In 2024, the global travel sector is witnessing unprecedented growth, propelled by robust consumer spending and a surge in passenger traffic. The Mastercard Economics Institute’s (MEI) fifth annual report, “Travel Trends 2024: Breaking Boundaries,” offers a comprehensive analysis of the evolving travel industry across 74 markets, including 13 in the Asia Pacific (APAC) region.
Despite currency fluctuations and affordability variations, travel is thriving, with nine of the last ten record-setting spending days in the global cruise and airline industries occurring this year. MEI anticipates this momentum to continue as consumers prioritize meaningful experiences and allocate a larger portion of their budgets to travel.
APAC destinations are witnessing significant growth, with half of the top ten global hotspots located in the region. Japan reigns as the number one destination, fueled by a favorable exchange rate, attracting over 3 million visitors in March 2024. APAC’s passenger traffic is rebounding, particularly for shorter, intra-regional trips.
Thailand’s tourism industry is poised for a full recovery in 2024, with inbound flight traffic projected to surpass pre-pandemic levels by close to 20%. Domestic tourism in Chinese Mainland has returned to normalcy and surpassed 2019 levels, while international travel is gradually recovering, currently at 80.3% of 2019 figures. MEI predicts further growth, supported by visa exemptions and increased international flight capacity.
Indian tourism has reached an all-time high, with 97 million passengers traveling through Indian airports in the first quarter of 2024. Domestic passenger traffic has surged by 21% compared to 2019, while international traffic has expanded by 4%. Indian travelers are flocking to key markets, with a notable 53% increase in travel to Japan and an impressive 248% increase to Vietnam.
APAC tourists are extending their stays, averaging 7.4 days per trip in 2024, compared to 6.1 days in 2019, providing a significant boost to local economies. Globally, travelers are placing greater emphasis on experiences over material goods, with Australians leading in spending on experiences and nightlife. Conversely, luxury fashion sales have skyrocketed in Japan and Hong Kong SAR due to exceptional value.
The Mastercard Economics Institute serves as a valuable resource for businesses and policymakers, providing actionable insights to navigate the rapidly evolving tourism landscape effectively. For the complete report and additional insights, visit the Mastercard Economics Institute website.
