With the strong recovery in 2022, regions in the world are resuming tourism as international traffic increases. International tourism is expected to keep recovering in 2023. However, tourists will consider spending less and choose a close destination in the current economic impacts and challenges.
The recovery of regions
According to UNWTO latest data in the “World Tourism Barometer” report, more than 900 million people traveled overseas in 2022, twice over 2021. Although it is just 63% compared to 2019, in general this is a positive signal of recovery. All regions recorded a rebound in international arrivals, especially the Middle East (up 83%) and Europe (up 80%). In contrast, the Asia-Pacific region was the slowest to recover, reaching only 23% as countries in this region lifted COVID-19 restrictions recently. In addition, it was also somewhat affected without China, the large market which closed to implement the zero-COVID policy in a long time.
The tourism industry keeps recovering in 2023
International tourism is forecasted to continue to recover in 2023 due to prolonged pent-up demand, especially in Asia Pacific.
Based on UNWTO scenarios, the number of international tourists this year could reach between 80% and 95% of pre-pandemic levels. The Middle East and Europe are expected to reach or exceed pre-pandemic levels, following a strong recovery in 2022. In the Asia-Pacific, the opening of source markets will underpin the recovery in 2023. Most notable is the lifting of COVID-19 restrictions in China, the largest outbound travel market before the pandemic. Overall, this is good news for Asian destinations. Nevertheless, lately, the Ministry of Culture and Tourism of the People’s Republic of China announced that it would initially allow the reopening of tours to 20 countries, including Southeast Asian countries such as Thailand and Indonesia. So the full return of this market will be slower than initially forecast.
Challenges remain
Economic, health concerns as well as geopolitical tensions will affect the recovery of international tourism. According to surveys from experts, economic challenges such as inflation, interest rate hikes, and concerns about recession will have a great impact on the tourism industry. That’s why tourists will consider their spending for travel.
Outbox’s latest survey of some markets in Northeast Asia also shows that travelers will consider the cost and length of trips due to financial and health concerns. They also prioritize choosing closer destinations to save costs and reduce health risks. Moreover, geopolitical tensions, health issues related to COVID-19 and workforce shortages are also factors affecting the recovery of international tourism in the coming time.
