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Recovery of domestic tourism during the COVID-19 pandemic: An experimental comparison of interventions

Michael volgger.

a School of Management and Marketing (Tourism Research Cluster), Faculty of Business and Law, Curtin University, 6845, Perth, Western Australia, Australia

Ross Taplin

b School of Accounting, Economics and Finance (Tourism Research Cluster), Faculty of Business and Law, Curtin University, GPO Box U1987, 6845, Perth, Western Australia, Australia

Annika Aebli

c Chair of Tourism, Catholic University of Eichstätt-Ingolstadt, Pater-Philipp-Jeningen-Platz 2, 85072, Eichstätt, Germany

During the persistent COVID-19 pandemic, tourism destinations try to restore intention to visit by implementing recovery marketing strategies on domestic tourism markets. Within a risk acceptance framework, this research compares the effectiveness of measures a destination can undertake to encourage domestic tourists to visit during or in the immediate aftermath of a lingering public health crisis. We conduct a sophisticated randomised experiment with 666 Australians that tests causal effects on intention to book of 11 manipulated factors, including different communication messages, hygiene measures, discount and cancellation policies and framework conditions. The factors were informed by theory and qualitative interviews conducted with industry experts and potential tourists. The study finds that the presence of international visitors and a surge in COVID-cases decrease domestic tourists’ booking intentions during the COVID-19 pandemic. Positive effects on booking intentions can be obtained from retentive advertising, discounting and flexible cancellation policies.

1. Introduction

The COVID-19 pandemic has hit the international tourism and hospitality industry severely with a decline of international tourist arrivals by 74% in 2020 compared to 2019 ( UNWTO, 2021 ). Given the impact the COVID-19 pandemic has had on freedom to travel and tourist confidence, the tourism industry has focussed on domestic and nearby markets to ensure a gradual recovery. Existing literature acknowledges that recovery marketing is crucial to expedite even a gradual return to normality ( Lehto et al., 2008 ; Walters & Mair, 2012 ).

However, there is limited research into the effectiveness of message contents, product variations and other marketing variables that tourism destinations can apply as disaster recovery measures ( Mair et al., 2016 ). While acknowledging the relevance of recovery marketing as a means to mitigate perceived risks in the context of COVID-19 ( Matiza, 2020 ), studies on marketing interventions relating to the COVID-19 pandemic remain scarce. The few studies that investigate recovery marketing measures in relation to COVID-19 focus on single measures, not comparing different variables against each other, and do not assess marketing effectiveness. Authors identify refunding cancellations ( Garrido-Moreno et al., 2021 ; Hao et al., 2020 ), ‘safety-related’ messaging and the promotion of ‘restorative experiences’ ( Ketter & Avraham, 2021 ) as components in crisis marketing strategies, but do not evaluate these efforts. In a rare exception, Hang et al. (2020) find that communication strategies based on ‘shared emotions’ can establish an emotional attachment with potential tourists during the pandemic, which is critical for tourism recovery.

The existing literature on tourism disaster recovery exhibits an additional gap with respect to testing the effectiveness of most immediate recovery-marketing measures if implemented while the disaster is still lingering. Findings from previous disaster literature are not directly transferrable to a continuing global pandemic since most of this literature focused on situations where disasters are temporarily circumscribed and are often one-off events (including natural disasters such as bushfires, tsunamis and earthquakes, and terrorist attacks) ( Mair et al., 2016 ; Pforr, 2009 ). Being among the few to consider long-term crises and disasters, Beirman (2003 , p.8) reminds us that it is “an erroneous assumption that a restoration and recovery marketing campaign can be implemented only when the crisis is deemed to be over”. This gap in knowledge on in crisis marketing is particularly problematic in the event of a persistent global pandemic with multiple waves.

The diffuse risk perceptions and material difficulties in crossing borders in a prolonged global pandemic situation, turns domestic markets into more readily available sources of immediate tourism recovery. It is well-known that shorter distance can result in de-escalated or geographically more granular perceptions of the actual risk ( Glaesser, 2006 ; Walters & Clulow, 2010 ). Moreover, in the context of a global pandemic, distance of travel becomes a risk factor in itself ( Zenker & Kock, 2020 ) while emotional attachment and solidarity may be more pronounced in nearby markets. Therefore, many authors consider domestic tourists as a particularly suitable target for the most immediate recovery-marketing efforts in the context of disastrous events ( Beirman, 2003 ; Henderson, 2008 ; Ladkin et al., 2008 ; Taylor & Enz, 2002 ). With COVID-19, domestic tourism initiatives are particularly important to mitigate perceived risk and kickstart the global tourism industry via such domestic ‘confidence-building strategies’ ( Matiza, 2020 ). Existing literature on tourism disaster recovery also indicates that repeat visitors to a destination may be relatively more likely to return in the immediate aftermath of a disaster than first-timers ( Chacko & Marcell, 2008 ; Walters & Clulow, 2010 ; Walters & Mair, 2012 ). However, empirical evidence on disaster recovery marketing effectiveness that specifically targets domestic tourists who have visited the destination before is scant.

This paper analyses and compares recovery marketing measures to reduce perceived risk or make risk more acceptable, and restore intention to revisit a domestic tourism destination in the immediate aftermath of the most acute stage of a lingering public health crisis. In other words, this paper tackles recovery at the cusp between the ‘intermediate’ and ‘long term recovery’ stages in Faulkner's Disaster Management Framework ( Faulkner, 2001 ). This study concentrates on questions of recovery-marketing to lure domestic tourists who had visited previously back to a destination. The paper presents a scenario-based experimental study with 666 participating Western Australian adults to test the 11 independent variables defined by the 11 randomly manipulated factors. This experimental design manipulating 11 factors simultaneously within one study has several advantages compared to manipulating just one or a few factors. First, the information provided to respondents is more realistic and it is more difficult for respondents to identify individual factors being investigated, helping to reduce bias. Second, the effects of each factor relative to other factors are available. Third, by not holding many factors constant but allowing them to vary results are more generalisable. Fourth, interaction effects can be investigated to see if the effect of one factor depends on another factor. Such experimental studies are very rare in the existing tourism disaster and crisis literature. Specifically, the employed randomised experiment tested causal effects of a number of recovery measures and contextual factors on Western Australians' willingness to return to the domestic Australia's South West tourism region. The proposed recovery measures were informed by a risk perception and risk acceptance framework, existing literature on tourism disasters and crises, ongoing discussions in the international tourism industry and wider media as well as 18 semi-structured interviews with tourism industry experts and potential domestic tourists.

2. Literature review and hypotheses

2.1. tourists’ risk perceptions during and after the covid-19 pandemic.

Perceived risk “refers to the combined measurement of ‘perceived probability’ and ‘perceived consequences’ of a certain event or activity” ( Bubeck et al., 2012 , p. 1483). A variety of factors influence consumers' risk perceptions, including individual and societal features as well as institutional processes ( Neuburger & Egger, 2020 ; Sjöberg et al., 2004 ). The psychometric or “revealed preference approach” has been the most influential paradigm in modelling and predicting risk perceptions and acceptance ( Fischhoff et al., 1978 ; Slovic, 1987 ). The key insights of this risk perception/acceptance framework will be used in this study to design and test interventions that help to mitigate tourists' perceived risk and to encourage them to travel again.

In general, existing studies found a very strong link between perceived risk and decreasing willingness to purchase ( Nardi et al., 2020 ). More specifically, it is well-known that risk, crises and disasters through their impact on risk perceptions affect tourists' intention to travel in general as well as their willingness to visit specific destinations ( Ritchie & Jiang, 2019 ; Sánchez-Cañizares et al., 2020 ; Sönmez & Graefe, 1998 ). Tourists' general intention to travel can be affected as tourism is discretionary spending and thus competes with alternative options to spend discretionary income and time ( Scott et al., 2008 ). Moreover, tourists’ willingness to visit a specific destination is continuously rivalled by alternative destinations. Hence, if a particular destination falls behind in terms of confidence in safeguarding safety and security as well as ensuring a high-quality visitor experience, it is likely to be substituted by alternative options ( Hunter-Jones et al., 2008 ).

Types of perceived risk affecting travel decisions include physical, psychological, financial and time risks as well as the risk that the tourism experience may fall short of expectations ( Roehl & Fesenmaier, 1992 ). Epidemics were traditionally considered to be among the most important travel deterrents as they greatly increase safety and security concerns among tourists and escalate practically all of the above-mentioned types of perceived risks ( Floyd et al., 2003 ; Scott et al., 2008 ).

2.1.1. The role of real risk

The psychometric model of risk perceptions suggests that risk perceptions vary among people, and that objective risk (or expert judgments of risk) and subjectively perceived risks may differ ( Slovic, 1987 ). However, while there is a tendency for people to overestimate small or current risks and underestimate large or future risks, on average, people provide an acceptable assessment of real risks ( Sjöberg, 2000 ).

Behavioural intentions indicate the willingness of customers to perform a particular behaviour. Previous literature highlighted attitude, perceived behavioural control and subjective norms to be major predictors of booking intentions ( Lam & Hsu, 2006 ). Risk perceptions are likely to impact on all three predictors as risks influence expected travel outcomes, agreement of referents and opportunities to travel ( Quintal et al., 2010 ) – and are thus probable to affect booking intentions ( Floyd et al., 2003 ; Sönmez & Graefe, 1998 ). Applying the theoretical background on risk perception to the specific context of tourism consumer decision making, it is expected that the severity of the COVID-19 pandemic in the destination as measured by the number of confirmed positive cases impacts risk perceptions and booking intention.

Intention to book depends on the number of COVID-19 cases in the tourism destination.

2.2. Mitigating risk perceptions during and after COVID-19: Tourism recovery strategies

While Floyd et al. (2003) are pessimistic about the possibilities of product alterations and advertising to change risk perceptions among tourists, such initiatives are usually a major component of recovery strategies ( Mair et al., 2016 ; Ritchie & Jiang, 2019 ; Scott et al., 2008 ). Tourists are looking for assurance that the risks have been contained and that their tourism experience is not compromised. Thus, the main objective of product and communication-related initiatives is to change tourists’ perceptions of risk in a destination ( Scott et al., 2008 ) as well as restoring confidence and/or increasing risk acceptance. Tourism recovery interventions aim to achieve this using the two main mitigation strategies of perceived risk suggested by the psychometric model: increasing control, trust and knowledge; and increasing associated benefits.

2.2.1. Increasing control, trust and knowledge

The psychometric model is adamant that informed awareness of a risk (is the risk well-understood) and preparedness for new hazards can increase the tolerance to the risk. Preparedness and awareness are usually associated with an increased perceived control over the risk taken and an increased trust in those managing the risk ( Fischhoff et al., 1978 ; Slovic, 1992 ). Recent literature shows that these factors also mitigate food safety risk perceptions ( Nardi et al., 2020 ) and flood risk perceptions ( Lechowska, 2018 ). Early research on risk perceptions provided evidence for the relevance of perceived control by highlighting the extensive impact of voluntariness of risk exposure on risk acceptance ( Slovic, 1992 ; Starr, 1969 ).

In the particular situation of the COVID-19 pandemic, one possible way of increasing perceived control over risks is by limiting travel of certain less-easy-to-control groups of tourists such as international visitors. The public discourse depicted international travel as a major risk factor and many destinations have banned international arrivals (Australia also barred its citizens from leaving the country) (see Graham-Harrison & Smith, 2020 ; Meixner, 2020 ). Literature on risks perceptions ( Wachinger et al., 2013 ) and the tourism crisis literature are well aware of the impact of media coverage of disastrous events ( Novelli et al., 2018 ; Volo, 2007 ; Walters & Clulow, 2010 ). Against this background, from the point of view of domestic tourists, allowing international visitors to visit can influence the perceived risk of visiting a tourism destination during a global pandemic.

Intention to book depends on whether international visitors are permitted to visit the tourism destination.

Implementing social distancing, hygiene measures and tracing apps are other ways of boosting control and trust during the COVID-19 pandemic. Tourism bodies and operators have followed WHO (2020) recommendations and declared health and hygiene as priority areas for any recovery efforts. For example, Marriott International launched a ‘Cleanliness Council’ to advance cleanliness and hygiene standards in their hospitality operations in the context of COVID-19 ( Marriott International, 2020 ). The World Travel and Tourism Council ( WTTC, 2020 ) developed standardised protocols for health and hygiene measures in the various segments of the tourism industry (aviation, hospitality, attractions etc). Many destinations have implemented hygiene trainings and cleanliness certifications, including Singapore, Abu Dhabi, Portugal and Western Australia. The U.S. Travel Association (2020) released industry guidance for “Travel in the New Normal” with a strong focus and health and safety. More than 50 countries, including Australia, have also promoted voluntary or compulsory COVID-19 tracing apps as part of their containment efforts to the pandemic, although not without concomitant privacy concerns voiced in the media ( Ologeanu-Taddei, 2020 ). It is expected that social distancing, hygiene measures and tracing apps reduce risk perceptions and increase willingness to book; however, these measures may also negatively impact on the holiday experience (such as some places being closed or access restricted to limit numbers in social distancing efforts).

Intention to book depends on whether social distancing rules are in place.

Intention to book depends on whether tourism and hospitality facilities implement hygiene standards.

Intention to book depends on whether a COVID-19 tracing app is required at tourism and hospitality facilities.

Space is a main factor in facilitating an effective individual control over infection risks. It thus can be a way of “spinning the unsafe image into assets” ( Walters & Mair, 2012 , p. 89). This insight may be implemented through coercive measures such as ‘social distancing’, but it can also mean that uncrowded and remote place may gain in attractiveness during a pandemic ( Zenker & Kock, 2020 ). A promising recovery intervention thus can stress the availability of space in a tourism destination in advertising.

Intention to book depends on whether the availability of space is stressed to promote a visit.

Finally, cancellation policies can be expected to have a positive impact on perceived voluntariness of risk exposure in tourism as well as perceived control over consequences. Huang and Min (2002) and Glaesser (2006) associate crises and disasters in tourism with an increase in cancellations, indicating, in turn, that cancellation policies may play a relevant role in mitigating tourists’ risk perceptions in the event of disasters. This is further corroborated by evidence of increasing rates of last-minute bookings during and after disasters as tourists monitor situations in real time ( Hystad & Keller, 2008 ). Hence, both academic authors ( Assaf & Scuderi, 2020 ) and industry consultancies ( Krishnan et al., 2020 ) suggest that accommodation providers adopt more flexible cancellation policies during the COVID-19 pandemic to increase confidence to book by reducing perceived risks associated with bookings.

Intention to book depends on whether a fully refundable cancellation policy is offered.

2.2.2. Increasing associated benefits

The “revealed preference approach” which preceded the psychometric model in modelling risk perceptions, held that perceptions and acceptability of risks are proportional to the (third power of) benefits ( Starr, 1969 ). The higher acceptability of risks that are associated with higher benefits has broadly been confirmed in the psychometric model ( Slovic, 1992 ) as well as in sector-specific research ( Nardi et al., 2020 ).

For example, while COVID-19 poses physical and psychological risks to tourists, it is well-known that tourism entails benefits for mental wellbeing ( Sirgy et al., 2011 ) and physical wellbeing ( de Bloom et al., 2010 ). Existing empirical research indicates that these short-term benefits diminish over time and last for about two to four weeks ( Chen & Petrick, 2013 ). Reminding tourists of these benefits can be expected to increase willingness to travel even during a disaster such as a pandemic.

Intention to book depends on whether respondents are persuaded with a message that vacationing is important to maintain mental and physical wellbeing.

Communication influences perceived benefit. Existing literature ( Mair et al., 2016 ; Prideaux et al., 2008 ; Walters and Mair, 2012 ) highlights the necessity of advertising activities of tourism destinations post disaster. For example, authors report on the effectiveness of advertising that reminds past actual and would-be visitors of the destination image and of their connection with the destination, and thus restores confidence in visiting ( Armstrong & Ritchie, 2008 ; Avraham, 2020 ; Walters & Mair, 2012 ). To recover from Hurricane Katrina in New Orleans the destination marketing organisation (DMO) employed advertising messages that made reference to emotions (“Come fall in love with New Orleans all over again”) ( Chacko & Marcell, 2008 ). These emotional marketing messages are often crafted to include a reference to the resilience, timelessness and immutability of key features of the experience, if not an ‘open for business’ spin: “New Orleans, just as you remember it” ( Chacko & Marcell, 2008 ), “Terrorists can destroy Kuta but they can't destroy our spirituality, and that is what we have to offer to visitors” communicated after the 2002 Bali bombings ( Henderson, 2008 ), or the “There's still nothing like Australia” campaign launched after the 2019/2020 bushfires and COVID-19 pandemic in Australia. Many DMOs employed such a focus on immutability-centred retentive advertising (or reminder advertising) during the COVID-19 lockdowns as they attempted to retain the desire to visit (see e.g., the “Live from AUS – The best of Australia live streamed into living rooms” campaign in Australia).

Intention to book depends on whether retentive advertising messages are used to promote a visit.

It may be useful to give benefits-related advertising an ethical spin as existing literature on risk perception highlights that elements of ‘morality’ have a strong influence on risk tolerance ( Sjöberg, 2000 ). Concurrently, with previous disasters, solidarity-orientated communication has proven effective to encourage travel. Such communication conveys the message that, by visiting, tourists can support tourist providers and assist the general economic recovery in communities affected by a disaster. Such communication also indirectly conveys the message that tourists are welcome and not seen as inappropriately intruding a ‘recovery space’ ( Walters & Clulow, 2010 ). Carlsen and Hughes (2008) present the case of the Maldives recovery marketing strategy in the event of the 2004 Indian Ocean Tsunami which included a solidarity-component. Similarly, authorities tried to invoke sympathy for the affected tourism operators after the 2002 Bali bombings, combined with an appeal to patriotism on the domestic markets ( Henderson, 2008 ). In the same vein, the Australian state of New South Wales encouraged tourists to visit after the 2019/20 bushfires by reminding them that “Now's the time to love NSW” (“Our future is in your hands”) because regional towns and tourism businesses need help in difficult times.

Intention to book depends on whether solidarity-invoking communication is used to promote a visit.

Another way of increasing benefits is to reduce monetary costs of travel. Existing research supports the idea that offering discounts can motivate people to resume travel to a particular destination in the short term. Promotional rates were employed by lodging businesses, attractions, airlines and other tourism providers following the 9–11 US terrorist attacks in 2001, the 2002 Bali bombings, the 2002-04 SARS event in South East Asia, the 2005 London bombings, forest fires in Canada and the 2013–15 Ebola outbreak in West Africa ( Henderson, 2008 ; Hystad & Keller, 2008 ; Ladkin et al., 2008 ; McKercher & Pine, 2005 ; Novelli et al., 2018 ; Taylor & Enz, 2002 ). Interestingly, in Fiji a tourism industry action group was formed to coordinate pricing policies after the political crises in 1987 and 2000 in order to ensure a destination-wide price-driven recovery ( Beirman, 2003 ). However, some authors present evidence that makes them question the effectiveness of short-term discounting for post-disaster recovery ( Walters & Mair, 2012 ). A third group of authors acknowledge the effectiveness of discounting in terms of stimulating visitation but they also recognise associated risks for current and future revenue ( Carlsen & Hughes, 2008 ; Mair et al., 2016 ). Concerns about their bottom line may actually prompt some tourism and hospitality providers to increase prices to compensate for decreased occupancy rates such as in the context of the long-term political crisis in Israel ( Beirman, 2003 ).

Intention to book depends on offering price discounts vs price increases for accommodation and attractions.

2.2.3. Potential trade-offs

However, the two dimensions of containing risk/increasing control and ensuring associated benefits such as a quality tourism experience can be in partial contradiction and in conflict with each other as not all measures that increase control over safety and security are conducive to a better tourism experience. Rittichainuwat (2013) reports that while tourists felt safer after terrorist attacks if security measures were implemented, some segments felt deterred if these measures became excessive. This is particularly evident in a pandemic, where social distancing measures and hygiene measures can compromise the tourism experience while potentially increasing the perceived security and safety. Moreover, health and hygiene measures can potentially be a double-edged sword in terms of their impact on perceptions: The generated signalling effects may either indicate reassurance or increased risks levels. While Groeneboom and Jones (2003) could not rule out unwanted implications for destination image caused by overt safety measures, Cruz-Milán et al. (2016) did not find a negative impact of increasing the security forces on tourist perceptions.

Due to the potential presence of trade-offs, the above hypotheses which are summarised in Fig. 1 are all described as non-directional relationships because while one direction may be more likely the opposite effect is possible in the context of domestic travel. For example, while requiring actions such as having a COVID-19 tracing app might have intended health benefits for tourists, concerns over civil liberties may provide a deterrent to travel. Even the presence of a second wave of COVID-19 cases might increase desire to escape highly populated city centres rather than restricting travel due to anticipated health concerns.

Fig. 1

Research model.

A randomised experiment, in which respondents were randomly allocated one of many scenarios, was adopted as this approach reduces the impact of bias in responses and improves the validity of conclusions concerning causality ( Viglia & Dolnicar, 2020 ) .

3.1. Overall research design

This study consisted of a qualitative component to generate hypotheses (first phase) and a quantitative experimental component designed to test the causal relationships (second phase). Quantitative data were collected through an online survey which presented a scenario-based experiment to respondents. The qualitative part consisted of 18 semi-structured interviews, 10 conducted with Western Australian tourism industry members and 8 with residents in Western Australia (i.e., potential intrastate tourists). The findings of these interviews which are presented in Aebli et al. (2021) and briefly summarised in Table 1 , informed the formulation of hypotheses and scenarios as discussed further below. The following presentation of methods and results focuses on the experimental component of the research.

Summary of qualitative interview findings (simplified from Aebli et al., 2021).

3.2. Questionnaire

The online questionnaire consisted of several sections containing the following key material in this order:

  • • The question “How likely would you have visited Australia's Southwest region within the next year for an overnight stay, if COVID-19 did not happen?” (with responses from 1 = ‘Very unlikely’ to 7 = ‘Very likely’) obtained information as a baseline or control prior to the respondent being influenced by a scenario.
  • • The respondent was provided with a randomly selected scenario (see Section 3.3 ), comprising 11 binarily coded, manipulated factors, which formed the independent variables (COVID-19 cases, international visitors allowed, social distancing, hygiene measures, COVID-tracing app, space, cancellation, wellbeing reminder, retentive advertising ‘#everythingwelove’, solidarity-invoking advertising ‘#loveASW’, discount).
  • • Respondents were asked the key dependent variable of the study “If your personal circumstances permitted, how likely would you book a visit to Australia's Southwest in the near future in this ‘hypothetical situation’.” (with possible responses from 1 = ‘Very unlikely’ to 7 = ‘Very likely’).
  • • The attention check question “In this ‘hypothetical situation’, were international travellers allowed to visit Australia's Southwest?” (with responses of ‘Allowed’, ‘Not allowed’, and ‘Do not know’): To ensure data quality, only respondents who correctly answered this question referring to one of the manipulated factors were retained for analysis as respondents failing this question are unlikely to have comprehended and/or paid sufficient attention to the viewed scenario.
  • • Demographics and control variables (such as the respondent's gender, age, children, education, underlying health conditions, affordability of a visit, previous visits and likelihood of booking if COVID-19 did not happen).

3.3. Scenarios

The possible scenarios presented to respondents had two options for each of the 11 factors corresponding to the 11 hypotheses. Only two possible scenarios are presented here; one with the first option for each of the 11 factors ( Fig. 2 ) and one with the second option for each of the 11 factors ( Fig. 3 ). In practice, each respondent would see a randomly allocated scenario containing a combination of these two scenarios, with some options from Fig. 2 and some options from Fig. 3 . For example, another scenario is in Fig. 2 with the first dot point ( H1 ) “the COVID-19 outbreak has been well-contained in Western Australia and no new cases have been reported for at least a week” replaced with “there is a second wave of COVID-19 cases in Western Australia with over 100 new cases last week” (as in Fig. 3 ). Importantly, each respondent was shown only one scenario, consisting of one randomly selected option out of the two possible options, for each of the 11 factors. These form the independent variables applied to each respondent and the dependent variable (intention to book) was therefore only measured once for each respondent.

Fig. 2

The scenario with the ‘low’ option for each of the 11 factors.

Fig. 3

The scenario with the ‘high’ option for each of the 11 factors.

In most cases, the first option ( Fig. 2 ) represented either the current situation (e.g., low COVID-19 cases locally ( H1 )) or a placebo message (e.g., “… travelling is still something worth considering” ( H8 )) compared to the second option ( Fig. 3 ). For example, to test whether compulsory use of the COVID-19 tracing app influences booking intention ( H5 ) the existence of the COVID-19 tracing app is mentioned under both options. This avoids confounding the app being compulsory with the mention of the app that would occur if the first option did not mention the app. An exception is whether an increase in prices of 10% or a decrease in prices of 30% was applied ( H11 ). Stating no change in prices as an option was not adopted as it would be an unusual message to explicitly state no change has occurred. The #everythingwelove ( H9 ) and space ( H6 ) factors are also exceptions as in each case the first option has nothing. This is reasonable to test the effect of an advertising message, however, it is important to note that under all scenarios the respondent received an advertisement; only the content of the advertisement changes. Each scenario was presented on one page with a border to differentiate the advertisement from the background description of the scenario (See Fig. 2 , Fig. 3 ).

Actual industry examples inspired the specific formulation of scenarios: The formulation of the hygiene intervention ( H4 ) took inspiration from measures implemented in Singapore during the COVID-19 pandemic; and advertising messages took inspiration from a solidarity campaign ( H10 ) used during the 2019/20 Australian bushfires and from communication and campaigns developed in Western Australia during the COVID-19 lockdown ( H9 ). These scenarios were finalised after feedback from interviews with tourism industry experts and potential tourists. Final scenarios were then pilot tested on an additional set of potential tourists to ensure wording and presentation was clear.

3.4. Respondents

The relevant population for this study includes adult residents in Western Australia outside of the Australia's South West (ASW) region. Swift action closing international and state borders restricted COVID cases in Western Australia to 641 (24 per 100 k) and 9 deaths (by the end of data collection in August 2020). ASW borders were closed for 48 days but this border was reopened to intrastate tourists just prior to data collection. ASW accommodation providers contacted previous visitors on their databases and invited them to participate in the online survey. Hence respondents are past visitors to the region. Data were collected between 13 July 2020 and 11 August 2020. After quality checks (complete questionnaires, attention check), n = 666 respondents were retained for further analysis.

There were slightly more female respondents (55%) and the vast majority of respondents were aged between 36 and 75 (85%). The sample included an underrepresentation of younger tourists below 36 compared to intrastate visitor demographics commonly reported for the ASW region. The respondent sample was highly educated with 64% respondents having a university degree and 80% declaring they were not aware of any underlying health condition that would increase their risk from catching COVID-19. Most respondents could easily afford a holiday in ASW (45% responding with the extreme on the 7-point scale). When visiting ASW, respondents would stay in caravan parks (66%), National Park campgrounds (62%), hotels/motels/serviced apartments/resorts (41%), private short-term rental (33%), in a relative's or friend's property (19%) or in their own holiday homes (2%) (multiple response options). This indicates an over-presence of respondents staying in caravan parks and campgrounds and an underrepresentation of people staying in a relative's or friend's property. This use of caravan parks and National Park campgrounds is higher than pre-COVID-19 but may be explained by desires to social distance in the pandemic. Table 2 contains full descriptions of the demographics used in regressions.

Demographics and control variable (with coded values for regressions)

3.5. Statistical analysis

Between subject logistic regression was performed with the dependent variable defined as 1 (“will book”) and 0 (“will not book”). This binary dependent variable was defined as “will book” when the response to the 7-point intention to book question was greater than the midpoint of 4. This simplified analysis can be justified on several grounds. First, as shown in the results (see Table 3 ), the distribution was bimodal, with approximately half the responses choosing the extreme values of 1 and 7. Second, industry is primarily interested in whether a booking is made (the strength of conviction to make the booking does not generate extra revenue). Third, the midpoint 4 was classified as a “no” intention to book because this neutral midpoint is unlikely to reliably result in a booking. Finally, results are qualitatively similar if an alternative cut point for the yes/no divide is used or if ordinal logistic regression is used on the original 7-point scale. Interpretation of logistic regression coefficients B followed Taplin (2016) , who recommended the following approximate effects on the probability of booking from increasing an independent variable by 1: when the probability is smaller than 20%, the probability is multiplied by exp ( B ) , when the probability is between 20% and 80% the probability is increased by adding B/4; and when the probability is greater than 80%, the probability of not booking is divided by exp ( B ) .

Distribution of the original booking question and the transformed booking variable for logistic regressions (response > 4).

The independent variables in the logistic regression were defined by the 11 factors (first option coded as 0 and second option coded as 1) as per Fig. 2 , Fig. 3 , and the control variable (likelihood of booking if COVID-19 did not happen). The regression was repeated with demographics (assigned values provided in column 1 of Table 2 ) included. To simplify analysis and reporting, a few observations preferring not to mention gender or health condition were coded as 0.5 (results are similar if coded differently). Due to missing values for affordability and education ( Table 2 ), sample size is reduced from 666 to 665 when demographics are included. This sample size easily exceeds standard benchmarks of 10 or 20 observations per independent variable, especially since the main variables corresponding to 11 hypotheses are by design uncorrelated.

Note that due to the random allocation of respondents to scenarios the 11 variables corresponding to the 11 manipulated factors ( H1 to H11 ) are approximately independent (uncorrelated) with each other and all other variables, so multicollinearity is not an issue and removing insignificant hypothesised variables from the regression (e.g., through stepwise regression) has negligible impact on results. Interaction effects were also tested for inclusion in the logistic regression as effects of two factors may not be additive. Analysis was performed in the statistical software package R.

The distribution of responses to the intention to book question is summarised in Table 3 .

Table 4 shows regression results for the 11 hypotheses, with values indicating the difference in log odds of booking intention between the scenario where the respective variable is present or high and the scenario where the respective variable is absent or low. Regression results testing the 11 hypotheses are similar regardless of whether demographics are included or not ( Table 4 ), so henceforth we concentrate discussion on results with demographics. In terms of demographics, booking intention is significantly lower for females (p = .002), older respondents (p = .009) and those with fewer previous visits (pvisit) to ASW (p = .042). This finding is in line with existing research on risk perceptions which generally supports relevance of demographic variables ( Lechowska, 2018 ; Nardi et al., 2020 ; Neuburger & Egger, 2020 ): Women, older respondents and those with less familiarity tend to exhibit greater caution.

Logistic regression results of booking intention using the 11 independent variables corresponding to the 11 hypotheses.

Note: Statistical significance: ***p < .001; **p < .01; *p < .05; . p < .1.

The control variable refers to the intention to book if COVID-19 did not happen.

Results for hypotheses are discussed under subheadings motivated by the model ( Fig. 1 ).

4.1. Exogeneous factors: risk perception and real risk

The presence of high numbers of COVID-19 cases in the destination had the strongest effect on booking intention of domestic tourists (B = −1.778; p < .001). This means changing from the low COVID-19 situation to the high COVID-19 situation decreased the log odds of booking intention by 1.778. This is an enormous practical effect: approximately dividing the probability of booking by 6 (= 1/exp (-1.778)) if it was less than 20% or subtracting 1.778/4 = 44% if it was between 20% and 80% (this approximation might be inaccurate because it may move the probability below 20%). This provides not only strong support for hypothesis H1 but suggests high numbers of COVID-19 cases have a crippling effect on booking intentions.

4.2. Mitigation A: interventions aimed at increasing control, trust and knowledge

Allowing international visitors also has a strong effect on booking intentions of domestic tourists (B = −1.537; p < .001). Allowing international visitors either multiplies a small probability of booking by 0.215 (dividing by 4.7) or decreases a moderate probability by 38% (approximately), if all other conditions remain unchanged. Thus, strong support is also found for H2 .

Requiring social distancing, which means a few places may be closed or access restricted to limit numbers, has a practical but statistically insignificant (B = 0.300; p = .110) effect on booking intention. Social distancing is estimated to increase the probability of booking by about 8% (SE = 4.5%), but as this effect is not statistically significant, we do not find strong support for H3 . The hygiene measures ( H4 ) and space message ( H6 ) were statistically insignificant (p = .740 and p = .989) and hence we do not find support for these hypotheses. Note that the insignificant hygiene message included cleaning, temperature checks as well as mandatory face masks for employees, all overseen by certified managers. Requiring mandatory download of the Australian COVID-19 tracing app significantly reduces booking intention (B = −0.460; p = .016), providing support for H5 . Requiring the app reduced the probability of booking by approximately 12%.

Including a flexible cancellation policy has a strong effect (B = 0.514; p = .007), providing support for H7 . Providing free cancellation until 3 days prior to check-in is estimated to increase the probability of booking by approximately 13%. However, this is relative to the alternative of a one-day non-refundable deposit and there are financial consequences of allowing cancellations of bookings.

4.3. Mitigation B: interventions aimed at increasing associated benefits

The #everythingwelove retentive advertising message (with pictures) which aimed at reminding past visitors of the immutable destination image and of their connection with the destination significantly increased booking intention (B = 0.400; p = .033), providing support for H9 . This message increased the probability of booking by an estimated 10%. Solidarity-invoking advertising in form of the #loveASW plea to support the region and its tourism providers in challenging times resulted in a practically important but statistically insignificantly increase in booking intention (B = 0.308; p = .102). This advertising is estimated to increase booking probability by about 8% (SE = 4.5%), but as this effect is not statistically significant, we do not find strong support for H10 .

A 30% reduction in price (compared to a 10% increase) significantly increased booking intention (B = 0.405; p = .029), providing support for H11 . Discounts are estimated to increase the probability of booking by 10% (which is of practical importance but must be interpreted in the context of a reduction of 40% in revenue per booking relative to increasing prices). In contrast, the wellbeing message ( H8 ) was statistically insignificant (p = .247).

4.4. Interaction effects

No interaction effects between high. COVID and the other variables were statistically significant (p > .1). Hence the data is consistent with each of the other variables having the same effect in both a worsening COVID-19 situation and the historical low COVID-19 cases. Examining all 55 two-way interactions between manipulated variables revealed one statistically significant interaction between Cancellation and App (p = .036). However, we interpret any potential interaction effect with caution due to the large number of interactions examined and the p = .036 being only just lower than 0.05 (adjusting for the large number of interactions examined produces an insignificant result). A lack of interactions between effects implies the effects in Table 4 can be interpreted as additive. For example, using both the #everythingwelove retentive advertising and #loveASW solidarity messaging is estimated to increase the log odds of booking intention by 0.400 + 0.308 = 0.708 (an increase in the probability of booking of 18% (SE = 6.6%). Alternatively, including all 8 options in Table 4 with positive coefficients has an estimated effect of 2.15 on the log odds of booking intention. This equates to an approximate increase in the probability of booking intentions of 53.8% (SE = 12%), a higher effect than either high COVID-19 numbers or allowing international visitors (but not of both effects simultaneously).

Finally, although there are numerous possible interactions between respondent demographics and hypothesised independent variables, we briefly provide some exploratory results that might be worthy of formal testing in future research. Requiring the app ( H5 ) appears to lower booking intentions only for respondents without the app, suggesting requiring the app is detrimental due to civil liberty arguments rather than health arguments. Similarly requiring the app is not detrimental for unhealthy respondents. Female respondents are less likely to book than males ( Table 4 ) however this effect disappears with a cancellation policy. There is also evidence the wellbeing message ( H8 ) is effective for respondents who can easily afford a visit but very detrimental for those who can not. These interactions are reported as their unadjusted p-values are less than 1%. Although in hindsight they might appear logical, none were hypothesised in advance and the large number of potential interactions involving demographics suggests caution is required in drawing definitive conclusions form this study.

5. Discussion

This randomised study analysed recovery marketing efforts to restore intention to revisit a domestic tourism destination in the immediate aftermath of the most acute stage of a lingering public health crisis. Hypothesis H1 received support with results indicating high case numbers of COVID-19 have large, negative effects on domestic booking intentions. On a general level, this confirms that pandemics are relevant tourism deterrents ( Floyd et al., 2003 ; Karabulut et al., 2020 ). This finding also indicates that perceived negative risk is strongly associated with the actual infection numbers, so real risks drove perceived risks as anticipated in the literature (Liechtenstein et al., 1978; Sjöberg, 2000 ) and this did not differ significantly depending on respondent demographics.

5.1. Mitigation A: interventions aimed at increasing control, trust and knowledge

This study analysed a number of tourism recovery interventions for their impact on risk acceptance as operationalised through booking intention. Increasing perceived control proved to be a partially effective risk mitigation strategy for domestic tourism. Most notably, hypothesis H2 received strong support indicating that exerting control over international visitor arrivals can have large positive effects on domestic booking intentions. This perception may have been fuelled by political support for border closures, mandatory hotel quarantine for international arrivals and negative media coverage of COVID-19-outbreaks on international cruise ships. These findings corroborate existing knowledge about the impact of media coverage on tourist behaviour in disaster contexts ( Novelli et al., 2018 ; Walters & Clulow, 2010 ).

We did not find similarly strong support for Hypothesis 3 which hypothesised an effect of increased control through social distancing measures on booking intentions. This effect might have been significantly positive if the design had not mentioned the negative tourism experiences that are a logical consequence of social distancing requirements. Further research might disentangle these two effects but this study took the pragmatic approach that one is not possible without the other. Moreover, health measures may also imply an unintended signalling effect of risk ( Cruz-Milán et al., 2016 ; Groeneboom & Jones, 2003 ). Overall, social distancing might be interpreted positively despite potential detrimental effects on the vacation experience.

The same idea of trade-offs between control over risks and tourism experience impacts is most likely applicable to restrictive hygiene measures (hypothesis H4 ) and to introducing mandatory COVID-19 tracing apps (hypothesis H5 ). Both measures did not increase booking intentions of domestic visitors. The implementation of hygiene measures in tourism and hospitality facilities, including temperature checks and mandatory masks for staff, did not show a total combined effect on booking intentions. While Hypothesis H4 is thus not supported, Hypothesis H5 received support: Requiring mandatory download of the Australian COVID-19 tracing app significantly reduced booking intention, despite its potentially positive effects on public health. Analysis of interaction effects suggested the app is detrimental to booking intentions due to civil liberty arguments and privacy concerns rather than health arguments. Antagonistic trade-offs may arise due to the particular situation of domestic tourists also being citizens of their destination country: Support of risk mitigation measures in the domestic tourism field may not be easily separable from opinions as citizens. For example, the findings regarding negative impacts of mandatory COVID-19 tracing apps and the lack of impact of suggested hygiene measures (mandatory wearing of masks) make sense in the Australian context where at the time of data collection these measures had been unpopular, if not unnecessary due to low case numbers.

Hypothesis H6 (using ‘space’ as a hook to promote perceived control over infection risks in the destination) did not find support. Space is linked to a complex set of perceptions in the context of a pandemic and is a point in case for “spinning the unsafe image into assets” ( Walters & Mair, 2012 , p. 89), as uncrowded and remote place may gain in attractiveness during a pandemic ( Zenker & Kock, 2020 ). Contradicting previous research ( Walters & Mair, 2012 ) and asserted assumptions for the COVID-19 context ( Zenker & Kock, 2020 ), the results of this study do not indicate that this hypothesised effect is taking place. Alternatively, since these are past visitors, it could be all respondents were aware of the space benefits regardless of the scenario they were presented with; advertising ‘space’ may still be advantageous to respondents unfamiliar with the area.

Hypothesis H7 (cancellation) speculated on the possibility of increasing control by reducing financial consequences associated with an adverse event. The hypothesis received support with increased flexibility provided through fully-refundable cancellation policies exerting a strong effect on booking intentions. The effectiveness of flexible cancellation policies has sometimes been postulated, in particular for the COVID-19 context ( Assaf & Scuderi, 2020 ), but this study is among few to support this claim with robust causal evidence.

5.2. Mitigation B: interventions aimed at increasing associated benefits

According to the psychometric model of risk perception, risk acceptance can also be influenced by increasing perceived benefits associated with risk-taking. The collected evidence supports this general proposition. Hypotheses H8 (stressing wellbeing benefits), H9 (stressing emotional and experiential benefits) and H10 (stressing social benefits through solidarity) posit an effect of differently framed advertising messages. We did not find evidence that a hint to the mental and physical health benefits of tourism influences intention to book ( H8 ). In contrast, results did provide some support for hypotheses H9 and H10 : Advertising orientated towards reminding past visitors about the undiminished desirability of a destination (more) and invoking solidarity (less) can support intention to book but they are not a panacea and not necessarily superior to other measures. Nevertheless, this finding is in line with existing research on post-disaster advertising, which postulates effectiveness of retentive advertising that reminds potential visitors of the destination image and of their connection with the destination ( Armstrong & Ritchie, 2008 ; Avraham, 2020 ; Chacko & Marcell, 2008 ; Walters & Mair, 2012 ); as well as effectiveness of solidarity-invoking communication ( Carlsen & Hughes, 2008 ; Henderson, 2008 ; Walters & Clulow, 2010 ).

Increasing perceived benefits can also happen through an intervention on the monetary costs associated with visiting. Hypothesis H11 received support as price (discounts vs price increases) did have an effect. This study thus adds to the notable body of research highlighting the effectiveness of price discounts in tourism disaster situations (e.g., Hystad & Keller, 2008 ; Ladkin et al., 2008 ; McKercher & Pine, 2005 ; Novelli et al., 2018 ).

5.3. Interaction and combined effects

Through an exploration of potential interaction effects, this study also found the effectiveness of the interventions was similar in both pandemic incidence scenarios (low and high COVID-19 cases). This may be because with a lingering global pandemic latent risk and actual risk are very close to each other and respondents are aware of the presence of COVID-19 in other parts of the world and appreciate how easily it can spread.

Overall, it is notable that no single measure can easily compensate the strong negative effects on tourists’ domestic booking intentions of high COVID-19-cases. However, combining all positive recovery measures in terms of product adaptation and communication can offset the negative effects of a worsening COVID-19 situation on the domestic tourism market to a notable degree (if this is accompanied by the drastic measure of banning international visitation). Therefore, this paper supports the possibilities of product alterations and advertising to change risk perceptions among domestic tourists, and thus agrees that such initiatives should be a major component of recovery strategies ( Mair et al., 2016 ; Ritchie & Jiang, 2019 ; Scott et al., 2008 ).

5.4. Limitations and future research

While this research makes numerous contributions, it has its limitations. The study design applied a fictive scenario and focussed on booking intentions which may differ from actual booking behaviour (randomised experiments such as this have noteworthy advantages such as estimating causal effects rather than only correlations, but are hard to implement with actual behaviours). Limitations of the study also refer to the non-random recruitment of respondents, including the fact that respondents were voluntary and selected from two databases of previous visitors to the ASW region. The resulting sample was characterised by an over-representation of campers and a potential under-representation of people considering staying at friends' or relatives’ properties which may limit generalisability of findings or reflect altered preferences during a pandemic.

There may also be other limitations to the generalisability of findings. Despite the scenario-based approach, respondents were most likely influenced by the local circumstances at the time of data collection, including the low levels of community transmission locally, but high and escalating number of cases elsewhere in the world. Nevertheless, this study has high value in contributing to the emerging understanding of tourism recovery marketing effectiveness in the context of global pandemics and thus can form the basis for future research. Future research should be expanded to include a multi-country analysis to accommodate for greater variance in context factors. While the implemented research design is powerful in analysing declared behavioural responses to contextual factors and recovery measures, future research is encouraged to further investigate the underlying determinants for the observed behavioural intentions (including the trade-offs between health and experiential benefits). Larger sample sizes would also provide more power to estimate the effects of the factors, and estimated interaction effects that are likely to exist.

6. Conclusion

This paper presented a study on the effectiveness of measures a tourism destination can undertake to encourage domestic tourists to visit during or in the immediate aftermath of a lingering public health crisis. This study not only advances research on recovery marketing ( Mair et al., 2016 ), but has implications for broader considerations about tourists’ handling of risk ( Sönmez & Graefe, 1998 ; Williams & Baláž, 2013 ; Wong & Yeh, 2009 ). By including multiple recovery and risk mitigation strategies in a randomised experiment within one study the effectiveness of different strategies becomes directly comparable. This provides governments and tourism managers with strong causal evidence concerning the relative merits of different approaches to increase booking intentions on domestic tourism markets in the event of lingering pandemics.

Existing literature argues perceived risk strongly influences tourists’ intention to visit ( Ritchie & Jiang, 2019 ). The psychometric approach, which has dominated the study of risk perceptions ( Fischhoff et al., 1978 ; Slovic, 1987 ), distinguishes two drivers of risk acceptance: “increasing control over risk factors” and “increasing associated benefits”. Perceived risk in tourism decision making can also be organised into various types such as physical, psychological, financial (including time), social and experiential risk ( Roehl & Fesenmaier, 1992 ). Fig. 4 presents an overview of findings utilising these two dimensions of intervention design.

Fig. 4

Effectiveness of measures to recover domestic tourists' intention to visits.

Note: Measures written in bold showed statistically significant effects on booking intentions at p < .05 in the here-presented study. Positive signs indicate positive effects and negative signs indicate inverse effect on booking intentions. Dashed arrows indicate potential trade-offs.

This study makes a number of theoretical and practical contributions. This study is in agreement with authors arguing that real risks strongly influence perceived risks (Liechtenstein et al., 1978; Sjöberg, 2000 ) and confirms that tourism is highly susceptible to the actual incidence of a pandemic disease, as has been suggested previously ( Floyd et al., 2003 ; Pforr, 2009 ). In practical terms, in order to increase domestic tourists' willingness to book, it is crucial to keep the pandemic incidence low with other measures fading in comparison. This study contributes to the existing tourism disaster recovery literature by highlighting that recovery measures can influence risk acceptance of domestic tourists. As expected from existing literature, strengthening “associated benefits” generally tended to increase booking intentions of participating domestic tourists (except for stressing wellbeing benefits). However, in contrast to theoretically driven expectations, this study did not find unanimous evidence supporting the effectiveness of increasing domestic tourists' “perceived control” over the pandemic risks. While the drastic measure of banning international tourists as well as flexible cancellation policies showed strong effects on domestic tourists’ booking intentions, the other measures were somewhat less promising. Investigating potential trade-offs between increasing control over pandemic risks and reducing associated experiential tourism benefits is an important avenue for future research and will be critical in making generic risk perception/acceptance models applicable to the tourism context.

Funding acknowledgements

Supported by the Australia's South West Sustainable Tourism Observatory (and its funding partners).

Declaration of competing interest

Acknowledgment.

The authors would like to thank the WA Government - Department of Biodiversity, Conservation and Attractions' Parks and Wildlife Service and the Royal Automobile Club (RAC) of Western Australia, and their members, for their support in data collection and for completing the online survey.

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COVID-19 and the Rise of Domestic Tourism

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Paul Barron, EVP, Client Engagement, Hospitality, Amadeus sets out to adapt during a boom time for the domestic sector

Originally published on Travolution

For many of us, jetting off on a long-haul holiday is unlikely while restrictions on international travel remain following COVID-19. However, demand for domestic travel is soaring as travelers look for close-to-home, lower risk holiday options. In fact, recent data has shown a 62.8% increase in net reservations since the reopening announcement in the UK. To capitalize on this, hoteliers must plan for recovery to drive profitable demand and retain guest loyalty in this changing market.

The Staycation Renaissance

Restrictions on travel means that staycations are set for a boom. Consumers in the UK booked domestic trips every 11 seconds following the announcement of lockdown lifting. Our own data shows that in July, the UK was by far the most popular destination for British travelers with 58,946 website bookings compared to just 4,625 for the U.S, the second most popular destination.

This behavior reflects the outcome of a recent Amadeus survey of HSMAI hospitality executives, in which 33% of those polled believe that leisure travel closer to home will become much more prevalent as a result of the pandemic. In response to this shift, 76% of respondents are planning to prospect new audiences to make up for impacted revenue from the usual business travelers. With passport-free holidays becoming increasingly normal, identifying these shifting demands and leveraging this momentum is crucial for the hospitality industry to capitalize on.

What Does This Mean for Hoteliers?

Hotels will have to make key operational changes to survive in a COVID-19 world. Firstly, hoteliers need to be agile to provide guests an offering that is safe, flexible, and exciting. To do this, use of business intelligence , media and technology is vital to stand out against the competition. The foundation of a solid recovery plan is making data-driven decisions to plan for competitive rates, marketing, and distribution strategies. Historical trends won’t be useful for hoteliers given the seismic industry shift resulting from COVID-19. As such, hoteliers will need to be forward-looking and tailor their recovery approach to cater to new traveler segments (such as the domestic traveler), shorter booking windows, and new channels to source bookings.

Secondly, COVID-19 has made cleaning more important than ever and it is a non-negotiable essential that hotels deep clean and sanitize high-touch areas, and provide essentials such as hand sanitizer throughout the premises. Scrupulous cleaning and disinfecting processes and procedures will be vital to execute the cleanliness standards that the new “Generation Clean” guest – a singular segment that blurs the lines between Baby Boomers, Millennials, and Gen X travelers with elevated cleanliness standards – will expect.

Thirdly, if your customer base has shifted from international travelers to those seeking holidays closer to home, you will need to employ new marketing strategies that are relevant and targeted to your evolving customer base. These customers will want updates on the necessary steps you have and are taking at every phase of recovery to ensure traveler safety and inspire their confidence to book your property.

Once hoteliers have demonstrated that they have and are continuing to address the top concerns of travelers, hoteliers can turn their attention to meeting traveler expectations by offering personalized, authentic, and sustainable journeys and experiences to give themselves a competitive edge.

Looking to the Future

Although traveler behaviors such as domestic travel are likely to be impacted in the long term and altered habits could pave the way for a new normal in the travel industry, the hospitality industry is resilient and we look forward to the future when we see recovery and the return to global travel. Whilst we hope that this recovery occurs in a directly forward pattern, we should be prepared to account for some setbacks along the way, so we aren’t taken by surprise. As with any challenge, we will find a path forward, learning from the challenges we have and continue to face, adjusting as we go to find a better solution in the future.

For best practices and guidance on how you can build the most effective recovery strategy for your business, please find out more in our eBook series , which are designed to address the needs of hospitality professionals focused on Sales, Marketing, Operations, and Revenue Management.

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UNWTO Highlights Potential of Domestic Tourism to Help Drive Economic Recovery in Destinations Worldwide

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UNWTO Highlights Potential of Domestic Tourism to Help Drive Economic Recovery in Destinations Worldwide

  • All Regions
  • 14 Sep 2020

As restrictions on travel begin to ease globally, destinations around the world are focusing on growing domestic tourism, with many offering incentives to encourage people to explore their own countries. According to the World Tourism Organization (UNWTO), with domestic tourism set to return faster than international travel, this represents an opportunity for both developed and developing countries to recover from the social and economic impacts of the COVID-19 pandemic.

Recognizing the importance of domestic tourism, the United Nations specialized agency has released the third of its Tourism and COVID-19 Briefing Notes, -Understanding Domestic Tourism and Seizing its Opportunities.- UNWTO data shows that in 2018, around 9 billion domestic tourism trips were made worldwide – six times the number of international tourist arrivals (1.4 billion in 2018). The publication identifies ways in which destinations around the world are taking proactive steps to grow domestic tourism , from offering bonus holidays for workers to providing vouchers and other incentives to people travelling in their own countries.

Domestic tourism to drive recovery

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.”

UNWTO expects domestic tourism to return faster and stronger than international travel

The briefing note also shows that, in most destinations, domestic tourism generates higher revenues than international tourism. In OECD 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, the largest domestic tourism markets in terms of expenditure are the United States with nearly US$ 1 trillion, Germany with US$ 249 billion, Japan US$ 201 billion, the United Kingdom with US$ 154 billion and Mexico with US$ 139 billion.

Initiatives to boost domestic tourism  

Given the value of domestic tourism and current trends, increasing numbers of countries are taking steps to grow their markets, UNWTO reports. This new Briefing Note provides case studies of initiatives designed to stimulate domestic demand. These include initiatives focused on marketing and promotion as well as financial incentives . Examples of countries taking targeted steps to boost domestic tourist numbers include:

  • In Italy, the Bonus Vacanze initiative offers families with incomes of up to EUR 40,000 contributions of up to EUR 500 to spend in domestic tourism accommodation.
  • Malaysia allocated US$113 million worth of travel discount vouchers as well as personal tax relief of up to US$227 for expenditure related to domestic tourism.
  • Costa Rica moved all holidays of 2020 and 2021 to Mondays for Costa Ricans to enjoy long weekends to travel domestically and to extend their stays.
  • France launched the campaign #CetÉtéJeVisiteLaFrance (‘This Summer, I visit France’) highlighting the diversity of destinations across the country.
  • Argentina announced the creation of an Observatory for Domestic Tourism to provide a better profile of Argentine tourists.
  • Thailand will subsidize 5 million nights of hotel accommodation at 40% of normal room rates for up to five nights.

Related Links

  • Download the news release
  • UNWTO Briefing Note – Tourism and COVID-19, Issue 3. Understanding Domestic Tourism and Seizing its Opportunities
  • More Than 50% of Global Destinations Are Easing Travel Restrictions
  • UN Secretary-General: COVID-19 and Transforming Tourism
  • UNWTO Briefing Note – Tourism and COVID-19, Issue 1. How are countries supporting tourism recovery?
  • UNWTO Briefing Note: Tourism and COVID-19, Issue 2: Tourism in SIDS

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Is Domestic Tourism in the US on the Rise? [2022 Study]

rise in domestic tourism

International travel has many hoops to jump through.

There’s currency exchange, roaming, and other hurdles you need to clear before you can get some R&R.

The year 2022 has also added uncertainty to the mix. We’re now facing the headwinds of:

  • High inflation
  • The war in Ukraine and geopolitical tensions
  • Ubiquitous flight delays and cancellations

That’s why at Passport Photo Online, we’ve decided to poll 1,000+ Americans and see if domestic trips are becoming a way of life, where people typically go, and much more.

Key Takeaways

domestic tourism in the US is on the rise: study’s key findings

  • Nearly five in 10 Americans ( 48% ) opt for domestic tourism because of high inflation and rising prices.
  • Another 47% of people travel locally because it’s better for the environment . 
  • 82% of workers believe a domestic leisure trip lowered their stress levels.
  • 76% of staffers feel traveling at home in 2022 upped their productivity .
  • 79% of people became more creative in the workplace after going on domestic vacation.
  • 77% of Americans grew more engaged at work after their most recent local trip.
  • People usually spend between $501 and $1,000 on average and go away for roughly 3–5 days for a typical trip within the US.

The Landscape of Domestic Tourism

Did you know?

Americans take over 2.29B domestic trips every year. That makes local tourism a booming industry in the US.

Our numbers also prove it.

In fact, 96% of the survey respondents took or plan to take at least one domestic leisure trip in 2022, with 80% describing their most recent local travel experience as positive or very positive.

Where do Americans typically go?

  • A different city within the US: 44%
  • A different city within one’s home state: 36%
  • Stay in one’s home city: 19%

As you can see, nearly five in 10 domestic travelers usually visit another city in the States. Here’s also how many trips they take on average every year:

  • Five or more: 12%

As a follow-up, we asked the respondents how many days their local trips generally last:

  • Less than one: 3%

The data shows 3–5 days is the most common domestic trip duration. Next, we asked the survey takers where they typically stay when traveling in their own “backyard.”

Below are the results (with a text version just in case):

most popular lodging options for domestic travelers

  • Friends or family: 47%
  • One’s own place: 37%
  • Airbnb: 29%
  • Couchsurfing: 26%

Thus, the most common lodging option for domestic travelers is hotels, picked by 48% of Americans. It’s also common to stay with family or friends (47%) and in a tent (42%). 

We then decided to dig into what travelers pay attention to the most when choosing hotels. See the results below:

what domestic guests want from a hotel

  • Health and safety standards: 42%
  • Online ratings and reviews: 37%
  • Flexibility to cancel without penalty: 33%
  • Suitable space to work: 33%
  • Proximity to attractions: 32%
  • Reliable Internet: 31%
  • Presence of a quiet room for meetings: 29%

Interestingly, accommodation cost isn’t key for domestic travelers, with only 30% considering it very important. What matters the most is a property’s health and safety standards (42%), online ratings and reviews (37%), and flexibility to cancel without penalty (33%).

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What Fuels Americans’ Desire to Explore the US

So far, so good.

Now—at this stage, we wanted to understand people’s motivations to stay closer to home and engage in domestic tourism.

Below are the results:

key reasons people choose domestic travel

  • High inflation and rising prices: 48%
  • Local trips are more eco-friendly: 47%
  • Ability to bring pets along: 46%
  • COVID-19 concerns: 44%
  • Absence of complicated trip logistics: 40%
  • Not having to test negative to return to the US: 21%
  • No language barrier: 21%

As you can see, “high inflation and rising prices” is why Americans choose to travel locally. That makes sense since not everyone can drop an average of $3,960 to vacation in Europe right now.

It’s also worth noting that 47% of travelers prefer domestic travel because it’s better for the environment. 

Perhaps, that’s because sustainable travel—being aware of tourism’s environmental impact and adopting good practices to limit the adverse effects—has been trending up recently, and we’re seeing it shape Americans’ travel choices.

After all, flying from London to New York across the pond and back generates ~2173 pounds (986kg) of CO2 per passenger, according to a new Guardian analysis. That’s more than the typical person in dozens of countries produces in a year.

So, domestic tourism is a clear winner if you’re looking to travel more responsibly.

The Biggest Domestic Travel Expenses

Let’s talk money.

As you probably know, inflation is at its highest since 1981, standing at 9.06% as of June 30, 2022.

That’s why everything is so expensive now, including travel.

If you opt for a domestic vacation, it’ll go easier on your wallet. Here’s how much Americans typically spend on a domestic trip, based on our findings:

average cost of a domestic vacation in North America

  • $501–$1,000: 23%
  • $0–$500: 21%
  • $1,001–$2,000: 19%
  • $2,001–$3,000: 12%
  • $3,001–$4,000: 8%
  • $4,001 or more: 5%

Thus, for a typical trip within the US, people usually spend between $501 and $1,000 on average and go away for roughly 3–5 days. 

Here’s also a list of the main expenses domestic travelers incur:

expenditures of domestic travelers by type

  • Food and drinks: 62%
  • Entertainment: 59%
  • Transportation: 52%
  • Housing: 47%
  • Sightseeing: 41%

Why Domestic Trips Are Good For Your Career

As we’ve mentioned earlier, 96% of Americans went or plan to go on a domestic trip in 2022.

Interestingly, five in 10 respondents of that unlucky 4% said they wouldn’t travel locally this year because they couldn’t take time off work.

That piqued our interest, so we decided to follow up and asked the survey takers why they won’t use their PTO.

key reasons why some workers won’t go on vacation

  • I have an excessive workload: 52%
  • I’m afraid of getting fired: 43%
  • No one can cover for me while I’m away: 36%
  • I don’t have any PTO left: 34%
  • I don’t want to hurt my chances of getting a promotion: 30%

While “having excessive workload” topped the list, 43% of Americans mentioned they feared losing a job.

That’s not all that surprising, with recent reports claiming tech companies like Netflix, Shopify, and Coinbase had laid off 34K+ employees in Silicon Valley as of early August, with many hitting the brakes on hiring and rescinding job offers.

That said, domestic travel comes with ample benefits. 

For one, it offers a change of scenery. If you feel bogged down by work and need some inspiration, a new environment will give you a much-needed break from the daily grind. 

Moreover, domestic trips can help reduce stress and make you happier. That, in turn, boosts productivity when you’re back at work. 

And here are our numbers to prove it:

  • 82% of US employees believe a domestic leisure trip lowered their stress levels.
  • 76% of workers feel traveling locally upped their productivity.
  • 77% of staffers grew more engaged at work after their most recent domestic trip.
  • 79% of Americans became more creative in the workplace upon a local vacation.

As paradoxical as it may seem, taking some time off to travel domestically can improve your career and possibly save your job.

Stacking It All Up

Domestic tourism seems on the rise in the US, and it’s easy to see why. It’s more sustainable than international travel, less expensive, and doesn’t need much hassle.

Now, do you plan on taking a leisure trip within the US in the next 12 months? 

Let us know in the comments below.

Methodology

We conducted an online survey of 1,082 US respondents via a bespoke online polling tool in July 2022.

The respondents were 58.5% male and 41.5% female. 8.4% of respondents were 25 or younger, 58.8% were aged 26–38, 25.7% were aged 39–54, and 7.1% were 55 or older.

This survey has a confidence level of 95% and a margin of error of 3%. Given the gender and age makeup of our sample size, the study’s findings are statistically significant for the population at large.

This study was created through multiple steps of research, crowdsourcing, and surveying. Data scientists reviewed all survey participants’ responses for quality control. ​​The survey also had an attention-check question.

Fair Use Statement

Did our findings help you learn more about domestic tourism? If you believe your audience will be interested in this information, feel free to share it. Just remember to mention the source and link back to this page.

  • Chapkanovska E., “What Is the Average Cost of a Vacation?”
  • Condor Ferries France, “70+ US Tourism & Travel Statistics”
  • Kommenda N., “How Your Flight Emits as Much CO2 as Many People Do in a Year”
  • Kunthara S., “Tech Layoffs In 2022: The US Companies That Have Cut Jobs”
  • Woolf M., “The Ultimate List of 100+ Travel Statistics and Facts [2022]”
  • YCharts, “US Inflation Rate”

Max Woolf

As a Digital PR specialist and a member of the Society of Professional Journalists (SPJ), Max has 5+ years of writing experience. Over the course of his career, Max’s work has garnered significant attention, with features in numerous prominent publications such as The New York Times, Forbes, Inc., Business Insider, Fast Company, Entrepreneur, BBC, TechRepublic, Glassdoor, and G2.

Travel, Tourism & Hospitality

Domestic tourism in India - statistics & facts

Driving post-pandemic tourism recovery, popular destinations, key insights.

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The rise of domestic tourism.

rise in domestic tourism

As the world shut down and borders closed, wanderlust was put on hold. But as we adapted to a new way of life, our travel habits began to shift towards something unexpected: domestic tourism. With lockdowns forcing us to explore closer to home, we rediscovered hidden gems in our own backyards and embarked on road trips like never before. In this blog post, we’ll take a deep dive into how the pandemic has reshaped the way we travel and what it means for the future of tourism. So buckle up, sit back, and get ready to explore the rise of domestic tourism!

Introduction: Exploring the Impact of the Pandemic on Domestic Tourism

The pandemic has had a profound impact on the travel industry, with international travel all but coming to a halt. However, there has been a rise in domestic tourism as people look to explore their own backyard. This has been a boon for the domestic tourism industry, which was already worth $1 trillion in 2019.

However, the pandemic has also brought some challenges for domestic tourism businesses. For example, many hotels and resorts have had to adapt their business model to accommodate social distancing measures. This has meant reducing capacity, offering contactless check-in/check-out options, and providing more outdoor space for guests to enjoy.

Another challenge that businesses have faced is the need to change how they market themselves. With international travel off the table for the foreseeable future, businesses need to focus on attracting domestic visitors. This requires a different approach to marketing, as well as a different type of customer service.

Despite the challenges that businesses have faced, the rise in domestic tourism has been a positive development for the industry. It has allowed businesses to stay afloat during a difficult time and has given people the opportunity to explore more of their own country. As we continue to adapt to life during the pandemic, it is likely that domestic tourism will continue to grow in popularity.

How Travel Restrictions Have Led to an Increase in Domestic Tourism

The coronavirus pandemic has resulted in widespread travel restrictions, leading many people to explore their own backyard instead. This shift in travel habits has resulted in a boom in domestic tourism.

There are a number of reasons why travel restrictions have led to an increase in domestic tourism. Firstly, international travel is simply not possible for many people at the moment. With borders closed and flights cancelled, would-be travellers are instead looking for holiday options closer to home.

Secondly, even when international travel does resume, there is likely to be a continued reluctance to undertake long-haul journeys. This means that people are more likely to take shorter trips within their own country rather than travelling overseas.

Finally, the pandemic has made us all reassess our priorities. For many of us, spending time with loved ones and connecting with nature are now more important than ever before. And what better way to do this than by taking a trip somewhere new within your own country?

So, if you’re looking for something to do this summer, why not explore your own backyard? There’s sure to be plenty of hidden gems just waiting to be discovered.

Changes in Consumer Habits and Preferences

The COVID-19 pandemic has changed the way we travel and the reasons why we travel. Domestic tourism is on the rise as people are seeking out safe, socially-distant vacation options. The pandemic has also shifted our travel priorities, with many of us now looking for opportunities to connect with nature, support local businesses, and spend time with family and friends.

Here are some of the key ways that our travel habits have changed during the pandemic:

We’re spending more time planning trips. With international travel off the table for now, we’re spending more time researching domestic vacation options. We want to make sure we get the most bang for our buck, so we’re taking our time to find the perfect destination.

We’re traveling closer to home. Many of us are opting for road trips or short flights to nearby states or provinces. This allows us to avoid crowded airports and long periods of time in transit.

We’re avoiding tourist hotspots. Instead of heading to major cities or popular tourist destinations, we’re exploring lesser-known areas that offer a more authentic experience. This helps us avoid crowds and enjoy a more relaxed vacation.

We’re spending more time outdoors. We’re seeking out outdoor activities like hiking, camping, and biking that allow us to safely socialize while getting fresh air and exercise.

We’re supporting local businesses.

Economic Impacts of Domestication on the Travel Industry

The COVID-19 pandemic has had a profound impact on the travel industry, with international travel all but grinding to a halt. This has led to a resurgence in domestic tourism, as people look to explore their own countries and regions. While this has been a boon for the travel industry, it has also had some economic impacts.

One of the most significant economic impacts of the pandemic has been the shift from international to domestic travel. This has led to job losses in the travel industry, as businesses that rely heavily on international travelers have been forced to downsize or close altogether. Additionally, it has resulted in a decline in revenue for airlines, hotels, and other businesses that cater to international travelers.

However, the rise in domestic tourism has offset some of these losses. Businesses that focus on domestic travelers have seen an uptick in business, helping to boost the economy. Additionally, many people who would normally travel internationally are now spending their money domestically, which is helping to support businesses across the country.

Overall, the pandemic has had a mixed impact on the economy when it comes to travel. While there have been some losses due to the decline in international travel, domestic tourism is helping to offset those losses and keep the industry afloat.

Strategies Used by Companies to Adapt to New Travel Patterns

As the pandemic has forced many of us to stay closer to home, domestic tourism has seen a significant uptick in recent months. And while some may be eager to get back to international travel as soon as possible, it’s clear that the pandemic has permanently changed our travel habits.

Here are some of the strategies that companies are using to adapt to this new reality:

1. Offering more flexible booking and cancellation policies: With so much uncertainty around travel, many people are hesitant to make firm plans. As a result, businesses are offering more flexible booking and cancellation policies to make it easier for people to change their plans at the last minute.

2. Focusing on local markets : With international travel all but off the table for now, businesses are turning their attention to local markets. This includes everything from promoting local attractions to partnering with local businesses.

3. Investing in digital marketing : With more people spending time online, businesses are investing in digital marketing tools and tactics like SEO and social media advertising.

4. Creating contactless experiences : To help protect both customers and employees, businesses are creating contactless experiences wherever possible. This might include contactless check-in/check-out at hotels or restaurants, mobile ordering/payments, and more.

The Role of Technology in Supporting Domestic Tourism

Technology has played a vital role in supporting domestic tourism during the pandemic. From helping us to find accommodation and travel options that are suitable for our needs, to providing a platform for us to share our experiences with others, technology has made it easier than ever before to enjoy a safe and enjoyable domestic holiday.

As we continue to adapt to the new normal, it is likely that technology will play an even more important role in supporting domestic tourism. For example, virtual reality could be used to give potential visitors a realistic preview of destinations, while mobile apps could help us to plan our journeys and make bookings on the go.

Conclusion: How Will Domestic Tourism Change Post COVID?

COVID-19 has changed the way we travel and it is likely that these changes will be permanent. The rise in domestic tourism is one of the most significant changes that we have seen. Prior to the pandemic, international travel was the norm but now, people are choosing to stay closer to home.

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Emerging trends in Indian tourism: The rise of domestic travel and weekend getaways

From culinary tourism to domestic travel, let's explore the transformative emerging trends that are redefining the essence of indian tourism..

India's tourism sector has seen an exciting transformation in recent years, revealing a colourful tapestry of unique experiences and possibilities for tourists . India has always been a nation of remarkable diversity and cultural richness, nestled between the beautiful Himalayas in the north and the gorgeous beaches of the south. Beyond the typical tourist destinations , the subcontinent is currently experiencing a rush of new trends that are changing how we travel to and experience this fascinating nation. The industry is being further driven to new heights by cutting-edge technology, ecological practices, and the resurrection of lost heritage.

India's tourism sector has seen significant transformation, with domestic travel and weekend vacations gaining appeal.(Unsplash)

"In recent years, India's tourism sector has seen significant transformation, with domestic travel and weekend vacations gaining appeal. Previously, abroad destinations were typically at the top of the list for Indian tourists looking for new experiences. The dynamics, however, have evolved, and domestic travel has taken the front stage. Domestic tourism and weekend getaways have grown dramatically in India, with 300 million people predicted to take domestic trips in 2023 and 100 million enjoying weekend getaways. A number of variables, such as increasing disposable income, more affordable air travel and other kinds of transportation, more knowledge of India's many tourism opportunities, and expanding social media and online travel booking platform use are all contributing to this trend," says Nirav Akshay Oza, CEO, of Efcee Hotels – A Leela Worldwide Venture. (Also read: Nature's masterpiece: Exploring India's highest waterfalls that leave you awestruck )

He added, "Domestic travel and weekend vacations are on the upswing, which bodes well for the Indian tourist industry. It is boosting economic activity and employment creation in the tourist industry, while also giving Indians greater possibilities to experience their own country. Indians are discovering their own country's plethora of experiences, from gorgeous hill stations to pristine beaches, historical sites to wildlife reserves. Domestic travel is appealing to many people due to its ease, shorter distances, and lower travel expenses. Popular weekend vacation locations include nearby towns and cities as well as well-liked tourist sites that may be reached in one or two days."

Emerging Trends in Indian Tourism

Nirav further shared with HT Lifestyle the emerging trends in Indian tourism, focusing on the growing preference for domestic travel and the popularity of weekend getaways.

1. Escaping the daily grind

With tight work schedules and demanding lives, Indians are increasingly looking for fast and revitalising vacations from city life. Weekend trips have grown in popularity among city residents eager to rest and refresh. Because of its proximity to major cities, individuals and families may arrange short getaways with minimum disturbance to their routines. As individuals seek comfort and indulgence during their weekend getaways, the demand for luxury hotels and resorts near metropolitan centres has increased.

2. Rise of boutique hotels and homestays

Along with the increase in domestic tourism, the popularity of boutique hotels and homestays has increased significantly. These one-of-a-kind accommodations provide unique experiences and the chance to immerse oneself in the local culture. Travellers today want more than simply nice accommodations; they want a genuine and fulfilling experience. Boutique hotels adapt to these changing demands with their finely designed interiors, attention to detail, and personalised services. Similarly, homestays allow visitors to interact with local populations, sample traditional cuisine, and learn about area culture.

3. Culinary tourism

A burgeoning trend in Indian tourism is the rise of culinary tourism, where travellers embark on gastronomic adventures to explore the diverse flavours and regional cuisines of the country. Food enthusiasts are keen to savour authentic local dishes, street food delicacies, and traditional culinary techniques. From the rich Mughlai flavours of Lucknow to the aromatic spices of South India, culinary tourism offers a sensory journey that intertwines history, culture, and palate-pleasing experiences. Luxury hotels and resorts are embracing this trend by curating culinary experiences, organizing food festivals, and promoting farm-to-table dining concepts.

4. Digital transformation and travel technology

The digital revolution has had a tremendous influence on the travel sector worldwide, including in India. Travel technology platforms, smartphone applications, and online booking systems have streamlined the planning and booking procedures, allowing travellers to research and choose their favourite locations with more ease. Furthermore, with people sharing their experiences and recommendations, social media has played an important part in motivating and influencing travel decisions. Luxury hotels are adjusting to this digital reality by offering unified web experiences, personalised marketing initiatives, and responsive customer care.

"Domestic travel and weekend trips in India are on the rise, reflecting a rising desire among Indians to explore their own country and find moments of leisure in the middle of their hectic life. Because of this shift in travel preferences, possibilities for luxury hotels and resorts, boutique lodgings, and eco-friendly places have arisen. Catering to the shifting wants and expectations of travellers will be critical for businesses to flourish as the tourism sector evolves. With its various landscapes, rich cultural legacy, and warm hospitality, India is poised to become a popular domestic and international tourism destination in the coming years," concludes Nirav Akshay Oza.

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The rise in visits to domestic attractions such as Durdle Door in Dorset masked an overall drop in domestic tourism away from coastal and rural areas.

UK tourism industry in peril as overseas visitors stay away

More than 40% of firms say they are likely to go under despite staycation boom

Last year’s boom in British summer holidays was not enough to save thousands of tourism businesses, despite increased domestic bookings to popular places such as Cornwall and the Yorkshire Dales.

A survey by the Tourism Alliance of 1,927 tour operators, hotels, attractions, language schools and other travel and hospitality businesses serving foreign tourists found that 11% believe they are “very likely to fail” in 2022, and a total of 41% think they are “quite likely to fail”.

The first three months of 2022 are looking bleak, with cancellations soaring in the wake of the Omicron variant. Almost a third of businesses surveyed have lost at least half of bookings made for domestic holidays between January and March this year.

With far less government support available after the end of the furlough scheme, a quarter of those surveyed said they had no more cash reserves, and just over half said they would run out within two months.

Last summer saw crowded beaches and sold-out seaside resorts , but that masked an overall drop in domestic tourism away from coastal and rural areas, according to Kurt Janson, director of the Tourism Alliance. The alliance comprises more than 60 trade associations that together represent 303,000 UK travel businesses.

“There’s traditionally been a huge amount of domestic tourism in towns and cities, and a lot of business travel and conferences, and those sectors have done very badly,” Janson said. “Businesses that rely on international travel have done badly – language schools, events, conferences. And because booking times for these things are longer, they will take longer to recover.”

Janson was particularly concerned about tour operators serving foreign visitors. “They are responsible for about 60% of overseas visitors to the UK and if they are not out there promoting the UK as a destination, inbound tourism will take a long time to recover. We need them out there, fighting for our corner of the market.”

The beach in Bournemouth

One indication of the struggles facing the tourism sector came last week, when the Hungarian government said it would again delay a scheme that would have seen as many as 60,000 students visiting the UK this summer.

“It would have been a massive boost,” said Huan Japes, membership director of English UK, the trade body for language schools. “We used to get 550,000 students coming, but we’ve barely risen above 100,000 a year since the pandemic.”

Janson said the figures showed it was unlikely that the government’s tourism recovery plan would meet its targets. It hopes to see a bounceback to 2019 levels of domestic tourism by the end of the year, and of overseas tourism by the end of 2023.

The UK was becoming less competitive as an international destination, Janson said. Visitors could no longer reclaim VAT when they left, other countries were spending more on marketing, and EU visitors now needed passports to enter the UK.

Tourists from China and Middle Eastern countries were keen to shop in places like Bicester Village, but were now more likely to choose France because they could get a tax refund when they left. (The UK scrapped the VAT reclaim scheme at the end of 2020.) “The government has basically said to those visitors ‘don’t come here – go to Paris instead’,” said Janson.

He said the government urgently needed to promote the UK as a destination. Ireland is spending £33m. Australia will spend £250m in the next three years, and the US is about to approve a £185m budget to rebuild its tourism industry.

Joss Croft, chief executive of trade body UKinbound, said: “These figures lay bare the devastating impact the pandemic continues to have on the UK’s inbound, outbound and domestic tourism industry, along with the entire supply chain. We are seeing green shoots, but the crippling border restrictions and ever-changing government guidance continue to stifle recovery.”

From 1 April, hotels, restaurants and other hospitality firms will have to start paying business rates again, as well as VAT at the full 20%, following the reduction to 12.5% during the pandemic.

Kate Nicholls , chief executive of UKHospitality, said keeping the reduced rate would bolster the tourism trade, instead of raising prices for staycationers and overseas tourists.

“The main driver for inbound tourism is price, and travel to the UK is very price sensitive,” she said. “A 1% fall in the cost of a holiday in the UK delivers a 1.3% increase in inbound tourism revenue for the economy.”

Bernard Donoghue, chief executive of the Association for Leading Visitor Attractions, said: “Tourism was hit first, hit hardest and will take the longest to recover, and those attractions and businesses which are usually highly dependent on inbound tourists, who have been absent for nearly two years, will take the longest to recover of all. Our industry lost, on average, £200m a day in 2021.”

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Domestic tourism on the rise

According to the British Tourism & Travel Show’s industry survey, domestic tourism is continuing to rise.

The survey, which was completed before and at the British Tourism & Travel Show by operators, destination marketing organisations, visitor attractions, destinations and hotels, showed continued positive growth for the sector and ‘upbeat opportunities ahead’, the Show reported.

Findings from the survey included that 67 per cent of respondents saw an increase in domestic visitor numbers and bookings in 2016, and 57 per cent of the group travel organisers, attractions, destinations, hotels and other suppliers who completed the survey think that customer spending habits will improve over the next year, while 78 per cent are feeling either very or fairly optimistic about the future of the domestic travel trade.

According to the Show, there was a general consensus that Brexit will continue to influence future consumer spending and, when asked specifically about the Brexit vote, 39 per cent said last year’s referendum result had no discernible impact on their business, while 28 per cent reported a positive impact. The remaining 33 per cent, many of whom also cater to the outbound tourism market, said it was already having a negative effect. The Show noted that many respondents commented that it may be ‘too early to tell’ the full impact.

Value for money, experience and location were found to be the top three factors customers consider when booking an outing or trip, followed by culture, accessibility, catering and family friendliness.  

The Show identified an increase in staycations, more last-minute bookings, a rise in inbound tourism from China, the US and Canada, and a rise in digitalisation as key trends to watch. 

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The rise of domestic tourism in Kenya

Kenya is known for its diverse wildlife, natural landscapes, and rich cultural heritage..

Domestic tourism refers to travel and tourism activities that take place within a person's own country or local area.

The Government and private sector have launched campaigns to encourage Kenyans to travel and explore their own country.

Elephants drink water on February 26

Kenya is known for its diverse wildlife, natural landscapes, and rich cultural heritage. The perfect hub for both local and international tourism.

This type of tourism promotes economic development in a community, generates revenue, and creates jobs within the local tourism industry.

The tourism sector in Kenya took a huge blow during the Covid-19 Pandemic recording one of the lowest numbers in tourism income generation.

Over the years there has been a steady incline in the number of tourists both locally and internationally, and this has led to the tourism sector becoming one of the major income generators.

There are factors that have led to the spike in domestic tourism, and some of them are:

Promotion of local tourism

These campaigns have included discounted packages and special offers to make domestic tourism more affordable.

Diverse attractions

Kenya is home to a wide range of natural and cultural attractions, including national parks, beaches, historical sites, and cultural festivals.

This diversity has helped to attract a growing number of domestic tourists looking for new and unique experiences.

S afety and Security

Where there is safety, tourism thrives. Kenya has made significant improvements in security in recent years, particularly in popular tourist destinations.

This has helped to reassure local travelers who may have previously been hesitant to travel within the country.

Improved infrastructure

The government of Kenya has invested heavily in upgrading roads, airports, and other transport infrastructure, making it easier for domestic travelers to explore different parts of the country.

Whether one is heading to the coast or the highlands, the journey is sure to be smooth.

In 2022, Kenyan citizens accounted for 1,660,169 of the total 2,179,125 National park visits, compared to 690,360 visits out of the total 913052.

This is according to the Tourism sector performance report 2022 page 37.

Domestic tourism has emerged as a significant trend, bringing much-needed revenue as well as offering an opportunity for locals to enjoy the top-notch destinations that the country has to offer.

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'Consumption boom': Domestic travel surges in China during Lunar New Year

China experienced an estimated 474 million domestic travel trips during the Lunar New Year.

China experienced an estimated 474 million domestic travel trips during the Lunar New Year. Image:  Unsplash/Jimmy Woo

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rise in domestic tourism

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Stay up to date:.

  • China experienced a sharp increase in domestic tourism during the recent Lunar New Year.
  • The level of travel and spending surpassed pre-pandemic figures, according to government data.
  • Economists, however, note that the surge in consumption does not necessarily indicate an economic revival.

People across China celebrated big during the Lunar New Year last month, with holiday travel and consumer spending surpassing pre-pandemic levels, according to government figures.

During the eight-day festival in mid-February, China experienced an estimated 474 million domestic travel trips, the country's Ministry of Culture and Tourism reported. The number of trips marked an over 34% increase from the year prior and a 19% jump from 2019.

“During this past Chinese New Year, domestic and international travel for Chinese tourists grew significantly,” Trip.com Group, the travel service conglomerate, said in a statement. “Domestically, the popularity of ice and snow travel in the north, and hot spring and island travel in the south led to a surge in interprovincial trips.”

People also spent heavily as they gathered to celebrate the Lunar New Year, also known as the Spring Festival. According to government figures, domestic tourists spent over 632 billion yuan (roughly $88 billion), an increase of 7.7% compared to holiday spending in 2019 and a 47.3% year-over-year hike.

Chinese tourists today are willing to spend more to enhance their travel experience.

“China's Spring Festival holiday has ignited a new round of consumption boom,” China’s state-run Xinhua news agency stated . “After a lapse of four years, the Chinese Spring Festival once again became the peak of global travel consumption.”

Lunar New Year decorations at the Beijing airport in February 2024.

Economic revival?

Consumer spending and domestic travel during the annual Lunar New Year is seen as an indicator of economic trends in China. Economists warn, however, that this year’s high level of consumption does not necessarily indicate an economic revival .

“Recent figures indicate that China’s consumption has finally picked up, but they are not strong enough to warrant an economic recovery led by the private sector this year,” said Seisaku Kameda, the Executive Economist at the Sompo Institute Plus, the internal think tank of the Sompo Group.

This year’s surge in domestic travel and spending comes as China continues to grapple with sluggish growth and an uneven economic recovery from the pandemic. “Consumer sentiment is mildly recovering,” Kameda added. “We, however, should not overestimate these developments.”

In January, the World Economic Forum’s Chief Economists Outlook found that China was an exception to the buoyant economic activity expected across Asia, with a “previous combination of strong and moderate growth expectations being replaced with largely moderate (69%) expectations for 2024.”

New spending patterns

In its report, China’s Ministry of Culture and Tourism added that a record 163 million people spent over 8 billion yuan ($1.1 billion) at cinemas across the country during the Lunar New Year. The movie-going figures marked an over 18% and 26% increase, respectively, compared to the year prior.

Moreover, roughly 16,300 commercial performances were held during the festival week, an over 50% increase from 2023.

“Consumption for Chinese tourists, both domestically and abroad, has also increased, but new spending patterns have arisen,” Trip.com Group added in its statement. “Chinese tourists today are willing to spend more to enhance their travel experience, whether it’s visiting unique attractions or enjoying highly customised service.”

Trip.com Group also noted a recent surge in interest in traditional Chinese cultural events such as lantern festivals and dragon dance performances and a sharp increase in customised travel orders.

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The Rise of Domestic Tourism in Vietnam

Due to the unpredictability and complexity of COVID-19’s development, international tourism industries are not likely to return to their normal state in the near future. This includes Vietnam, which has suffered heavily from the lack of international visitors. In order to cope with the situation, and tackle the crisis as well as possible, Vietnamese tourism companies have started to promote domestic tourism. This trend is projected to strongly continue in to the third quarter and will remain the new normal for the rest of 2020.

At the beginning of 2020, the Vietnamese tourism sector witnessed a robust growth in the number of both international and domestic travelers (up by 33% compared to the same period of 2019). However, after the Lunar New Year at the end of January, these numbers quickly went down due to the increasing concerns about the COVID-19 pandemic. In April, the number finally hit rock bottom, as social distancing and other heavy measures were put in to place. In the first five months of 2020, the number of international tourists only reached 3.7 million (down by 50% compared to 2019), while the number of domestic tourists also plunged to 16 million (down by 58.5%), according to a recent report by  Vietnam National Administration of Tourism . The total revenue of tourism decreased by 47.4% to 6.5 billion dollars.

Graph showing tourists visiting Vietnam in 2019 and 2020

In 2019, international tourism played an important role in Vietnam as they contributed to 55% of the country’s total tourism revenue. Moreover, they were expected to continue driving the growth of Vietnam’s tourism industry in 2020. However, this scenario has been ruled out due to international travel restrictions and border closures. The  Vietnam National Administration of Tourism  forecasted the total number of international tourists in 2020 to only reach five to eight million, depending on when the travel restrictions are lifted. Amidst this situation, the Vietnamese government has decided to promote domestic tourism instead to foster the economy.

Domestic travelling activities has gradually been recovered since the social distancing rules were eased at the end of April. Many provinces have cooperated to diversify their offers to attract more local tourists. Furthermore, many big companies in the tourism industry are now promoting compelling deals, including flight tickets and fancy accommodations with 20-50% discount off normal prices. Local airlines have also resumed 50-100% of its domestic capacity to serve the rising demands during summer. As a result of the cooperation between governmental and private sectors, many touristy destinations have recorded positive growth for the first time after a long stagnant period. The occupancy level of many resorts and hotels has increased from 50% to 80% during weekends.

The fact that Vietnam has successfully controlled the spread of COVID-19 has presented an opportunity to boost domestic tourism. The current prices for traveling, accommodation and other additional services are expected to remain stable until the end of this year, while the service quality will be continually improved. Domestic tourism is still on the rise and is considered a key factor in recovering the suffering industry, as well as the economy as a whole.

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Japan Services PMI revised higher to 52.9 in February amid rise in domestic demand

  • The au Jibun Bank Japan Services PMI was revised higher to 52.9 in February 2024 from 52.5, driven by domestic demand, as foreign demand stagnated.
  • It marked the 18th straight month of expansion in the service sector, supported by the steepest rise in new business since last August amid tourism demand and new product launches.
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    Hence, domestic tourism has been recognised as the main source and the way forward for the industry to recover quickly in Malaysia. Domestic tourists comprise locals travelling within their own country for leisure, visiting friends and relatives, or exploring the country's attractions. Essentially, there are differences in travel

  5. The Rise of Domestic Tourism

    The Rise of Domestic Tourism — Sea Going Green. In an attempt to revive the industry as coronavirus continues to pose a threat, the focus of marketing campaigns and target market strategies have been shifted primarily towards the phenomenon of domestic tourism. In this blog, I will take a look at a few of the ways travelers have been enjoying ...

  6. COVID-19 and the Rise of Domestic Tourism

    For many of us, jetting off on a long-haul holiday is unlikely while restrictions on international travel remain following COVID-19. However, demand for domestic travel is soaring as travelers look for close-to-home, lower risk holiday options. In fact, recent data has shown a 62.8% increase in net reservations since the reopening announcement ...

  7. Tourism Grows 4% in 2021 but Remains Far Below Pre-Pandemic Levels

    Increased tourism spending. The economic contribution of tourism in 2021 (measured in tourism direct gross domestic product) is estimated at US$1.9 trillion, above the US$1.6 trillion in 2020, but still well below the pre-pandemic value of US$ 3.5 trillion.Export revenues from international tourism could exceed US$700 billion in 2021, a small improvement over 2020 due to higher spending per ...

  8. Rebuilding tourism for the future: COVID-19 policy responses and ...

    The outlook for the tourism sector remains highly uncertain. The coronavirus (COVID-19) pandemic continues to hit hard, with international tourism expected to decrease by around 80% in 2020. Domestic tourism is helping to soften the blow, at least partially, and governments have taken impressive immediate action to restore and re-activate the sector, while protecting jobs and businesses.

  9. UNWTO Highlights Potential of Domestic Tourism to Help Drive Economic

    In OECD 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, the largest domestic tourism markets in terms of expenditure are the United States with nearly US$ 1 trillion, Germany with US$ 249 billion ...

  10. Tourism in a Post-Pandemic World

    Tourism continues to be one of the sectors hit hardest by the COVID-19 pandemic, particularly for countries in the Asia-Pacific region and Western Hemisphere. Governments in these regions, and elsewhere, have taken measures to ease the economic shock to households and businesses, but longer-term the industry will need to adapt to a post-pandemic "new normal."

  11. Is Domestic Tourism in the US on the Rise? [2022 Study]

    82% of US employees believe a domestic leisure trip lowered their stress levels. 76% of workers feel traveling locally upped their productivity. 77% of staffers grew more engaged at work after their most recent domestic trip. 79% of Americans became more creative in the workplace upon a local vacation. So—.

  12. Sustainability

    The COVID-19 pandemic has brought international tourism almost to a standstill worldwide. In many countries, the recovery process after the complete lockdown is characterized by an (initial) rise of domestic tourism. Tourism researchers claim that post-COVID-19 tourism will be different from that before the crisis.

  13. The rise of Domestic Tourism in 2020 and How to leverage ...

    Tourism Northern Ireland highlighted the importance of their marketing efforts targeting the domestic market as domestic tourism has contributed to 31% of the country's tourism revenue in 2018 and there is a further increase in domestic travel by 7% from 2018 to 2019, based on the Northern Ireland Statistics and Research Agency (NISRA).

  14. Domestic tourism in India

    The domestic spending within this sector grew significantly in recent years and was expected to reach nearly 90 percent by 2028 in comparison to international tourism. Pre-COVID years recorded ...

  15. The Rise of Domestic Tourism

    However, there has been a rise in domestic tourism as people look to explore their own backyard. This has been a boon for the domestic tourism industry, which was already worth $1 trillion in 2019. However, the pandemic has also brought some challenges for domestic tourism businesses. For example, many hotels and resorts have had to adapt their ...

  16. Emerging trends in Indian tourism: The rise of domestic travel and

    Domestic tourism and weekend getaways have grown dramatically in India, with 300 million people predicted to take domestic trips in 2023 and 100 million enjoying weekend getaways.

  17. Domestic tourism spending and economic vulnerability

    Domestic tourism is less risky than international tourism due to being less complicated in tour plans and transportation. ... Ma et al. (2019) show that ecotourism helps alleviate poverty, but gave rise to income inequality in the Qinling Mountains (China) in the period 2015-2017. Tourism economics points out that employment in tourism, ...

  18. The rise of domestic tourism: Challenges and opportunities

    Lifestyle Diaries The rise of domestic tourism: Challenges and opportunities. Bangladesh is fast becoming a popular tourist destination. One quick YouTube search would fill your screen with ...

  19. UK tourism industry in peril as overseas visitors stay away

    The rise in visits to domestic attractions such as Durdle Door in Dorset masked an overall drop in domestic tourism away from coastal and rural areas. ... It hopes to see a bounceback to 2019 ...

  20. Domestic tourism on the rise

    According to the British Tourism & Travel Show's industry survey, domestic tourism is continuing to rise. The survey, which was completed before and at the British Tourism & Travel Show by operators, destination marketing organisations, visitor attractions, destinations and hotels, showed continued positive growth for the sector and 'upbeat opportunities ahead', the Show reported.

  21. How rising global temperatures impact the tourism industry

    Tourism is a large driver of aviation, which creates 2% of global energy-related CO2 emissions. Image: Sustainable Travel International. But the tourism industry and tourism-dependent economies are also highly vulnerable to the impacts of rising temperatures. The Caribbean attracted over 28 million visitors in 2022and its economy is more ...

  22. The rise of domestic tourism in Kenya

    Improved infrastructure. The government of Kenya has invested heavily in upgrading roads, airports, and other transport infrastructure, making it easier for domestic travelers to explore different ...

  23. 'Consumption boom': Domestic travel surges in China during Lunar New

    During the eight-day festival in mid-February, China experienced an estimated 474 million domestic travel trips, the country's Ministry of Culture and Tourism reported. The number of trips marked an over 34% increase from the year prior and a 19% jump from 2019.

  24. The Rise of Domestic Tourism in Vietnam

    The Rise of Domestic Tourism in Vietnam. 20 July, 2020. Due to the unpredictability and complexity of COVID-19's development, international tourism industries are not likely to return to their normal state in the near future. This includes Vietnam, which has suffered heavily from the lack of international visitors.

  25. Rising Domestic Airfares in Vietnam Challenge Local Tourism, Favor

    The increase in domestic airfare prices is a critical issue for Vietnam's tourism industry, potentially leading to a decline in local tourist numbers in favor of international destinations. As the summer season approaches, the challenge for travel companies will be to find ways to make domestic tours appealing despite rising transportation costs.

  26. Japan Services PMI revised higher to 52.9 in February amid rise in

    The au Jibun Bank Japan Services PMI was revised higher to 52.9 in February 2024 from 52.5, driven by domestic demand, as foreign demand stagnated. It marked the 18th straight month of expansion ...