The global tourism landscape is constantly shifting, and understanding the trends is crucial for planning your next getaway. While some areas are facing headwinds, others are experiencing significant growth, presenting exciting opportunities for travelers. Let’s take a look at how various regions are performing and what you can expect on your next adventure.
North American Market: A Tale of Two Countries
United States: Navigating a Challenging Landscape
Despite a robust economy in the first half of 2025, the U.S. hotel industry is facing some turbulence. Revenue Per Available Room (RevPAR), a key metric for hotel performance, has seen only marginal growth. Experts at CBRE, a leading real estate firm, have adjusted their forecasts, now projecting a modest 0.1% RevPAR growth for the year.
Several factors contribute to this slowdown. Inbound international travel has seen only a slight increase, and there’s been a dip in meeting and convention attendance. Furthermore, the rise of short-term rental options like Airbnb continues to provide stiff competition for traditional hotels. Concerns about inflation and economic uncertainty are also playing a role, impacting consumer spending on travel. To put this in perspective, the U.S. saw roughly 79.1 million international visitors in 2024. While figures for 2025 are still being compiled, this shows the competitive landscape for capturing tourist dollars.
Canada: Staying Strong Despite Trade Winds
In contrast to its southern neighbor, Canada’s hotel market is holding steady. Despite trade tensions with the U.S., a 2.4% increase in RevPAR is projected. Strong domestic and inbound U.S. travel are helping to buoy the Canadian tourism sector. This indicates Canada’s ability to attract and retain visitors even amidst global uncertainties.
Latin America: A Region on the Rise
Northern Latin America is experiencing a vibrant tourism boom. Destinations like Mexico, Costa Rica, Colombia, and the Dominican Republic are all showing impressive growth, solidifying their position as attractive options for international travelers. What’s more, hotel development is surging across the region, with Mexico leading the way by adding over 2,280 rooms by May 2025.
Costa Rica: A Top Eco-Tourism Destination
While Costa Rica experienced a slight dip in early-year arrivals, the country remains a premier destination for eco-tourism. Known for its stunning natural beauty, including lush rainforests and pristine beaches, Costa Rica is committed to sustainable tourism practices, making it an ideal choice for environmentally conscious travelers. The country is planning 26 new hotel projects to be completed by 2026, backed by over $700 million in investment, adding 1,500 new rooms to the inventory. As of 2024, tourism contributed nearly 13% to Costa Rica’s GDP, highlighting the sector’s importance to the nation’s economy.
Europe: Growth at a More Measured Pace
Europe continues to attract international tourists, with the U.S. being a key source market. However, growth is moderating. RevPAR is expected to increase between 2% and 5%, slower than the previous year’s 7%. This suggests that while demand remains strong, the market is becoming more competitive, and operators are adopting a more cautious approach to pricing.
Middle East: Performance Driven by Key Markets
The Middle East’s tourism sector is generally performing well, with the United Arab Emirates (UAE) leading the charge. Abu Dhabi and Dubai have both seen significant RevPAR growth, fueled by exhibitions and new leisure attractions. Dubai is aiming to become one of the top three most-visited destinations in the world, already securing a place in the top 10 in 2024. The emirate welcomed 6.1% more international visitors in the first half of 2025, numbering nearly 10 million.
Asia-Pacific: Strong Growth in Specific Markets
Asia-Pacific is experiencing a surge in international tourist arrivals, excluding mainland China, with a 9% year-over-year increase. Japan, Vietnam, and Korea are driving this growth. However, the rate of growth in Average Daily Rates (ADRs) has slowed in most markets. Japan, Korea, Vietnam, and India are expected to see the strongest RevPAR growth in 2025.
The global tourism market is a dynamic and ever-changing landscape. Whether you’re drawn to the natural wonders of Costa Rica, the vibrant cities of Asia, or the cultural richness of Europe, understanding these trends can help you make informed decisions and plan unforgettable travel experiences.
Ready to explore the pura vida lifestyle? Discover more about sustainable tourism and unforgettable adventures in Costa Rica. Plan your trip today!
