Asia Pacific Tourism Fuels Global Surge in International Arrivals. :: Hospitality Trends

ForwardKeys, the leading travel intelligence firm and Knowledge Partner of the World Travel & Tourism Council (WTTC) announced at the Global Summit in Perth that the global tourism industry is roaring back to life in 2024, with international arrivals up +16% compared to 2023. This resurgence is largely fuelled by the Asia Pacific region, which is finally hitting its stride after a delayed post-pandemic reopening.

While the region still lags prelags pre-pandemic levels, the current pace of year-on-year growth signals continued recovery and highlights the pent-up demand for travel within APAC. This positive trend is set to continue through the end of the year, with double-digit growth in arrivals to China, Malaysia, Japan, Thailand and Indonesia fuelling a projected +19% overall increase. Meanwhile, Oceania sees a +10% upswing, with arrivals to New Zealand and Australia being key drivers.

Increased connectivity boosts arrivals to Australia

Australia’s success story is particularly noteworthy, with a remarkable surge in arrivals from the US. In particular, bookings from US families (3-5 people) are up +43%, a positive indicator for the Australian economy, as families tend to spend more during their trips. Continued growth from China, projected at +25% through the end of 2024, further strengthens this positive trajectory.

A key factor in Australia’s tourism boom is the significant expansion of air connectivity. Airlines have increased overall capacity on international routes into the country by +8% for the latter part of 2024 — with higher growth in capacity from regional hubs like Thailand, Japan, Hong Kong, Vietnam, China, and Singapore.

Data on seasonality is key to sustainable growth

Australia’s tourism industry experiences a distinct seasonal ebb and flow. While the end-of-year holidays mark a peak period for travel, the southern hemisphere’s winter months see a significant dip in tourist activity. This pronounced seasonality contrasts sharply with destinations like Japan, which enjoys a more consistent flow of visitors throughout the year.

New Zealand, similar to Australia, experiences a pronounced peak season during the end-of-year holidays, but with an even sharper decline during its winter months, highlighting the challenges and opportunities presented by seasonal variations in tourism.

“Destinations like Australia and New Zealand, with a distinct peak season, face the challenge of balancing demand throughout the year. Effective data-driven strategies are crucial for mitigating the negative impacts of seasonal fluctuations, such as overcrowding during peak periods and underutilised resources during the off-season. By diversifying source markets and promoting year-round attractions, destinations can ensure long-term, sustainable growth.”

Olivier Ponti Director of Intelligence & Marketing at ForwardKeys

Speaking at the global tourism body’s 24th Global Summit in Perth, Western Australia, WTTC President & CEO Julia Simpson said:

“The region has an unparalleled opportunity to grow its Travel & Tourism sector in a way that not only drives economic growth but sets the standard for sustainability.

“This year, we expect Travel & Tourism’s contribution to the region’s economy to reach USD $3.22TN. By the end of this year, we also predict that almost 191MN people across the region will work in Travel & Tourism.”

Julia Simpson WTTC President & CEO