Travel & Tourism - Bhutan

Bhutan

In Bhutan, the revenue of the Travel & Tourism market is projected to reach US$8,871.00k by 2024.
The market is expected to grow annually at a rate of 6.82%, resulting in a projected market volume of US$12,340.00k by 2029.
The largest market in the market is the Package Holidays market, with a projected market volume of US$4,026.00k in 2024.
By 2029, the number of users in the Package Holidays market is expected to amount to 49.61k users.
In 2024, user penetration is expected to be 6.8% and is projected to hit 9.7% by 2029.
The average revenue per user (ARPU) is expected to be US$164.00.
By 2029, 76% of total revenue in the Travel & Tourism market will be generated through online sales.
The United States will generate the most revenue in global comparison, with US$214bn in 2024.
Bhutan's sustainable tourism policy, emphasizing on high-value, low-impact tourism, has attracted a niche market of mindful travelers.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

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Currency

Analyst Opinion

Over the past few years, Bhutan has seen a steady growth in its Travel & Tourism market, with an increasing number of tourists visiting the country each year.

Customer preferences: Tourists visiting Bhutan are increasingly looking for unique and authentic travel experiences, seeking to immerse themselves in the local culture and traditions. They are drawn to Bhutan's pristine natural landscapes, rich cultural heritage, and sustainable tourism practices. Additionally, there is a growing demand for adventure tourism activities such as trekking, hiking, and exploring Bhutan's remote regions.

Trends in the market: One of the key trends in the Bhutanese Travel & Tourism market is the government's focus on high-value, low-impact tourism. This approach ensures that tourism development in Bhutan is sustainable and preserves the country's environment and culture. Furthermore, there is a rise in luxury tourism in Bhutan, with high-end accommodations and exclusive experiences catering to affluent travelers. The country is also witnessing an increase in niche tourism segments such as wellness tourism and spiritual retreats.

Local special circumstances: Bhutan's unique policy of measuring Gross National Happiness (GNH) as a marker of progress sets it apart from other countries. This emphasis on holistic well-being and sustainable development aligns with the preferences of conscious travelers seeking meaningful experiences. The government's strict regulations on tourism, including the daily tariff for tourists and requirement of booking through authorized tour operators, help in controlling the number of visitors and maintaining the exclusivity of travel experiences in Bhutan.

Underlying macroeconomic factors: The stable political environment in Bhutan, along with government initiatives to promote tourism as a key economic sector, has contributed to the growth of the Travel & Tourism market. Additionally, Bhutan's strategic location between India and China, two major emerging markets with growing outbound tourism, has increased the country's visibility as a unique travel destination. The improvement in infrastructure, such as the expansion of airports and roads, has also made it easier for tourists to access different parts of the country, further boosting the tourism sector.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.