APAC tourism recovering but lagging behind for 2022


Tourism is recovering in Asia and the Pacific, according to the latest United Nations World Tourism Organization (UNWTO) Barometer.

However, the region is still expected to lag behind for 2022 versus thevrest of the world, due to more restrictive travel policies.

In the best-case scenario, tourist arrivals will remain at 30 percent of 2019 levels due to stringent restrictions.

Already, in the first five months of the year, Asia Pacific's tourist arrivals almost doubled, up 94 percent, although numbers were 90 percent below 2019, as some borders remained closed to non-essential travel.

The recent easing of travel restrictions improved the region's results for April and May.

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Overall, international tourism saw a strong rebound in the first five months of 2022, with almost 250 million international arrivals recorded, according to the UNWTO Barometer.

This compares to 77 million arrivals from January to May 2021 and means that the sector has recovered almost half, 46 percent, of pre-pandemic 2019 levels.

“The recovery of tourism has gathered pace in many parts of the world, weathering the challenges standing in its way”, confirmed UNWTO Secretary-General Zurab Pololikashvili.

At the same time, he also advised caution in view of the “economic headwinds and geopolitical challenges which could impact the sector in the remainder of 2022 and beyond”.

Notably, rising tourism spending out of the major source markets is consistent with the observed recovery.

International expenditure by tourists from France, Germany, Italy and the United States is now at 70 percent to 85 percent of pre-pandemic levels, while spending from India, Saudi Arabia and Qatar has already exceeded 2019 levels.

Notably, As of 22 July, 62 destinations (of which 39 in Europe) had no COVID-19 related restrictions in place and an increasing number of destinations in Asia have started to ease theirs.

According to the International Civil Aviation Organization (ICAO), the overall reduction in international air capacity in 2022 will be limited to 20-25 percent of seats offered by airlines as compared to 2019.

Such resilience is also reflected in hotel occupancy rates.

Based on data from the industry benchmarking firm STR, global occupancy rates climbed to 66 percent in June 2022, from 43 percent in January.

However, stronger than expected demand has created significant operational and workforce challenges, while the war in Ukraine, rising inflation and interest rates, as well as fears of an economic slowdown continue to pose a risk to recovery.

The International Monetary Fund points to a global economic slowdown from 6.1 percent in 2021 to 3.2 percent in 2022 and then to 2.9 percent in 2023.

At the same time, UNWTO continues to work closely with the World Health Organisation (WHO) to monitor the pandemic as well as emerging public health emergencies and their potential impact on travel.

UNWTO’s forward-looking scenarios published in May 2022 point to international arrivals reaching 55 to 70 percent of pre-pandemic levels in 2022.

Results depend on evolving circumstances, mostly changing travel restrictions, ongoing inflation, including high energy prices, and overall economic conditions, the evolution of the war in Ukraine, as well as the health situation related to the pandemic.

More recent challenges such as staff shortages, severe airport congestion and flight delays and cancellations could also impact international tourism numbers.

Scenarios by region show Europe and Americas recording the best tourism results in 2022, while Asia and the Pacific is expected to lag behind due to more restrictive travel policies.

International tourist arrivals in Europe could climb to 65 or 80 percent of 2019 levels in 2022, depending on various conditions, while in the Americas they could reach 63 to 76 percent of those levels.

In Africa and the Middle East arrivals could reach about 50 to 70 percent of pre-pandemic levels, while in Asia and the Pacific they would remain at 30 percent of 2019 levels in the best-case scenario, due to stricter policies and restrictions.

The UNWTO serves as a global forum for tourism policy issues and a practical source of tourism know-how. Its membership includes 159 countries, 6 territories, 2 permanent observers and over 500 Affiliate Members.