Asia Pacific Tourism Arrivals Grow in May, But Slowdown Continues

For the first five months of 2012, the average growth in international visitor arrivals into Asia Pacific destinations was 6% up year-on-year: PATA;  India was up 5% during May 2012

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International Visitor Arrivals into Asia Pacific1 destinations during May 2012 showed a collective gain of 3% year-on-year according to preliminary results released today by the Pacific Asia Travel Association (PATA). This was the second consecutive month with a declining growth rate and heralds the impact of the various economic contagions across the globe. For the first five months of 2012, the average growth in international visitor arrivals into Asia Pacific destinations was 6% up year-on-year.

North America is showing a similar but more volatile growth pattern. After registering a solid 12% increase in foreign arrivals during March, the growth trend reduced to just 0.5% in April and then contracted by1% in May 2012. Canada and the USA managed to sustain positive growth of 2% and 1% respectively during the month but a contraction in international arrivals into Mexico for both April and May (-6% each month) has affected the overall sub-regional performance. A slowing of intra-regional travel demand was the major negative factor along with a 4% drop in UK arrivals.

Growth to Northeast Asia was also somewhat slower with a 4% increase, year-on-year. A general softening of foreign travel flows and falling demand between China and its two SARs continued to constrain overall growth in arrivals to China (-2%) and Macau SAR (-7%) during the month of May. Arrivals to Chinese Taipei (+27%), Hong Kong SAR (+13%) and Korea (ROK) (+27%) were however robust and well supported by a rebound in arrivals from Japan and the resilient Chinese market. Japan had an exceptional result (+87%) but has yet to reach the pre-crisis level of international arrivals, although that is likely to happen within the next few months.

Foreign arrivals to South Asia grew by a moderate 6% during the month. Despite a weak result from the Maldives (-1%) and a relatively slower month for Nepal (+9%), the overall trend for the sub-region still showed some promise compared to the previous month. India was up 5% during May 2012 while Sri Lanka managed a double-digit growth in arrivals (+18%). This upward trend seems to be continuing as early results for June suggest another lift in the arrivals growth rate.

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