The ethnic tourism market enables travelers to experience cultural diversity through activities including culinary experiences, cultural performances, festivals, rural tours, and heritage walks. Ethnic tourism provides opportunities to learn about indigenous cultures, lifestyle, handicrafts, art forms, religion, architecture, languages, cuisine and music.
The Global Ethnic Tourism Market is estimated to be valued at US$ 35.54 Billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Ethnic Tourism are Ethnic Travel, Ethnic Travel Laos, Ethnic Ties LLC, MATHINI TRAVEL Pvt. Ltd., Intrepid Travel, Responsible Tourism India, Responsible travel, Basecamp Explorer AS, Wild Frontiers Adventures Travel, Beyonder Experiences, Bouteco, Fareportal/Travelong, AAA Travel, JTB Americas Group, Ovation Travel Group, Kesari Tours Pvt. Ltd., Carlson Wagonlit Travel, Martin Randall Travel Ltd., and Travel Leaders Group. The increasing popularity of cultural tourism is driving the growth of ethnic tourism globally. Key players are expanding their network across regions to tap the rising demand for experiencing indigenous cultures.
The growing demand for unique experiences is fueling the Ethnic Tourism Market Growth. Tourists are increasingly seeking immersive cultural experiences versus traditional sightseeing. Operators are designing novel cultural activity packages and experiences to meet customer aspirations. Immersive experiences help raise cultural awareness besides offering entertainment.
Global expansion is seen as a key trend in the ethnic tourism market. Major players are diversifying their portfolio and expanding operations internationally to benefit from opportunities across regions. Partnerships with local operators facilitate global expansion. Digitization of operations further aids international growth by enhancing access to a global consumer base.
Market key trends
Experience seeking travelers is one of the key trends driving growth of ethnic tourism. Younger travelers especially millennials and Generation Z opt for unique experiences that can be Instagrammed or photographed. Curated experience packages involving local lifestyle, music, dance, culinary classes are gaining traction. Experience providers leverage technology and social media influence to engage experience seeking travelers. This ensures long term growth prospects for the ethnic tourism industry.
Porter’s Analysis
Threat of new entrants: The ethnic tourism industry requires significant capital investments to enter the market. There are also established players with strong brand recognition and operational expertise. This makes entry difficult for new players.
Bargaining power of buyers: Individual tourists have low bargaining power due to the variety of options available. However, large tour groups can negotiate on pricing and packages.
Bargaining power of suppliers: Tour operators have significant influence over local community suppliers and destinations. This allows them to negotiate on pricing and services.
Threat of new substitutes: There are limited substitutes for experiencing local cultures through ethnic tourism. However, general sightseeing is an option pursued by some tourists.
Competitive rivalry: The market has several large and small players competing on attributes like unique experiences, personalized services, and regional specializations.
Geographical regions
North America accounted for the largest share of the global ethnic tourism market in terms of value in 2024. This is attributed to large tourism spending and emphasis on unique cultural experiences among travelers from countries like the US and Canada.
However, Asia Pacific is projected to witness the fastest growth during the forecast period. This can be attributed to rapid development of tourism infrastructure in countries such as India and China coupled with their rich cultural diversity that attracts ethnic tourists.