Domestic tourism can drive economic recovery, says UNWTO

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Destinations around the world are focusing more on domestic tourism as travel restrictions are relaxed globally.

(TAN): United Nations World Tourism Organization (UNWTO) has released its latest tourism and Covid-19 briefing note in which it predicts that domestic tourism will return faster than international travel and this represents an opportunity for both developed and developing countries to recover from the social and economic impacts of the pandemic. 

Based on this idea, destinations around the world are focusing more on domestic tourism as travel restrictions are relaxed globally. Many countries, for example Singapore, are offering incentives to encourage people to explore their own countries.

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UNWTO Secretary-General Zurab Pololikashvili said: “UNWTO expects domestic tourism to return faster and stronger than international travel. Given the size of domestic tourism, this will help many destinations recover from the economic impacts of the pandemic, while at the same time safeguarding jobs, protecting livelihoods and allowing the social benefits tourism offers to also return.”

The note also says that in most destinations, domestic tourism generates higher revenues than international tourism. In Organisation for Economic Co-operation and Development nations, domestic tourism accounts for 75% of total tourism expenditure, while in the European Union, domestic tourism expenditure is 1.8 times higher than inbound tourism expenditure. Globally, in terms of expenditure, the US leads the domestic tourism market with nearly USD 1 trillion, followed by Germany (USD 249 billion), Japan (USD 201 billion) and the UK (USD 154 billion).

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Given the value of domestic tourism and current trends, increasing numbers of countries are taking steps to grow their markets, UNWTO said. This new briefing note provides case studies of initiatives designed to stimulate domestic demand. As for example, Italy, Malaysia and Thailand are offering incentives in the form of discount vouchers, tax reliefs and subsidized room rates. whereas countries like Costa Rica, France and Argentina have launched special promotional events or campaigns to promote domestic tourism.

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