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 percent, 33.3 percent and 30.4 percent, respectively, year-on-year (YoY) during H1 of this year compared to H1, 2022.

Aurojyoti Bose, lead analyst, GlobalData, commented, “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 percent 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 percent, 47.6 percent, 20 percent and 23.1 percent, respectively, during H1 2023 compared to H1 2022.

Several key markets recorded slowdown in travel and tourism sector related deal activity during H1 of this year compared to H1 2022. For instance, the US, the UK, India, Australia, France, South Korea, Japan, and Spain witnessed decline in deals volume by 47.7 percent, 44.8 percent, 21.4 percent, 21.1 percent, 33.3 percent, 20 percent, 62.1 percent and 69.2 percent, respectively, during H1 of the is year compared to H1 2022.

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