30 Sep Wellness Tourism Industry Projected To Reach $1.6 Trillion Valuation by 2030
The wellness tourism industry is a vital contributor to the global gross domestic product (GDP). In 2020, the global wellness tourism industry was valued at over $800 billion with the lodging segment making the highest contribution to the industry’s market share. What is even more exciting is the fact that the wellness tourism industry is projected to reach approximately $1.6 trillion by 2030, forecasting an estimated compound annual growth rate of 7.2% between 2021 and 2030. Although the industry faced some strong headwinds due to the Coronavirus travel restrictions of 2020 and 2021, it is staging an impressive economic rebound as the world opens up again.
The rebound of the wellness tourism sector is characterised by increased demand for wellness centres, wellness resorts, and wellness institutes. This increase in demand is attributed to the exponential rise in people’s desire to avoid sickness, reduce stress, and live healthier lifestyles.
Some governments have already started increasing their efforts towards marketing wellness tourism activities. In India, the ministry of tourism recently drafted a national strategy that promotes wellness tourism, medical tourism, as well as Ayurveda tourism – a kind of medical tourism common in many Asian and European countries. The ministry’s decision to invest in wellness tourism is a financially sound one because tourism was the third-highest contributor to India’s GDP, raking in over 48 million wellness trips in 2020 alone.
In the United States (US), wellness tourism mainly takes place domestically. Even when US travellers seek outlandish destinations, most still visit the outlandish areas within the US. Nevertheless; the wellness tourism industry still contributed an impressive $220 million to America’s GDP in 2020, accounting for nearly 29% of the global wellness tourism market size.
Other key contributors to the global wellness tourism GDP include China, Japan, Canada, and Germany. The wellness tourism sector in China is forecasted to reach a remarkable value of $220 billion by 2027, which is a projected compound annual growth rate of 10.5%. Canada and Japan, on the other hand, are each projected to grow at 6% and 4% respectively.
(Source: Allied Market Research, 2021)
Similar to the US, the majority of global wellness tourism activities still take place within domestic borders. This is because most wellness travellers prefer to visit domestic sites due to their familiarity with their countries’ regulations, customs, traditions, and etiquette.
Furthermore, domestic travel involves fewer hassles than international travel as travellers do not need to exchange currencies nor apply for visas and passports. Nevertheless, it is interesting to note that the international segment of the wellness tourism industry is forecasted to grow at a rate of 7.8% between 2020 and 2023.
When analysing the financial performance of wellness services, lodging services contributed the most towards the global wellness tourism market share and this is projected to be the case for the next 8 years. People are also projected to spend more money on wellness shopping. With a forecasted compound annual growth of 7.8%, the wellness shopping segment is projected to have the fastest growth rate in comparison to other wellness services.
(Source: Allied Market Research, 2021)
Investing in a future $1.6 trillion wellness tourism industry is a financially sound decision. The industry holds many opportunities for investors to enter the market and the benefits of investing are considerable. These benefits are summarised below:
- The dynamics and estimations of the size of the wellness tourism industry for the next 8 years demonstrate that the industry is great for investing.
- An analysis of Porter’s five forces illustrates that the balanced potency between buyer and supplier power enables investors to make profitable business decisions that will strengthen their buyer-supplier network.
- After an in-depth analysis of the market size and segments, it was concluded that the wellness tourism industry has a high market potential which makes it suitable for long-term investments.
- Every segment of the wellness tourism industry is forecasted to increase by a significant percentage, indicating a high chance of profitability for those who invest in the industry.
Now that you have witnessed the wellness tourism industry’s financial capacity, start investing in wellness tourism to secure your piece of the pie.
By R.A. Mbecke Za-Mulamba
