Filipinos joined the emerging “global traveling class” visiting more than five countries in 2015, according to a new Visa report.
The report “Mapping the Future of Global Travel and Tourism in Asia Pacific” forecasts that some 109 million Asia Pacific households are expected to go on an international trip once a year in the next decade, up 65 percent by 2025 compared to last year’s figure.
The report maps out travel and tourism trends in the next 10 years (2015 to 2025) and found average annual spending by households during a trip is likely to rise 8 percent to $5,230.
It found that among Asia-Pacific travelers with highest average number of countries visited by a Visa credit cardholder in 2015, the Philippines ranked fourth with five countries visited along with Hong Kong, behind India with 6.8, New Zealand with 6.7 and Australia with 5.9.
The report also identified key drivers expected to impact global travel, including a growing middle class, greater Internet connectivity, improved transportation infrastructure across many countries and an aging global population with more time for leisure travel.
“Traveling internationally will become more common and attainable in the future thanks to changing demographics, combined with technology advances that make traveling abroad easier and less expensive,” said Wayne Best, chief economist at Visa Inc. “What will emerge is an expanding “traveling class” that will spend a growing portion of their household income on cross-border travel. Tomorrow’s traveling class will likely be older and hail from emerging markets – looking very different from today’s typical international traveller.”
Growing income level around the world is creating a new “traveling class”. The study uncovered that worldwide, households that make at least $20,000 per year account for more than 90 percent of spending on international travel today.
By 2025, it is estimated that nearly half of all global households (945 million) will be within this income range, spurring greater international travel and spending, particularly by households from emerging markets.
In Asia Pacific, households in China ($255 billion), Hong Kong ($47.4 billion) and Singapore ($44.9 billion) are likely to be the top markets with the largest outbound travel spend by 2025. However, emerging markets Indonesia (211 percent), Vietnam (132 percent) and India (101 percent) are likely to experience the sharpest increases in spending. The Philippines’ increase is in line with the regional average increase.
Travel spend among top five Asia Pacific markets (according to 2025 values) with households earning $20,000 or more annually by projected 2025 spend. Figures are based on constant 2015 prices.
By 2025, travelers aged 65 and above will more than double their international travel to an estimated 180 million trips, accounting for one-in-eight international trips globally. The study estimates that older travelers will be able to afford longer trips that provide greater comfort at higher prices.
Trends such as “medical tourism” whereby aging populations undertake international travel for medical purposes will also take hold in the future. Despite its youthful population, the Philippines will triple the number of its elderly travelers in a decade.