Bangkok--Feb 1--Aziam Burson Marsteller
Spending up 16 percent in tsunami-affected countries compared to the year before
Spending in tsunami-affected countries by international Visa cardholders increased 16 percent over the first four weeks following 26 December compared with the same period last year, indicating that visitors to India, Indonesia, Malaysia, Maldives, Sri Lanka and Thailand are continuing to travel to these countries, although the growth in spending is less than in neighboring counties that were unaffected.
Visa released this latest data in the Visa Tourism Update bulletin, issued to monitor the immediate economic impact of the tsunami disaster on affected countries from a tourism perspective, focusing on the crucial area of spending by international visitors.
According to Visa Asia Pacific Executive Vice President, Southeast Asia James Murray, “Overall spending by business and leisure visitors is up in these countries as a whole, but as we work with others to restore economic activity, it is necessary to look at the detailed impacts on individual economies as these vary considerably.”
He added that the continuing growth in spending can be attributed to several factors, “Wherever the tsunami struck its effects were devastating to both human life and infrastructure. However, only specific locations were impacted, leaving many other key tourist destinations unaffected and operational. Furthermore, many of the affected areas, particularly those that rely on tourism, have mobilized much of the relief efforts that have come in and are restoring infrastructures vital to daily life.”
Murray made these comments at this week’s World Tourism Organization
(WTO) Emergency Task Force meeting in Phuket on tourism recovery in the markets affected by the 26 December 2004 tsunami.
“In 2004, international Visa cardholders traveling in Asia spent
US$19.7 billion. As Asia’s payment leader with almost two out of every three dollars spent on cards being on a Visa card, we are uniquely well positioned to monitor the economic impact of the tsunami on consumer spending,” he added.
Will tourism recover as quickly as from earlier shocks? “The tsunami was unparalleled in its ferocity and human impact, but sadly, it is not the only disaster to have impacted the Asian tourism industry in recent years. The 9/11 and Bali terrorist attacks and the SARS outbreak all triggered sudden shocks to consumer confidence causing visitors to cancel their planned travel.
However, in each case, we saw Asia recover quickly as a travel destination and the early signs are once again encouraging,” said Murray.
In early 2003, the emergence of SARS in Asia caused an immediate and
severe drop in international travel right across the region but visitors returned quickly in the following months as consumer confidence recovered and business and holiday travel picked up.
Despite an initial drop in international cardholder spending in Asia in the quarter following the SARS outbreak, international card spending in Asia was up nearly eight percent for full year 2003 compared with 2002.
He added, “According to the latest figures from the WTO, more than
150 million visitors traveled in and around Asia in 2004. While the tsunami will have a short term impact on visitor numbers to those areas where it struck, based on current cardholder spending trends and past experience, tourism in Asia as a whole will remain vibrant.”
Sharing information with the industry While international visitor spend is showing signs of resilience in India, Indonesia, Malaysia and Thailand, Sri Lanka and the Maldives have been slower to recover, reflecting the relative importance of tourism to their economies compared to the other markets and the scale of the impact on their tourist destinations. Visa international cardholder spend in Sri Lanka and the Maldives during the first four weeks after the tsunami was 19 and 42 percent below 2004 respectively.
In addition, Murray said that Visa would continue to issue the Visa Tourism Update to track tourist spending in affected markets during the coming months and share research with the industry on the attitudes of potential tourists in the vital long-haul source markets of North America and Europe as well as key visitor sources in Asia. “Visa is helping the disaster-struck economies find their place again in the tourism industry. The data we are providing to the tourism industry can be used by merchants, national tourism
organizations and policy makers to determine the goods, incentives and services they can offer, the markets they should target and how they might better insulate their businesses from relying too much on one source of revenue.”
Helping bring tourists back Murray added that Visa has long-standing links with tourism authorities and private sector operators throughout the region and is working with organizations such as the WTO to help markets recover as quickly as possible. Visa teamed up with the WTO as the
event sponsor of the Organization’s Emergency Task Force meeting held in Phuket this week.
“Everyone connected to the tourism industry — including small
businesses, airlines, national and global tourism organizations, travel agents and hoteliers — is recognizing the need to work together to ensure the economies where the tsunami hit return to normal. In the months ahead, Visa will work with its member institutions, merchant partners and with national tourism organizations to create and promote compelling incentives for its cardholders to visit the key markets,” Murray said.
“This tragedy has struck some of the world’s warmest hosts and greatest tourist destinations very hard. No one will ever forget 26 December, but we owe it to these communities to help bring back some smiles to the local people and the visitors that they will surely welcome again in great numbers”, he added.
More about Visa’s efforts Since 26 December, Visa has undertaken a series of initiatives in addition to working with tourism authorities, member banks and merchants to progress post-tsunami economic recovery.
In common with many other concerned businesses, Visa and its staff responded immediately to the initial appeal for funds to disaster relief. Visa International, including the Asia Pacific region, committed US$1 million to support the International Red Cross’ earthquake and tsunami relief efforts. In addition, Visa Asia Pacific is matching dollar for dollar donations made by its employees to the International Red Cross through February.
Visa Asia Pacific also announced that it is waiving its fees to six
international charities and their local offices for tsunami relief donations made by cardholders using their Visa cards. Visa is waiving domestic and intra-regional interchange reimbursement fees for tsunami disaster relief efforts by the International Red Cross, Mdecins Sans Frontires, CARE, Oxfam, UNICEF and Save the Children through 15 February.
Visa International
Visa is the world's leading payment brand generating more than US$3 trillion in annual card sales volume. Visa has unsurpassed acceptance in more than 150 countries. The Visa organization plays a pivotal role in developing innovative payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce--the ability to conduct commerce anywhere, anytime, and any way. For more
information, visit www.corporate.visa.com.
Visa in Asia Pacific
In Asia Pacific, Visa has a greater market share than all other
payment card brands combined with 62 percent of all card purchases at the point of sale being made using Visa cards. There are currently more than 229 million Visa-branded cards in the region.
Through September 2004, US$339 billion was spent at point of sale or
withdrawn from ATMs in Asia Pacific using Visa cards. Visa Asia Pacific’s Internet address is www.visa-asia.com.
For further information contact
Edna Lam
Director Corporate Communications Southeast Asia
Visa International Asia Pacific
65-6437 5607, [email protected]
James Best
Aziam Burson Marsteller
02-252-9871
[email protected] End.