Abstract

Although there is some variation in the ratios between domestic and international tourism reported by organizations such as the United Nations World Tourism Organization (UNWTO) and the World Travel and Tourism Council (WTTC), it is generally agreed that domestic tourism represents around 80% of world tourist arrivals. In terms of tourist spending, it is estimated that domestic tourist spending contributes between 71% to 75% of total travel spending worldwide. The WTTC (2018) reported that in 2017 domestic tourism accounted for 73% of the global tourism spending of USD3.971 trillion, a clear testament to the importance of domestic tourism to the global economy. Since these numbers are based on historic data and domestic tourism is growing faster than international tourism, the actual number of domestic tourist flows and its economic impact could be much higher. There has been a large surge in domestic tourism in Asia in the last few decades, which has been attributed to a rise in the middle class, particularly in populous countries like China and India, the region being the fastest growing economy in the world, and a high cultural value of travel (Chan, 2006; Skanavis & Sakellari, 2011; UNWTO, 2012; Wu, Zhu & Xu, 2000). China is now the global leader in domestic tourism spending, surpassing the United states. Over the past decade, China’s domestic tourism spending has quadrupled to more than USD800 billion (WTTC, 2018).

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