A total of 1,006 deals - including mergers and acquisitions, private equity and venture financing deals. were announced in the global travel and tourism sector last year, which is down 3.4% when compared to the total of 1,041 deals announced in 2021, according to GlobalData, a leading data and analytics company.

 

Deals under coverage including venture financing and private equity deals which witnessed declines of 23.7% and 21.8% respectively during 2022 compared to the previous year, while merger and acquisition deals volume increased by 10.7%, stated the report.

 

China, India, Australia and Spain registered a major drop in deals volume by 5.7%, 25%, 17.9% and 2.9% respectively in 2022, compared to the previous year. 

 

Meanwhile, the UK, Germany, France, and Japan managed to register growth in deals volume by 15.8%, 33.3%, 3.7% and 10.9% during 2022 compared to 2021, respectively, said the report.

 

Aurojyoti Bose, the Lead Analyst at GlobalData, said: "Geopolitical tensions and economic challenges seem to have impacted deal-making sentiments for the sector. Resultantly, deal activity slowed down in several key markets."

 

"For instance, the US, which also happens to be the top market by deals volume, experienced a 2.8% decline in deal activity in 2022 compared to 2021. Several other key global markets also experienced a negative shift in deals volume, which contributed to the overall decline," he added.-TradeArabia News Service