The Global Tourism Boom Is Shifting to Asia
Tourism has made a strong comeback this year, with international travel expected to surpass the numbers seen in 2019. The World Travel and Tourism Council (WTTC) also projects that tourist spending will exceed the levels recorded in that year. Cruises are once again popular, though the revival of mass tourism has led to protests in popular Western destinations like Barcelona and Majorca. Despite this, those within the travel industry, such as hoteliers and travel agents, are witnessing more significant developments further east.
Travel recovery in Asia was initially slower than in the West due to enduring stringent quarantine measures from countries like China to Malaysia, which kept visitor numbers low compared to Europe and America. Now, tourism in Asia is experiencing a robust resurgence. The WTTC anticipates a one-third increase in tourist arrivals to Asia this year, surpassing growth rates in any other region.
Industry leaders continue to report rapid growth in Asia. Michael Glover, the CFO of IHG, a hotel conglomerate, noted significant business increases in Thailand and Vietnam on August 6th. Similarly, on August 7th, Mark Galardo, an executive at Air Canada, mentioned that new routes to Seoul and Osaka were exceeding expectations.
The influx of Western tourists to Asia has significantly increased. The number of trips Americans took to Asia doubled last year, partly due to the strong performance of the dollar against Asian currencies. Catherine Heald, the head of Remote Lands, a luxury travel agency, noted increased interest in activities such as scuba diving near Indonesia’s Komodo Island, temple visits in Japan, and culinary tours through Thailand.
The diversity of destinations and activities in Asia is expanding. Luxury travelers can now enjoy journeys on the newly revamped Eastern & Oriental Express through Singapore and Malaysia, operated by Belmond, part of the French luxury group LVMH. Over 500,000 hotel rooms were under construction across Asia as of June, an increase of more than 4% from the previous year. Accessibility to Asia is also improving, with more flights being added by both regional and Western airlines. For instance, British Airways has resumed flights to Bangkok and Kuala Lumpur.
However, the most substantial growth in Asian tourism is driven by the region's own travelers. Chinese tourists have resumed international travel, with their overseas trips expected to double this year, though they will still remain below pre-pandemic levels. Most of these trips are to nearby East and Southeast Asian destinations.
Thanks to rising disposable incomes, Indian tourists are also traveling abroad more frequently. They spent about $20 billion on international travel in the year ending March, which is more than three times the amount from five years earlier. Many prefer to travel within the region, facilitated by easier visa processes. As their financial resources grow, Indian tourists are poised to become major global spenders, with projections suggesting that by the end of the decade, only Americans and Chinese will spend more on international travel. The surge in Asian tourism is just beginning, promising continued growth and expansion.
