Global Travel and Tourism Sector Deal Activity Down

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LONDON — A total of 666 deals (mergers & acquisitions (M&A), private equity and venture financing were recorded in the travel-and-tourism sector globally from January to November 2023, which is a year-on-year (YOY) decline of 32.7 per cent compared to 989 deals during the same period in the previous year, reports GlobalData.

“The global travel-and-tourism sector persistently exhibited a declining trend in deal activity throughout the year. Geopolitical tensions, ongoing wars and associated macro-economic challenges largely affected the deal-making sentiments in the sector,” says Aurojyoti Bose, lead analyst at GlobalData.

GlobalData has revealed that deal activity for all regions and most of the countries suffered setbacks. North America witnessed a 43.2-per-cent decline in deals volume compared to the same period in the previous year. Similarly, the number of deals in the Europe, Asia-Pacific, Middle East and Africa and South and Central American regions also fell by 36.7 per cent, 15.2 per cent, 20.5 per cent and 42.3 per cent, respectively.

Meanwhile, key global markets such as the U.S., the U.K., China, Japan, France, South Korea, Australia, Spain and the Netherlands witnessed YOY decline in deals volume by 44.1 per cent, 29.5 per cent, 4.5 per cent, 46.9 per cent, 20.7 per cent, 26.7 per cent, 30 per cent, 56.8 per cent and 35 per cent, respectively.

Overall, the number of M&A deals declined by 34.6 per cent, while the volume of private-equity deals and venture-financing deals registered YOY decline of 31 per cent and 26.3 per cent, respectively.

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