|Base Year Market Size
|USD 135.03 Billion
|Forecast Year Market Size
|USD 190 Billion
|Fastest Growing Market
The global beach hotels market size was valued at USD 135.03 billion in 2022. It is projected to reach USD 190 billion by 2031, growing at a CAGR of 3.1% during the forecast period (2023-2031).
Beach hotels are sea-facing luxury accommodations that, at times, have private beaches. They offer activities such as water sports, hiking & surfing, and biking facilities, among others, to attract customers. In addition to offering tourists opulent lodging options, many beach resorts offer private beaches. In order to provide every travel enthusiast with the ideal summer vacation, beach resorts cater to their needs. Beach hotels offer the ideal wedding accommodations, including spa services, nutritional counseling, and physical activity programs for wedding guests. Beaches are the ideal wedding location.
Childcare services are available at many beach resorts. Despite the fact that unforeseeable incidences such as political instability, terrorist attacks, natural disasters, and health epidemics, the travel & tourism sector have been observing significant growth. According to the World Travel and Tourism Council, the global tourism sector generated USD 7.6 trillion, approx. 10.2% of the global GDP. The sector also accounted for 6.6% of total global exports and approx. 30% of total global service exports. Events such as the Olympic Games and Paralympics further foster the growth of tourism and associated services.
After the COVID-19 pandemic, the tourism industry is back on track, and a lot of people are going out of their houses after getting locked down for almost a year. Increasing disposable income and rising living standards in developing countries are also contributing to the growth of the beach hotels market. Nowadays, a lot of people choose the beach as a prime holiday destination with family and friends. The World Travel and Tourism Council (WTTC) projects that by 2023, the travel and tourism industries will have recovered to their pre-pandemic levels and will be expanding faster than the GDP. The reopening of tourist places worldwide after the slowdown of the COVID-19 pandemic and the growing tourism industry will drive the market of beach hotels throughout the forecast period.
The growing popularity of destination weddings is one of the key factors influencing the development of beach hotels. It's a fairy tale of getting married in a laid-back, airy setting for most couples. Beaches are becoming the wedding locale of choice for an increasing number of teams. Another growing trend is the desire of many couples to wed underwater. The industry for beach hotels has seen significant growth globally for this very reason.
Many beach hotels have a greater incidence of illnesses brought on by mosquito bites. Tourists avoid staying in beach hotels in the current climate, where diseases like dengue and malaria are killing people. Similarly to this, tourists are staying away from beach hotels as vacation destinations due to the threat of natural disasters like tsunamis and typhoons. These factors are impeding the expansion of the beach hotel industry worldwide.
Governments worldwide fund the tourism industry to develop new infrastructure to promote tourism activities. The Indian government has launched a campaign to promote cleanliness, improved air connectivity to several locations, improved digital connectivity in and around tourist destinations, built infrastructure, and improved the hospitality industry as a whole in the last few years. The US Government will contribute $250 million to Brand USA, a US destination marketing organization, to help it promote inbound tourism in important markets. The grant, made possible by the Restoring Brand USA Act, represents a significant step in the recovery of the US travel and tourism sector following the nation's opening to foreign visitors. As international travel restrictions begin to loosen, the ongoing funding will be used by Brand USA and its partners to boost demand, restore traveler confidence, and hasten the return of foreign travel and spending.
The global beach hotels market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North American region is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period due to high net income per capita and the trend of summer traveling in the USA and Canada. Moreover, intense workload, lifestyle-related issues, and other factors contributing to depression are raising the urge to travel to a calm place like the beach. As a result, people are increasingly opting for leisure trips and vacations, which widens the scope of the beach hotels market. A Beach renourishment project has been initiated in Miami, USA, to increase the sand quantity, and reduce environmental and infrastructural damage to the beach, which will increase the tourism activities on the beaches, driving the market growth throughout the forecast period in the region. A contract of USD 40.4 million was awarded on July 30, 2021, and is being used to carry out the current renourishment project along four severely eroded sections of the shoreline. The entire cost of the renourishment is being covered by the federal government.
Europe is expected to witness dynamic growth in the beach hotels market during the forecast period. Europe has several beaches popular among tourists, such as Navagio, Beach of La Concha, Nissi beach, Petani beach, and Xi beach. These areas contribute to the growth of the region's tourism industry. Further, governments across Europe are implementing policies to supplement the growth of the tourism industry, which in turn is creating opportunities for the beach hotels market. For instance, the European Commission is undertaking initiatives that primarily focus on the mobility of workers, improving worker skills, and engaging in digital networks at a global level with a focus on helping tourism entrepreneurs efficiently manage their businesses.
Asia-Pacific is expected to witness significant growth in the Beach Hotels video market during the forecast period owing to the region's prominent tourism sector. Developing economies such as India, China, Indonesia, Malaysia, and others have several beach areas such as Goa, Palolem beach, Calangute, Sanya, Shanghai, Shenzhen, Penang, and others, which significantly contribute to the respective country's GDP growth. International hotel chains are expanding their operations in India, and by 2022, they will control about 50% of the country's tourism and hospitality market. South-East Asian countries, Australia, and other Pacific Ocean Islands witness the majority of their tourism revenue through beach tourism, which will drive the beach hotel market in the region.
The LAMEA region is expected to witness a high CAGR in the global beach hotels market during the forecast period, which is expected to offer a plethora of opportunities for the beach hotels market. The Saudi Arabian government is opening new beaches with no restrictions, which is going to increase the number of beach hotels in the region. The growing infrastructure on beaches in UAE, Kuwait, and other Middle-Eastern countries will drive market growth in the region.
|By Service Type
|Holiday Inc. Marriott International Inc. the Oberoi Group The Indian Hotels Company Limited Accor SA Hyatt Hotels InterContinental Hotels Group PLC (IHG) ITC Limited Hilton Worldwide Holdings Inc Wyndham Worldwide Corporation
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global beach hotels market is segmented by type, service type, and occupants.
Based on type, the global market is bifurcated into premium, standard, and budget.
The premium segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period due to an increase in demand for the services this segment provides in seaside areas. One of the factors driving up demand for premium type is the developed economies' rising standardization of luxury lifestyles.
The budget segment is expected to witness a higher CAGR due to a rise in first-time travelers worldwide. Most tourists in developing countries opt for budget hotels to lower their tour budget and spend the rest of the money on better food & beverages, local shopping, and traveling. The budget segment enjoys preference across several regions due to limited income and demand for convenient travel, which contribute to the segment's growth.
Based on the service type, the global market is bifurcated into accommodation and food & beverage.
The food & beverages segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. There is a high demand for food & beverages in beach hotels, especially for local delicacies. In beach hotels, beer is consumed majorly, which is a light alcoholic beverages. Special breakfast combos and brunch buffets offered by beach hotels will drive the growth of the market throughout the forecast period.
The accommodation segment is expected to grow at a significant rate. With travelers being primarily inclined towards comfort and convenience, the accommodation segment is registering significant growth in the beach hotels market.
Based on occupants, the global market is bifurcated into group and solo.
The group segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Tourists generally prefer to travel in groups than solo due to security and budget concerns, which is why the group segment will grow further and contribute heavily to the growth of the market.
The solo segment is expected to grow at a significant rate due to the rise in the trend of solo traveling among youngsters and vloggers. Solo travel provides more convenience and flexibility than group travel. Tourists who are looking for their personal space tend to travel solo, thus driving the segment's growth.