More households around the world will be packing their luggage and heading to overseas destinations for annual holidays in the next decade. According to a new Visa report, some 109 million Asia Pacific households are expected to go on an international trip once a year by 2025, up 65 percent from 2015.
Over the same period, Visa’s report, “Mapping the Future of Global Travel and Tourism in Asia Pacific”, which forecasts travel and tourism trends in the next 10 years (2015 to 2025), found average annual spending by households during a trip is likely to rise 8 percent to US$5,230.
The Report also identified key drivers expected to impact global travel, including a growing middle class, greater internet connectivity, improved transportation infrastructure across many countries and an aging global population with more time for leisure travel.
“Travelling internationally will become more common and attainable in the future thanks to changing demographics, combined with technology advances that make travelling abroad easier and less expensive,” said Wayne Best, Chief Economist, Visa Inc. “What will emerge is an expanding “travelling class” that will spend a growing portion of their household income on cross-border travel. Tomorrow’s travelling class will likely be older and hail from emerging markets – looking very different from today’s typical international traveller.”
In Asia Pacific, households in China (US$255 billion), Hong Kong (US$47.4 billion) and Singapore (US$44.9 billion) are likely to be the top markets with the largest outbound travel spend by 2025. However, emerging markets Indonesia (211 percent), Vietnam (132 percent) and India (101 percent) are likely to be experience the sharpest increases in spending.
Highlights of the global report include:
The Rise of a new Global Travelling Class: Growing income levels around the world is creating a new “travelling class”. The study uncovered that worldwide, households that make at least US$20,000 per year account for more than 90 percent of spending on international travel today. By 2025, it is estimated that nearly half of all global households (945 million) will be within this income range, spurring greater international travel and spending, particularly by households from emerging markets.
Top five Asia Pacific markets with highest average number of countries visited by a Visa credit cardholder in 2015
Global Aging: By 2025, travellers aged 65 and above will more than double their international travel to an estimated 180 million trips, accounting for one-in-eight international trips globally. The study estimates that older travellers will be able to afford longer trips that provide greater comfort at higher prices. Trends such as “medical tourism” whereby aging populations undertake international travel for medical purposes will also take hold in the future.
Top five Asia Pacific markets with the highest number of international trips by 65+ year olds (thousands).
Increasing Connectivity: The combined forces of globalisation and technology are expanding access. Construction of more than 3401 new airports is expected over the next decade, creating new routes and destinations that will make international travel easier and more convenient. At the same time, awareness of travel options is spreading with the rapid uptake in internet access and the number of mobile devices around the world. Digital connectivity is not only fostering greater spontaneity in travel, but also spurring a broader array of personalised travel and tourism options as well. An executive summary along with country and region-specific data as well as interactive tools can be found on www.visa.com/travelinsights.