The cultural tourism market is expected to grow at a CAGR of 8% during the forecast period. Increased preference for cultural tourism, drivers.2, and drivers.3 are some of the significant factors fueling cultural tourism market growth.
Increased preference for cultural tourism
In 2019, the domestic cultural tourism experienced an arrival of more than 60% of the overall arrivals in the market. The growth in domestic cultural tourism is driven by easy government regulations, no currency exchange rates, and familiarity with the culture and language
The domestic tourism economy around the world is lucrative and has been boosted by the growing trend of staycations. The domestic cultural holiday is cost-effective for individuals and has other benefits, such as making residents aware of the history and culture of their country. This type of tourism is likely to be less of a hassle for visitors, as visitors in domestic tourism are aware of the language, currency/food changes or etiquette. In countries such as India, domestic tourism is growing owing to local campaigns and government support. The contribution of domestic tourists and tourism to the Indian economy has increased. Domestic tourist visits have been increasing at a rapid pace in recent decades. In 2000, there were 220 million domestic tourist visits. The number increased to 1.82 billion in 2018.
Though the global domestic cultural tourism market accounted for the highest revenue share in the overall cultural tourism market, it is likely to lose some of its share to the international cultural tourism market. The growing attraction of cultural and heritage tourism overseas is likely to drive tourists toward international cultural tourism. However, as domestic cultural tourism offers familiarity with the country’s tourism policies, government rules, and risks associated with the cultural tourism, the share of this segment is likely to continue to dominate the market during the forecast period.
