Travel Quarterly Statement for Q2 2023 reveals that there has been an impressive rebound in tourism demand, but is now moderating as the cost of living crisis, with persistently high inflation, is taking its toll on consumers’ spending on discretionary items like travel. The Middle East and Africa is ahead, with strong inbound performances in the United Arab Emirates, Qatar and Saudi Arabia. Chinese outbound demand has been slow to materialise, but the long-term potential is sound.
This report comes in PPT.
The speed of recovery in the Q2 2023 forecast is stronger than predicted in the previous quarter for trips (although not inbound tourism spending), but only by 1.2%, due to the global economic slowdown acting as a drag on demand. In 2023, inbound tourism spending worldwide is expected to reach USD1,518 billion, reaching 84% of pre-pandemic levels – an impressive rebound despite challenges from the cost of living crisis and the war in Ukraine.
Led by strong performances from Qatar, the UAE and Saudi Arabia, the broader Middle East and Africa region was the first to exceed 2019 peak levels in inbound tourism spending, aided by the latter two countries’ focus on diversifying away from fossil fuels and building vibrant global tourism hubs. Saudi Arabia has ambitious targets for 100 million visitors by 2030, as part of its Vision 2030 programme, after opening up to leisure tourism with an e-visa scheme.
China’s outbound recovery has yet to pick up full speed, with a cautious start to reopening after restrictions were removed, constrained by capacity and administrative challenges. However, the future looks bright for those looking to capitalise on high-spending, digitally savvy and social media-friendly Chinese visitors who prioritise curated travel and hospitality experiences. Outbound spending is predicted to more than triple in 2023, to USD100 billion.
Mega events – often deemed a poisoned chalice – are one way to re-energise destinations and connect with repeat and potential visitors. Already, the 2024 Paris Olympics are creating controversy, such as residents priced out, security challenges and geopolitical spats. France is predicted to enjoy a 20% uplift in inbound tourism spending in 2024, buoyed by the games.
Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.
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