WITH a growing middle class, 600 million people in the region and youth on their side, China has been pushed into the travel limelight.
Last year, it became the number one outbound market with an overseas spend of $102 billion. This is expected to rise to $135 billion this year. According to the United Nations World Tourism Organisation (UNWTO), China is the hot topic and the main driver behind Asia Pacific’s recent dominance in travel.
Márcio Favilla, executive director for Competitiveness, External Relations and Partnerships, UNWTO, said: “There will be more travelling outside the region but the big figures are inter-regional.”
He added that the market needs to mature by starting regionally and expanding, so the impact internationally will be slower than the growth figures suggest. “People want to go to more than one country in a trip so joint promotion is important and makes sense in reaching long distance source markets.”
However, growth in neighbouring countries has left its mark too. Singapore is seen as a top five key markets due to its per capita spend. With a population of five million, tourism spend per capital accounts for $4,220. Indonesia is experiencing a massive population boom.
It has a population of 244 million, 60 per cent of whom are under 50 years old. However, its spending power per capita is only $28. According to the UNWTO, the strength of the region is its large, youthful population, who are growing in affluence, are more socially developed and educated.
The main opportunity, especially for travel agents and tour operators, lies with the growing number of first time travellers who are seeking support and comfort in order to travel. They largely travel for leisure, health or luxury reasons, and are less interested in history and heritage.
The challenge lies with cultural expectations, purchasing power and limited electronic payment infrastructure.
In 2010 there were 200 million international arrivals in the Asia Pacific region. This is expected to grow to 300 million by 2030.
By Helen McClure