SINGAPORE 20 May 2024: The global travel sector will break through the cracks in 2024 as consumer spending on tourism remains strong and passenger numbers soar, according to a new report from the Mastercard Economic Institute (MEI). It will be.
Released last week, MEI’s fifth annual report, Travel Trends 2024: Breaking the Boundaries, provides comprehensive insight into the evolving landscape of the travel industry across 74 markets, including 13 markets.[1] In the Asia Pacific region (APAC).
Despite fluctuations in exchange rates and changing affordability levels, travel is booming. Nine of the past 10 record spending days in the global cruise and airline industries have occurred this year. Looking ahead, MEI expects this momentum to continue as consumers around the world prioritize meaningful experiences and allocate more of their budgets to travel.
Here in the Asia-Pacific region, several themes stand out
Japan has risen to the top as the world’s trending destination as it welcomed a record 3,081,600 international visitors in March 2024, even before the peak travel season began (0.9% (up 0.4% in Ireland). Driven by the weaker yen (lowest since 1990), Japan’s favorable exchange rate is expected to continue to be a frontrunner in the tourism industry through 2024, providing support for Japanese businesses serving tourists and the local economy as a whole. expected to bring benefits.
Passenger traffic in APAC is on a recovery trend, especially for short-term intra-regional travel. For example, Bangkok, Kuala Lumpur and Perth are the top destinations for travelers from Singapore this summer.
Thailand’s tourism industry is expected to fully recover in 2024, with total visitor numbers currently only 7% below 2019 pre-pandemic levels, according to MEI.[3]. Notably, the number of incoming passengers from South Asia and the ASEAN region has increased by nearly 20% compared to 2019.
Mainland Chinese tourists recover
Travel dynamics in mainland China are changing, with more Chinese tourists prioritizing domestic travel over international travel.
The domestic tourism situation in mainland China is positive, with air passenger numbers fully normalizing and exceeding 2019 levels, benefiting local businesses. Meanwhile, the number of international tourists departing from mainland China continues to recover, currently at 80.3% of 2019 levels.
Further upward growth is expected in 2024, supported by visa waivers and increased international capacity in APAC and beyond, benefiting destinations such as Singapore, Malaysia and Thailand. .
More and more Indians are traveling
Fueled by a growing middle class, increased route capacity and strong appetite for travel, 2024 will be the year when more Indians will travel abroad than at any other time in history.
In the first three months of 2024, 97 million passengers flew through Indian airports. Just 10 years ago, it would have taken a full year to achieve the same numbers. As of March 2024, domestic passenger numbers have increased by 21% compared to 2019 levels, and international passenger numbers have increased by 4%.
Indian travelers to major markets will increase significantly in 2024 compared to 2019. Visitors to Japan increased by 53%, visitors to Vietnam increased by 248%, and visitors to the United States increased by 59% (total international arrivals to the United States remained 7% below 2019). It is worth noting that this is due mainly to the strengthening of the US dollar).
longer leisure
In APAC (excluding ANZ) in 2024, tourists will extend their trip by an average of 1.2 to 7.4 days, motivated by destination affordability, warm weather, and favorable exchange rates. This compares to an average of 6.1 days per trip in 2019.
In Australia and New Zealand (ANZ), the average length of stay for international visitors was 5.4 days, an increase of 0.6 days compared to 2019.
The APAC destinations with the longest increases in travel days between 2019 and 2024 were India (+2 days), Vietnam (+2 days), Indonesia (+1.9 days), and Japan (+1.4 days). This is mainly due to lower growth rates. When comparing hotel prices to other markets during this period.
Longer stays typically result in more spending per trip, which benefits the local economy.
Thrill seekers want experiences and nightlife
Consumers around the world continue to prioritize experiences over physical goods. This has also affected the travel sector, with spending on experiences and nightlife accounting for 12% of tourism sales, the highest in at least five years. On the other hand, the pace of recovery in the retail industry is slowing.
Australian tourists spend the most in the world on experiences and nightlife
In 2024, Australians will spend $1 in every five (19%) on these activities, significantly higher than the global average (12%). Tourists from mainland China are also increasingly seeking experiences, spending 10% in this category in 2024, up from 7% in 2023.
Explore fully Travel 2024: Breaking boundaries report here. Additional reports and insights from the Mastercard Economic Research Institute can be found here.
