Research Insights APAC expected to regain top spot as the world's largest regional travel market by 2025

APAC expected to regain top spot as the world's largest regional travel market by 2025

Published:
February 2023
Analyst:
Phocuswright Research

Asia Pacific, the world's largest regional travel market pre-pandemic, slipped to second position in 2021 following the devastating effects of the pandemic, with the U.S. rising to the top spot. The APAC travel market is expected to make a slower comeback compared to other major regions around the world. In 2021, health-related caution among travelers, as well as government restrictions on mobility, especially international, led to APAC travel market growth of a mere 4% to US$231.6 billion.

Phocuswright Chart: APAC Total Travel Gross Bookings
(Click image to view a larger version.)

The recovery in 2022 relied on a strong domestic travel demand and varied by country, depending on the extent of their reopening. The Asia Pacific travel industry is preparing for a rebound in 2023 with the rebuilding of air connectivity, strong hotel pipelines, the buoyancy of domestic tourism activity and the opening up of China. The total market will reach a projected $490 billion in 2025, 10% higher than its 2019 value. 2025 is also the year when Asia Pacific is expected to regain its top spot as the world's largest regional travel market.

For this report series, 12 markets comprise the Asia Pacific travel market: Australia-New Zealand, China, India, Japan, Northeast Asia (including Hong Kong, Macau, South Korea and Taiwan) and Southeast Asia (including Indonesia, Malaysia, Singapore and Thailand). Collectively, the series provides comprehensive market sizing and projections for the Asia Pacific travel industry from 2019-2025, including analysis of key segments, country-level share and trends, distribution dynamics and more.

Other reports in the Asia Pacific Travel Market Report 2021-2025 series:  

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