The global tourism market is experiencing a slowdown, particularly in major markets like China and the United States.
The IMF has projected that with the cooling of the U.S. labor market, slowing consumption, and the gradual tightening of fiscal policy, U.S. economic growth will further slow to 1.9% in 2025.
Research from Northeast Securities shows that since April of last year, the occupancy rate in the U.S. hotel industry has seen a slight year-on-year decline and remains approximately 5% below the levels seen during the same period in 2019, indicating ongoing downward pressure.
China appears to be facing similar challenges. In Q2, RevPAR (Revenue per Available Room) for Marriott and IHG in the Greater China region declined by 4% and 7%, respectively, while Wyndham saw a more significant drop of 17%.
Marriott's CFO Leeny Oberg indicated during the company’s earnings call that weak demand and pricing trends in the Greater China region are expected to persist, with the third quarter potentially seeing the most significant RevPAR decline.
In contrast to the cooling of traditional tourism giants like China and the U.S., another country is quietly rising as a new powerhouse this year: India.
The latest report from McKinsey, titled "The State of Tourism and Hospitality 2024," notes that India is now the world's sixth-largest domestic travel market by spending. With the continuous growth of India's middle class, travel spending is expected to increase at an annual rate of approximately 9%. By 2030, India is projected to surpass Japan and Mexico, becoming the world's fourth-largest travel market.
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