A recent UNWTO study states that about 1.5 billion international tourist arrivals were recorded in 2019, globally. A 4 pc increase on the previous year which is also forecast for 2020, confirms tourism as a leading and resilient economic sector, especially in view of the current uncertainties. By the same token, this calls for such growth to be managed responsibly so as to best seize the opportunities tourism can generate for communities around the world. According to the first comprehensive report on global tourism numbers and trends of the new decade, the latest UNWTO World Tourism Barometer, this represents the tenth consecutive year of growth.
All regions saw a rise in international arrivals in 2019. However, uncertainty surrounding Brexit, the collapse of Thomas Cook, geopolitical and social tensions and the global economic slowdown all contributed to slower growth in 2019, when compared to the exceptional rates of 2017 and 2018. This slowdown affected mainly the advanced economies and particularly Europe and Asia and the Pacific.
Looking ahead, a growth of 3 to 4 pc is predicted for 2020, an outlook reflected in the latest UNWTO Confidence Index which shows a cautious optimism: 47 pc of participants believe tourism will perform better and 43 pc at the same level of 2019. Major sporting events, including the Tokyo Olympics, and cultural events such as Expo 2020 Dubai are expected to have a positive impact on the sector.
A strong upward trend in India’s outbound travel
The strong growth in outbound trips from India continued seamlessly again into 2019. In particular, destinations within Asia benefited from this upward trend. As in Asia overall, holidays abroad are becoming increasingly popular in India too. The latest findings of the World Travel Monitor by IPK International point to further growth in outbound trips from India in 2020. The World Travel Monitor is based on the results of representative interviews with more than 500,000 people in over 60 countries worldwide. It has been compiled for more than 20 years and is recognised as the most widescale continuous survey of global travel trends.
Above-average growth in outbound trips
Despite a large population and economic development, India is not one of Asia’s high-volume source markets for outbound trips. It ranks fifth, a long way behind China, South Korea, Japan and even Taiwan. However, in recent years India’s market has recorded above-average growth in outbound travel: With an increase of seven per cent in the first eight months of 2019, outbound trips from India exceeded the average figure for Asia overall.
Destinations within Asia in demand
The main beneficiaries of India’s growth in outbound travel are destinations in Asia, whose market share rose to almost 70 pc in 2019. Destinations in Thailand, Indonesia, Malaysia and Japan were in particularly high demand and reported double-digit growth. At 7 per cent, travel to North America increased significantly too, whereas trips to Europe were below average during the first eight months of 2019.
Holidays abroad more and more popular
The Indian market’s recent trend towards more frequent holidays abroad continued in 2019. Currently, holiday trips account for around 65 pc of outbound trips from India. However, this figure is still well below par compared with Asia’s average overall (around 80 pc). City breaks and round trips are by far the most popular outbound holiday types among the Indians and now represent a total market share of almost 65 pc. Sun and beach holidays also benefited from the growth in outbound trips and represent 16 pc of the holiday market. However, compared with other Asian source markets this figure is still below average.
High affinity for travel agencies
As well as bookings over the internet, Indians travelling abroad made above-average use of travel agencies. With a market share of almost 45 pc, travel agency bookings exceeded the Asian average as well as the global average, which is around 25 pc.
Strong growth again in 2020
IPK International forecasts a 6 pc increase in outbound travel from India in 2020, thus continuing strong growth of the Indian market. This forecast is based on the findings of the World Travel Confidence Index of IPK International, which as part of World Travel Monitor polls people’s travel intentions for the next 12 months.
Rolf Freitag, CEO of IPK International, will present the final findings of the World Travel Monitor for 2019 at the ITB Future Day of the ITB Berlin Convention along with forecasts for 2020.
