US$831bn luxury tourism market is growing quickly

Tourism is expected to increase with a compound annual growth rate of 6.4% in the next five years, and luxury tourism is expected to grow at a faster pace with a at 7.3%, according to a new report by German research group, Statista (Statista DossierPlus – Luxury Travel and Tourism’). China and India’s luxury markets are forecast to grow the most rapidly. Can medical travel form part of this market?

According to the report, high-end tourism is a niche market designed to satisfy the travel expectations of high net worth individuals. With a global value of US$831 billion, it stands out as a prime revenue driver.

The USA has the biggest luxury travel market with a value of US$263 billion. China is second with US$90 billion. China and India’s luxury markets are forecast to grow the most rapidly in the next five years, mostly driven by the growth of the domestic luxury market.

Dr Friedrich Schwandt of Statista emphasised: “The luxury tourism market accounts for 14% of revenue. This makes it a highly competitive growth environment. A key trend that has been shaping luxury tourism in recent years is the increase in multigenerational travel. Families are seeking an opportunity to spend quality time together. As Millennials and Generation Z gain economic influence and represent an increasing proportion of luxury travellers, adventure, uniqueness, as well as sustainability also become vital, as they contribute to a high-profile social media image.”

Research identified nine trending countries: USA, China, Germany, India, Mexico, Australia, United Arab Emirates, South Africa, and Morocco.

Luxury travellers have net assets of over US$1 million and spend an average of US$2,400 per travel day.

Luxury tourism is acquisitions of consumer goods, services and valuables for and during trips by individuals.

The report breaks down luxury tourism by domestic and international inbound tourism and reveals the countries where luxury international tourists are from.