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

Political uncertainty and conflicts across many regions can hamper the growth of global urban tourism market. When there are domestic or international tensions between countries, travel advisories are often issued cautioning citizens against non-essential travel. This discourages tourists from planning trips to cities located in unstable political environments due to safety concerns. Even cities in countries with overall stable governance may see a dip in tourist arrivals if these have a history of localized conflicts, protests or unrest. This negative sentiment affects travel decisions and destination choices.  Geopolitical risks pose a serious threat in curtailing the free flow of tourism worldwide. According to the data published by UNWTO in 2022, international tourist arrivals was increased by 4% in 2021 as many borders remained partially closed. While vaccinations helped reopen cross-border travel to some extent, ongoing conflicts actively held the sector back from reaching pre-pandemic levels of growth. According to the Global Peace Index 2022 Report by the Institute for Economics & Peace, the level of peacefulness declined globally during the assessment period driven mainly by increased political instability and conflicts in Europe, Middle East and Africa. Cities located in these regions consequently witnessed lower tourism growth.

 Market Opportunity: Developing new niche tourism products

Developing unique and specialized niche tourism products can drive the urban tourism market growth in the near future. As people seek new experiences post pandemic, niche offerings allow destinations to attract different segments of travelers and play a role in reinvigorating local economies. Cities can develop niche tours and activities centered on special interests like arts, culture, food, heritage, sports, or various experiential activities. Many cities now offer specialized bike, walking or running tours that highlight urban architecture, public art or green spaces. These experience-driven products appeal to both domestic and international travelers in search of immersive local engagements off the beaten path. Sustainable and socially responsible tourism is also a growing niche, as more travelers want to visit destinations and support businesses that have a positive community or environmental impact. Urban areas have an opportunity to promote niche products from community organizations, minority-owned start-ups or socially-driven enterprises. For instance, in 2022, according to the report by UN World Tourism Organization, culinary tours, workshops and experiences led by marginalized groups in cities can help to preserve cultural heritage and provide new livelihoods.