, in-destination spending reached USD2,187 billion and is expected to grow 6.9% over 2023-2027.
Shopping remains the dominant category for in-destination spending, encompassing retail and duty-free shopping. In 2023, the market is expected to be valued at USD831 billion in constant prices. Asia Pacific is a particularly strong market for shopping, with the activity seen by many as a critical component of their trip.
China and the US are by far the most dominant markets for in-destination spending, due to the size of their domestic tourism sectors. The markets continue to battle for first position, with China overtaking the US in 2023, as pent-up demand and revenge travel kicked in.
In-destination spending is benefiting from converging megatrends, such as Experience More and Sustainability, as consumers increasingly seek curated experiences that are steeped in local culture and gastronomy. This is a win win for destinations where much needed tourism spending remains in-destination, whilst creating jobs and opportunities for local communities.
In the key growth destinations of India and Thailand, the return of China to global tourism will provide much-needed revenue, spent in-destination. In addition, the return of Chinese travellers will deliver growth, job creation and a sustainable future for travel and tourism.
Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.
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