Insight Brief: Tourism Industry Trends in 2024

The tourism industry has long been a vital component of global economic growth, cultural exchange, and personal enrichment. However, the sector has experienced unprecedented challenges and transformations in recent years due to the pandemic.

As the world becomes increasingly interconnected and accessible, travel has become more accessible and affordable to a larger population. However, the industry is not immune to external factors such as geopolitical shifts, economic fluctuations, environmental concerns, and, most notably, the COVID-19 pandemic. These factors have drastically impacted the tourism sector, reshaping traveller behaviour, destinations, and the overall industry ecosystem.

Throughout the year we have been monitoring key trends shaping the global tourism industry and in this insight brief, we share some of the key trends stakeholders should be aware of heading into the new year.

Overtourism

As more countries removed travel restrictions, the floodgates opened up, and tourists around the world could finally act on their pent-up travel demand and explore the world freely once again. This led to a phenomenon widely known as ‘Overtourism’.

In 2024, Overtourism became a significant issue, especially in Spain, where British tourists in regions like the Canary Islands are encountering hostility from locals, who have expressed frustration with tourism's impact. Spanish authorities, including Housing Minister Isabel Rodriguez, expressed concern about rising housing costs, partly due to a low availability of public housing.

This year, popular tourist destinations also proposed different interventions to curb overtourism. Amsterdam ramped up efforts to address over-tourism by tightening regulations on hotel developments and limiting overnight stays. Since 2017, strict policies on new hotel construction have been in place, but recent measures now require that new hotels can only open if an existing one shuts down, and they must adhere to stricter sustainability criteria. Capri is tackling overtourism as daily visitor numbers, often exceeding 16,000 during peak seasons, strain its 12,900 residents. Overcrowding, housing shortages, and transportation issues are major concerns, despite tourism being a vital part of the local economy. To address these challenges, Capri has introduced higher visitor fees and is encouraging off-peak season travel to improve sustainability and preserve residents' quality of life. Similarly, Venice has introduced a €5 fee for day-trippers on 29 peak days to combat overtourism and improve livability for residents. Tourists must register online or at designated booths, with fines of €50 to €300 for non-compliance. On its first day, 113,000 people registered, but only 15,700 paid the fee.

Africa: Tourism’s New Darling

Our New Horizons Tourism industry report revealed that Africa’s tourism industry desperately needs to be revitalised. So we’re pleased to observe this emerging trend of Africa as Global Tourism’s New Darling. While Europe addresses overtourism, Africa is focusing on boosting tourism growth, exemplified by a UN Tourism initiative in partnership with Botswana's Department of Tourism. The initiative aims to uncover hidden tourism opportunities, develop sustainable projects, and engage stakeholders to leverage Botswana's strengths. Furthermore, the private sector is also increasing investments in the industry across Africa. For instance, Dr. Ifeanyi Okeke, Director-General of the Standards Organisation of Nigeria (SON), highlighted growing investments by European and African brands in Nigeria's tourism and hospitality sector, with foreign firms acquiring top brands to enhance their market appeal.

Apollo, a European tour company, introduced direct flights from Copenhagen to The Gambia. Glenn Bisgaard, Apollo's sales manager, noted growing interest among Danish travellers in discovering new winter destinations. The Gambia, celebrated as Africa's gentlest coast, offers diverse attractions such as sandy beaches, moonlit kayaking, national parks, local cuisine classes, and Gambia River boat trips, providing a unique and enriching travel experience.

Many African countries experienced significant industry growth throughout the year. Kenya's tourism revenue grew by 31%, reaching Ksh352.5 billion, driven by increased visitors from African countries like Uganda and Tanzania, with the United States as the leading overseas market. Emerging markets, including China, Italy, South Korea, and Australia, also boosted diversification. However, currency fluctuations led to a decline in average tourist spending. Tanzania's tourism sector is growing rapidly, prompting the government to allocate 179 sites for new accommodations. At the African Tourism Forum in Sharm El-Sheikh, Tanzanian officials engaged Turkish companies like Tripholi and Kilit Group to explore investments in luxury hotels, modern equipment, and furniture. In 2023, tourism receipts hit a record USD 3.4 billion, with a goal of attracting 5 million annual tourists by 2025, potentially generating USD 6 billion in revenue. Morocco's tourism sector grew significantly in the first half of the year, with 5.9 million arrivals by May 2024, a 15% increase from the previous year. In May alone, visitor numbers grew by 18%, totalling 1.3 million. Foreign tourists accounted for 56% of arrivals, up 17%, while visits from Moroccans abroad increased by 13%.

Unconventional Tourism

Tourist behaviours have also changed, as research suggests that they are leaning towards more unique and unconventional types of tourism. Chief among these types of unconventional tourism are Dark Tourism & Sleep Tourism. There’s an unexpected rise in interest among wealthy, well-travelled older Australians who seek to visit conflict-prone or less-travelled destinations like Afghanistan, Iraq, and West Africa. Despite Australian government travel advisories warning against visiting such places due to safety concerns, these adventurous travellers are motivated by a desire for authentic experiences, cultural immersion, and exploring regions rich in history. "Sleep tourism" is gaining traction in the $800 billion wellness tourism industry, offering vacations tailored to combat chronic sleep deprivation through luxurious retreats and hotel sleep suites. With over a third of Australian adults not meeting sleep recommendations, the economic impact is estimated at A$45 billion annually, alongside significant health risks. These vacations aim to reduce stress and improve sleep, though experts caution the effects may fade after returning to daily routines.

Borderless Tourism

The UN Tourism Visa Openness Report highlighted a drop in the need for traditional visas, from 77% in 2008 to 47% in 2023, enabling more spontaneous travel and increasing tourism revenue. Countries like Sri Lanka and Malaysia have embraced accessible visa policies, with Sri Lanka's free 30-day visa pilot targeting 2.5 million visitors. Thailand has expanded its visa-free stay to 60 days for travellers from 93 countries, attracting over 23 million international tourists in the first eight months of 2024. The United States has introduced a visa-free initiative for citizens of select countries, permitting stays of up to 90 days without a visa. This policy aims to simplify entry, reduce wait times, and attract more international travellers. It is expected to boost tourist numbers and drive economic benefits, aiding the recovery of the US tourism industry from the effects of the COVID-19 pandemic.

This trend is also prevalent across Africa with Malawi and Kenya recently lifting travel restrictions, supporting the African Union's Agenda 2063 to drive economic and social development. Removing visa requirements is expected to simplify travel, create jobs, and boost economic growth. South Africa's removal of visa requirements for Kenyan travellers, for instance, resulted in increased tourism, showcasing the potential of visa-free policies to enhance economic progress and cultural exchange. Benin and Ivory Coast have expanded their visa-free tourism policies, according to TTW. Benin now permits visa-free travel for citizens from various African nations (e.g., Burkina Faso, South Africa), Asian countries (e.g., Malaysia, Singapore), and Oceanian regions (e.g., Samoa, Niue). Similarly, Ivory Coast offers visa-free entry to citizens from 23 African countries, including Mali, Nigeria, and Morocco. These measures aim to enhance regional connectivity and promote tourism growth.

2024 proved to be a successful year of recovery for the global tourism industry and we believe 2025 will continue in similar fashion. For entrepreneurs operating in this space, 2025 will be a great opportunity to expand their businesses and cater to the growing demand from international tourists.

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