PUBLISHER: TechSci Research | PRODUCT CODE: 1943673
PUBLISHER: TechSci Research | PRODUCT CODE: 1943673
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The Global Domestic Tourism Market is projected to expand significantly, rising from USD 2196.28 Billion in 2025 to USD 4782.84 Billion by 2031, reflecting a compound annual growth rate (CAGR) of 13.85%. This sector involves residents traveling within their own national boundaries for leisure, business, or visiting friends and relatives, driven by increasing disposable incomes, government initiatives to revitalize local economies, and infrastructure investments that improve regional accessibility. These factors encourage citizens to explore their own countries and sustain demand for local hospitality, with the World Travel & Tourism Council forecasting global domestic tourist spending to reach a record 5.4 trillion U.S. dollars in 2024.
| Market Overview | |
|---|---|
| Forecast Period | 2027-2031 |
| Market Size 2025 | USD 2196.28 Billion |
| Market Size 2031 | USD 4782.84 Billion |
| CAGR 2026-2031 | 13.85% |
| Fastest Growing Segment | Online |
| Largest Market | North America |
Despite this positive growth trajectory, the market faces a significant challenge due to persistent economic volatility and high inflation in key global regions. This economic instability erodes consumer purchasing power and reduces discretionary income, compelling travelers to prioritize essential expenditures over leisure activities. Consequently, households may shorten trip durations or lower their spending per trip, threatening the sustained revenue growth of the domestic tourism sector even as travel volumes recover.
Market Driver
Increasing government support and promotional campaigns for local tourism function as primary catalysts for market growth, with authorities actively leveraging cultural heritage and public holidays to stimulate regional economies. By enhancing the appeal of traditional festivals and subsidizing local travel initiatives, these efforts effectively redirect consumer spending toward domestic hospitality and retail sectors, buffering the industry against international volatility. For instance, the strategic promotion of the Spring Festival significantly boosted participation; according to the Ministry of Culture and Tourism of China, February 2025, in its holiday tourism data release, the country recorded a record 501 million domestic tourist trips during the 2025 Spring Festival, representing a 5.9 percent year-on-year increase.
The surging popularity of staycations and short-duration trips further propels the domestic market, driven by travelers prioritizing convenience and affordability. As households manage discretionary budgets, there is a marked shift toward frequent, short-haul getaways to nearby suburban or rural locales, which helps reduce seasonality risks for local businesses. According to Airbnb, October 2025, in the 'Emerging Destinations Redefine Winter Travel' report, families led domestic travel demand in the United States, with 80% choosing suburban and rural locations for their getaways, while the U.S. Travel Association forecast domestic travelers would spend a total of 1.2 trillion U.S. dollars in 2025, underscoring the financial resilience of the local travel economy.
Market Challenge
The persistence of economic volatility and high inflation rates presents a formidable obstacle to the sustained expansion of the global domestic tourism market. As the cost of living increases, consumers experience a direct erosion of purchasing power and a reduction in real discretionary income, forcing them to rigorously prioritize essential household expenditures over leisure activities. This financial strain compels travelers to adopt cost-saving behaviors, such as shortening trip durations, selecting lower-tier accommodations, or reducing spending on dining and auxiliary services, which limits the revenue yield per tourist even if visitor numbers appear to stabilize.
The impact of this inflationary pressure is evident in the rising costs of specific tourism components, which directly discourage discretionary travel. According to the U.S. Travel Association, in July 2024, the price index for recreation services rose by 3.4% compared to the previous year, signaling a persistent increase in the cost of leisure activities. This elevation in pricing for fundamental travel experiences creates an affordability barrier that dampens demand and restricts the market's ability to capitalize on the renewed interest in domestic exploration.
Market Trends
The integration of workations and bleisure into domestic itineraries is fundamentally altering travel patterns, as the normalization of remote work allows individuals to extend trips beyond standard weekends or holidays. This trend decouples tourism from strict seasonality, as employees utilize flexible schedules to explore regional destinations without taking formal leave, effectively merging professional obligations with leisure activities. According to Navan, January 2025, in the 'State of Corporate Travel and Expense 2025' report, 54% of business travelers took at least two trips that blended business and leisure in 2024, highlighting the widespread adoption of this dual-purpose travel model which creates new revenue streams for accommodations offering business-grade amenities.
A distinct shift towards sustainable and regenerative domestic tourism is simultaneously reshaping market dynamics, moving beyond simple environmental conservation to actively prioritizing local community welfare. Travelers are increasingly seeking experiences that mitigate overtourism and ensure economic benefits are equitably distributed among residents, often by visiting secondary locations or engaging in community-led activities. According to Booking.com, April 2025, in the '2025 Sustainable Travel Report', 53% of travelers are now conscious of tourism's impact on local communities, indicating a significant pivot towards responsible engagement with domestic destinations that restores rather than depletes local resources.
Report Scope
In this report, the Global Domestic Tourism Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Domestic Tourism Market.
Global Domestic Tourism Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: