Travel & Tourism - Central Asia

Central Asia

Central Asia's Travel & Tourism market is projected to generate a revenue of US$1,664.00m in 2024.
It is expected to experience an annual growth rate of 7.21%, resulting in a projected market volume of US$2,357.00m by 2029.
Among the markets, Hotels is expected to hold the largest share, with a projected market volume of US$852.00m in 2024.
By 2029, the number of users in this market is expected to amount to 12,110.00k users.
In 2024, the user penetration rate is expected to be 12.4%, which is expected to rise to 19.2% by 2029.
The average revenue per user (ARPU) is expected to be US$169.70.
By 2029, 82% of the total revenue in the Travel & Tourism market will be generated through online sales.
In terms of global comparison, United States is expected to generate the highest revenue (US$214bn in 2024).
Kyrgyzstan's tourism industry is thriving due to its stunning natural landscapes and cultural attractions.

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

Region comparison

Currency

Analyst Opinion

Central Asia's Travel & Tourism market is experiencing significant growth and development in recent years.

Customer preferences: Travelers in Central Asia are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. There is a growing demand for sustainable and eco-friendly tourism options, as travelers become more conscious of their environmental impact. Additionally, personalized and tailor-made travel experiences are gaining popularity among tourists in the region.

Trends in the market: One notable trend in the Central Asian travel market is the rise of adventure tourism. Countries like Kazakhstan and Kyrgyzstan are attracting adventure seekers with their stunning landscapes, offering activities such as trekking, mountaineering, and horseback riding. Moreover, cultural tourism is also on the rise, with tourists showing a keen interest in exploring the rich history and heritage of countries like Uzbekistan and Turkmenistan.

Local special circumstances: Central Asia's unique cultural heritage and historical sites are major attractions for tourists. The region's Silk Road history, ancient cities, and architectural wonders draw visitors from around the world. Countries like Uzbekistan have made significant efforts to promote their cultural heritage through tourism, leading to a surge in international visitors. Additionally, the warm hospitality of the local population and the vibrant traditional cuisines add to the allure of Central Asia as a travel destination.

Underlying macroeconomic factors: The improving infrastructure and connectivity in Central Asia have played a crucial role in driving the growth of the travel and tourism market. Investments in transportation, accommodation, and tourist facilities have made it easier for travelers to explore the region. Furthermore, government initiatives to promote tourism, such as visa liberalization and marketing campaigns, have contributed to the increasing popularity of Central Asia as a tourist destination. Economic stability and the growing middle class in the region have also boosted domestic travel, supporting the overall growth of the tourism industry.

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.