Report Description

Forecast Period


Market Size (2022)

USD 1840.67 billion

CAGR (2023-2028)


Fastest Growing Segment


Largest Market

North America

Market Overview

The global domestic tourism market has valued at USD 1840.67 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 15.85% through 2028. Domestic tourism refers to travelling of residents of a country within their own country. Domestic tourism is closely related to visiting relatives & friends and religious pilgrimages. Travel within the country is essential to the domestic economy since it increases local expenditure. The quality of life for residents is enhanced, and the local government has more money to invest in infrastructure and facilities improvements.

Domestic travel helps to overcome seasonality within regions by exposing tourists to less-visited rural areas that are typically ignored by foreign visitors. China has been extraordinarily successful in promoting domestic tourism, beating all other countries in domestic expenditure growth because to its growing middle class and the government's assistance. While China continues to lead in terms of absolute domestic expenditure growth, domestic travel and tourism expenditures have increased significantly in many emerging countries as their citizens start to have more disposable income.

Due to the closure of the international boundaries, internal travel increased significantly, especially in the smaller areas where people could unwind and enjoy some alone time. Furthermore, domestic travel avoids the requirement to apply for a visa and the additional time spent waiting for approval. Long-haul flights, hotel stays, tour guides, and the more expensive "foreign visitor" tickets for local sights are just a few of the extra expenses commonly associated with travelling abroad. These expenses also include visa and immigration fees.

Additionally, visiting local locations necessitates regular interactions with locals, which leads to the exploration of the true distinctive character of the location, people, and culture. Due to their familiarity with the local culture and proficiency in the language, tourists also learn a lot about the area they are visiting while travelling there.

Due to the rise of the tourist sector over the past century, people are now able to visit other states or cities to experience these locations and activities. The expansion of the travel and hospitality industries was also aided by the introduction of numerous activities and alluring packages by tour operators as a result of this development. In addition to the crucial roles that travel, and hotels played in the growth of domestic tourism, advancements in media technology also contributed to the trend.

Key Market Drivers

Economic Factors

Economic conditions play a pivotal role in shaping the domestic tourism landscape. Disposable income levels, employment rates, and overall economic stability determine people's ability and willingness to travel domestically. As economies grow and per capita income rises, individuals have more resources at their disposal to spend on travel experiences. This spending contributes directly to the tourism sector's growth, prompting businesses to cater to the needs and preferences of domestic travelers.

Sociocultural Shifts

Changing societal trends and cultural norms influence the way people approach domestic travel. As lifestyles evolve, individuals seek new experiences and a break from routine. Social media and the desire for unique, personalized experiences have spurred a trend of "experiential tourism," where travelers aim to immerse themselves in local culture, traditions, and activities. This shift has led to an increased interest in exploring one's own country, boosting domestic tourism.

Infrastructure and Accessibility

A well-developed transportation and hospitality infrastructure significantly impacts the domestic tourism market. Improved road networks, efficient public transportation, and the expansion of regional airports make it easier for people to access various destinations within their own country. Additionally, the availability of diverse accommodation options, ranging from luxury resorts to budget-friendly lodgings, enhances the attractiveness of domestic tourism.

Technological Advancements

The digital revolution has reshaped the way travelers plan, book, and experience trips. Online travel agencies (OTAs), mobile apps, and travel comparison websites provide users with a seamless platform to research and book accommodations, transportation, and activities. The convenience offered by technology has democratized travel planning, making it easier for a broader segment of the population to engage in domestic tourism.

Environmental Considerations

Increasing awareness of environmental sustainability has prompted travelers to seek eco-friendly and responsible tourism options. This has led to the rise of ecotourism and nature-based experiences, with travelers looking to explore their own country's natural wonders while minimizing their carbon footprint. Governments and businesses that prioritize sustainability can tap into this demand, promoting domestic tourism while preserving the environment.

Government Policies and Support

Government policies, regulations, and support have a substantial influence on the domestic tourism market. Initiatives such as visa liberalization, investment in infrastructure, and the promotion of cultural events can encourage both domestic and international visitors to explore the country. In some cases, governments offer incentives to attract tourists, contributing to the sector's growth.

Cultural and Heritage Tourism

Countries rich in cultural heritage and historical sites attract travelers interested in exploring their own history. Domestic tourists often seek to connect with their roots, learn about their country's past, and engage in cultural experiences. This has led to the development of cultural tourism routes, heritage trails, and museums that cater to domestic travelers' interests.

Educational Opportunities

The integration of education with travel has spurred growth in educational tourism. Students and families increasingly view travel as an opportunity to enhance their learning experiences through visits to museums, historical sites, and educational institutions. Domestic tourism benefits from this trend, as travelers explore their own country's educational and cultural offerings.