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Emerging consumer preferences and habits have marked the first half of 2024 in an Asia Pacific tourism sector still finding its footing post-pandemic.
The initial surge in tourism back in 2022 was driven by wealthier travelers in search of nature, user-friendly services, sustainable practices, and genuine local experiences, all facilitated by an increased digitization of travel.
These trends have continued to develop. At the Pacific Asia Travel Association’s webinar titled “Navigating the Path to Tourism Recovery” on June 6, travel experts highlighted current megatrends such as value for money, streamlined booking and payment processes, and travel choices that reflect personal values as defining features of the region’s tourism landscape post-pandemic.
Caroline Bremner, Senior Head of Travel Research at Euromonitor International, said destinations that deliver safety, relaxation, value, good quality food and drink and access to natural attractions would continue to do well. She noted that younger (Gen Z) travellers, much preferred personalised, authentic local experiences, with price not so much of a consideration, relative to much older baby boomers who seek value.
Free cancellations, easy digital payments, reliable user reviews, free upgrades and personalised recommendations (especially from family or friends), turn lookers to bookers, said Ms Bremner.
Absent Chinese Tourists Impact Asia Pacific Tourism
Tourism experts from a recent webinar highlighted that outbound Chinese tourism remains subdued, negatively affecting tourism performance in Asia Pacific regions. Destinations like Japan, Korea, Hong Kong, Vietnam, and Macau might not see a full recovery until the end of 2026, as Chinese tourists are currently favoring domestic travel over international trips.
Conversely, countries such as India and Thailand, along with Singapore—which has even surpassed its 2019 peak tourism levels—have managed to compensate for the reduced numbers of Chinese and Japanese tourists by attracting visitors from Australia, Europe, and the USA.
China itself faces tourism hurdles, as noted by Dr. Anyu Liu from Hong Kong Polytechnic University. He pointed out that international tourist arrivals into China are at only about 80% of the 2019 figures, with projections suggesting only a recovery to approximately 96% by the end of 2026. Factors such as inflation, labor supply challenges, and regional conflicts are impeding this recovery.
Addressing the issues raised by the webinar around the Asia Pacific region as a whole, Mr Noor Ahmad Hamid, CEO of PATA, said that tourism in Asia Pacific could be enhanced by air capacity improvements, better land-based regional connectivity, improved training to attract and retain skilled personnel, and an easing of visa restrictions.
Artificial Intelligence in Travel
Looking at a quickly-arriving travel tech future, the webinar speakers said that AI was a big concern as it could be manipulated to perpetuate bias and misinformation, especially in travel marketing. AI needs to be used responsibly and carefully as a travel enabler, said Ms Bremner.
Maintaining accurate and current destination information is crucial as AI bots continuously extract publicly available data from the internet. The webinar also highlighted the use of AI in suggesting travel itineraries and training hospitality staff in educational environments.
Could AI bots replace tourism forecasters in universities? “We did some internal tests to see if ChatGPT could generate more accurate forecasts than us,” said Dr Liu. “So far we’re safe,” he quipped.
The Pacific Asia Travel Association (PATA) is set to release its mid-year tourism forecast reports for 39 Asia Pacific destinations on June 25.
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