World Market for In-Destination Spending

Delivery

This report comes in PPT.

Key Takeaways

Riding the wave of recovery

In-destination spending worldwide is growing in line with the rebound in tourism as pent-up demand and revenge travel internationally, powers forward. In 2022, in-destination spending reached USD2,187 billion and is expected to grow 6.9% over 2023-2027.

Green light for shopping

Shopping remains the dominant category for in-destination spending, encompassing retail and duty-free shopping. In 2023, the market is expected to be valued at USD831 billion in constant prices. Asia Pacific is a particularly strong market for shopping, with the activity seen by many as a critical component of their trip.

Dominant two

China and the US are by far the most dominant markets for in-destination spending, due to the size of their domestic tourism sectors. The markets continue to battle for first position, with China overtaking the US in 2023, as pent-up demand and revenge travel kicked in.

Experiences all the way

In-destination spending is benefiting from converging megatrends, such as Experience More and Sustainability, as consumers increasingly seek curated experiences that are steeped in local culture and gastronomy. This is a win win for destinations where much needed tourism spending remains in-destination, whilst creating jobs and opportunities for local communities.

Return of China

In the key growth destinations of India and Thailand, the return of China to global tourism will provide much-needed revenue, spent in-destination. In addition, the return of Chinese travellers will deliver growth, job creation and a sustainable future for travel and tourism.