Global tourism revenue is expected to hit $5.9 trillion in 2019 and is forecast to continue growing, says a study.
While tourism in general is expected to increase with a compound annual growth rate of 6.4 percent in the next five years, luxury tourism is expected to grow at a faster pace with a CAGR of 7.3 percent.
High-end tourism is a niche market designed to satisfy the lavish travel expectations of high-net-worth individuals. With a global value of $831 billion, it stands out as a prime revenue driver.
The most recent DossierPlus by Statista focuses on the economic relevance of the tourism industry with a special glance on global luxury tourism. The statistics reveal predominant trends, such as the most significant travel destinations per region and a revenue forecast for up to 2023.
Currently, the US has the biggest luxury travel market with a value of nearly $263 billion. China comes in second with a market value of approximately $90 billion. China’s and India’s luxury markets are forecast to grow the most rapidly in the next five years, mostly driven by the growth of the domestic luxury market.
Dr Friedrich Schwandt, founder and managing director of Statista, emphasised: “The luxury tourism market accounts for 14% of the revenues today already. This makes it a highly competitive growth environment. A key trend that has been shaping luxury tourism in recent years is the increase in multigenerational travel. Families are seeking an opportunity to spend quality time together and strengthen bonds. As Millennials and Generation Z gain economic influence and represent an increasing proportion of luxury travelers, adventure, uniqueness, as well as sustainability also become vital, as they contribute to a high-profile social media image.”
The researchers identified trending destinations based on the highest total internal tourism revenues in their regions. Thus, this study provides detailed information on the luxury tourism industry of these nine countries: the US, China, Germany, India, Mexico, Australia, the UAE, South Africa, and Morocco.
The tourism and travel market shown by Statista includes characteristic products, connected products, and other tourism-related services and goods. Luxury travellers in this study have been defined by their assets: They have net assets of over $1 million and spend an average of $2,400 per travel day.
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