Report by global business data analyst firm GlobalData says that the activity in mergers and acquisitions in tourism sector dropped dramatically in first seven months of the current year, while China was the sole major market to register growth.

The total volume of mergers and acquisition deal activity in travel and tourism industry in the period January-July 2023 collapsed by 35.7 pc as compared with the corresponding period last year, says a report by GlobalData, a leading data and analytics company.

In a press statement, GlobalData says that the fall in tourism industry comes amidst a backdrop of challenging market conditions, when various industries are grappling with subdued deal activity.

The statement adds that an analysis of GlobalData’s Financial Deals Database reveals that 438 deals were announced in the travel and tourism industry globally during January-July 2023 compared to 681 during January-July 2022.

In fact, the top two markets by deals volume, the United States and the United Kingdom, saw respective deal volume reducing to almost half. The number of deals announced in the US fell by 45 pc from 218 to 120, says GlobalData, adding that the deal volume for the UK declined by 43.8 pc from 80 to 45.

India, Australia, France, South Korea, Japan, The Netherlands and Italy witnessed year-on-year decline in deal volume by 16.7 pc, 21.7 pc, 19 pc, 5.9 pc, 60 pc, 31.3 pc and 10 pc, respectively. 

In sharp contrast, however, China emerged as a notable exception and registered 12 pc YoY growth in deal volume, says GlobalData.

“Volatile economic conditions continued to impact the deal-making sentiments in the travel and tourism industry in 2023 with most of the top markets experiencing double-digit decline in deal volume,” says Aurojyoti Bose, Lead Analyst at GlobalData.

“While markets grappled with volatility, the contrasting trajectory of China’s deal volume demonstrates the industry’s inherent resilience. As the industry charts its course through uncertainty, it continues to unveil pockets of potential and prospects for revival,” adds Bose.

In terms of regions, Europe, Asia-Pacific, North America, Middle East and Africa and South and Central America witnessed YoY decline in deal volume by 44.8 pc, 14.4 pc, 44.6 pc, 13 pc, and 20 pc, respectively, during January-July 2023.

All the deal types under coverage witnessed YoY decline in deal activity. The number of mergers and acquisitions (M&A), private equity and venture financing deals declined by 37.5 pc, 36.8 pc and 29.7 pc, respectively, during January-July 2023.