Industry Analysis & Industry Trends
The Global Tourism industry has experienced steady growth over the five years to 2015. International tourist arrivals continue to grow, as global per capita income increases and consumer sentiment improves. In the coming years, the industry is expected to continue growing, as the global economy continues to strengthen. Despite some distressed areas due to conflicts or regional economic problems, a number of factors, such as growing per capita disposable income and improving consumer sentiment, point towards strong tourism growth... read more
The Global Tourism industry 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. Markets such as the airlines sector 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