Monday, April 19, 2021

Business Travel

Expect your international holiday to cost a whole lot more after tourists see a 200% increase in spend in these global destinations during 2020

traveling on holidays

The average sum spent by tourists has climbed by as much as 218% in some global tourism destinations, according to research by Hoo, the hotel room offer platform.

Hoo analyzed the global tourism market by looking at the sum of tourism receipts (money spent) and what this equates to on a spend per tourist basis when taking the number of tourism arrivals (visitors) into account. Hoo then looked at how this has changed across each destination when comparing 2020 to 2019.

Hoo’s research shows that the amount spent per tourist across 37 global tourism hotspots has increased by an average of 59% in 2020; Up from $1,152 to $1,830.

Most Expensive Holiday Destinations

The most expensive holiday destination in the last year has been for those visiting Australia. Despite international arrivals falling to 2.5 million in 2020 compared to 9.5 million the previous year, the country still saw $27.2 million spent across the tourism industry, equating to $10,760 per tourist!

The United States, Canada, and India also ranked as some of the most expensive holiday destinations, with the average tourist spending between three and four thousand dollars.

Biggest Increase in Holiday Spend

China has seen the most significant increase in spending per tourist in 2020. The cost of a holiday has soared by 218%, from an average of $545 in 2019 to $1,731.

Canada is not only one of the most expensive at $3,453, but this cost has also increased by 173% annually.

The cost of a trip to Belgium is up 128%, with the average tourist spending $2,180 in 2020, with Korea (+124%) and Australia (124%) also seeing spend per tourist increase by more than 100% in 2020.

Other nations to have seen a notable increase include India, Singapore, Thailand, Portugal, Japan, Saudi Arabia, Switzerland, the UAE and Vietnam, with tourism spend per person up by 60% or more year on year.

Biggest Reductions in Holiday Spend

Not everywhere has seen the spend per tourist increase. Russia has seen a -49% drop, with the average tourist now spending $232 compared to $451 in 2019.

Poland (-28%), Mexico (-18%), Croatia (-17%) Indonesia (-10%), Malaysia (-7%) and Greece (-4%) have also seen a decline, while Italy has remained largely unchanged (1%).

Hoo Co-founder, Adrian Murdock, commented: “It’s been an extraordinary time for international tourism, with global travel restrictions stifling our ability to travel and reducing the topline level of income seen across the tourism industry.

Despite a fall in both overall travel and tourism spend, the amount spent per person is disproportionately high when compared to previous years.

This has no doubt been driven by a few factors.

Firstly, high demand will have pushed up costs in areas with little to no restrictions, or indeed during periods when wider restrictions were eased. As a result, those braving it for a trip abroad will have been paying more for accommodation and other holiday outgoings than they might have in regular conditions.

Secondly, with our ability to go on holiday reduced, holidaymakers will have spent more to make the most of their time abroad, or upped their budget due to only having one holiday on the cards for the year.

With an exit plan now presented by the UK and other governments around the world, many will be anticipating a trip away this summer. However, depending on your destination of choice, you could find it will cost you a fair bit more than it would have before the pandemic, with a massive lift in demand likely to drive up prices even further.”

Biggest Increase in Holiday Spend Per tourist

Country2019 Spend per Tourist2020 Spend per TouristChange %
Korea (ROK)123427701.24
Saudi Arabia93715430.65
United Arab Emirates130521320.63
South Africa82412600.53
Hong Kong (China)121818180.49
United States270040110.49
Macao (China)215627830.29
United Kingdom133816730.25

Spend-per tourist is based on the total tourism receipts in each nation divided by the number of tourist arrivals in the same year.

Have you read?
World’s Richest People.
World’s Richest Women.
Richest Child Actors Of All Time.
Richest People In Africa.

Prof. Dr. Amarendra Bhushan Dhiraj
Prof. Dr. Amarendra Bhushan Dhiraj is CEOWORLD magazine's Chief Executive and Editorial Director. Under Dr. Amarendra's leadership, CEOWORLD magazine has become the world's most iconic news organization, whose rigorous reporting and unsurpassed storytelling connect with millions of business leaders every day. CEOWORLD magazine is known internationally for its editorial excellence, independent, quality research, in-depth analysis, and collaborations with people and partners from around the globe. He currently sits on the company’s board of directors and global management committee.

Prof. Dr. Amarendra Bhushan Dhiraj holds a Ph.D. in Banking and Finance from European Global School in France; a Doctoral Degree in Chartered Accountancy from European International University Paris; and a Doctorate in Business Administration from Kyiv National University of Technologies and Design (KNUTD), Ukraine. He received his Master of Business Administration degree in Finance and Banking and his Master's Degree In Chartered Accountancy from European Global School Paris. He also holds a Master of Business Administration degree in International Relations and Affairs from the American University of Athens, Alabama, United States. He is committed to lifelong learning. Dr. Amarendra is a Visiting Professor at Kyiv National University of Technologies and Design (KNUTD), Ukraine.

You can follow Prof. Dr. Amarendra Bhushan Dhiraj on Twitter, Facebook, and LinkedIn.
CEOWORLD magazine