what are the tourism industry sectors

Complete Overview of the 5 Sectors in the Tourism Industry

Overview of the sectors in tourism

The interplay of sectors in tourism, impact of each sector on the tourism industry, challenges and opportunities in each sector.

The tourism industry is one of the most dynamic landscapes . That’s primarily because it consists of several unique sectors. Each one of these sectors goes through comprehensive changes and is subject to many factors. 

Nevertheless, understanding these sectors is quite essential! Why? Because it can help you make informed business decisions, identify valuable growth opportunities, future-proof your travel brand, and, ultimately, set it up for success.

Below you can find an in-depth analysis of the different sectors in tourism, how they affect each other, and the industry as a whole. Finally, you will discover unique challenges and opportunities for each sector.

The tourism vertical is quite extensive. It consists of six sectors, making it one of the most diverse industries. These sectors are transportation, accommodation, food and beverage, travel agencies, and attractions. Let’s take a closer look at the sectors, their sizes, and their economic impact.

Transportation in Tourism

Transportation in tourism is a big sector. It encompasses a wide range of forms of travel and enables tourists to reach their destinations safely and efficiently. The sub-sectors include air travel, land transportation, and maritime travel. 

When it comes to inbound tourism, air travel comprises the largest share, 57% . Travelers trying to reach faraway destinations often choose from various travel options. One can actually gauge the momentum of the tourism sector recuperation after the COVID-19 pandemic by looking at air transportation trends. The latest report states that total air traffic is up by 52% compared to 2022 . 

Land transportation for tourists has been increasing in recent years. A recent study reveals that car transportation makes up 77% of all journeys . The reasons that explain this trend are flexibility, price, and independence. 

Maritime travel or cruise tourism is also experiencing steady growth. This subsector is estimated to continue to grow at a CAGR of 10.4% from 2022 to 2031 .

Transportation is one of the pillars of the tourism industry, and as such, it has a tremendous economic impact on the vertical – its efficient functioning is critical for not only attracting tourists to destinations but also enabling them to reach their desired locations . It allows companies to generate revenue through ticket sales. However, by enabling tourists to reach their destinations, it also drives economic activity in hospitality.

Accommodation in Tourism

All the lodging options tourists can choose from comprise the accommodation subsector of the tourism industry. It includes hotels, resorts, hostels, vacation rentals, Airbnb, and more.  

The hotel occupancy rates metric is the best one to keep track of the developments in this subsector simply because there are almost 750,000 hotels and resorts worldwide . In April 2022, hotel occupancy rates were highest in the Americas, reaching 64% . Europe was in second place with the hotel occupancy rates at 63%, followed by the Middle East and Africa at 49% and the Asia Pacific at 48%. 

When it comes to the economic impact, the best metric to track is revenue per available room or RevPAR. The RevPar reached $93.27 in 2022, an 8.1% increase compared to 2019 . The average daily rate is up by 13.6%, which makes $148.83 for the same period. Occupancy rates are still not at the pre-pandemic level, but with only a 4.9% difference, they are getting there. 

The revenue this sector generates has a tremendous impact. The money is used toward creating new jobs, developing infrastructure, and boosting local economies. Local communities and governments also benefit from the taxes and fees collected from accommodation providers. 

Food and Beverage in Tourism

The food and beverage tourism sector is quite diverse and doesn’t just include restaurants and cafes. It also encompasses various dining establishments where tourists can experience local culinary traditions and cuisine.

According to the National Restaurant Association research, the sales in the fine dining segment to travelers and visitors went down by 41% . However, total restaurant industry sales are projected to reach $.1.2 trillion by 2030 , and traveler purchases will significantly contribute to this positive development. The food tourism market is projected to reach $1,796.5 billion by 2027 in size, which is a 16.8% growth given that its size in 2022 is $1,116.7 billion. 

One of the most extensive studies done recently encompassed the data from over 50,000 travelers to conclude that 64% of travelers base their traveling decisions on the food and drink options available at their destination. 

There are two sides to the economic impact of food and beverage in tourism. First, it helps generate more direct revenue, and second, it fosters culinary entrepreneurship and can significantly boost agricultural and food production sectors. It can also help create more job opportunities.

Travel Agencies and Tour Operators 

Travel agencies are travel brands that specialize as intermediaries. They provide tourists with access to accommodation and other tourism options. Travel agencies can also offer various services, such as tour packages, accommodation reservations, and transportation booking . 

Online travel agencies or OTAs are currently dominating this space. In 2022, the online global travel market size reached $475 billion and is projected to reach over one trillion US dollars by 2030. OTAs, including the most significant players such as Booking.com, Trip.com, and Expedia, captured over 40% of the total market . 

While travel agencies continue to generate revenue, it’s important to note that global travel agency revenue is growing at a CAGR of 2.5% . 

Travel agencies, both offline and online, are vital parts of the entire travel ecosystem. They both contribute to the whole sector and facilitate tourism overall. Travel agencies stimulate economic activity through other sectors as they are responsible for actually funneling tourists to destinations. They also help create new jobs, improve travel satisfaction, and ensure repeat business.

Tour operators, the companies that create packages for travel agencies to sell, also make up a sizable sub-sector. The market size of the tour operators industry in the US in 2022 was $8.6 billion . The US market will continue to grow at a CAGR of 17% to reach $30 billion in size by 2023 . Across the ocean, we have Europe, with its tour operator market size projected to reach $74 billion by 2026 , with Germany as the leader in the field with a market size of $24 billion.

Tourism Attractions

Tourism attraction is a place of interest. Generally speaking, tourism attractions’ primary role is to attract tourists to a particular destination. It can be anything from natural wonders and historical sites to museums and cultural landmarks. 

According to the latest data , the most visited attractions are spread across the globe. These include Nagashima Spa Land, Japan; Universal Studio, USA; Palace of Versailles, France; and Bourbon Street, USA.

Theme parks are also among the most popular tourist attractions. In 2022, these parks attracted almost 200 million visitors . The museums are right behind theme parks, with an attendance of 57 million. 

Tourism attractions also have a significant economic impact. They support jobs in the vicinity, boost local economies, and positively impact the overall tourist experience. They are also the number one factor that often drives visitation. 

The most important thing to understand about sectors in the tourism industry is that they are not separated from one another. In fact, the interplay of sectors in tourism is quite elaborate and happens on so many different levels. 

Let’s start with transportation. The affordable, dependable, and reliable means of transportation can facilitate visitation. Transportation is also responsible for the tourist experience. It can improve access to tourism attractions, make tourism agencies more attractive, and drive sales in the accommodation and food and beverage sectors. 

Accommodation in tourism often interplays with travel agencies. It can help improve the brand image of a travel agency by enhancing the stay experience. It can also lead to increased food and beverage sales if the hotel or a resort has its own facilities, such as a restaurant or bar. In return, the food and beverage sector can improve the standing of accommodations and destinations in the eyes of travelers.

Travel agencies interplay with all of the sectors. The services they offer have to live up to the descriptions found on the websites. They can help boost the average daily rates for accommodation providers, increase booking rates at transportation companies, and bring more people to attractions. 

The best way to look for the interplay of sectors in tourism is to closely examine partnerships. The transportation, accommodation, and other various travel brands have recognized the value of the interplay and decided to partner up to reap even more benefits. 

The most common are partnerships between airlines, hotels, and travel agencies. It enables airlines to remain competitive while helping hotels and travel agencies maintain high customer satisfaction and enhanced travel experience.  

The real-world example that comes to mind is Wilderness Safaris’ partnership with Qatar Airways . The big hospitality brand wanted its guests to arrive well-fed & rested, ready to engage in adventures in the great outdoors. Given that Qatar Airways received high marks in the catering and business class areas, it was the perfect pick for Wilderness Safaris.

Another real-world example is AEGAN’s partnership with Booking.com. Here, we have a transportation company and OTA joining forces together to reap unique benefits. AEGAN, an airline brand, wanted its customers to be able to conveniently check hotel availability in real-time, book accommodation at competitive prices, and benefit from friendly cancellation policies. 

To encourage travelers to choose AEGAN services through Booking.com, the company also launched the Frequent Flyer Program and awarded consumers extra miles with every hotel booking using AEGAN transportation services.

As one of the largest industries, the tourism vertical contributes 10% of all jobs or 333 million . All sectors contribute to job creation and the global tourism market size of $2.4 trillion . 

Accommodation and food and beverage sectors have a significant impact on the tourism industry as well. In terms of GDP, these sectors contributed 3.3% , a significant growth, given that the US average is 2.87% .

In raw numbers, it looks like the following. Global accommodation in tourism generates $903 billion . Almost half of it, 49%, comes from the USA sector. Europe, APAC, Middle East, and Africa contribute with their shares of 25%, 22%, 3%, and 2%, respectively. The global hotel and resort industry currently employs approximately 10.5 million people . 

The global travel agency services industry’s revenue has reached $475 in 2023 . Travel agencies in the US employ 402,835 people. Over the last 5 years, the number of people working in the travel agency sector went up by 12%. On a global scale, travel agencies employ approximately 2 million people . 

While every industry and sub-sector is unique, they all share a few things in common. In each one of them, you can find a couple of opportunities and encounter a few challenges. Let’s see what challenges and opportunities there are in each sector. 

Transportation in tourism

Challenges:

• Ever-increasing prices of fuel – to remain profitable, airlines need to manage operational costs, and one of the enormous costs is fuel;
• Becoming green – transportation companies need to reduce carbon emissions and adopt sustainable travel practices, which can be challenging and costly;
• Infrastructure in remote destinations – building roads and developing infrastructure can be pretty challenging in remote destinations with tremendous tourism potential.

Opportunities:

• Using technological advancements – transportation technologies can help improve customer experience and improve operational efficiencies;
• Implementing sustainable practices – becoming eco-friendly can help brands attract environmentally conscious travelers;
• Improving connectivity – with connectivity expansion, transportation brands can help local economies and create new tourism opportunities.

Accommodation in tourism

• Online offer – as more and more competitors join online marketplaces, accommodation providers need to embrace a new paradigm;
• Overtourism – limited accommodation capacity is a massive problem in destinations where over-tourism is a norm;
• Guest safety and security – in some situations and locations, accommodation providers can struggle with ensuring guest safety and security.
• Going digital – embracing cutting-edge technologies can help enhance guest experience and ensure longer and repeat stays;
• Personalized accommodation – offering boutique and experiential lodging can help accommodation providers cater to modern travelers;
• Partnerships – aligning with relevant companies and local brands can help providers attract more travelers.

Food and beverage in tourism

• Quality and safety of food – upholding the highest food quality and safety standards can be challenging;
• Fluctuating demand – seasonal destinations can struggle with handling fluctuating food and beverage demand;
• Shifting dietary preferences – guests may have diverse dietary preferences, which require planning and management.
• Innovation – innovative dishes and fusion cuisines can attract guests who feel more adventurous;
• Farm-to-table – cooperating with local farmers can help bring fresh ingredients to restaurants;
• Focus on local cuisine – bringing local dishes into the spotlight can help attract people interested in authentic cuisine.

Travel agencies

• Harsh competition – travel agencies have to compete against hundreds of online travel booking platforms;
• Tailored services – many travelers look for personalized experiences, which can prove hard to provide if you are a small agency;
• Agility is required – getting ready for a wide range of disruptions is costly and hard to sustain at scale.
• Customization – offering unique packages can help generate more bookings;
• Multi-channel presence – being present across online and offline channels is paramount;
• Focus on a niche market – staying focused on a specific travel niche can help you truly cater to the needs of your target customers.

Tourism attractions

• Preservation – sustainable management of tourism attractions can be challenging; 
• Seasonality – if traction generates the majority of the revenue through seasonal visitors, it can be a problem;
• Infrastructure demand – a growing number of visitors can cause infrastructure strain.
• Collaboration – partnerships can help create a better ecosystem;
• Interpretive guides and interactive displays – interpretive experiences can delight a wide range of visitors;
• Expanding offer – You can offer new activities to make the offer more attractive.

As you can see, the tourism industry landscape is quite comprehensive, with a lot of moving pieces on the board, and the best way to understand the vertical is to take a look at its subsectors.

Hopefully, now you understand transportation, accommodation, food and beverage, travel agencies, and tourism attraction sectors better. They are all intertwined, with many interplay activities. While the tourism sector comes with its fair share of challenges, there are also many opportunities. The current stats and projections tell us that all subsectors are prosperous and expected to grow in the foreseeable future. 

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Marc Truyols has a degree in Tourism from the University of the Balearic Islands. Marc has extensive experience in the leisure, travel and tourism industry. His skills in negotiation, hotel management, customer service, sales and hotel management make him a strong business development professional in the travel industry.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Tourism’s Importance for Growth Highlighted in World Economic Outlook Report

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• 10 Nov 2023

Tourism has again been identified as a key driver of economic recovery and growth in a new report by the International Monetary Fund (IMF). With UNWTO data pointing to a return to 95% of pre-pandemic tourist numbers by the end of the year in the best case scenario, the IMF report outlines the positive impact the sector’s rapid recovery will have on certain economies worldwide.

According to the World Economic Outlook (WEO) Report , the global economy will grow an estimated 3.0% in 2023 and 2.9% in 2024. While this is higher than previous forecasts, it is nevertheless below the 3.5% rate of growth recorded in 2022, pointing to the continued impacts of the pandemic and Russia's invasion of Ukraine, and from the cost-of-living crisis.

Tourism key sector for growth

The WEO report analyses economic growth in every global region, connecting performance with key sectors, including tourism. Notably, those economies with "large travel and tourism sectors" show strong economic resilience and robust levels of economic activity. More specifically, countries where tourism represents a high percentage of GDP   have recorded faster recovery from the impacts of the pandemic in comparison to economies where tourism is not a significant sector.

As the report Foreword notes: "Strong demand for services has supported service-oriented economies—including important tourism destinations such as France and Spain".

Looking Ahead

The latest outlook from the IMF comes on the back of UNWTO's most recent analysis of the prospects for tourism, at the global and regional levels. Pending the release of the November 2023 World Tourism Barometer , international tourism is on track to reach 80% to 95% of pre-pandemic levels in 2023. Prospects for September-December 2023 point to continued recovery, driven by the still pent-up demand and increased air connectivity particularly in Asia and the Pacific where recovery is still subdued.

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Reimagining the $9 trillion tourism economy—what will it take?

Tourism made up 10 percent of global GDP in 2019 and was worth almost $9 trillion, 1 See “Economic impact reports,” World Travel & Tourism Council (WTTC), wttc.org. making the sector nearly three times larger than agriculture. However, the tourism value chain of suppliers and intermediaries has always been fragmented, with limited coordination among the small and medium-size enterprises (SMEs) that make up a large portion of the sector. Governments have generally played a limited role in the industry, with partial oversight and light-touch management.

COVID-19 has caused an unprecedented crisis for the tourism industry. International tourist arrivals are projected to plunge by 60 to 80 percent in 2020, and tourism spending is not likely to return to precrisis levels until 2024. This puts as many as 120 million jobs at risk. 2 “International tourist numbers could fall 60-80% in 2020, UNWTO reports,” World Tourism Organization, May 7, 2020, unwto.org.

Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive for tourists, and economically viable will require coordination at a level not seen before. The public sector may be best placed to oversee this process in the context of the fragmented SME ecosystem, large state-owned enterprises controlling entry points, and the increasing impact of health-related agencies. As borders start reopening and interest in leisure rebounds in some regions , governments could take the opportunity to rethink their role within tourism, thereby potentially both assisting in the sector’s recovery and strengthening it in the long term.

In this article, we suggest four ways in which governments can reimagine their role in the tourism sector in the context of COVID-19.

1. Streamlining public–private interfaces through a tourism nerve center

Before COVID-19, most tourism ministries and authorities focused on destination marketing, industry promotions, and research. Many are now dealing with a raft of new regulations, stimulus programs, and protocols. They are also dealing with uncertainty around demand forecasting, and the decisions they make around which assets—such as airports—to reopen will have a major impact on the safety of tourists and sector employees.

Coordination between the public and private sectors in tourism was already complex prior to COVID-19. In the United Kingdom, for example, tourism falls within the remit of two departments—the Department for Business, Energy, and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media & Sport (DCMS)—which interact with other government agencies and the private sector at several points. Complex coordination structures often make clarity and consistency difficult. These issues are exacerbated by the degree of coordination that will be required by the tourism sector in the aftermath of the crisis, both across government agencies (for example, between the ministries responsible for transport, tourism, and health), and between the government and private-sector players (such as for implementing protocols, syncing financial aid, and reopening assets).

Concentrating crucial leadership into a central nerve center  is a crisis management response many organizations have deployed in similar situations. Tourism nerve centers, which bring together public, private, and semi-private players into project teams to address five themes, could provide an active collaboration framework that is particularly suited to the diverse stakeholders within the tourism sector (Exhibit 1).

We analyzed stimulus packages across 24 economies, 3 Australia, Bahrain, Belgium, Canada, Egypt, Finland, France, Germany, Hong Kong, Indonesia, Israel, Italy, Kenya, Malaysia, New Zealand, Peru, Philippines, Singapore, South Africa, South Korea, Spain, Switzerland, Thailand, and the United Kingdom. which totaled nearly $100 billion in funds dedicated directly to the tourism sector, and close to $300 billion including cross-sector packages with a heavy tourism footprint. This stimulus was generally provided by multiple entities and government departments, and few countries had a single integrated view on beneficiaries and losers. We conducted surveys on how effective the public-sector response has been and found that two-thirds of tourism players were either unaware of the measures taken by government or felt they did not have sufficient impact. Given uncertainty about the timing and speed of the tourism recovery, obtaining quick feedback and redeploying funds will be critical to ensuring that stimulus packages have maximum impact.

2. Experimenting with new financing mechanisms

Most of the $100 billion stimulus that we analyzed was structured as grants, debt relief, and aid to SMEs and airlines. New Zealand has offered an NZ $15,000 (US $10,000) grant per SME to cover wages, for example, while Singapore has instituted an 8 percent cash grant on the gross monthly wages of local employees. Japan has waived the debt of small companies where income dropped more than 20 percent. In Germany, companies can use state-sponsored work-sharing schemes for up to six months, and the government provides an income replacement rate of 60 percent.

Our forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. This prolonged period of low demand means that the way tourism is financed needs to change. The aforementioned types of policies are expensive and will be difficult for governments to sustain over multiple years. They also might not go far enough. A recent Organisation for Economic Co-operation and Development (OECD) survey of SMEs in the tourism sector suggested more than half would not survive the next few months, and the failure of businesses on anything like this scale would put the recovery far behind even the most conservative forecasts. 4 See Tourism policy responses to the coronavirus (COVID-19), OECD, June 2020, oecd.org. Governments and the private sector should be investigating new, innovative financing measures.

Revenue-pooling structures for hotels

One option would be the creation of revenue-pooling structures, which could help asset owners and operators, especially SMEs, to manage variable costs and losses moving forward. Hotels competing for the same segment in the same district, such as a beach strip, could have an incentive to pool revenues and losses while operating at reduced capacity. Instead of having all hotels operating at 20 to 40 percent occupancy, a subset of hotels could operate at a higher occupancy rate and share the revenue with the remainder. This would allow hotels to optimize variable costs and reduce the need for government stimulus. Non-operating hotels could channel stimulus funds into refurbishments or other investment, which would boost the destination’s attractiveness. Governments will need to be the intermediary between businesses through auditing or escrow accounts in this model.

Joint equity funds for small and medium-size enterprises

Government-backed equity funds could also be used to deploy private capital to help ensure that tourism-related SMEs survive the crisis (Exhibit 2). This principle underpins the European Commission’s temporary framework for recapitalization of state-aided enterprises, which provided an estimated €1.9 trillion in aid to the EU economy between March and May 2020. 5 See “State aid: Commission expands temporary framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak,” European Commission, May 8, 2020, ec.europa.eu. Applying such a mechanism to SMEs would require creating an appropriate equity-holding structure, or securitizing equity stakes in multiple SMEs at once, reducing the overall risk profile for the investor. In addition, developing a standardized valuation methodology would avoid lengthy due diligence processes on each asset. Governments that do not have the resources to co-invest could limit their role to setting up those structures and opening them to potential private investors.

3. Ensuring transparent, consistent communication on protocols

The return of tourism demand requires that travelers and tourism-sector employees feel—and are—safe. Although international organizations such as the International Air Transport Association (IATA), and the World Travel & Tourism Council (WTTC) have developed a set of guidelines to serve as a baseline, local regulators are layering additional measures on top. This leads to low levels of harmonization regarding regulations imposed by local governments.

Our surveys of traveler confidence in the United States  suggests anxiety remains high, and authorities and destination managers must work to ensure travelers know about, and feel reassured by, protocols put in place for their protection. Our latest survey of traveler sentiment in China  suggests a significant gap between how confident travelers would like to feel and how confident they actually feel; actual confidence in safety is much lower than the expected level asked a month before.

One reason for this low level of confidence is confusion over the safety measures that are currently in place. Communication is therefore key to bolstering demand. Experience in Europe indicates that prompt, transparent, consistent communications from public agencies have had a similar impact on traveler demand as CEO announcements have on stock prices. Clear, credible announcements regarding the removal of travel restrictions have already led to increased air-travel searches and bookings. In the week that governments announced the removal of travel bans to a number of European summer destinations, for example, outbound air travel web search volumes recently exceeded precrisis levels by more than 20 percent in some countries.

The case of Greece helps illustrate the importance of clear and consistent communication. Greece was one of the first EU countries to announce the date of, and conditions and protocols for, border reopening. Since that announcement, Greece’s disease incidence has remained steady and there have been no changes to the announced protocols. The result: our joint research with trivago shows that Greece is now among the top five summer destinations for German travelers for the first time. In July and August, Greece will reach inbound airline ticketing levels that are approximately 50 percent of that achieved in the same period last year. This exceeds the rate in most other European summer destinations, including Croatia (35 percent), Portugal (around 30 percent), and Spain (around 40 percent). 6 Based on IATA Air Travel Pulse by McKinsey. In contrast, some destinations that have had inconsistent communications around the time frame of reopening have shown net cancellations of flights for June and July. Even for the high seasons toward the end of the year, inbound air travel ticketing barely reaches 30 percent of 2019 volumes.

Digital solutions can be an effective tool to bridge communication and to create consistency on protocols between governments and the private sector. In China, the health QR code system, which reflects past travel history and contact with infected people, is being widely used during the reopening stage. Travelers have to show their green, government-issued QR code before entering airports, hotels, and attractions. The code is also required for preflight check-in and, at certain destination airports, after landing.

4. Enabling a digital and analytics transformation within the tourism sector

Data sources and forecasts have shifted, and proliferated, in the crisis. Last year’s demand prediction models are no longer relevant, leaving many destinations struggling to understand how demand will evolve, and therefore how to manage supply. Uncertainty over the speed and shape of the recovery means that segmentation and marketing budgets, historically reassessed every few years, now need to be updated every few months. The tourism sector needs to undergo an analytics transformation to enable the coordination of marketing budgets, sector promotions, and calendars of events, and to ensure that products are marketed to the right population segment at the right time.

Governments have an opportunity to reimagine their roles in providing data infrastructure and capabilities to the tourism sector, and to investigate new and innovative operating models. This was already underway in some destinations before COVID-19. Singapore, for example, made heavy investments in its data and analytics stack over the past decade through the Singapore Tourism Analytics Network (STAN), which provided tourism players with visitor arrival statistics, passenger profiling, spending data, revenue data, and extensive customer-experience surveys. During the COVID-19 pandemic, real-time data on leading travel indicators and “nowcasts” (forecasts for the coming weeks and months) could be invaluable to inform the decisions of both public-sector and private-sector entities.

This analytics transformation will also help to address the digital gap that was evident in tourism even before the crisis. Digital services are vital for travelers: in 2019, more than 40 percent of US travelers used mobile devices to book their trips. 7 Global Digital Traveler Research 2019, Travelport, marketing.cloud.travelport.com; “Mobile travel trends 2019 in the words of industry experts,” blog entry by David MacHale, December 11, 2018, blog.digital.travelport.com. In Europe and the United States, as many as 60 percent of travel bookings are digital, and online travel agents can have a market share as high as 50 percent, particularly for smaller independent hotels. 8 Sean O’Neill, “Coronavirus upheaval prompts independent hotels to look at management company startups,” Skift, May 11, 2020, skift.com. COVID-19 is likely to accelerate the shift to digital as travelers look for flexibility and booking lead times shorten: more than 90 percent of recent trips in China  were booked within seven days of the trip itself. Many tourism businesses have struggled to keep pace with changing consumer preferences around digital. In particular, many tourism SMEs have not been fully able to integrate new digital capabilities in the way that larger businesses have, with barriers including language issues, and low levels of digital fluency. The commission rates on existing platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.

Governments are well-positioned to overcome the digital gap within the sector and to level the playing field for SMEs. The Tourism Exchange Australia (TXA) platform, which was created by the Australian government, is an example of enabling at scale. It acts as a matchmaker, connecting suppliers with distributors and intermediaries to create packages attractive to a specific segment of tourists, then uses tourist engagement to provide further analytical insights to travel intermediaries (Exhibit 3). This mechanism allows online travel agents to diversify their offerings by providing more experiences away from the beaten track, which both adds to Australia’s destination attractiveness, and gives small suppliers better access to customers.

Governments that seize the opportunity to reimagine tourism operations and oversight will be well positioned to steer their national tourism industries safely into—and set them up to thrive within—the next normal.

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Margaux Constantin is an associate partner in McKinsey’s Dubai office, Steve Saxon is a partner in the Shanghai office, and Jackey Yu  is an associate partner in the Hong Kong office.

The authors wish to thank Hugo Espirito Santo, Urs Binggeli, Jonathan Steinbach, Yassir Zouaoui, Rebecca Stone, and Ninan Chacko for their contributions to this article.

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Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

• Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
• Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
• Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
• Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

• The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
• Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
• The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
• The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
• By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

Have you read?

Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

• Topics ›
• COVID-19: impact on the tourism industry worldwide ›

International Tourism to Surpass Pre-Pandemic Levels in 2024

Tourism recovery after covid-19.

While few industries were spared by the impact of the Covid-19 pandemic over the past three years, even fewer have been hit as hard as the tourism sector . After Covid-19 had made 2020 " the worst year in tourism history ", international tourist arrivals increased by just 13 percent in 2021, as travel restrictions remained in place for long periods in many parts of the world. Now, nearly four years after the WHO declared Covid-19 a pandemic, optimism has finally returned to the industry.

According to the UNWTO World Tourism Barometer , global tourism continued its recovery in 2023, ending the year at 88 percent of pre-pandemic levels, with an estimated 1.3 billion international tourist arrivals. China's reopening earlier in 2023 had marked another milestone on the road to full recovery, after the region long trailed behind the rest of the world. In the first nine months of 2023, international tourist arrivals in the Asia-Pacific region reached 62 percent of pre-pandemic levels, with a clear upward trend towards the end of that period. That's a significant improvement compared to 2022, when the region saw just 26 percent of 2019 arrivals due to ongoing travel restrictions, especially in China.

Citing the “unleashing of remaining pent-up demand, increased air connectivity, and a stronger recovery of Asian markets and destinations”, the UNWTO now expects international tourism to make a full recovery by the end of 2024. This is no mean feat considering the challenging economic backdrop and the uncertainties associated with lingering geopolitical tensions and several ongoing conflicts.

Prior to the coronavirus outbreak, the global tourism sector had seen almost uninterrupted growth for decades. Since 1980, the number of international arrivals skyrocketed from 277 million to nearly 1.5 billion in 2019. As our chart shows, the two largest crises of the past decades, the SARS epidemic of 2003 and the global financial crisis of 2009, were minor bumps in the road compared to the Covid-19 pandemic.

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This chart shows international tourist arrivals worldwide since 1990.

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What are Sectors of Tourism? Accommodation, Transportation, Intermediaries

• Post last modified: 28 August 2021
• Reading time: 15 mins read
• Post category: Tourism

What are Sectors of Tourism?

Tourism is an economic, environmental, and socio-cultural phenomenon. It reaches various sectors of the economy and society and it involves many different forms, such as leisure tourism, sports tourism, cultural tourism, business tourism, conference, and exhibition tourism, tourism for religious reasons, and Eco-tourism.

Table of Content

• 1 What are Sectors of Tourism?
• 2 Sectors of Tourism
• 3.1 Resort Hotel
• 3.2 Airport Hotel
• 3.3 Bed & Breakfast (B&B)
• 4.1 Transport by Air
• 4.2 Transport by Sea or Water
• 4.3 Road Transport
• 4.4 Rail Transport
• 5.1 Types of Intermediaries
• 5.2 Travel Agencies
• 5.3 Tour Operators
• 5.4 Corporate client travel agencies
• 5.5 Sightseeing tour companies
• 6 Merits of using Intermediaries (Travel Agency)

The broad nature of tourism makes it quite difficult to be defined and there is no universally accepted definition of it As tourism development has both positive and negative effects on the tourist location, the study will also discuss what are the factors reducing the positive effects of tourism and then what strategies should be adopted in order to reduce the negative effects and maximize the positive.

Sectors of Tourism

These are some various sectors of the tourism industry:

Accommodation

• Transportation
• Intermediaries

Accommodation is a temporary home for travelers. It ranges from simple sleeping places to deluxe suites for eating, entertainment, and sleeping. Travelers can stay overnight in any kind of lodging from an African treehouse to a castle in Europe.

The accommodation industry is made up of hotels, motels (motor hotels), resort hotels, campgrounds, hostels, and guesthouses. Hotels are classified in various ways. One of the most common ways is by location, such as resort, city center, airport, suburban, or highway.

Types of Hotels:

Resort Hotel

Airport hotel, bed & breakfast (b&b).

A resort hotel can be considered as a destination itself. It offers a full range of services and amenities for the guests to enjoy their vacations within the property. Typical features of a resort hotel include restaurants, shops, sporting facilities, pools, spas, casinos, and even private beaches.

Examples: 1. Hong Kong Gold Coast Hotel , 2. Mission Hills Resort Shenzhen in China .

Airport hotels are located in or near airports. This type of accommodation is selected by travelers for necessity. A major feature of airport properties is convenient for early morning departures or late evening arrivals. It is mainly for airline crew members and passengers with overnight layovers r canceled flights.

Example: Hong Kong Regal Airport Hotel .

B&B is a guest house or private house providing clean, attractive accommodation and breakfast. The B&Bs offer a home-like atmosphere. The owner of the B&B usually lives on the premises and provides all the necessary labor. Community breakfasts with other lodgers and hosts enhance this atmosphere.

The other way of classification is rating (grading), for example, five-star, four-star, three-star, two-star hotels. This grading system is commonly used in China.

Types of Transportation

There are a number of different types of transportation modes: air, water, road and rail. The various types of transport modes can be subdivided into:

Transport by Air

Transport by sea or water, road transport, rail transport.

Air Transport First-class travelers enjoy the privacy of their own private cabin area with seats that can be converted into 6’6″ flatbeds. Plenty of good food, in-flight entertainment, and a personal video screen is provided.

They are also welcome to use the arrivals lounge. Business-class travelers have wide comfortable seats with plenty of legroom. They can also enjoy good food, free drinks, and complimentary newspapers. Economy-class travelers though have narrower seats, still are provided with suitable services and meals.

In general, most of the airlines provide different classes on board; they are first, business and economy class. Some airlines nowadays introduced ‘premium economy class’. This class of service offers better individual service (e.g. more comfortable seat) to passengers at a lower price comparing with business-class service.

What is a cruise? A cruise is a vacation trip by ship. This definition excludes traveling by water for primarily transportation purposes. It offers the passengers a chance to relax in comfortable surroundings, with attentive service, good food, and a liner that changes the scenery from time to time.

Despite the potential positive impact of cruise tourism to the local economy, there is also a danger the local tourism industry faces is that cruise tourism can displace other forms of tourism as hotels and tours fill with cruise passengers, reducing the capacity for other tourists.

Cruise ships are basically self-contained destinations where guests live, eat, are entertained, and travel. Cruises are voyages taken for pleasure and not only for the purpose of transport. Most cruises start and end at the same port. A cruise with all-inclusive fare nowadays may combine:

Transportation costs such as airfare between cruise passengers’ point of origin and the destination port. Sometimes the cost of accommodation at the destination port is included in the all-inclusive fare.

Traveling by road is the most flexible and economical form of mass transportation. Modern motorway networks have made major cities easily accessible.

Coach Services

• Local Service.
• Regional – between Hong Kong and Shenzhen.
• International express services – services between Canada and United States in North America.
• Tour and sightseeing operations.
• Shuttle buses for airport transfers.

Car Services

Car travelers have greater freedom in choosing their route, destination, and timing of their journey. Examples are Private cars for rental, Taxis, Private cars.

Business and vacation travelers book car rentals for different reasons. Business travelers are looking for a convenient and reliable form of ground transportation to get them from point A to point B with the minimum amount of fuss and bother.

Vacation travelers are looking for a comfortable form of transportation to places where they plan to visit but these places are not easily accessible by public transportation.

The importance of rail travel has given way to private cars and air travel, but is picking up now since a number of services have been designed specifically for the tourist trade on a local and international level.

Examples include “Orient Express” in Europe and “Indian-Pacific” across Australia. Others include the “Trans-Siberian Railway” and the “Bullet Train” of Japan.

Examples of Other Rail Transport: Underground train services in a most urban city, Airport express train service; and Scenic rails.

One of the world’s eminent traveling experiences is to travel on a luxury train. Traversing the world’s varied landscapes along alternative train routes, the train combines all the comfort and luxury of a five-star hotel with a globally unparalleled journey.

Intermediaries in Tourism

Intermediaries are “Middle-Men”, acting as a link between the customer and the supplier. In the travel business, the suppliers consist of airlines, cruise and ferry companies, coach/bus companies, railways, hotels and motels, and car rental agencies.

The customers include holidaymakers, business travelers, and those visiting friends and relatives.

Tourism and the Structure of the Tourism Industry Travel agencies, in their role as “middlemen,” combine tourism activities originally carried out on an unconnected, individual basis, linking customers with tourism service suppliers and thereby promoting the development of the tourism industry.

Tourism service suppliers include airlines, hotels, restaurants, car hire companies, and companies that operate reception services at destinations.

Types of Intermediaries

Types of Intermediaries are chiefly divided into two categories:

Travel Agencies

Tour operators.

Appointed representatives such as tourism service suppliers or wholesalers are authorized to sell customers a series of tourism-related products and services such as airline tickets, cruise liner berths, hotel rooms, car rentals, and train tickets, etc.

Their role is to provide guests with relevant tourism consultant services, book travel products on behalf of customers, and provide special services for customers in accordance with their needs, etc. Their income is mainly derived from agency commissions.

• Wholesalers.
• Inbound travel agencies/outbound travel agencies.

Wholesalers buy large volumes of products at a relatively low price from tourism service suppliers such as transport companies, hotels, and tourist attractions, and then sell them to tourism retailers that then sell to the retail market.

They won’t normally sell travel products directly to the general public. However, some powerful travel agencies will also establish retail departments to sell these products directly to customers.

There are also some wholesalers that are operated by a number of airlines and chain hotels and promote package tours put together from their own products.

Retailers order large volumes of various different types of travel products from tourism service suppliers or wholesalers such as transport companies, hotel, and tourist attraction products and services, then design and combine these individual products and add in their own services such as tour guide services, etc., turning them into packaged travel products, which are then sold to customers.

Outbound tour groups will take locals to another city or country and provide travel products such as transport, accommodation, and tickets to tourist attractions. Generally speaking.

This type of intermediary will regularly organize groups to take people from Hong Kong all over the world, wherein they will be accompanied by a group leader or tour guide from the very start.

Corporate client travel agencies

Sightseeing tour companies, merits of using intermediaries (travel agency), please share this share this content.

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10 countries with the best tourism economies—according to a 2024 report.

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Horseshoe Bend At Sunset

Thanks in part to its national parks, universities and major metros, the United States boasts the strongest travel and tourism economy in the world right now, according to a newly released report from the World Economic Forum.

Overall, however, European countries dominate the top 10 with six of them making the cut—including France, which will be an especially popular destination this summer as Paris hosts the 2024 Summer Olympics .

View of the Eiffel Tower in Paris. France ranks among the top 10 countries for tourism in 2024.

The World Economic Forum’s Travel & Tourism Development Index (TTDI) takes into account a number of factors across several categories for its rankings.

The report’s metrics focus on countries’ tourism sectors—including factors like airports, on-the-ground transportation and ports, natural and cultural resources, safety and security, price competitiveness and destinations’ openness to tourism.

“The index measures the set of factors and policies that enable the sustainable and resilient development of the [travel and tourism] sector, which in turn contributes to the development of a country,” the report says.

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Here’s more on the report, which highlights tourism sectors around the world.

Which Countries Have The Best Travel And Tourism Industries In 2024?

Mallorca, Spain

A category that helped the United States achieve the top rank include “non-leisure resources,” which the U.S. ranked first for and is defined as having a presence of leading universities, global cities and major corporations.

With 429 national parks sites and more than 12,000 miles of coastline, the United States also came in third for natural resources, trailing behind Australia and Brazil. The country ranks No. 6 for tourist services and infrastructure.

Areas where the States fall short include price competitiveness (No. 115) and safety and security (No. 77). Malaysia ranked first for price competitiveness and Singapore took the top spot for safety and security.

On the previous report from 2021, Japan topped the list.

Kabukicho pass illuminated at night in Shinjuku district, Tokyo. The area is a commercial an ... [+] entertainment zone

Here’s the World Economic Forum’s overall rank of the top 10 countries for tourism in 2024:

No. 1: United States

No. 2: Spain

No. 3: Japan

No. 4: France

No. 5: Australia

No. 6: Germany

No. 7: United Kingdom

No. 8: China

No. 9: Italy

No. 10: Switzerland

How Is The Post-Pandemic Tourism Rebound?

While the report points out that the tourism industry continues to be on the up and up coming out of the pandemic, many countries—including the United States—are experiencing growing pains.

Of the 119 TTDI-ranked economies, 71 increased their scores between the 2019 and 2024 editions, however the average index score is just 0.7% above pre-pandemic levels.

Countries in the Middle East had the strongest rebounds, with international tourist arrivals 20% above the 2019 level. The Americas, Europe and Africa had rates around 90%.

Sustainability of travel demand is also a consideration, a timely issue as a growing number of European cities are imposing or raising tourism taxes to help curb overtourism —or at least help offset its impacts.

Beautiful canal with old medieval architecture in Venice, Italy. View of Grand Canal and gondola.

Some challenges highlighted in the report include tourism labor shortages, flight routes not keeping up with demand and inflation.

Data for the World Economic Forums’ report was collected at the end of 2023.

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Kentucky tourism continues record-setting pace in 2023 with nearly $14 billion in economic impact

FILE - Tourists stand in the rotunda area of Mammoth Cave in Mammoth Cave National Park, Ky., on Aug. 3, 2011. Kentucky’s tourism industry stayed on its record-setting pace in 2023, generating an economic impact approaching $14 billion while sustaining nearly 100,000 jobs, Gov. Andy Beshear said Thursday, May 30, 2024. (AP Photo/Ed Reinke, File)

FILE - In this March 23, 2015 file photo, a 120-foot-tall replica bat fronts the Louisville Slugger Museum and Factory in Louisville, Ky. Kentucky’s tourism industry stayed on its record-setting pace in 2023, generating an economic impact approaching $14 billion while sustaining nearly 100,000 jobs, Gov. Andy Beshear said Thursday, May 30, 2024. (AP Photo/Timothy D. Easley, File)

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FRANKFORT, Ky. (AP) — Kentucky’s tourism industry stayed on its record-setting pace in 2023, generating an economic impact approaching $14 billion while sustaining nearly 100,000 jobs, Gov. Andy Beshear said Thursday.

Travelers visiting the Bluegrass State last year spent $9.7 billion as tourism continued its post-pandemic momentum as a key contributor to Kentucky’s growing economy, the Democratic governor said.

“We’re welcoming people to our new Kentucky home, one filled with opportunity and prosperity,” Beshear said during his weekly news conference. “Where we want you to come see what we have to offer, and then we want you to move your family here to be a part of it.”

The governor joined tourism leaders at Castle & Key Distillery to celebrate the second straight record-breaking year for tourism in Kentucky. In 2022, the tourism sector bounced back from the COVID-19 pandemic to generate an economic impact of nearly $13 billion and was responsible for 91,668 jobs.

Last year was even better, with the statewide tourism industry producing $13.8 billion in economic impact and the sector sustained 95,222 jobs, Beshear said. The study by Tourism Economics determined that 79.3 million travelers visited Kentucky in 2023, up 4.5% from the prior year, he said.

Kentucky’s attractions include horse farms and bourbon distilleries as well as outdoor adventure, history, arts and cultural draws. Kentucky is also home to Mammoth Cave National Park.

Bourbon tourism is flourishing, with attendance surpassing 2.5 million visitors last year along the Kentucky Bourbon Trail and the Kentucky Bourbon Trail Craft Tour, which showcases smaller distilleries. Bourbon tourists tend to spend more and stay longer compared to other attractions, the bourbon industry says.

“With distilleries now in 42 counties, bourbon tourism is resurrecting Main Streets across the commonwealth and pouring much-needed revenue into local coffers. And there’s more to come,” said Eric Gregory, president of the Kentucky Distillers’ Association.

Spirit makers have invested big sums into new or expanded visitor centers to play up the industry’s heritage and allow guests to soak in the sights and smells of bourbon-making.

Communities across Kentucky registered robust tourism numbers last year.

Beshear said tourism generated $4.2 billion of economic impact last year in Jefferson County, which includes Louisville, the state’s largest city. In Boone, Campbell and Kenton counties — just south of Cincinnati — the combined economic impact of tourism was $2.1 billion, he said. It was $1.6 billion in Fayette County, home to Lexington, the state’s second-largest city. In Warren County, tourism brought in $477 million of economic impact, and in McCracken County it generated $319 million.

State Tourism Commissioner Mike Mangeot thanked tourism officials statewide for their role in the sector’s success, along with the thousands of leisure and hospitality industry workers. The tour guides, restaurant workers, hotel desk clerks and others are “the frontline ambassadors,” he said.

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Qatar Tourism to demonstrate latest developments at ITB China

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Qatar Tourism participated in ITB China 2024 this month from May 27 to 29 in Shanghai, to highlight the new offerings, to promote Qatar as a leading tourist destination, and to attract investment in the travel and tourism sectors. Qatar Tourism spearheaded a delegation of 16 hospitality and travel partners. ITB China is a B2B-exclusive trade show that focuses on the Chinese Travel Market, bringing together leading professionals in the trade industry from around the world. With discussions, fruitful exchanges, and networking events, ITB China facilitates discourses between figures and institutions to maximize business opportunities. This year, ITB China took place at Shanghai World Expo and Exhibition Center.

Commenting on this occasion, Mr. Omar Al Jaber, Acting Chief of the Tourism Development Sector at Qatar Tourism, said: “Through its participation at ITB China 2024, Qatar Tourism showcased the country’s recent developments, achievements, and advancements in travel and tourism sectors to industry leaders from around the world. Qatar Tourism is dedicated to improving visitors’ tourism experience. Exhibitions such as ITB China provide a platform for Qatar Tourism to attract investors and highlight Qatar’s best touristic offerings.”

ITB China serves as a platform to highlight Chinese travel market trends to investors and stakeholders from around the world to further enhance the Chinese tourism market in the upcoming years. China is one of the 15 priority source markets for Qatar Tourism, making ITB China an important event to showcase Qatar’s offerings in the Chinese and international market.

Earlier this year in March, Qatar Tourism participated at ITB Berlin 2024 where they discussed the launch of the ‘Double the Discovery’ initiative in collaboration with Saudi Tourism Authority, to provide visitors the chance to explore cultural landmarks and historical sites in the State of Qatar and the Kingdom of Saudi Arabia in one single trip. Qatar Tourism also discussed the Stopover Packages, in partnership with Qatar Airways, for visitors who have limited time to visit Qatar.  

For media-related inquiries, please contact Qatar Tourism’s Press Office on:

+974 3392 4466 | pressoffice@visitqatar.qa  

• About Qatar Tourism

Qatar Tourism, the regulatory body of the tourism sector in Qatar. Qatar Tourism’s mission is to promote and expand tourism in Qatar by cultivating its rich culture, develop thrilling attractions, and luxury experiences. With a clear vision to strengthen Qatar's position as a premier family-tourism destination distinguished by service excellence, to achieve diverse and innovative economic growth. Qatar Tourism will regulate and develop the tourism industry, encouraging investment from the private sector. It set the strategy for the tourism sector, reviewing it periodically and overseeing its implementation, with the aim of diversifying tourism offerings in the country and increasing visitor spend. Qatar Tourism is expanding Qatar’s presence globally and enhancing the tourism sector.

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Virgin Galactic to Launch Space Tourism Flight as Waiting Lists Grow

Jesse Chase-Lubitz , Skift

June 7th, 2024 at 1:51 PM EDT

Virgin Galactic joins Blue Origin and Space Perspective in aspiring to make the final frontier open to all who can afford it. That's good news for travel agencies like RocketBreaks.

Jesse Chase-Lubitz

Virgin Galactic plans to send a handful of paying passengers to the edge of space on June 8 as the space industry continues to grow and diversify.

“So far, there are about 3,000 to 4,000 people on the waiting lists for these trips,” said David Doughty, co-founder of the space travel agency RocketBreaks . His agency has secured contracts with seven tourists looking to launch into orbit and has set a date for one. 

Virgin Galactic’s flight will take off from New Mexico on Saturday and carry three private passengers from California, New York, and Italy. Tuva Cihangir Atasever , a researcher-astronaut from infrastructure company Axiom Space, and two commanders will accompany them.

Virgin Galactic has not released the identities of the private passengers. 

In an email to Skift, the company said, “We don’t consider our mission to take people to space, “tourism.” Those who fly with us become astronauts in what is a very thoughtful, purposeful journey that begins when they purchase a ticket.”

The passengers, whose identities were not disclosed, will enjoy a roughly 90-minute journey to the edge of space that includes a few minutes of zero gravity.

The company’s website states that spaceflight tickets cost $450,000, though it doesn’t disclose what passengers truly paid. On a recent earnings call, executives said the average price per seat on this flight is over $800,000 hope to charge a ticket price of $600,000 . Blue Origin doesn’t publicize its prices, but they have been said to range between $200,000 and over $1 million .

The space tourism industry

Blue Origin and Virgin Galactic are known for their shorter suborbital flights, while SpaceX focuses on bringing tourists into orbit and to the International Space Station.

In August 2023, Virgin Galactic brought a health and wellness coach and her 18-year-old daughter who had won a fundraising competition by Space for Humanity, a non-profit that seeks to democratize space travel to space.

BlueOrigin , which is owned by Amazon CEO Jeff Bezos, has sent more than two dozen passengers into space. SpaceX , founded by Elon Musk, brought an all-tourist crew back from space in 2021.

The industry is growing and diversifying. One company, called Space Perspective , is offering an even more luxurious experience, with VIP seating, a toilet, Michelin-star catering, and WiFi. Rather than a 90-minute round trip, this experience would last closer to six hours.

A space travel agency

“This is our number one product,” said Doughty. “People don’t necessarily want this fast 15-minute adrenaline field journey. They want a full experience. There are people that are planning to get married and have the first weddings in space.”

The waiting list for Space Perspective is already about 800 names long, according to Doughty. The first flight is scheduled to launch in 2027.

Virgin Galactic plans to retire its current spacecraft after this flight and start developing a new generation of Delta spaceships, which the company hopes will have the capacity to launch up to eight times per month and carry more passengers. Private astronaut flights are expected to resume in 2026. But the company will have to find a way to stay financially viable in the meantime .

The future of space tourism

RocketBreaks sees the industry widening to different types of experiences. “You can really personalize the experience and we help people find the journey they want,” said Doughty. “We could plan anything from a child meeting an astronaut for his birthday, a bucket list trip in your 70s and you don’t like G-Force, something for a premier league footballer who wants to feel the adrenaline.”

The technology is developing rapidly and confidence is slowly building, said Barry Shanks, director at RocketBreaks. “There’s going to be a great deal of marketing going on, so then I think we will see a rise,” he said. 

“In the long term, like 10 years time, we’re looking at doing a trip around the moon that will be no different than flying from London to Australia,” said Shanks of RocketBreaks.

CORRECTION : This article originally said Virgin Galactic’s latest flight on June 8 would be its second with paying passengers. It will be its seventh. We’ve also added this statement: “On its latest earnings call, the company said the average price per seat on this flight was over $800,000.”

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Tags: space , space tourism , spacex , Travel Experiences , Travel Trends , virgin galactic

Photo credit: Virgin Galactic's first mission carrying passengers in August, 2023. Virgin Galactic