If people think that the tourism industry is pretty much at its peak at the moment, with travel already in such a boom, it seems as though that things will only continue to get better. Come 2025, middle income families or those that are in the middle class will take the most number of international holidays according to global financial company, Visa.
Richard Lung, an international economist and Visa's senior director spoke recently for the company's Travel & Payment Trends Seminar which was held in Dubai. There he pinpointed three key global trends which will greatly influence the travel industry in the coming decade. Namely: one, a new breed of "travelling class"; two, rising digital connectivity and third, a population that is reaching its maturity.
According to a report by Khaleej Times, "By 2025, annual spending on global cross-border travel will reach $1.5 trillion from $1.1 trillion currently, with growth driven by an increasing number of middle income families, according to Visa's 'Mapping the Future of Global Travel and Tourism' study." Therefore, it means that those households which earn $20,000 and above every year are responsible for almost 90 percent of all international travel. More than 37 million households found in the Mena Region will likely fall under this classification by the time 2025 rolls in and about 40 percent of this new class of travelers will end up taking a minimum of one international trip annually, according to an estimate by Visa.
The global financial company also estimated that the Mena region will also garner an increase of annual outbound trips from only 42 million this year to a whopping 65 million in 2026. In turn, this may also cause an increase in the regional outbound travel spent annually by 3.6 percent; from only $77 billion to $110 billion by 2025, two thirds of its rate increase can be attributed to the middle class.
Aside from paying more, travelers will also be better informed with their travels because they will be digitally connected entirely. With so much information available about where to go and what flights to book as well as various options for accommodations, this will promote spontaneity in tourists from the Mena region, as well as show a variety in personalized travel along with other options for tourism.
The young population in Mena region will also counteract the impact of a global population that is on its way to maturity which is the third key trend. According to Visa, places like Dubai and Abu Dhabi which are famous for medical tourism and healthcare infrastructure could benefit greatly from this since the demographic is much focused on obtaining health and comfort as opposed to saving money. Also, Visa believes that "medical tourism is primed for accelerated growth as older travelers seek new treatments, as well as lower-cost or higher-quality care not available in their home country."
Lung also said that, "Global tourism finds itself at a crossroads, with three key mega trends all pointing towards an era of transformation. The Mena region is not isolated from these forces, and is set to gain more than most, given the extent of its growing middle class. The next decade will be one of significant change for the travel and tourism industry and all participants need to start planning for an exciting new future now."
from Indian Chor Bazaar: Top 21 Foreign Trips, Middle Class Indian Can Afford
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