ASIA PACIFIC. The tourism recovery in Bali and Phuket – which began in late 2006 – has continued in the first half of 2007, according to cardholder spending data released by Visa International. Visa’s most recent data for Asia Pacific (June 2007) showed that tourist spending on Visa cards in Bali and Phuket grew by +27% and +21% respectively compared with the same period in 2006.
Visa International Executive Vice President for South and Southeast Asia James Murray said Bali and Phuket are back on the map as two of Asia’s popular international tourist destinations. “Visa spending data shows that despite the tragic events in recent years that severely and suddenly impacted tourism earnings, the long-held appeal of both destinations is drawing visitors back,” Murray said.
Bali experienced a -47% decline in visitor arrivals following the first terrorist bombing in 2002, and then another decline after a second bombing in 2005. It was not until a year after the 2005 bombing that tourist spending on Visa cards returned to positive year-on-year growth. That growth has remained to June 2007.
“The return of tourists to Bali, as indicated in their spending on Visa cards, was also a boon for the overall Indonesian tourism industry as Bali accounted for 37% of all visitors to Indonesia,” Murray said. “In the first six months of 2007 the average growth in spending on international Visa cards compared with the same time last year was +39%.”
“Despite the tragic events in recent years that severely and suddenly impacted tourism earnings, the long-held appeal of both destinations is drawing visitors back.“ |
Visa International Executive Vice President for South and Southeast Asia James Murray |
In Phuket, Thailand, visitors’ spending on Visa cards has also returned after the December 2004 tsunami. In the month immediately following the tsunami (January 2005), Phuket saw a -89% drop in tourist arrivals. Visa data also revealed that spending in January 2005 decreased by -23% when compared with January 2004. In December 2004, the month of the tsunami, visitor spending on Visa cards was US$23 million. One year later it had increased to US$31.5 million and in December 2006 it was US$50 million. Notably tourist spending on Visa cards in Phuket in January 2007 (part of Phuket’s peak travel season) was at its highest level since the 2004 tsunami at US$62 million.
However, not all other tourist destinations in the Asia Pacific region saw similar recovery in Visa card spending. Tourist spending in Sri Lanka and the southernmost provinces of Thailand in the first half of 2007 remained below the level of the same period last year.
Thailand’s southern provinces have been going through political and civil unrest in recent years. A series of bombings, arson attacks and shootings has affected the area’s reputation internationally. In the first half of 2007 the top five tourist markets in terms of cardholder spend in Southern Thailand combined (Malaysia, the US, Singapore, the UK and Australia) experienced a year-on-year spending decrease of -20% when compared with the same period last year. Visa international cardholder spending in the southern provinces was not only -25% below last year’s levels but also in stark contrast with the +17% growth experienced across the rest of Thailand in the first half of 2007 compared with the same period in 2006.
“While at the broad country level Thailand and Indonesia have both felt the negative impacts of the tsunami and acts of terrorism in recent years, it was the very specific events in Bali and Phuket that show tourism recovery timeframes are to a certain extent influenced by tourists deciding to stay away from the destination. In the case of Phuket, Visa spending first moved above pre-tsunami levels three months after the tsunami, dropped again thereafter and then remained above 2004 spending levels nine months after the event. However Visa spending in Bali took a year to recover to pre-bombing levels,” Murray said.
Sri Lanka is another market feeling the impact of civil unrest on tourism numbers and receipts. Tourism arrivals in the first half of 2007 dropped -24% compared with the same period last year. A comparison of Sri Lanka and the Maldives, neighbouring countries hit by the 2004 tsunami, showed both were experiencing a post-tsunami recovery throughout 2005. However, with the resumption of the civil war in Sri Lanka in 2006, Visa international cardholder spending declined.
In the first six months of 2007 year-on-year spend decreased in Sri Lanka while spend in the Maldives increased. In Sri Lanka year-on-year growth declined between -1% and -13% for the first half of 2007, while the Maldives experienced growth of between +35% and +63% for the same period.
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