Asia Pacific travel experiences to approach pre-pandemic levels by 2024, according to Arival study

02-05-23

According to a study by Arival, tours, activities and attractions in the area will reach US$67 billion by 2024 and surpass the pre-pandemic peak to reach US$75 billion by 2025.

Travel experiences in Asia Pacific have returned to rapid growth as the region has reopened to regional and long-haul travel, according to a new study by Arival. Tours, activities and attractions (the third largest and fastest growing Travel Sector) will reach US$67 billion by 2024 and surpass the pre-pandemic peak to reach US$75 billion by 2025.

"The Asia-Pacific region has borne the brunt of the pandemic, with widespread regional cross-border travel disruption far exceeding that in other parts of the world," says Arival CEO Douglas Quinby, "Demand for travel in the region is accelerating now that many borders have been reopened, encouraging travellers to return. As we saw when other regions reopened, travellers are prioritising experiences when planning and spending their trips. The challenge now will be for the Global Sector to prepare for the rapid influx of demand from across Asia-Pacific".

Online bookings will exceed 30% of all tour, activity and attraction bookings worldwide by 2025, up from 17% in 2019. However, the volume of online bookings in Asia-Pacific will more than triple over the same period, as younger travellers shape the travel rebound. Online marketplaces and mobile-ready operators across the region will be best positioned to benefit.

"Asia's large crowd of Generation Z travellers and millennials, hungry for experiences, prioritise activities and are willing to pay for them," says Quinby, "But operators must be prepared. This means more small group, immersive experiences that lead travellers to unique experiences. And everything must be discoverable and bookable on mobile, with plenty of Instagram- and TikTok-worthy moments," he adds.

Uneven growth

Meanwhile, Asia Pacific Travel Association (PATA) president Peter Semone says, "We were warned about SARS in 2003/2004, but we didn't pay full attention to it and consequently paid a huge humanitarian and economic price with COVID-19. Lessons must be learned and remembered. International travel has already returned to the Asia Pacific region to some extent, however, growth in the coming years will be largely uneven for various sub-regions and destinations, in the face of their own local disruptions.