Travel & Tourism - Iraq | Statista Market Forecast

The Travel & Tourism market in Iraq is expected to experience significant growth in revenue in the coming years.
By 2024, revenue is projected to reach US$1.61bn and show an annual growth rate of 3.67%, resulting in a market volume of US$1.93bn by 2029.
The largest market, Package Holidays, is expected to reach a market volume of US$816.90m in 2024, with an estimated number of users reaching 5.95m users by 2029.
The user penetration rate is expected to increase from 16.7% in 2024 to 19.9% by 2029.
The average revenue per user (ARPU) is projected to be US$208.00.
Online sales are expected to generate 74% of total revenue in the Travel & Tourism market by 2029.
It is interesting to note that United States is expected to generate the most revenue in the global Travel & Tourism market, with a projected revenue of US$214bn by 2024.
Despite security concerns, Iraq's tourism industry is slowly growing, with historical sites such as Babylon and the Kurdistan region attracting more visitors.

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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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Iraq has been experiencing significant growth and development in recent years.

Customer preferences: Travelers in Iraq are increasingly seeking unique and authentic experiences, driving demand for cultural and historical tourism. Additionally, there is a growing interest in adventure tourism activities such as desert safaris and hiking in the picturesque landscapes of Iraq.

Trends in the market: One notable trend in the Iraqi travel market is the rise of religious tourism, with many visitors coming to the country for pilgrimage purposes. The holy sites in Iraq attract a large number of religious tourists each year, contributing to the overall growth of the tourism sector. Moreover, there has been an increase in international visitors exploring the rich cultural heritage and archaeological sites in Iraq.

Local special circumstances: Iraq's diverse cultural heritage and historical significance make it a unique destination for travelers. The country is home to ancient civilizations, UNESCO World Heritage sites, and religious landmarks that attract tourists from around the world. Despite security concerns in certain regions, the government has been taking steps to promote tourism and improve infrastructure to support the industry.

Underlying macroeconomic factors: The improving security situation in Iraq, coupled with government initiatives to promote tourism, has played a key role in driving the growth of the travel market. Additionally, investments in infrastructure development, such as new hotels and transportation facilities, have enhanced the overall tourism experience for visitors. The country's strategic location in the Middle East also contributes to its attractiveness as a travel destination.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.