Asian Pacific Tourists Industry Expected to Reach $4.6 Trillion
Wednesday, May 07, 2008
The Asia Pacific region is expected to reach $4.6 Trillion by 2012 as tourists inflow is rising in the region and economic crisis in the US, says PATA.According to the Pacific Asia Travel Association (PATA), the total revenue earned by tourism industry of Asia Pacific is expected to reach $4.6 Trillion as tourist inflow in China is expected to reach 500 Million by 2010, as reported by Xinhuanet
PATA recently released, Asia Pacific Tourism Forecasts 2008-2010, in coordination with Singapore Tourism Board (STB), which says that in spite of economic crisis in the US, the tourism industry of the region has a bright future. China and South Korea will give fillip to the tourism industry. PATA estimated robust annual growth from 7% to 8% for the region.
According to the industry experts, value depreciation in dollar will encourage American to plan visit to Asian countries instead of Europe. In fact, Euro outstripped majority of Asian currencies except Thailand's Baht and Japan's Yen though greenback in 2008. Singapore, Malaysia and Thailand are some of the Asian countries that offer world-class tourism facilities at reasonable rates. Besides, these countries are also famous for their exotic sea beaches which tourists like most.
Moreover, staying accommodation like hotels and resorts are developing fast in the region, which is also contributing to the growth in the industry. Hotel infrastructure is rapidly developing in China and India along with fast development in casino resorts in Singapore. Besides, the growth in the Asia Pacific tourism industry is also boosted by air liberalization and increasing air services among countries. International events like Beijing Olympics 2008 and 2010 World Expo in 2010 will also draw tourist in the region.
Nevertheless, some Asian countries internal political conflicts are hampering growth in the industry. Sri Lankan tourism industry is facing heat of political conflict in the country and is expected to reduce by 3.6% yearly on an average. Also, rising oil prices marginalizing benefits of the aviation industry, credit crunch in the US and its impact on other economies are hurting the tourism industry in the region.
According to a research analyst at RNCOS, "The Asia Pacific tourism industry is the most vibrant tourism industry in the world because two third of tourists come from here. The industry will get to see good time in future as tourism infrastructure is developing, US dollar declining and some international events will attract tourists from across the world."
posted by RNCOS @ 2:28 PM,
SAMA Says, Domestic Tourism in Saudi Arabia will Reach $27 Billion by 2020
According to the Saudi Arabian Monetary Agency (SAMA), Saudi Arabian domestic tourism is expected to generate SR101.3 Billion ($27 Billion) by 2020 indicating high growth in the sector in coming years, as reported by Menafn.The domestic tourism industry of Saudi Arabia is expected to grow around SR101.3 Billion ($27 Billion) by 2020 as the country's economy and disposable income of people is growing.
The SAMA official also revealed that 3% of the country’s GDP (Gross Domestic Product) comes from the tourism sector. Around 342000 people are associated with the country's tourism industry out of them 15% are Saudi nationals. Moreover, with expansion of tourism industry, there was 65% increase in air arrivals and 16% increase in air departure during 2006-07. The highest proportion of tourists visits Saudi Arabia capital, Riyadh. Besides, the hotel industry in the capital grew by 280% in last three decades (1988-2008).
Apart from this, attractive tourist destinations, beautiful hotels, parks and
other places draw more tourists from across the country. Pilgrimages are the biggest asset of Saudi Arabian tourism industry with Umrah and Hajj pilgrimages are widely popular. Saudi Arabian tourism industry helps people to peep into the rich cultural heritage of the country. Hence, more people visit to archaeological places and old monuments.
Another good reason for high growth in domestic tourism of Saudi Arabia is growing economy and rising employment in the country. High employment has increased the disposable income of people, which they are spending on tourism. Additionally, families are spending maximum of the leisure time to visit various tourist destinations.
Alongside of domestic tourism, country is witnessing high inflow of international tourists from various parts of the world. Ancient monuments like Brazan Towers, built in late 17th century, and some well know historical castles located in different areas like Wadi Aldawsir, Al-Jouf, Hail, Al-Kharj are still preserve their remains. They pull tourist with their fineness and beauty from all over the world.
According to a research analyst at RNCOS, “The booming domestic tourism of Saudi Arabia generating huge revenue and supporting economy of the country. It is also creating jobs for local people which in turn increasing disposable income of people. Investors are also reaping benefits from high growth in the tourism sector a lot more of what they are investing in the industry."
posted by RNCOS @ 12:09 PM,
Small Growth in UK Retail Industry in 2008
Monday, May 05, 2008
UK retail sales grew only slightly during February 2008 due to rise in commodity prices and competition among retailers and supermarkets, according to BRC.
The British food sector was largely responsible for this marginal growth as the commodity prices increased substantially. Another reason for growth in the UK retail sale was Mothering Sunday on March 2, 2008. Sales of this day were included in the previous month retail sale.
Apart from this, burgeoning competition among the UK retailers and supermarkets to leverage more benefits partly contributed to the retail sales in February 2008. Besides, retailers and big markets launched promotional and discount schemes to foster growth in the dwindling UK retail market and to fetch consumers to shops and stores.
Members of Monetary Policy Committee of the Bank of England are content with the slow growth in the consumers spending as shown by the slight improvement in the UK retail sale. The members were worried about decline in consumer spending because of higher mortgage payments, increasing energy bills, and tight credit availability.
Nevertheless, the UK retail sales easily overcame from jitter of the January 2008 when clearance sales attracted consumers temporarily. The process of belt tightening began in February 2008 because the bills of shopping during Christmas and New Year reached homes.
Despite all this, BRC officials are concerned about the future retail sales in the country. As per the survey by Manpower, a consultancy services providing firm, companies in the UK planned not to recruit more people for the second quarter of 2008. BRC also revealed that high inflation rate may force the Bank of England to limit its cutting down of interest rates.
According to a research analyst at RNCOS, "As the Brits become very selective and fussy, the retailers have to come up with attractive offers and lucrative schemes to entice consumers to make them spend on goods during crucial Easter season during March 23-April 27, 2008. However, shoppers are very conscious with regard to spending and discount schemes can only attract customers to buy."
posted by RNCOS @ 4:02 PM,
US Retail Sales Dropped below the Predicted Value for the Month
Friday, May 02, 2008
The US retail industry failed to sustain its growth achieved in December last year and fell by 0.6% in February 2008 due to declining home prices and tight credit practices.According to the US Commerce Department, the US retail industry's sale dropped significantly by 0.6% in February 2008 against 0.2% predicted by the industry experts, as reported by Xinhuanet.
The Department also highlighted that the recent slump in the retail industry followed a 0.4% growth in January 2008. Similar drop was witnessed in December 2007 when sales fell by 0.7%, highest since June 2007.
As per the industry experts, spiraling prices of gasoline that touched a record high of $3.27 per gallon for unleaded regular, forcing American consumers to cut down on their spending. Including this, unemployment figure reached 2.835 Million in the week ended on March 1, 2008, highest figure since September 2005.
Besides, the country is paying hugely for buying energy from foreign countries indicating shortage of energy resources and higher energy costs in the country. As a result, people are stopping themselves from making purchases. Household expenses also came down to compensate the loss in wealth and lenders have tightened their methods of credits giving.
Moreover, according to the industry experts, the home prices in the US are declining which in turn is contributing to the present economic crisis in the country. It is also expected that deterioration in the housing market of the country will worsen in future. Poor credit conditions in the US are also responsible for the present crisis in its retail market.
Also, the predictions of low interest rates in coming months are keeping the dollar on its downward movement, taking it to the lowest level against the Yen and Euro in more than a decade.
According to a Research Analyst at RNCOS, "Poor financial conditions and economic recession are the main reasons for decline in the US retail industry. Consumers reduced their spending, the main driver of the US economy, pushing the world's biggest economy into the recession. Now the time has come when the government should take some necessary measures to boost up the dwindling retail industry. Cut down in interest rates could be an effective medium to encourage customers for enhancing their spending."
posted by RNCOS @ 3:26 PM,
UK House Prices Slumped to Lowest Level in Last 16 Years
Wednesday, April 09, 2008
The UK housing industry has been underperforming for last few years due to lack of property demand, rising inflation, tight lending process, and slowdown in global economy.A survey conducted by the Royal Institution of Chartered Surveyors (RICS) in January 2008 revealed that the house prices in the UK reached the lowest level since 1990's housing market collapse, as reported by Timesonline on February 13, 2008.
In fact, the number of surveyors who have reported fall in housing market overtook those who have reported rise by 54.7% last month. This is sixth time since August 2007 when falls have surpassed the gains. Moreover, the negative balance was highest last month since November 1992 and reached to 60.1%, while in December 2007, the figure was 49.1%, up by 3.1% in August 2007.
As per the industry experts, the underperformance of the UK housing industry last month has raised concerns about a sharp correction in the backdrop of strict lending practices and stretched affordability due to heavy credit crunch. Moreover, lack of demand for properties against lack of supply has also contributed for price falls because credit crunch is preventing buyers from investing in the market.
Another reason for weak demand in the housing industry is increasing inflation. According to the Office for National Statistics (ONS), the inflation rate in January 2008 touched the highest level in last seven months. The main reason for rising inflation in the country are rising global oil prices and increasing food prices.
Besides, property dealers and agents are feeling uneasy owing to tightening process of mortgage lending which has made it difficult for consumers to get loan and creating uncertainty among potential buyers.
Considering the miserable conditions of the UK housing market, Jeremy Leaf, a spokesman for RICS, said that banks had pass on the Bank of England's 0.25% rate cut to borrowers if demand was to be stimulated, as reported by Timesonline on February 13, 2008.
According to a Senior Research Analyst at RNCOS, "The dwindling UK housing industry is threatening to worsen the economic slowdown in the country. To overcome from this tough time, home dealers should draft policies that attract customers to buy new homes. Home dealers should take initiatives to make home loans easier for consumers along with affordable installments so that the demand for property remains steady."
posted by RNCOS @ 11:55 AM,
UK Govt. Offers £1 Billion for Housing Market
The UK government announced initiatives to infuse growth in the UK housing market by modernizing areas and giving development chances to existing dwellers.The UK government announced on February 28, 2008 the local allocation of above £1 Billion (US$1.99 Billion) to revive the household market in important areas and re-establish the stable communities, as reported by 24Dash.
As per the housing market renewal programme of the UK government, almost £54 Million would be offered annually in the twelve areas across the UK from 2008 to 2011. Few of them including, Merseyside, East Lancashire, Manchester Salford, South Yorkshire and North Staffordshire, are also likely to accept above £100 Million during the same time period.
The Housing Market Renewal Programme is considered necessary to regain the trust in the disadvantaged areas of the UK. The program is planned to raise funds for stable communities' restoration and re-establishing lost connections of housing markets with the regions. The investment will play dual role by converting the ignored inner city areas into modern areas for wealthy professionals by promoting housing market and by providing the development chances for the existing dwellers.
Furthermore, the funding will lead to boost the morale of the housing property dealers in the country. The UK housing industry is stressed due to slowdown in prices for past many months. In February 2008, UK house prices continued to dip for the fourth consecutive month since November 2007. The average prices of houses fell by 0.5% in February 2008 against January 2008, pushing the annual growth rate down to its lowest level at 2.7% since November 2005.
The chief reasons for plummeting housing market in the UK include the increasing energy bills and food costs, which are exerting increased pressure on housing finances. Moreover, financers are growing more particular about the profile of loan takers owing to crisis in the banking industry. The 125% mortgages have become talk of history and 100% mortgage market has reduced in recent months.
A Senior Research Analyst at RNCOS commented, "The UK housing market is combating with reduced prices and declining consumers' interest. Yet, the government funding collectively with growing investment from private sector and local authorities and support from others will facilitate the housing market renewal areas to progress towards their ambitious program to bring real transformation in areas which are seeing decline and rejection."
posted by RNCOS @ 9:37 AM,
Snowstorms Drove Away Tourists from China
Chinese tourism industry lost 6.97 Billion Yuan in February 2008 following cancellation of trips by foreign and domestic tourists due to bad weather conditions.According to Shao Qiwei, Head, China National Tourism Administration (CNTA), around 300,000 tourists, which included 60,000 foreigners, canceled their tours to China following bad weather that crippled transportation network and snapped power system in the southern region of China, as reported by Chinadaily.
As per the coordination office for nation holiday tourism, National Tourism Administration, snowstorms severely hampered the tourism industry’s revenue that closed at just 39.3 Billion Yuan ($5.46 Billion) the Golden week. It was 6.2% less as compared to last year’s revenue. In totality, the tourism industry lost 6.97 Billion Yuan by February 9, 2008.
According to the CNTA, the recovery speed of the industry depends upon multiple factors. Moreover, it will also take time to rebuild damaged infrastructure and more importantly restoring confidence among tourists to visit China again as the drastic fall in temperature not just caused heavy losses to transport operators but also hampered enthusiasm among travelers.
Previously, China hoped for high growth in the tourism industry of the country as the country’s infrastructure is constantly improving and tourism industry has competition also. But China didn’t meet its target due to extreme weather conditions in 2008, the tourism industry lost confidence.
Hence, CNTA decided to take every necessary step that will stimulate growth in the tourism industry of the country. The organization will intensify promotional and advertising activities both within and outside the country (in neighboring countries including South Korea and Japan).
Chinese tourism administration views Beijing Olympic Games commencing from August 8, 2008 as a catalyst to boost confidence among the tourists. China is fully prepared to host the games and has set its infrastructure right for the mega event, like building of new airport terminals and stadia. The work on the iconic birds nest stadium is going on as part of improving tourism infrastructure. It will help in offsetting for January and February 2008 losses.
According to a Research Analyst at RNCOS, "The Chinese tourism industry was optimistic about the industry's growth in the spring festival in 2008 but snowstorms and adverse conditions took the toll on the industry as thousands of tourists canceled their trips. However, the industry is expecting that promotions, advertisements and Beijing Olympics will help in recovering the losses borne this year."
posted by RNCOS @ 9:29 AM,
Increased Shelf Life for US C-Store Market
Thursday, March 27, 2008
A latest report by RNCOS, "U.S. Convenience Stores: A Market Analysis", gives an insight into the current trends in the US convenience store market.
The report evaluates the practices followed by retail industry and stores in the US and all across the world, and gives an insight into the ways retail industry is addressing issues faced in the retail business.
According to the report, retail sales in the country are rising impressively through c-stores. It further adds that in 2006, the sales figure of c-store comprised of approximately 12.5% of total sales in retail sector and the share is projected to increase in future. Apart from that, since 2005, there has been 3.4% rise in the number of c-stores in the US. After conducting deep study on the c-store industry of the US, the report explains reasons for the increase of c-stores all around the country.
Apart from studying the c-stores of the US at both regional and state level thoroughly, the report also identifies top ten states having the maximum number of c-stores in the country. The analysis of state-wise performance made the report to recognize the states which are providing ample opportunities for c-store growth. It further depicts that Southern States of the US rules the c-store industry. In 2006, Southern states accounted for around 57% of total c-stores located in the US.
A Senior Research Analyst at RNCOS revealed that c-store is the most dynamic sector amongst all in the US retail industry. C-stores have established a vital position in grocery supply chain of the country, supplementing the supermarket needs and serving to refill shopping requirements.
The RNCOS report also looks into the factors which are encouraging investors to look for opportunities in the c-store market in the US. It further provides information on technologies like CCTV, RFID, and Biometrics which can assist c-stores in improving their function in the US. The report further highlights major challenges that provide opportunity for biometrics product manufacturers and IT companies to develop software and products to combat the challenges.
"U.S. Convenience Stores: A Market Analysis" asserts that requirement of c-stores have become stronger in the US and hence, a brilliant growth is expected in the c-store market in future in the country.
posted by RNCOS @ 6:03 PM,
No Cheer for New Zealand Property Market
Friday, March 21, 2008
Economic factors have been working against the property market in New Zealand and people are finding it difficult to purchase new property, resulting in a slowdown.
There is a sharp fall in property value in Hamilton, the seventh largest city in New Zealand, from 11.8% to 8.3%. Prior to October 2007, Hamilton enjoyed higher growth rate compared to other main centers but drought has reduced the production levels. Thus, farmers prefer to purchase extra feedstock instead of investing in property. This facto also took a toll on New Zealand's property market.
posted by RNCOS @ 3:51 PM,
Malaysia Exceeds Own Expectations in Tourism
Malaysia has surpassed its target for the number of tourists as it continues to increase the variety of exciting events as well as improving its connectivity with other nations.
posted by RNCOS @ 3:45 PM,
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