Oil prices pose real challenge for Asia - PATA (lead – pic)
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Asia’s tourism industry is facing serious challenges due to a combination of US currency depreciation, rising local costs and new fuel surcharges, according to a report by the Pacific Asia Travel Association (PATA).
PATA’s recently released Asia Pacific Tourism Forecasts, however, suggest core fundamentals remain generally positive, with growth in international arrivals into Asia Pacific forecast at 7-8% between 2008 and 2010.
Since 2005, the US dollar has depreciated by 14-21% against six major Asia Pacific currencies, making some parts of Asia too expensive for US travellers. At the same time, inflation across the region has pushed costs skywards, and oil prices have hit record levels, impacting air fares.
“Operators who quote in US dollars have been playing a desperate catch-up game, continually increasing rates as the dollar has fallen,” said PATA’s Director of Strategic Intelligence John Koldowski. “But at the same time they have been hit with the double whammy of increased local operating costs.”
Despite these issues, PATA’s latest forecasts predict positive growth for the region, with China and South Korea set to generate strong outbound growth to Asian destinations. “The medium-term outlook for most Asian economies is still strong with growth rates well above world averages – at least for the moment,” he adds.
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