Travel Guides & Articles
Now, Greece Goes Arm in Arm with the United States, Brazil, Canada, Thailand, Argentina, and India as Global Tourism Giants Face New Earnings Plunge Amid Rise of Frugal Travel
Thursday, July 17, 2025
Greece goes arm in arm with the United States, Thailand, Argentina, Brazil, Canada, and India as global tourism giants face a new earnings plunge amid the rise of frugal travel, driven by shorter stays, shrinking visitor budgets, and shifting travel behaviors that are reshaping the economics of international tourism. Giant destinations, such as the aforementioned acreages, do produce large numbers of visitors. However, there is a perilous gap between the number of visitors and the money they spend. A harmful global trend emerges where additional tourists do not translate to more income – urging states to redesign methods of luring high-spend sprees in a money-focused society.
Greece Battles Falling Per Visitor Spend Despite Booming Arrivals
In 2024, Greece welcomed a record-breaking 40.7 million visitors, a massive leap from 15 million in 2010. However, according to Eurobank’s Economic Analysis and Research Unit, the average tourist now spends significantly less. Revenue per traveler has fallen to €530.6, down from €640.4 in 2010. Real tourism income has dropped by 1.6% compared to 2019 levels when adjusted for inflation.
Average stay duration also dropped—from 9.3 nights in 2010 to just 5.9 nights in 2024—cutting deeper into earnings. While nominal tourism revenue reached €21.6 billion in 2024, it still lags in real value terms. The data reflects a troubling trend: more tourists, shorter stays, and lower spending.
United States Sees Billions Slip Away from Travel Economy
The United States is expected to lose $12.5 billion in international tourism revenue in 2025, according to the World Travel & Tourism Council. That marks a 7% drop from 2024 levels and leaves the U.S. nearly 22% below its pre-pandemic peak. It is the only country among 184 global economies forecast to post a tourism revenue decline this year.
Analysts blame strict visa policies, political tensions, and the rise of less favorable exchange rates. Despite healthy domestic travel numbers, foreign visitors are contributing less to overall earnings. The U.S. travel industry is now reassessing marketing and policy strategies to recover lost ground.
Thailand Struggles with Fewer Chinese Tourists and Revenue Slump
Thailand’s long-standing reliance on Chinese travelers is turning into a liability. The country recorded a 5% drop in tourist arrivals in the first half of 2025, with a staggering one-third decline from Chinese visitors alone. That dip has translated directly into lost earnings.
Despite ongoing promotions and visa waivers, revenue from tourism remains under pressure as average per capita spending decreases. Visitors are also choosing shorter trips and budget options, cutting into Thailand’s hospitality and retail sectors.
Argentina’s Currency Surge Makes Tourism Less Attractive
Argentina, known for its affordability, saw a sharp reversal in fortune as a rising peso made the country significantly more expensive for foreign travelers. Tourist overnight stays dropped by 20.2% in the latest season, resulting in a noticeable drop in tourism earnings.
The government’s efforts to tame inflation led to a strong currency, which in turn made hotels, food, and attractions costlier for international visitors. As prices rise and budget travelers turn away, Argentina’s tourism-dependent regions are already feeling the pinch.
Brazil’s Tourism Sector Falters Amid Slow Recovery
Brazil’s tourism industry, once a bright spot in South America, continues to recover slowly from its pandemic-era collapse. While visitor numbers have picked up since 2020, earnings have not returned to previous highs.
Tourism GDP dropped by more than half during the pandemic, and although events like Carnival still draw crowds, the average tourist is spending less. Domestic economic uncertainty and weak infrastructure in some regions contribute to the uneven recovery.
Canada Reports Cross-Border Travel Decline and Spending Lag
Canada’s tourism earnings are also under stress, particularly from a noticeable decline in American cross-border visitors. Recent data shows a 15% drop in U.S. tourists entering Canada in April 2025. That dip has a direct effect on revenues from accommodation, dining, and leisure services.
Though Canada remains attractive for nature-based travel, higher costs and long airport wait times have discouraged international spending. Canadian tourism boards are ramping up regional campaigns to attract higher-spending long-haul travelers.
India Sees Tourist Spending Level Off After Strong Rebound
India posted a robust recovery in 2023, with foreign exchange earnings (FEE) from tourism growing to $28 billion—a 31.5% increase over the prior year. But early 2025 indicators show that growth may be plateauing. While tourist arrivals continue to rise, per-visitor spending is not growing at the same pace.
Shorter itineraries, budget travel patterns, and competition from regional destinations like Sri Lanka and the UAE are factors behind this earnings slowdown. The Indian tourism ministry is now focusing on luxury tourism and wellness retreats to encourage higher spending.
Rise of Frugal Travel Reshaping Global Tourism
The common thread across all these countries is the growing dominance of what experts now call “frugal travel.” Tourists are seeking value over luxury, often spending less per night, booking shorter stays, and avoiding high-cost destinations. Economic uncertainty, inflation, and post-pandemic caution are all feeding into this pattern.
While the number of global travelers has surged past pre-pandemic levels, tourism receipts in many top destinations have either stalled or declined. This signals a clear shift: quantity no longer guarantees profitability. Unless destinations adapt their tourism models toward quality, sustainability, and higher-value offerings, revenue growth will remain elusive.
Greece joins forces with the United States, Thailand, Argentina, Brazil, Canada and India a new earnings plunge is faced by the global tourism giants after a steep increase in frugal travel, in which tourists ease off the gas and spend less, stay for less and prefer the budget over the expensive. This change has resulted in a decrease in revenues even while the numbers of tourists visiting are robust, or rising.
Greece’s current tourism paradox—more visitors but less revenue—mirrors a larger global phenomenon affecting some of the world’s biggest travel economies. From North America to South Asia, countries like the United States, Thailand, Argentina, Brazil, Canada, and India are all navigating this new era of travel shaped by frugal spending, shorter trips, and shifting priorities. With tourism revenue under pressure, governments and stakeholders must innovate to capture not just more tourists, but better-spending ones.
India based travel distribution platform TBO has agreed to acquire Classic Vacations from Phoenix-based investment firm, The Najafi Companies.
The transaction value is estimated at up to $125 million.
The acquisition brings together TBO’s technology platform and worldwide inventory with Classic Vacations network of luxury travel advisors and suppliers.
Classic Vacations delivered revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended December 31, 2024.
“We’re thrilled to bring Classic Vacations into the TBO family – the company’s longstanding delivery of outstanding services has earned the trust of its more than 10,000 travel advisors in the U.S,” said Gaurav Bhatnagar, TBO’s co-founder and joint managing director.
“Classic Vacations is led by a strong team of experts and will continue as an independent brand.”
“As we start working on integrating Classic Vacations with TBO, we will remain open to similar strategic alliances going forward,” added Ankush Nijhawan, co-founder and co-managing director.
Melissa Krueger, CEO of Classic Vacations, added: “Together, we’re strengthening Classic Vacations’ position as the premier luxury partner in the market while extending our reach onto the global stage.”
Classic Vacations was bought by The Najafi Companies in 2021 from Expedia Group.
Classic Vacations has a large network of high-value travel advisors and deep ties with major American consortia.
It delivers premium service across hotels, air, experiences, car rentals, and travel protection, specializing in bespoke luxury itineraries.
Related News Stories: Partner News – TravelMole
The Union Home Ministry on Monday, September 1, issued an order announcing that the government now exempts minority communities, namely, Hindu, Sikh, Buddhist, Jain, Parsi and Christian fleeing religious persecution from Afghanistan, Bangladesh, and Pakistan, who entered the country by December 31, 2024, without requiring valid passports or travel documents.
“A person belonging to a minority community in Afghanistan, Bangladesh and Pakistan, namely, Hindu, Sikh, Buddhist, Jain, Parsi and Christian, who was compelled to seek shelter in India due to religious persecution or fear of religious persecution and entered into India on or before the 31st December, 2024,” read the order from the home ministry.
Interestingly, the order did not name Muslims. This is in line with the BJP-led government’s Citizenship Amendment Act (CAA) that was passed in 2019 to facilitate this. It had le to severe protests from Muslims and other citizens who said the law is discriminatory in nature and that it can also be misused to disenfranchise Muslims in the country.
In fact, over the last few months the central government and BJP-led state governments have been targeting Indian Muslims from West Bengal who were being picked up on false allegations of being Bangladeshi citizens. Several prominent activists including Umar Khalid and Sharjeel Imam are currently in jail having spent nearly five years in prison on charges of inciting riots in Delhi amid the anti-CAA protests.
It was issued as part of a series of directives made public by the Union Home Ministry, under the newly enacted Immigration and Foreigners Act, 2025, which came into effect on Monday, September 1.
The Immigration and Foreigners Bill, 2025, aims to grant the Union government the power to control the entry and exit of individuals into and from India by regulations that outline requirements for travel documents, such as passports, and govern various aspects of foreign nationals’ stay, including visa rules, registration procedures, and other related matters.
Previously, the Citizenship Amendment Act (CAA), which was enforced last year, extended the eligibility for citizenship only to non-Muslim minorities from Afghanistan, Bangladesh, and Pakistan who entered India on or before December 31, 2014.
While the recent directive allows certain individuals to stay in India without documentation if they arrived by December 31, 2024, it doesn’t guarantee citizenship.
In contrast, the 2019 Citizenship Amendment Act offers a path to citizenship for persecuted non-Muslim minorities from Pakistan, Afghanistan, and Bangladesh who entered India before December 2014.
The CAA’s exclusion of Muslims sparked widespread protests and concerns about discrimination, secularism, and potential disenfranchisement.
India is a haven for eco-conscious travelers seeking sustainable travel experiences. From lush rainforests to pristine Himalayan valleys, these are the places where natural beauty and responsible tourism go hand in hand. Here is a list of India’s greenest escapes, ideal for travelers who wish to explore and make the most of the outdoors while minimizing their environmental impact.
Mawlynnong, Meghalaya
Known as Asia’s Cleanest Village, Mawlynnong in Meghalaya is a model of sustainable living. Look around you and you will find bamboo dustbins. People do not litter here and they expect the tourists also to respect the village’s ways and not litter. Plastic is banned here. Take out time to explore the living root bridges, and interact with the local community. There are eco-lodges and homestays where visitors can stay, these stays offer authentic experiences.
Thenmala, Kerala
This is India’s first planned eco-tourism destination, Thenmala in Kerala’s Western Ghats offers a sustainable escape amidst evergreen forests. Also known as “Honey Hill,” it features attractions like the Thenmala Dam, Butterfly Safari Park, and Shenduruney Wildlife Sanctuary. For those interested, there are activities like boating, trekking, and rock climbing.
Sikkim
The entire state of Sikkim is a beacon of eco-tourism. Sikkim is recognized for its organic farming and conservation efforts. No wonder, it is also India’s first fully organic state. Sikkim is home to the Khangchendzonga National Park, a UNESCO World Heritage Site, which also boasts diverse flora and fauna, including red pandas and snow leopards. There is no dearth of eco-friendly guesthouses, responsible trekking opportunities, and cultural immersion with Lepcha and Bhutia communities. And last but not least, Sikkim is very clean, thanks to the eco-conscious communities.
Munnar, Kerala
Munnar in Kerala’s Western Ghats, is known for its tea plantations, lush valleys, and biodiversity. It is where you will find the rare Neelakurinji flower and species like the Nilgiri Tahr. Munnar is a great place for those seeking romantic getaways, but it is equally perfect for those seeking adventure activities like trekking and wildlife watching. Eco-resorts and sustainable practices, like waste management and local sourcing, ensure a low environmental footprint.
Spiti Valley, Himachal Pradesh
Monsoon may not be the right time to visit Spiti Valley, but come drier months, Spiti is one of the best in the country. This cold desert in the Himalayas, balances tourism with ecological preservation. Solar-powered homestays and community-based tourism initiatives support local livelihoods while protecting the fragile ecosystem. Travelers can explore ancient monasteries, trek through rugged terrains, and engage with sustainable practices, making Spiti a unique eco-destination. Here, it’s all about green energy and sustainable practices, because the greenery that comes with nature is a bit rare here, thanks to it being a cold desert.
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