Domestic tourism refers to trips that individuals take within their own countries, involving no crossing of international borders. Both international and domestic tourism suffered drastically when the COVID-19 pandemic hit. According to the World Tourism Organization (WTO), 2020 saw a 73% decline in international tourist arrivals. However, the situation for domestic tourism was different.
Domestic Tourism in a Post-Pandemic World
In 2020, Lin et al. conducted a study on 65 regions in Austria, Germany, the Czech Republic, and Switzerland. Their analysis showed a 30% decrease in domestic overnight stays in densely-populated areas, whereas there was a 15% increase in sparsely-populated areas. A 2020 report from WTO noted that as the tourism industry rebounded, the demand was more likely to shift towards domestic tourism and ‘nature-based’ outdoor tourism. The organization also anticipated a stronger recovery for domestic tourism compared to international travel.
Governments worldwide implemented policies to boost domestic tourism as a response to the pandemic’s impact. For instance, Thailand allocated $700 million to advance domestic tourism and subsidized hotel accommodations by 40% for five million nights. Costa Rica moved all national holidays to Mondays to extend weekends and encourage domestic travel, and Malaysia spent $113 million on discount vouchers for domestic travel.
These initiatives helped many countries deal with the loss of international travel. Domestic tourism was already significant in many nations, with the WTO noting that 75% of tourism expenditure in OECD countries is domestic. In 2022, Grand View Research valued the global domestic tourism market at $1.6 trillion, projecting it 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 2023 Economic Impact Report by the World Travel and Tourism Council, domestic visitor spending increased by 18.1% in 2023, surpassing 2019 levels.
Airbnb and its Impact on Domestic Tourism
Companies such as Airbnb, Inc. (NASDAQ: ABNB) have played a significant role in supporting domestic tourism. During the 2020 pandemic, Airbnb commissioned a survey of 2,200 US respondents, half of whom mentioned that they would prefer their first trip after the lockdown to be within a day’s drive. By May 2020, the percentage of Airbnb bookings within 200 miles had grown to cover half of total bookings, up from one-third in February 2020.
Airbnb launched its Go Near campaign, encouraging individuals to travel nearby. The company partnered with agencies such as the National Park Foundation and Visit North Carolina to promote local travel. According to a 2021 report, Airbnb saw a six-fold increase in domestic tourism from 2016 to 2019. During the pandemic, Airbnb’s rise in domestic tourism generated R8 billion for the South African economy, aiding economic recovery.
In 2023, Canada saw eight million domestic arrivals on Airbnb, a 30% increase from 2019. In the US, Airbnb reported that residents traveled to more than 15,000 domestic cities and towns in 2023. A February 2024 report by Airbnb showed that 64% of guests felt Airbnb provided a closer insight into local culture compared to hotels, and 22% chose Airbnb for the local experience.
To enhance domestic experiences, Airbnb introduced new features in its 2024 summer release, including the option to plan group trips and the Icons category for unique stay experiences. These efforts highlight Airbnb’s continued contribution to the growth of domestic tourism.
The Country with the Most Domestic Tourism in the World
To identify the countries with the most domestic tourism, we analyzed data from the UNWTO for 2021 and 2022, considering both overnight stays and same-day trips.
1. United Kingdom
Total Number of Domestic Trips (2022): 2.9 Billion
According to the 2023 Great Britain Tourism Survey, residents spent £5.3 billion on domestic overnight trips from January to March. However, an April 2024 report by Visit Britain noted a 7% decline in overnight trips in 2023, mainly due to a decrease in holiday trips. Despite this decline, the United Kingdom still ranks number one for domestic tourism.
Domestic tourism has proven resilient and crucial for many economies, and companies like Airbnb have significantly supported its growth. For further insights, you can explore our report on the 15 countries with the most domestic tourism in the world.
You Might Be Interested In:
