By Jade Agustin
International arrivals after the pandemic that grounded the sector – is up by 16% this year compared to 2023. ForwardKeys, a travel intelligence firm, says the resurgence is boosted by the Asia Pacific region. And though it still hasn’t reached all the figures before the pandemic, the annual growth is a signal of a pent-up demand for travel in the region.
This trend is expected to continue until the end of the year with China, Malaysia, Japan, Thailand, and Indonesia expecting a double-digit growth in international arrivals. This is expected to bring an overall increase of 19%. Oceania, meanwhile, is seen to expand by 10% with arrivals to New Zealand and Australia as the biggest factors.
Oceania’s Travel and Tourism Seen to Boost Economy by US$336-B in 2034
The travel and tourism sector in Oceania could boost the region’s economy with an additional US$112 billion in the next decade bringing the total contribution to US$336 billion in 2034.
The report, “Unlocking Opportunities for Travel & Tourism Growth in Oceania” published by the World Travel and Tourism Council in collaboration with VFS Global shows that this boost could also raise employment in the region to 3.5 million in 10 years.
Oceania is a region that includes Australasia, Melanesia, Micronesia, and Polynesia. WTTC says this region could be the role model when it comes to sustainable travel and at the same time, uplift its economy.
This financial and social potential, however, can be maximized if key actions are taken including investments in sustainable infrastructure that can help in connectivity and address climate change, improvements in air connectivity and visa processes, and the promotion of eco-friendly tourism that protects indigenous communities.
“Oceania 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. By investing in climate-resilient infrastructure and supporting Indigenous communities, the region could become a global leader in eco-conscious, inclusive tourism,” says Julia Simpson, WTTC President & CEO.
The report was timely released during WTTC’s 24th Global Summit that was held in Perth, Western Australia.
By the end of 2024, Oceania’s travel and tourism sector is expected to grow by 16.5% higher than pre-pandemic levels. Employment in the sector is also seen to exceed pre-pandemic figures by 4.8% bringing the total number of employment to 2.3 million people.
International visitor spending, however, is expected to remain 4% lower than 2019 but it is seen to recover in 2025.
Australia’s Tourism Boom Attributed To Air Connectivity Expansion
According to figures released by ForwardKeys, Australia is the 9th top performing destination in the APAC region.
There’s been a surge in tourist arrivals from the US, particularly bookings from US families made of 3-5 people, are up at 43%. This is a good indicator for the Australian economy as families usually spend more during their trips.
Australia’s tourism boom is hugely attributed to the significant expansion of its air connectivity. In the latter part of 2024, airlines have increased their international routes into Australia by 8% with higher growth in capacity from regional hubs like Hong Kong and Singapore.
But unlike other countries in the region, like Japan which sees a steady flow of tourists throughout the year – Australia and New Zealand have a distinct peak season towards the end of the year, and a decline in their tourist arrivals during winter months.
Olivier Ponti, ForwardKeys’ Director of Intelligence & Marketing says data-driven strategies are important in mitigating the negative impacts of seasonal fluctuations like overcrowding during peak periods and underutilized resources during off-season. He says it’s crucial to diversify source markets and promote year-round attractions to ensure long-term and sustainable growth.
