A new detailed study of the global leisure travel market revealed what we think is excellent news for those of us who love to explore. The report concludes that leisure travel will begin growing again as early as this ear.
The global leisure travel market size was valued at $1,006.5 billion in 2019, and is projected to reach $1,737.3 billion by 2027, registering a CAGR of 22.6% from 2021 to 2027.
The leisure travel economy comprised of a well-entrenched biosphere of industries including but not limited to logistics, accommodation, food, retail, recreation and other tourism services Companies, large and small in associated industries continuously strive to create experiences bringing people together, support communities and boosting economics of country. Substantial investment on tourism have multiplier effects in the expansion of economy including infrastructure development, stimulating private investment, aggregate demand and jobs. Tourism offers direct and indirect aid to a nation’s economy as a result past few years have saw remarkable growth in the attention paid by tourism development experts, policy makers, and industry leaders especially in the developing region of Asia-pacific and Africa region.
Over the next 6 years the leisure travel industry is expected to increase by nearly a trillion dollars. That’s good news for everyone who longs for a return of tourism.
Recent years have seen paradigm shift towards experience rather than goods. Spending on consumer durables, apparels have seen faltering however, experiential spending on recreation, travel, and eating have seen rapid growth. As a result, travel is outpacing demand for goods. The trend is in sync with growing number of global outbound tourists in the last few years. The robust growth is expected to continue in the estimated future, driven primarily by the expansion of low cost airlines, government initiatives and technological advancements.
While the expansion in tourism industry has led to creation of jobs, a proliferation of tour operators, and increased ease in booking accommodation, logistics and services, the push comes with its own set of unique challenges – economic slowdown, infrastructure, and political tensions, among other.