Global Statistics Representing Beach Hotels Market Scenario
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.
Despite unforeseeable incidences such as political instability, terrorist attacks, natural disasters, and health epidemics, the travel & tourism sector has 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.
The global beach hotels market is expected to grow at a CAGR of 3.1% during the forecast period, 2019–2026.
The global beach hotels market can be segmented by type, service type, and occupant.
Based on type, the market can be segmented into premium, standard, and budget. China is a developing country comprising one of the largest middle-income class groups around the globe, and tourists from the country prefer budget travel. Similarly, the budget segment enjoys preference across several regions, due to limited income and demand for convenient travel, which contribute to the segment’s sizable market share.
On the basis of service type, the market can be segmented into food & beverage, accommodation, and others. With travelers being primarily inclined towards comfort and convenience, the accommodation segment is registering significant growth in the beach hotels market.
Based on occupant, the market can be segmented into solo and group travels. Group travels do not pose security risks and are relatively less expensive when compared with solo trips. Thus, the group travel segment is observing healthy growth in the beach hotels market.
Geographically, the global beach hotels market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America has several reasons to promote tourism and associated services, one of them being depression and the consequent need for mental rejuvenation. According to the National Institute of Mental Health, in 2016, an estimated 10.3 million U.S. adults aged 18 and above, amounting to 4.3% of all U.S. adults, suffered from major depressive trauma with severe associated impairment. Intense workload, lifestyle-related issues, and other factors are contributing to the growing population suffering from depression. As a result, people are increasingly opting for leisure trips and vacations, which widens the scope of the beach hotels market.
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 engage in digital networks at a global level with a focus to help tourism entrepreneurs efficiently manage their businesses.
Asia Pacific represents a vast and highly competitive market for beach hotels, 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. According to the World Travel and Tourism Council (WTTC), the tourism and travel sector contributes an approx. USD 120 billion, amounting to almost 6.3% in the region for 2017. Countries are partnering to promote each other’s tourism sector and create new growth avenues. For instance, the U.S. and India formed a partnership for tourism and travel in 2017 to further support people-to-people exchanges and trade between the two countries in travel and tourism services.
Latin America is witnessing significant growth in the travel and tourism sector, which is expected to offer a plethora of opportunities for the beach hotels market. According to the World Travel and Tourism Council, the direct contribution of this region in tourism and travel sector to GDP was approx. USD 121 billion, i.e. 3.2%, in 2016, which is estimated to rise by 3.5% to approx. 174.1 billion by 2027.
Latin America has several untapped opportunities in the tourism sector to stimulate the growth of the beach hotels market. With governments intensely investing in the development of the tourism sector, market players have an opportunity to exploit the untapped market potential and gain a competitive edge.
The Middle East and Africa region offer various growth opportunities for the beach hotels market on account of the region’s growing tourism sector. Regions such as Abu Dhabi, Dubai, and others have undertaken several development initiatives to promote their tourism sectors. For instance, Abu Dhabi is currently focusing on sustainable tourism development and its associated government regulatory body, Department of Culture and Tourism in Abu Dhabi is implementing ‘Green’ Tourism and hotel initiatives.
Some of the key players operating in the market are Four Seasons 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., and Wyndham Worldwide Corporation.
Beach Hotels Market Segmentation
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This report offers key insights pertaining to the beach hotels market with an emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.