Asia leads trending summer destinationsMastercard Economics Institute (MEI) reports that eight of the 15 trending summer travel destinations are within the Asia-Pacific.
MEI released its annual report on consumer spending in the travel economy which listed the top 15 destinations that travellers are opting for in the upcoming season.
The report highlighted that passions and purpose-driven motivations remain strong drivers shaping the travel industry, even more so than political or socio-economic issues.
Drawing on a unique analysis of aggregated and anonymised transaction data and third-party data sources, the report uncovers what is shaping travel choices today.
Mastercard’s chief economist in the Asia-Pacific David Mann remarked: "The Asia-Pacific region continues to set the pace for global travel, with buzzing destinations like Tokyo, Shanghai, Seoul, and Singapore capturing the imagination of travelers around the world. Even as economic uncertainty persists, travel remains a bright spot driven by people seeking meaningful, value-driven experiences. From exchange rates to regional accessibility, travelers are making smarter, more intentional choices about where they go and why, with a clear shift toward more personal, purposeful journeys."
Why Asia is the place to be
Tokyo and Osaka are the world's #1 and #2 top trending destinations for the period between June and September of this year, marking the two largest increases in tourism demand relative to previous levels.
Last year, the Japanese capital rose from the number two spot that it held in 2023 to lead global travel demand heading into the peak summer season, reflecting its continued appeal.
Meanwhile, Nha Trang in Vietnam made a surprise entry into the list, climbing in popularity thanks to its beautiful beaches, enviable coastline and vibrant nightlife.
At the same time, Mainland China retained its position as the world's largest outbound travel market in 2024.
Chinese travelers are increasingly prioritising value and visa-friendly destinations including Japan, Malaysia, and Singapore.
Interest in Central Asian destinations such as Kazakhstan, Uzbekistan, and Kyrgyzstan is also increasing.
India again posted the country's highest number of outbound travelers on record in 2024. Indian tourists are exploring a broad mix of destinations, the top three being Abu Dhabi, Hanoi, and Bali.
Growth in this particular market is supported by expanded direct flight connections and a rapidly growing middle class that is eager to travel.
Together, the Chinese and Indian markets continue to play an outsized role in shaping global travel flows.
Quality of experiences trumps quantity of destinations
Across the Asia-Pacific, travellers are prioritising dining, nature, and wellness as key motivators for travel, seeking meaningful moments over traditional sightseeing.
Destinations like Gianyar in Bali, Indonesia, known for its iconic babi guling [spit-roasted pork,] and Queenstown in New Zealand whose restaurants welcomed tourists from 44 countries in 2024 are standing out as globalized culinary hotspots.
According to MEI's Wellness Trend Index (WTI), Thailand is among the destinations leading the way in relaxation experiences and self-care, where visitors can reconnect with nature in immersive eco lodges or find calm in meditation retreats.
At the same time, the rising WTI score for New Zealand suggests a growing effort to be part of this popular movement.
Overall, the trend toward purpose-driven travel reflects people's broader desire for experiences that nourish both body and spirit.
The rise of sports tourism continues, with major events like the Australian Open tennis tournament and Baseball World Series in Los Angeles drawing significant international spending.
Shohei Ohtani's World Series debut saw spending by Japanese visitors surge by 91 percent, six times the broader cross-border boost, highlighting how sporting events are proving to be powerful travel catalysts for fans.
Keeping an eye on exchange rates
Travelers from the Asia-Pacific tend to be more sensitive to exchange rate shifts.
A weaker yen throughout much of 2024 played a significant role in boosting Japan's inbound tourism, making the country a compelling destination for visitors in search of value.
Notably, a one percent depreciation of the JPY against the RMB is associated with a 1.5 percent increase in tourists from the Chinese Mainland.
However, visitors from New Zealand and the US rose only around 0.2 percent in response to the same degree of depreciation relative to their currencies.
In 2024, the number of Singaporean visitors to Japan hit record highs thanks to a 40 percent rise in the Singapore Dollar (SGD) vs. Japanese Yen (JPY), even as airfare and hotels got pricier.
Turning to the US, MEI's analysis shows that tourists from India, Singapore, South Korea, and Taiwan are particularly sensitive to exchange rate fluctuations, after accounting for other factors.
Specifically, a one percent depreciation of the United States Dollar (USD) against their local currencies corresponds to an approximate 0.6 to 0.8 percent increase in the number of tourists traveling to the U.S.
These findings, consistent with our earlier analysis of tourism to Japan, suggest that these travelers are more responsive to exchange rate movements when selecting outbound destinations.
Current trends in business travel
Corporates today are limiting global travel in favor of regional trips.
But while people are taking fewer business trips overall, the average duration is longer, suggesting efforts to stretch travel budgets.
For example, US-based travellers' trips to Asia-Pacific increased from 8.8 days to 10.2 days.
Meanwhile, MEI also reported that fraud in popular tourist destinations spikes up to 28 percent during peak seasons.
Common scams include inflated charges in restaurants and taxis, fake tour companies, and fraudulent property listings.
To combat these, Mastercard employs advanced fraud prevention technologies, including digital wallets and AI-driven systems, to protect travelers.
This ensures that travelers can focus on their journeys without worrying about security threats.
