Travel & Tourism - North Macedonia

North Macedonia

North Macedonia's Travel & Tourism market is projected to reach a revenue of US$64.95m by 2024, with an expected annual growth rate of 7.60% (CAGR 2024-2029).
This growth is anticipated to result in a projected market volume of US$93.69m by 2029.
The Package Holidays market is the largest market, with a projected market volume of US$26.27m by 2024.
In this market, the number of users is expected to reach 310.80k users by 2029, with a user penetration rate of 16.2% in 2024 and an expected increase to 20.1% by 2029.
The average revenue per user (ARPU) is expected to be US$192.10.
By 2029, online sales are projected to generate 80% of the total revenue in the Travel & Tourism market.
In global comparison, United States is expected to generate the most revenue, with US$214bn in 2024.
North Macedonia's rich cultural heritage and stunning natural landscapes make it an emerging destination for sustainable tourism.

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

The Travel & Tourism market in North Macedonia is experiencing a steady growth in recent years, driven by various factors contributing to the development of the industry.

Customer preferences: Travelers in North Macedonia are increasingly seeking authentic and unique experiences, including cultural and historical attractions, outdoor activities, and gastronomic adventures. They are drawn to the country's rich cultural heritage, picturesque landscapes, and warm hospitality. Additionally, there is a growing interest in sustainable and responsible tourism practices among visitors, leading to the rise of eco-friendly accommodations and tours in the region.

Trends in the market: One of the notable trends in the Travel & Tourism market in North Macedonia is the increasing popularity of off-the-beaten-path destinations. Travelers are looking to explore lesser-known regions within the country, beyond the popular tourist hotspots. This trend is driving investment in infrastructure and services in emerging destinations, catering to the demand for unique travel experiences. Furthermore, the rise of digital platforms and social media has made it easier for travelers to discover and share hidden gems in North Macedonia, contributing to the diversification of tourism offerings in the country.

Local special circumstances: North Macedonia's strategic location at the crossroads of Europe, Asia, and Africa has played a significant role in shaping its unique cultural heritage and diverse tourism offerings. The country's rich history, blending influences from various civilizations, makes it a compelling destination for history enthusiasts and cultural travelers. Moreover, North Macedonia's natural beauty, including pristine lakes, majestic mountains, and lush vineyards, offers a wide range of outdoor activities for adventure seekers and nature lovers.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in North Macedonia is also supported by favorable macroeconomic conditions, including stable economic growth, infrastructure development, and government initiatives to promote the tourism sector. The country's efforts to improve connectivity, enhance visitor experiences, and attract foreign investment have contributed to the overall competitiveness of North Macedonia as a travel destination. Additionally, partnerships with international organizations and neighboring countries have helped to raise the profile of North Macedonia on the global tourism map, attracting a diverse range of visitors to explore all that the country has to offer.

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.