We recently compiled a report on the 15 Countries with the Most Domestic Tourism in the World, and in this article we will look at the top country.
Domestic Tourism in a Post-Pandemic World
Domestic tourism refers to trips that individuals take within their own countries and thus, involves 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 a bit different.
In 2020, Lin et al. conducted a study on 65 regions in four countries, namely Austria, Germany, the Czech Republic, and Switzerland. Their analysis showed that domestic overnight stays had a 30% decrease in densely-populated areas, whereas 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 that recovery for domestic tourism would be much stronger than international travel.
This is why boosting domestic tourism became a COVID-19 policy for many tourism-based economies. The IMF reported that the government of Thailand devised $700 million for advancing domestic tourism. The country also subsidized hotel accommodations by 40% for five million nights in total. Costa Rica moved all national holidays to Mondays, in an attempt to extend weekends and thus encourage domestic tourism. Malaysia spent $113 million in allocating discount vouchers for domestic travel.
These initiatives helped many countries deal with the blow of losing international travel. Domestic tourism was already a big industry 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 to be worth $1.6 trillion. The market was 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 2023 Economic Impact Report by the World Travel and Tourism Council, domestic visitor spending saw an increase of 18.1% in 2023, surpassing 2019 levels.
Airbnb and its Impact on Domestic Tourism
As travelers flock to domestic locations, companies such as Airbnb, Inc. (NASDAQ:ABNB) play a huge role in helping them plan their trips. The company offers a diverse range of locations to stay, from cheap to lavish, which allows individuals to control the amount they want to spend on accommodation. During the 2020 pandemic, Airbnb, Inc. (NASDAQ:ABNB) commissioned a survey of 2,200 US respondents, half of whom mentioned that once the lockdown lifted, they would prefer 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 grown to cover half of total bookings. This value was only one-third in February 2020.
Keeping these trends in view, Airbnb, Inc. (NASDAQ:ABNB) 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 make this possible. Furthermore, Airbnb, Inc. (NASDAQ:ABNB) had been contributing to domestic tourism even before the pandemic. According to a 2021 report by the company, its platform saw a six-fold increase in domestic tourism from 2016 to 2019. The same report also elaborated that during COVID-19, Airbnb’s rise in domestic tourism generated R8 billion for the South African economy, urging economic recovery.
This trend has continued well into 2024 as well. On February 22, 2024, Airbnb reported that Canada saw eight million domestic arrivals on its platform in 2023, an increase of 30% from 2019. This insight falls in line with a 2024 report by Abacus Data, which noted that within the group of Canadians who plan to travel in 2024, 71% are aiming for domestic locations. A similar situation was seen in the US as well. According to Airbnb, US-based residents traveled to more than 15,000 domestic cities and towns in 2023. You can also check out 20 Countries That Have The Potential To Be Major Tourist Destinations.
Among other things, one of the reasons why travelers prefer Airbnb is for the experience it offers. A February 2024 report by Airbnb showed that 64% of the company’s guests felt like an Airbnb accommodation provided them a closer insight into local culture, as compared to a hotel. 22% mentioned that they chose Airbnb because it provides a local experience. Meanwhile, 48% mentioned that their Airbnb Hosts helped them find hidden gem locations, which they would not have found out about otherwise.
Thus, in order to improve its domestic experiences further, Airbnb, Inc. (NASDAQ:ABNB) introduced a bunch of new features in its 2024 summer release, which occurred on May 1. One of the latest exciting features is the option to plan group trips, where individuals can create shared wishlists, send travel invitations, and access in-app messaging. The company also launched Icons, a specific category for one-of-a-kind stay experiences across movies, sports, food, and more. Examples of Icons include Barbie’s Malibu Dreamhouse in California and the Inside Out 2 Headquarters in Las Vegas. According to Brian Chesky, the CEO, the Icons category managed to get 371 million social media impressions and 8,100 pieces of global media coverage within just one week of its launch.
As companies like Airbnb, Inc. (NASDAQ:ABNB) continue making strides in domestic tourism, certain countries are also taking the lead in local travel numbers. You can also take a look at some of 2024’s fastest-growing tourist destinations, as well as 20 beautiful places ruined by overtourism.
The Country with the Most Domestic Tourism in the World
Methodology
To generate this list of the 15 countries with the most domestic tourism in the world, we conducted the official database of the UNWTO. We have considered values from 2021 and 2022, to paint an accurate picture of domestic tourism post-pandemic. For the purpose of this article, domestic trips refer to both overnight stays and same-day trips. The countries are ranked in ascending order of the most domestic trips taken by the residents.
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The Country with the Most Domestic Tourism in the World
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 in domestic overnight trips from January to March. However, according to an April 2024 report by Visit Britain, in 2023, overnight trips declined by 7% in Great Britain. A major reason for this was the decline in holiday trips, which hold the second largest segment share in the UK’s domestic trips. Despite this decrease, the United Kingdom still ranks number one on our list of countries with the highest number of domestic tourists.
Curious to learn about other countries with high levels of domestic tourism? Check out our report on the 15 Countries with the Most Domestic Tourism in the World.
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