Domestic Tourism Market Set to Explode: Billion‑Dollar Growth and Rising CAGR

Published on November 21, 2025

The domestic tourism market is entering what analysts believe is a major growth phase. From a valued base of over US$1 trillion in 2020, reports project that by 2030 the market may reach as high as US$6‑7 trillion globally—with annual growth rates (CAGR) in the 13‑17% range. One forecast places the market at US$1,226 billion in 2020, growing to US$6,736 billion by 2030, representing a CAGR of 13.4%. Another study estimates a market size of US$1,670 billion in 2022 growing to US$5,858 billion by 2030 (CAGR ~17%).

That’s a lot of zeroes—and a big shift in how people travel, how destinations are marketed, and how tourism infrastructure is built. If you’re part of or interested in travel (yes, that means you), the message is: it’s not just about foreign tourists anymore. Local travellers—that is, people exploring within their own country—are becoming the powerhouse of tourism growth.

What’s Driving This Surge?

Several factors combine to fuel this domestic‑tourism explosion:

Rising incomes and expanding middle classes in many countries mean more people have disposable cash and time for travel.

Post‑pandemic behaviour shifts: With international travel disrupted and uncertain, many consumers turned to exploring their own country. That habit appears to be sticking.

Digital booking and travel tech make intra‑country trips easier, cheaper and more visible. Online travel‑agency platforms dominate booking modes in many markets.

Preference for short, frequent trips: Weekend getaways, staycations, regional breaks are cheaper, less complex and lower risk than long‑haul foreign trips.

Government focus: Many countries are actively promoting “explore your own country” campaigns, developing regional tourism, infrastructure and connectivity to tap domestic demand.

Together, these factors mean domestic travel isn’t just a fallback—it is becoming a strategic growth driver for the industry.

Key Numbers & Segments to Watch

When we look deeper into the data, some segments stand out:

• Location breakdown: Within domestic travel, “local/regional travel” (short trips within or close to one’s home region) is growing faster than interstate or long‑haul domestic.
• Booking mode: Online travel agencies (OTAs) are expanding fast in the domestic space. For example, one report projected OTA bookings will rise from US$695.6 billion in 2020 to US$3,516.5 billion by 2030.
• Purpose of travel: Weekend getaways, short breaks, and leisure trips dominate, as travellers seek manageable, lower‑cost vacations. Workplace travel and meetings are also growing.
• Age group trends: Younger travellers (under 30) and those 30‑41 show strong growth in domestic travel—they are digitally savvy, budget conscious and seek experiences rather than long flights.
• Regional dominance: Asia‑Pacific currently holds the largest share of domestic tourism spending and is expected to continue dominating growth due to population size and rising incomes.

These data suggest that if you work in travel, hospitality or destination development, the focus needs to shift: domestic travellers, short stays, regional destinations, digital booking—all become central.

Why This Matters for Your Travel Experience

What does all this mean if you’re planning your next trip? A few implications:

• More options closer to home: With domestic travel growing, there may be more new destinations, boutique accommodations and interesting experiences within your country that you haven’t considered.
• Better value: Domestic travel often costs less—no international flight, fewer visa/entry issues, simpler logistics. You may be able to budget smarter and travel more frequently.
• Flexibility and spontaneity: Shorter domestic trips allow you to travel on weekends, respond to deals, explore nearby regions more often.
• Supporting local economies: By choosing domestic travel, you help regional communities and boost your country’s tourism resilience.
• Expect evolving services: Hotels, tour operators and destinations are updating their offerings to cater to domestic travellers—so expect more tailored experiences, deals and marketing for locals.

In short, domestic tourism growth turns what used to be “holiday abroad” into “holiday at home” with ambition, options and value.

Industry Implications: What Travel Businesses Should Do

For travel professionals, hospitality operators, destination marketers and governments, the growth of domestic tourism means shifting strategy:

• Design for short‑trip stays: Instead of the classic week‑long vacation, many domestic travellers want 1–3 night breaks. Packages, rates and marketing should reflect that.
• Embrace digital & mobile first: Domestic travellers are likely to book online, on mobile, last‑minute. Offers, apps and user‑friendly booking matter.
• Focus on local experiences: Domestic travellers tend to look for authenticity—local food, regional culture, nature escapes. Highlight distinctiveness.
• Diversify destination offerings: Many regions can capture growth by offering experiences to domestic markets rather than relying purely on international visitors.
• Manage infrastructure & sustainability: As domestic tourism grows, destinations must ensure that infrastructure (transport, lodging, attractions) can cope, and that growth is sustainable and inclusive.

Challenges and Things to Consider

Growth is exciting—but it’s not without challenges:

• Overcrowding & regional imbalance: Some local destinations may become over‑visited if domestic trends cluster, leading to strain on resources.
• Infrastructure gaps: In many countries, transport links, accommodation capacity and quality in ‘secondary’ destinations need upgrading to meet growing demand.
• Economic and seasonal vulnerabilities: Domestic travel demand may also be sensitive to economic downturns, fuel price rises, or local constraints.
• Competition and differentiation: As more destinations chase domestic travellers, standing out becomes harder. Marketing, experience quality and authenticity will matter.
• Experience parity: Domestic travellers increasingly expect higher quality experiences; if service standards lag, satisfaction may suffer and the growth may stagnate.

Looking Ahead: The Future of Domestic Travel

Given the trends, domestic tourism appears poised to become not just a complement to international travel—but a core part of the travel‑and‑tourism industry. Some likely developments include:

• Rise of micro‑travels and mini‑breaks: Short trips, closer to home, repeated more often.
• Stronger region‑to‑region travel: Travellers may move beyond tourist hotspots and explore lesser known regions within their own countries.
• Experience‑based domestic travel: Focus on local culture, adventure, wellness, food and nature rather than mass package tourism.
• Domestic tourism as economic backbone: For many countries, domestic travel may cushion tourism revenue when international travel slows or becomes cost‑prohibitive.
• Technology and personalisation: More apps, platforms, loyalty schemes and dynamic offers built for domestic travellers, meeting preferences for flexibility and spontaneity.

Final Thoughts: A Billion‑Dollar Story in the Making

The global domestic tourism market is quietly becoming a multi‑trillion‑dollar phenomenon. The growth we’re seeing isn’t just incremental—it’s structural. As people realise there are rich travel experiences to be had closer to home, as tech makes booking easier, and as destinations wake up to new opportunities, the travel industry is changing.

For you as a traveller, this opens doors: more travel, better value and re‑discovery of your own country. For the industry, it signals that winning will mean catering to the local traveller as much as the international one. If you’re watching or participating in travel’s next chapter, domestic tourism is where much of the action is.