TRAVEL business leaders have warned that the economic woes of the US and Europe could exert a downward pressure on Asia’s industry performance, with some saying the next few months are crucial in determining whether there will be growth.
Speaking to the Daily, World Travel & Tourism Council (WTTC) president & CEO David Scowsill said: “We’re in a very delicate phase at the moment. Asia is still steaming away in general terms, but there are real wobbles in Europe and America. Everybody is concerned about the potential of going into a double-dip recession.”
He added that with the volatility of oil prices and new taxation on the horizon in the form of the European Union (EU) Emissions Trading System, affecting flights to and from the EU, network airlines would have no choice but to pass on the increase in costs to consumers, due to razor-thin profit margins. This could further depress demand from longhaul markets, he said.
Scowsill said: “At this point, nobody knows what 2012 is going to bring.”
“When I talk to business leaders running hotels, airlines and car rental businesses…Most of them have two different budgets for 2012 – one is kind of low growth to no growth and one is a lot more optimistic.”
Bright spots in Asia are also giving hope to leaders in the region. Azran Osman-Rani, CEO, AirAsiaX said while Europeans had become concerned about longhaul travel, other Asia-Pacific markets were still holding up.
Similarly, William Heinecke, chairman and CEO of Minor International, said: “The slowdown in US and Europe has been compensated by emerging markets like China and India. We’re in a very strange recessionary period because a lot of markets still have cash.”
– Read more in ITB Asia 2011 Official Daily – Day 2 issue
