Domestic Tourism Market Report: Trends, Growth, and Forecast 2024-2032

According to the report by Expert Market Research (EMR), the global domestic tourism market is projected to grow at a CAGR of15.2% between 2024 and 2032. Aided by rising disposable incomes, increasing infrastructure development, and a renewed focus on local culture and sustainable travel, the market is expected to grow significantly by 2032. Domestic tourism refers to travel within a country’s borders, offering individuals a chance to explore national landmarks, regional cultures, and leisure activities without leaving the country. It has become a vital aspect of national economies, serving as a critical contributor to GDP and employment.

The recent global pandemic spurred an unprecedented surge in domestic tourism as international travel was restricted. Even as global travel resumes, many consumers have developed a preference for local experiences, leading to sustained growth in domestic tourism. A heightened interest in exploring regional and remote areas, combined with efforts by governments and tourism boards to promote domestic travel, has positively impacted the market outlook.

Another significant factor driving the domestic tourism market is the development of tourism infrastructure, including hotels, roads, and tourist amenities. Governments across various countries are investing heavily in promoting local destinations, highlighting cultural heritage, adventure tourism, and wellness retreats. With the rise in domestic travel demand, businesses in the hospitality, entertainment, and transportation sectors are also thriving, further bolstering the market.

As per the domestic tourism market analysis, the increasing trend of work-from-anywhere and flexible working schedules has allowed individuals to combine work with leisure travel. This shift in lifestyle has not only encouraged frequent short-term getaways but also supported the demand for extended vacations, weekend trips, and staycations.

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Market Segmentation

The market can be divided based on type, age group, booking mode, and region.

Market Breakup by Type

• Leisure Tourism: Leisure tourism is one of the most significant contributors to the domestic tourism market, driven by families, couples, and solo travelers. People seek to explore natural landscapes, visit cultural heritage sites, or relax in scenic locations within their home country. The increasing trend of staycations has played a pivotal role in the growth of this segment, where people take short breaks to nearby destinations, often over long weekends or during holiday seasons.
• Business Tourism: Business tourism involves corporate travel, conferences, meetings, and trade shows. The growing trend of domestic business travel has significantly contributed to the market’s expansion, as more companies are organizing events, conferences, and exhibitions at national venues. Furthermore, with rising concerns over global travel costs and sustainability, domestic business trips are gaining traction.
• Adventure Tourism: Adventure tourism has emerged as a rapidly growing segment, particularly among younger travelers. Adventure activities such as hiking, camping, rock climbing, and water sports have gained popularity. Increased interest in sustainable and eco-friendly travel experiences has also bolstered demand for domestic adventure tourism.
• Cultural Tourism: Cultural tourism focuses on exploring a nation’s history, art, festivals, and traditions. This segment has seen growth due to greater interest in experiencing regional cultures, cuisines, and local craftsmanship. Government and private initiatives promoting festivals, cultural circuits, and heritage tourism have helped stimulate this market.
• Eco-Tourism: With rising awareness of environmental sustainability, eco-tourism is gaining attention. Travelers are increasingly opting for destinations that offer eco-friendly travel experiences, nature reserves, wildlife sanctuaries, and green lodging options. This trend aligns with the growing global focus on sustainable tourism practices.

Market Breakup by Age Group

• Millennials and Gen Z: These generations are major drivers of domestic tourism growth, particularly because of their strong preference for unique, off-the-beaten-path experiences. Their emphasis on digital engagement, social media sharing, and adventurous activities plays a significant role in the rising popularity of new and lesser-known domestic destinations.
• Families: Family tourism is another key market segment, with trips often organized around school holidays and long weekends. Families seek vacation spots that offer child-friendly activities, accommodations, and entertainment options. The demand for family-oriented leisure travel has driven investment in theme parks, family resorts, and kid-friendly tourist attractions.
• Seniors: The senior demographic continues to represent a substantial portion of domestic travelers. Many older travelers prioritize comfort, wellness, and cultural enrichment. Health tourism, spa retreats, and historical tours are among the offerings catering to this market segment.

Market Breakup by Booking Mode

• Online Travel Agencies (OTAs): The increasing reliance on online platforms for booking domestic trips has transformed the tourism landscape. OTAs offer a convenient platform for price comparison, trip planning, and last-minute bookings, leading to their growing adoption. As internet penetration and digital literacy increase, more people are using these platforms to book their trips.
• Direct Booking: Many travelers continue to book directly with hotels, airlines, and other service providers, especially for personalized services and local packages. Direct bookings also tend to attract more senior travelers and people visiting less urban destinations where digital access might be limited.
• Travel Agencies: Traditional travel agencies still maintain a foothold in domestic tourism, particularly for package tours, corporate bookings, and more complex travel arrangements. Their expertise and ability to customize packages remain valuable to certain segments of travelers, especially for group tours and niche travel experiences.

Market Breakup by Region

• North America: The domestic tourism market in North America is thriving, driven by well-developed infrastructure, scenic national parks, and bustling urban destinations. The United States and Canada are witnessing an increased interest in national parks, road trips, and cultural cities. Additionally, eco-tourism and adventure tourism are gaining momentum in the region, especially among millennial travelers.
• Europe: Europe’s domestic tourism market benefits from the continent’s rich cultural heritage, scenic landscapes, and advanced transport network. Many European countries, including the United Kingdom, Germany, and France, are promoting local tourism through campaigns that highlight regional culture and natural beauty. Staycations and weekend getaways have become popular due to rising living costs and climate concerns.
• Asia Pacific: The Asia Pacific region offers immense growth potential for the domestic tourism market due to its rapidly expanding middle class, diverse cultural attractions, and natural beauty. Countries such as China, India, Japan, and Australia have seen a significant increase in domestic travel, driven by growing disposable incomes and government initiatives promoting local tourism. Adventure tourism, spiritual tourism, and family-oriented trips are particularly popular in this region.
• Latin America: Domestic tourism in Latin America is flourishing, with countries like Brazil, Mexico, and Argentina emerging as key players. The region’s focus on eco-tourism, cultural heritage, and beach tourism has attracted significant domestic travelers. Governments are also investing in improving tourism infrastructure and promoting lesser-known destinations to boost internal travel.
• Middle East and Africa: The domestic tourism market in the Middle East and Africa is developing rapidly. Countries such as the UAE and Saudi Arabia are investing heavily in tourism infrastructure and cultural events to boost domestic travel. In Africa, domestic tourism is driven by natural attractions such as safaris, wildlife reserves, and scenic landscapes.

Competitive Landscape

The global domestic tourism market is characterized by a wide array of players, including government bodies, hospitality businesses, tour operators, and online travel agencies. Many regions have seen a surge in both private and public investment aimed at promoting local destinations, cultural experiences, and sustainable tourism practices.

The major companies and organizations analyzed in the report include:

• Marriott International, Inc.: Marriott is a key player in the domestic tourism market, offering a wide range of accommodation options that cater to various traveler segments, including families, business travelers, and leisure tourists. Their extensive hotel network, combined with strategic marketing campaigns, helps attract domestic tourists across multiple regions.
• Expedia Group, Inc.: As one of the leading online travel platforms, Expedia plays a critical role in domestic tourism, offering a seamless booking experience for accommodation, flights, car rentals, and activities. Their innovative technology and user-friendly interface make it easier for travelers to plan domestic trips.
• Airbnb, Inc.: Airbnb’s impact on domestic tourism is significant, particularly with its focus on local, unique accommodations. Their platform has expanded options for travelers seeking authentic experiences in their home countries, including rural stays, heritage properties, and eco-friendly lodges.
• Accor Hotels: With a strong presence in both urban and rural locations, Accor is a major player in the domestic tourism market. Their diversified hotel portfolio caters to different budget segments, from economy hotels to luxury resorts, which appeals to a wide variety of domestic travelers.
• Booking Holdings Inc.: Another major player in the online travel agency space, Booking Holdings offers a variety of accommodation options for domestic tourists. Their easy-to-navigate platform, paired with a strong marketing presence, makes them a go-to choice for domestic travel planning.

The global domestic tourism market is poised for sustained growth, driven by the increasing popularity of local travel, government initiatives promoting domestic tourism, and advancements in tourism infrastructure. Rising disposable incomes, a shift in consumer preferences toward sustainable and authentic experiences, and the continued development of online travel platforms will further propel the market forward. As travelers increasingly seek unique, close-to-home experiences, domestic tourism is expected to remain a key pillar of national economies, contributing significantly to GDP, employment, and regional development.