Regional economic growth boosts travel industry<\/p>\n
SINGAPORE (JP): The Asia-Pacific region's strong economic
\ngrowth is bound to result in increased demand for both business
\nand leisure travel, both inside and outside the region, an
\neconomist predicts.<\/p>\n
Tapan Datta, an executive of the American Express Bank,
\ndescribes travel as a \"classic income-elastic\" service: The
\nfaster the income of a country grows, the greater proportion of
\nspending is used on travel.<\/p>\n
Datta told The Jakarta Post yesterday that when per-capita
\nincome reached a range of US$1,500-$2,000, people began spending
\nmoney on commodities and services not tied directly to their
\nbasic needs, such as leisure travel.<\/p>\n
\"Up to then, the tendency is to spend money on operating
\nyour basic lifestyle: shelter, medical treatment and other
\nessentials of life,\" he said.<\/p>\n
Speaking on the second day of a media conference on Asian
\nbusiness travel trends, Datta said that the trend in business
\ntravel, more than leisure travel, depends on the rate of growth
\nof a country's economy.<\/p>\n
\"Faster growth equates to stronger corporate activity and
\ncorporate activity is all about business travel,\" he said.<\/p>\n
The World Travel and Tourism Council predicts that world
\ntravel and tourism will double by the year 2005.<\/p>\n
According to data from American Express' Travel Management
\nServices, the Asia-Pacific region currently accounts for between
\n20 percent and 25 percent, or between $80 billion and $100
\nbillion, of the world's total business travel spending.<\/p>\n
Infrastructure<\/p>\n
Datta said governments in the region should not overlook the
\nneed to improve infrastructure in their respective countries,
\nsince these are an important part of the business travel
\nindustry, as well as affecting overall economic growth.<\/p>\n
Easing visa procedures, shortening processing time at
\nairports and improving transportation systems and hotel quality
\nand prices were among the things that should be done to attract
\nand keep business travelers to a country, he said.<\/p>\n
\"The traffic congestion in Jakarta matters a lot to business
\ntravelers,\" said Datta, who visits the city three to four times a
\nyear.<\/p>\n
\"If those aspects of infrastructure could be eased, you
\nwould find the country's growth even faster, as businessmen would
\nbe more willing to come,\" he added.<\/p>\n
Datta predicted that the region's rapid economic growth and
\nthe high level of trade within Asia will be reflected in an
\nincrease in intra-Asian travel.<\/p>\n
He said easier exchange control regimes and the level of
\nexchange rates would also be factors enabling travel and
\naffecting the distribution of travel demand. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/regional-economic-growth-boosts-travel-industry-1447893297",
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