BEACH TOURISM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Beach Tourism Market Size and Trends

The Beach Tourism Market is estimated to be valued at USD 237.62 Bn in 2024 and is expected to reach USD 341.10 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031. 

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The beach tourism market has seen steady growth over the past few years. Factors such as rising disposable incomes, increasing millennial population, and growing popularity of beach destinations among families have been driving the market growth. Moreover, advancement in telecommunications and availability of cheaper flight options have made beach destinations more accessible. However, certain threats such as beach erosion due to climate change, rising pollution levels, and occasional natural calamities may challenge the market growth to a certain extent going forward.

Climate and weather conditions

Climate and weather play a hugely significant role in determining beach tourism trends around the world. Warmer weather conditions and longer summer seasons are making popular beach destinations even more attractive to global travelers. According to data from the World Meteorological Organization, the last decade from 2011-2020 was the hottest on record. With the rise in average global temperatures experiencing further acceleration due to climate change, beach areas are witnessing more favorable weather windows that extend tourism seasons. This allows destinations to promote and market their beaches for shouldering more months out of the year. As coastal regions experience a higher number of warm and sunny days, it is drawing more visitors and boosting occupancy rates for hotels and resorts along beaches off-seasons as well. The impacts of climatic changes are also visible in terms of beach erosion and flooding threats faced by some regions. Data published on the United Nations Environment Program website notes that sea-level rise is exacerbating the vulnerability of certain small island nations in the Caribbean and Pacific. Consequently, beach destinations which offer safety from natural disasters and climate risks are gaining more prominence among traveler selections. Places able to promote stability or expansion of their coastlines have an edge over others that are more prone to facing shoreline losses. This allows such locations to project confidence regarding longevity of their tourism offerings centered around beaches. They can also justify higher investments to upgrade facilities and experiences for capitalizing on the growing beach tourism trends.

Market Concentration and Competitive Landscape

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Beyond the scenic coastal landscapes and relaxing atmosphere, beaches have emerged as cultural hotspots and sites for myriad activities. In many locales, beaches have become the center of social life in summer, with cafes, bars and restaurants lining the sand. Families and friend groups meet daily at "their" beach to swim, play sports, picnic or simply spend the afternoon together people watching. Cultural events like concerts, carnivals and craft fairs are also regularly scheduled at beaches. The sandy shores have additionally become venues for sports and watersports ranging from casual activities like beach volleyball, Frisbee and body boarding to organized competitions. Beaches nowadays cater to all interests with water-based equipment rentals, adventure tours and classes available. This has positioned beaches as places to socialize, be entertained, and stay active on holiday rather than just relax, boosting their popularity.

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Challenges: Rising Sea Levels and More Frequent Extreme Weather: With climate change leading to rising sea levels and more frequent extreme weather, beaches around the world are shrinking and eroding at alarming rates. This poses major challenges for the long-term viability of beach tourism. Destinations are having to invest heavily in costly shoreline protection measures to prevent valuable beachfront assets like hotels and resorts from being damaged or wiped out. Coastal erosion and flooding could start deterring tourists from visiting vulnerable locations in the future.

Opportunities: Innovative Adaptation Strategies for Beach Tourism: The threat of climate change on beaches also presents opportunities for innovative adaptation. 'Blue carbon' projects that restore coastal ecosystems like mangroves, salt marshes, and sea grasses can protect shorelines from erosion in a natural and sustainable way. Destinations can work to strengthen disaster preparedness and build climate resilience to ensure beach tourism infrastructure and communities are protected from climate impacts.

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In terms of Service Type, Accommodation contributes the 39.8% share of the market owing to the availability of variety and convenience. The accommodation segment within the beach tourism market comprises various lodging and housing options for travelers visiting beach destinations. This includes everything from luxury hotels and resorts to budget hostels, motels, bed and breakfast inns, vacation rentals, and campsites. The wide variety of accommodation available across different budget levels and traveler preferences makes this segment highly attractive. Beachgoers have numerous lodging choices that suit their needs, from expensive all-inclusive resorts offering amenities like spas and water sports to affordable guesthouses providing only the basic facilities. The growth in home-sharing platforms like Airbnb has further expanded accommodation availability through privately-owned vacation houses, apartments, and rooms. This allows travelers to design unique lodging experiences at their preferred locations near the beach. In addition, most beach destinations now offer accommodation incorporated directly within the resort areas or town centers. This ensures visitors are in close proximity to the beach, restaurants, shops and other attractions without requiring long commutes. The inherent convenience of on-site lodging at the heart of activities continues to drive demand within the accommodation segment. Property owners also focus on enhancing guest comforts through modern facilities, courteous services and tropical décor reflective of the beachside theme. Luxury resorts especially emphasize amenities like private beach access, swimming pools, fitness centers and dining options to justify their premium prices. This differentiation in product offerings across price points keeps the accommodation segment vibrant.

Insights, By Travelers Type: Social and Networking Benefits

Group Travel contributes the 39.2% share owing to social and networking benefits. Traveling in groups for beach holidays has many personal and social advantages over traveling solo. The most prominent reason why the group travel segment holds the largest share in travelers type is the networking opportunities it provides. Being with family or friends at a beach vacation creates an environment for bonding, interacting and making new acquaintances. Group outings offer a built-in social support system while exploring an unfamiliar destination. Travelers feel more secure taking trips in numbers rather than alone. This is a big psychological driving factor for choosing group travel especially for families with children or the elderly. Practical benefits also make the group segment attractive. Cost savings are possible through shared accommodations and transportation. Activities can be planned together, increasing chances for a memorable experience. Dividing responsibilities eases the travel burden for each individual as well. Peer influence and FOMO (fear of missing out) further spurs the preference for group beach trips. Traveling with others amplifies the sense of community and occasions for making memories. Social media proliferation has enhanced this effect by exposing people to group trip photos from family and friends. Togetherness enhances the feeling of truly enjoying a beach vacation versus solo travel.

Regional Insights

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Europe holds a dominant position in the global beach tourism market, accounting for a significant market share of 37.8%. The region's diverse coastal landscapes, rich cultural heritage, and favorable climate make it an attractive destination for travelers seeking beach vacations. Europe boasts a wide range of coastal landscapes, ranging from stunning sandy beaches to rugged cliffs and picturesque coves. From the sunny Mediterranean shores in Spain, Italy, and Greece to the pristine beaches of Portugal, France, and Croatia, Europe offers an array of beach experiences. This diversity appeals to various traveler preferences, attracting a large and diverse tourist base. Europe's beaches are often intertwined with rich cultural and historical heritage, making them even more appealing to tourists. Many European beach destinations are located near iconic landmarks, ancient ruins, and UNESCO World Heritage sites. This combination of natural beauty and cultural significance creates a unique tourist experience, attracting history enthusiasts and cultural travelers.

Asia Pacific has emerged as the fastest-growing region in the beach tourism market in recent years. Thailand in particular has grown exponentially, establishing itself as a global tropical hotspot. With its long coastlines along the Gulf of Thailand and Andaman Sea dotted with picturesque beaches, Thailand offers pristine islands, lively party spots, and high-end resorts all within a compact region. Other countries in the area like Indonesia, Vietnam, and the Philippines are also vigorously promoting their beach destinations and seeing significant annual increases in arrivals. Their proximity to large source markets in East Asia, developing transportation hubs, and commitment to tourism development are driving this rapid growth. The warm weather, affordable prices, and diverse options across thousands of islands give Southeast Asia strong potential to one day rival the Caribbean's stronghold of the beach tourism industry.

Market Report Scope

Beach Tourism Industry News

• In January 2024, MakeMyTrip launched ‘Beaches of India’ campaign as search for Lakshadweep surges
• In March 2024, PM Modi launched work to boost tourism at Karaikal temple, beach
• In November 2020, TUI AG's brand RIU Hotels and Resorts launched the Riu Guest app to help customers manage their holidays. The app lets customers: Book holidays, Check in online, Request services, Access loyalty program benefits, and Learn about RIU hotels and destinations.

*Definition: The beach tourism market comprises of tourists who travel to beach destinations for relaxation and leisure activities. It caters to tourists interested in experiencing beach vacations, swimming in the ocean, sunbathing, water sports like surfing, fishing in coastal areas or simply enjoying scenic sunsets and coastal views. Tourists engage in activities like beachcombing, dolphin watching, sightseeing, visiting local islands, restaurants and shops near the beaches.

Market Segmentation

•  Service Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Accommodation
  • Transportation
  • Activities
  • Others
•  Travelers Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Solo
  • Group
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • TUI Group
  • Expedia Group, Inc.
  • TripAdvisor, Inc.
  • Thomas Cook
  • Booking.com B.V.
  • Airbnb, Inc.
  • Cox & Kings Ltd
  • Apple leisure group
  • Kuoni travel group
  • On the Beach Group
  • Beach Travel
  • Safari & Beach
  • The Anaheim Tour Company
  • Dana Point