Tourism is undoubtedly enjoying a post-pandemic boom. However, travel patterns are changing, with a rising number of vacationers choosing to spend time nearer to where they live. Nagi Morkos, founder and managing partner at Hodema Consulting Services, shares his thoughts on how the hospitality industry can tap into this growing trend.

It’s official – the tourism industry has finally recovered from its darkest years. According to UN Tourism, international tourist numbers reached 1.4 billion last year, marking a full recovery from the pandemic years and breaking new records.

On the doorstep

Significantly, we know that the number of people exploring their own surroundings is especially impressive, even though exact figures remain difficult to determine. Foreign visitors are no longer hotels’ only guests. After years of travel restrictions and expensive airfare prices, many people are choosing trips closer to home. They want to explore their surroundings and many clearly favor a greener, more responsible approach to traveling.

It’s worth remembering that domestic tourism accounted for a large part of the industry’s revenue before the Covid pandemic. And the consulting firm McKinsey & Company estimates that it will represent 70 percent of the overall spending by 2030, continuing to expand in the coming years.

Keeping it local

Investors and developers have been funneling their money toward local destinations, capitalizing on people’s preference for proximity. In Europe, the most famous initiative is probably Relais & Chateaux. The French-born association has created a network of prestigious houses and mansions transformed into high-end hotels and restaurants. Located across 65 countries, these establishments share the same motto: to promote local cuisine, savoir-faire and heritage.

Significantly, the concept has also spread to different segments, with guesthouses, in particular, targeting domestic tourists. Offering visitors a warm and welcoming atmosphere, these properties have a homely feel to them, more akin to staying with a relative or friend than in a hotel. Many offer discounts or partnerships for local activities, such as hiking or visiting historical and cultural sites. Some even lend visitors bicycles.

Community-driven collaborations

In popular destinations such as Spain, the south of France and Italy, independent hotels also team up with local organizations, tourism boards and artisanal producers. Projects in wine-producing regions have proved especially popular. Back in 2001, Mexico developed and launched its own version of the concept. A project for the Ministry of Tourism, the ‘Pueblos Mágicos’ (magical villages) initiative spotlights specific towns across the country, promoting their culture, history, cuisine and crafts. The aim is to attract more visitors, especially locals, to rural areas, thereby boosting local employment and economic activity. A total of 132 localities now form part of the program.

Rediscovering gems

Domestic tourism offers great opportunities to rediscover local highlights that are sometimes considered unremarkable or not known to visitors. We are often surprised by the number of sites well worth visiting nearby, even in remote areas. Seasonal events such as festivals feature among the many attractive propositions for internal visitors. Held over spring or summer – or in winter in the Gulf – they are often easy to reach, helping attendees to avoid hefty transportation fees, which is good news for large families.

Significantly, domestic tourism also gives visitors the opportunity to avoid overcrowded destinations. Lesser-known spots can offer more relaxed settings, free from queues or the need to book restaurants in advance.

Attracting new crowds

Local tourism can also include trips to visit friends or relatives, or events like weddings that gather everyone together. Indeed, flat rentals have been riding that wave of late, enabling visitors to stay in residential areas where traditional hotels can’t be found.

Remote work has also brought with it great opportunities to travel, with the ‘workcation’ trend evidently here to stay. Digital nomads, for example, are easily able to change their surroundings. All they need is a good internet connection. Importantly, these visitors can travel off-season, at weekends and outside school holidays since closer-to-home trips are easier to organize.

Uniqueness is business gold

Hotel chains, usually less rooted in local life, have been observing the expansion of domestic tourism. As branded concepts, they are often considered to have less individuality and fewer connections with their surroundings. Consequently, some large groups have recently begun introducing experiential travel initiatives to their portfolio, with many launched in 2025.

In December 2024, Marriott bought Postcard Cabins, formerly known as Getaway, which has 29 branches across the United States. The venture offers visitors the opportunity to stay in one of their 1,200 cozy cabins surrounded by nature. Additionally, InterContinental Hotels Group, acquired Ruby Hotels earlier this year, a German brand known for its ‘lean luxury’ concept. With 20 establishments in European cities, including Vienna, Munich and London, the brand aims to offer affordable stays in central hubs.

Meanwhile, in spring, Accor launched one of the most glamorous and original sleeping touristic experiences witnessed in recent years. Inaugurated in April, La Dolce Vita is a luxury train that travels across Italy and stops in landmarks such as Rome, Venice and Palermo. The initiative opens up exciting new travel options to local and regional audiences seeking experiential luxury close to home.

Adjusting the offer

Hotel chains have also created tailor-made marketing plans aimed at locals, such as weekend getaway packages and off-season offerings. Importantly, pricing strategies are fine-tuned, while advertising campaigns are targeted at residents of specific areas. Food is also key, with businesses recognizing that local visitors appreciate menus offering regional dishes featuring locally sourced ingredients. Sourcing produce from local providers is also a great way of sharing the financial benefits of incoming business.

Large chains now need to focus on expanding their immersive experiences and excursions to differentiate themselves from the competition. Significantly, these services have long been offered by boutique hotels. McKinsey’s report also highlights the high percentage of young people favoring domestic travel. Indeed, the consulting firm found that younger tourists take an equal number of local and foreign trips.

Budget-friendly options

In recent years, many millennial holidaymakers have developed the ‘staycation’ habit. The idea of a detox in a home – not too far away – from home holds great appeal. However, many of them are traveling on a budget. Hotel groups will therefore need to expand their range of accommodation to include low to mid-end to tap into the many domestic tourism opportunities available.