The Rise of Domestic Tourism

Photo by Cassidy Muir

With the coronavirus pandemic causing shutdowns around the world, the global tourism industry has taken a hit. International tourism numbers tumbled 70% just within the first 8 months of 2020. 

In an attempt to revive the industry as coronavirus continues to pose a threat, the focus of marketing campaigns and target market strategies have been shifted primarily towards the phenomenon of domestic tourism. In this blog, I will take a look at a few of the ways travelers have been enjoying vacations closer to home and how destinations have successfully marketed to these domestic travelers. 

Domestic Tourism

Domestic tourism can be defined as traveling within one’s own country as opposed to traveling internationally. This includes everything from engaging in activities in one’s home city (staycation) to traveling hours away to another domestic destination be it another state or region. 

Compared to international tourism, statistics show that domestic tourism has been able to bounce back faster in 2020. For example, by July 2020, the total amount of nights spent at a hotel in the EU by domestic travelers was 22% lower than in 2019, compared to 64% lower for international travelers. 

Even before the pandemic, domestic tourism accounted for the majority of tourism spending in many countries. For instance, in the European Union, domestic tourism generated 1.8x the amount of money as inbound tourism. Comparatively, in the United States, domestic tourism accounted for 86% of the total travel expenditures in 2019.  

In line with these trends, experts agree that if destinations are able to focus on the recovery of domestic tourism, they will be able to financially recover faster than businesses that have yet to adapt to their local markets. There are a few ways countries and tourism companies have started focusing on domestic travelers from marketing campaigns to offering discounts and freebies. 

Staycations 

A staycation is one form of domestic tourism - it involves either staying at, or nearby, one’s home and participating in tourist activities. 

Staycations provide benefits to both travelers and tourism companies in these unique times. It allows people the rare opportunity to see their home from a new perspective and have experiences they otherwise may not have.  Additionally, staycations provide a reprieve for all of us who have missed traveling and ignites that familiar sense of excitement. 

By promoting your hotel, resort or attraction as a staycation, you can continue to bring in business and lower the impact of losses from cancellations or reduced bookings. Opening to the domestic and local tourism markets also allows you to build relationships within the community, which will be valuable long after we return to a new normal.  

National Travel 

Even for people who feel comfortable traveling farther from home, options are limited due to ongoing travel restrictions. Staying within one’s home country currently feels safer to many prospective tourists for a number of reasons; should you fall ill, you’re still in a somewhat familiar place and able to easily receive care. When traveling close to home, there is also the potential benefit of being able to travel in your own car and avoid coming into contact with a lot of people, hence limiting your exposure. Traveling domestically also makes it easier to return home should numbers start to surge while you’re away hence giving travelers more peace of mind.  On the other hand, if you are moving abroad, you can give yourself further peace of mind by choosing between the best international health insurance companies, this way you stay covered once you’ve made the move.

Let's take a look at a few places that have shifted their focus to domestic tourism:

New York City

The Coalition for NYC Hospitality & Tourism created a multi-step recovery plan, which started with a focus on engaging New Yorkers, but has evolved to encourage those within the NYC metropolitan area and beyond to also pay a visit to the Big Apple. Part of their reasoning stems from previous success getting locals to engage in staycations to support the local tourism industry following the 2008 recession. 

Australia

International travel is still banned in Australia, leading domestic tourism to be the only option for wanderlusting Aussies. Many companies have been running Summer promotional discounts to encourage people to travel this year as they normally would - just staying closer to home. 

These efforts have clearly proved effective with tourism numbers in certain regions, which are expected to surpass figures from previous years. One resort, Byron at Byron, shared that they are even fully booked through February. Projections for the increase in tourism are so high, in fact, that there is a shortage of industry workers in areas like Queensland and Victoria. 

Japan

Hoshino Resorts in Japan have pivoted to microtourism, advertising their resorts as a way for locals to reconnect with their area and culture. They’ve also shared their approach to making sure sanitization and safety are prioritized, hoping to put guests’ minds at ease. 

Since Japan launched their Go To Travel subsidy campaign to boost domestic tourism spending has tripled, helping with overall national economic recovery. Although a recent resurgence in coronavirus cases has led Prime Minister Yoshihide Suga to indefinitely suspended the program in areas with high covid numbers. 

Singapore

Marina Bay Sands in Singapore has introduced a “Workcation” package, encouraging people to work from one of their hotel rooms instead of their home for a change of pace and scenery. The promotion includes perks like a room service credit, in room snacks and early check-in. 

India 

International travel is still banned in India. Choice Hotels India’s CEO recently shared their recovery through the domestic market. Prior to the pandemic, their market was already largely domestic, which has greatly helped in their tourism recovery process. Staycations are a major contributor to their business right now, as well as a more recent resumption to corporate travel. A key difference is that more than ever, travellers are looking for an experience - likely due to the closure of many tourist attractions. Currently their hotels are at 25-30% occupancy, and are expected to be up to 45-50% by March. 

Takeaways

As we’ve seen in the case studies and tourism trends presented in this blog, it is sure that domestic tourism will be key in the industry’s overall recovery. Hopefully this blog will inspire you if your goal is to create a domestic tourism marketing plan for your business. 

If you’re an individual missing traveling, consider booking a staycation to support your locals and discover the beauty of your own home. 

For hotel or resort owners, the most important aspect of drawing in domestic guests is to find ways to appeal to locals with promotions and perks that you can offer to incentivize them to stay at your accommodation. Your guests won’t forget and will be more likely to return as guests in the future. 

You can learn more and begin to successfully operate in COVID times right now by following our expert advice in our Tourism and Hospitality: COVID-19 Survival Guide.

Want to strategize your next steps post-COVID, brainstorm with us.