Travel and Tourism Deal Activity Slows in 2025, but Regional and M&A Resilience Offer Hope
The global travel and tourism sector experienced a notable slowdown in deal activity during 2025, with the total number of transactions—including mergers and acquisitions (M& A), private equity, and venture financing—declining by 5% compared to 2024. This subdued performance, highlighted by GlobalData, reflects the impact of persistent economic uncertainties that have dampened investor sentiment and reshaped deal-making strategies across the industry.
While the overall volume of deals faced headwinds, the picture was far from uniform across regions. The Asia-Pacific region saw a 4% dip in deal activity, while Europe experienced a more pronounced 17% decrease, underscoring the effects of ongoing economic and geopolitical pressures. In contrast, North America bucked the global trend, registering an 8% increase in deal volume, driven by renewed activity in key markets such as the US and Canada. Meanwhile, deal activity in the Middle East and Africa, as well as South and Central America, remained largely stable, suggesting pockets of resilience despite the broader downturn.
A closer look at individual markets reveals further disparities. While the US and Canada posted growth in deal volume, countries like India, China, Spain, and Germany saw declines. Other markets, including the UK, Japan, and Australia, maintained deal volumes at levels similar to 2024. This wide variation highlights the existence of localized opportunities even as global challenges persist, with some regions and sectors demonstrating greater adaptability and investor confidence.
Examining the types of deals, the sector saw a mixed performance. M& A activity remained relatively stable, with deal volumes holding steady compared to the previous year. This suggests that, despite caution, companies are still pursuing strategic acquisitions and consolidations to drive growth and transformation [[2]](https://www.hospitalitynet.org/news/4128374.html). However, venture financing and private equity deals experienced sharper declines—down 21% and 28% respectively—reflecting tighter capital availability and a more risk-averse investment climate. The overall trend points to a shift in investor priorities, with a greater emphasis on established businesses and less appetite for high-risk, early-stage ventures.
For Africa’s travel industry professionals, these trends offer both caution and opportunity. The relative stability in deal activity across the Middle East and Africa signals that the region remains attractive for certain types of investment, particularly where local market fundamentals are strong. At the same time, the global slowdown in venture and private equity funding underscores the need for robust business models and clear value propositions to attract capital in a more selective environment.
As dealmakers navigate a landscape shaped by inflation, interest rate volatility, and shifting consumer preferences, the sector’s future will depend on the ability to identify and capitalize on localized growth opportunities. For African tourism stakeholders, this means focusing on strategic partnerships, operational resilience, and innovative product offerings that can withstand global headwinds and appeal to both regional and international investors.
Ultimately, while 2025 brought a dip in overall deal activity, the resilience of M& A and the emergence of regional bright spots suggest that the travel and tourism sector is recalibrating rather than retreating. The coming years will likely reward those who can adapt quickly, leverage local strengths, and maintain a clear vision for sustainable growth in an evolving investment landscape.
