ASIA PACIFIC. MasterCard International has forecast continued growth of outbound travellers from across the Asia Pacific region in the first half of 2006.
Of the 12 key markets covered in the company’s MasterIndex of Travel report, outbound travel from the Philippines and Malaysia is predicted to show the strongest year-on-year growth at +13.5% and +11.2% respectively. Strong growth is also expected from Australia (+9.5%), China (+9.0%), Japan (+8.0%) and South Korea (+7.8%).
Besides a six-month forecast of outbound travel for 12 markets (Australia, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Thailand), the MasterIndex of Travel also comprises a survey of business and personal travel trends among the urban middle class across 13 markets (with Vietnam included since 2004).
“Our latest outbound travel forecasts are consistent with our analysis of the long-term outlook of outbound travel – it has been firmly entrenched in Asia Pacific as part of the urban middle-class lifestyle,” noted Dr Yuwa Hedrick-Wong, Economic Advisor to MasterCard International in Asia Pacific.
Hedrick-Wong added: “Personal travel has not only taken off in Asia, but the market is undergoing a dynamic process of segmentation. Observed trends in personal travel suggest that Asian travellers are coalescing into distinct market segments, each underpinned with different lifestyles and unique preferences, and businesses will be successful only if they can meet the challenge of market segmentation.”
Most popular destinations
Released twice a year, the MasterIndex of Travel survey report shows that intra-regional travel continues to increase in popularity. A growing number of respondents polled (84%) named destinations in Asia Pacific as their top choice for personal travel, above those in Europe (34%) and the US (17%). For business travellers, 86% travelled for business within the Asia Pacific region, a +25% increase from a year ago.
Mirroring findings from the previous report, Japan (28%) and Australia (24%) are the most popular travel destinations in Asia Pacific for personal travellers, while China (27%) and Singapore (20%) remain key destinations for business travel.
The results also highlight the growing trend of women travellers as Asia’s new spending powerhouse. Women (40%) are travelling more than men (34%) for personal trips, with such travels skewed towards older respondents.
A total of 5,404 consumers from 13 markets participated in the survey (which also includes Vietnam). Fieldwork was conducted between 15 October and 4 November 2005, with a sample of 400 or more consumers in each of the markets.
Other findings from the report include:
Personal travel
– Thais (75%), Singaporeans (64%) and respondents from Hong Kong (61%) continue to top the list of personal travelers in the past 12 months, as they have for the past three surveys.
– Similar to the previous report, travel agents (40%), word of mouth (40%) and the Internet (33%) remain key sources of information.
– The concerns of personal travellers remain relatively unchanged from the previous survey. Security and safety issues (53%) continue to be the biggest area of concern, ahead of losing of a passport (33%) and language barriers (25%).
– General sightseeing and visiting scenic spots (55%) remain the region’s top priority activity for travellers in the region, followed by shopping (47%) and rest and relaxation (38%).
– Local souvenirs/antiques/arts & crafts (54%) and apparel and personal effects (53%) continue to be the most preferred shopping purchases, followed by food (34%) and luxury items/jewellery/branded goods (25%).
Business travel
– The markets with the highest percentage of respondents travelling for business remain fairly consistent, with Thailand (35%) heading the list followed by Singapore and Indonesia (32% each). Over the past few years, the incidence of business travel is on the rise in Indonesia, China, Vietnam, South Korea, New Zealand and Hong Kong.
– Business travellers in Japan (63%), Vietnam (61%), New Zealand (44%), Thailand (34%), China (32%), Taiwan (31%) and Indonesia (30%) needed to travel more compared to the previous period.
– Singapore Airlines (17%) continues to be the most preferred airline for business travellers, as it has been since the inauguration of the MasterIndex of Travel in 2003. Thai Airways (10%) and Air China (9%) are the next most preferred carriers.
– Regionally, business travellers prefer international four-star hotels (37%) followed by three-star hotels (22%) and international five-star or higher-end hotels (18%).
The following list shows the MasterIndex of Travel forecast for outbound travel for the first half of 2006:
Outbound travellers: Forecast for 1H 2006 and year-on-year growth
Australia
2.44 million, +9.5%
China
15.45 million, +9.0%
Hong Kong
2.71 million, +3.0%
Indonesia
1.99 million, +2.6%
Japan
8.97 million, +8.0%
South Korea
5.15 million, +7.8%
Malaysia
19.93 million, +11.2%
New Zealand
0.96 million, +4.5%
Philippines
1.38 million, +13.5%
Singapore
2.79 million, +3.9%
Taiwan
4.19 million, +4.5%
Thailand
1.61 million, +3.6%
Market highlights
AUSTRALIA
Forecast on outbound travel for the first half of 2006:
– +9.5% year-on-year growth
– 2.44 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were the Internet (44%), followed by travel agents (32%) and familiarity with the place (12%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (62%), followed by running out of cash, and not being able to get the right kind of food and water (14% each), and language barriers (10%).
– The main activities travellers engaged in when travelling were rest and relaxation (42%), general sightseeing and shopping (36% each), and visit historical sites/museums/art centres (16%).
– Most preferred shopping items for travellers when abroad included apparel and personal effects (44%), followed by luxury items/jewellery/branded goods (28%), and local souvenirs/antiques/arts and crafts (22%).
– The favourite personal travel destination for Australian travellers was Europe (40%).
Survey on business travel
– 20% of business travellers said that over the last 12 months, there was the need to travel more as compared to the previous period.
– China and the US (30% each) were the most frequently visited destination, followed by Singapore (25%)
– Majority of business travellers (45%) used the travel arrangement company arranged by the company.
– Qantas (45%) was the most preferred airline for business travel, followed by Singapore Airlines (15%) and Air New Zealand (10%).
– Three-star/medium priced hotels (45%) were most preferred for business travel, together with international four-star hotels (45%), followed by international five-star spa and resorts (10%).
CHINA
Forecast on outbound travel for the first half of 2006:
– +9.0% year-on-year growth
– 15.45 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were travel agents (67%), followed by the Internet (48%) and word of mouth (45%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (53%), followed by language barriers (48%) and losing one’s passport (28%).
– The main activities travellers engaged in when travelling were general sightseeing (78%), shopping (61%) and entertainment (47%).
– Most preferred shopping items for travellers when abroad included local souvenirs/antiques/arts and crafts (71%), followed by apparel and personal effects (58%), and luxury items/jewellery/branded goods (29%).
– The favourite personal travel destinations for Chinese travellers were Europe (36%) and Australia (24%).
Survey on business travel
– 32% of business travellers said that over the last 12 months, there was the need to travel more as compared to the previous period.
– Hong Kong (39%) was the most frequently visited destination, followed by Singapore (18%) and Japan (13%).
– Majority of business travellers (48%) used their company’s in-house travel department when making business travel arrangements.
– Air China (52%) was the most preferred airline for business travel, followed by China Southern Airlines (17%) and China Eastern Airlines (9%).
– International four-star hotels (40%) were most preferred for business travel, followed by three-star/medium priced hotels (31%) and international five-star or higher end hotels (17%).
HONG KONG
Forecast on outbound travel for the first half of 2006:
– +3.0% year-on-year growth
– 2.71 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were word of mouth (50%), followed by travel agents (40%) and magazines and newspapers (34%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (71%), followed by losing one’s passport (30%) and language barriers (29%).
– The main activities travellers engaged in when travelling were general sightseeing (64%), shopping (48%) and rest and relaxation (35%).
– Most preferred shopping items for travellers when abroad included local souvenirs/antiques/arts and crafts (53%), followed by food items (41%) and apparel and personal effects (35%).
– The favourite personal travel destination for Hong Kong travellers was Japan (61%).
Survey on business travel
– 24% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– China (56%) was the most frequently visited destination, followed by Taiwan (15%) and Europe (15%).
– Majority of business travellers (59%) used their company’s in-house travel department for making business travel arrangements.
– Cathay Pacific (61%) was the most preferred airline for business travel, followed by Dragonair (11%) and China Eastern Airlines (6%).
-International five-star or higher end hotels (39%) were most preferred for business travel, followed by international four-star hotels (24%) and international five-star spa and resorts (20%).
INDONESIA
Forecast on outbound travel for the first half of 2006:
– +2.6% year-on-year growth
– 1.99 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were travel agents (65%), followed by word of mouth (34%) and the Internet (17%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (41%), followed by losing one’s passport (35%) and losing one’s baggage (18%).
– The main activities travellers engaged in when travelling were entertainment (48%), shopping (35%) and rest and relaxation (27%).
– Most preferred shopping items for travellers when abroad included local souvenirs/antiques/arts and crafts (65%), followed by apparel and personal effects (48%) and food items (24%).
– The favourite personal travel destination for Indonesian travellers was Singapore (50%).
Survey on business travel
– 30% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– Singapore (53%) was the most frequently visited destination, followed by Malaysia (33%) and Japan (13%).
– Majority of business travellers (38%) used their company’s in-house travel department for making business travel arrangements.
– Garuda Indonesian Airways (56%) was the most preferred airline for business travel, followed by Singapore Airlines (19%) and Air China (3%).
– International four star hotels (29%) were most preferred for business travel, followed by three-star/medium priced hotels (26%) and international five-star or higher end hotels (14%).
JAPAN
Forecast on outbound travel for the first half of 2006:
– +8.0% year-on-year growth
– 8.97 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were travel agents (43%), followed by the Internet (34%) and travel guides/books/brochures (24%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (55%), followed by losing one’s passport (34%), and losing one’s credit/bank cards (24%).
– The main activities travellers engaged in when travelling were general sightseeing (53%), entertainment (33%) and shopping (27%).
– Most preferred shopping items for travellers when abroad included local souvenirs/antiques/arts and crafts (41%), apparel and personal effects (39%) and luxury items/jewellery/branded goods (38%).
– The favourite personal travel destination for Japanese travellers was Australia (31%).
Survey on business travel
– 63% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– China (42%) was the most frequently visited destination, followed by Singapore (26%) and Hong Kong (24%).
– Majority of business travellers (55%) used their company’s in-house travel department for making business travel arrangements.
– Japan Airlines (66%) was the most preferred airline for business travel, followed by ANA (24%) and Singapore Airlines (8%).
– International four-star hotels (53%) were most preferred for business travel, followed by international five-star or higher end hotels (24%) and serviced apartments (11%).
SOUTH KOREA
Forecast on outbound travel for the first half of 2006:
– +7.8% year-on-year growth
– 5.15 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were word of mouth (61%), followed by familiarity with place (42%) and the Internet (27%).
– Top concerns for travellers when travelling to a foreign destination were language barriers (47%), followed by security and safety issues (45%) and losing one’s passport (31%).
– The main activities travellers engaged in when travelling were general sightseeing (80%), visiting historical sites/museums/art centres (55%) and rest and relaxation (31%).
– Most preferred shopping items for travellers when abroad included apparel and personal effects (64%), local souvenirs/antiques/arts and crafts (30%) and food items (22%).
– The favourite personal travel destination for South Korean travellers was Europe (67%).
Survey on business travel
– 19% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– China (43%) was the most frequently visited destination, followed by Japan (32%) and Europe (23%).
– Majority of business travellers (43%) used their company’s in-house travel department for making business travel arrangements.
– Korean Airlines (76%) was the most preferred airline for business travel, followed by Asiana (15%).
– International four-star hotels (33%) and three-star/medium priced hotels (23%) were most preferred for business travel, followed by international five-star spa and resorts (16%).
MALAYSIA
Forecast on outbound travel for the first half of 2006:
– +11.2% year-on-year growth
– 19.93 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were travel agents (55%), followed by travel promotions/fairs (39%) and word of mouth (33%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (67%), followed by losing one’s passport (59%) and losing one’s wallet/pocket book (37%).
– The main activities travellers engaged in when travelling were shopping (58%), experiencing different cultures (53%) and rest and relaxation (41%).
– Most preferred shopping items for travellers when abroad included local souvenirs/antiques/arts and crafts (71%), food items (52%) and apparel and personal effects (50%).
– The favourite personal travel destination for Malaysian travellers was Australia (46%).
Survey on business travel
– 19% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– Singapore (48%) was the most frequently visited destination, followed by Indonesia (30%) and China (26%).
– Majority of business travellers (44%) used their company’s in-house travel department for making business travel arrangements.
– Malaysia Airlines (63%) was the most preferred airline for business travel, followed by Singapore Airlines (22%) and China Southern Airlines (7%).
– Three-star/medium priced hotels (30%) were most preferred for business travel, followed by international five-star spa and resorts (26%) and international four-star hotels (22%).
NEW ZEALAND
Forecast on outbound travel for the first half of 2006:
– +4.5% year-on-year growth
– 0.96 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were word of mouth (48%), followed by the Internet (20%) and familiarity of place and travel agents (16% each).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (38%), followed by falling sick with no proper medical facilities (22%) and losing one’s baggage (11%).
– The main activities travellers engaged in when travelling were rest and relaxation (47%), general sightseeing (37%) and visiting family/relatives/friends (36%).
– Most preferred shopping items for travellers when abroad included apparel and personal effects (60%), food items (22%) and local souvenirs/antiques/arts and crafts (21%).
– The favourite personal travel destination for New Zealander travellers was Australia (43%).
Survey on business travel
– 44% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– Australia (68%) was the most frequently visited destination, followed by Europe (15%) and the US (14%).
– Majority of business travellers (51%) used their company’s in-house travel department for making business travel arrangements.
– Air New Zealand (51%) was the most preferred airline for business travel, followed by Qantas (19%) and Singapore Airlines (15%).
– International four-star hotels (43%) were most preferred for business travel, followed by serviced apartments (18%) and three-star/medium priced hotels and international five-star or higher end hotels (17% each).
PHILIPPINES
Forecast on outbound travel for the first half of 2006:
– +13.5% year-on-year growth
– 1.38 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were word of mouth (58%), followed by travel agents (25%) and magazines and newspapers and familiarity with place (17% each).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (83%), followed by losing one’s baggage (33%) and language barriers and running out of cash (25% each).
– The main activities travellers engaged in when travelling were shopping (58%), rest and relaxation (50%) and general sightseeing (42%).
– Most preferred shopping items for travellers when abroad included apparel and personal effects (67%), electronic and audio visual products (50%) and local souvenirs/antiques/arts and crafts (42%).
– Filipino travellers preferred travelling to Hong Kong, New Zealand, Singapore, Thailand and the the US (25% each).
Survey on business travel
– 15% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– Hong Kong (30%) was the most frequently visited destination, followed by China, Japan, Europe and Middle East/Africa (20% each).
– Majority of business travellers (50%) used a travel arrangement company arranged by their company for making business travel arrangements.
– Philippine Airlines (45%) was the most preferred airline for business travel, followed by Cathay Pacific (25%) and China Airlines and Lufthansa (10% each).
– Serviced apartments and local economy hotels (40% each) were most preferred for business travel, followed by international five-star or higher end hotels (20%).
SINGAPORE
Forecast on outbound travel for the first half of 2006:
– +3.9% year-on-year growth
– 2.79 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were travel promotions/fairs (61%), followed by travel agents (50%) and the Internet (48%).
– Top concerns for travelers when travelling to a foreign destination were losing one’s passport (61%), followed by running out of cash (44%) and falling sick with no proper medical facilities and losing one’s baggage (42% each).
– The main activities travellers engaged in when travelling were entertainment (78%), rest and relaxation (70%) and shopping (67%).
– Most preferred shopping items for travellers when abroad included food items (75%), local souvenirs/antiques/arts and crafts (68%), apparel and personal effects (52%).
– The favourite personal travel destination for Singaporean travellers was Hong Kong (53%).
Survey on business travel
– 17% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– China (53%) was the most frequently visited destination, followed by Indonesia (33%) and India (27%).
– Majority of business travellers (54%) used their company’s in-house travel department for making business travel arrangements.
– Singapore Airlines (61%) was the most preferred airline for business travel.
– International four-star hotels (63%) were most preferred for business travel, followed by international five-star spa and resorts (17%) and international five-star or higher end hotels (10%).
TAIWAN
Forecast on outbound travel for the first half of 2006:
– +4.5% year-on-year growth
– 4.19 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were the Internet (62%), followed by word of mouth (37%) and magazines and newspapers (26%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (57%), followed by losing one’s passport (52%) and losing one’s wallet/pocket book and falling sick with no proper medical facilities (50% each).
– The main activities travellers engaged in when travelling were general sightseeing (77%), experiencing different cultures (73%) and experiencing different cuisines (69%).
– Most preferred shopping items for travellers when abroad included local souvenirs/antiques/arts and crafts (66%), apparel and personal effects (61%) and food items (52%).
– The favourite personal travel destination for Taiwanese travellers was Japan (56%).
Survey on business travel
– 31% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– China (49%) was the most frequently visited destination, followed by Japan (24%) and the US (22%).
– Majority of business travellers (39%) used their company’s in-house travel department for making business travel arrangements.
– China Airlines and EVA Air (34%) were the most preferred airline for business travel, followed by Cathay Pacific (10%).
– International five-star or higher end hotels (27%) were most preferred for business travel, followed by international four-star hotels (24%) and three-star/medium priced hotels (17%).
THAILAND
Forecast on outbound travel for the first half of 2006:
– +3.6% year-on-year growth
– 1.61 million outbound travellers forecasted for the next six months
Survey on personal travel
– Key sources of information used by travellers in planning their trips were word of mouth (35%), followed by the Internet (31%) and travel agents (22%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (64%), followed by language barriers (19%) and fear of flying (17%).
– The main activities travellers engaged in when travelling were general sightseeing (54%), shopping (45%) and visiting historical sites/museums/art centres (39%).
– Most preferred shopping items for travellers when abroad included local apparel and personal effects (60%), souvenirs/antiques/arts and crafts (51%) and luxury items/jewellery/branded goods (20%).
– The favourite personal travel destination for Thai travellers was Europe (36%).
Survey on business travel
– 34% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– Europe (24%) was the most frequently visited destination, followed by China (21%) and Singapore (21%).
– Majority of business travellers (39%) used a travel arrangement company engaged by their company when making business travel arrangements.
– Thai Airways (69%) was the most preferred airline for business travel followed by Singapore Airlines (15%).
– International four-star hotels (39%) were most preferred for business travel, followed by international five-star or higher end hotels (27%) and three-star/medium priced hotels (21%).
VIETNAM
No forecast being made for Vietnam.
Survey on personal travel
– Key sources of information used by travellers in planning their trips were word of mouth (48%), followed by travel agents (38%) and advertising (33%).
– Top concerns for travellers when travelling to a foreign destination were security and safety issues (52%), followed by losing one’s passport (45%) and losing one’s wallet/pocket book (34%).
– The main activities travellers engaged in when travelling were general sightseeing (67%), experiencing different cultures (52%) and shopping and entertainment (48% each).
– Most preferred shopping items for travellers when abroad included apparel and personal effects (64%), local souvenirs/antiques/arts and crafts (57%) and electronic and audio visual products (34%).
– The favourite personal travel destination for Vietnamese travellers was Singapore (55%).
Survey on business travel
– 61% of business travellers said that over the last 12 months, there was the need to travel more compared to the previous period.
– Singapore (38%) was the most frequently visited destination, followed by China (34%).
– Majority of business travellers (71%) used their company’s in-house travel department when making business travel arrangements.
– Vietnam Air (53%) was the most preferred airline for business travel followed by Singapore Airlines (12%).
– Three-star/medium priced hotels (47%) were most preferred for business travel, followed by international four-star hotels (26%) and international five-star spa and resorts (12%).
About MasterCard International
MasterCard International is a leading global payments solutions company manages widely accepted payment card brands including MasterCard, Maestro and Cirrus and serves financial institutions, consumers and businesses in over 210 countries. For details, visit www.mastercard-masterindex.com
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