Industry Analysis & Industry Trends
The Global Tourism industry is undergoing rapid recovery following a difficult period during the recession. International tourist arrivals continue to grow as global per capita income increases and consumer sentiment improves. Over the past five years, tourists going emerging economies, particularly counties in Asia and South America, have driven the industry's growth. Emerging economies now account for a much larger share of the tourism industry compared with a decade ago. Over the five years to 2019, the industry is expected to continue growing as the global economy continues to strengthen... read more
The Global Tourism has a moderate level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.15 in capital investment.
The industry relies heavily on labor inputs due to the high level of personal service that most operators must provide. Although technology has led to increased labor productivity over the long term, in many cases there is no substitute for labor with the services the industry provides. Industries such as the airlines industry have relatively higher capital costs and, therefore, a higher level of capital intensity. Operators that provide tourist accommodation, such as hotels, motels and resorts, can also be subject to significant capital costs such as buildings and fittings... read more