but beware of overtourism
The tourism and leisure industry, although strongly impacted by the crisis of recent years, currently has attractive growth prospects. They are driven in particular by a renewed household confidence in the future thanks to a more favorable economic context in Europe (falling unemployment rate and a return to growth in OECD countries), the developing middle class in emerging countries, new technologies leading to changes in economic models, improved legislative frameworks for housing rental and reservation platforms and the resilience of market stakeholders.
According to the World Tourism Organization (UNWTO), the number of tourists increased by 6% worldwide in 2018, reaching 1.4 billion visitors, and is expected to grow by 3 to 4% in 2019. According to the UNWTO, tourism accounts for 10% of world GDP and 1 in 11 jobs when direct, indirect and induced jobs are taken into account.
While France remains the world’s leading tourist country (89 million visitors), tourism around the world is expanding and becoming diversified (territories that have long been isolated are opening up, such as China, Vietnam and southern Africa). But, with the exception of growing tourism in Asia, Europe remains the most visited region in the world, with 713 million tourists and an increase of 7% in 2018.
The democratization of tourism, combined with the opening of borders and the development of transportation, offers significant opportunities for creating value. The e-commerce leaders in this sector have understood this and are behind the overtourism phenomenon (online rental companies such as Airbnb and online booking platforms such as Expedia and Booking), which traditional players should be able to tap into if they adapt their products and services and succeed in creating a strong tourist identity (luxury tourism, entertainment tourism, green tourism, etc.).
How to meet the challenges of the industry
Companies in this industry must constantly reinvent themselves and rethink their business models in view of legislative changes in many countries, new tourist behaviors, technological advances and the very rapid economic downturns inherent to the industry.
In addition, destination marketing, which until now has been carried out by public institutions, must be a strong line of development for private companies such as hotels, leisure centers and tourist service platforms.
How can we help you?
Zalis assists companies in the industry with strategic consulting, M&A and digital transformation, enabling them to adapt their business to the challenges of the industry. Zalis teams can also get involved in your operations to help implement the chosen strategy.