Travel Industry in Asia-Pacific on the Verge of Recovery

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After experiencing one of the worst recessions in their history, Asia-Pacific’s travel industry is on the verge of recovery. A growing number of consumers are becoming more willing to spend their money on travel than ever before, especially with more ways to plan and book trips online. For example, a global study released by Google revealed that 65 percent of Chinese travelers began planning their vacation over the Internet, while 50 percent found it to be more convenient than other methods such as visiting travel agencies or looking at ads in magazines and newspapers.

According to the World Travel & Tourism Council’s annual “Travel & Tourism Economic Impact” report, the Asia-Pacific region saw the largest decline in tourism income in 2020 (59%) when compared to pre-pandemic levels.

The majority of the nations in the area kept tight border controls in 2021, which slowed recovery efforts there. The region’s gross domestic product increased by roughly 16% as a result of tourism, which is less than the 28% in Europe and the 23% in North America.

The analysis reveals that Asia-Pacific, whose travel income contributes 71% of its total economic output, is anticipated to bridge the gap this year.

This year has seen a surge in travel throughout the Asia-Pacific region as restrictions were initially loosened in Australia and India, followed by Malaysia, Thailand, and other Southeast Asian countries, and most recently Japan, South Korea, and Taiwan in the north.

The 10-year forecast
According to the WTTC research, the tourism sector in Asia-Pacific should continue to rise in 2023 before expanding again in 2024.

It predicts that by 2025, travel-related revenue will have increased the region’s GDP by 32% from its pre-pandemic level, outpacing all other regions save the Middle East (30%).

According to the analysis, the global economy would increase at an average annual pace of 2.7% from 2022 to 2032. However, the analysis predicts that tourism would expand at an average annual rate of 5.8% throughout the same time period, adding to the global economy.

The figures increase even further in the Asia-Pacific region, where the WTTC anticipates that tourism will contribute to GDP growth at an average annual rate of 8.5%.

Where travel jobs will be
According to the WTTC, 126 million new jobs will be created in the travel sector globally over the next ten years. It claims that 65% of this will be in the Asia-Pacific region.

According to the WTTC, 126 million new jobs will be created in the travel sector globally over the next ten years. It claims that 65% of this will be in the Asia-Pacific region.

China’s issue
The analysis warns that if China keeps imposing travel restrictions, Asia’s capacity to completely recover by 2023 may be in jeopardy.

Chinese President Xi Jinping stated during the Communist Party’s 20th National Congress on Sunday that the dynamic zero-Covid policy had produced “good effects,” but he did not say if the policy will alter.

In order to limit recent case surges, authorities have shut down amusement parks in Shanghai and schools in the city of Xi’an in central China, putting millions of its residents under additional lockdowns.

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