APAC tourism recovery to continue, albeit slowly: Fitch
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The tourism recovery in Asia Pacific (APAC) is expected to continue in 2024, albeit more slowly due to less favorable base effects, according to Fitch. The firm forecasts that visitation volume in the region will reach 92% of the 2019 level, up from 65% in 2023. International tourism receipts in nominal US dollars are expected to exceed the 2019 level by about 6.0% this year. Fitch's baseline assumption is that a full recovery of international tourism arrivals in APAC will materialize in the first half of 2025. The tourism recovery in the second half of 2024 is supported by the region's economic resilience, additional flight capacity, pent-up demand from major visitor markets, policy efforts to reignite tourism, and local-currency weakness. However, the prospects for the tourism recovery remain vulnerable to risks such as slow restoration of air traffic, higher airfares and energy prices, heightened geopolitical tensions, and a global shock or economic downturn. Fitch also highlights the impact of climate change on economies that depend on nature-based tourism, particularly in Southeast Asia. The credit buffers of most Fitch-rated APAC sovereigns are expected to be sufficient against the risks of a sharp tourism downturn, but frontier markets and destinations heavily reliant on tourism, such as Thailand, face greater vulnerabilities.

#Tourism #AsiaPacific #Fitch #Recovery #Economy

https://www.nst.com.my/business/economy/2024/07/1078570/apac-tourism-recovery-continue-albeit-slowly-fitch