tourism in cambodia 2023

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Cambodia Experiences Tourism Surge in 2023

Cambodia has become an irresistible draw for the global traveller, with approximately 2.57 million international visitors pouring in during the first half of the year.

The numbers, as per a July 7 report from the Ministry of Tourism, represents a staggering increase of 409 per cent in comparison to the same period in 2022.

An enchanting blend of history, culture, and natural beauty, Cambodia saw 910,000 of these visitors arrive by air, marking a 279 per cent increase from the previous year.

Meanwhile, the figure for those entering by land shot up by 526 per cent to 1.63 million.

Travellers taking the scenic route by water also surged, with 30,000 visitors, a remarkable 586 per cent increase.

An array of visitors from Thailand, Vietnam, China, Laos, the US, South Korea, Indonesia, France, the UK, Malaysia, and Australia, were drawn to the magical allure of Cambodia's attractions.

The varied landscapes, from verdant rice fields to the breathtaking Angkor Wat, along with the rich cultural tapestry, have made Cambodia a gem in the crown of global tourism.

The ministry's report further revealed a total of over 10,000 flights, with the Phnom Penh International Airport handling nearly 8,000 of them. Siem Reap International Airport, the gateway to the Angkor temples, recorded over 2,000 flights, while Preah Sihanouk International Airport welcomed 255 flights.

With tourism on an upward trajectory, the Ministry of Tourism anticipates welcoming around 5 million international visitors for the year.

This projection marks a 120 per cent increase compared to the figures in 2022, signalling a bright future for Cambodia's vital tourism sector.

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Tapping into Cambodia’s infinite potential for spiritual tourism

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Best of Cambodia – 30 Places to Explore in 2023 and 2024

From ancient temples to tropical beaches, Cambodia offers endless options for an unforgettable trip in 2023 and 2024. Here are 30 exciting places to add to your Cambodia travel itinerary this year. Enjoy our Top 30 Places to Explore in 2023 and 2024.

Angkor Wat: The most iconic Cambodian temple complex and one of the largest religious monuments in the world, regarded as a UNESCO World Heritage Site. Marvel at the intricate carvings and sprawling grounds.

Bayon Temple: Located within Angkor Thom, this temple is renowned for its many impressive stone faces carved into the towers. A highlight of Khmer architecture.

Ta Prohm: Left largely untouched, this atmospheric temple has trees and vines growing amidst the ruins. Photographers flock here to capture the jungle-entwined stonework.

Phnom Penh: Cambodia’s capital offers fascinating history, culture and attractions like the Royal Palace, National Museum, and poignant Killing Fields. A vibrant city not to miss.

Siem Reap: Gateway to the Angkor temples, this charming town has vibrant markets, traditional workshops, countryside tours and more. A great base for temple exploration. 

Sihanoukville: Miles of uncrowded golden sand beaches perfect for relaxation, with options for snorkelling, island hopping and water sports in this up-and-coming coastal destination.

Kampot: Known for its riverside charm, pepper plantations and French colonial architecture. Nearby are Bokor National Park and the Preah Monivong Bokor National Park. 

Cardamom Mountains: Pristine wilderness home to diverse wildlife like tigers and elephants. A top spot for avid hikers and nature enthusiasts. 

Silver Pagoda: Housed within the Royal Palace, this temple wows visitors with its gleaming silver tiled floor and dazzling Buddha statues encrusted with jewels.

Battambang: Base yourself here to explore the atmospheric countryside by riverboat and take in the colonial architecture and thriving arts scene. Don’t miss Phare Ponleu Selpak circus.

Kep: Escape to this laidback coastal town to enjoy fresh seafood, quiet beaches and scenic attractions like Kep National Park, perfect for a relaxing seaside retreat.  

Koh Rong: With spectacular beaches, jungle interiors and a chilled-out vibe, this island paradise offers snorkeling, hiking, zip lining and abundant wildlife spotting opportunities for adventurous travelers.

Killing Fields: A sobering yet important visit, this landmark outside Phnom Penh bears witness to the atrocities committed under the Khmer Rouge regime.

Central Market: One of the top spots in Phnom Penh to shop for antiques, jewelry, watches, souvenirs and more. Bargain to get the best deals in this bustling four-winged market.  

Bokor National Park: Explore the abandoned buildings dotting this park, from Catholic churches to hill station mansions. Offers great hiking trails with sweeping coastal views.

Preah Vihear Temple: Perched dramatically atop a cliff in the Dangrek Mountains, this Khmer temple has breathtaking vistas of the plains below. 

Virachey National Park: Boasting pristine jungles, mountains and waterfalls near the Vietnamese border, this park is a nature lover’s dream with diverse wildlife.

Angkor Thom: The last capital of the Khmer Empire, this walled city contains many ancient temples like the Bayon, known for its photogenic stone faces.

Banteay Srei: Regarded as the ‘Citadel of Women’, this petite pink temple dazzles with intricate carvings dedicated to Shiva and Vishnu.

Preah Khan: Meaning ‘Holy Sword’, this sprawling 12th century temple features maze-like corridors, towers and bas-reliefs depicting Buddhist and Hindu myths. 

Kratie: Riverside town acclaimed for its rare freshwater Irrawaddy dolphins. Also boasts charming French colonial architecture along the Mekong. 

Koh Ker: Explore the atmospheric temples engulfed by jungle at this archeological site, including the central temple rising on a 10-meter high platform.

Krong Ta Khmau: A great city for temple hopping, with highlights including Wat Gat Sbos, Wat Prech Toat Thmor and Wat O Trakuon Samdech Preah. 

War Museum: Cambodia’s only war museum displays tanks, artillery and vehicles from the civil war and Khmer Rouge regime with insightful veteran guides. Located in Siem Reap.

Koh Tonsay: Nicknamed ‘Rabbit Island’ for its shape, this idyllic isle off Kep offers pristine beaches, swimming, snorkeling and a true getaway vibe.  

Mondulkiri: Meaning ‘meeting of the hills’, this scenic province impresses visitors with its lush hills, forests, waterfalls and indigenous culture.

Ream National Park: Boasting diverse wildlife like the endangered red-shanked douc langur, this park near Sihanoukville combines beaches, mangroves and jungles. 

Tuol Sleng Genocide Museum: Formerly a high school, this Phnom Penh museum provides a grim look at the atrocities under the Khmer Rouge through prison cells, photographs and artifacts.

Banteay Srey Butterfly Centre: Located near the Banteay Srey temple, this popular attraction allows visitors to see and learn about native Cambodian butterflies up close in a natural environment. An educational stop for families and nature enthusiasts alike.  

Banlung: Base yourself in this laidback town to explore nearby waterfalls, volcanic lakes, jungles and minority villages showcasing indigenous Bunong culture.   

With countless remarkable destinations, a trip to Cambodia promises adventure, culture and nature in 2023 and 2024. Conveniently book transportation via bus , taxi or ferry with CamboTicket.com to make travel planning a breeze. The Kingdom of Wonder awaits!

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Cambodia maps out tourism goals

PHNOM PENH, 12 April 2023: Ahead of the Mekong Tourism Forum in Preah Sihanoukville on 26 April, Cambodia’s Minister of Tourism, Thong Khon, outlines his country’s targets for tourism, aviation and dispersing a new generation of visitors beyond Angkor Wat and Phnom Penh.

Q: What are your targets for Cambodian tourism in 2023?

A: The target for Cambodia’s tourism in 2023 is to increase the number of international tourist arrivals from 4 to 4.5 million. Cambodia hosts the Southeast Asian Games 2023 in May, a major tourist event.

Q: Is there a new emphasis or focus on Cambodia’s 2023 tourism promotion campaigns?

A: Our focus is “Visit Cambodia Year 2023”. It has the theme “MICE and Sports” and the slogan “Every Day is A Wonder”. Apart from the SEA Games, we also have the 12th ASEAN Para Games from 3 to 9 June in Phnom Penh, with the theme, “Sports Live In Peace”. There’s also the Mekong Tourism Forum 2023 in Sihanoukville from 25 to 27 April on “Rethinking for Resilience and Digitalization”.

Q: How has tourism in Cambodia changed since the pandemic?

A: Like many other countries, Cambodia faced a big challenge from the global Covid-19 pandemic. The number of international arrivals dropped from 6.6 million in 2019 to 1.3 million in 2020 and to only 200,000 in 2021. With tourism coming back, there have been some positives.

Cambodia became the first country in ASEAN to fully re-open for international travellers in October 2022. That helped increase international arrivals to 2.23 million by the end of 2022. Cambodia expects to receive around 4 million international visitors by the end of 2023, 5 million in 2024 and 7 million in 2025.

We developed new tourism infrastructure during the pandemic, such as 38 new roads in Siem Reap, the Phnom Penh-Sihanoukville expressway, and the new Siem Reap International Airport, due for completion in Q3 this year. The new Techo Takhmao International Airport south of Phnom Penh will complete its first phase in mid-2024.

Q: What changes to the aviation sector are you encouraging to boost Cambodia’s tourism?

A: By March 2028, we plan to have 33 airlines connecting to Cambodia through three international airports with an average of 494 flights per week or 988 movements. The government aims to boost the influx of international tourists and new airlines by applying tax incentives and reducing or waiving landing fees. We are investing a lot in two new airports: Kandal province, just south of Phnom Penh, and Siem Reap.

Q: What policies do you have to disperse tourism from Angkor Wat to other parts of Cambodia?

A: Initially, foreign tourists visiting Cambodia wished to see only Angkor Wat temple. Through the preparation of new tour packages, tourists are now starting to enjoy more nature tourism, adventure activities, community-based tourism, ecotourism and learning about the lives of people and local food. We want to attract tourists away from Angkor Wat to help poorer areas develop.

Q: What role does the upcoming Mekong Tourism Forum in Preah Sihanouk play in Cambodia’s tourism future?

A: The Mekong Tourism Forum is vital in discussing critical issues and emerging trends among regional tourism stakeholders. With the theme Rethinking for Resilience and Digitalisation, forum attendees will discuss sustainable food systems, fostering women’s empowerment, accelerating digitalisation, and upskilling the tourism workforce.

For the MTF programme, click here

Or visit: https://mekon g tourism.org/mekong-tourism-forum-2023/

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Gareth Johnson

Cambodia’s tourism sector is aiming for a big comeback in 2023, with the Ministry of Tourism announcing a target of 4 million tourist arrivals for the year. This comes after a difficult year in 2021, where the country closed its borders to most tourists due to the pandemic and only 196,000 tourists were able to visit.

However, in 2022, the number of tourists increased significantly to 2.28 million. The optimism for 2023 is based on the expected return of mainland tourists, particularly Chinese tourists, who made up 2.3 of the 6.7 million total visitors to the Kingdom in 2019.

Read more: Cambodia’s aviation industry begins to rebound as AirAsia launches Cambodian Joint-Venture

The return of tourists to Cambodia would have a significant impact on the country’s economy. The tourism sector is one of the country’s main sources of income and employs a large number of people.

The sector has been hit hard by the pandemic, with many hotels, restaurants, and tour operators shutting down or reducing their capacity. The return of tourists would help to revive these businesses and create jobs for Cambodians.

Capitalize on the expected influx of tourists

To capitalize on the expected influx of tourists, the Cambodian government is investing in the country’s infrastructure, particularly its airports. The government is currently working on building a new international airport, the Techo International Airport, which is slated to open in late 2024. The new airport will have a capacity for 13 million arrivals, which will increase to 30 million by 2030.

Read more: Explainer on Airports in Cambodia

This is a significant increase from the current capacity of the three international airports within the Kingdom, which can only accommodate 10 million arrivals. The cost of building the new airport is around $1.5 billion.

In addition to the new airport, the Cambodian government is also looking to attract Chinese Foreign Direct Investment (FDI) in the country. This is particularly relevant for the city of Sihanoukville, which is currently dominated by unfinished high-rises and casinos that were once full of Chinese gamblers but now remain largely empty.

Rejuvenating the Sihanoukville city

The city’s airport, Sihanoukville International Airport, which is serviced almost exclusively by Chinese airlines, saw just 1000 arrivals during the height of the pandemic. The government is hopeful that FDI will return to the city.

However, while the Cambodian government is optimistic about the return of Chinese tourists, it is important to note that China has not yet fully reopened for its nationals to travel abroad. Currently, only those with Chinese nationality or those possessing a family or work visa are allowed to enter the country.

Additionally, outbound travel flights remain limited, with even quotas on the number of people who cross the border into Hong Kong. Therefore, while the return of Chinese tourists is expected, it is unlikely to be imminent and may not occur before the summer when the virus is less transmissible.

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Cambodia’s Tourism Sector Generates $3.04 Billion in 2023

In a significant uptick for Cambodia’s economy, the tourism sector reported a revenue of $3.04 billion in 2023, marking a 115% increase from the $1.41 billion recorded the previous year. This financial boost is outlined in a report by the Ministry of Tourism, published on February 12, 2024, reflecting the sector’s robust recovery and growth.

The country saw a substantial rise in international visitors, with 5.45 million tourists arriving in 2023, a 140% surge from the 2.27 million tourists in the preceding year. On average, these visitors spent 7.6 days exploring Cambodia’s rich cultural heritage and natural beauty.

In a move to further bolster tourism and foster international relationships, Cambodia inaugurated the 2024 Cambodia-China People-to-People Exchange Year last month. This initiative aims to strengthen ties and encourage a greater influx of tourists and investors from China to Cambodia. Cambodian Tourism Minister Sok Soken, speaking at the launch event in Siem Reap, expressed high hopes for the initiative, foreseeing it as a significant factor in attracting more visitors and investment from China.

China emerged as the third-largest source of international tourists to Cambodia in 2023. The nation welcomed 547,798 Chinese tourists, a staggering increase of 412% from the 106,875 Chinese visitors recorded in the previous year.

Tourism plays a crucial role in Cambodia’s economy, being one of its four main pillars. The country is home to four UNESCO World Heritage Sites, which include the Angkor Archaeological Park in Siem Reap, the Temple Zone of Sambor Prei Kuk in Kampong Thom, and the Temples of Preah Vihear and Koh Ker in Preah Vihear province. These sites are significant draws for both history enthusiasts and casual tourists alike.

Additionally, Cambodia boasts a pristine 450 km long coastline along four southwestern provinces: Sihanoukville, Kampot, Kep, and Koh Kong. This coastline is renowned for its untouched beauty and offers a tranquil retreat for visitors seeking relaxation and scenic views. The combined allure of cultural heritage and natural landscapes continues to position Cambodia as a favored destination for international travelers, contributing to the sustainable growth of its tourism sector.

Source: Khmer Times

Surya Narayan

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Arrivals of foreign tourists soar in 2023: Cambodian ministry

The first 8 months of 2023 marked a 250.8 per cent year on year increase in foreign tourist arrivals. Despite the growth, the current numbers still fall short by 19.7 per cent when compared to peak tourist arrivals in 2019.

The Phnom Penh Post

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Local and international tourists visit Angkor Wat temple in Siem Reap province. PHOTO: THE PHNOM PENH POST

October 3, 2023

PHNOM PENH – The Ministry of Tourism reported a surge in foreign tourist arrivals in Cambodia for the first eight months of 2023. Over 3.5 million international visitors were recorded, marking a 250.8 per cent increase compared to the same period last year. A significant 84.7 per cent of these travellers originated from the Asia Pacific region.

Despite this growth, the current numbers still fall short by 19.7 per cent when compared to peak tourist arrivals in 2019. In a breakdown of the 2023 figures, European and American visitors made up 10.4 and 4.6 per cent of the arrivals, up 288.1 and 210.5 per cent, respectively. The mode of arrivals varied with 64.3 per cent arriving by land, 34.7 per cent by air and a mere 1.1 per cent via inland waterways.

Thailand heads the chart as the top tourist source with 1,186,999 visitors. Vietnam, China and Laos followed, with 641,758, 364,844 and 212,984 visitors respectively.

Thiem Thuong, president of the Cambodia Chinese Tour Guide Association (CCTGA), told The Post that while the ongoing Covid-19 crisis isn’t currently hampering tourism, Siem Reap’s foreign footfall remains below pre-2020 numbers. Presently, the majority of those visiting Siem Reap’s traditional sites are locals.

“Even though Cambodia’s borders have been reopened for over a year, we’re still seeing fewer foreign guests than we did pre-pandemic. We hope to welcome more in the near future,” he said.

Khieu Thy, president of the Angkor Tourist Guide Association, noted an increase in visitors to Siem Reap’s temples since the onset of 2023.

“Tourism is intrinsically linked with the economy and politics. While the numbers from distant countries have been low, we expect a change by the end of the year as the season picks up,” Thy said.

He remained optimistic, asserting that the private sector is well-prepared for an influx of visitors.

“The end of the year will provide a clearer picture of the situation,” Thy added.

Hor Sarun, secretary of state at the ministry, remains hopeful about the Kingdom’s tourism future.

Addressing a workshop on “Good Hospitality, Safe Tourism” in Svay Rieng Province on August 14, he predicted that by the end of 2025 or early 2026, the country could return to its pre-pandemic numbers, aiming for around 7 million guests.

For context, 2019 saw the highest number of international visitors in Cambodia at 6,610,592, a 6.6 per cent increase from 2018. The three bordering nations, Thailand, Vietnam and Laos, contributed significantly to these figures.

In contrast, 2022 saw only 2.28 million international visitors, although it was still an impressive increase of 1,059 per cent over 2021. Tourists from Thailand, Vietnam and Laos alone reached 1,409,980 last year.

Cambodia welcomes 5.4 million foreign tourists in 2023

• 22 January 2024
• Khmer Times
• Ministry of Tourism / Tourism
• International tourist

Cambodia attracted some 5.43 million international tourists in 2023, a sharp increase of 139 percent from 2.27 million in 2022, the Ministry of Tourism pointed out in a report on Friday. …

 Khmer Times Staff https://www.khmertimeskh.com/501426346/cambodia-welcomes-5-4-million-foreign-tourists-in-2023/

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Now boarding: Faces, places, and trends shaping tourism in 2024

After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. 1 Unless otherwise noted, the source for all data and projections is Oxford Economics. Over the same time frame, international travel should likewise ramp up to its historical average of nine billion nights. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveler outlays in 2024, representing roughly 9 percent of this year’s global GDP.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

There’s no doubt people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go? We developed a snapshot of current traveler flows, along with estimates for growth through 2030. For the purposes of this report, we have divided the world into four regions—the Americas, Asia, Europe, and the Middle East and Africa.

Our analysis identifies three major themes for industry stakeholders to consider:

• The bulk of travel spending is close to home. Stakeholders should ensure they capture the full potential of domestic travel before shifting their focus to international travelers. And they should start with international travelers who visit nearby countries—as intraregional trips represent the largest travel segment after domestic trips.
• Source markets are shifting. Although established source markets continue to anchor global travel, Eastern Europe, India, and Southeast Asia are all becoming fast-growing sources of outbound tourism.
• The destinations of the future may not be the ones you imagine. Alongside enduring favorites, places that weren’t on many tourists’ maps are finding clever ways to lure international travelers and establish themselves as desirable destinations.

The bulk of travel spending is close to home

International travel might feel more glamorous, but tourism players should not forget that domestic travel still represents the bulk of the market, accounting for 75 percent of global travel spending (Exhibit 1). Domestic travel recovered from the COVID-19 pandemic faster than international travel, as is typical coming out of downturns. And although there has been a recent boom in “revenge travel,” with travelers prioritizing international trips that were delayed by the pandemic, a return to prepandemic norms, in which domestic travel represents 70 percent of spending, is expected by 2030.

The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders. Domestic demand has softened slightly, as American travelers return abroad. 2 Dawit Habtemariam, “Domestic U.S. tourism growth levels off as Americans head overseas,” Skift, August 18, 2023. But tourism players with the right offerings are still thriving: five national parks broke attendance records in 2023 (including Joshua Tree National Park, which capitalized on growing interest from stargazers indulging in “dark sky” tourism 3 Scott McConkey, “5 national parks set attendance records in 2023, and the reasons may surprise you,” Wealth of Geeks, April 16, 2024. ).

China’s $744 billion domestic travel market is currently the world’s second largest. Chinese travelers spent the pandemic learning to appreciate the diversity of experiences on offer within their own country. Even as borders open back up, Chinese travelers are staying close to home. And domestic destinations are benefiting: for example, Changchun (home to the Changchun Ice and Snow Festival) realized 160 percent year-on-year growth in visitors in 2023. 4 Shi Xiaoji, “Why don’t Chinese people like to travel abroad anymore? The global tourism industry has lost 900 billion yuan. What is the situation?,” NetEase, February 12, 2024. In 2024, domestic travel during Lunar New Year exceeded prepandemic levels by 19 percent.

China’s domestic travel market is expected to grow 12 percent annually and overtake the United States’ to become the world’s largest by 2030. Hotel construction reflects this expectation: 30 percent of the global hotel construction pipeline is currently concentrated in China. The pipeline is heavily skewed toward luxury properties, with more than twice as many luxury hotels under construction in China as in the United States.

India, currently the world’s sixth-largest domestic travel market by spending, is another thriving area for domestic travel. With the subcontinent’s growing middle class powering travel spending growth of roughly 9 percent per year, India’s domestic market could overtake Japan’s and Mexico’s to become the world’s fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, 5 Murali Krishnan, “Can India’s airports cope with rapid passenger growth?,” Deutsche Welle, February 7, 2024. boosted in part by a state-subsidized initiative that aims to connect underserved domestic airports. 6 “India is seeing a massive aviation boom,” Economist , November 23, 2023.

When travelers do go abroad, they often stay close to home (Exhibit 2).

Europe and Asia, in particular, demonstrate strong and growing intraregional travel markets.

Recognizing this general trend, stakeholders have been funneling investment toward regional tourism destinations. An Emirati wealth fund, for instance, has announced its intent to invest roughly $35 billion into established hospitality properties and development opportunities in Egypt. 7 Michael Gunn and Mirette Magdy, “UAE’s $35 billion Egypt deal marks Gulf powers’ buying spree,” Bloomberg, April 27, 2024.

Europe has long played host to a high share of intraregional travel. Seventy percent of its travelers’ international trips stay within the region. Europe’s most popular destinations for intraregional travelers are perennial warm-weather favorites—Spain (18 percent), Italy (10 percent), and France (8 percent)—with limited change to these preferences expected between now and 2030.

Despite longer travel distances between Asian countries, Asia’s intraregional travel market is beginning to resemble Europe’s. Intraregional travel currently accounts for about 60 percent of international trips in Asia—a share expected to climb to 64 percent by 2030. As in Europe in past decades, Asian intraregional travel is benefiting from diminishing visa barriers and the development of a low-cost, regional flight network.

Thailand is projected to enjoy continued, growing popularity with Asian travelers. Thailand waived visa requirements for Chinese tourists in 2023 and plans to do the same for Indian tourists starting in 2024. It has aggressively targeted the fast-growing Indian traveler segment, launching more than 50 marketing campaigns directed at Indians over the past decade. The investment may be paying off: Bangkok recently overtook Dubai as the most popular city destination for Indian tourists. 8 “Bangkok overtakes Dubai as top destination for Indians post visa relaxation, reveals Agoda,” PR Newswire, January 18, 2024.

A McKinsey ConsumerWise survey on consumer sentiment, conducted in February 2024, suggests that Chinese travelers are also exhibiting high interest in international travel, with 36 percent of survey respondents indicating that they intend to spend more on international travel in the next three months. 9 Daniel Zipser, “ China brief: Consumers are spending again (outside of China) ,” McKinsey, April 8, 2024. Much of this interest is directed toward regional destinations such as Southeast Asia and Japan, with interest in travel to Europe down from previous years. 10 Guang Chen, Zi Chen, Steve Saxon, and Jackey Yu, “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Given travelers’ preference for proximity, how can tourism stakeholders further capitalize on domestic and intraregional travel demand? Here are a few strategies:

• Craft offerings that encourage domestic tourists to rediscover local gems. Destinations, hotels, and transportation providers can encourage domestic tourists to integrate lesser-known cultural landmarks into their trips to visit friends and relatives. In France, the upscale hotel chain Relais & Châteaux markets historic properties that lie far from classic tourist sights—such as Château Saint-Jean in rural Auvergne—as a welcome escape from the bustle of Paris. In Mexico, the Pueblos Mágicos program has successfully boosted domestic tourist visits to a set of “magical towns” that showcase Mexican heritage.
• Fold one-off domestic destinations into fuller itineraries. Route 66 in the United States is a classic road trip pathway, which spurs visits to attractions all along the highway’s length. Tourism stakeholders can collaborate to create similar types of domestic itineraries around the world. For instance, Mexico has expanded on its Pueblos Mágicos concept by branding coordinated visits to multiple villages as “magical routes.” In France, local tourism boards and vineyards have collaborated to promote bucket list “wine routes” around the country.
• Make crossing borders into neighboring countries seamless. Removing logistical barriers to travel can nudge tourists to upgrade a one-off trip to a single attraction into a bucket list journey across multiple, less-trodden destinations. In Africa, for example, Ethiopian Airlines is facilitating cross-border travel to major regional tourist sites through improved air connectivity. In Asia, Thailand has announced its intent to create a joint visa easing travel among Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam.

Source markets are shifting

The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38 percent of international travel spending in 2023 and are expected to remain the top five source markets through 2030. But interest in travel is blossoming in other parts of the world—causing a shift in the balance of outbound travel flows (Exhibit 3).

North Americans’ travel spending is projected to hold steady at roughly 3 percent annual growth. US consumers voice growing concerns about inflation, and the most cost-constrained traveler segments are reducing travel, which is affecting ultra-low-cost airlines and budget hotels. Most travelers, however, plan to continue traveling: McKinsey research suggests that American consumers rank international and domestic travel as their highest-priority areas for discretionary spending. Instead of canceling their trips, these consumers are adapting their behavior by traveling during off-peak periods or booking travel further in advance. Travel spending by Europeans paints a slightly rosier picture, with roughly 5 percent projected annual growth. Meanwhile, the projected 12 percent annual growth in Chinese travelers’ spending should anchor substantial increases in travel spending across Northeast Asia.

Alongside these enduring traveler segments, new groups of travelers are emerging. Eastern Europe, India, and Southeast Asia are still comparatively small source markets, but they are developing fast-growing pools of first-time tourists (Exhibit 4).

India’s breakneck GDP growth of 6 percent year over year is bolstering a new generation of travelers, 11 Benjamin Laker, “India will grow to become the world’s third-largest economy by 2027,” Forbes , February 23, 2024. resulting in a projected annual growth in travel spending of 9 percent between now and 2030. Indian air carriers and lodging companies are making substantial investments to meet projected demand. Budget airline IndiGo placed the largest aircraft order in commercial aviation history in 2023, when it pledged to buy 500 Airbus A320 planes 12 Anna Cooban, “Biggest plane deal in history: Airbus clinches massive order from India’s IndiGo,” CNN, June 19, 2023. ; that same week, Air India nearly equaled IndiGo’s order size with purchase agreements for 250 Airbus and 220 Boeing jets. IndiGo later added an order for 30 additional Airbus A350 planes, well suited to serving both domestic and international routes. 13 “Airbus confirms IndiGo's A350 aircraft order,” Economic Times , May 6, 2024. The Indian Hotels Company Limited is ramping up its hotel pipeline, aiming to open two new hotels per month in the near future. International players are not sitting on the sidelines: seven hotel chains are launching new brands in India in 2024, 14 Peden Doma Bhutia, “Indian Hotels expansion plans: 2 new brands launching, 2 hotels opening every month,” Skift, February 2, 2024. including Marriott’s first Moxy- and Tribute-branded hotels in India and entrants from Hilton’s Curio and Tapestry brands. 15 Forum Gandhi, “Check-in frenzy: International hotel giants unleash fresh brands in India’s booming hospitality landscape,” Hindu Businessline , February 13, 2024. Development focus has shifted away from major metropolises such as Mumbai and Delhi and toward fast-developing, smaller cities such as Chandigarh and Hyderabad.

Southeast Asian travel spending is projected to grow at roughly 7 percent per year. Pockets of particularly high growth exist in Cambodia, Malaysia, and the Philippines. To capitalize on this blossoming source market, neighboring countries are rolling out attractive visa arrangements: for example, China has agreed to reciprocal visa waivers for short-term travelers from Malaysia, Singapore, and Thailand. 16 Julienna Law, “China launches ‘visa-free era’ with Southeast Asia. Will travel retail boom?,” Jing Daily , January 30, 2024.

Travel spending by Eastern Europeans is expected to grow at 7 percent per year until 2030—two percentage points higher than spending by Western Europeans. Areas of especially high growth include the Czech Republic, Hungary, and Poland, where middle-class travelers are increasingly venturing farther afield. Major tourism players, including the TUI Group, have tapped into these new source markets by offering charter flights to warm-weather destinations such as Egypt. 17 Hildbrandt von Klaus, “TUI develops Czech Republic as a new source market,” FVW, December 22, 2023.

Although the number of travelers from these new source markets is growing, their purchasing power remains relatively limited. Compared with Western European travelers (who average $159 per night in total travel spending), South Asians spend 20 percent less, Eastern Europeans spend 40 percent less, and Southeast Asians spend 55 percent less. Only 3 percent of the current Asian hotel construction pipeline caters to economy travelers, suggesting a potential supply gap of rooms that could appeal to budget-constrained tourists.

While acknowledging that historical source markets will continue to constitute the bulk of travel spending, tourism players can consider actions such as these to capitalize on growing travel demand from newer markets:

• Reduce obstacles to travel. Countries can look for ways to strategically invest in simplifying travel for visitors from growing source markets. In 2017, for example, Azerbaijan introduced express processing of electronic visas for Indian visitors; annual arrivals from India increased fivefold in two years. Requirements regarding passport photocopies or in-person check-ins can similarly be assessed with an eye toward reducing red tape for travelers.
• Use culturally relevant marketing channels to reach new demographics. Unique, thoughtful marketing strategies can help destinations place themselves on first-time travelers’ bucket lists. For example, after the release of Zindagi Na Milegi Dobara , a popular Bollywood movie shot in Spain with support from the Spanish Ministry of Tourism, Indian tourism to Spain increased by 65 percent. 18 “ Zindagi Na Milegi Dobara part of syllabus in Spain colleges,” India Today , June 6, 2004.
• Give new travelers the tech they expect. Travelers from newer source markets often have access to tech-forward travel offerings. For example, Indian travelers can travel anywhere within their country without physical identification, thanks to the Digi Yatra app. The Southeast Asian rideshare app Grab has several helpful travel features that competitors lack, such as automated menu translation and currency conversion. Tourism stakeholders should consider how to adapt to the tech expectations of newer travelers, integrating relevant offerings that ease journeys.
• Create vibrant experiences tailored to different price points. Crafting lower-budget offerings for more cost-constrained travelers doesn’t need to result in giving them a subpar experience. Capsule hotels, in which guests sleep in small cubbies, began as a response to the high cost of accommodations in Japan, but they have become an attraction in their own right—appearing on many must-do lists. 19 Philip Tang, “24 of the best experiences in Japan,” Lonely Planet, March 23, 2024.

The places you’ll go: The destinations of the future may not be the ones you imagine

The world’s top ten destination countries (the United States, Spain, China, France, Saudi Arabia, Türkiye, Italy, Thailand, Japan, and India, in that order) currently receive 45 percent of all travel spending, including for domestic travel. But some new locales are gaining traction (Exhibit 5).

A significant number of travelers are expanding their horizons, booking journeys to less visited countries that are near to old standbys. For instance, Laos and Malaysia, which both border Thailand—an established destination that is home to Bangkok, the world’s most visited city 20 Katherine LaGrave, “This is the world’s most visited city,” AFAR , January 31, 2024. —are up a respective 20 percent and 17 percent, respectively, in year-over-year international travel spending.

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic-travel spending. But some new locales are gaining traction.

Several other countries that have crafted thoughtful tourism demand generation strategies—such as Peru, the Philippines, Rwanda, and Vietnam—are also expected to reap benefits in the coming years. Vietnam logged a remarkable 40 percent increase in tourism spending in the five years before the pandemic. Postpandemic, it has rebounded in part by waiving visa requirements for European travelers (while indicating intent to offer similar exemptions in the future for Chinese and Indian travelers). 21 Ashvita Singh, “Vietnam looks to offer visa-free entry to Indians: India report,” Skift, November 20, 2023. The Philippines has made a concerted effort to shift its sun-and-beach branding toward a more well-rounded image, replacing its long-standing “It’s more fun in the Philippines” tourism slogan with “Love the Philippines.” Peru is highlighting less visited archeological sites while also marketing itself as a top-notch culinary destination through the promotion of Peruvian restaurants abroad. Rwanda is investing in infrastructure to become a major African transit hub, facilitated by Qatar Airways’ purchase of a 60 percent stake in the country’s major airport. 22 Dylan Cresswell, “Rwanda plots ambitious tourism recovery,” African Business , July 28, 2022. Rwanda has also successfully capitalized on sustainable tourism: by charging $1,500 per gorilla trekking permit, for instance, it has maximized revenue while reducing environmental impact.

Tourism players might consider taking some of these actions to lure tourists to less familiar destinations:

• Collaborate across the tourism ecosystem. Promotion is not solely the domain of destination marketing organizations. Accommodation, transportation, and experience providers can also play important roles. In Singapore, for instance, the luxury resort Marina Bay Sands partners extensively with Singapore Airlines and the Singapore Tourism Board to offer compelling tourism offerings. Past collaborations have included flight and stay packages built around culinary festivals and a Lunar New Year drone show. 23 “Singapore Tourism Board, Marina Bay Sands & UOB partner to enliven Marina Bay precinct,” Singapore Tourism Board news release, January 25, 2024.
• Use infrastructure linkage to promote new destinations. By extending route options, transportation providers can encourage visitors to create itineraries that combine familiar destinations with new attractions. In Asia, Thailand’s tourism authority has attempted to nudge visitors away from the most heavily trafficked parts of the country, such as Bangkok and Phuket, and toward less popular destinations.
• Deploy social media to reach different demographics. Innovative social media campaigns can help put a destination on the map. Australia launched its “Ruby the kangaroo” campaign in China to coincide with the return of postpandemic air capacity between the two places. A video adapted for Chinese context (with appropriate gestures and a hashtag in Mandarin) garnered more than 20 million views in a single day on one of China’s largest social media platforms. 24 Nicole Gong, “Can Ruby the kangaroo bring Chinese tourists hopping back to Australia?,” SBS, June 5, 2023.
• Embrace unknown status. “Off the beaten path” messaging can appeal to widely traveled tourists seeking fresh experiences. Saudi Arabia’s “#WhereInTheWorld” campaign promoted the country’s tourist spots by acknowledging that they are less familiar to travelers, using a series of images that compared these spots with better-known destinations.

As tourism stakeholders look to the future, they can take steps to ensure that they continue to delight existing travelers while also embracing new ones. Domestic and intraregional tourism remain major opportunities—catering to local tourists’ preferences while building infrastructure that makes travel more seamless within a region could help capture them. Creative collaboration among tourism stakeholders can help put lesser-known destinations on the map. Travel tides are shifting. Expertly navigating these currents could yield rich rewards.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Steffen Fuchs, Steffen Köpke, Steve Saxon, Sophia Wang, and Urs Binggeli for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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Best of the Best Things to Do

Below are the 2023 Travelers’ Choice Best of the Best Top Attractions—the most iconic landmarks you simply have to see to believe.

The Travelers’ Choice Awards Best of the Best title celebrates the highest level of excellence in travel. It’s awarded to those who receive a high volume of above-and-beyond reviews and opinions from the Tripadvisor community over a 12-month period. Out of our 8 million listings, fewer than 1% achieve this milestone.

Basílica de la Sagrada Familia

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Eiffel Tower

Trevi Fountain

Central Park

Plaza de España

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Kilmainham Gaol Museum

Sheikh Zayed Grand Mosque Center

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China recovers its position as top spender in 2023 as Asia and the Pacific reopens to tourism

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China has recovered its position as top spender on international tourism in 2023 as Asia and the Pacific consolidates its recovery from the impacts of the pandemic. In 2022, the list of top spenders was headed by the United States. France, Spain and USA took the top spots for most-visited destinations.

Top Tourism Spenders in 2023 

Chinese expenditure on travel abroad reached USD 196.5 billion in 2023, ahead of the United States (USD 150 billion), Germany (USD 112 billion), the United Kingdom (USD 110 billion) and France (USD 49 billion). Making up the top ten spenders for 2023 are Canada, Italy, India, the Russian Federation and the Republic of Korea. India jumped to 8th place, from 14th in 2019, confirming the growing importance of the country as a source market, while Italy rose from 10th to 7th position. 

Top in arrivals and receipts: France, Spain and USA consolidate their positions 

France consolidated its position as the world’s most visited destination in 2023 with 100 million international tourist arrivals. Spain was second with 85 million, followed by the United States (66 million), Italy (57 million) and Türkiye, which closed the top five with 55 million international tourists.  

Completing the top ten most visited destinations in 2023 are Mexico, the United Kingdom, Germany, Greece and Austria. Compared to before the pandemic, Italy, Türkiye, Mexico, Germany and Austria all rose one position, while the United Kingdom rose from 10th to 7th and Greece from 13th to 9th. 

On the side on international tourism receipts, the ranking is led by the United States, earning USD 176 billion in 2023, followed by Spain (USD 92 billion), the United Kingdom (USD 74 billion), France (USD 69 billion) and Italy (USD 56 billion). 

Following the above, destinations earning the most from international tourism in 2023 include the United Arab Emirates, Türkiye, Australia, Canada, Japan, Germany, Saudi Arabia, Macao (China), India and Mexico which complete the top 15 list of tourism earners.  

Upward movements in the ranking among the top earners include the UK jumping to the 3rd position from 5th pre-pandemic, the United Arab Emirates from 13th to 6th, Türkiye from 12th to 7th, Canada from 15th to 9th, Saudi Arabia from 27th to 12th, and Mexico from 17th to 15th.  

Croatia (from 32nd to 25th), Morocco (from 41st to 31st) and the Dominican Republic (43rd to 34th) also moved up in the Top 50 ranking by receipts in 2023, as did Qatar (from 51st to 37th) and Colombia (50th to 44th). 

Looking ahead to a full recovery globally in 2024 

As per the latest World Tourism Barometer , in 2023 international tourist arrivals recovered 89% of 2019 levels and 97% in Q1 2024. UN Tourism’s projection for 2024 points to a full recovery of international tourism with arrivals growing 2% above 2019 levels, backed by strong demand, enhanced air connectivity and the continued recovery of China and other major Asian markets. 

Total export revenues from international tourism, including both receipts and passenger transport, reached an estimated USD 1.7 trillion in 2023, about 96% of pre-pandemic levels in real terms. Tourism direct GDP recovered pre-pandemic levels in 2023, reaching an estimated USD 3.3 trillion, equivalent to 3% of global GDP. 

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Kenya’s Economy Exhibited Robust Growth in 2023 Despite Persistent Challenges

Nairobi, June 5, 2024  — Kenya’s real GDP growth accelerated to 5.6% in 2023, surpassing the previous year’s growth of 4.9%. However, GDP growth in 2024 is expected to slow down to 5.0%. This is according to the latest Kenya Economic Update (KEU) launched today, which adds that the 2023 growth was driven by the recovery of the agriculture sector, following improved weather conditions, and the services sector, with tourism and financial services contributing the most. 

According to the 29 th edition of the Kenya Economic Update: Fostering Trade for Robust Growth and Dynamic Job Creation, tight fiscal and monetary policies, elevated inflation, rising debt service obligations, high borrowing costs that constrained access to global capital markets, and the sharp depreciation of the shilling, framed Kenya’s macroeconomic performance in 2023. Despite this challenging environment, Kenya's economic growth demonstrated resilience and accelerated, driven by the government’s strategic policy measures that have bolstered overall macroeconomic stability.

“ In a decisive move to stabilize the macroeconomic environment, the Government of Kenya successfully conducted a partial buyback of the Eurobond in February 2024, a move that significantly eased the immediate liquidity constraints for the year, instilling a sense of calm in the markets ,” said Keith Hansen, World Bank Country Director for Kenya. “ The improved macroeconomic conditions, and re-access to international financial markets, are anticipated to boost investor confidence and private investment.”

The KEU projects a GDP growth of 5.2% on average during 2024-26, underpinned by favorable weather conditions for the agricultural sector, a recovery of industry, and the resilience of services. The outlook assumes adequate rainfall, government staying on the fiscal consolidation path, and the continuous implementation of the government’s structural reform agenda. The report projects that the private sector will play a stronger role in Kenya’s medium-term recovery.

Kenya’s efforts in trade integration could significantly contribute to substantial economic growth and job creation, notes the KEU whose special focus is on the role of trade integration in promoting economic growth and job creation. Trade patterns shows that agriculture is the largest contributor to Kenya’s exports, followed by minerals and chemicals. Kenya’s exports, however, have significantly underperformed. Also, the country has not diversified its products in the past few years and has lost competitiveness in the markets to which is has been exporting. 

The report notes that Kenya is proactively utilizing all channels on the global, continental, and regional level to enhance its role in the global economy and increase regional and international trade integration. Its aspirations extend beyond export growth, aiming to convert this growth into job opportunities.  

“Even though the export-to-GDP ratio has been declining, the potential for export expansion remains significant,” said Naomi Mathenge, World Bank Senior Economist for Kenya. “ Targeted policy considerations are crucial to fully capitalize on economic growth and robust job creation from trade integration.” 

Some of these policy considerations include revising trade and investment policies to foster export orientation, cementing policy coherence and predictability, strengthening institutions, enhancing strategic skills development, multifaceted support to export orientation and, drawing in more Foreign Direct Investment as a lever for optimizing the role of trade integration. The country will need to also mitigate trade and climate related vulnerabilities, especially for agricultural exports.

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Kenya Economic Update (KEU)

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