Asia Aviation Industry

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Travel demand and transportation in Asia Pacific
Index
Trends of travel demand in Asia Pacific region 4
Australia 7
Cruise Industry 7
Aviation Industry
India 8
Cruise Industry 8
Aviation Industry 8
New Zealand 9
Cruise Industry 9
Aviation Industry 10
China 10
Cruise Industry 10
Introduction
Over the last decade, the Asia Pacific region has been the fastest growing tourism region in the world. Tourism is one of the most important sectors in a large number of Asia Pacific countries. Increases in economic growth, disposable income and leisure time, political stability, and aggressive tourism campaigns, among other factors, have fueled the significant growth of tourism. Asia is recognized as the world??™s fastest growing transport market. According to forecasters the total schedule traffic within the Asia pacific region will more than double within a few years time.
Transportation is an integral part of the tourism industry. It is largely due to the improvement of transportation that tourism has expanded. Tourism is all about travel; and the role of transportation in its operation is vital. It is largely due to the improvement of transportation that tourism has expanded. The advent of flight and cruise industry has shrunk the world, and the motor vehicle and railway networks have made travel to anywhere possible. Culpan (1987, p 546) identified transportation modes and management as the ???important ingredients of the international tourism system,??? acknowledging that linkage by air, sea and land modes is essential for the operations as well as the availability of support services such as fuel stations, auto repair, motels and rest facilities for land travel.
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Trends of travel demand in Asia Pacific region
Tourism is one of the major industries for many Asian countries, attracting sometimes much-needed foreign exchange, and stimulating economic development in industries from hospitality, construction, property development, transportation, and retail, to a mass of spin-off small business areas such as currency exchange, restaurants and bars, and tour operations. Singapore, Hong Kong and Thailand, Australia and New Zealand remain the dominant Asian tourism destination brands, but competition is high as country brands such as Malaysia, Indo-China, South Korea, China, Philippines and Indonesia move to increase their brand recognition and brand power.
In the past the Asian destinations were able to market their culture and as cheap destination but since globalization and emergence of new destinations like Cook Island, Fiji and Tonga, and with the growing affordability of air travel, the tourism market in the Asia Pacific region is highly competitive. At present the industry as a whole is characterized by a varied list of significant trends, suggesting many threats and opportunities.
These include:
The increase in perceptions of terrorist threat, embodied most graphically in Bali, has prompted the tourists from western countries to choose Australia, New Zealand and other surrounding Pacific islands as their preferred destination. Most significantly, it has been US domestic tourism that has been most affected worldwide, and while US incoming tourism has seen some retraction, inter-Asian and Asia Pacific tourism has been less affected.
China is already the largest out-going tourist market in the region, and the increase in mainland Chinese tourists to international destinations is a trend that will increase in the foreseeable future. Asian countries, especially those with large populations of ethnic Chinese like Singapore and Malaysia, have upped their promotion to the mainland Chinese market. According to Hall and Page, 2003, China??™s share in of Asia ??“Pacific air traffic is estimated to increase from 16% in 1995 to 26% in 2010.
New campaigns from relative market newcomers such as India, South Korea, New Zealand, Egypt, and the Philippines have been launched in the past few years, competing with mainstays Australia, Hawaii, Singapore, Thailand and Malaysia.
According to Findley, Sien and Singh, 1997 A trends to “sharing” tourism, with countries cooperating in offering packages spanning several countries, increasing value and synergies both to the customer and each economy.
Online Bookings regarded by many in the industry as an area where greater growth is to come, Asia alone saw 546% growth in internet users for the period of 2000-09 as compared to 304% growth in the rest of the world. Asia also has to date the world??™s largest number of internet users according to the Internet World Stats.
Australia
Cruise industry
Aviation industry
India
Cruise industry
The Indian government is seeking to encourage stronger growth in the cruise sector, in order to exploit the potential of India??™s long coastline. The government is targeting stop-off arrivals of 10 million by 2010. This would imply an inflow of US$9 billion in revenue, and the creation of 15 million new jobs.
The boosting India??™s cruise sector would offer valuable support to the industry. India has a varied and extensive coastline, which to date has not been exploited in terms of cruise potential. As such, the government has stated that it will seek to improve cruise infrastructure, encouraging a diversification from concentration on cargo ports to those more oriented towards tourism. As part of this plan, it will setup cruise terminals at Chennai, Mumbai, Goa and Kochi, and reform the tax on bunkers systems to provide more incentives for investment in the cruise industry. (Bird Travels launches Silversea Cruises in India, 2009)The Indian cruise sector is at a nascent stage with less than 0.5% share and is evolving with a huge potential for growth. It is estimated at Rs. 240, 0000 million with approximately 80,000 travelers every year. The sector is increasingly gaining momentum and popularity amongst Indian travelers. With the Indian economy getting stronger and spending power increasing, Cruising in India will increase at a steady pace. India??™s travel and tourism industry is expected to grow at a CAGR of 7.5% by 2014 according to the World Travel and Tourism Council (WTTC). This is well above the expected growth in South Asia and the world aggregate level. High disposable incomes and the significance of the middle class over 150 million is expected to lead the growth of the sector in the coming years.
Aviation Industry
Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. According to (India??™s aviation growth phenomenon, 2007) Private airlines account for around 75% share of the domestic aviation market. Internationally, India continues to show steady year on year growth, with a 7% increase in the number of flights into and out of India (an additional 835 flights and more than 200,000 seats a month). The number of flights has virtually doubled from 6,800 in May 2001 to 13,200 in May 2007. Low cost operations account for 44% of all flights within India [compared to 22% in UK and 19% in US]. The chart below reveals statistics from an analysis of domestic and international activity for May 2007 vs. May 2006 at India??™s five major airports:
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New Zealand
Cruise industry
Aviation Industry
China

Cruise industry
Aviation Industry
Conclusion
From the above mentioned discussion have given a insight into the nature of the travel and tourism industry in the Asia Pacific region, along with the key trends and characteristics of the trends in the air travel and cruise industries of the region. As the consumer preference change with the changing time, it is important for the tourism bodies of respective countries to evolve along with the change in technology and trends. Low cost carrier models adopted by various airlines are a step in right direction, as they made flying possible for numerous tourists, low on budget, to fly.
Reference List

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