Expand Globally: How to expand your business into emerging tourist destinations
Market Size and Growth Potential in the Tourism and Hospitality Industry
If you want to begin your journey into new markets it will require detailed market research. But what is the most important information you need to know?
First, you need to know the market size and growth potential of the new tourist destination you are entering. Generally, the projected growth of the global hospitality market is US$5,816.66 billion by 2027, with an annual growth rate of 5.5%(Statista). As for the tourism industry, the market volume is set to reach US$1,063.00 billion by 2028, with an annual growth rate of 3.47% (Statista). By analyzing data on the specific country’s GDP, population, and potential economic growth you will be able to make an informed decision on where to enter exactly. But why is researching countries so important? One size does not fit all and just because a certain country is a trendy tourist destination does not mean that your company will fit right in.
If 2022 was the year hospitality and tourism returned following the pandemic, 2023 was all about making up for lost time and ticking off bucket list items. But in 2024 and beyond, the industry has better than ever expected growth. According to data from the European Commision, leading destinations in the hospitality and tourism sector include the US, Germany, the UK, France, Italy, and Spain, each with its unique market requirements. This underlines the importance of thorough market research to determine which country best suits your company’s objectives.
Competitive Landscape in the?Industry
The next step is to identify the existing players and assess their market share, product offerings, and business models. This will help you determine your competitive advantage and market positioning. Currently, Europe holds up to 62% of the market share in this industry, North America about 16%, Asia-Pacific around 10%, the Middle East 7% and Africa 5% (Custom Market Insights). Some of the current trends in these countries include digitalization of services, sustainable tourism practices, and post-pandemic health protocols. There has also been a growing interest in unique experiences and eco-conscious choices, while technological advancements enhance convenience and safety for the industry.
Trends In The Biggest Tourist Destinations
Europe
Europe is currently witnessing cultural immersion. People are exploring fewer destinations in-depth, and they are connecting with local communities and traditions. There has been a rise of heritage tourism, driven by a fascination with history and architecture which is reshaping travel patterns across the whole continent.
North America
In North America, a leading trend is experiential travel. There has also been a rise in sustainable and eco-conscious destinations gaining traction, aligning with the region’s focus on environmental responsibility.
Asia-Pacific
The Asia-Pacific region is experiencing a rise in wellness and health-focused tourism. People are starting to prioritize destinations offering relaxation and holistic experiences. Digital nomadism is on the rise, with destinations like Bali becoming a place for remote working.
Latin America, Middle East, and Africa
In these countries, we see a growth in adventure and nature-based tourism. People are becoming more and more drawn to the region’s diverse landscapes. Cultural values are also becoming important as people love to explore historic sites and local traditions.
How do you make the right decision?
Deciding to expand into a new market is a big decision that requires a lot of research and effort.
Spona is a global B2B platform that helps companies expand into new markets. We simplify this process by connecting companies with expert digital service providers tailored to their specific expansion goals. Our platform streamlines project proposals, ensures accurate agency selection, and provides ongoing support through invoice management, project scope control, legal advice, and negotiation support. From market research agencies to artificial intelligence agencies, anything you need to break through in tourism destinations can be solved by contacting us.
Choose Spona to efficiently manage the complexity of global expansion and get ready to emerge to new tourist destinations.
Sources
1. Statista, https://www.statista.com/statistics/1247012/global-market-size-of-the-hospitality-industry/
3. Custom Market Insights, https://www.custommarketinsights.com/report/tourism-source-market/