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MARCH 2021ASIA PACIFIC AND THEGLOBAL TRAVEL RECOVERYThe true value of APAC travel and how to influencewhere that spend is headed.
APAC and the GlobalTravel Recovery 20213INTRODUCTION5EXECUTIVE SUMMARY6APAC CONTRIBUTION TO THE GLOBAL LUXURY TRAVEL UNIVERSE7THE HIGH NET WORTH APAC LUXURY TRAVELLER20PASSIONS OF APAC’S WEALTHY22METHODOLOGY24REPORT AUTHORSIn collaboration with2
APAC and the GlobalTravel Recovery 2021INTRODUCTIONTowards the end of 2020, Bartonpartnered with ILTM to give theluxury travel industry the latestinsights into the APAC region amidstthe pandemic. Despite the effects ofCOVID-19 persisting globally, manyof the 55 countries that make up theAPAC region have been consideredexcellent examples of resilienceduring a period that has upended thetravel industry like never before.With 2021 now underway, businesseseverywhere are understandablylooking for a jump-start in theindustry, and it is in this that theAPAC region continues to drawattention. APAC is the fastestgrowing wealth region in the world,which was what identified it as a keylocation for the travel industry toexpand into long before COVID-19was known about. Despite thechallenges faced globally sincethe pandemic began, the wealthgrowth trend seen in APAC prior tothe pandemic has only paused – andin some cases – even increased.The reasons for this buoyancy aremanifold. After being the hardest hit17 years ago by the SARS epidemic,APAC is much more used to pivotingin response to viral threats than theIn collaboration withwestern world. Moreover, there hasalways been a huge market for thosebased in APAC to travel within theregion, which is fulfilling the stillprevalent desire for travel amongHigh Net Worth (HNW) individuals.It is also clear, of course, that this isnot a standard recession, allowingfor well-prepared wealthy APACtravellers to continue to accumulatetheir wealth in readiness for whenthe world’s borders are fully openonce more.With the financial resource, desireand inherent ability to pivot duringincredible disruption, APAC travellersshould be seen as pioneers ofthe new luxury travel landscape,providing the much neededeconomic injection the industry hasbeen waiting for. Utilising data thatwas collated and validated duringthe year of a pandemic, this reportreveals a long-term view of the APACregion that provides a high degreeof cautious optimism for 2021 andbeyond.3
APAC and the GlobalTravel Recovery 2021THE REBIRTHOF APAC LUXURY TRAVELTHE FACTSThe majority of the humaninhabitants of the world live in theAsia Pacific (APAC) region. Of anestimated global population of 7.5bn,4.3bn (60%) live in the 55 countriesscattered around the Western PacificOcean.APAC’s population of HNWindividuals may represent just 0.15%of this population (6.4m), well belowthe global average of 0.3%, but it isthe fastest growing population ofHNWs anywhere across the globe,with a Compound Annual GrowthRate (CAGR) of 7.6%. On this basis,the region will achieve a total HNWpopulation of over 8m within thenext few years. Four out of the top10 countries for HNW populationsare based in APAC, and many of thedynamic countries with the fastestgrowth in HNW population are basedin the region. Vietnam, China, India &the Philippines have HNW populationCAGRs of around 10%, far above theregion’s average of 7.6% and doublethe growth rate of Europe (5.0%).China alone has 32 of the fastestgrowing HNW cities on earth.In collaboration withChina’s population makes up roughlyone third of the APAC region, at1.398bn people. Its giant economiccontribution of 13trn dwarfs that ofother APAC countries, contributingaround 45% of the region’s GDP. Theregion’s emerging powerhouse, India,has a similar population at 1.353bn,and a global top 5 GDP of around 2.7trn.The region’s more established anddeveloped wealthy nations withmodern economies, representedby countries including Australia,Japan, New Zealand, Hong Kong,Singapore & South Korea have someof the highest living standards inthe world, with an average GDP percapita (nominal) across these nationsof around 48,500 – comparable tohighly developed European nationslike Germany, France & the UnitedKingdom.4
APAC and the GlobalTravel Recovery 2021EXECUTIVE SUMMARYAs COVID-19 lessens its grip onthe world, the economies of theAsia Pacific region will likely beamong the first to return.As restrictions ease, in-regiontravel will be at the heart of therecovery - an estimated 57.5%of APAC traveller’s outboundspend is spent within the region.Encouraging APAC’s luxurytravellers to roam more widelywill be key to making 2021 asuccessful one for global luxurytravel as these travellers alreadycontribute 363bn to theGlobal Luxury Travel Universe(consisting of flights, lodgingsand activities).A huge contribution to thistotal is made by APAC’s HighNet Worth (HNW) population,which numbers 6.4m individuals.Despite only being 0.15% of theregion’s massive population,they contribute almost half ofthe region’s total to the GlobalLuxury Travel Universe (48%).In collaboration withAPAC is the fastest growingregion for wealth in terms ofboth population (number ofHNWs) and total wealth. Giventhe very strong link betweenwealth and luxury travel spendfrom the region, this meansvery strong growth in the APACcontribution to the total spendon the Global Luxury TravelUniverse.Over the last decade, China hasbeen the biggest success storyin terms of wealth growth in theworld, not just APAC. As a result,it makes a huge contribution tothe total APAC spend related totravel. For instance, 49% of thewhole region’s spend on airfaresand lodging, which equates to 114bn, is made by travellersfrom China. Of this, over half(52%) is made by China’s HNWpopulation, which is around29% of the total APAC HNWpopulation.However, the future of wealthin APAC is not a solely Chinastory. Well-established wealthymarkets such as Japan, Australiaand South Korea, along withfast-growing ones like Vietnam,India and the Philippines will allcontribute to the creation of anever bigger HNW population.APAC travellers, Inbound &Outbound, contribute 251bnto the 1.54trn Global LuxuryTravel Ecosystem of activities.Outbound APAC traveller spendis 28% of this, above the globalaverage of 23%. This is reflectiveof the fact that many APACHNW individuals must travelinternationally to take part insome of the most favouredactivities in the Luxury TravelEcosystem, such as large scalesporting events.APAC’s HNW populationcontributes almost half of theregion’s Outbound global spendon Ecosystem activities at 34.4bn (48%), demonstratingjust how important the region’swealthy are to the global luxurytravel experience economy.5
APAC and the GlobalTravel Recovery 2021APAC CONTRIBUTION TOTHE GLOBALLUXURY TRAVELUNIVERSEAPAC TRAVELLERS SPEND 363BN ON GLOBAL LUXURYTRAVEL UNIVERSETravellers based in the APAC region contribute 363bn (17.8%) to the GlobalLuxury Travel Universe. This contribution is defined as the amount spent( 112bn) on airfares and lodging annually by APAC HNW - those with 1m in wealth - combined with the yearly spend by all APAC travellers (Outboundand Inbound) on the Global Luxury Travel Ecosystem of activities linked withtravel. 112 BNAPAC Global Airfares& LodgingAlready one fifth of the globaltotal, the APAC contribution islikely to grow rapidly as the regionis the fastest growing in terms ofreal wealth. In addition to rampantgrowth, HNW individuals are drivinga huge proportion of the spend thatIn collaboration with251 BNAPAC Luxury TravelEcosystem Spendmakes up the Global Luxury TravelUniverse. As we will discover, thispresents a massive opportunity formarketers needing to target theirspend on a select and lucrativecohort of luxury consumers.6
APAC and the GlobalTravel Recovery 2021THE HIGH NET WORTHAPAC LUXURYTRAVELLERAPAC, though it represents the largest region in terms of global population(around 4.3bn people, 60% of the total global population) has just 6.4mof the global HNW individuals. These archetypal luxury travellers makeup a tiny proportion (0.15%) of the region’s giant population, but a hugeproportion of its travellers – Inbound and Outbound.28%EMEA28%APAC44 %Of the total global spendon airfares and lodging( 1.41trn), 16.4% ( 231bn)is contributed by individualsfrom APAC. But almosthalf of this figure ( 112bn)is contributed by HNWindividuals, significantlymore than the globalaverage of 36%.AmericasCountry/RegionAirfares & Lodging spend (all)(Inbound & Outbound)Airfares & Lodging spendHNW(Inbound and Outbound)HNW as %contribution of spendGlobal 1.41trn 507.6bn36%APAC 231.5bn 112bn48%Source: Barton, 2020This shows the enormous value of APAC’s small but fast-growing HNWpopulation to luxury travel businesses. APAC’s population is the fastestgrowing in the world, with a compound annual growth rate (CAGR) of7.6%. Whilst the population of aspirational travellers from the region willalso grow, the sheer size of the HNW contribution it’s disproportionatelydirect link with travel demand, and the speed of their population growth,commands attention.In collaboration with7
APAC and the GlobalTravel Recovery 2021CHINA’S GROW TH CONTINUES TO IMPRESSA huge chunk of APAC’s contribution of 231.5bn towards global airfaresand lodging (Outbound and Inbound) is made by individuals from China around half (49%) of the total. China’s unique success story in wealth growthis yielding the largest population of affluent individuals in the region, hungryfor the experiences that travel can bring.Chinacontributeshalf of APAC’sspend onairfares &lodging49 %APAC excl. China51%ChinaThe HNW factor is evenmore significant in China.Of APAC’s 6.4m HNWpopulation, just under athird (29%) come fromChina – which has the secondhighest concentration ofHNWs in the world, afterthe USA. China’s HNWcontribution towards thecountry’s massive spend of 114bn annually on airfares& lodging is well over half(52%) at 59.4bnCountry/RegionAirfares & Lodging spend (all)(Inbound & Outbound)Airfares & Lodging spendHNW(Inbound and Outbound)HNW as %contribution of spendGlobal 1.41trn 507.6bn36%APAC 231.5bn 112bn48%China 114bn 59.4bn52%APAC excl. China 119bn 52.6bn44%Source: Barton, 2020However, China is a part of a wider story in APAC that combines longestablished, wealth centres with newer ones growing at a record pace.Japan’s HNW population is over 1.6m strong, third only behind China andthe USA. South Korea and Australia each have HNW populations just belowhalf a million (around 470k), and are well within the top 10 countries withthe highest HNW populations.Vietnam is not currently one of the top nations for HNW population size, butit is fourth overall for HNW population growth, with an annualised growthrate (CAGR) of 10.1%. The Philippines is not far behind with a rate of 9.4%In collaboration with8
APAC and the GlobalTravel Recovery 2021MA JORIT Y OF INTERNATIONAL TRAVELIS WITHIN APACA huge amount of international travel occurs within the region itself.Outbound travel spend for all individuals from APAC is estimated to bearound 65bn annually. Of this, an estimated 57.5% ( 37.4bn) is spent withinthe region itself. The remainder ( 27.6bn) is spent across the world’s otherregions.Travellers from China contribute 16.9bn out of this 37.4bn spend withinthe region, 45% of the total, showing once more China’s dominance andvalue to other nations within APAC.A big portion of the total in-region spend comes from the HNW population,who spend 18.1bn out of the 37.4bn total – almost half (48%). ChineseHNWs alone spend 8.8bn, which is 23.5% of APAC’s total (all wealth levels)within region spend, and 48% of their own nation’s spend.Country/RegionAirfares & Lodging spend (all)(Inbound & Outbound)Airfares & Lodging spendHNW(Inbound and Outbound)HNW as %contribution of spendAPAC 37.4bn 18.1bn48%China 16.9bn 8.8bn48%APAC excl. China 20.5bn 9.3bn45%Source: Barton, 2020The airfares & lodging spend outside of the region is also dominated by the HNWpopulation of APAC & China. Of the 27.6bn spent by APAC travellers outside of APAC, 13.3bn is contributed by its HNWs. Of this, 4.2bn is contributed by China’s HNWpopulation – 31.5% of the total APAC HNW spend.Country/RegionAirfares & Lodging spend (all)(Inbound & Outbound)Airfares & Lodging spendHNW(Inbound and Outbound)HNW as %contribution of spendAPAC 27.6bn 13.3bn48%China 8.1bn 4.2bn52%APAC excl. China 19.5bn 9.1bn47%Source: Barton, 2020APAC TRAVELLERSWITHIN THEAPAC REGIONIn collaboration with57.5%is spent incountries withinAPAC regionAPAC Travellers aifares &lodging9
APAC and the GlobalTravel Recovery 2021APAC CONTRIBUTES 251BN TO GLOBAL LUXURYTRAVEL ECOSYSTEMThe Global Luxury Travel Ecosystemis made up of the businesses thatoffer experiences to travellers,excluding airfares and lodgings.Globally, the luxury travel ecosystemis estimated to be worth 1.54trna year and of this APAC travellerscontribute 251bn (16%). Of the 251bn they spend, around 72bnis during international (Outbound)travel, both in the APAC region andbeyond. The remainder (72%) isspent domestically.The APAC Outbound proportionatespend (28%) is greater than theglobal average, which is just 23%.This is partly due to the fact thatmany of the activities included in theGlobal Luxury Travel Ecosystem takeplace outside the APAC region.APAC HNWspend onecosystemactivities is 48%of total spendIn collaboration withHNW CONTRIBUTIONAPAC’s HNW population is a massivecontributor to this Outbound spend.They contribute 34.4bn out ofthe 72bn – nearly half (48%) ofthe APAC total. They are also asignificant part of the global HNWspend on Ecosystem activities duringOutbound travel, contributing over aquarter (26%) of the 130bn total.Given that the global average HNWcontribution towards global luxuryecosystem spend is 37%, the APACHNWs’ contribution highlights howimportant this group is to regionaland global luxury ecosystem activityspending. This is despite manyecosystem activities and experiencesthat are core to global luxury travel– such as major sporting events –taking place far away from the APACregion. Understanding and usingthese passions will be key to drawingthis market back out to the rest ofthe world.APAC HNW Spend 34.4BNAPAC Non-HNW Spend 37.6BN10
APAC and the GlobalTravel Recovery 2021PEAKING APAC’S INTEREST IN INTERNATIONAL TRAVELThe Global Luxury Travel Ecosystem is a defined set of activities linked totravel that are particularly attractive to luxury travellers. The overall globalOutbound Luxury Travel Ecosystem is worth over 347bn. Of this, APACtraveller’s spend 72bn – one fifth of the total.Total Outbound Global LuxuryTravel Ecosystem ( 347bn)APAC EcosystemSpend 72BNAPAC Global Ecosystem 275BNThey are not necessarily ‘luxury’activities themselves, however theyare select. For some categories,these activities often take placeoutside of the APAC region, such asthe elite sporting events, whereasothers are more universal.FOOD & DRINKFood & Drink is the most significantcategory of the Global LuxuryTravel Ecosystem, and its mostuniversal. Within the region, APACis known for its enormous varietyof cuisines and massive range ofeating establishments, from simplestreet food stalls where locals andtourists mix to the elegant, worldleading Michelin-rated restaurantsof Singapore, Tokyo & Hong Kong.When they travel internationally,whether within the region orbeyond, APAC’s luxury travellers areparticularly keen on formal diningexperiences, contributing around30% of the global visitor revenueto Formal Dining. To Casual Dining(cafes, fast food) global revenue,they contribute just 12% and todrinks in bars, just 11%Type of activityAnnual revenue from allGlobal visitorsAnnual revenuefrom allAPAC visitorsAnnual revenue fromHNWGlobal visitorsAnnual revenue fromHNWAPAC visitorsFormal Dining 161bn 48.8bn 106.5bn 28.8bnCasual Dining 22bn 2.6bn 1.6bn 412.9mBars 77.4bn 8.7bn 5.6bn 1.4bnTOTAL 261.4bn 60.1bn 113.7bn 34.3bnFigures are total global spend in US In collaboration with11
APAC and the GlobalTravel Recovery 2021Food & drink Outbound spend by APAC’s HNW luxury travellers is an estimated 34.3bna year, 57% of the total spent by international travellers from APAC. Their proportionatespend on more expensive formal dining (restaurants) is far higher than their proportionatespend on cheaper casual dining (cafes, fast food). Of the latter, APAC’s HNWs contribute just16% of the APAC total; of the former it is 59%. APAC HNW Outbound travellers are howeversignificantly above the global HNW average for spend in cocktail bars. Whereas globalHNWs contribute just 7.2% of the total global visitor spend, APAC HNWs represent 16% ofall APAC’s spend.Type of activityAnnual revenue from allAPAC visitorsAnnual revenue from allChina visitorsAnnual revenuefrom HNWAPAC visitorsAnnual revenue fromHNWChina visitorsFormal Dining 48.8bn 18.6bn 28.8bn 11.3bnCasual Dining 2.6bn 863.5m 412.9m 115.2mBars 8.7bn 2.9bn 1.4bn 388mTOTAL 60.1bn 22.3bn 34.3bn 11.8bnFigures are total global spend in US China’s population contributes 38% of the APACtotal on Formal Dining restaurants at 18.6bn, ofwhich a huge 61% ( 11.3bn) is spent by China’s HNWtravellers. Chinese travellers contribute a slightly lowerproportion to Casual Dining and Bars at 863.5 and 2.9bn respectively (both 33%). And for both, just 13%of this is spent by China’s HNWs.In collaboration with12
APAC and the GlobalTravel Recovery 2021CULTURAL ACTIVITIESAPAC travellers contribute just over onetenth (10.5%) of the global total spenton cultural activities from museumsand galleries to zoos, theme parks andhistorical landmarks. Many of theseactivities – particularly museums &galleries - are in Europe & North America,and so require long-haul trips out of theAPAC region. However, other categories– such as Amusement Parks – are actuallygrowing fastest in the APAC regionwith China now the largest theme parkmarket in the world, though this is mainlydomestic tourism spend. Outbound APACtourism yields a total of 1.95bn for theindustry.Type of activityAnnual revenue from allGlobal visitorsAnnual revenuefrom allAPAC visitorsAnnual revenue fromHNWGlobal visitorsAnnual revenue fromHNWAPAC visitorsMuseums &Galleries 3.4bn 344m 248.4m 55.5mHistoricalLandmarks 187m 19.7m 13.6m 3.2mZoos & WildlifeCentres 9.1bn 967.9m 690m 156mAmusementParks 18.4bn 1.95bn 1.3bn 314.7mTOTAL 31.1bn 3.28bn 2.3bn 529.4mFigures are total global spend in US HNW APAC travellers spend 529.4m on cultural activities when they travel internationally. This representsaround 23% of the total spend from HNW Global travellers and 16% of the total spent by APAC visitors.This is significantly higher than the contribution made by HNW Global travellers (7.3%) and illustrates thehunger amongst wealthy APAC travellers for cultural experiences in overseas locations.Type of activityAnnual revenue from allAPAC visitorsAnnual revenue from allChina visitorsAnnual revenuefrom HNWAPAC visitorsAnnual revenue fromHNWChina visitorsMuseums &Galleries 344m 116.4m 55.5m 16.4mHistoricalLandmarks 19.7m 6.7m 3.2m 1mZoos & WildlifeCentres 967.9m 325.6m 156m 44.5mAmusementParks 1.95bn 657.2m 314.7m 89.7mTOTAL 3.28bn 1.1bn 529.4m 151.6mFigures are total global spend in US China’s international travellers spend 1.1bn on cultural activities when abroad – 33.5% of the APACtotal spend. The majority is spent on zoos and wildlife centres & amusement parks. China’s HNWpopulation spends over 150m in total, around 29% of the APAC HNW spend.In collaboration with13
APAC and the GlobalTravel Recovery 2021WELLNESSWellness activities are a globalphenomenon and APAC travellersare keen participants in spending onthe various activities in this categoryfrom fitness classes to health andbeauty treatments. The APAC spendof 5.1bn is around 21.5% of theglobal total. APAC travellers spendover this average however in healthand beauty treatments, both eachcontributing around 29% of the totalglobal spend. Diet Managementspend (11.4%) and Fitness Classes& Yoga spend (12.7%) are relativelylower by comparison.Type of activityAnnual revenue from allGlobal visitorsAnnual revenuefrom allAPAC visitorsAnnual revenue fromHNWGlobal visitorsAnnual revenue fromHNWAPAC visitorsFitness Classes &Yoga 843m 107.4m 74.2m 17.4mHealth Treatments 1.3bn 382.6m 872.3m 225.7mBeauty Treatments 11.9bn 3.4bn 7.8bn 2bnDiet Management 8.7bn 1bn 767m 177.6mStress Relief &Meditation 1bn 137.2m 95.8m 22.2mTOTAL 23.7bn 5.1bn 9.6bn 2.4bnFigures are total global spend in US HNW APAC travellers spend 2.4bn on Wellness pursuits whilsttravelling – around 47% of the total spent by all APAC travellers.Their spend on beauty treatments of 2bn is 59% of the APAC total,a reflection of the huge trend in the APAC region for luxury beautyregimens for wealthy individuals, where growth in luxury beautyproducts is outpacing that in other wealth markets.Health treatments are also a huge trend for the region’s wealthy,with a total spend of 225.7m (59% of the APAC total) by theregion’s HNWs, a reflection of the truly global nature of thewealthy’s focus on looking after themselves. In collaboration with2BN14
APAC and the GlobalTravel Recovery 2021Type of activityAnnual revenue from allAPAC visitorsAnnual revenue fromallChina visitorsAnnual revenuefrom HNWAPAC visitorsAnnual revenue fromHNWChina visitorsFitness Classes & Yoga 107.4m 34.8m 17.4m 3.7mHealth Treatments 382.6m 132.6m 225.7m 75.2mBeauty Treatments 3.4bn 1.2bn 2bn 678mDiet Management 1bn 356m 177.6m 37.5mStress Relief &Meditation 137.2m 44.5m 22.2m 4.7mTOTAL 5.1bn 1.7bn 2.4bn 799mFigures are total global spend in US China international travellers spend approximately 1.7bn annually on wellness activities.This is 33% of the APAC total spend. China’s HNW Outbound spend is 47% of China’s totalspend and a third of the spend of HNW visitors from all of APAC.SPORTING EVENTSMany of the sporting events that attractluxury travellers are outside of the APACregion. For example, all of the top-flightsoccer matches, most of the tennisand golf tournaments and all of theAmerican sports matches are outsidethe region. Despite this, APAC travellersgo far and wide for these experiences.The total spend by APAC visitors isaround 610.4m – 13% of the globaltotal. However, spend by APAC travellerson attending top-flight golf and tennisevents around the world is particularlyhigh – 29% and 30% of the global totals,respectively. Formula One Grand Prixspend is also considerable, at 28% of theglobal total.Type of activityAnnual revenue from allGlobal visitorsAnnual revenuefrom allAPAC visitorsAnnual revenue fromHNWGlobal visitorsAnnual revenue fromHNWAPAC visitorsTop-flight soccermatches 2.4bn 274.3m 192.8m 44.1mAmerican sportsmatches 1.7bn 169m 135.6m 27.2mTop-flight tennistournaments 224m 66.3m 149m 39.1mTop-flight golftournaments 137.4m 39.8m 91m 23.4mFormula One GrandPrix 151.7m 43.6m 100m 25.7mTop-flight horseracing 64.1m 17.4m 42.4m 10.2mTOTAL 4.7bn 610.4m 710.8m 169.7mFigures are total global spend in US In collaboration with15
APAC and the GlobalTravel Recovery 2021Around 28% of the annual APAC spend onattending sporting events is contributed byHNW individuals, which amounts to 169.7m.This proportionate contribution is almostdouble the global HNW average of 15%,reflecting the fact that Sports are the numberone interest for HNW individuals based in theAPAC region. Travelling APAC HNWs contributewell over half of the APAC internationalattendance revenue (59%) at top-flight tennisand golf tournaments such as Wimbledon orthe Masters. HNWs also contribute the lion’sshare (58%) of APAC travellers’ spend at horseracing events around the world such as RoyalAscot as well as Formula One Grand Prix races.SPORTS ARE APAC’SNO.1INTERESTType of activityAnnual revenue from allAPAC visitorsAnnual revenue fromallChina visitorsAnnual revenuefrom HNWAPAC visitorsAnnual revenue fromHNWChina visitorsTop-flight soccermatches 274.3m 91m 44.1m 11.2mAmerican sportsmatches 169m 56m 27.2m 6.9mTop-flight tennistournaments 66.3m 24.6m 39.1m 14.6mTop-flight golftournaments 39.8m 14.7m 23.4m 8.7mFormula One GrandPrix 43.6m 15.8m 25.7m 9.2mTop-flight horseracing 17.4m 6.3m 10.2m 3.7mTOTAL 610.4m 208.4m 169.7m 54.3mFigures are total global spend in US China international travellers spend 208.4m on attending major sporting events aroundthe world, representing 34% of the APAC total. China’s HNW travellers represent around aquarter (26%) of the total China spend but 32% of the APAC HNW total.In collaboration with16
APAC and the GlobalTravel Recovery 2021PERFORMANCE ARTSAPAC Outbound travellers spend just under 1bn ( 976.2m) onperformance arts activities and events each year. This is 14.5%of the global total. Of particular interest to travellers from theregion are operatic performances (spend is 24% of the globaltotal) and Dance & Ballet (25%), reflecting the keen interest inclassical music amongst a number of APAC countries.1 BNType of activityAnnual revenue from allGlobal visitorsAnnual revenuefrom allAPAC visitorsAnnual revenue fromHNWGlobal visitorsAnnual revenue fromHNWAPAC visitorsTop 100 live musictours 1.8bn 196m 155.5m 31.4mMusicals 732.7m 78.8m 62.5m 12.6mTheatre 173.3m 18.6m 14.8m 3mComedy 243.7m 26.2m 20.8m 4.2mMagic 60.9m 6.5m 5.1m 1mDance & Ballet 304.6m 77.2m 201.5m 45.1mOpera 1.5bn 363.9m 843.9m 212.9mNightclubs 1.9bn 208.9m 165.8m 33.5mTOTAL 6.7bn 976.2m 1.4bn 343.8mFigures are total global spend in US APAC’s HNW individuals contribute 343.8m (35%) of the spend of APAC internationaltravellers towards attending performance arts events. Their contribution to the spend onopera and dance and ballet is well over half that of the APAC total (58% each). There iscomparatively lower spend in activities such as Comedy and Magic (16% of the total APACspend).In collaboration with17
APAC and the GlobalTravel Recovery 2021Type of activityAnnual revenue from allAPAC visitorsAnnual revenue fromallChina visitorsAnnual revenuefrom HNWAPAC visitorsAnnual revenue fromHNWChina visitorsTop 100 live musictours 196m 65.3m 31.4m 8.3mMusicals 78.8m 26.2m 12.6m 3.3mTheatre 18.6m 6.2m 3m 0.8mComedy 26.2m 8.7m 4.2m 1.1mMagic 6.5m 2.2m 1m 0.3mDance & Ballet 77.2m 28.6m 45.1m 16.8mOpera 363.9m 134.7m 212.9m 79.4mNightclubs 208.9m 69.6m 33.5m 8.8mTOTAL 976.2m 341.5m 343.8m 118.9mFigures are total global spend in US China’s outbound travellers spend 341.5m (35%) of the global total, with Opera and Dance& Ballet registering a higher contribution of 37% each. China’s wealthy HNW travellerscontribute around 35% of both China’s total and APAC’s HNW total.My team and i have helped each other throughthe low and tough moments which has madeus stronger and even more determined to pushforward. Most of our clients have asked us to rearrange their existing trips which has proven to beinvaluable for them as well as us, and I’m happy tosay that we are now moving forward in a positiveway. They may be ‘baby steps’ forward but they arein the right direction!Kathryn Davies, Hong KongIn collaboration with18
APAC and the GlobalTravel Recovery 2021OUTDOOR PURSUITSincluding water sports, winter sports, tours, boating, shooting & fishing, climbing, etc.APAC travellers contribute around 10% ( 1.9bn) of the globalspend on the huge variety of outdoor pursuits in the world. This isa relatively modest contribution given the size of the population ofthe region, but is a reflection of the diversity of interest that existsin global travellers, and a reflection of the fact that many of theseare a product of traditions originating in old wealth markets such asEurope and North America.Type of activityAnnual revenue from allGlobal visitorsAnnual revenuefrom allAPAC visitorsAnnual revenue fromHNWGlobal visitorsAnnual revenue fromHNWAPAC visitorsAll outdoor pursuits 18.9bn 1.9bn 2.2bn 306mFigures are total global spend in US APAC’s wealthy population of HNWs spend around 306m on outdoor pursuits when travelling, around14% of the global HNW total and 16% of the APAC total. The wealthy’s greater interaction with manyof these activities on their extensive travels for business and leisure and amongst their internationalnetwork are some of the reasons for their greater contribution.Type of activityAnnual revenue from allAPAC visitorsAnnual revenue fromallChina visitorsAnnual revenuefrom HNWAPAC visitorsAnnual revenue fromHNWChina visitorsAll outdoor pursuits 1.9bn 647.6m 306m 87.4mFigures are total global spend in US China’s international travellers spend 647.6m, around 34% of the APAC total, on outdoorpursuits. The HNW population contribute just 13% of their country’s spend, but 28.5% of theHNW APAC spend.In collaboration with19
APAC and the GlobalTravel Recovery 2021PASSIONS OFAPAC’SWEALTHYTHE HIGH NET WORTH APAC LUXURY TRAVELLERThe 6.4m strong HNW populationof Asia Pacific share many passionswith HNWs from other regions butthe number one shared passion ofall the wealthy from this regionis sport. The spectating of - andtaking part in - sports all aroundthe world is the single greatestinterest for APAC’s HNWs. Alongwith keen interests in football,golf and tennis – shared withthe wealthy from other regions –other sports such as badminton,basketball and table tennis alsorank highly.Art ranks higher for APAC’s HNWindividuals than it does in anyother region, but this love of artis not just about the explosivegrowth in the fine art marketin the Asia region over the lastdecade. Art appreciation is rising,which brings with it interest inpursuing opportunities when andwhere they arise, particularlywhen travelling. Art is a broadchurch, from ancient culturalassets to performance, and ahigh appreciation means a highdemand.Travel itself is a top 5 interest forthe HNWs of the region, rankingabove philanthropy, real estate andpolitics. Whilst APAC more broadlyis commonly associated in luxurywith the acquisition of goods, itsHNW population’s keen interestin travel indicates an experientialleaning. And a relatively strongpassion for travel shows just howimportant this fast-gr
Travel Recovery 2021 In collaboration with 4 THE FACTS The majority of the human inhabitants of the world live in the Asia Pacific (APAC) region. Of an estimated global population of 7.5bn, 4.3bn (60%) live in the 55 countries scattered around the Western Pacific Ocean. APAC's population of HNW individuals may represent just 0.15%
