The travel and tourism industry worldwide is undergoing a significant transformation driven by demographic shifts, the growing need for sustainability, changing traveler preferences, and global challenges. “Shifting consumer preferences for specific travel experiences are transforming the globe’s $10 trillion tourism industry,” said Consultancy-me, a travel website, in October. “Emerging destinations, such as the Middle East, have a chance to capitalize on these trends by developing innovative, sustainable tourism strategies to meet new-age demands.”

Rising costs, overtourism, and restrictions in many well-known hotspots accelerate these evolving preferences. According to Mastercard Economics Institute’s Travel Trends 2025 report, “If the broader economy slows down, consumers may adjust their discretionary spending, becoming more cautious about how and where they employ their purchasing power. This could have a ripple effect on travel decisions, a risk that should not be ignored.”

Egypt stands to gain a huge influx of tourists if it expands its capacity to accommodate growing demand. Under its Tourism Development Strategy aligned with Egypt Vision 2030, the country aims to attract 30 million tourists annually by 2028 through increased hotel investments, diversified tourism offerings, and major infrastructure enhancements. 

The Egyptian Gazette noted in July that “Egypt is a suitable choice for tourists from Europe, the Gulf region and Asia for its accessibility, hospitality and cultural wealth.”

Soaring prices 

Turkey has long been a go-to destination for sun-seekers chasing value, often rivaling famous European destinations like Spain and Portugal. According to a 2025 U.N. report, Turkey remains a top global travel destination, having surpassed Italy to become the fourth most visited country by international tourists in 2024.

A July report by the World Tourism Forum said, “2024 proved to be an exceptional year for Turkish tourism. The nation welcomed an astounding 62.23 million visitors, marking a significant 9% increase compared to 2023. This surge in arrivals translated into record tourism revenue of $61.1 billion, an 8.3% increase year-on-year.”

In addition, a July article by Travel and Tour World, a digital B2B media platform, showed the country’s tourism sector is projected to hit $64 billion this year. 

However, increasing expenses are turning Turkey into a pricier destination. “The sector is dealing with surprisingly low hotel occupancy, fewer tourists, and worries about the quality of entertainment options,” the article said. “With Turkey’s prices now on par with Dubai, and even exceeding those in Spain and Greece in some instances, the country might lose its edge in the global tourism market.”

According to a July article by Arabian Gulf Business Insight (AGBI), hotel occupancy rates in Turkey are down more than 10% year-on-year, while the length of stays has eased by 5% according to data from the Professional Hoteliers Association.

Tourism Review, a travel and hospitality news portal, reported in July that a five-day trip for a family of four to popular destinations like Antalya or Bodrum can cost more than $3,600. In contrast, similar vacations in Greece and Egypt might cost around $2,200 and $1,700, respectively.

In turn, tourism revenue is expected to fall short of the targeted $60 billion announced by President Recep Tayyip Erdoğan in September, according to a November article by Arabian Gulf Business Insight. 

“Turkey’s broader economic situation, with high inflation and a controlled foreign currency rate, has pushed prices up and contributed to the country being seen as an expensive destination,” says Yiğit Girgin, a representative of the Professional Hotel Managers’ Association in the Aegean resort region of Bodrum.

Overtourism

Despite its popularity as Europe’s second most visited destination, Spain is grappling with overtourism. A Forbes article in July said, “In mid-June, thousands of people took to the streets across Madrid and Barcelona to protest, shouting ‘Your holidays, my misery’ and holding up banners that read ‘Mass tourism kills the city’ and ‘Their greed brings us ruin.’” Protests also took place in Ibiza, Málaga, Palma de Mallorca, San Sebastián, and Granada.

Notably, the World Tourism Forum said in January that “Spain has reached a historic milestone in tourism, welcoming 94 million international visitors in 2024 — the highest number ever recorded for the country,” according to Tourism Minister Jordi Hereu. 

That said, tourism is a significant contributor to Spain’s economy, accounting for 12.3% of GDP in 2023 and almost the same share of its jobs, according to the latest official figures.

This makes it harder for the country to limit tourism and travel activities. Reuters reported in July that “protests are growing over housing shortages exacerbated by mass tourism – and could be exacerbated by the indignity of Spaniards being priced out of their favorite holidays.”

In addition, hotel prices jumped 23% in the past three years to an average of 136 euros ($159) a night, according to data company Mabrian.

Reuters also reported that last year, local tourism in Spain declined by 800,000 people. In contrast, foreign tourism saw an increase of 1.94 million visitors, according to previously unreported official data reviewed by the analysis firm in Atlas.

The huge influx of tourists has negatively affected housing costs as well as prices of goods and services. “It is becoming increasingly difficult for Spanish holidaymakers to afford beachfront tourism rentals,” said Jose Maria Basanez, group president of price monitoring firm Tecnitasa. Most beachfront rentals were booked for the summer by the first quarter, with prices rising 20% since mid-2023, according to Tecnitasa.

Spanish Economy Minister Carlos Cuerpo said in an interview in June with the Associated Press, the record numbers of tourists illustrate the “attractiveness of our country, but also the challenge that we have in terms of dealing and providing a good experience for tourists, while at the same time avoiding overcharging for our own services and our own housing”.

To mitigate the impact of overtourism, the government has taken bold steps, including ending its golden visa program, removing 65,000 illegal Airbnb listings, and proposing a 100% tax on foreign property buyers, according to a June article by Forbes. “With an intention to welcome 1 million foreign workers over the next three years, the plan to solve Spain’s overtourism issues has never been more prescient.”

The U.S. effect

Since the start of his second term, President Donald Trump has imposed several restrictions that discourage tourists from traveling to the United States. According to Julia Simpson, CEO of the World Travel & Tourism Council (WTTC), an organization representing the travel industry’s private sector, “international travelers are shunning U.S. vacations due to unpopular policies of the Trump administration, fear of being stopped at the border, and an unfavorable exchange rate.”

In May, a WTTC study that analyzed the economic impact of tourism in 184 countries revealed the United States was the only country expected to see international visitor spending decline in 2025 by $12.5 billion from $181 billion in 2024. 

A Forbes article in July said Trump’s tariffs, travel bans, inflammatory rhetoric, and harsh immigration policies have combined for a chilling effect on visitors — and there’s little indication of a reversal anytime soon. Aran Ryan, director of industry studies at Tourism Economics, told Forbes, “We’re generally assuming that this persists for a while and that some of it is going to persist throughout to the end of the administration.”

If such trends remain, the U.S. Travel Association projects the country will lose $21 billion in travel-related revenue in 2025. “Each 1% drop in spending from international visitors translates to $1.8 billion in lost revenue per year for the U.S. economy,” according to the trade group.

Africa’s momentum 

High prices and overcrowding encourage travelers to search for alternative destinations.  According to the Trends and Insights report released by Visa in August, “Overcrowded capitals and increasing visa hurdles are influencing travelers to explore more accessible alternatives, particularly across the Asia Pacific, Middle East and North Africa.”

International travelers, especially households earning over $200,000 per year, are increasingly opting for lesser-known destinations. The report added that “their preferences are shifting toward unique, immersive experiences and lesser-known destinations.” 

The report said this group’s significant spending power drives demand across airlines, hotels, and luxury retail. Affluent consumers play a key role in determining which destinations rise in popularity worldwide.

Currently, new destinations within Africa are drawing tourists. “Globally, the appetite for luxury tourism is continuing to grow, and many African countries are tapping into this profitable market by offering tailored travel experiences that combine entertainment, relaxation, and exclusivity,” Penny Fraser of RX Africa, a luxury travel company, noted in January. 

For her, luxury travel is not only about infrastructure, but also an exceptional experience. “Africa offers something truly unique — exclusive safari experiences, cultural immersion, and pristine beaches. Imagine visiting remote tribes, exploring ancient historical sites like the pyramids in Egypt, or enjoying the breathtaking coastlines of Durban and Cape Town. These are experiences that resonate deeply with luxury travelers,” she said.

Remarkably, Africa has emerged stronger in the global tourism landscape following the pandemic. In 2024, the continent exceeded its pre-pandemic levels of international tourist arrivals, welcoming 74 million visitors, according to UN Tourism. 

An article by Travel and Tour World in July said the shift is being fueled by a wave of high-profile investment ranging from Persian Gulf royal families and tech billionaires to major international hotel brands. “The demand for unique travel experiences — ranging from exclusive wellness retreats and eco-friendly vacations to luxury adventure tourism — has skyrocketed, further accelerating this transformation,” the article said.

Michael Pownall, managing partner of Valor Hospitality Partners, told Bloomberg in July that for many investors, the cost of entry in Africa is lower than in more mature markets, from land acquisition to development. “You could become a bigger player quicker because perhaps there’s less competition than there would be in a more mature market,” he said. 

Egypt’s ambitions 

Egypt is at the forefront of the tourism industry in Africa. According to a U.N. Tourism report, Egypt ranked first in Africa for tourism revenue in 2024, a record $14.1 billion.

The Egyptian Cabinet’s Media Center released a report in February noting that Egypt advanced 22 places in the Travel and Tourism Development Index, ranking 61st in 2024 compared to 83rd in 2015, as per the World Economic Forum’s data.

Notably, the tourism industry is a boon for Egypt’s inflow of foreign currency. According to the World Tourism Forum in August, “Tourism is one of Egypt’s leading sources of income, a vital component of the national economy and a key earner of foreign currency.”

Data from 2024 showed tourism contributes 8.5% of GDP and supports 2.7 million jobs. Furthermore, International visitor expenditure reached EGP 727 billion ($15 billion) in 2024. “This robust performance highlights the sector’s profound economic significance,” the World Tourism Forum noted.  

To maximize benefits, the Egyptian government is setting ambitious goals to boost its tourism industry. Minister of Tourism and Antiquities Sherif Fathy, in June, highlighted the target of attracting 30 million tourists annually, “which requires concerted efforts to provide necessary infrastructure such as hotels, airports, and airline seats.”

A statement by the Ministry of Tourism and Antiquities in June said, “From January to May, inbound tourism rose by 26%,” up from 4% to 6% percent during the same period last year. This was accompanied by a significant increase in spending. 

Fathy also emphasized an urgent need to double Egypt’s hotel capacity within the next five years to keep pace with the surge in tourist arrivals. To meet anticipated demand, Egypt plans to add 18,000 hotel rooms by the end of 2025. Currently boasting approximately 230,000 rooms, the government is targeting the development of more than 200,000 new rooms over the next two to three years.

Egypt has also made progress in facilitating tourists’ entry. Starting in mid-June, Egypt has implemented the pilot phase of a new visa-on-arrival system to reduce congestion at airports, according to the State Information Service. 

Such efforts should position Egypt as one of the most attractive tourism destinations amid the backlash in other popular destinations. For Fathy, “our goal is clear,” he said in May. “Position Egypt as the world’s most dynamic and diverse tourist destination.”