We recently put together a report on the 15 countries in the world with the most domestic tourists, and in this article we take a look at the top countries.
Domestic tourism in a post-pandemic world
Domestic tourism refers to travel that an individual undertakes within their own country and does not cross borders. Both international and domestic tourism have been hit hard by the outbreak of the COVID-19 pandemic. According to the World Tourism Organization (WTO), the number of international tourists fell by 73% in 2020. However, the situation for domestic tourism was a bit different.
Lin and his colleagues conducted a survey of 65 regions in four countries in 2020: Austria, Germany, the Czech Republic, and Switzerland. Their analysis found that domestic overnight stays fell by 30% in densely populated regions, while less populated regions saw a 15% increase. The WTO’s 2020 report noted that as the tourism industry recovers, demand is likely to shift to domestic tourism and “nature-based” outdoor tourism. The organization also expects the recovery of domestic tourism to be much stronger than international travel.
For this reason, promoting domestic tourism has become a COVID-19 response policy for many tourism-based countries. The IMF reported that the Thai government has earmarked $700 million to promote domestic tourism. The country also subsidized hotel room rates by 40% for a total of 5 million nights. Costa Rica moved all national holidays to Mondays to extend the weekend and boost domestic tourism. Malaysia spent $113 million on allocating discounted domestic travel vouchers.
These efforts have helped many countries cope with the blow of declining international travel. Domestic tourism is already a large industry in many countries, with the WTO noting that 75% of tourism spending in OECD countries is domestic. Grand View Research valued the global domestic tourism market at $1.6 trillion in 2022. The market is projected to grow at a compound annual growth rate (CAGR) of 17% from 2023 to 2030, reaching $5.8 trillion by the end of the forecast period. According to the World Travel and Tourism Council’s 2023 Economic Impact Report, domestic traveler spending will increase by 18.1% in 2023, surpassing 2019 levels.
Airbnb and its impact on domestic tourism
As travelers flock to domestic locations, companies like Airbnb, Inc. (NASDAQ:ABNB) play a major role in helping travelers plan their trips. The company offers a variety of lodging options, from inexpensive to luxurious, allowing individuals to control how much they spend on lodging. During the 2020 pandemic, Airbnb, Inc. (NASDAQ:ABNB) commissioned a survey of 2,200 U.S. respondents, half of whom said that once lockdowns are lifted, they would like their first trip to be within a day’s drive. The company also reported that by May 2020, the percentage of Airbnb bookings within 200 miles had increased to account for half of all bookings. This figure was up from just one-third in February 2020.
The story continues
Recognizing this trend, Airbnb, Inc. (NASDAQ:ABNB) launched the Go Near campaign to encourage individuals to travel nearby. The company partnered with organizations such as the National Park Foundation and the North Carolina Tourism Board to achieve this. Additionally, Airbnb, Inc. (NASDAQ:ABNB) has been contributing to domestic tourism even before the pandemic. According to the company’s 2021 report, its platform saw a six-fold increase in domestic tourism from 2016 to 2019. The same report also detailed that during COVID-19, Airbnb’s increase in domestic tourism contributed R8 billion to the South African economy, helping to fuel economic recovery.
This trend continues in 2024. On February 22, 2024, Airbnb reported that the number of domestic travelers visiting the platform in Canada in 2023 will reach 8 million, up 30% from 2019. This insight is consistent with Abacus Data’s 2024 report, which noted that of Canadians planning to travel in 2024, 71% are heading to domestic locations. A similar situation was observed in the United States. According to Airbnb, U.S. residents traveled to more than 15,000 domestic cities and towns in 2023. Check out these 20 countries that could become major tourist destinations.
One of the reasons travelers prefer Airbnb is the experiences it offers. According to a report released by Airbnb in February 2024, 64% of the company’s guests feel that Airbnb accommodations offer a deeper insight into the local culture compared to hotels. 22% said they chose Airbnb because it offers local experiences. Meanwhile, 48% said their Airbnb host helped them discover hidden gems they would not have found otherwise.
So, to further enhance the domestic experience, Airbnb, Inc. (NASDAQ:ABNB) introduced a series of new features in its Summer 2024 release on May 1. One of the latest exciting features is the option to plan group trips. Group trips allow individuals to create shared wishlists, send trip invitations, and access in-app messaging. The company also launched Icons, a specific category for unique stay experiences, including movies, sports, and food. Examples of Icons include Barbie’s Malibu Dreamhouse in California and the Inside Out 2 headquarters in Las Vegas. According to CEO Brian Chesky, the Icon category has generated 371 million social media impressions and 8,100 media coverage worldwide in just one week since its launch.
As companies like Airbnb, Inc. (NASDAQ:ABNB) continue to make gains in domestic tourism, some countries are also taking the lead in domestic travel. Also see the fastest growing tourist destinations in 2024 and 20 beautiful places ruined by overtourism.
The country with the most domestic tourists in the world
The country with the most domestic tourists in the world
methodology
To compile a list of the 15 countries with the most domestic tourism in the world, we used the official UNWTO database. To paint an accurate picture of domestic tourism post-pandemic, we took into account values for 2021 and 2022. In this article, domestic travel refers to both overnight and day trips. Countries are ranked in ascending order of domestic travel by residents.
At Insider Monkey, we stick to stocks that hedge funds concentrate their investments in. The reason is simple: our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter, and has returned 275% since May 2014, beating the benchmark by 150 percentage points (more details here).
The country with the most domestic tourists in the world
1. United Kingdom
Total domestic travelers (2022): 2.9 billion
According to the 2023 UK Tourism Survey, residents spent £5.3 billion on domestic overnight travel from January to March. However, according to an April 2024 report from the British Tourist Board, overnight travel in the UK fell by 7% in 2023. The main reason for this is the decline in vacation travel, which accounts for the second largest segment share of domestic travel in the UK. Despite this decline, the UK still ranks first in the list of countries with the highest number of domestic tourists.
Want to know what other countries have thriving domestic tourism? Check out our report on the 15 countries with the best domestic tourism in the world.
At Insider Monkey, we dig into a variety of topics, but our specialty is identifying the best-performing stocks. Currently, artificial intelligence (AI) technology stands out as one of the most promising areas. If you’re looking for an AI stock that’s more promising than NVDA but still trades for less than five times its earnings, check out our report on the cheapest AI stocks.
Read next: Analyst sees new $25 billion ‘opportunity’ in NVIDIA, Jim Cramer recommended these 10 stocks in June.
Disclosures: None. This article originally appeared on Insider Monkey.
