What are the key risks that will hinder the growth of the tourism sector in the next 2 years
Geopolitical instability, overtourism, and the cost of living crisis are recognized as key factors that negatively impact the development of the tourism sector. This is stated in a report by Euromonitor International, a business intelligence company.
It is noted that these challenges can become the main threats to tourism for the next two years. This was reported by Travel Weekly.
According to Euromonitor International senior manager Nadiia Popova, "The rising cost of living, leading to a decline in consumer confidence, and fluctuations in inflation are expected to be the biggest challenges for the industry in 2024 and 2025, especially if a global recession begins. Geopolitical instability is another risk for the travel industry.
Nadia Popova said that tourists will seek value-for-money offers, giving preference to authentic and local tourism. This trend is expected to stimulate consumer demand for intra-regional travel.
Additionally, she reminded of the risks to the local community and the environment posed by over-tourism. Popova emphasized that cities are currently addressing this issue by implementing certain restrictions to prevent an excessive influx of tourists. Simultaneously, dispersal strategies are being introduced to promote the development of alternative or non-traditional destinations.
"Many view overtourism as a double-edged sword, emphasizing the importance of implementing sustainable practices. These measures aim to make tourism more responsible than mass travel and to benefit both the environment and local communities," the report states.