South Asia is the most recovered sub-region, with a decline of only 5 pc in Q4
Travel in most Asian countries are expected to reach its 2019 level by the end of this year, thanks to a robust momentum gained in Q3 2023, says a oint research by ForwardKeys and PATA.
In a press statement, ForwardKeys says that the recovery had been slow initially, owing to strict travel restrictions and pandemic-related concerns. However, the tide is now turning.
The recovery of the travel industry is not happening uniformly across all countries. Some countries are faring better than others. South Asia is the most recovered sub-region, with a decline of only 5 pc in Q4. This fast recovery is supported by a robust restoration of international seat capacity, expected to exceed 2019’s levels by 4 pc, adds the statement.
The statement says that among the top regional destinations, India is the most resilient, with only a 1 pc decline in tourist arrivals. It is expected to reach 2019 levels of tourist arrivals in Q4 2023, as per the forward tickets.
According to the report, Japan with -11 pc is also expected to be near pre-pandemic levels. The country managed to attract the interest of travellers from both regional markets, particularly South Korea, Singapore, and Australia and long-haul markets, like the USA, Canada, Germany, and France. The depreciation of the Japanese Yen makes the destination more affordable for a broader variety of travellers.
The report cites that despite the overall positive trend, air connectivity remains a significant challenge for the Asia Pacific travel industry. The pandemic led to reduced flight frequencies and higher airfares, which still affect the region to this day. Travel to and within the region remains more expensive and time-consuming than before, hindering full recovery.
It goes on to say that the sub-region of Oceania at -37 pc is still facing challenges in fully recovering from the impact of the pandemic. The region’s strong reliance on air travel, high airfare costs, and the slow recovery of the major markets, primarily China, have complicated the recovery of major destinations like Australia and New Zealand.
As a result, many travel operators have shifted their focus to the domestic markets, resulting in more resilience. However, smaller destinations like Fiji, French Polynesia, or Samoa stand out as sub-regional success stories.
It adds that despite these challenges, the Asia Pacific region possesses key assets to recovery forward over the coming months. These include the steady return of Chinese travellers, the growth of the Indian outbound and inbound markets, and the efforts made by Destination Marketing Organisations throughout the region to fuel travel demand.
APAC cities such as Fukuoka, Nha Trang and Nadi are all showing international arrival figures this Q4 above pre-pandemic level, up by 55 pc, 17 pc and 11 pc versus the same period in 2019, it adds.
