MICE-Contact

Link news to
your website

Currencies and Oil Prices Challenge Asia Pacific Travel and Tourism

Jul 08, 2008

PATA’s recently released ‘Asia Pacific Tourism Forecasts’, however, suggest core fundamentals remain generally positive, with growth in international arrivals into Asia Pacific forecast at 7-8 percent, over the 2008-2010 period.

Since 2005, the US dollar has depreciated by between 14 and 21% against six major Asia Pacific currencies, making some parts of Asia an increasingly expensive choice for US travellers. This in part is fuelling a shift in destination choice even within the region.

At the same time, inflationary pressures across the region have been pushing local costs skywards. For example, since 2006, average daily rates at 5-star hotels in six major Asia Pacific cities have jumped by between 10 and 39%, as measured in local currencies.

And as oil prices have hit record levels, fuel surcharges have increased substantially.

"Operators who quote in US dollars have been playing a desperate catch-up game, continually increasing rates as the dollar has fallen," says PATA Director Strategic Intelligence John Koldowski.

Contact name: PATA

Contact email: