Urban Tourism

Global Urban Tourism Market to Reach US$10.3 Billion by 2030

The global market for Urban Tourism estimated at US$7.5 Billion in the year 2024, is expected to reach US$10.3 Billion by 2030, growing at a CAGR of 5.3% over the analysis period 2024-2030. Leisure, one of the segments analyzed in the report, is expected to record a 5.5% CAGR and reach US$4.4 Billion by the end of the analysis period. Growth in the Entertainment segment is estimated at 4.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.0 Billion While China is Forecast to Grow at 5.2% CAGR

The Urban Tourism market in the U.S. is estimated at US$2.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.7 Billion by the year 2030 trailing a CAGR of 5.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.0% and 4.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.3% CAGR.

Global Urban Tourism Market – Key Trends & Drivers Summarized

Why Are Cities Becoming the Epicenter of Modern Travel Desires?

Urban tourism is witnessing an unprecedented rise as cities across the globe evolve into dynamic, multifaceted destinations that cater to increasingly sophisticated traveler expectations. More than mere stopovers or transit points, cities are now the primary destinations themselves, offering rich cultural, culinary, architectural, and experiential depth. The appeal lies in the compact accessibility of a wide array of attractions—from historical landmarks and museums to cutting-edge art galleries, concert venues, and Michelin-starred restaurants—within a walkable or connected infrastructure. Modern travelers, especially millennials and Gen Z, crave authentic, immersive, and socially shareable experiences that urban centers are uniquely poised to deliver. Moreover, the global expansion of low-cost carriers and intercity transportation networks has made city-hopping more feasible, leading to the rise of “micro-cations” and long weekend getaways. Cities have also become testing grounds for “smart tourism” initiatives, blending digital innovation with urban charm to provide seamless, tech-enabled travel experiences. From mobile-based city guides to contactless museum entries and AI-driven itinerary planning, cities are aligning their offerings to meet the expectations of the hyper-connected global traveler.

How Is Technology Reshaping Urban Tourism Experience Design?

Technological innovation has fundamentally transformed the way travelers interact with cities, enhancing convenience, personalization, and real-time adaptability. The use of augmented reality (AR) and virtual reality (VR) in city tours allows tourists to visualize historical reconstructions or engage in gamified exploration of neighborhoods. Mobile apps integrate transit systems, booking platforms, and geo-located reviews to provide travelers with intuitive control over their itineraries. Smart kiosks, interactive digital signage, and multilingual voice assistance are now standard in many leading urban destinations, especially in Asia and Europe. Artificial intelligence is also used to analyze visitor flows and behavior patterns, enabling cities to manage congestion and improve urban planning. Digital payment systems and contactless transactions have not only enhanced safety during the post-pandemic travel rebound but also increased spending ease. Furthermore, data analytics tools help local governments and businesses to tailor services based on visitor demographics and preferences, fostering more inclusive and economically beneficial tourism ecosystems. As smart cities become the norm rather than the exception, the integration of technology into urban tourism continues to deepen.

What Role Do Culture, Community, and Creative Economies Play in Urban Tourism?

Cultural vibrancy and local authenticity have become critical assets in attracting urban tourists who are increasingly disinterested in generic, commodified experiences. Cities are rebranding themselves through festivals, heritage restoration, street art, culinary tourism, and creative districts that showcase indigenous crafts, music, and storytelling. Community-based tourism initiatives are enabling travelers to connect more meaningfully with local life, from guided neighborhood walks to cooking classes in residents’ homes. Moreover, the rise of the “bleisure” (business + leisure) trend has led cities to cater not just to tourists, but to digital nomads and hybrid workers seeking longer-term urban stays with rich cultural overlays. Urban tourism is also closely linked to the gig and creator economies, with locals offering bespoke tours, photography sessions, and unique Airbnb experiences. Cities that support and invest in their cultural infrastructure—such as Berlin, Seoul, Cape Town, and Buenos Aires—are benefiting from sustained tourism inflows even amid global disruptions. This coalescence of culture, commerce, and community has positioned cities as hubs of both creativity and consumption, redefining the urban tourism model.

What’s Fueling the Acceleration of Urban Tourism Growth Worldwide?

The growth in the urban tourism market is driven by several factors that reflect evolving urban infrastructure, shifting traveler preferences, and policy shifts in destination management. A key driver is the widespread development of urban transit systems and pedestrian-friendly infrastructure, which improves city accessibility for international and domestic travelers alike. Additionally, the post-pandemic emphasis on local and regional travel has led many to rediscover cities within close proximity, boosting short-haul urban tourism. The changing lifestyle patterns of younger generations—who prioritize experience over possessions—are increasing the demand for cultural, culinary, and nightlife experiences that cities uniquely offer. The proliferation of digital nomad visas and co-working hospitality hybrids is also turning cities into long-stay hubs for work-leisure travelers. On the policy side, many municipal governments are implementing destination marketing and sustainable tourism frameworks that balance visitor growth with local quality of life. International events, such as expos, global sports tournaments, and cultural festivals, are further catalyzing urban visitation. Finally, the fusion of public-private investment in creative urban spaces—like riverfronts, cultural districts, and innovation hubs—is creating new reasons for people to visit and revisit cities across the globe.

SCOPE OF STUDY:

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

Segments:
Purpose of Visit (Leisure, Entertainment, Shopping, Cultural, Other Purpose of Visits); Type of Activities (Sightseeing, Outdoor Recreation, Dining, Nightlife, Other Type of Activities); Type of Accommodation (Hotels, Hostels, Homestays, Other Type of Accommodations)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 36 Featured) -

• Accor S.A.
• Airbnb, Inc.
• Audley Travel
• Booking Holdings Inc.
• City Sightseeing
• ClearTrip
• Expedia Group
• G Adventures
• Go City
• Hays Travel
• Intrepid Urban Adventures
• MakeMyTrip
• Merlin Entertainments
• SOTC Travel Limited
• Thomas Cook
• Thrillophilia
• TransIndus
• Travelex
• Urban Tour
• Yatra

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