Affluent travelers are driving global tourism growth

Affluent travelers are expected to be a key driver of global tourism growth over the next five years, even as signs of a global economic slowdown weigh, according to new analysis from Visa Business and Economic Insights.

Households with annual incomes of more than $200,000 make up just 5% of the world’s population, but they account for about one in four dollars spent globally. Visa, based on analysis of aggregated transaction and travel data, finds that this category of travelers is increasingly turning to a broader range of destinations, including emerging markets.

Popular and New Destinations

While London remains the top choice for affluent travelers from both developed and emerging economies, cities such as Dubai, Singapore, Bangkok, Paris, Barcelona and Tokyo are also seeing strong demand. In less traditional destinations, Visa identifies dynamic emerging markets such as Hokkaido in Japan, Mendoza in Argentina and Marsa Matruh in Egypt.

Spending Habits

Data shows that affluent travelers are devoting a significant portion of their budgets to dining, shopping and high-end accommodation. In Australia, domestic luxury travelers spend about a third of their travel budget on food, drink and retail. Globally, their cross-border card spending at destinations is three times that of non-affluent visitors, with retail taking a large share.

Rise of Asia-Pacific

The study highlights the shift in the center of gravity of affluent households. Since 2010, the share of North America and Europe has declined, while that of the Asia-Pacific region has reached 10% and is projected to reach 12% by 2030. Affluent households in the region are expected to grow at an annual rate of 8%, the highest in the world.

MENA’s momentum

In the Middle East and North Africa (MENA), increased air connectivity, relaxed visa requirements and short distances are fueling intra-regional travel. Affluent travelers account for 55% of cross-border travel within the region and 65% of travel between MENA and Europe.

They travel more often and… further

According to the data, affluent travelers travel almost twice as often compared to others and the majority plan to travel at least once within the next year. Significant growth is recorded in Japan, which attracts high-income visitors from the US, Australia and the UAE, thanks to a combination of cultural heritage and modern infrastructure.

Strategic role in the next phase of growth

Visa concludes that affluent travelers not only remain resilient in the face of economic challenges, but also shape the direction of the global travel industry. Their preferences for diverse destinations and high-end experiences are expected to determine the next stage of tourism development.

Source:
tornosnews.gr
https://www.tornosnews.gr/en/tornos/luxury/52890-affluent-travelers-are-driving-global-tourism-growth.html