Mastercard reports surge in foreign tourists’ spending
Thailand is experiencing a significant increase in tourist spending, up by 40% compared to 2014, according to a recent study by the Mastercard Economics Institute.
The report titled "Travel Industry Trends 2023," provides in-depth insights into the global travel landscape, influenced by changes in the economy, consumer preferences, and China's opening up.
Travel trends have shifted in the post-pandemic era, with travellers allocating more of their spending towards leisure travel rather than purchasing goods. Business travel is also back on track, especially in organisations that require employees to return to normal work routines. However, economic uncertainties continue to impact several countries.
Other key takeaways include:
- leisure travel and business travel are growing at a similar rate, with the growth rate of corporate flight bookings in the last six months of 2022 comparable to that of personal leisure travel
- flight bookings increased by 31% in March compared to the same period in 2019.
China's reopening after strict control measures during the pandemic is seen as a positive signal for the global economy and is expected to unleash tourism demand that has been suppressed for a long time. In March 2023, the report noted, travel spending for new experiences increased by 93% compared to 2019, even though travel rates were at their lowest in recent years.
The biggest benefactor from China’s reopening will be the Asia-Pacific region, with the Northern European zone, such as Germany and France, as well as Brazil, coming in a close second and third. Travellers from the Asia-Pacific region, meanwhile, are still showing a preference for destinations in the US and Australia.
Travel expenses for global experiences increased by 65% in March, while spending on goods rose by only 12% compared to 2019. Chinese tourists have shown a higher increase in spending on luxury goods compared to tourists from other countries.
The report also indicate that Thailand is a highly popular destination for tourists seeking cultural experiences and new attractions and this, combined with return visits, is likely to significantly boost spending.
