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Travel at Home: The Benefits of Domestic Tourism

It’s been a long couple of years since travel was stopped. Even now travel is in a precarious position as countries around the world constantly revise their border measures and restrictions in light of the changing Covid situation. But in the face of such adversity, travel hasn’t been completely stamped out. In fact, the true nomads have found a way to experience the thrill and adventure of travelling even in the midst of Covid by redefining what travelling meant. 

Travelling doesn’t always have to mean going away to faraway exotic places and experiencing foreign cultures. Sometimes the best places are close to home and under the radar. This is exactly the sentiment that gave rise to domestic tourism. 

Domestic tourism isn’t by any means a new phenomenon. But when international travel locked down, domestic tourism became the only respite for wayfarers creating a surge of interest for domestic locations where one could relax and holiday. Now that countries are cautiously reopening borders and easing Covid restrictions, domestic tourism may once again fade into the budget option for many travellers as they look to celebrate their newfound freedom with distance. But there are many reasons why domestic tourism shouldn’t be forgotten or looked down on, even with international shores opening. 

So hold on to your travel pillow and your planner as I go through the beauty and benefits of domestic tourism.       

Domestic Tourism 

Domestic travel is termed as travel within one’s own country. Even visitors to a neighbouring state would be classified as domestic tourists. Domestic travel is important for the domestic economy as it feeds money back into the local economy. This helps revitalise the livelihoods of locals, as well as bolsters the local government’s funds using which they can improve infrastructure and amenities for the local community. This is especially important considering the impact Covid-19 has had on people’s employment and financial outlook. Any bit of help that we can extend to those around us will go a long way to helping them through difficult times. 

But other than helping the local economy, there are other benefits to travelling domestically. 

Save your wallet

Perhaps the most obvious is the impact it has on your wallet. There’s no doubt that international travel can take a chunk out of your finances. This not only applies to foreign countries where the currency is stronger than your local currency or places where the cost of living is much higher. Travelling internationally often involves extra expenses such as immigration fees and visa expenditure, any fees associated with obtaining other necessary documents, tickets for long-haul flights, hotel stays, tour guides, and the more expensive ‘foreign visitor’ tickets for local attractions. And this list doesn’t even include the extra expenses associated with health measures for Covid-19.  

When travelling domestically, you automatically save on immigration and visa fees. You can also save on flight tickets if you travel by car or bus, opt for an AirBnB or stay at a friend’s place to save on expensive hotels, forego a tour guide in favour of exploring yourself, and benefit from the discounted locals’ ticket prices for attractions. 

Not only can these savings translate to a cheaper overall trip, it could also mean a few extra days enjoying the sunny beaches of California or squeezing in one more museum visit for the family.   

Revel in the hyperlocal

Domestic tourism also gives you space to truly enjoy the local. When visiting internationally, most tourists are caught up in what I call ‘the tourist hustle’—visiting all the places catering to tourists. Of course, this makes sense. You can’t go to Paris and not visit the Eiffel tower. But the problem is that these spaces have been developed and maintained by the local government specifically to appeal to tourists, and are often overcrowded . That’s why you often find a McDonalds right next to a major world attraction. Government’s know that some tourists would prefer more globalised, familiar cuisine than their local dishes.

Moreover, the people you run into and interact with during these stays will also likely be other tourists like yourself rather than the locals. By visiting only these spaces that cater to tourists, you miss out on experiencing the true local flavour. Furthermore, if you visit foreign countries with no knowledge of their customs and how to speak their language, you may find yourself experiencing miscommunication with the locals and losing a lot in terms of the depth of experience. 

When travelling domestically, however, you can bypass the major tourist attractions and get acquainted with the lesser-known hidden gems. This can help you rediscover your own culture and the beauty of your homeland. Speaking the same language as the locals and not immediately being recognised as a tourist may also go a long way towards gaining the locals’ favour and insights into the best places to visit, from their point of view. This will be an entirely new experience of travelling than the one you will have access to as an international tourist.    

Both domestic and international travel have their benefits and unique appeal. Next time you plan a trip, don’t just jump straight to international travel. Take a minute to see if there’s anyplace closer to home you’d like to visit. 

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The country with the most domestic tourism in the world.

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 .

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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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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The Domestic Tourism Growth Strategy (DTGS) 2012 – 2020

The Domestic Tourism Growth Strategy (DTGS) 2012 – 2020

Reasons for developing the Domestic Tourism Growth Strategy 2012 – 2020

Most South Africans did not yet have the opportunity or desire to travel in their own country. Research done in 2011 indicated the following reasons for this: Limited income and therefore cannot afford to travel, no reason to travel, time constraints, unemployment and disliking travelling. There is a lack of travel culture amongst South Africans, especially amongst the previously disadvantages communities, as a result of limited awareness of tourism. In certain areas in South Africa there is limited development of tourism products. Domestic tourism is also not contributing to the GDP at a desired level.

Objectives of the DTGS 2012 -2020 This vision is described in the document as follows: “Growing domestic tourism for a sustainable tourism economy”

In the document, the reasons for developing this strategy are explained as follows: “The strategy sets practical measures to generate value from travel and tourism in South Africa . It outlines practical mechanisms to address the lack of tourism culture amongst South Africans, particularly the previously disadvantaged communities.”

The DTGS 2012-2020 has four strategic objectives:  To increase domestic tourism revenue/income  To increase domestic tourism volume  To improve measures and efforts aimed at addressing seasonality and equitable/fair geographic spread  To enhance the level of the culture of travel and tourism amongst South Africans

Ways to meet objectives To raise the number of Domestic tourists, the Department of Tourism also wants to focus on the following:

 Maintain and make optimal use of current tourism facilities.  Introduce new tourism products where there is potential  Encourage pre- and post tours for people attending key business events in other parts of the country  Engage with sports associations to introduce and promote pre-and-post event tours  Increase the culture for travel for tourism purposes  Improve performance of Tourist Information Centers  Introduce a Domestic Travel Card similar to SANPark’s Wild Card for domestic tourists to obtain discounted packages  Enhance the level of domestic tourism marketing by setting up provincial marketing offices in other provinces to create inter-provincial travel  Affordable, safe and convenient access and modes of transport to tourism destinations

 Recognise the role of travel agents, banks, websites, mobile phones, etc. in marketing

The five domestic market segments according to the DTGS 2012-2020 Reasons for segmentation of domestic tourists Research done during 2011 indicated that more than 8 million South Africans can afford to travel. These South Africans were grouped into five segments based on similarities in travel behavior and preferences. These five markets segments (also called target groups) will be the focus of the domestic tourism marketing campaign. Their interests and reasons for travel were used to compile a marketing message for each segment. This will be used in marketing campaigns to “grow domestic tourism volume”

Segments Profile Reasons to travel Preferred type Marketing message Income indicated as of holiday amount available to spend per month 1 Spontaneous Aged 18 – 24; all races; To get away from the Prefer a Have fun in new budget income about monotony of daily life; weekend surroundings, either explorers R5000 add to life experiences, holiday filled with existing friends or discover new people, with activities new friends met on the places and adventures way 2 Aged 35 and older, To educate their Special offers Spend quality family New horizon black, coloured and children and broaden on flights and time; broaden the families Indian; income R5000 – their perspectives; hotels would family’s horizons; being R10000 quality family time; encourage rewarded for hard reward for hard work them to travel work more Aged 35 and older, To boost social status; Prefer a Domestic travel is the 3 black, coloured and to experience the finer weekend quick and easiest way High-life Indian; income R10000 + things in life in new and holiday filled to enjoy invaluable and enthusiasts different settings with activities. enviable world-class experiences 4 Aged 25- 45; white; Travel is a way of life; Travel to South Africa has so Seasoned income R5000 + they grew up going on escape, relax many different places leisure seekers regular holidays and and spend and ways to escape. understand the value of quality time Relax and spend travel experiences. with loved quality time with loved They prefer memories ones. ones over commodities 5 Aged 25- 40; black; Escape the city and Special offers Break away from daily Well-to-do income R10000 or more spend time with family on flights and pressures, whether Mzanzi families disposable income per and friends in new and hotels would relaxing with family or month different locations; encourage having good times with expose their children to them to travel friends alternative ways of life more and activities 2

The Domestic Tourism Marketing Campaign

A new domestic tourism marketing campaign was launched by SA Tourism (SAT) on 2 May 2012 by then Minister of Tourism Marthinus van Schalkwyk . Since 2014 Mr Derek Hanekom has been Minister of Tourism.

NEW CAMPAIGN NAME: VAYA MZANSI (OLD SHO’T LEFT)

The slogan of the new campaign is: ‘Whatever you are looking for, it’s right here in South Africa’.

 Sho’t Left was one of South Africa’s successful marketing campaigns to motivate the number of young South Africans to travel.

 The new Domestic marketing campaign broadens its scope beyond the youth, and will encourage all South Africans to travel and enjoy the benefits and experiences of our own world class destinations.

 It aims to create the desire for travel among groups who did not grow up in a holidaying culture. It will target the 5 domestic markets segments as described above.

The key message of the new domestic tourism campaign is to travel and spend leisure time with family and friends, and enjoy the benefits and experiences of our own world class destinations. For South Africans who said they have no reason to travel, the following reason will be given: being a tourist in South Africa is enriching, exciting, stimulating and gives you time to reconnect with family and friends. It is an emotional benefit and an investment in you.

To download the DTGS 2012-2012; http://www.info.gov.za/view/DownloadFileAction?id=164428 To download the marketing campaign http://www.southafrica.net/sat/action/media/downloadFile?media_fileid=31803

Assessment and Forecast of Domestic Tourism Consumption in Russia

• INDUSTRIES AND INTERINDUSTRY COMPLEXES
• Published: 04 April 2023
• Volume 34 , pages 132–141, ( 2023 )

Cite this article

• E. G. Leonidova 1 &
• M. A. Sidorov 1  

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The article proposes an approach to determining the volume of domestic tourism in Russia and evaluates its dynamics from 2009 to 2020. Based on the use of intersectoral modeling, the economic effects of a twofold increase in the number of trips across the country planned by 2035 are determined. To achieve this indicator, a number of measures are required to increase tourist consumption within the country. In conclusion, directions are formulated that contribute to the activation of demand for domestic tourism.

Avoid common mistakes on your manuscript.

Introduction. The government of the Russian Federation has recently paid special attention to supporting domestic consumer demand. This is due to the need to restore the economy after the COVID-19 pandemic, as well as the introduction in 2022 of unprecedented economic sanctions in the European Union and the United States.

The issues of stimulating consumption remain acute, both because of the low level of income and the saturation of the domestic market with high-quality goods and services produced domestically. In particular, in May 2022, the President of the Russian Federation pointed out that the reduction in domestic consumer demand in 2020–2022 had a negative impact on economic dynamics in general, which required the development of measures to support it. Footnote 1 Thus, due to the colossal sanctions pressure, the decline in the country’s GDP in April 2022 amounted to 3% compared to the same period last year. Footnote 2 The negative dynamics of the indicator was largely influenced by the reduction in consumer demand; the volume of retail trade, public catering and paid services decreased over the same period by 6.7 pp.

The task of supporting consumption as one of the factors stimulating economic growth has not lost its urgency in recent decades. The solution to this problem as a whole is relevant not only for Russia, but also for other developing countries. Thus, according to researchers’ forecasts, the African region will become regional locomotives of global consumption in the near future due to the low base effect, as well as a group of developing countries in South and East Asia due to steady population growth, intensive urbanization and an increase in household incomes [ 1 ].

Since 2008, China has followed the domestic consumption model. In the 14th five-year plan and the program of the country’s long-term development goals until 2035, within the framework of the “double circulation” strategy, emphasis is placed on the growth of its level, based on the diversification of types, patterns and formats of consumption, and the strengthening of supply chains [ 2 ].

The importance of expanding consumption in the Russian economy is pointed out by many researchers. Experts call the main obstacle on this path the low level of incomes of the population [ 3 – 7 ] and the high level of their differentiation, the decrease of which, according to Shirov, “even if their general level is maintained, it can increase domestic consumer demand and positively affect the dynamics of GDP” [ 8 ]. It is emphasized that in addressing the issue of income growth, it is necessary to focus not only on reducing the number of poor people, but also on creating conditions that ensure investment in human capital [ 9 – 11 ].

The Russian government is pursuing a policy to support domestic consumer demand. Among the most effective ways for stimulating it is the introduction of preferential mortgages for the purchase of housing, launched in 2020 as an anticrisis measure during the pandemic and continued the next year. Analysts note that the result of the program was both an increase in demand for new housing [ 12 , 13 ], as well as an increase in prices for it. Footnote 3 The effectiveness of implementation can be judged by the growth in housing construction, which amounted to 6% in 2020–2021.

In the current difficult geopolitical conditions, the development of the domestic market and its saturation with high-quality goods and services is becoming a key task. As promising measures to stimulate demand, directions with a high multiplier effect are considered. As such, the development of gasification, which has a high potential for consumption in the domestic market, is called [ 14 , 15 ], the expansion of housing construction, the development of transport infrastructure and the agro-industrial complex. Footnote 4

Tourism has the highest multiplier effect among service industries. Stimulating the consumption of tourism services as a measure to revive consumer demand has proven to be effective in 2020 as a result of the introduction by the Government of the Russian Federation of partial compensation for the cost of buying tours in Russia, Footnote 5 the so-called tourist cashback, which continued in 2021–2022. This program to support domestic tourism, despite some “roughness,” is generally recognized as effective by both the tourist industry and the Government of the Russian Federation. For the period from 2020 to 2021 tour sales increased from 6.5 to 34 billion rubles, and the number of tourists using the program increased from 394 thousand to 1.7 million people.

It should be noted that the expansion of demand based on the growth in the consumption of tourism industry services is very promising, especially for the population with low incomes. As the results of studies show, “with an increase in incomes of less well-off groups, additional consumption will be least met by imports” [ 16 ]. According to the input–output tables published by Rosstat, the share of imports in the value of consumption of tourism services is minimal. In this regard, the intensification of demand for domestic tourism will contribute to the consumption of domestically produced products.

The increase in the consumption of tourism services is planned as part of the implementation of the national project “Tourism and Hospitality Industry” by ensuring the availability of travel for large groups of Russians, improving the infrastructure of the industry and increasing the efficiency of its management. In 2022, as part of supporting domestic tourism, the Government of the Russian Federation allocated subsidies to the regions in the amount of 3.5 billion rubles, on the development of tourism infrastructure, which implies an increase in the number of tourist centers in the country and an increase in supply. It should be noted that measures to support the tourism industry have been provided before, but the small amount of its funding did not allow us to talk about a significant impact on the growth of tourist activity of Russians. Footnote 6

Thus, the recent growth of state efforts to develop the industry requires an assessment of the parameters of the dynamics of its functioning and their clarification.

It should be noted that the official methodology for calculating the gross value added (GVA) of the tourism industry by country and regions, its share in GDP and GRP, approved by Rosstat in 2022, does not take into account the entire volume of output of tourism goods and services. The indicator is the difference between its cost and intermediate consumption and is calculated on the basis of the totality of production units classified as “Tourism” in the OKVED-2 classifier. Footnote 7 According to experts, Footnote 8 in addition to the types of economic activity directly related to tourism (hotels, travel agencies, museums, etc.), it also includes those types of economic activities, the goods and services of which are consumed not only by tourists, which leads to an overestimation of indicators, but also affects the quality of industry management.

From this point of view, the study of the volume of tourism output generated by domestic consumption seems to be relevant, clarifying its impact on economic indicators and making it possible to predict the dynamics in the context of meeting the industry performance indicators set in strategic documents, which determined the purpose of this study.

Methodology for estimating the volume of output by the tourism industry. In world practice, one of the tools to assess the impact of the industry on economic performance is the satellite (or auxiliary) tourism account (TSA), which is linked to the system of national accounts [ 17 ]. The basis for TSA data are the results of surveys of households, tourism organizations, and tourists. Currently, types of economic activities are drawn up on a regular basis in Canada, the United States, Spain, the Netherlands and other countries.

Researchers note that the introduction of TSAs is associated with a number of difficulties, including the lack of construction of regional accounts, the lack of information on tourism expenses and consumption proportions [ 18 – 20 ], as a result of which such accounts are not compiled in the Russian Federation.

Among the countries of the post-Soviet space, the leader in the implementation of the TSA is the Republic of Kazakhstan, in which it began to be developed in 2003 [ 18 ] Footnote 9 .

The calculation of the volume of the final output of tourism generated by domestic consumption is based on the tools proposed in studies [ 21 – 23 ], expanded by refining statistical data. The growth forecast for its volume is based on the use of an intersectoral model of the Russian economy.

The study assumes the assumption that the structure of spending on recreation for domestic tourists in the Republic of Kazakhstan and the Russian Federation is similar due to socioeconomic, cultural and mental proximity. This assumption is based on information obtained from sociological surveys, as well as the Tourism Satellite Account of Kazakhstan ( Figs. 1, 2 ), according to which Russian and Kazakh tourists traveling within the country spend approximately the same on the main items of expenditure on recreation.

Source. Kazakhstan Tourism Satellite Account 2021.

Fig. 2. Spending structure of domestic tourists in Russia in 2021.

Source: sociological survey of the travel and travel service Tutu.ru. https://travelvesti.ru/news/skolko-rossiyane-tratyat-na-puteshestviya-i-kak-raspredelyayut-byudzhet-poezdki.html. 9

The following information was used to estimate the volume of tourism output in the Russian Federation:

— Sociological survey data Footnote 10 of tourists about the amount of spending by Russians on one trip and their distribution.

— Data from the Tourism Satellite Account of the Republic of Kazakhstan on the cost structure of domestic tourists traveling for personal and business purposes.

— EMISS information characterizing the production and shipment of goods, works and services.

Determination of the volume of tourist output in the Russian Federation is carried out on the basis of the algorithm presented in Fig. 3 .

Fig. 3. Scheme for determining the volume of output of domestic tourism

in the economy of the Russian Federation.

Source: compiled by the authors.

Thus, in accordance with the presented algorithm, the volume of output of domestic tourism in the Russian Federation is calculated by isolating from the types of economic activity presented in the Russian qualifiers, the share that is due to the consumption of domestic tourists and their subsequent aggregation in the economic activity “Tourism.”

The calculation of domestic tourism output is determined at constant prices.

Results of approbation of the proposed approach to determining the volume of tourism output in the Russian economy. Based on the proposed approach, the dynamics of tourism output in the country from 2009–2020 is determined ( Fig. 4 ).

Fig. 4. Dynamics of domestic tourism output in the Russian Federation, % to the level of 2009.

Source. Calculated by the authors .

As follows from the results of the calculations, for 2009–2019, the indicator increased in comparable prices by 2.1 times, which indicates that the contribution of tourism enterprises in the country’s gross output has increased. During the analyzed period, a twofold increase in the indicator was noted in the period from 2015–2019, which is probably due to the popularity of recreation within the country, due, among other things, to the inclusion in 2014 of the Republic of Crimea—the center of beach recreation in the Russian Federation, as well as the closure in 2015 of the entry of tourists to Egypt and Turkey, both mass foreign destinations.

This is confirmed by statistical data characterizing the demand for tourism and transport infrastructure services. According to them, an increase in the number of air passengers by 1.4 times was noted on the indicated segment on domestic airlines ( Fig. 5 ).

Fig. 5. Dynamics of the number of passengers transported by air on domestic airlines of the Russian Federation.

Source. EMISS data.

Since 2014, there has been a steady positive trend in the number of Russians using the services of accommodation facilities ( Fig. 6 ). From 2014–2019 indicator has doubled.

Fig. 6. Dynamics of the number of Russians settled in collective accommodation facilities.

Similar dynamics are observed when analyzing the demand for tours in Russia, for 2014–2019, the volume of sales of vouchers also grew comparably ( Fig. 7 ).

Fig. 7. Dynamics of the number of Russians sent on tours in Russia.

From 2013–2016, there was a significant reduction in the outbound tourist flow; the number of Russians sent abroad by travel agencies decreased by 2.3 times ( Fig. 8 ).

Fig. 8. Dynamics of the number of Russians sent on tours abroad.

According to the results of the prepandemic 2019, the number of Russians sent on tours abroad did not reach the level of 2013. According to some estimates, only from 2014 to 2015, the number of tour operators sending tourists abroad has decreased by three times. Footnote 11

Thus, we can state an upward trend since 2014 towards domestic destinations and a weakening position of outbound tourism.

The coronavirus pandemic and the associated restrictions on the movement of people have greatly affected the performance of the industry in Russia. Its turnover fell 2.5 times to 1.5 trillion rubles at the end of 2020. Footnote 12 This correlates with the values obtained as a result of the calculations. According to the data received, the reduction in the volume of the final output of tourism for 2019–2020 amounted to 2.6 times, falling to the level of 2010.

For the analyzed period, the highest value of the indicator, amounting to 795 billion rubles, was noted in 2019.

As the calculation results showed, the share of tourism enterprises in the structure of output of goods and services is low, and for 2009–2019, increased slightly from 1.1 to 1.6% ( Fig. 9 ).

Fig. 9. Dynamics of the contribution of domestic tourism to the country’s economy:

— the share of tourism output in service industries; - - - share of tourism in total output.

Source. Calculated by the authors.

However, in the output of service industries, the contribution of the tourism industry is more significant—over the specified time interval, its value varied from 4 to 4.5%.

Thus, the calculations using the proposed tools made it possible to quantify the contribution that tourism directly makes to the national economy.

The implementation of the national project “Tourism and Hospitality Industry” assumes an increase in the number of trips in Russia by 2.1 times by 2030 Footnote 13 . Based on the tools used, calculations were made of the effects on the economy as a result of changes in domestic tourism consumption in the indicated volumes ( Table 1 ).

As follows from the calculations, the increase in gross output will be 2.9%. In particular, in tourism it will grow by 2.1 times, in the public sector, by 10.9%, in the information and communication technology (ICT) sector, whose products are actively used in the industry [ 24 ], by 3.7%, in the closely related with tourism, hotel industry and financial activities due to the accumulation of financial resources within the country, by 3.4%. To ensure the projected volume of output, an additional 1174 thousand employees and an increase in the wage fund by 760 billion rubles may be required.

The largest increase in the number of employees from a doubling of output in the tourism sector, in addition to itself, will fall on the public sector, the real estate sector, which also includes the rental of multiapartment buildings, residential buildings and apartments, the operation of hotels, campsites, etc., as well as trade due to growing consumer demand. A significant increase in the wage fund (by 230 billion rubles) is noted in the public sector.

Thus, the results of the calculations showed exactly how the effects of the growth of domestic tourism consumption will be distributed in the context of types of economic activity. The calculations performed demonstrate the importance of pursuing an economic policy aimed at increasing the tourist activity of Russians within the country.

On the prospects for stimulating domestic demand based on the growth in consumption of domestic tourism services. The results of the study made it possible to conclude the following:

1. Identified on the basis of the proposed tools since 2014, a steady growth trend in the final output of domestic tourism in Russia is mainly due to the reorientation of Russians to domestic holidays due to restrictions on their travel to popular countries (Turkey, Egypt), as well as rising prices for foreign tours. Footnote 14

2. The proposed approach to estimating the volume of determining the output of domestic tourism in Russia makes it possible to take into account the share caused by domestic tourism consumption in the total volume of output, as well as to calculate the potential effect of a twofold increase in demand for tourist trips within the country.

3. The obtained values of the effects for the economy from the growth of domestic consumption of tourism services determine the importance of increasing the tourist flow within the country.

4. Approbation of the proposed approach to determining the volume of output of the final product of domestic tourism showed the limitations of its application at the regional level, since the indicators of shipment of goods, works and services used for calculations by regions are associated with the place of registration of organizations, resulting in significant discrepancies that cannot be explained logically. The same shortcoming has the gross value added of the tourism industry calculated by Rosstat by regions, the methodology of which is based on information from the forms provided by enterprises.

Thus, based on the results obtained, we can conclude the following:

1. Stimulation of consumer demand on the basis of domestic tourism services is promising for the national economy, which is reflected in the growth of gross output and other economic parameters, but requires additional measures to increase its volume. It seems that the current efforts to enhance domestic tourism trips on the demand side (cashback, subsidizing programs for domestic commercial charter air transportation of passengers), although they contribute to the growth of sales of tours in the country and the opening of new destinations for tourists, but to a greater extent perform the functions of supporting the industry in times of crisis. They attract to travel within the country that part of the population that has made tours before, including abroad. This is indirectly confirmed by the data of sociological surveys, according to which, despite the high level of awareness, only 2% of respondents took advantage of the tourist cashback program, and the proportion of those who have not gone on vacation to other regions of the country over the past five years remains quite high (52%). Footnote 15 In this regard, it is advisable to expand measures to stimulate tourist trips around the country, aimed primarily at increasing the proportion of travelers among low-income groups of the population. Thus, “the gap in spending on recreation between the tenth and first decile groups is 35 times” [ 8 ], which significantly limits the ability of this part of the population to consume tourism services. This requires a significant reduction in the level of income differentiation. Therefore, with the onset of favorable conditions for the development of outbound tourism, it is possible to reduce the consumption of tourism services within the country due to the reorientation of the more affluent part of the population to outbound destinations, which were previously replaced by holidays in Russia.

2. It is promising to continue the policy of subsidizing tourist trips within the country in relation to certain categories of the population, including at the regional level. So, in 2022, within the framework of the national project “Tourism and the Hospitality Industry,” some constituent entities of the Russian Federation provide for subsidizing travel for schoolchildren in grades 5–9 in their region. Footnote 16 An interesting initiative of the Government of Moscow to subsidize tours for people of the older age category. Footnote 17 It seems that the dissemination of such experience is promising in other regions of the country.

3. It is necessary to accelerate the development of tourism infrastructure in the regions of the country to redistribute the domestic tourist flow, since at present the main demand falls on the cities. Moscow and St. Petersburg and the resorts of the Krasnodar Territory and Crimea. Footnote 18 According to research by analysts based on the analysis of depersonalized card transaction data, the regions of Russia have a very high potential for increasing the flow of tourists. Thus, a group of territories with the effect of a “high base” is distinguished, in which a high growth rate of tourist flow is noted Footnote 19 .

4. The study showed the importance of improving statistical information characterizing the development of domestic tourism, especially at the regional level. The indicators used to assess the contribution of the industry to the economy need to be revised, as they do not take into account the share of domestic tourism consumption. In this regard, it is possible to adapt the methodology of the tourism satellite account to the Russian conditions in Russia or conduct large-scale statistical studies to study the consumption of tourism services by households, clarify the structure of their spending on tourism, take into account domestic tourist flows, determine the volume of output generated by domestic tourism, without reference to place of business registration. The expansion of such studies contributes to a more objective reflection of the scale of tourism activity, which in a crisis can become the basis for developing effective measures to support the tourism sector of the economy [ 25 ].

The implementation of these areas will increase the volume of sales of tourism services consumed within the country by its residents, which contributes to the growth of the industry’s profitability and, given its multiplier effect, the economy as a whole.

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The article was prepared in accordance with the state task for the Vologda Scientific Center, Russian Academy of Sciences on the topic of research work no. FMGZ-2022-0012 “Factors and methods of sustainable socio-economic development of territorial systems in changing conditions of the external and internal environment.”

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Leonidova, E.G., Sidorov, M.A. Assessment and Forecast of Domestic Tourism Consumption in Russia. Stud. Russ. Econ. Dev. 34 , 132–141 (2023). https://doi.org/10.1134/S1075700723010124

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The Country with the Most Domestic Tourism in the World

Published on june 28, 2024 at 9:00 pm by zahaab rehman in business , economy , news.

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 .

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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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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Yahoo Finance United Kingdom The Country with the Most Domestic Tourism in the World

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

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January 2021

Summer 2019 to winter 2021

Other statistics on the topic Travel and tourism in Russia

Travel, Tourism & Hospitality

• Countries with the highest outbound tourism expenditure worldwide 2019-2023
• Leading outbound travel destinations in Russia 2021-2022
• Number of outbound tourists from Russia 2022, by territory
• Number of outbound tourism trips from Russia 2014-2022

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Statistics on " Travel and tourism in Russia "

• Travel industry revenue distribution in Russia 2022, by segment
• Tourism spending in Russia 2019-2022, by travel purpose
• Travel and tourism's total contribution to GDP in Russia 2019-2023
• Travel and tourism's total contribution to employment in Russia 2019-2023
• Outbound travel expenditure in Russia 2011-2022
• Outbound tourist flow growth in Russia 2022, by destination
• European Union (EU) Schengen visas issued in Russia 2010-2023
• International tourism spending in Russia 2011-2022
• Leading source markets for travel to Russia 2020-2022, by arrivals
• Domestic travel spending in Russia 2019-2022
• Number of nature protected areas in Russia 2015-2022, by type
• Estimated demand for inbound tourism in Russia Q1 2014-Q3 2023
• Inbound tourist flow growth in Russia 2020-2023
• Number of inbound tourist arrivals in Russia 2014-2022
• Travel industry organizations distribution in Russia 2022, by segment
• Number of tourism companies in Russia 2010-2022
• Most popular travel websites in Russia 2023, by traffic
• Number of package tours sold in Russia 2014-2021, by type
• Value of package tours sold in Russia 2014-2022, by type
• Package tour cost in Russia 2014-2022, by type
• Most popular travel destinations on package tours in Russia 2022
• Number of domestic airline passengers in Russia monthly 2020-2022
• Passenger traffic growth of airlines in Russia 2021
• Travel transportation consumer price in Russia 2022, by type
• Paid travel accommodation services value in Russia 2015-2022
• Travel accommodation establishments in Russia 2022, by federal district
• Total room area in travel accommodation in Russia 2013-2022
• Number of visitors in hotels in Russia 2010-2022
• Number of hotel visitors in Russia 2022, by travel purpose
• Overnight accommodation cost in Moscow monthly 2020-2023
• Hotel occupancy rate in Moscow 2023, by segment
• Average daily hotel rate in Moscow 2023, by segment
• Reasons to not travel long-haul in Russia 2022
• Intention to travel to Europe in Russia 2019-2022
• Summer vacation plans of Russians 2012-2023
• Travel frequency for private purposes in Russia 2023
• Average holiday spend per person in Russia 2011-2023
• Attitudes towards traveling in Russia 2023
• Travel product online bookings in Russia 2023

Other statistics that may interest you Travel and tourism in Russia

• Premium Statistic Countries with the highest outbound tourism expenditure worldwide 2019-2023
• Premium Statistic Travel industry revenue distribution in Russia 2022, by segment
• Premium Statistic Tourism spending in Russia 2019-2022, by travel purpose
• Basic Statistic Travel and tourism's total contribution to GDP in Russia 2019-2023
• Basic Statistic Travel and tourism's total contribution to employment in Russia 2019-2023

Outbound tourism

• Basic Statistic Outbound travel expenditure in Russia 2011-2022
• Premium Statistic Number of outbound tourism trips from Russia 2014-2022
• Premium Statistic Leading outbound travel destinations in Russia 2021-2022
• Premium Statistic Number of outbound tourists from Russia 2022, by territory
• Premium Statistic Outbound tourist flow growth in Russia 2022, by destination
• Premium Statistic European Union (EU) Schengen visas issued in Russia 2010-2023

Inbound and domestic tourism

• Basic Statistic International tourism spending in Russia 2011-2022
• Premium Statistic Leading source markets for travel to Russia 2020-2022, by arrivals
• Basic Statistic Domestic travel spending in Russia 2019-2022
• Basic Statistic Number of nature protected areas in Russia 2015-2022, by type
• Premium Statistic Estimated demand for inbound tourism in Russia Q1 2014-Q3 2023
• Premium Statistic Inbound tourist flow growth in Russia 2020-2023
• Premium Statistic Number of inbound tourist arrivals in Russia 2014-2022

Travel companies

• Premium Statistic Travel industry organizations distribution in Russia 2022, by segment
• Premium Statistic Number of tourism companies in Russia 2010-2022
• Premium Statistic Most popular travel websites in Russia 2023, by traffic

Package tours

• Premium Statistic Number of package tours sold in Russia 2014-2021, by type
• Premium Statistic Value of package tours sold in Russia 2014-2022, by type
• Premium Statistic Package tour cost in Russia 2014-2022, by type
• Premium Statistic Most popular travel destinations on package tours in Russia 2022

Transportation

• Premium Statistic Number of domestic airline passengers in Russia monthly 2020-2022
• Premium Statistic Passenger traffic growth of airlines in Russia 2021
• Premium Statistic Travel transportation consumer price in Russia 2022, by type

Accommodation

• Basic Statistic Paid travel accommodation services value in Russia 2015-2022
• Premium Statistic Travel accommodation establishments in Russia 2022, by federal district
• Basic Statistic Total room area in travel accommodation in Russia 2013-2022
• Premium Statistic Number of visitors in hotels in Russia 2010-2022
• Basic Statistic Number of hotel visitors in Russia 2022, by travel purpose
• Premium Statistic Overnight accommodation cost in Moscow monthly 2020-2023
• Premium Statistic Hotel occupancy rate in Moscow 2023, by segment
• Premium Statistic Average daily hotel rate in Moscow 2023, by segment

Travel behavior

• Premium Statistic Reasons to not travel long-haul in Russia 2022
• Premium Statistic Intention to travel to Europe in Russia 2019-2022
• Basic Statistic Summer vacation plans of Russians 2012-2023
• Premium Statistic Travel frequency for private purposes in Russia 2023
• Basic Statistic Average holiday spend per person in Russia 2011-2023
• Premium Statistic Attitudes towards traveling in Russia 2023
• Premium Statistic Travel product online bookings in Russia 2023

Further related statistics

• Premium Statistic Countries with the highest number of inbound tourist arrivals worldwide 2019-2023
• Premium Statistic Change in number of visitors from Mexico to the U.S. 2018-2024
• Premium Statistic Annual revenue of China Tourism Group Duty Free 2013-2023
• Basic Statistic Foreign exchange earnings from tourism in India 2000-2022
• Basic Statistic Number of international tourist arrivals in India 2010-2021
• Premium Statistic Leading countries in the MEA in the Travel & Tourism Competitiveness Index 2018
• Premium Statistic International tourist arrivals in Europe 2006-2023
• Premium Statistic National park visitor spending in the U.S. 2012-2022, by trip type
• Premium Statistic Economic contribution of national park visitor spending in the U.S. 2012-2022

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• Countries with the highest number of inbound tourist arrivals worldwide 2019-2023
• Change in number of visitors from Mexico to the U.S. 2018-2024
• Annual revenue of China Tourism Group Duty Free 2013-2023
• Foreign exchange earnings from tourism in India 2000-2022
• Number of international tourist arrivals in India 2010-2021
• Leading countries in the MEA in the Travel & Tourism Competitiveness Index 2018
• International tourist arrivals in Europe 2006-2023
• National park visitor spending in the U.S. 2012-2022, by trip type
• Economic contribution of national park visitor spending in the U.S. 2012-2022