Mastercard Economics Institute’s Travel Industry Trends 2023 - Asian Assessment
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B2B Cambodia
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The Mastercard Economics Institute’s Travel Industry Trends 2023 report offers key insights about the global state of travel and still maintains mainland China’s reopening is expected to bolster growth globally and the pent-up demand has yet to be fulfilled - with a concentrated impact in the Asia-Pacific.
The report adds that worldwide real GDP growth is down to 2.8% YoY throughout 2023 from 3.4% in 2022 according to the latest estimates from the Mastercard Economics Institute. Cambodia has recently revised down its GDP forecast for 2023 to 5.6 per cent so it is still strongly placed in comparison.
Reopening of Mainland China
Mastercard Economics Institute chief economist for Asia David Mann said "In 2023, travel came roaring back in Asia as China reopened its borders and other markets eased the last of their pandemic-era travel restrictions." The report adds that travellers from mainland China "could bolster growth globally with a concentrated impact in Asia Pacific expected to help the region outperform the rest of the world. Cambodia has been reliant on Chinese visitors but has yet to see a rebound in 2023. The Mastercard report states that "travellers from mainland China historically spend more on retail (especially apparel) and groceries over accommodations or eating out."- By March 2023, spending on experiences* was 93% of where it was in 2019 despite minimal travel last year.
- Economies in the Asia Pacific region will benefit given their strong ties to international trade, tourism, and geographical proximity.
- Mastercard's report suggests that in March 2023, Chinese spending on experiences abroad surged from virtually zero in 2022 to just below where it was in 2019.
Cambodia Tourism 2023
In fact, the most recent data from the Cambodian tourist authority says that the total number of visitors from countries to Cambodia was 1.72 million in Q1 2023, a 600 per cent improvement on the same period in 2022 - and that Chinese visitors were ranked third.- Thailand - 570,000
- Vietnamese - 285,000
- Chinese - 184,000
Other Key Findings - Mastercard Economics Institute’s Travel Industry Trends 2023
Leisure and business travel is growing at the same pace according to the report and one of the main drivers has been the lifting of travel restrictions in Asia/- Global leisure travel flight bookings increased by around 31% in March 2023 compared to the same month in 2019.
- Corporate flight bookings caught up to leisure flight bookings driven - regions with a strong return to office culture have been the main cause of this.
- The most significant growth in commercial travel and entertainment expenses are led by Asia Pacific and Europe (up 64% and 42%, respectively) between January-March 2023.
- The US and Australia remain favourite destinations for travellers from the Asia Pacific for Spring and Summer holidays.