What is inbound tourism explained and why does it matter?

Inbound tourism is an important type of tourism. Many countries rely heavily on the demand from inbound tourists to fuel the development and operations of their tourism economy.

But what does it actually mean to be an inbound tourist? In this article, I explain what is meant by the term inbound tourism, look at how it is defined and discuss the advantages and disadvantages of inbound tourism. Lastly, I provide examples of destinations with large inbound tourism markets.

What is inbound tourism?

Inbound tourism is when someone travels to a country other than the one in which they live, for the purpose of tourism. From the point of view of the destination, these visitors are inbound tourists. From the point of view of their home country, the same trip counts as outbound tourism.

Diagram showing the forms of tourism: domestic, inbound and outbound

Many countries around the world rely on inbound tourism. It is one of the main forms of international tourism, and UN Tourism recorded 1.52 billion international tourist arrivals worldwide in 2025.

Inbound tourism is often seasonal, meaning that many destinations will have evident peak, shoulder and low seasons. This often depends on weather conditions (for example sun or snow) and school and public holidays.

Video: Inbound, outbound and international tourism explained

Inbound, Outbound & International Tourism | The 3 Major Types Of Tourism Made SIMPLE

Inbound tourism definitions

The most widely used definition of tourism, proposed by the World Tourism Organization (UN Tourism, now known as UN Tourism) and the United Nations Statistics Division (1994), states that to qualify as a tourist, a person must travel to and stay in a place outside their usual environment for not more than one consecutive year for leisure, business or other purposes.

When considering inbound tourism, it therefore makes sense to simply add the requirement of travelling to another country.

Based on this commonly accepted definition (although it is not without its limitations, as discussed in this article on the definition of tourism), inbound tourism can be defined as:

‘The act of travelling to another country for not more than one consecutive year for leisure, business or other purposes.’

The importance of inbound tourism

Inbound tourism is incredibly important in many destinations.

This is largely because of the economic benefits of tourism. Tourism can bring in a lot of money to a country through foreign exchange. Foreign visitor spending counts as an export, and it is particularly valuable in countries where the currency is weaker than the currency of the tourists‘ home countries.

It is for this reason that many countries target their marketing towards certain nationalities. China, the United States, Germany and the United Kingdom are among the largest outbound tourism markets in the world by spending, so many destinations work hard to attract visitors from these countries. Destinations also target fast-growing markets such as India and the Middle East.

However, over-dependence on inbound tourism can be risky for destinations. There are many destinations, such as the Maldives, Spain and Greece, that rely heavily on people travelling from other countries to their country for tourism.

The problem occurs when the travel industry is disrupted. This was clearly demonstrated during the COVID-19 pandemic, when international tourist arrivals fell by around 70% in 2020 and destinations that depended on overseas visitors were hit especially hard.

Inbound tourism can also be negatively affected by other factors, such as political unrest, natural disasters or economic instability.

In order to ensure sustainable tourism principles are adopted, destinations ideally need to diversify their tourism product to appeal to both the domestic tourism market and the inbound tourism market.

UK inbound tourism

The United Kingdom has a sizeable inbound tourism industry.

Inbound tourism creates jobs and boosts the economy throughout the country, from London’s attractions to the Scottish Highlands.

According to final estimates published by VisitBritain, there were 42.6 million inbound visits to the UK in 2024, and these visitors spent £32.5 billion. Visits were just 1% below pre-pandemic levels, while spending was 14% higher than in 2019 in cash terms.

The USA is the UK’s largest inbound market, both for visits (5.6 million) and spending (£7.3 billion) in 2024. France, Germany, the Republic of Ireland and Spain are also major markets by number of visits, while visitors from the Gulf states and Australia are among the highest spenders.

Inbound tourism markets around the world

Inbound tourism is a significant part of the tourism industry in many countries around the world. In 2025, Europe received 793 million international arrivals, more than half of the global total, followed by Asia and the Pacific (331 million) and the Americas (218 million).

For the latest global inbound tourism figures, see UN Tourism World Tourism Barometer.

Here are some destinations with large inbound tourism markets:

Spain

Spain is one of the most visited countries in the world. According to Spain’s National Statistics Institute (INE), a record 96.8 million international tourists visited Spain in 2025, 3.2% more than in 2024.

Most travellers to Spain come from Europe. The United Kingdom is the largest market, with 19.1 million visitors in 2025, followed by France (12.8 million) and Germany (12.0 million).

Spain is popular for its beach holidays, package holidays and city breaks to Barcelona, Madrid and Valencia, amongst others.

Maldives

The Maldives has a fast-growing tourism industry. The archipelago attracts visitors all year round, with most staying in island resorts, although guesthouses on local islands have become increasingly popular.

The Maldives welcomed a record 2.25 million tourists in 2025, an increase of almost 10% compared with 2024.

China was the largest source market in 2025 (14.7% of arrivals), followed by Russia (12.4%), the United Kingdom (9.0%), Germany and Italy. Tourism is the country’s largest industry and its main source of foreign exchange.

The Maldives is renowned for its luxury beach holidays, overwater villas, diving and snorkelling.

Thailand

Inbound tourism is one of the biggest economic activities in Thailand.

Thailand received almost 33 million foreign visitors in 2025, generating around 1.53 trillion baht in revenue. Malaysia (4.5 million) and China (4.5 million) were the largest source markets, followed by India, Russia and South Korea. Arrivals were lower than in 2024, showing how inbound tourism can be affected by factors such as safety concerns, exchange rates and regional competition.

There are many types of tourism found in Thailand and Thailand attracts a wide range of types of tourists, from backpackers to luxury travellers to business tourists.

Bali

Bali is another destination that is reliant on inbound tourism as a key economic contributor.

According to Statistics Indonesia (BPS), almost 6.95 million foreign tourists arrived directly in Bali in 2025, an increase of 9.7% compared with 2024.

Australia is by far Bali’s largest inbound market, accounting for 23.4% of foreign arrivals in 2025. Other important markets include India, China and the UK.

Bali is well-known for its beach escapes and cultural tourism.

Advantages of inbound tourism

There are many advantages of inbound tourism.

One advantage is that inbound tourism is less reliant on weekends than domestic tourism, because people tend to use their annual leave when they take holidays overseas and usually stay for longer.

Having an inbound tourism market that attracts tourists from a range of destinations can help to minimise risk and diversify income. This way, if for some reason one country does not send many tourists (for example due to political or economic problems) then the host country still has visitors arriving from other countries.

On average, inbound tourists spend more money per trip than domestic tourists. This money then helps to boost the economy of the host country through the tourism multiplier effect.

International trips are also typically booked further in advance than domestic trips. This gives tourism organisations more time to plan.

Foreign income can help to boost the economy of a country, which is why foreign tourists are often welcomed. This especially applies to tourists who come from destinations where the currency is strong (e.g. the UK, the USA, the Eurozone and Australia).

Disadvantages of inbound tourism

There are also some disadvantages of inbound tourism.

One of the main disadvantages of inbound tourism is that the destination is at the mercy of the transport network, particularly airlines and airports.

There are many cases of local tourism industries suffering because an airline has stopped operating a particular route, or because of strikes, airspace closures or rising air fares.

Inbound tourism can also lead to cultural clashes and, in some cases, cultural erosion. Very popular destinations may also experience overtourism, with pressure on housing, infrastructure and the environment.

For example, tourists who travel to Dubai are not always aware of local Islamic customs, and their behaviour can sometimes offend the local population. In Dubai, for instance, signs in shopping malls ask visitors to dress appropriately.

Inbound tourism: Conclusion

In conclusion, inbound tourism is a highly effective way for a country to earn money from tourism. It brings foreign exchange, jobs and investment, but it also makes destinations vulnerable to events beyond their control. With careful management and planning, and a balance between inbound and domestic markets, many countries throughout the world have built successful and thriving inbound tourism industries.

Inbound tourism: FAQs

Below are answers to some of the most common questions about inbound tourism.

What is inbound tourism?

Inbound tourism is when visitors from another country travel to a destination for leisure, business or other purposes, staying for no more than one consecutive year. For example, an American tourist visiting London is an inbound tourist for the UK.

What is the difference between inbound and outbound tourism?

Inbound tourism refers to international visitors arriving in a country, while outbound tourism refers to residents leaving their own country to travel abroad. The same trip is inbound for the destination and outbound for the traveller’s home country.

What is an example of inbound tourism?

A British family taking a beach holiday in Spain is an example of inbound tourism for Spain. The UK was Spain’s largest inbound market in 2025, with 19.1 million visitors.

Why is inbound tourism important?

Inbound tourism brings foreign exchange into a country, creates jobs, supports local businesses and generates tax revenue. Spending by international visitors is counted as an export.

What are the disadvantages of inbound tourism?

Destinations that rely on inbound tourism are vulnerable to pandemics, political unrest, natural disasters and changes in airline routes. Inbound tourism can also lead to cultural clashes and overtourism.

Which countries receive the most inbound tourists?

France, Spain, the United States, Italy and Türkiye are among the most visited countries in the world. Spain alone received a record 96.8 million international tourists in 2025.

Further reading on inbound tourism

  • An Introduction to Tourism: a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
  • The Business of Tourism Management: an introduction to key aspects of tourism, and to the practice of managing a tourism business.
  • Tourism Management: An Introduction: gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.
Dr Hayley Stainton

About the author

Dr Hayley Stainton is a tourism academic, examiner and the founder of Tourism Teacher. She has a PhD in tourism and more than 20 years’ experience teaching travel and tourism at school and university level. Read more about Hayley