Global luxury tourism growing rapidly

ILTM (International Luxury Travel Market) Asia – the invitation-only event for agents from across the Asia Pacific region – has revealed a growth of 15 per cent in those registering to be invited to this year’s event in Shanghai, June 2 to 5, 2014. About 42 per cent of those already accepted to attend are new buyers to ILTM events, highlighting the growing reach of the ILTM Asia brand across the Asia Pacific region.

ILTM Asia is exclusively created for the most discerning Asia Pacific buyers and designers of luxury travel who have a proven track record with international luxury travel providers. Two markets from which exhibitors requested to meet additional buyers at ILTM Asia 2013 are Australia and Hong Kong, and organisers have now confirmed buyers attending from each country have increased by 15 per cent and 20 per cent respectively.

Alison Gilmore, senior exhibition director, ILTM Portfolio said: 'The Asia Pacific region continues to expand rapidly, driven by strong economic growth in China and already established luxury travel markets such as Australia and Japan. We are delighted to welcome some of the most influential buyers from the region, including Mary Rossi Travel (Australia) Affordable Luxury Network (China) and Abercrombie & Kent (Hong Kong).'

The level of expansion across the Asia Pacific region, together with the relative youth of many of the specific markets, has created a still more significant leading role for ILTM Asia.

'ILTM Asia is pivotal in providing an insight into the luxury travel patterns of elite travellers from across Asia. It is also the forum to identify new trends, meet key luxury brands and learn about undiscovered properties worldwide. We are welcoming some fascinating new properties across Asia while Visit Britain has a significant presence, as do Switzerland and Singapore.'

New exhibitors at ILTM Asia 2014 include Rosewood Hotels & Resorts, Oetker Collection, Armani Hotels & Resorts and Bulgari Hotels as well as individual properties such as Thailand’s Iniala Beach House, France’s Le Passage Mohkan Shan Hotel and The Sanchaya on Bintan Island in Indonesia. They join established brands such as Peninsula Hotels, Starwood Hotels & Resorts, Ritz-Carlton Hotels and Mandarin Oriental Hotel Group.

EVOLVING DEMOGRAPHICS

The dynamics of the luxury segment of the hospitality and leisure industry in the GCC is evolving. It appears that the expectations of high-net-worth individuals from across the GCC play a significant part in the travel decision-making process, which has led to the evolution of a tier system when booking anything from a first class airplane ticket to a private island stay.

'According to a 2012 Credit Suisse report, the number of millionaires in the UAE is set to grow by 12 per cent by 2017, reaching 48,000 individuals. GCC nationals also spend 260 per cent more on airfares against other nationalities, with between 40 to 60 per cent booking business class travel, and also spending 430 per cent more on accommodation and 558 per cent more on dining; so the opportunity to develop highly specialised offerings for the upper luxury bracket presents a unique challenge,' says Mark Walsh, portfolio director, Reed Travel Exhibitions.

The rising tide of younger millionaires coming on the scene is also changing the landscape of the GCC luxury market and the challenge for the hospitality and leisure industry serving this market is the ability to evolve to meet new expectations and demands. Luxury tourism, both inbound and outbound, is also heavily allied with high-end retail, but unique holidays and individual experiences are becoming increasingly popular.