Asia's economies are experiencing tremendous positive momentum, leading to productivity gains and providing an edge over other regions. However, some skeptical investors underestimate this trend.
Nevertheless, Asia's gross domestic product will grow faster than the Americas and Europe in the next few years, reinforcing its position as the most prominent and fastest-growing economic region.
Increased exports, labour productivity and capital expenditure, determine this dynamic. Compared to other economies that have relied more on incentives, Asia's recovery from the effects of the pandemic has been supported by a surgeon exports.
With the relaxation of border measures, the tourism and hospitality sector also has the opportunity to contribute to the region's economic prosperity.
The Asia-Pacific region is recovering reasonably rapidly thanks to the reopening of China and the celebration of the Lunar New Year. However, while China remembers what it's like to travel again, the global tourism industry is looking to catch up to meet increasing demand.
To get a more realistic assessment of the industry's situation, here's a look at the data collected and evaluated by Skift Research.
The Skift Tourism Industry Health Index is a real-time measure of the tourism industry's overall and key vertical performance. This index is a serious strategic planning tool for the tourism and hospitality industry. In the current climate of uncertainty, its importance can hardly be overestimated.
Skift Research launched the index in May 2020 as the Skift Recovery Index. In early 2022, the index was rebranded, called the Skift Travel Health Index and reflecting sweeping changes:
· the addition of more indicators,
· additional data collection partners,
· further efforts to track the state of the industry after the impact of the Covid-19 pandemic.
The global Skift Travel Health Index stood at 93 points in February 2023, compared with a baseline of 100 points for the same month in 2019. This data suggests that all sectors, except for aviation, have fully recovered. Although the aviation sector is slightly worse than others, it is worth noting that its performance rose significantly over January 2023, and it is at its highest level of the entire year.
According to the Skift Tourism Health Index, which showed an increase of four percentage points in February 2023 compared to the previous month, a revival in international tourism no longer seems too far away. This year is expected to see a recovery and growth for the industry.
Therefore, despite the many challenges faced by the industry due to the pandemic, war and natural disasters, tourism is flourishing in most regions.
The adoption of a strong pricing strategy by hotels to stimulate the sector's recovery and the reopening in China has boosted sales in the Southeast Asian region. Despite shortcomings in group tour pricing, which have yet to be addressed, it is worth noting the positive impact that the resumption of group tours from China to a number of countries has had.
The Asia Pacific region has shown a rapid recovery, and its travel performance has now surpassed Europe's.
STATK Hospitality Management Consulting is a part of the internationally renowned group specialising in service education, with a presence in Singapore and the Asia Pacific region. Our hospitality management consulting services will take your business to new heights. Benefit from the know-how and experience of an internationally awarded team. For more information, don't hesitate to contact us at info@statk.co.
