Domestic Tourism

Global Domestic Tourism Market to Reach US$5.5 Trillion by 2030

The global market for Domestic Tourism estimated at US$2.2 Trillion in the year 2024, is expected to reach US$5.5 Trillion by 2030, growing at a CAGR of 16.4% over the analysis period 2024-2030. Adventure Tour, one of the segments analyzed in the report, is expected to record a 19.4% CAGR and reach US$1.6 Trillion by the end of the analysis period. Growth in the Spiritual / Cultural Tour segment is estimated at 13.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$604.4 Billion While China is Forecast to Grow at 22.2% CAGR

The Domestic Tourism market in the U.S. is estimated at US$604.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.2 Trillion by the year 2030 trailing a CAGR of 22.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 11.9% and 14.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.1% CAGR.

Global Domestic Tourism Market – Key Trends & Drivers Summarized

Is Domestic Travel Emerging as the Cornerstone of the Post-Pandemic Tourism Revival?

In the wake of global disruptions to international travel caused by the COVID-19 pandemic, domestic tourism has emerged as the bedrock of recovery for the travel and hospitality industry across most nations. With restrictions on international movement, closed borders, and growing traveler caution, millions of consumers began exploring local destinations, resulting in an unprecedented revival of internal tourism ecosystems. Governments, recognizing the opportunity to revive local economies, launched campaigns promoting home-grown destinations, often offering incentives, tax breaks, and promotional support to both travelers and operators. Destinations that were once overlooked—rural retreats, offbeat towns, heritage villages, and ecotourism spots—are witnessing a surge in interest, especially from urban populations seeking nature, solitude, and authenticity. Moreover, the increased emphasis on safety and familiarity has led travelers to prefer closer-to-home experiences that offer flexibility and reduced risk. This shift has not only democratized travel but also opened new avenues for local businesses, home-stays, and regional hospitality operators. In countries like India, the U.S., Japan, and Australia, domestic tourism now accounts for a significantly higher share of overall travel expenditure than in previous years, indicating a structural rather than temporary transformation. In essence, the domestic traveler is no longer a fallback for global brands and operators—it is a core consumer segment with distinct needs, aspirations, and spending behavior. The growing localization of travel behavior, coupled with economic imperatives, has given domestic tourism a vital and resilient role in the redefined global travel landscape.

How Are Digital Platforms and Local Experiences Shaping the Modern Domestic Tourist?

The contemporary domestic tourist is increasingly digital, experience-driven, and inclined towards authenticity, creating a notable departure from the traditional seasonal and mass-market travel model. Technology is playing a central role in enabling this evolution—mobile apps, travel aggregators, review platforms, and social media influencers have become key drivers in shaping travel decisions, from destination discovery to on-ground bookings. Real-time availability of curated local experiences, user-generated content, and last-minute deals have empowered travelers to make spontaneous yet informed choices. Platforms like Airbnb Experiences, Google Travel, and TripAdvisor are now acting as gateways to immersive, community-rooted travel offerings that reflect culture, cuisine, and storytelling. The rise of “micro-cations” (short, frequent trips) and weekend escapes has also gained traction, particularly among working professionals and millennial travelers, thanks to remote work flexibility and increasing urban fatigue. These consumers are seeking meaningful, convenient, and often sustainable travel experiences that allow them to engage with nature, wellness, culture, and gastronomy. Technology is further bridging the gap between small, regional operators and national audiences, allowing homestays, local guides, and artisan cooperatives to tap into a wider market via digital exposure. Cashless payments, QR-code-based check-ins, e-passes, and online ticketing systems have enhanced convenience and reduced friction across the travel journey. This convergence of tech-savviness and local curiosity is helping redefine the domestic tourism experience—from a conventional holiday to a curated lifestyle pursuit driven by purpose, personalization, and discovery.

Is the Evolving Role of Regional Tourism Boards Creating Competitive Domestic Travel Markets?

With domestic tourism taking center stage, regional and state tourism boards are undergoing a strategic transformation, repositioning themselves as competitive brands within their own countries. Rather than simply facilitating travel, many have begun to market their destinations with the same intensity as international campaigns—highlighting local heritage, culinary richness, adventure trails, and seasonal events. Strategic collaborations with online travel agencies (OTAs), influencers, and media channels are creating awareness campaigns that rival those of global travel brands in reach and creativity. Regional differentiation has become a competitive advantage, with destinations offering thematic experiences such as wine trails, tribal circuits, heritage walks, spiritual getaways, and slow travel journeys to distinguish themselves in the crowded domestic landscape. Simultaneously, there is growing public investment in upgrading transport connectivity, signage, tourism infrastructure, hygiene protocols, and digital facilitation across high-potential destinations. In many countries, smaller airports, railway nodes, and roadways are being developed or revived with the express intent of bolstering domestic access and easing inter-regional movement. Additionally, public-private partnerships are flourishing in regional tourism development, giving rise to community-based tourism models that ensure both economic inclusion and cultural preservation. These efforts are not only enhancing the visitor experience but are also generating local employment, strengthening supply chains, and encouraging entrepreneurship among artisans, farmers, and small business owners. As each region begins to compete for domestic travel share, the diversity and depth of offerings available to the domestic tourist are expanding—making the internal tourism landscape more vibrant, competitive, and inclusive than ever before.

What Are the Key Growth Drivers Behind the Rising Demand in the Domestic Tourism Market?

The growth in the domestic tourism market is driven by several factors deeply rooted in consumer behavior shifts, policy responses, and structural changes in the travel ecosystem. A primary growth driver is the increased consumer emphasis on safety, proximity, and familiarity, which favors local travel over international vacations. Additionally, the rise of remote work and flexible schedules is creating more opportunities for frequent, shorter trips within national borders. Changes in spending patterns—wherein travelers now prioritize value-rich, experience-driven holidays—are further supporting the shift toward regional tourism offerings. Government incentives and promotional schemes aimed at stimulating local travel are also playing a pivotal role, especially where fiscal subsidies, travel vouchers, or state-specific campaigns are involved. The increasing penetration of digital tools in even remote areas is enhancing booking convenience and visibility for underexplored destinations, helping smaller players thrive. Another important driver is the rising popularity of purpose-driven travel—such as wellness retreats, eco-tourism, and heritage exploration—which finds a natural fit in domestic contexts. Improved transportation infrastructure, including new regional airports, better highways, and high-speed rail links, is making domestic travel faster and more efficient. Additionally, evolving accommodation preferences—like the surge in homestays, boutique hotels, and rural tourism—are aligning with the demand for authentic, immersive travel experiences. Social media exposure and peer recommendations are also influencing destination choices, particularly among younger demographics. Together, these interrelated drivers are reshaping the dynamics of domestic travel, positioning it as a sustainable, resilient, and strategically important segment in the broader tourism economy.

SCOPE OF STUDY:

The report analyzes the Domestic Tourism market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Tour Type (Adventure Tour, Spiritual / Cultural Tour, Sports Tour, Weekend Getaways Tour, Business Tour, Organized Tours); Tourism Type (Local Travel, Interstate Travel); Mode of Booking (Online Booking, Offline Booking)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 47 Featured) -

• Abercrombie & Kent
• Airbnb Inc.
• American Express Global Business Travel
• Audley Travel
• Booking Holdings Inc.
• Carlson Wagonlit Travel (CWT)
• China Tourism Group Duty Free Corp Ltd
• Club Med
• Cox & Kings
• Expedia Group Inc.
• G Adventures
• Gray Line Worldwide
• Hilton Worldwide Holdings Inc.
• Insight Vacations
• Intrepid Travel
• Jet2holidays
• Kuoni Travel
• MakeMyTrip
• Marriott International Inc.
• National Geographic Expeditions

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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