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Inle Lake is usually crowded in September. Thousands of locals and visitors flock to Inle Lake to witness the highly anticipated Phaung Daw Oo Pagoda Festival that features enshrined Buddha images. Offer donations to the pagodas and watch locals sing and dance to folk songs, and watch the thrilling one-legged boat race participated by male locals. Manuha Pagoda Festival is also celebrated in September, with locals parading the streets with offerings and paper figurines of Lord Buddha’s reincarnations.

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Announcement

• To expedite the implementation of Myanmar’s e-government digitization and to support the development of Myanmar’s tourism industry, the Ministry of Immigration and Population launched the e-Visa Website ( evisa.moip.gov.mm ) on 1 st September 2014. Tourist e-Visas and Business e-Visas have been issued electronically.
• In support of the economic development of the State, the e-Stay Extension website ( estay.moip.gov.mm ) will be launched on 1 st November 2021. This allows foreigners residing and working in Myanmar who have entered Myanmar via the e-Visa (Business) obtained from the e-Visa website to apply for a Stay Extension and Re-entry Visa online.
• Plagiarisms of design and information displayed on the website or any part of the website, along with any misleading conduct in Myanmar or in foreign countries will be subject to legal action in accordance with the existing laws of Myanmar.

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In light of the evolving COVID-19 situation and rapid increase of COVID-19 cases around the globe, there will be a temporary suspension for all new e-Visa applications. This will take effect on [START] Myanmar Standard Time (GMT +6:30) to [END] Myanmar Standard Time (GMT +6:30). Please refer to this page for any further updates and to contact us if you require any further information. We thank you for your kind understanding and apologize for any inconvenience caused. Ministry of Immigration and Population

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Myanmar Tourism Strategic Recovery Roadmap 2021 – 2025 (MTSRR)

Myanmar Government has now issued its Myanmar Tourism Strategic Recovery Roadmap (MTSRR) . Based on the previous Tourism Master Plan (2013-2020), the MTSRR is a response to COVID-19 and aligned with UNWTO Global Guidelines to Restart Tourism . The Roadmap will integrate and expand the new six-pillar Tourism Master Plan outline, and all State and Regional Tourism Committees (RTCs) will develop their own State and Regional Master Plans to reflect the actions in the MTSRR.

The MTSRR includes

• A new proposed structure for tourism in our country to be more inclusive and benefit more of the less well off of our citizens, whilst building a framework for new destinations and products.
• Action scenarios and the need for change.

About the MTSRR

The impact of COVID-19 is not just about GDP or the economy: it is about our lives and livelihoods. The overriding imperative of our government is to safeguard people’s lives and to safeguard their livelihoods by prioritising health and by supporting our people and businesses affected by lockdowns and loss of income.

Mission for Recovery

To provide a response to COVID-19 aligned with UNWTO guidelines, based on the Myanmar Tourism Master Plan, for Recovery and Future Development of a Sustainable and Inclusive Tourism Sector in Myanmar.

Goals for Recovery

• Immediate – Restore confidence to boost and restart the domestic industry
• Medium Term – Rebuild Visitor Demand and Improve Product Offerings
• Long term – Develop a more resilient, balanced, responsible, and sustainable tourism sector

Strategies & Actions

The MTSRR provides a series of Strategies and specific Actions in order to achieve Immediate, Medium, and Long-Term Goals. There are a total of 18 Strategies, which are divided into 80 specific Actions. The Strategies and Actions are not static and will be constantly reviewed and changed, the uncertainties around COVID-19 are a reality of the need for constant change and review.

Immediate Strategy: Restore confidence to boost and restart the domestic tourism sector

• Enhance health and safety protocols to generate trust in Myanmar as a safe destination
• Continue economic support to MSMEs and individuals in the tourism sector
• Reassure and inspire the public to travel again and explore new experiences
• Re-align tourism destinations to “the new normal”
• Develop Human Resource Capacity and strengthen skills and knowledge for the new normal

Medium-Term Strategy: Rebuild Visitor Demand and Improve Product Offerings

• Establish Myanmar as a trusted and safe destination
• Position Myanmar in the heart and minds of International travellers
• Diversify the tourism product base, improve quality and strengthen protected areas
• Support MSMEs through digitisation, tourism investments and technical assistance
• Set national tourism standards, ensure access to learning and create new tourism jobs
• Develop destination management strategies, standards and guidelines for DMOs

Long-Term Strategy: Develop a resilient, balanced, responsible, and sustainable tourism sector

• Establish A Smart Tourism Ecosystem and digital infrastructure
• Establish a “Myanmar Tourism Board” for coordination of Marketing & Communication activities
• Strengthen tourism human capital by establishing pathways to higher education and by updating the national HRD Strategy
• Improve tourism connectivity and accessibility
• Ensure destination management is inclusive and in consultation with local stakeholders
• Invest in developing and expanding the scope of Inclusive and Community-Based Tourism
• Safeguard tourism resources and prevent negative impacts on social and natural environment

Download MYANMAR-TOURISM-STRATEGIC-RECOVERY-ROADMAP-23.10.20 and see MOHT Facebook announcement here.  

You can also use our interactive tool to explore each strategy and action in detail.

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Establishment & Background

The Myanmar Tourism Federation (MTF) was established in April 2011 by the Myanmar Hoteliers Association, the Union of Myanmar Travel Association and Myanmar Tourism Marketing, with the blessing of the Ministry of Hotels and Tourism. It currently has 11 associate members.

MTF is a member of PATA (Pacific Asia Travel Association) and of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).

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Document - 40 items

Myanmar - Let The Journey Began - Inlay

Myanmar - Let The Journey Began - Bagan

Myanmar - Let The Journey Began - Mandalay

Myanmar - Let The Journey Began - Yangon

Myanmar - Let The Journey Began - Mingalaba

Myanmar - Be Enchanted (Tanintaryi)

Myanmar - Be Enchanted (Mon and Kayin)

Myanmar - Be Enchanted (Chin)

Myanmar - Be Enchanted (Nay Pyi Taw)

Myanmar - Be Enchanted (Kayah)

• myanmar.gov.mm

Vang Vieng, Lao PDR

Myanmar tourism federation’s kyi kyi aye: “we’re constantly reviewing responsible and sustainable tourism development”.

• 25 Oct 2023

Myanmar’s tourism is bouncing back, ever so gingerly – take it from someone who has seen two decades’ development from a front-row seat. 

With more than 16 years of full-time government service in the Ministry of Hotels and 16 years of teaching in the Ministry of Education, Daw Kyi Kyi Aye has an incomparable breadth of experience in the Myanmar tourism sector. Beyond serving in a government role and advising international tourism partners, Ms. Aye has represented Myanmar as a delegate, panelist, speaker and moderator at international and regional conferences, meetings, and roundtable discussions.

In her role as a Senior Tourism Advisor of the Myanmar Tourism Federation – a confederation of private businesses in the Myanmar tourism sector – Ms. Aye has been a key player in the post-COVID rehabilitation of the industry. We asked Ms. Aye about the current state of affairs in Myanmar, the public and private-sector efforts to bring tourists back to Myanmar, and the work that needs to be done to achieve full recovery. 

How is tourism in Myanmar recovering after opening up last year?

Domestic travel was the first to start recovering, with domestic traveler numbers increasing during the Thingyan holiday period in April 2022. Popular destinations like Bagan , Kyaiktiyo pagoda , popular beaches such as Chaungtha, Ngwesaung, and the Myeik Archipelago were filled with visitors during these Thingyan holidays. 

More recently, there was a significant number of visitors on many pagodas around Myanmar on the full moon day of Waso which is a religious holiday. These events all indicate that Myanmar’s domestic tourism sector is slowly starting to recover.

International visitor arrivals in Myanmar have also been gradually recovering since its opening last year in April 2022. This recovery is steadily rising in terms of daily international arrivals by air although not as booming as in Thailand or other countries in the region. 

This actually resulted from the severe impacts of the unstable political climate beyond the COVID pandemic scenario. In particular, the long haul European and North American arrivals declined owing to the political changes.

For the time being, the travel agents and tour operators in Myanmar have been focusing their promotion and marketing to the ASEAN, Asian and Russian markets to recover the downturn of tourism.

How has Myanmar adjusted its visa policies to encourage greater inbound travel? 

Currently, Thai nationals have been allowed with border passes and/or with valid passport and visa. This is in line with the reopening of cross border tourism, travel and trade along Myanmar-Thailand and Myanmar-China, which has been reopening phase by phase for the past 10 months. 

Since 2019, visa exemption has been implemented for citizens from eight ASEAN countries to visit Myanmar up to 14 days if entering and departing from Yangon, Mandalay, or Nay Pyi Taw International Airports. This policy is still in place.

The “ eVisa” to the citizens of 100 countries has also resumed, and an announcement covering Visa on Arrival to target markets is expected before the end of the year for 2024.

Beyond inbound visitors from China, what other factors will help Myanmar tourism recover over the next year?

Apart from attracting the existing China outbound tourism market, the recovery of inbound tourism will be helped by ASEAN and key target markets including ASEAN +3 countries and neighbouring India.  

Private sector stakeholders from the Myanmar Tourism Marketing Association (MTM) and the Union of Myanmar Travel Association (UMTA) have joined recent international fairs such as ITB (Berlin) and ITB (Asia), ASEAN Tourism Forum, and Mekong Tourism Forum (MTF) to reconnect with their target markets and make new contacts throughout 2022 and the past months of 2023.  The government, through the MOHT, has given incentives to the private stakeholders to join these regional platforms and support their promotion and marketing.

Safety is a priority concern for many tourists coming into Myanmar. How are local tourism stakeholders addressing this concern?

To help Myanmar tourism recover, the safety and security issue should be enhanced in most tourist attractions, especially in Bagan, Mandalay and Inle Lake. Non-tourist areas that are off-limits to travelers should be made available, with improved safety and security of the travelers.

Two different ministries – the Ministry of Health and the Ministry of Hotels and Tourism – have been jointly certifying Enchanting Myanmar Regional, State and National-level Health and Safety Protocols aligned to the WTTC guidelines for accommodation providers, transportation, travels and tours, and tourist guides at the tourist destinations.  

Enchanting Myanmar Health and Safety Protocols (HSP) certification for the health and safety of hotels and tourism-related industries to gain trust in tourism Myanmar is being provided at the region/state level, national and international levels. 

Down the line, we should see some other factors come into play, such as favorable government policy that clearly communicates procedures for service providers and travelers; streamlined visa processes; collaboration with international and regional tourism organizations to develop travel linkages between/among tourism destinations; and PR activities to promote Myanmar as a trusted, safe and attractive destination. 

What are the latest efforts being done to promote sustainable tourism in the country?

The tourism sector in Myanmar has been constantly reviewing responsible and sustainable tourism development aligned to a variety of objectives: those of the Myanmar Tourism Law, Myanmar Sustainable Tourism Plan and the Myanmar Tourism Strategic Recovery Roadmap (2021-2025) . particularly with regard to action points covering responsible tourism, community-based tourism, and authentic ecotourism tourism. 

What initiatives are the Myanmar Tourism Federation pursuing to attract more visitors to visit Myanmar?

One important initiative we’re pursuing is to seek approval from the Ministry of Hotels and Tourism to establish a separate entity called “Myanmar Tourism Board”, to facilitate sustainable and responsible tourism development in collaboration with the private sector stakeholders. The Board will be able to seek funding for tourism promotion and marketing.

We also plan to organize promotion campaigns to develop tourism marketing that include digital marketing, participating in international travel fairs, and exhibitions, and targeted advertisements in key source markets by collaborating with the government bodies, travel agents, tour operators, hotels and other related stakeholders.

Further to the existing tasks, MTF should consider develop new tourism products and experiences in Myanmar such as lesser-known areas, community based tourism, and ecotourism. 

By diversifying and enhancing the tourism offerings, MTF would be in a position to attract a wider range of visitors with different interests and preferences.

For more information, visit the Myanmar Tourism Federation’s official site.  

Ninh Bình Tourism Festival promises arts and culture galore

Community-based tourism in Bagan to attract more visitors in 2024

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Myanmar making all out efforts in having Mount Popa included on UNESCO geoparks list

Monday, 03 Jun 2024

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YANGON (Xinhua): Myanmar authorities are working towards the accession of the country's Mount Popa National Geopark to the UNESCO Global Geoparks list, an official from the Ministry of Natural Resources and Environmental Conservation said on Monday.

"After designating it as Mount Popa National Geopark in December last year, we are working to meet the requirements for the UNESCO Global Geoparks status," Daw Zin Mar Tun, deputy permanent secretary of the ministry, told Xinhua.

"We are now establishing more geo sites to meet the criteria for the global geopark status," she said. The Mount Popa National Geopark currently has 15 geo sites.

If Mount Popa National Geopark gets the UNESCO Global Geopark status, it will attract more international tourists and help promote geo-tourism. This scenario will also help local people earn more money and create job opportunities, she added.

Mount Popa is a dormant volcano standing 1,518 meters above sea level. It is located in central Myanmar's Mandalay Region, about 50 km southeast of Bagan in the Pegu Range. - Xinhua

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Unlocking Algeria: The Hidden Gem of African Tourism

Algeria, africa's largest country, is working to attract more tourists to its cultural and scenic treasures, aiming to shake its tourism backwater status. with ambitious plans for hotel construction and site restoration, officials hope to quadruple tourism by 2030, improving infrastructure and reforming visa systems to rival neighbors like morocco and tunisia..

Algeria wants to lure more visitors to the cultural and scenic treasures of Africa's largest country, shedding its status as a tourism backwater and expanding a sector outshone by competitors in neighbouring Morocco and Tunisia.

The giant north African country offers Roman and Islamic sites, beaches and mountains just an hour's flight from Europe, and haunting Saharan landscapes, where visitors can sleep on dunes under the stars and ride camels with Tuareg nomads. But while tourist-friendly Morocco welcomed 14.5 million visitors in 2023, bigger, richer Algeria hosted just 3.3 million foreign tourists, according the tourism ministry.

About 1.2 million of those holiday-makers were Algerians from the disapora visiting families. The lack of travellers is testimony to Algeria's neglect of a sector that remains one of world tourism's undiscovered gems.

As Algeria's oil and gas revenues grew in the 1960s and 70s, successive governments lost interest in developing mass tourism. A descent into political strife in the 1990s pushed the country further off the beaten track. But while security is now much improved, Algeria needs to tackle an inflexible visa system and poor transport links, as well as grant privileges to local and foreign private investors to enable tourism to flourish, analysts say.

Saliha Nacerbay, General Director of the National Tourism Office, outlined plans to attract 12 million tourists by 2030 - an ambitious fourfold increase. "To achieve this, we, as the tourism and traditional industry sector, are seeking to encourage investments, provide facilities to investors, build tourist and hotel facilities," she said, speaking at the International Tourism and Travel Fair, hosted in Algiers from May 30 to June 2.

Algeria has plans to build hotels and restructure and modernize existing ones. The tourism ministry said that about 2,000 tourism projects have been approved so far, 800 of which are currently under construction. The country is also restoring its historical sites, with 249 locations earmarked for tourism expansion. Approximately 70 sites have been prepared, and restoration plans are underway for 50 additional sites, officials said.

French tourist Patrick Lebeau emphasised the need to improve infrastructure to fully realise Algeria's tourism prospects. "Obviously, there is a lot of tourism potential, but much work still needs to be done to attract us," Lebeau said.

Tourism and travel provided 543,500 jobs in Algeria in 2021, according to the Statista website. In contrast, tourism professionals in Morocco estimate the sector provides 700,000 direct jobs in the kingdom, and many more jobs indirectly. (Writing by Tarek Amara, Additional reporting by Ahmed El Jechtimiin Rabat, Editing by William Maclean)

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Now boarding: Faces, places, and trends shaping tourism in 2024

After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. 1 Unless otherwise noted, the source for all data and projections is Oxford Economics. Over the same time frame, international travel should likewise ramp up to its historical average of nine billion nights. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveler outlays in 2024, representing roughly 9 percent of this year’s global GDP.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

There’s no doubt people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go? We developed a snapshot of current traveler flows, along with estimates for growth through 2030. For the purposes of this report, we have divided the world into four regions—the Americas, Asia, Europe, and the Middle East and Africa.

Our analysis identifies three major themes for industry stakeholders to consider:

• The bulk of travel spending is close to home. Stakeholders should ensure they capture the full potential of domestic travel before shifting their focus to international travelers. And they should start with international travelers who visit nearby countries—as intraregional trips represent the largest travel segment after domestic trips.
• Source markets are shifting. Although established source markets continue to anchor global travel, Eastern Europe, India, and Southeast Asia are all becoming fast-growing sources of outbound tourism.
• The destinations of the future may not be the ones you imagine. Alongside enduring favorites, places that weren’t on many tourists’ maps are finding clever ways to lure international travelers and establish themselves as desirable destinations.

The bulk of travel spending is close to home

International travel might feel more glamorous, but tourism players should not forget that domestic travel still represents the bulk of the market, accounting for 75 percent of global travel spending (Exhibit 1). Domestic travel recovered from the COVID-19 pandemic faster than international travel, as is typical coming out of downturns. And although there has been a recent boom in “revenge travel,” with travelers prioritizing international trips that were delayed by the pandemic, a return to prepandemic norms, in which domestic travel represents 70 percent of spending, is expected by 2030.

The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders. Domestic demand has softened slightly, as American travelers return abroad. 2 Dawit Habtemariam, “Domestic U.S. tourism growth levels off as Americans head overseas,” Skift, August 18, 2023. But tourism players with the right offerings are still thriving: five national parks broke attendance records in 2023 (including Joshua Tree National Park, which capitalized on growing interest from stargazers indulging in “dark sky” tourism 3 Scott McConkey, “5 national parks set attendance records in 2023, and the reasons may surprise you,” Wealth of Geeks, April 16, 2024. ).

China’s $744 billion domestic travel market is currently the world’s second largest. Chinese travelers spent the pandemic learning to appreciate the diversity of experiences on offer within their own country. Even as borders open back up, Chinese travelers are staying close to home. And domestic destinations are benefiting: for example, Changchun (home to the Changchun Ice and Snow Festival) realized 160 percent year-on-year growth in visitors in 2023. 4 Shi Xiaoji, “Why don’t Chinese people like to travel abroad anymore? The global tourism industry has lost 900 billion yuan. What is the situation?,” NetEase, February 12, 2024. In 2024, domestic travel during Lunar New Year exceeded prepandemic levels by 19 percent.

China’s domestic travel market is expected to grow 12 percent annually and overtake the United States’ to become the world’s largest by 2030. Hotel construction reflects this expectation: 30 percent of the global hotel construction pipeline is currently concentrated in China. The pipeline is heavily skewed toward luxury properties, with more than twice as many luxury hotels under construction in China as in the United States.

India, currently the world’s sixth-largest domestic travel market by spending, is another thriving area for domestic travel. With the subcontinent’s growing middle class powering travel spending growth of roughly 9 percent per year, India’s domestic market could overtake Japan’s and Mexico’s to become the world’s fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, 5 Murali Krishnan, “Can India’s airports cope with rapid passenger growth?,” Deutsche Welle, February 7, 2024. boosted in part by a state-subsidized initiative that aims to connect underserved domestic airports. 6 “India is seeing a massive aviation boom,” Economist , November 23, 2023.

When travelers do go abroad, they often stay close to home (Exhibit 2).

Europe and Asia, in particular, demonstrate strong and growing intraregional travel markets.

Recognizing this general trend, stakeholders have been funneling investment toward regional tourism destinations. An Emirati wealth fund, for instance, has announced its intent to invest roughly $35 billion into established hospitality properties and development opportunities in Egypt. 7 Michael Gunn and Mirette Magdy, “UAE’s $35 billion Egypt deal marks Gulf powers’ buying spree,” Bloomberg, April 27, 2024.

Europe has long played host to a high share of intraregional travel. Seventy percent of its travelers’ international trips stay within the region. Europe’s most popular destinations for intraregional travelers are perennial warm-weather favorites—Spain (18 percent), Italy (10 percent), and France (8 percent)—with limited change to these preferences expected between now and 2030.

Despite longer travel distances between Asian countries, Asia’s intraregional travel market is beginning to resemble Europe’s. Intraregional travel currently accounts for about 60 percent of international trips in Asia—a share expected to climb to 64 percent by 2030. As in Europe in past decades, Asian intraregional travel is benefiting from diminishing visa barriers and the development of a low-cost, regional flight network.

Thailand is projected to enjoy continued, growing popularity with Asian travelers. Thailand waived visa requirements for Chinese tourists in 2023 and plans to do the same for Indian tourists starting in 2024. It has aggressively targeted the fast-growing Indian traveler segment, launching more than 50 marketing campaigns directed at Indians over the past decade. The investment may be paying off: Bangkok recently overtook Dubai as the most popular city destination for Indian tourists. 8 “Bangkok overtakes Dubai as top destination for Indians post visa relaxation, reveals Agoda,” PR Newswire, January 18, 2024.

A McKinsey ConsumerWise survey on consumer sentiment, conducted in February 2024, suggests that Chinese travelers are also exhibiting high interest in international travel, with 36 percent of survey respondents indicating that they intend to spend more on international travel in the next three months. 9 Daniel Zipser, “ China brief: Consumers are spending again (outside of China) ,” McKinsey, April 8, 2024. Much of this interest is directed toward regional destinations such as Southeast Asia and Japan, with interest in travel to Europe down from previous years. 10 Guang Chen, Zi Chen, Steve Saxon, and Jackey Yu, “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Given travelers’ preference for proximity, how can tourism stakeholders further capitalize on domestic and intraregional travel demand? Here are a few strategies:

• Craft offerings that encourage domestic tourists to rediscover local gems. Destinations, hotels, and transportation providers can encourage domestic tourists to integrate lesser-known cultural landmarks into their trips to visit friends and relatives. In France, the upscale hotel chain Relais & Châteaux markets historic properties that lie far from classic tourist sights—such as Château Saint-Jean in rural Auvergne—as a welcome escape from the bustle of Paris. In Mexico, the Pueblos Mágicos program has successfully boosted domestic tourist visits to a set of “magical towns” that showcase Mexican heritage.
• Fold one-off domestic destinations into fuller itineraries. Route 66 in the United States is a classic road trip pathway, which spurs visits to attractions all along the highway’s length. Tourism stakeholders can collaborate to create similar types of domestic itineraries around the world. For instance, Mexico has expanded on its Pueblos Mágicos concept by branding coordinated visits to multiple villages as “magical routes.” In France, local tourism boards and vineyards have collaborated to promote bucket list “wine routes” around the country.
• Make crossing borders into neighboring countries seamless. Removing logistical barriers to travel can nudge tourists to upgrade a one-off trip to a single attraction into a bucket list journey across multiple, less-trodden destinations. In Africa, for example, Ethiopian Airlines is facilitating cross-border travel to major regional tourist sites through improved air connectivity. In Asia, Thailand has announced its intent to create a joint visa easing travel among Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam.

Source markets are shifting

The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38 percent of international travel spending in 2023 and are expected to remain the top five source markets through 2030. But interest in travel is blossoming in other parts of the world—causing a shift in the balance of outbound travel flows (Exhibit 3).

North Americans’ travel spending is projected to hold steady at roughly 3 percent annual growth. US consumers voice growing concerns about inflation, and the most cost-constrained traveler segments are reducing travel, which is affecting ultra-low-cost airlines and budget hotels. Most travelers, however, plan to continue traveling: McKinsey research suggests that American consumers rank international and domestic travel as their highest-priority areas for discretionary spending. Instead of canceling their trips, these consumers are adapting their behavior by traveling during off-peak periods or booking travel further in advance. Travel spending by Europeans paints a slightly rosier picture, with roughly 5 percent projected annual growth. Meanwhile, the projected 12 percent annual growth in Chinese travelers’ spending should anchor substantial increases in travel spending across Northeast Asia.

Alongside these enduring traveler segments, new groups of travelers are emerging. Eastern Europe, India, and Southeast Asia are still comparatively small source markets, but they are developing fast-growing pools of first-time tourists (Exhibit 4).

India’s breakneck GDP growth of 6 percent year over year is bolstering a new generation of travelers, 11 Benjamin Laker, “India will grow to become the world’s third-largest economy by 2027,” Forbes , February 23, 2024. resulting in a projected annual growth in travel spending of 9 percent between now and 2030. Indian air carriers and lodging companies are making substantial investments to meet projected demand. Budget airline IndiGo placed the largest aircraft order in commercial aviation history in 2023, when it pledged to buy 500 Airbus A320 planes 12 Anna Cooban, “Biggest plane deal in history: Airbus clinches massive order from India’s IndiGo,” CNN, June 19, 2023. ; that same week, Air India nearly equaled IndiGo’s order size with purchase agreements for 250 Airbus and 220 Boeing jets. IndiGo later added an order for 30 additional Airbus A350 planes, well suited to serving both domestic and international routes. 13 “Airbus confirms IndiGo's A350 aircraft order,” Economic Times , May 6, 2024. The Indian Hotels Company Limited is ramping up its hotel pipeline, aiming to open two new hotels per month in the near future. International players are not sitting on the sidelines: seven hotel chains are launching new brands in India in 2024, 14 Peden Doma Bhutia, “Indian Hotels expansion plans: 2 new brands launching, 2 hotels opening every month,” Skift, February 2, 2024. including Marriott’s first Moxy- and Tribute-branded hotels in India and entrants from Hilton’s Curio and Tapestry brands. 15 Forum Gandhi, “Check-in frenzy: International hotel giants unleash fresh brands in India’s booming hospitality landscape,” Hindu Businessline , February 13, 2024. Development focus has shifted away from major metropolises such as Mumbai and Delhi and toward fast-developing, smaller cities such as Chandigarh and Hyderabad.

Southeast Asian travel spending is projected to grow at roughly 7 percent per year. Pockets of particularly high growth exist in Cambodia, Malaysia, and the Philippines. To capitalize on this blossoming source market, neighboring countries are rolling out attractive visa arrangements: for example, China has agreed to reciprocal visa waivers for short-term travelers from Malaysia, Singapore, and Thailand. 16 Julienna Law, “China launches ‘visa-free era’ with Southeast Asia. Will travel retail boom?,” Jing Daily , January 30, 2024.

Travel spending by Eastern Europeans is expected to grow at 7 percent per year until 2030—two percentage points higher than spending by Western Europeans. Areas of especially high growth include the Czech Republic, Hungary, and Poland, where middle-class travelers are increasingly venturing farther afield. Major tourism players, including the TUI Group, have tapped into these new source markets by offering charter flights to warm-weather destinations such as Egypt. 17 Hildbrandt von Klaus, “TUI develops Czech Republic as a new source market,” FVW, December 22, 2023.

Although the number of travelers from these new source markets is growing, their purchasing power remains relatively limited. Compared with Western European travelers (who average $159 per night in total travel spending), South Asians spend 20 percent less, Eastern Europeans spend 40 percent less, and Southeast Asians spend 55 percent less. Only 3 percent of the current Asian hotel construction pipeline caters to economy travelers, suggesting a potential supply gap of rooms that could appeal to budget-constrained tourists.

While acknowledging that historical source markets will continue to constitute the bulk of travel spending, tourism players can consider actions such as these to capitalize on growing travel demand from newer markets:

• Reduce obstacles to travel. Countries can look for ways to strategically invest in simplifying travel for visitors from growing source markets. In 2017, for example, Azerbaijan introduced express processing of electronic visas for Indian visitors; annual arrivals from India increased fivefold in two years. Requirements regarding passport photocopies or in-person check-ins can similarly be assessed with an eye toward reducing red tape for travelers.
• Use culturally relevant marketing channels to reach new demographics. Unique, thoughtful marketing strategies can help destinations place themselves on first-time travelers’ bucket lists. For example, after the release of Zindagi Na Milegi Dobara , a popular Bollywood movie shot in Spain with support from the Spanish Ministry of Tourism, Indian tourism to Spain increased by 65 percent. 18 “ Zindagi Na Milegi Dobara part of syllabus in Spain colleges,” India Today , June 6, 2004.
• Give new travelers the tech they expect. Travelers from newer source markets often have access to tech-forward travel offerings. For example, Indian travelers can travel anywhere within their country without physical identification, thanks to the Digi Yatra app. The Southeast Asian rideshare app Grab has several helpful travel features that competitors lack, such as automated menu translation and currency conversion. Tourism stakeholders should consider how to adapt to the tech expectations of newer travelers, integrating relevant offerings that ease journeys.
• Create vibrant experiences tailored to different price points. Crafting lower-budget offerings for more cost-constrained travelers doesn’t need to result in giving them a subpar experience. Capsule hotels, in which guests sleep in small cubbies, began as a response to the high cost of accommodations in Japan, but they have become an attraction in their own right—appearing on many must-do lists. 19 Philip Tang, “24 of the best experiences in Japan,” Lonely Planet, March 23, 2024.

The places you’ll go: The destinations of the future may not be the ones you imagine

The world’s top ten destination countries (the United States, Spain, China, France, Saudi Arabia, Türkiye, Italy, Thailand, Japan, and India, in that order) currently receive 45 percent of all travel spending, including for domestic travel. But some new locales are gaining traction (Exhibit 5).

A significant number of travelers are expanding their horizons, booking journeys to less visited countries that are near to old standbys. For instance, Laos and Malaysia, which both border Thailand—an established destination that is home to Bangkok, the world’s most visited city 20 Katherine LaGrave, “This is the world’s most visited city,” AFAR , January 31, 2024. —are up a respective 20 percent and 17 percent, respectively, in year-over-year international travel spending.

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic-travel spending. But some new locales are gaining traction.

Several other countries that have crafted thoughtful tourism demand generation strategies—such as Peru, the Philippines, Rwanda, and Vietnam—are also expected to reap benefits in the coming years. Vietnam logged a remarkable 40 percent increase in tourism spending in the five years before the pandemic. Postpandemic, it has rebounded in part by waiving visa requirements for European travelers (while indicating intent to offer similar exemptions in the future for Chinese and Indian travelers). 21 Ashvita Singh, “Vietnam looks to offer visa-free entry to Indians: India report,” Skift, November 20, 2023. The Philippines has made a concerted effort to shift its sun-and-beach branding toward a more well-rounded image, replacing its long-standing “It’s more fun in the Philippines” tourism slogan with “Love the Philippines.” Peru is highlighting less visited archeological sites while also marketing itself as a top-notch culinary destination through the promotion of Peruvian restaurants abroad. Rwanda is investing in infrastructure to become a major African transit hub, facilitated by Qatar Airways’ purchase of a 60 percent stake in the country’s major airport. 22 Dylan Cresswell, “Rwanda plots ambitious tourism recovery,” African Business , July 28, 2022. Rwanda has also successfully capitalized on sustainable tourism: by charging $1,500 per gorilla trekking permit, for instance, it has maximized revenue while reducing environmental impact.

Tourism players might consider taking some of these actions to lure tourists to less familiar destinations:

• Collaborate across the tourism ecosystem. Promotion is not solely the domain of destination marketing organizations. Accommodation, transportation, and experience providers can also play important roles. In Singapore, for instance, the luxury resort Marina Bay Sands partners extensively with Singapore Airlines and the Singapore Tourism Board to offer compelling tourism offerings. Past collaborations have included flight and stay packages built around culinary festivals and a Lunar New Year drone show. 23 “Singapore Tourism Board, Marina Bay Sands & UOB partner to enliven Marina Bay precinct,” Singapore Tourism Board news release, January 25, 2024.
• Use infrastructure linkage to promote new destinations. By extending route options, transportation providers can encourage visitors to create itineraries that combine familiar destinations with new attractions. In Asia, Thailand’s tourism authority has attempted to nudge visitors away from the most heavily trafficked parts of the country, such as Bangkok and Phuket, and toward less popular destinations.
• Deploy social media to reach different demographics. Innovative social media campaigns can help put a destination on the map. Australia launched its “Ruby the kangaroo” campaign in China to coincide with the return of postpandemic air capacity between the two places. A video adapted for Chinese context (with appropriate gestures and a hashtag in Mandarin) garnered more than 20 million views in a single day on one of China’s largest social media platforms. 24 Nicole Gong, “Can Ruby the kangaroo bring Chinese tourists hopping back to Australia?,” SBS, June 5, 2023.
• Embrace unknown status. “Off the beaten path” messaging can appeal to widely traveled tourists seeking fresh experiences. Saudi Arabia’s “#WhereInTheWorld” campaign promoted the country’s tourist spots by acknowledging that they are less familiar to travelers, using a series of images that compared these spots with better-known destinations.

As tourism stakeholders look to the future, they can take steps to ensure that they continue to delight existing travelers while also embracing new ones. Domestic and intraregional tourism remain major opportunities—catering to local tourists’ preferences while building infrastructure that makes travel more seamless within a region could help capture them. Creative collaboration among tourism stakeholders can help put lesser-known destinations on the map. Travel tides are shifting. Expertly navigating these currents could yield rich rewards.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Steffen Fuchs, Steffen Köpke, Steve Saxon, Sophia Wang, and Urs Binggeli for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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