The Asian tourism industry is expected to return to normalcy and grow regardless of present financial crisis, as rising intra-regional tourism in Asia would compensate the decline.
During the ITB Asia held in Singapore, the Trade and Industry Minister of Singapore, Lim Hng Kiang stated that the Asian tourism industry is likely to bounce back and surge in medium-term after being hit by the current financial crisis, as per the news published by bernama.
As per the report “Indian tourism Industry” by RNCOS, the total number of tourist arrivals in the Asia-Pacific region are projected to surge at a CAGR of 11.39% during 2008-2010.
In line with inbound tourism, outbound tourism is also surging in Asia-Pacific region. According to the World Travel Organization, total outbound tourism in East Asia and Asia Pacific region is expected to grow 6.5%, which is higher than the world average growth measured at 4.1%. Thus, it is predicted that by 2020, the outbound tourism in Asia would reach 405 Million.
The principal factor triggering the growth in the Asian tourism industry is that the decline in tourism in Asia would be counterbalanced by the constant increase in the intra-regional tourism. Tourists from China, India and South Korea will be the key drivers.
Moreover, Asian tourist destinations, such as Dubai and Macau, are continuously attracting the international tourists in recent times. As a result, Asia is becoming more and more popular as tourist destination. Also, several travel destinations in Asia, such as Singapore, are located within the Asia-Pacific region. This strategic location of the Asian countries is further boosting the number of tourist arrivals.
Additionally, the low rate of unemployment and strong fundamentals of business, together with upcoming tourism projects are favoring the growth of tourism in countries like Indonesia, Malaysia, Thailand and Vietnam. Consequently, the tourism industry in Asia would bounce back in full swing.
It is worth noting that the present economic crisis in international markets, together with increased air travel expenses and higher fuel prices have affected the consumer sentiment, forcing them to trim down their luxury expenses on travel and tourism.
A Research Analyst at RNCOS said, “Like many other industries, tourism is also falling victim to the global economic turmoil. But with major economies in Asia, such as China and India, remaining less affected, the Asian tourism industry will spring back. However, it needs proper marketing approach to witness a significant growth.”
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