According to what follows from “Globetrotters drive tourism recovery“, a study he just published Allianz Trade according to the global tourism trend, Italy, with 57.2 million international visitors, was the 4th most visited country in the world in 2023, after France, Spain and the United States.
The data collected until May show that since the beginning of the year, the arrivals of international tourists to our country have increased by 7% (compared to the same period in 2023) and that the arrival of tourists is expected to reach double-digit growth at the end of 2024. Furthermore, in May the hotel occupancy rate in Italy was 78%, which is 10 points higher than the world average of 68% (also in May).
In terms of income from international tourism, Italy ranked 5th in 2023, with earnings of $55.9 billion, while Italians ranked 7th in spending on international tourism abroad, with $34.2 billion.
Household savings rates continue to rise in most European countries, but neither inflation nor uncertainty has weakened the recovery of the tourism sector. Demand for travel-related services continues to grow stronger than ever, giving the industry a pricing power unmatched by any other industry.
“Luxury tourism” VS “affordable tourism”
While luxury tourism attracts an increasing number of customers, budget hotels continue to dominate the market. Luxury hotels represent a very small share of the global market, making up only 3% of the total offer. However, demand for enhanced experiences and luxury travel is growing in developed economies: last year, this segment recorded the highest growth rate in revenue per available room – RevPAR (+5% year-on-year vs. +3% overall industry ) and average daily rates ( ADR) could further increase thanks to high-income users. However, as inflation continues to weigh on low- and middle-income families, the hotel industry is also expanding thanks to more affordable offerings. Before the pandemic, the largest share (27%) of hotels in the world fell into the “high-end” category, but the “economy” category took the lead from 2022.
Strong demand has also helped the hotel and cruise industries recover from the pandemic. After a 55% drop in revenue (2020), the world’s largest hotel chains have been experiencing a gradual and steady recovery in recent years.
In 2023, their revenues exceeded 13%. At the same time, EBITDA margins are likely to improve to 25.7% this year (compared to a pre-pandemic average of 23.5%) thanks to lower energy prices, especially in Europe.
The golden moment of the cruise
Demand for cruises has also grown significantly, in fact cruise revenue grew by +70% last year and is expected to grow by +15% in 2024, with new ships being delivered this year.
Major operators expect the summer of 2024 to surpass the summer of 2019, both in passenger numbers and profits, as ships are already almost fully booked. Despite the additional costs, EBITDA in the cruise market is expected to improve from 25% last year to 27% in 2024, thanks to optimized itineraries, cabin variety and lower fuel costs.
The “long way” is back in fashion
Meanwhile, tourists are increasingly packing their bags for long trips.
International travel is the biggest contributor to the recovery of global tourism. This is reflected in the increase in international and domestic “connectivity” of air routes: according to IATA, in 2023, connectivity increased by 28%, on an annual basis, for international routes and 10% for domestic ones. This is particularly significant for US citizens, who are enjoying the benefits of a stronger dollar from mid-2022 and are more willing to travel abroad despite geopolitical uncertainties. Not surprisingly, this desire to travel long-term coincides with a period when savings rates in the United States are very low (3.9% compared to 14.5% for the Eurozone or 11.1% for the United Kingdom).
France, Spain and Italy among the top five most visited countries in the world (2023).
Europe leads the way in passenger preferences
Europe remains the most popular destination for international travelers and is expected to maintain its “position”, given the weakness of the euro. In terms of attractiveness, Europe is by far the region that receives the largest number of tourists globally, with a market share of 54% in 2023, followed by Asia and the Pacific (18%) and the Americas (15%). France, Spain, and Italy were among the top five most visited countries in the world last year, making Europe the largest tourism revenue earner in 2023 ($660 billion, +7% compared to 2019 in real terms).
As a result, tourism represents an important economic activity for the EU (contributing 10% of its GDP) and will continue to do so. In the first quarter of 2024, the region has already exceeded pre-pandemic levels (+2% compared to the first quarter of 2019) in terms of international tourist arrivals. Two major sporting events (the European Football Championship and the Olympic Games) this summer will attract even more visitors to France and Germany.