Travel & Tourism - Panama | Statista Market Forecast

The Travel & Tourism market in Panama is expected to experience significant growth in the coming years.
According to projections, revenue in this market will reach US$255.50m by 2024, with an annual growth rate of 4.13% from 2024 to 2029.
This growth is expected to result in a market volume of US$312.90m by 2029.
The largest market in the Travel & Tourism market in Panama is the Vacation Rentals market, with a projected market volume of US$93.44m by 2024.
The number of users in this market is expected to reach 1.10m users by 2029, with a user penetration rate of 27.0% in 2024 and a projected rate of 33.1% by 2029.
The average revenue per user (ARPU) is expected to be US$209.00.
Furthermore, it is expected that 75% of total revenue in the Panama Travel & Tourism market will be generated through online sales by 2029.
When compared globally, United States is expected to generate the most revenue in this market, with a projected revenue of US$214bn in 2024.
Panama's Travel & Tourism industry is thriving due to its unique blend of modern cityscapes, lush rainforests, and pristine beaches.

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.

For further information on the data displayed, refer to the info button right next to each box.

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.)

Panama's Travel & Tourism market is experiencing a notable growth trajectory, driven by various factors that are shaping the industry landscape in the country.

Customer preferences: Travelers in Panama are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences is driving the demand for personalized and immersive travel experiences, including eco-tourism adventures and cultural exchanges with local communities.

Trends in the market: One prominent trend in Panama's Travel & Tourism market is the rise of sustainable tourism practices. With a growing awareness of environmental issues, travelers are actively seeking eco-friendly accommodations, responsible tour operators, and conservation initiatives. This trend is not only driven by consumer preferences but also by government initiatives to promote sustainable tourism in the country.

Local special circumstances: Panama's unique geographical position as the land bridge connecting North and South America makes it a natural hub for international travelers. The country's diverse ecosystems, including rainforests, beaches, and coral reefs, offer a wide range of attractions for nature lovers and adventure seekers. Additionally, Panama's rich cultural heritage, with influences from indigenous tribes, Spanish colonizers, and Afro-Caribbean communities, provides a unique blend of traditions and customs for tourists to explore.

Underlying macroeconomic factors: The growth of Panama's Travel & Tourism market is closely linked to the country's overall economic development. As Panama continues to invest in infrastructure projects, such as airport expansions and road improvements, the tourism industry benefits from increased accessibility and connectivity. Moreover, government efforts to promote Panama as a key travel destination through marketing campaigns and international partnerships are driving visitor numbers and boosting the local economy.

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.