TORONTO — A total of 265 deals (mergers and acquisitions, private equity and venture financing deals) have been announced in the travel-and-tourism sector globally during the first half (H1) of 2023, which represents a decline of 38.8 per cent compared to 596 deals during the same period in the previous year, according to GlobalData.
An analysis of GlobalData’s Financial Deals Database also reveals that all the deal types under coverage witnessed decline in activity. The number of M&A, private equity and venture financing deals declined by 41.6 per cent, 33.3 per cent and 30.4 per cent respectively YOY during H1 2023 compared to H1 2022.
The Europe region accounted for the highest share of the number of deals, followed by Asia-Pacific, North America, Middle East and Africa and South and Central America.
While Europe witnessed 46-per-cent decline YOY in deal volume, Asia-Pacific, North America, Middle East and Africa and South and Central American regions witnessed a decline in deals volume by 19 per cent, 47.6 per cent, 20 per cent and 23.1 per cent respectively during H1 2023 compared to H1 2022.
Additionally, several key markets recorded a slowdown in deal activity, including the U.S., the U.K., India, Australia, France, South Korea, Japan and Spain by 47.7 per cent, 44.8 per cent, 21.4 per cent, 21.1 per cent, 33.3 per cent, 20 per cent, 62.1 per cent and 69.2 per cent respectively. Meanwhile, China emerged as a notable exception to the declining trend and saw 18.2-per-cent growth.
“Several global economies are experiencing distressed deal activity in the travel and tourism sector. There are several factors affecting the deal activity and notable among them include rising interest rates, looming fear of recession and the ongoing geopolitical tensions,” says Aurojyoti Bose, lead analyst at GlobalData.