Global dominance of Asian travel earns it the top spot

ASIA Pacific has overtaken Europe as the world’s biggest regional travel market, earning gross bookings of $326.2 billion, a figure that is expected to grow by eight per cent in 2013.

Growth figures predict the Asia Pacific travel market will reach $351.9 billion this year, according to industry research authority, PhoCusWright. With 38 million international arrivals in the first eight months of this year, the Asia Pacific region has exceeded all projections.

The figures were released at ITB Asia in October, held in Singapore. The show integrates leisure, corporate and meetings, incentives, conventions and exhibitions (Mice) travel.

Speaking at the event, Márcio Favilla, executive director for Competitiveness, External Relations and Partnerships, United Nations World Tourism Organisation (UNWTO), said: “Thanks to the region’s growing economy we are looking forwards to continued growth in travel. Throughout history when a political situation changes, tourism is one of the first sectors to benefit.”

According to figures from the World Travel and Tourism Council (WTTC), tourism currently accounts for one in 11 jobs worldwide, and this is expected to grow to one in 10 jobs by 2023, with two-thirds of the new positions being generated in Asia. It is expected that this regional growth in travel will see China over take the US in GDP terms.

With half of all mobile prescriptions coming from the Asia Pacific region, online access and marketing will also become more important. In part this is driven by the dominant Chinese market.

Chetan Kapoor, research analyst, Asia Pacific, for PhoCusWright, said: “We expect Asia Pacific travel market to maintain its growth through 2014 to reach $407.3 billion and China will account for a third of that.”

Growing interest in Asian travel is developing at such a pace that a new venue deal has been brokered to cope with the growth of ITB Asia. Marina Bay Sands will host ITB Asia from next year in a three-year contract. Suntec Singapore, which has hosted the event since it started in 2008, has recently been modernised but was unable to ensure availability of additional space required to cope with the growth of ITB Asia.

Dr Christian Göke, chief executive officer, Messe Berlin, said this year’s show, which is in its sixth year, had completely sold out four months ahead with many exhibitors increasing their space. “We are bringing together the east and west. This is the fastest growing market and so it is only fitting that this is the fastest growing show in Asia. The most telling KPI is the number of non-Asian exhibition buyers.

“Now that Asia Pacific has taken the crown as the world’s largest travel market, it becomes even more critical for us to maintain our position as an effective platform to network and gain insights about the region’s travel market.”

First time exhibitors this year included Greece and Russia. The US stand has grown by 90 per cent compared to last year. The Philippines used 75 per cent more floor space than last year and Japan increased its presence by more than 14 per cent.

In total 825 companies from 73 countries were represented at the show; in terms of exhibitors this represents an increase of 30 per cent compared to last year. The show, which represents the full spectrum of tourism including the hospitality sector, tour operators, national tourism organisations, convention and visitor bureaus, travel technology firms, MICE and corporate travel representatives, attracted more than 8,000 visitors from more than 110 countries.

Kevin Nila, regional marketing manager for Sarawak Tourist Board, said: “Our main target is regional expats. We’re not able to compete on shopping and theme parks, but we have natural wonders that make this a destination worth visiting.”

Dr Adel el Masry, director for Egyptian Tourist Board, said: “ITB Asia is one of the tools we use to manage the crisis in Egypt. It is important that Egypt continues to be seen as a cultural destination. It sends out a message that it is business as usual. Around 10 per cent of tourists heading to Egypt are from South East Asia, particularly India and Malaysia, and this figure is expected to grow. If we invest now we can attract tourists later. It’s a strategic approach.”

In terms of focus, the business travel sector has more than doubled over the last year, and representatives from conference and meeting venues have almost tripled since 2012.

Sabine Kuhbach, head of Advertising, Trade Fairs, Events and Direct Marketing for Munich Airport, said: “We work together with our partners. It makes sense to represent ourselves holistically. This is an important market for Germany in terms of leisure and business trade. Our target is to encourage more airlines to use Munich Airport and grow with us.”

ITB Asia 2014 will be held from October 29-31 at the Sands Expo and Convention Centre, Marina Bay Sands, and will continue to be a partner event of TravelRave, the travel trade festival organised by the Singapore Tourism Board.

By Helen McLure

Global dominance of Asian travel earns it the top spot