While there are some countries which barely have any tourists due to a variety of reasons including lack of safety and infrastructure, and values that don't align with an evolving word, as seen in the most dangerous countries for LGBTQ+ travelers and the most dangerous countries in the world in 2023, most countries heavily rely on tourism to boost their revenue. This is especially true for small countries and islands like Macau, Maldives and Seychelles, which while not among the most popular places in the world, are counted among places where tourism contributes over 50% of the country's total GDP. Globally, tourism accounts for 10% of the total GDP resulting in more than 320 million jobs.
However, the most popular countries in the world in 2023 suffered massively during the Covid-19 pandemic, as travel was suspended both internationally and domestically, and the number of tourists unsurprisingly plummeted. According to the International Monetary Fund, over 1.5 billion took trips in 2019, just before the pandemic struck, and according to the United Nations World Tourism Organization, the impact of the pandemic was devastating to say the least. This was particularly relevant for some of the most popular countries globally, most of which rely heavily on tourism. In 2019, 2.88 billion nights were spent by tourists while in 2020, this decreased by more than 50% to just 1.42 billion in 2020 and only increased slightly to 1.83 billion in 2021.
Fortunately, in 2023, the tourism industry seems to be almost fully recovered from the pandemic with the UNWTO stating that in the first quarter of 2023 alone, international visitors reached 80% of pre-pandemic levels, with more than double the number of 2022 travelers touring internationally and reaching 235 million. Of course, recovery has varied strongly by region and the Middle East was the only region in the world where tourism numbers reached pre-pandemic numbers in the first quarter of 2023, something that will definitely be a huge boost to some of the most profitable airlines in the world, a few of which are based in the Middle East. Many top airlines have struggled to even break even while attempting to recover from the pandemic but because of pent up demand for the most popular countries in the world, have been able to increase prices significantly without seeing a drop in passengers.
Despite the boost in revenue, airlines are still struggling to contain costs, and spiraling labor costs are contributing to profit targets being revised. While American Airlines Group Inc. (NASDAQ:AAL) had a good first half in 2023, its share price fell fell by 12.1% in August 2023, mainly due to a new contract for pilots which will avoid work disruption but see costs increase by 46%, which means that the pilots will take in $9.6 billion extra as compared to the previous contract through the duration that it is valid for. Because of this decline, American Airlines Group Inc. (NASDAQ:AAL) has seen its share price fall by nearly 4% YTD, despite a stellar Q2 2023 performance. In its Q2 2023 earnings call, American Airlines Group Inc. (NASDAQ:AAL) mentioned the record performance stating " We continue to build on the strong foundation we have laid over the past year and remain focused on reliability, profitability, accountability and strengthening our balance sheet. That focus is showing up in our results. Everything we have said we would do at the start of the year, we have done. Our operation is performing at historically strong levels. And this morning, we reported adjusted pre-tax earnings of approximately $1.8 billion for the second quarter. These earnings were well above the high end of our latest EPS guidance range, marking our fifth consecutive quarterly profit. At the start of the recovery, we told you that returning to profitability hinged on running a reliable airline. American continues to run a strong operation in an evolving environment in which we are very well positioned because of the hard work our team has done in recent years. Our sustained profitability is tied to our leading network rewards program and operation. We have a tremendous network and we operate in a reliable and efficient way, and we reward our customers for using it. Now, let’s talk more about our financial results. We produced total revenue of $14.1 billion in the second quarter, the highest quarterly revenue in our company’s history. This was driven by broad-based demand across all entities with a particular strength in demand for international travel leading into the summer."
Of course, airlines weren't the only industry impacted heavily by the pandemic as the entire travel industry struggled significantly. Booking Holdings Inc. (NASDAQ:BKNG) is a company which provides various travel related online services known mainly for providing one of the most well-known platforms for booking hotels, but you can also book tours, restaurants and even flights on the website and app, especially for the most popular countries in the world. A stellar 2023 has seen Booking Holdings Inc. (NASDAQ:BKNG) see its share price increase by more than 50% YTD 2023 with revenue increasing from $10.9 billion in 2021 to $17.1 billion in 2022. Here is what L1 Capital International Fund said about Booking Holdings Inc. (NASDAQ:BKNG) in its first quarter 2023 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) was the largest positive contributor to the March 2023 quarterly performance. We meaningfully added to our investment in Booking in the middle of 2022 when the market was overly focused on disruptions to travel in Europe caused by airport understaffing and other COVID-19 induced inefficiencies, as well as concerns that an economic downturn would materially reduce discretionary travel. Since then, the travel environment has continued to normalise, with China being the last major market to open travel borders post COVID-19. People the world over have demonstrated their ongoing desire to travel, an industry that has historically grown significantly faster than GDP growth. Management has continued to execute a well-planned strategy to increase connections with customers booking accommodation, including offering flights, on ground transport, activities and payment options. After increasing over 20% in the December 2022 quarter, Booking’s share price increased a further 30%+ during the March 2023 quarter. Booking is now trading within our assessed view of fair value. We retain confidence that management will continue to deliver returns to shareholders and Booking remains one of the Fund’s largest holdings.”
Methodology
To determine the most popular countries in the world, we didn't rely on tourist numbers, as these can often be inflated by countries including transit passengers. Instead, we relied on tourism revenue statistics for our ranking, with data obtained from the United Nations World Tourism Organization. However, we have mentioned both number of tourists as well as tourism revenue for each country in our list.
Total expenditure in 2021 (in millions): $1,886
Total overnight visitors in 2021 (in thousands): 2,182
Bahrain is continuing to improve its tourism sector, and is hosting many major events such as the World Series of Darts, in a bid to boost tourism numbers.
Total expenditure in 2021 (in millions): $1,963
Total overnight visitors in 2021 (in thousands): N/A
While still considered to be a dangerous destination by many countries, its ancient sites and a slight improvement in its stability has seen tourism numbers increase.
Total expenditure in 2021 (in millions): $2,032 Total overnight visitors in 2021 (in thousands): 1,832 Slovenia's scenic beauty ensured that it continues to be an underrated destination in Europe, but is slowly seeings its popularity increase over the years.
Total expenditure in 2021 (in millions): $2,090 Total overnight visitors in 2021 (in thousands): 1,937 Cyrpus is one of the countries which has seen tourist numbers impacted because of the ongoing Israel conflict with Hamas.
Total expenditure in 2021 (in millions): $2,113 Total overnight visitors in 2021 (in thousands): 2,256 South Africa is a popular destination for tourists but the recent killing of a UK tourist in the country may impact said popularity.
Total expenditure in 2021 (in millions): $2,172 Total overnight visitors in 2021 (in thousands): 871 China is surprisingly one of the reasons why Serbia is among the most popular countries in the world, with China investing as much into Serbia as the entire European Union.
Total expenditure in 2021 (in millions): $2,310 Total overnight visitors in 2021 (in thousands): 1,435 Norway's stunning scenery and hikes attract millions of visitors every year, and it is also counted among the most expensive countries to visit for foreigners.
Total expenditure in 2021 (in millions): $2,334 Total overnight visitors in 2021 (in thousands): 891 The Bahamas attract a lot of tourists every year, so much so that the country is likely to increase its tourist tax.
Total expenditure in 2021 (in millions): $2,427 Total overnight visitors in 2021 (in thousands): 397 Israel is likely to fall off the list of the most popular countries in the world, after a major assault by Hamas led to Israel declaring war. Right now, many major airlines have suspended flights to Israel.
Total expenditure in 2021 (in millions): $2,480 Total overnight visitors in 2021 (in thousands): 5,515 While not considered to be among traditional tourism destinations, Albania has started to see more tourists visiting the country, with its beauty and affordability making it a very attractive proposition.
Total expenditure in 2021 (in millions): $2,601 Total overnight visitors in 2021 (in thousands): 518 Ethiopia's civil war is threatening the influx of tourists into the country, but officials expect to see a greater influx of tourists, especially from China.
Total expenditure in 2021 (in millions): $2,734 Total overnight visitors in 2021 (in thousands): 2,300 While tourism in Bulgaria is continuing to improve, it is still not up to pre-pandemic levels.
Total expenditure in 2021 (in millions): $2,803 Total overnight visitors in 2021 (in thousands): 2,755 Puerto Rico's popularity is threatening the existence of one of the only bioluminescent bays in the entire world.
Total expenditure in 2021 (in millions): $2,939 Total overnight visitors in 2021 (in thousands): 2,155 Latin America is continuing to grow and be counted among the most popular countries in the world and Colombia is no exception, with Medellin, Bogota, and Cartagena being some of the most popular destinations there.
Total expenditure in 2021 (in millions): $3,005 Total overnight visitors in 2021 (in thousands): 746 Brazil is one of the most popular destinations in Latin America and tourism in the country is continuing to grow, especially since the 2014 FIFA Football World Cup Finals were held there.
Total expenditure in 2021 (in millions): $3,162 Total overnight visitors in 2021 (in thousands): 890 Lebanon's tourism numbers are bound to suffer soon after Israel declared war on Gaza and Hezbollah in Lebanon launched missiles against Gaza too.
Total expenditure in 2021 (in millions): $3,356
Total overnight visitors in 2021 (in thousands): N/A Czech Republic is one of the most popular countries in Europe, and the world, with Prague considered to be one of the most visited countries in the world.
Total expenditure in 2021 (in millions): $3,426 Total overnight visitors in 2021 (in thousands): 2,012 Jordan is home to Petra, considered to be one of the wonders of the world, and recently has been offering a tourism project to investors which will be worth around $60 million to $90 million.
Total expenditure in 2021 (in millions): $3,490 Total overnight visitors in 2021 (in thousands): 1,322 Maldives is a popular honeymoon destination with its incredible resorts and water villas surrounding pristine beaches.
Total expenditure in 2021 (in millions): $3,525 Total overnight visitors in 2021 (in thousands): N/A Romania's tourism numbers from January to August 2023 increased by 12.3% year on year, part of which is attributed to Netflix's Wednesday TV show.
Total expenditure in 2021 (in millions): $3,607 Total overnight visitors in 2021 (in thousands): 618 Most tourists to Panama come from North and South American countries and is home to the first Waldorf Astoria opened in Latin America.
Total expenditure in 2021 (in millions): $4,639 Total overnight visitors in 2021 (in thousands): 3,477 A large portion of tourists to Saudi Arabia come there because of its importance to Islam, especially for the annual holy pilgrimage known as hajj.
Total expenditure in 2021 (in millions): $4,641 Total overnight visitors in 2021 (in thousands): 3,722 The most popular country in Africa, tourism in Morocco is one of the biggest contributors to foreign exchange in the country.
Total expenditure in 2021 (in millions): $5,206 Total overnight visitors in 2021 (in thousands): More people visit Ireland than its entire population, making it among the most popular countries in the world.
Total expenditure in 2021 (in millions): $5,225 Total overnight visitors in 2021 (in thousands): Japan delayed its opening after Covid-19, but has been swamped with tourists in 2023.
Total expenditure in 2021 (in millions): $5,276 Total overnight visitors in 2021 (in thousands): 428 Thailand is home to several popular islands and beaches, though a shooting in Bangkok and the war in Israel has seen tourism numbers fall in October 2023.
Total expenditure in 2021 (in millions): $5,584 Total overnight visitors in 2021 (in thousands): 756 Despite being a tiny country with less than a million people, Luxembourg is a very popular destination for tourists.
Total expenditure in 2021 (in millions): $5,783 Total overnight visitors in 2021 (in thousands): 7,929 In 2023, in just three months, Hungary saw more than 6.2 million enter the country in just 3 months, which beat pre-pandemic levels.
Total expenditure in 2021 (in millions): $6,314 Total overnight visitors in 2021 (in thousands): While Russia is counted among the most popular countries in the world, it's likely not going to be in this list in the future after its unprovoked invasion of Ukraine.
Total expenditure in 2021 (in millions): $7,336 Total overnight visitors in 2021 (in thousands): 3,243 Belgium is home to Bruges, a UNESCO World Heritage Site, which is one of the most popular destinations in the country.
Total expenditure in 2021 (in millions): $9,135 Total overnight visitors in 2021 (in thousands): 6,989 India is establishing itself on the global stage, and is home to many destinations which attract tourists from all over the world.
Total expenditure in 2021 (in millions): $9,499 Total overnight visitors in 2021 (in thousands): 11.700 Egypt is home to one of the only remaining ancient wonders of the world, and is also attractive for foreigners from advanced economies as the costs are much lower to visit.
Total expenditure in 2021 (in millions): $10,136 Total overnight visitors in 2021 (in thousands): 9,722 Poland is fast becoming an advanced economy with huge developments in just the last two decades, and cities such as Warsaw, Krakow, Gdansk and Wroclaw have contributed to it becoming one of the most popular countries in the world.
Total expenditure in 2021 (in millions): $10,535 Total overnight visitors in 2021 (in thousands): 6,248 Amsterdam receives more tourists than it can handle, and is looking to close a cruise ship terminal in a bid to reduce the number of tourists arriving to the city.
Total expenditure in 2021 (in millions): $10,891 Total overnight visitors in 2021 (in thousands): 10,641 Croatia received a surge in tourism after the popular TV show Game of Thrones was shot in locations and even postseason, its tourism boom has continued unabated.
Total expenditure in 2021 (in millions): $11,084 Total overnight visitors in 2021 (in thousands): 3,200 South Korea has launched an AI chatbot service to assist foreigners in planning a tour to the country.
Total expenditure in 2021 (in millions): $11,411 Total overnight visitors in 2021 (in thousands): 12,728 Austria is home to some of the most stunning towns in the world, with Halstatt being one of the most popular places to visit. Recently, locals have started protests against mass tourism as more than 10,000 tourists a day stroll the town on peak days.
Total expenditure in 2021 (in millions): $12,125 Total overnight visitors in 2021 (in thousands): 4,390 Considered to be one of the most beautiful countries in the world, Switzerland is also one of the most expensive countries to visit for foreigners, which is why while the total visitors may be lower, total expenditure in the country is still really high.
Total expenditure in 2021 (in millions): $13,666 Total overnight visitors in 2021 (in thousands): 14,705 Greece is well-known both because of its incredible history and being home to some of the most beautiful islands in the world.
Total expenditure in 2021 (in millions): $13,823 Total overnight visitors in 2021 (in thousands): 6,345 Portugal's tourism sector has rebounded really well in 2023, and in the first half, Portugal registered its best ever foreign tourism statistics.
Click to continue reading and see the 10 Most Popular Countries in the World in 2023. Suggested Articles:
Disclosure: None. 50 most popular countries in the world in 2023 is originally published on Insider Monkey.
