GlobalData reveals decrease in Australian tourism sector deal activity

GlobalData, a leading data and analytics company, has revealed that the travel and tourism sector deal activity is down by 38.8% year on year for the first half of 2023 with Australia among the several key markets to experience slowdown.

A total of 365 deals (mergers & acquisitions, private equity, and venture financing deals) were announced in the travel and tourism sector globally during the first half (H1) of 2023, which was a decline of 38.8% compared to 596 deals announced during the same period in the previous year, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database also revealed that all the deal types under coverage witnessed decline in deal activity. The numbers of mergers and acquisitions (M&A), private equity and venture financing deals declined by 41.6%, 33.3% and 30.4%, respectively, year-on-year (YoY) during H1 2023 compared to H1 2022.

Australia was among the several key markets to experience slowdown in travel and tourism sector related deal activity during H1 2023 compared to H1 2022 witnessing a decline in deals volume by 21.1%. The US, the UK, India, France, South Korea, Japan, and Spain also witnessed decline in deals volume by 47.7%, 44.8%, 21.4%, 33.3%, 20%, 62.1% and 69.2%, respectively, during H1 2023 compared to H1 2022.

Meanwhile, China emerged as a notable exception to the declining trend and saw 18.2% growth in the announcement of deals for the travel and tourism sector during H1 2023 compared to H1 2022.

Aurojyoti Bose, Lead Analyst at GlobalData shared “Several global economies are experiencing distressed deal activity in the travel and tourism sector. There are several factors affecting the deal activity and notable among them include rising interest rates, looming fear of recession and the ongoing geopolitical tensions.”

Europe region accounted for the highest share of the number of deals announced in the travel and tourism sector globally followed by Asia-Pacific, North America, Middle East and Africa, and South and Central America.

While Europe witnessed 46% YoY decline in deal volume, Asia-Pacific, North America, Middle East and Africa and South and Central America regions witnessed decline in deals volume by 19%, 47.6%, 20% and 23.1%, respectively, during H1 2023 compared to H1 2022.

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.

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Image. Australia’s launch of the Come and Say G’Day campaign. In June 2023, a group of senior Australian tourism industry stakeholders visited China ahead of the Chinese launch of the Come and Say G’Day campaign.The delegation included Tourism Australia Managing Director, Phillipa Harrison, State and Territory tourism organisation leaders, business events leaders and airport representatives. Harrison advised “China is such an important market for Australia’s visitor economy and that’s why the timing of this visit with tourism and business events industry leaders is so critical as we welcome the return of Chinese travellers."