The difficult global economic conditions and their implications for their impact on the travel and tourism sector deal activity were reflected in the first month of 2023. A total of 38 deals (including mergers and acquisitions, project financing and private equity deals) were announced in the sector globally in January 2023, which is a decrease Up 42.4% in terms of transaction volume compared to the previous month, GlobalData.
Aurojyoti Bose, Senior Analyst, GlobalData commented: “Deal sentiment in the global travel and tourism sector appears to have been strongly impacted by the current geopolitical tensions and recession fears. Deal volumes in several leading economies have seen a significant slowdown, which has contributed to the overall decline.”
An analysis of GlobalData’s financial deal database revealed that major markets such as the United States, United Kingdom, China, Australia and Japan experienced lower deal volumes in January 2023 compared to the previous month.
“With deal-making sentiment hurting in most major markets, all covered deal types also saw a decline,” Bose adds.
There was a decrease of 36.8%, 50%, and 50% in the number of M&A deals, project finance deals, and private equity deals announced during January 2023 compared to the previous month, respectively.