2025 Floating Economy Tourism Index

Where Demand is Exploding in The Global Floating Economy

🌊 The Floating Tourism Surge
Good morning! The global travel landscape has shifted dramatically in recent years, and floating tourism is at the forefront of this transformation. As travelers increasingly seek off-the-beaten-path destinations, unique experiences, and escape from overcrowded tourist spots, the demand for floating tourism is rapidly expanding. From large cruise ships to exclusive overwater resorts and houseboats, more and more people are embracing water-based stays. Entrepreneurs, investors, and businesses have a golden opportunity to capitalize on this trend, which is expected to continue growing well into 2025 and beyond.

🚢 Cruise Tourism: Record-Breaking Growth
According to MarineLink, cruise tourism is roaring back, with a strong post-pandemic recovery driving the industry to new heights. In 2023, 31.7 million passengers boarded cruises, marking a 7% increase over 2019. By 2024, this number is expected to exceed 35 million, and the industry could reach nearly 40 million passengers by 2027. While the Caribbean remains a dominant player, Southeast Asia and Europe are emerging as new hotspots. For investors, this growth represents significant opportunities in port development, cruise ship expansions, and regional infrastructure improvements. The surge is also spurring innovations in AI-driven travel planning, enhancing the cruise experience, and optimizing operations.

šŸ’° Floating Hotels & Overwater Resorts: High Demand and Major Growth
Floating hotels and overwater resorts are among the most sought-after accommodations in the luxury tourism sector. With a market projected to reach $5.15 billion by 2025 and continue growing at a 6.9% annual rate, this segment is booming. The Maldives, French Polynesia, and the Caribbean have long been popular for overwater villas, but now new destinations such as the Bahamas, Panama, and even Dubai are jumping on the bandwagon. As demand outpaces supply, investors and developers have a prime opportunity to meet the growing need for luxury, water-based lodging options. These resorts are not just about luxury—they offer travelers the perfect blend of relaxation, adventure, and exclusivity. For entrepreneurs, the potential for building innovative, water-based resorts in emerging markets is vast. Read more

šŸ˜ļø Houseboats and Floating Airbnb Stays: The New Niche
Houseboats and floating Airbnbs are rapidly gaining popularity among travelers looking for unique stays on the water. Cities like Amsterdam, Paris, and London are witnessing increasing demand for houseboat rentals, with occupancy rates often surpassing those of traditional hotels. In the U.S., houseboats in places like the Florida Keys, Seattle’s Lake Union, and New York’s Hudson River are also experiencing high demand. With the rise of the ā€œAirbnb-ificationā€ of travel, houseboat rentals are now seen as a lucrative niche in the vacation rental market. This trend is not only about novelty—it’s about creating unforgettable experiences on the water that guests are willing to pay a premium for. Entrepreneurs looking to tap into this niche can profit by offering high-quality, well-designed floating rentals, particularly in cities and destinations with waterfront access.

Source: Skift Research; McKinsey analysis; McKinsey & Company

šŸŒ AI and the Future of Travel: A Game-Changer for Floating Tourism
AI is transforming how travelers plan and book their trips, and the floating tourism sector is no exception. As travelers increasingly turn to AI-powered tools for trip planning, the floating tourism industry has a prime opportunity to adopt these technologies. From personalized itineraries to predictive pricing models, AI is optimizing the customer experience, helping businesses enhance their offerings, and streamlining operations. This trend is especially relevant for cruise lines and floating hotels that want to cater to the next generation of tech-savvy travelers. AI-enabled chatbots, data-driven recommendations, and AI-generated travel planning are enhancing the floating tourism experience. Businesses that embrace AI now will be poised to lead the way as these tools continue to revolutionize the industry.

🌟 Marine Glamping & Novel Water-Based Concepts
Marine glamping is an exciting and rapidly growing segment within floating tourism. With wellness tourism and adventure travel on the rise, more travelers are seeking unique experiences that combine comfort with nature. Floating glamping sites, like Cambodia’s 4 Rivers Floating Lodge, are attracting eco-tourists seeking an off-the-grid escape. As the global glamping market grows, floating glamping is expected to capture a larger share. Similarly, innovative concepts like floating spas, yoga retreats, and mobile marine hotels are becoming more popular. For entrepreneurs, this represents an opportunity to capitalize on travelers’ growing desire for unique and Instagram-worthy experiences. By creating high-end floating accommodations in scenic locations, businesses can tap into a market that is hungry for new, immersive travel experiences. Read more

Source: US Bureau of Economic Analysis; McKinsey analysis

šŸ“ˆ Sustainable Travel: A Growing Priority
As travelers prioritize self-care, there’s a growing movement towards sustainable travel. More tourists—especially Millennials and Gen Zers—are actively seeking ways to reduce their environmental impact, from traveling during off-peak seasons to choosing hotels and airlines with strong sustainability credentials. This is where floating tourism comes into play. Floating resorts and hotels, which are often built over water rather than land, offer a unique opportunity to grow tourism while reducing the footprint of traditional land-based developments. Many destinations are now using floating structures as a way to boost tourism without consuming valuable land resources. From eco-friendly houseboats to floating hotels powered by renewable energy, sustainability is becoming a key driver in the sector. The trend towards sustainable travel is not only beneficial for the environment—it also opens up new avenues for investment and innovation.

šŸš€ Why Entrepreneurs Should Act Now
The floating tourism industry is bursting with opportunities, and entrepreneurs who act now can capitalize on this boom. From cruise line expansions to the rise of floating hotels, houseboats, and unique concepts like marine glamping, the possibilities are endless. Travelers are more interested than ever in unique, luxurious, and sustainable travel experiences, and businesses that can deliver on these expectations are poised for success.

The use of AI in travel planning, personalization, and optimization will also provide entrepreneurs with tools to meet customer needs more effectively. With demand outstripping supply in many regions, the time to invest in floating tourism is now. From launching new hotels to creating AI-driven travel experiences, there’s no shortage of ways to get involved in this dynamic sector.

šŸ“‰ Economic Impact & Future Projections
The global travel and tourism industry is projected to grow to $1.11tn by 2029, growing at an annual rate of 3.9%. The floating tourism sector is a significant contributor to this growth. As demand for unique water-based stays continues to rise, regions and cities investing in floating hotels, resorts, and cruise infrastructure will see substantial economic benefits. Local economies will benefit from increased tourism revenue, job creation, and infrastructure development. As floating tourism continues to expand, the positive economic impact on coastal destinations and waterfront communities will only continue to grow.

The Floating Institute is focused on finding opportunities in these spaces.

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