Asia Pacific Emerges as Dominant Player in Tourism Industry: Mastercard Economics Institute Predicts Growth in 2024

The global travel sector is experiencing a boom in 2024, with consumer spending on tourism remaining strong and passenger traffic reaching new heights, according to the latest report from the Mastercard Economics Institute (MEI). The report, titled “Travel Trends 2024: Breaking Boundaries,” provides insights into the evolving landscape of the travel industry across 74 markets, including 13 in the Asia Pacific region.

One of the key findings of the report is the increasing popularity of APAC destinations, with Japan emerging as the #1 trending destination worldwide. The country welcomed a record number of visitors in March 2024, driven by a weak yen and favorable exchange rates. Additionally, APAC passenger traffic is rebounding, especially for shorter intra-regional trips.

In Thailand, tourism is expected to fully recover in 2024, with total visitor arrivals only 7% below pre-pandemic levels. The country has seen a significant increase in inbound flight traffic from South Asia and the ASEAN region.

Furthermore, the report highlights that more Indians are traveling internationally than ever before, thanks to a growing middle class and increased route capacity. Indian travelers are visiting key markets such as Japan, Vietnam, and the United States in higher numbers compared to 2019.

Overall, tourists in the APAC region are extending their trips and spending more on experiences and nightlife. The trend of seeking out unique experiences over material goods is driving tourism sales, with Australian tourists leading the way in spending on experiences.

As the travel sector continues to evolve in 2024, businesses and policymakers are urged to adapt to changing consumer preferences and market trends. The Mastercard Economics Institute aims to provide actionable insights to help stakeholders navigate the dynamic landscape of the global travel industry.