Aussie travellers will shell out for experiences over things and are more likely to spend big on accommodation and dining out, while mainland Chinese tourists will also spend more on luxury experiences despite global economic headwinds.
Mastercard Economics Institute’s 2023 Travel Industry Trends report shows people are still travelling domestically and internationally and continue to prioritise discretionary spending on travel and experiences in the face of rising inflation and interest rates.
Travellers also continue to seek unique experiences. Potentially influenced by social media and entertainment, people are visiting lesser-known destinations in search of cultural immersion.
As of March 2023, global spending on experiences increased by 65 per cent while spending on things was up 12 per cent on 2019.
China’s impact on global tourism
In particular, the reopening of mainland China will influence sector recovery worldwide as outbound tourism expenditure nears pre-pandemic levels.
China’s removal of travel restrictions is also credited for increased hotel occupancy rates in the Asia-Pacific region.
Historically, mainland Chinese tourists over-index on luxury retail (especially apparel) when travelling however by March 2023, Chinese spending on experiences abroad surged from virtually zero last year to now just below 2019 levels.
Tourist spend on the up in Australia
In good news for the Australian tourism economy, Asia-Pacific tourists are most likely to travel to Australia and the US during the spring and summer seasons.
Tourists in Australia spent 217 per cent more on experiences and 138 per cent more on things in March 2023 compared to March 2022.
Mainland Chinese travellers specifically could boost the APAC region overall and outperform the rest of the world, according to Mastercard Economics Institute estimates.
Mastercard Economics Institute’s Chief Economist for Asia David Mann said: “As people around the world prioritise experiences over things, strong travel demand is expected to last far beyond the initial ‘revenge travel’ bump.”
“As we look ahead to the peak summer travel season, the big question is whether flight and accommodation supply can keep up with demand.”
Read the full report here.
