Asia dominates summer travel, Japan and currency swings fuel tourist frenzy
ASIA-PACIFIC: According to the latest report by the Mastercard Economics Institute, which CNBC published, Asia is the pounding heart of international travel this season, as over half of the world's top 15 emerging destinations are in the region.
In the report, summer flight bookings from 2024 and 2025 have been compared, and destinations undergoing the most substantial growth in the vacation and leisure industries have been identified.
Tokyo, Japan's capital, trailed closely by Osaka, landed in the top two spots on the list. Tokyo was the most visited city in the world last year, driven to some extent by the declining yen, making Japan a more inexpensive destination for transnational tourists.
Paris is in third place, but the report stated that the French capital's position mirrors a drop in visits due to the 2024 Summer Olympics, which characteristically raised prices and discouraged leisure travellers. Fourth was Shanghai, with Beijing, Seoul, and Singapore also securing places in the top 10, together with Spain's Palma de Mallorca and Madrid, and Brazil's Rio de Janeiro. Lesser-known Asian capitals like Nha Trang in Vietnam and Fukuoka in Japan also ranked 11th and 13th, respectively. Currency variations influence travel choices in Asia
The Mastercard report also emphasized the evident power of currency volatility on travel preferences, mostly from Asian tourists. For example, a tiny 1% devaluation of the Japanese yen resulted in a 1.5% increase in visits from central China. Yet, similar changes had an insignificant impact on tourists from countries like Germany and France.
While the yen has regained some strength lately, now pegged at 147.98 to the U.S. dollar, it is still a major influence in attracting budget-conscious holidaymakers, especially those from Asia. This type of impact is far more noticeable among Asian tourists than those visitors from countries like the UK, where currency fluctuations have little bearing on travel plans.
Analogous patterns were detected with the U.S. dollar. A weakening in value resulted in visible surges in trips to the United States from countries like Singapore, Taiwan, India, and South Korea. However, British tourists once more showed themselves invulnerable to such swings. Middle East rises
Beyond Asia's outpouring, the report also depicted larger international changes. Middle Eastern trekkers are gradually choosing expeditions to Asia, principally in Thailand. Bangkok and Phuket exhibited the highest growth in summer reservations from Middle Eastern tourists, with New York also making it in the top three.
In the meantime, economic and political undercurrents are restructuring travel movements ahead of the 2025 season. For instance, Saudi Arabia is profiting from its economic modification initiatives, attracting more business and leisure holidaymakers to cities such as Jeddah and Riyadh.
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