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Understanding Domestic Tourism and Seizing its Opportunities

Published by: UNWTO, 2020

As the world’s tourism turns to domestic travel to boost the restart and recovery of the sector in times of the COVID-19 pandemic, this briefing note aims to analyse the global domestic tourism market and provide policy-makers and the tourism sector at large with examples of initiatives implemented around the world to promote domestic travel and restore confidence.

This report identifies the world’s major domestic tourism markets, analyses its main characteristics and shares the measures that are being implemented around the world to promote domestic tourism and restore confidence, as tourism restarts in the face of COVID-19.

Domestic tourism

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Domestic tourism can be described as tourism involving residents of one country traveling within their own country. It does not involve the crossing of international borders at entry points. As early recorded history provides a glimpse into ancient tourism activities, domestic tourism is in fact the first form of tourism practiced. It has been a well-established practice, happening in every country or region in the world. A strong relationship among tourism and visiting friends and relatives and religious pilgrimage has been found in countries with a long history of domestic tourism (Rogerson and Lisa 2005 ). On the contrary, mass domestic tourism has only recently emerged due to increased disposable income, introduction of labor rights associated with leisure and vacation , governmental policy about the deregulation of internal movement, and so on (Scheyvens 2007 ).

Tourism is essentially an activity engaged by human beings. The minimum necessary features that need to exist for it to be...

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Pierret, F. 2011 Some Points on Domestic Tourism. Madrid: World Tourism Organization.

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Rogerson, C., and Z. Lisa 2005 “Sho’t Left”: Changing Domestic Tourism in South Africa. Urban Forum 16(2-3): 88-111.

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Telfer, D., and G. Wall 2000 Strengthening Backward Economic Linkages: Local Food Purchasing by Three Indonesian Hotels. Tourism Geographies 2:421-447.

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Tourism, Leisure, and Event Planning School of Human Movement, Sports, and Leisure Studies, 1001 E Wooster Street, 43403, Bowling Green, USA

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School of Hospitality Leadership, University of Wisconsin-Stout, Menomonie, Wisconsin, USA

Jafar Jafari

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, Hong Kong SAR

Honggen Xiao

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Choo, H. (2015). Domestic tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_255-1

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DOI : https://doi.org/10.1007/978-3-319-01669-6_255-1

Received : 01 May 2015

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DOI: https://doi.org/10.1007/978-3-319-01669-6_255-2

DOI: https://doi.org/10.1007/978-3-319-01669-6_255-1

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Impact of domestic tourism on economy under COVID-19: The perspective of tourism satellite accounts

Doris chenguang wu.

a School of Business, Sun Yat-sen University, Xinguang West road, Guangzhou, 510275, China

b Essex Business School, University of Essex, Southend-on-Sea, SS1 1LW, UK

Jason Li Chen

c School of Hospitality and Tourism Management, University of Surrey, Guildford, GU2 7XH, UK

The unprecedented COVID-19 pandemic reversed the ongoing upsurge in the global tourism industry. Yet compared with still-stagnant international tourism, domestic tourism has shown signs of recovery. This study takes Guangdong Province, China as a case for regional domestic tourism and adopts the tourism satellite account (TSA) method to assess domestic tourism's status. A pre- and post-pandemic comparison is conducted to map the impacts of the COVID-19 outbreak on domestic tourism's economic contribution. The TSA results show that the direct contribution of domestic tourism to Guangdong's economy fell from 2.53% to 1.20% across these timeframes. Findings also reveal changes in visitor composition by places of origin and in industries' proportional contributions to tourism.

1. Introduction

Despite being vulnerable to myriad environmental, political, and socio-economic factors ( Sigala, 2020 ), tourism has enjoyed a decades-long upsurge worldwide. This sector has also displayed strong resilience against an array of crises, including the severe acute respiratory syndrome outbreak in 2003 and the global economic crisis in 2008 ( Gossling, Scott, & Hall, 2021 ; Pham, Dwyer, Su, & Ngo, 2021 ). Yet the unprecedented COVID-19 outbreak, in conjunction with responsive governmental policies of mobility bans, lockdowns, and social distancing worldwide, has profoundly obstructed tourism ( Sigala, 2020 ). The United Nations World Tourism Organization ( UNWTO, 2021 ) reported that global international tourist arrivals have fallen by 74%—US$1.3 trillion lost in international tourism receipts. International tourism has effectively reverted to the 1990s as a result.

As international tourism nearly stopped entirely during the COVID-19 pandemic, the domestic tourism market presented a target for recovery of both the tourism sector and the overall economy. A randomized experiment by Volgger, Taplin, and Aebli (2021) revealed that an increase in COVID-19 cases weakened tourists' hotel booking intentions. Results of an online survey highlighted safety and security as key factors affecting individuals' travel decisions ( Moya Calderón, Chavarría Esquivel, Arrieta García, & Lozano, 2021 ). People have thus tended to travel shorter distances amid COVID-19 versus before. This propensity has led to encouraging signs in domestic tourism markets ( UNWTO, 2021 ) as the pandemic comes under local control and travel bans are lifted in some countries and regions. It is therefore sensible to train attention on expanding domestic tourism demand and promoting the conversion of outbound visitors into domestic ones. These aims also align with the idea of “dual circulating” economic patterns proposed by the Chinese government.

The premise of “dual circulation” is that domestic and foreign markets boost one another, with the domestic market occupying a dominant position. Cultivating domestic demand is thought to strengthen the effect of final consumption on national GDP. The notion of dual circulation originated from a thorough investigation of China's developmental context, including the COVID-19 pandemic. Given this idea, coupled with the fact that tourism—especially domestic tourism—plays a core role in stimulating consumption and economic recovery, we argue that a precise measurement of the economic impact of domestic tourism in the COVID-19 era is urgently needed.

The tourism satellite account (TSA) is consistent with the System of National Accounts (SNA) and several other international statistical frameworks. TSA is also an internationally approved method for measuring tourism's direct contributions to the economy; its application is not limited to national or sub-national tourism impact measurement. With TSA as a foundation, interindustry linkage analysis ( Beynon, Jones, & Munday, 2009 ), computable general equilibrium (CGE) modelling ( Pratt, 2015 ), social accounting matrix modelling ( Gul & Cagatay, 2015 ), and tourism forecasting ( Ahlert, 2008 ) can each be reinforced. Direct or extensional use of TSA additionally facilitates analyses of the impacts of specific tourism activities ( Beynon, Jones, Munday, & Roche, 2018 ; Diakomihalis, 2008 ; Diakomihalis & Lagos, 2011 ; Jones & Li, 2015 ; Sauer & Repik, 2014 ; Zhang, 2014 ) as well as tourism's ecological effects ( Collins, Jones, & Munday, 2009 ; Dwyer, Forsyth, Spurr, & Hoque, 2010 ; Jones, 2013 ; Li, Li, Tang, & Wang, 2019 ; Meng, Xu, Hu, Zhou, & Wang, 2017 ; Munday, Turner, & Jones, 2013 ; Perch-Nielsen, Sesartic, & Stucki, 2010 ; Ragab & Meis, 2016 ). It remains necessary to assess the impact of the COVID-19 outbreak on the tourism industry, and TSA offers a suitable approach.

In the present study, we seek to measure the economic impact of domestic tourism amid the COVID-19 pandemic by establishing a TSA for Guangdong Province, China. This work is guided by three objectives: 1) to compile TSAs for Guangdong for 2019 and 2020, respectively; 2) to examine the structure of Guangdong's tourism industry and how the industry has evolved after the outbreak by comparing the two TSAs; and 3) to calibrate the impact of COVID-19 on Guangdong's tourism industry and, in turn, on the economy based on the established TSAs. The economic impact of the pandemic on Guangdong's domestic tourism has two facets, namely changes in scale (i.e., the plunge in domestic tourist arrivals, tourism consumption, and tourism's contribution rates to the overall economy) and structure (e.g., the composition of visitors, expenditure, output, and direct value added). Addressing these aims can generate a comprehensive understanding of the status of domestic tourism in Guangdong. The resultant implications are practically and theoretically helpful for rebooting the tourism sector given that domestic tourism has recovered earlier and more readily than international tourism.

The above-mentioned objectives are realized through three steps. First, we use the TSA method to estimate and organize statistical data on tourism demand for a range of goods and services along with the output of these goods and services from various industries. This process generates a useful overview of the scale and composition of regional domestic tourism. Second, we integrate data from the demand side and supply side and identify their intersections, thus discerning the direct contributions of domestic tourism activities. As such, we develop a TSA for Guangdong using a “bottom-up” approach, which has superior accuracy ( Jones, Munday, & Roberts, 2009 ). Third, we compare the regional TSAs of 2019 and 2020 to identify shifts in the scale and structure of domestic tourism in Guangdong.

The rest of this paper is organized as follows. Section 2 introduces the TSA method and reviews its applications in evaluating the tourism-related consequences of COVID-19. Methodological details are provided in Section 3 . Section 4 presents our results and analyses of TSAs for Guangdong. Section 5 concludes this study and suggests future research directions.

2. Literature review

2.1. tsa and its applications.

Tourism is not an industry with distinct boundaries but rather represents a “sector” comprising multiple industries with complicated interactions ( Meng et al., 2017 ; Odunga, Manyara, & Yobesia, 2020 ). This complexity renders it challenging to measure tourism's economic impact via SNA, especially given tourists' characteristics which differentiate them from other consumers ( OECD et al., 2017 . TSA has emerged to address this issue and has become an internationally approved and standard means of tourism measurement ( Diakomihalis, 2008 ; Frechtling, 2010 ; Frent, 2018 ). As Frechtling (2010) noted, a complete TSA describes tourism's direct contribution to an economy, tourism consumption, tourism industry production, and other non-monetary information about the sector. TSA hence offers rich insight into all aspects of demand related to tourism, the interface of said demand with tourism industry supply, and the interaction of said supply with other industries. This method enables practitioners to separate the impacts of tourism from the overall economy. TSA compilation is consistent with other statistical frameworks, including SNA and International Recommendations for Tourism Statistics ( IRTS ). This approach has thus been extensively and successfully applied.

TSA measurement has been carried out at both national and regional levels. Nationally, TSA has been implemented in countries including the United Kingdom ( Bryan, Jones, & Munday, 2006 ), India ( Munjal, 2013 ), Iceland ( Frent, 2018 ), Ireland ( Kenneally & Jakee, 2012 ), Rwanda ( Odunga et al., 2020 ), and elsewhere. In developing a TSA for Tanzania, Sharma and Olsen (2005) compensated for a lack of statistical resources to adhere to UNWTO's bottom-up method, which was deemed more accurate than the “top-down” method, to provide guidance for developing countries. Using TSAs from countries whose TSA data were available, Figini and Patuelli (2021) compared the tourism share in GDP among European Union economies and discovered a high degree of heterogeneity. TSA has also been adopted on a sub-national or regional basis, such as in China's Guangdong Province ( Wu, Liu, Song, Liu, & Fu, 2019 ), Caribbean islands ( McArthur, 2015 ; Steenge & Van De Steeg, 2010 ), an Australian coastal town ( Williams, 2016 ), and several federal states in Austria ( Smeral, 2015 ).

With its descriptive nature ( OECD et al., 2017 ) and the ability to separate tourism from industries in national accounts ( Meng et al., 2017 ), TSA can promote further research. It serves as a framework for impact measurement and supports tourism economic modelling, policy analysis, tourism growth analysis, and other analytic procedures ( Bryan et al., 2006 ; Diakomihalis, 2008 ). For instance, improvements in regional tourism data and sub-national TSAs have enabled tourism interindustry linkage analysis ( Beynon et al., 2009 ). Xu, Jones, and Munday (2020) used TSA to identify variation in the attributes of regionally and externally owned tourism sectors. Hadjikakou, Chenoweth, Miller, Druckman, and Li (2014) focused on disparities in numerous tourism market segments' contributions based on TSA data. Their findings provided insight to enhance tourism contributions in Cyprus. Tourism demand data in TSAs can also be modelled using a CGE model, which is a routine practice as mentioned by Pratt (2015) ; he examined the economic impact of tourism in Small Island Developing States using the abovementioned method. Gul and Cagatay (2015) combined TSA with a social accounting matrix to evaluate the impacts of demand-driven shocks on the Turkish tourism industry. Ahlert (2008) integrated TSAs with a macroeconomic forecasting and simulation model to more precisely depict the impacts of future inbound tourism on GDP and employment in Germany. Others have leveraged TSA to address leakages in international tourism receipts ( Unluonen, Kiliclar, & Yueksel, 2011 ).

The TSA method can also unearth the contributions of specific tourism activities. For instance, scholars have estimated the contributions of Greek yachting and coastal leisure shipping to the local economy ( Diakomihalis, 2008 ; Diakomihalis & Lagos, 2011 ). Researchers have further investigated the contributions of landmark historical sites' heritage assets ( Beynon et al., 2018 ), meetings and conferences ( Jones & Li, 2015 ; Zhang, 2014 ), wine tourism ( Sauer & Repik, 2014 ), and additional topics. A number of studies have measured the ecological consequences of tourism (e.g., greenhouse gas emissions, energy consumption, and water consumption). In such cases, TSA is often used for boundary setting (i.e., determining whether a proportion of ecological impacts is due to tourism consumption) ( Dwyer et al., 2010 ; Jones, 2013 ; Li et al., 2019 ; Meng et al., 2017 ; Perch-Nielsen et al., 2010 ; Ragab & Meis, 2016 ). In two studies concerning carbon emissions, an environmentally extended input–output model ( Sun, 2014 ) and an environmental input–output framework ( Munday et al., 2013 ) were applied along with TSA-based tourism consumption data to delineate the environmental consequences of various types of tourism consumption. In exploring the environmental externalities of mega sport events, Collins et al. (2009) adopted an environmental input–output framework refined by satellite accounts.

The TSA framework presents an ideal approach for measuring the economic impact of tourism. Yet among the bevy of studies regarding COVID-19's effects on tourism, few have assumed a TSA perspective to contemplate either the pandemic's impact on tourism or tourism's impact on the economy in the pandemic era. The present study endeavors to bridge this gap by uncovering how the economic role of tourism has changed after the outbreak so as to detect COVID-19's economic impact on the tourism sector.

2.2. Economic impact of tourism during the COVID-19 pandemic

The sudden outbreak of COVID-19 and consequent travel restrictions, quarantine policies, and social distancing have halted almost all tourism activities ( Gossling et al., 2021 ). Scholars have used a variety of modelling approaches to estimate the pandemic's economic impact on tourism. These efforts have provided meaningful insight. To map the stochastic characteristics of the length and severity of epidemic outbreaks, Yang, Zhang, and Chen (2020) applied a dynamic stochastic general equilibrium model to examine the economic effects of infectious diseases on tourism. Two parallel studies later pertained to inbound tourism in Australia. By incorporating the full TSA into CGE modelling, Pham et al. (2021) projected short-term epidemic impacts on Australian inbound tourism in terms of tourism's direct contributions and its indirect effects via interindustry linkages. Ghosh (2021) leveraged a novel panel model to determine the long-term impacts of multiple factors on Australian inbound tourism. This model was also augmented to address panel heterogeneity and cross-sectional dependence, reinforcing the study's robustness. For Greece, whose economy heavily depends on international travel income, a multisectoral model framework using data from the Supply and Use Table was employed to estimate the multiplier effects of tourism on GDP in a COVID-19 context ( Mariolis, Rodousakis, & Soklis, 2021 ). Slovakia is a unique nation featuring spa tourism; the Box–Jenkins method was used to forecast spa facility performance ( Senkova et al., 2021 ). The forecast results differed greatly from reality and thus verified the pandemic's significant impact on this branch of tourism.

A study in Japan described the influence of COVID-19 in terms of tourist consumption, carbon footprint, and employment using a lifecycle approach and input–output tables ( Kitamura, Karkour, Ichisugi, & Itsubo, 2020 ). Regional research was carried out in Andalusia using a social accounting matrix linear model ( Cardenete, Delgado, & Villegas, 2021 ). Additionally, a series of methods were adopted to study how the pandemic has influenced Macao; examples included the autoregressive integrated moving average model, correlation analysis, and regression. Findings revealed the effects of COVID-19 on Macao's tourism sector, the impact of tourism on Macao's economy, and the local tourism industry's dependence on gambling as a revenue source ( Lim & To, 2021 ).

The body of knowledge on tourism-related economic impacts stands to be updated since the COVID-19 outbreak. The most appropriate economic methods vary situationally. TSA, as a statistical approach, should be further applied to generate methodological and theoretical insights. This study aims to expand TSA studies in the pandemic era.

3. Methodology

3.1. case selection.

The sudden outbreak of COVID-19 in early 2020 resulted in lockdowns and bans on gatherings across China. These measures were intended to curb transmission of the virus while also halting tourism activities. Through the collective effort of Chinese people, the pandemic came under control in March 2020, after which work and production gradually resumed. The domestic tourism sector also entered a recovery phase.

To determine how the pandemic has affected domestic tourism, and to estimate how much the sector's economic contribution has diminished, we choose Guangdong Province, China as the focal destination. This location has been selected as the study case for several reasons ( DCTGD, 2021 ). First, tourism is of great scale and importance in Guangdong Province; the province's total tourism earnings and foreign exchange earnings from international tourism have ranked first in the country for several successive years. Second, the tourism industry is one of the province's primary growth sources. Third, domestic tourism in Guangdong has shown strong signs of recovery. According to statistical data from the Department of Culture and Tourism of Guangdong Province, the number of inbound tourists arriving in Guangdong declined by 87.45% in 2020 compared with 2019, suggesting that international tourism remained stagnant. Therefore, domestic tourism in Guangdong is taken as the research setting.

3.2. Compilation of TSA

To maintain consistency with the definitions in IRTS ( UNDESA, 2008 ), we use same-day visitors to denote excursionists and tourists to denote overnight visitors. Greek numbers are used to index tables that constitute the TSA; Arabic numbers are used to index the tables shown in this study.

The conceptual framework of TSA was initially constructed in 2000 by the United Nations Statistics Division, the Statistical Office of the European Communities (Eurostat), the Organization for Economic Co-operation and Development (OECD), and UNWTO. The framework was later updated in 2008, resulting in the publication of Tourism Satellite Account: Recommended Methodological Framework 2008 ( OECD et al., 2017 ). TSA was built to provide a holistic view of all aspects of visitor demand, the proportion of the supply of all goods and services that meet said demand, and how said supply interacts with other economic activities. To accomplish these goals, an array of six inter-connected tables was established to provide TSA macroeconomic aggregates, with the sixth table being the core of TSA ( Frechtling, 2010 ). TSA Tables I–III concern visitors' tourism expenditure as reflected in different forms of tourism on different goods and services: Table I focuses on inbound tourism, Table II focuses on domestic tourism, and Table III focuses on outbound tourism. TSA Table IV records internal tourism consumption by goods and services, combining inbound expenditure from Table I and domestic expenditure from Table II with other components of tourism consumption. TSA Table V indicates the tourism production of tourism industries and other industries. TSA Table VI integrates supply (Table V) and tourism consumption (Table IV), identifying the total output and direct value added contributed by tourism activities.

Demand-side data for these TSA tables are mainly derived from the Visitor Survey of Guangdong Province for 2019 and 2020. The Department of Culture and Tourism of Guangdong Province, China conducts this survey regularly. Supply-side data are generally obtained from Guangdong Statistical Yearbook 2020 and 2021, Guangdong Input–Output Table 2017, and Guangdong Economic Census Yearbook 2018. Because the Input–Output survey and economic census are performed in China on a five-year basis, we only borrow the proportions in 2017 and 2018 to infer and approximate values for 2019 and 2020 given that the economic structure does not change significantly within a few years ( Bryan et al., 2006 ; Jones, Munday, & Roberts, 2003 ; Munjal, 2013 ).

Considering our research purpose, we adopt a flexible compilation strategy which does not require assembling all six TSA tables. To measure the impact of COVID-19 on domestic tourism in Guangdong, we construct a regional TSA for the province. We specifically compile tourism expenditure in Guangdong, based on international visitors and Chinese visitors living outside Guangdong, in TSA Table I; all visitors are divided into same-day visitors and tourists. For TSA Table II, we compile the tourism expenditure by Guangdong residents. TSA Table III, which records the expenditure of Guangdong residents travelling outside Guangdong, is omitted. TSA Table IV is a summation of Tables I and II and tourism social transfers in kind, without vacation homes on own account or other composition considered. For TSA Table V, we compile total output and direct value added for each tourism-related industry. TSA Table VI is a summation of Tables IV and V to bridge supply and demand: regional total consumption and its proportion to regional total output for each tourism product are first computed and then used to estimate tourism-related output for each product in each industry. The sum of all tourism-related output per industry is next divided by the total output to obtain a ratio capturing tourism's contribution. Then, by multiplying the ratio by the total value added in each industry, the direct value added attributable to tourism is obtained. Adding all direct value added attributable to tourism across industries and dividing the sum by the regional GDP indicates tourism's contribution to the overall regional economy.

4. Case study of Guangdong province

4.1. an overview of tourism in guangdong during covid-19.

As a result of the COVID-19 outbreak and ensuing health restrictions, pervasive fear, and decreased household income, tourism activity around the globe has witnessed a steep decline. Guangdong Statistics Bureau and China's National Bureau of Statistics have documented that the pandemic has severely influenced domestic tourism in both the province and the country. As depicted in Fig. 1 , Fig. 2 , before the outbreak, domestic tourism underwent a swift and steady climb. The unexpected shock of COVID-19 then placed tourism into a marked retrogression. Parallels in these two figures reflect the consistency in regional and national data and verify the generalizability of this study to some extent. Nationally, the number of domestic visitors decreased by 52.06% and total domestic tourism expenditure decreased by 61.07% in 2020 versus 2019. In Guangdong Province, the number of tourists and domestic tourism earnings dropped by 54.28% and 67.04%, respectively. The results in Section 4.3 compare tourism contribution rates in 2019 and 2020 to provide a more precise estimate of the degree to which COVID-19 ravaged domestic tourism.

Number of domestic visitors and total expenditure nationwide.

Number of domestic tourists and tourism earnings in Guangdong.

4.2. Composition of tourism expenditure

Data from two sources—a sampling survey of visitors in Guangdong Province conducted by the Department of Culture and Tourism of Guangdong Province and accommodation facility data provided by Guangdong Statistics Bureau—are referenced here. Domestic visitors in Guangdong can be divided into two groups: those from Guangdong and those from other provinces. The number of visitors hailing from Guangdong is estimated to be 394.17 million, composing 66.19% of all domestic visitors in 2019. For 2020, the number shrinks to 202.89 million to equal a proportion of 74.13% ( Fig. 3 ). The regional expenditure of visitors from Guangdong is RMB 535.05 billion and RMB 227.40 billion, respectively ( Fig. 4 ). Inter-provincial tourism is found to decrease by a higher ratio than intra-provincial tourism; this phenomenon offers additional evidence for people's preference for shorter-distance travel in light of the pandemic.

Estimated visitor arrivals by visitors' places of origin.

Estimated tourism total expenditure by visitors' places of origin.

For 2019 and 2020, respectively, the number of tourists staying at hospitality facilities across the province is 494.10 million and 225.91 million ( Fig. 5 ). Tourists' average length of stay is 2.61 days and 2.16 days, respectively. In 2019, 82.97% of domestic visitors stayed overnight. The average expenditure in a day is RMB 531.59 and RMB 780.97, respectively, for same-day visitors and tourists. Tourists' estimated expenditure is RMB 1,007.13 billion, accounting for 94.92% of all expenditure ( Fig. 6 ). For 2020, tourists represent 82.54% of all visitors to Guangdong ( Fig. 5 ). Average expenditure in a day is RMB 499.81 for same-day visitors and RMB 767.66 for tourists. Tourists' estimated expenditure is RMB 374.59 billion—94.01% of overall expenditure ( Fig. 6 ). Although the ratio of same-day visitors to tourists does not vary substantially, tourists' length of stay declines significantly, as does the per-day expenditure for all visitors. In the absence of restrictions and given the ability to travel, tourists may have opted against staying longer and spending more due to pronounced uncertainty and weaker purchasing power.

Estimated visitor arrivals by length of stay.

Estimated tourism total expenditure by length of stay.

The sampling survey also provides the proportion of various goods and services visitors consume, from which we can extract the composition of domestic visitors' tourism expenditure ( Table 1 and Fig. 7 ). The types of goods and services with the greatest proportions in both years are accommodation services, food and beverage, and shopping, followed by passenger transport and transport equipment rental services. The proportion of expenditure on shopping is shown to decline significantly between 2019 and 2020. The proportion of expenditure on food and beverage increases; the expenditure on accommodation services and passenger transport and transport rental decreases overall by a small margin, confirming their rigidity. However, when solely considering expenditure on air and road passenger transport services, visitors' propensity to use more private transport modes becomes clear.

Composition of domestic visitors' tourism expenditure.

Composition of expenditure by types of goods and services in 2019 (upper) and 2020.

4.3. Direct value added from domestic tourism and its composition

As displayed in Table 2 , for 2019, the direct value added from domestic tourism is RMB 272.75 billion. This figure accounts for 2.53% of the province's regional GDP and 4.56% of the added value of tertiary industry. In 2020, the direct value added from tourism falls to RMB 132.40 billion, only totaling 1.20% of total regional GDP and 2.12% of the added value of tertiary industry in Guangdong. These patterns reflect the impacts of COVID-19 on industries engaged in domestic tourism and substantiate the tourism industry's sensitivity to external crises. Tourism direct value added from tourism-related industries is RMB 261.34 billion for 2019, equal to 95.81% of all tourism direct value added. The corresponding number and proportion are RMB 123.18 billion and 93.03% in 2020. The composition of tourism direct value added is summarized in Table 3 and Fig. 8 .

Direct value added from domestic tourism and regional GDP.

Composition of tourism direct value added.

Composition of tourism direct value added in 2019 (left) and 2020.

To further clarify various industries' contributions to tourism direct value added, tourism-related value added in each industry is estimated and used to investigate the composition of industry-specific tourism direct value added as elaborated in Table 4 and Fig. 9 . Industries with the three highest contribution rates are food and beverage, accommodation for tourists, and road passenger transport in both years. It is worth noting that the proportions of contributions to direct value added by ecological conservation and the scenic spot administration industry double during this time frame. This circumstance partly mirrors visitors' preferences for natural and ecological destinations in the same period.

Composition of tourism direct value added by industry.

Composition of tourism direct value added by industry in 2019 (upper) and 2020.

5. Conclusions and future directions

In this study, we adopt the TSA framework to measure the impact of domestic tourism on Guangdong's regional economy during the COVID-19 pandemic. TSAs for 2019 and 2020 are compiled and compared. These TSAs comprise data on tourism expenditure, representing the demand side; tourism social transfers in kind and tourism output across relevant industries, representing the supply side; and the interface of demand and supply to measure tourism's contribution to the regional economy. The results inform several conclusions regarding the province's domestic tourism sector.

The COVID-19 pandemic is found to have negative and substantial effects on tourism, with the number of visitors and tourism earnings decreasing by more than half. These declines can be attributed to visitors' risk perceptions ( Donaire, Gali, & Camprubi, 2021 ; Dryhurst et al., 2020 ; Kozak, Crotts, & Law, 2007 ; Li, Zhang, Liu, Kozak, & Wen, 2020 ; Williams, Chen, Li, & Baláž, 2022 ) as well as travel bans. Yet the proportion of visits from Guangdong residents appears to increase despite an overall decrease in the total number of visitors. The pandemic has led people to favor travel that is closer to home ( Bratic et al., 2021 ; Donaire et al., 2021 ; Hall, Scott, & Gössling, 2020 ; Qiu, Park, Li, & Song, 2020 ; Renaud, 2020 ), spurring the earlier recovery of domestic tourism ( UNWTO, 2021 ) and provincial tourism over international tourism. The structure of visitors and tourism expenditure (i.e., the proportions of the number and the expenditure of same-day visitors to tourists) has barely changed after the onset of the pandemic. However, the average stay has significantly shortened, and the average daily expenditure for all visitors has declined. Donaire et al. (2021) pointed out that shorter lengths of stay may be due to visitors' efforts to reduce the risk of infection along with lower purchasing power. The documented decrease in average daily expenditure supports the latter point.

From a product perspective, domestic visitors have spent the most on accommodation services, food and beverage, shopping, passenger transport, and transport equipment rental services. The drop in the proportion of shopping further exemplifies that visitors have tended to be more conservative in their tourism expenditure ( Bratic et al., 2021 ) due to reduced purchasing power and consumption patterns characterized by an unprecedented circumstance and general uncertainty ( Li et al., 2020 ). However, the proportional increase in food and beverage expenditure and the meagre decrease in accommodation- and passenger transport-related expenditure highlight these three aspects as concrete demand sources during a trip. Although the expenditure proportion of transport has not changed much overall, two of its components—road and air transport—warrant attention. Flight reductions tied to civil aviation policies and infection risk have caused visitors to shift their travel preferences: they have turned to road trips rather than air travel to reduce interpersonal touch ( Donaire et al., 2021 ).

Despite the pandemic, both Guangdong's regional GDP and the province's value added of tertiary industry are found to increase slightly in 2020 over 2019. However, the direct value added from tourism falls by about half, as does the tourism contribution rate. These outcomes corroborate that tourism, as an economic sector, has been arguably hit the worst by COVID-19 ( Munawar, Khan, Ullah, Kouzani, & Mahmud, 2021 ; Nicola et al., 2020 ). The evaluation of tourism direct value added in terms of employee compensation, net taxes on production, depreciation of fixed assets, and operating surplus is nearly identical across the two years. However, some proportions of industrial contributions to tourism direct value added have changed: the contributions from accommodation, non-tourism industries, and ecological conservation and scenic spot administration have increased by 6.98%, 2.78%, and 1.02%, respectively. Contributions of air passenger transport, food and beverage services, the retail industry, and railway passenger transport respectively have decreased by 4.05%, 3.58%, 3.31%, and 1.82%. These changes in proportions point to a structural shift in the tourism sector amid the pandemic. In particular, the proportion of value added by ecological conservation and the scenic spot administration industry has doubled. This distinction echoes previous studies showing that tourists tend to favor ecological tourism ( Li, Ding, Zheng, & Sui, 2021 ) or natural areas ( Donaire et al., 2021 ) and are apt to avoid urban destinations and crowded spaces. Hall et al. (2020) also pointed out visitors' preferences for less congested destinations.

As the present study demonstrates, perceived risk is a major travel impediment ( Dryhurst et al., 2020 ). Safety and health represent key concerns when tourists plan trips ( Donaire et al., 2021 ; Higgins-Desbiolles, 2020 ; Li et al., 2021 ). These considerations carry valuable implications for destination marketing organizations (DMOs) and tourism enterprises. For instance, destinations should be motivated to strengthen hygiene measures ( Li et al., 2021 ) and enhance pandemic-related informational transparency. Businesses such as hotels have been forced to implement stricter hygiene management ( Hao, Xiao, & Chon, 2020 ) and to adopt mechanical and digital service systems to reduce human interaction ( Bae & Chang, 2021 ). Proximity to home is another factor influencing visitors' travel behavior ( Donaire et al., 2021 ). The marketing efforts of DMOs and tourism enterprises should therefore concentrate on source markets proximal to the focal destination or domestic market. At the same time, a decline in tourism activities helps to alleviate the negative environmental and social effects of tourism ( Bratic et al., 2021 ). Juvan and Dolnicar (2016) noted the persistence of non-sustainable tourism behavior before the pandemic. The outbreak has afforded DMOs and enterprises an opportunity to reshape visitors' behavior.

The contributions of this study are threefold. First, to the best of our knowledge, this research represents a pioneering attempt to apply the TSA framework to investigate how the COVID-19 pandemic has affected tourism. Our established TSAs offer a detailed view of domestic tourism in Guangdong Province, including its scale, structure, and pandemic-induced changes. Second, with a focus on a regional domestic tourism market, this analysis is theoretically meaningful for regions and countries seeking to restore their tourism industries. Third, our work builds a foundation for subsequent studies of tourism's economic impact during the pandemic. For example, researchers could calculate direct and induced contributions throughout this period in history.

This study, as with any other, has limitations. First, the Input–Output Table and Economic Census Yearbook are updated on a five-year basis. No considerable structural change has occurred in the economy; as such, we acquire proportions for the outputs of various goods and services across industries using the data at hand. Tourism data availability is a common problem when compiling TSAs ( Bryan et al., 2006 ; Jones et al., 2003 ; Jones & Munday, 2010 ), and plausible proportions are often used ( Munjal, 2013 ). Further verification based on more recent data will be required. Second, TSAs do not measure indirect or induced effects of tourism activities; other methods should be employed to discern overall impacts. Third, this study creates a regional TSA for Guangdong, China. TSAs from other countries or regions under the pandemic remain necessary.

Funding source

This work was supported by Guangdong Basic and Applied Basic Research Foundation (2020B1515020031).

Biographies

Doris Chenguang Wu, Professor, School of Business, Sun Yat-sen University. Research interests: tourism big data analytics and forecasting.

Chenyu Cao, PhD candidate, School of Business, Sun Yat-sen University. Research interests: tourism big data analytics.

Wei Liu , Lecturer, Essex Business School, University of Essex. Research interests: operations management in tourism, hospitality and events.

Jason Li Chen , Senior Lecturer, School of Hospitality and Tourism Management, University of Surrey. Research interests: tourism economics and tourist behavior.

Editor: Dr. Kirilova Ksenia

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Domestic tourism is on the rise – here’s how hoteliers can capitalise

Giles Fuchs

Hoteliers should note the changing tastes and preferences of domestic travellers. Namely, they are now putting a premium on local immersion, social responsibility, and sustainability. And so, in order to benefit from the renewed growth of this kind of tourism, hotels can highlight these aspects, while making a concerted effort to appeal to younger customers, who are currently more likely to go overseas for their holidays.

Local immersion

Utilise your surroundings and conditions to the best of your ability. The British weather can be tempestuous at best and a recent report didn’t help to dispel this view, recording that it has been the worst British summer on record in 100 years. As hoteliers, we are experts in entertaining guests no matter the weather and we must put those skills to good, to end our rural communities’ reliance on the sun.  For instance, an activity that isn’t weather- dependent to partake in is one of Burgh Island’s regular murder mystery weekends, while events such as the Bigbury Net Zero environmentalist group ‘island assembly’ — hosted by our hotel — have also helped to bring new custom to the community in recent years.

One way to offer these kinds of local experiences to guests is to partner with the community: its businesses and its people. For instance, hoteliers can aim to source ingredients locally. This aligns with guests’ culinary tastes, and it also helps hotels build robust connections with local businesses.

Further, hotels can reach out to local artisanal producers and distilleries to offer tours, tasting courses, and other gastronomical experiences to their guests. At Burgh, we are proud to source 80% of our kitchen ingredients from within a 30-mile radius of our hotel – a practice that lets us offer guests the best of Devon’s local produce.

The same applies to cultural and heritage activities. Hotels can partner with local guides, museums, or galleries to provide walking tours and similar excursions. Unique regional experiences are very much in vogue when it comes to domestic tourism, and with the right local partnerships the hotel trade can reap the benefits.

For one, hotels, however grand, cannot hold themselves aloof from the local community. This is not just a social responsibility, but one that reaps commercial benefits. Increasingly, tourists want to be fully engaged in their holiday destinations. According to a recent survey by the hospitality sector observer Mabrian, tourists now rank immersion in the local area almost as highly as more conventional holiday activities like poolside lounging. [2] But, at Burgh, we understand the role our local community plays in shaping the island into a sought-after destination. We are committed to ensuring that they remain an integral part of our vision. For instance, we welcome those who are not guests at our establishment to join us for our daily cream tea, a concoction of yours truly. By actively engaging with locals and providing communal spaces and events for all to come together, we hope to preserve Bigbury-on-Sea’s tight-knit community, while providing all the benefits of a bustling tourism industry.

Light-touch travel

Tourists are also becoming more concerned about their environmental impact. They want their vacations to be as carbon neutral as possible, and are concerned about the effects of possible ‘overtourism’ on the places that they are visiting – when polled, half of all tourists would be willing to pay higher costs for a more sustainable holiday. [3] To thrive amidst the revival of domestic travel, hotels should aim to answer these concerns.

For one, hoteliers can take steps to show guests that sustainability is important to them, and is embedded in the day-to-day running of their establishments.

At Burgh Island, we have made a conscious effort to do this, building solar panels on our disused tennis courts. We also ensure that all recyclable waste is in fact recycled rather than simply thrown away and are always looking for ways to minimise our water and energy use while maintaining the same standards of service that our guests expect. All lights in our hotel use energy-efficient lightbulbs, and our outdoor lights are equipped with timers to prevent unnecessary use.

Hotels can also take steps to reduce the possible negative side-effects of tourism on local communities. Procuring from local providers is an excellent way to do this, making sure that the community shares fully in the financial benefits of tourism in the area.

In fact, hotels that cater mainly to the domestic market are uniquely capable of meeting these concerns about overtourism. They are often small and boutique, and so do not dominate their local areas. For example, Burgh Island is tucked away on a tidal island in rural Devon and has a capacity of only 25 rooms. Hotels like these can offer guests a relaxing getaway that does not crowd out the local community.

(Really) getting away from it all

Another area of focus for hoteliers looking to attract domestic custom is the youth market. McKinsey’s recent report showed that younger guests take an equal number of domestic and foreign trips – despite, on average, having smaller disposable incomes than older travellers. There is clearly a marked consumer preference at work here that hoteliers ought to address.

But nothing about this is inevitable. The British hotel sector is demonstrably able to attract younger guests. This has chiefly been shown by the growth of ‘staycations’ over the last decade or so – something that was driven overwhelmingly by millennial holidayers.

For younger tourists, the main virtue of this kind of a staycation is its potential as a real detox, away from both the cares of ordinary life, as well as the din and overcrowding that is often found in more traditional holiday destinations. Therefore, the sector should lean into its advantages on this front in order to attract a younger clientele, offering a relaxed and tranquil home away from home.

Domestic tourists now want trips that are sustainable, relaxed, socially responsible, and immersive in the local area. As the sector grows anew, hoteliers should adapt their services and facilities in order to benefit fully.

[1] https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-the-future-of-travel

[2] https://mabrian.com/blog/evolving-traveller-behaviour-the-rise-of-experiential-travelling/

[3] https://www.euronews.com/my-europe/2023/06/27/50-of-tourists-want-sustainable-holidays-despite-higher-costs-bookingcom#:~:text=A%20Booking.com%20survey%20found,encounter%20obstacles%20in%20this%20process

Owner, Burgh Island Hotel

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UNWTO Highlights Potential of Domestic Tourism to Help Drive Economic Recovery in Destinations Worldwide

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• 14 Sep 2020

As restrictions on travel begin to ease globally, destinations around the world are focusing on growing domestic tourism, with many offering incentives to encourage people to explore their own countries. According to the World Tourism Organization (UNWTO), with domestic tourism set to return faster than international travel, this represents an opportunity for both developed and developing countries to recover from the social and economic impacts of the COVID-19 pandemic.

Recognizing the importance of domestic tourism, the United Nations specialized agency has released the third of its Tourism and COVID-19 Briefing Notes, -Understanding Domestic Tourism and Seizing its Opportunities.- UNWTO data shows that in 2018, around 9 billion domestic tourism trips were made worldwide – six times the number of international tourist arrivals (1.4 billion in 2018). The publication identifies ways in which destinations around the world are taking proactive steps to grow domestic tourism , from offering bonus holidays for workers to providing vouchers and other incentives to people travelling in their own countries.

Domestic tourism to drive recovery

UNWTO Secretary-General Zurab Pololikashvili said: “UNWTO expects domestic tourism to return faster and stronger than international travel. Given the size of domestic tourism, this will help many destinations recover from the economic impacts of the pandemic, while at the same time safeguarding jobs, protecting livelihoods and allowing the social benefits tourism offers to also return.”

UNWTO expects domestic tourism to return faster and stronger than international travel

The briefing note also shows that, in most destinations, domestic tourism generates higher revenues than international tourism. In OECD nations, domestic tourism accounts for 75% of total tourism expenditure , while in the European Union, domestic tourism expenditure is 1.8 times higher than inbound tourism expenditure. Globally, the largest domestic tourism markets in terms of expenditure are the United States with nearly US$ 1 trillion, Germany with US$ 249 billion, Japan US$ 201 billion, the United Kingdom with US$ 154 billion and Mexico with US$ 139 billion.

Initiatives to boost domestic tourism  

Given the value of domestic tourism and current trends, increasing numbers of countries are taking steps to grow their markets, UNWTO reports. This new Briefing Note provides case studies of initiatives designed to stimulate domestic demand. These include initiatives focused on marketing and promotion as well as financial incentives . Examples of countries taking targeted steps to boost domestic tourist numbers include:

• In Italy, the Bonus Vacanze initiative offers families with incomes of up to EUR 40,000 contributions of up to EUR 500 to spend in domestic tourism accommodation.
• Malaysia allocated US$113 million worth of travel discount vouchers as well as personal tax relief of up to US$227 for expenditure related to domestic tourism.
• Costa Rica moved all holidays of 2020 and 2021 to Mondays for Costa Ricans to enjoy long weekends to travel domestically and to extend their stays.
• France launched the campaign #CetÉtéJeVisiteLaFrance (‘This Summer, I visit France’) highlighting the diversity of destinations across the country.
• Argentina announced the creation of an Observatory for Domestic Tourism to provide a better profile of Argentine tourists.
• Thailand will subsidize 5 million nights of hotel accommodation at 40% of normal room rates for up to five nights.

Related Links

• Download the news release
• UNWTO Briefing Note – Tourism and COVID-19, Issue 3. Understanding Domestic Tourism and Seizing its Opportunities
• More Than 50% of Global Destinations Are Easing Travel Restrictions
• UN Secretary-General: COVID-19 and Transforming Tourism
• UNWTO Briefing Note – Tourism and COVID-19, Issue 1. How are countries supporting tourism recovery?
• UNWTO Briefing Note: Tourism and COVID-19, Issue 2: Tourism in SIDS

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How has the COVID-19 pandemic affected outdoor recreation in America?

During the COVID-19 pandemic, nearly half of adults in United States participated in outdoor recreation at least monthly, while 13 percent of Americans ceased participation.    Credit: Getty Images - monkeybusinessimages . All Rights Reserved .

January 24, 2022

By Aaron Wagner

UNIVERSITY PARK, Pa. —  When the COVID-19 pandemic upended many people’s work lives and leisure time, participation in outdoor recreation increased. For example, many national parks saw record numbers of visitors in 2020. 

A new article published in the journal Land examined how outdoor recreation has changed during the pandemic. The research was led by faculty in Penn State’s Department of Recreation, Park, and Tourism Management in collaboration with the Leave No Trace Center for Outdoor Ethics.  

Results indicated that nearly half of adults from across the United States now participate in outdoor recreation on at least a monthly basis, and approximately 20% may be new to outdoor recreation during the pandemic. Meanwhile, more than 13% of Americans ceased participation in outdoor recreation during the same time period.  

B. Derrick Taff, associate professor of recreation, park, and tourism management and lead author on the research, said that participation in outdoor recreation carries both psychological and physiological benefits. 

Prior research has established that outdoor recreation helps to release stress and restore people’s senses of well-being. Other research has linked stress to a wide range of health issues, including heart disease, depression, obesity, irritability, headaches, anxiety, and relationship troubles. 

“A 20% increase in outdoor recreation in the U.S. is good news for anyone who cares about people’s health or the environment,” said Taff. “It is encouraging from the public health perspective that — amidst one of the more challenging periods in recent history — a new group of outdoor recreationists have emerged, and, because of their participation, they likely benefit from improved health.” 

“This creates a tremendous opportunity for park managers to encourage this group of new recreationists to engage in life-long, healthy behaviors,” Taff continued. “Additionally, research suggests that people who recreate in nature have a more favorable view of environmental protection, so this development could increase support for future conservation efforts.” 

Not all the findings were positive, however, according to the researchers. The new outdoor recreationists were demographically similar to those that have traditionally participated in outdoor recreation: predominantly white, and with relatively high socioeconomic status. The more than 13% of Americans who ceased to participate in outdoor recreation during the pandemic were significantly more diverse, tended to reside in more urban environments, and earned less annually than existing or new recreationists. 

“This raises major concerns regarding demographic discrepancies with access and equity,” said Taff. “Park managers and policy makers need to develop policies and programming that foster participation by everyone, especially in their local parks. Not everyone can afford to travel to Yellowstone, but everyone deserves access to nature — and the associated health benefits of outdoor recreation — somewhere close to home.” 

Taff said that park managers and policy makers should continue to highlight the health benefits of outdoor recreation to encourage healthy participation in outdoor recreation. He also stressed the importance of making people feel safe and comfortable and aligning recreational opportunities with people’s desires for settings and activities. Other Recreation, Park, and Tourism Management program faculty at Penn State are studying how to make all people feel welcome in parks . 

Outdoor recreation includes a broad range of activities like boating, running outdoors, bicycle riding, walking through neighborhoods, and reading or relaxing in nature. It can be accessible to people of all ages and ability levels.  

“Just sitting in a park and reflecting on nature is good for you,” Taff said. “That could be a good place to start.” 

In addition to the department, this research was supported by the Leave No Trace Center for Outdoor Ethics. 

William Rice of the University of Montana, Ben Lawhon of the Leave No Trace Center for Outdoor Ethics, and Peter Newman, Department Head and Martin Professor of Recreation, Park, and Tourism Management at Penn State, co-authored this research. 

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