Theme parks and retail shopping are likely to boost travel activities in the Asia-Pacific, according to Euromonitor International, which has projected recovery for tourism spending this year.
The London-based market research company, in a recent report, said that governments in Asia-Pacific were “cautious about reopening” but there have been moves to facilitate more travels, like mutual recognition of vaccination certificates.
The report noted that inbound tourism spending was still “precariously low” at 27 percent of prepandemic levels. This year, however, Euromonitor sees 188-percent growth amid the surging momentum for travel. Tourism activities within the region are anticipated to return to 74 percent of 2019 levels by the end of this year.
“Wellness, theme parks and retail shopping will be the strongest growth drivers of in-destination spending through 2027,” the study noted. Short-term rentals were also considered as a bright spot for the hospitality segment because of the “staycation effect and desire for less crowded destinations.”
Despite the signs of recovery, Euromonitor noted that the travel and tourism sector was dealing with the adverse impact of inflation as this could discourage discretionary spending.
“Travel players are innovating to help counter inflationary pressures,” the study said. For example, 24 percent of the respondents are exploring the buy now, pay later scheme to encourage traveling. But more than half also said they had increased prices in response to rising consumer prices.
Meanwhile, the study also revealed that businesses have pivoted to digital platforms in order to provide better customer experience.
“Investing in new technologies that provide a seamless customer experience is a top priority for business leaders,” it said. About 45 percent said their company has an application to manage trips while 33 percent said they were adopting new technologies like artificial intelligence. INQ