Asian tourism tiger drives the world travel industry

The phenomenal rise of Asian tourists is boosting many economies in this region and beyond as they start to travel around the world in big numbers. Analysts predict this is a lasting trend and the potential clout of Asian tourists is enormous.

Asian countries are also hosting more Asian tourists flying on short-haul routes, often on budget carriers. The region has experienced an increase in investment to accommodate the larger crowds, including hotels, restaurants and shopping malls.

Amid the slow economic recovery in the US and uncertainty in the euro zone Asian travellers are doing their part to help these economies. Chinese tourists shopping in the US and Europe spend more on brand-name bags, shoes, clothes and accessories than for entrance fees to museums. Hotels ranging from two- to six-stars, restaurants and tour guides are counting the money as Asian tourists flock to the West.

Rajiv Biswas, senior director and Asia-Pacific chief economist with IHS, expects Asia-Pacific to have the highest economic growth of any destination for the next two decades, averaging 8% per annum. The..combined GDP of this region is US$2.3 trillion, but it is expected to reach copy0 trillion by 2030.

Given this strong economic foundation, urbanisation will also expand rapidly, boosting the middle class population from 500 million in 2010 to 3 billion in 2030. The growth of the middle class should fuel… the tourism industry in this region as well. Even countries with struggling economies such as India will still reap the benefits from the tourism boom, in both outbound and inbound tourism. Newly emerging… economies like Myanmar can use the tourism sector to drive development, said Mr Biswas.

“Between 2005 and 2012, the tourism industry in Asia-Pacific grew 6% per year, driven by Southeast Asia. In the future growth is going to continue because of the surge in middle-class income and the rapid growth of budget airlines,” he said. He added China is driving the industry. The number of international trips by Chinese travellers rose from 10 million in 2000 to 83 million in 2012. In the first.. months of 2013, Chinese international tourism visits rose an estimated 17% compared to the same period a year ago. The size of the domestic tourism industry in China in 2012 was estimated at $408 billion, up 15% on the previous year. The Chinese government has forecast a further 11% rise in the domestic tourism market in 2013. International inbound tourism into China was estimated at $48.5 billion in 2012. Though last year things seemed slightly grim, it is expected things are going to improve very soon.