Travel trends in the Asia-Pacific region are shifting towards secondary cities as travelers prioritize domestic trips amid geopolitical tensions and rising costs. According to Allianz Partners’ Global Travel Confidence Index, nearly half of global travelers are scaling back their plans, with a significant number from China and India opting for local destinations. This shift is benefiting Tier 2 and Tier 3 cities like Goa and Xiamen, which are gaining popularity among local travelers, while cities in Vietnam are also seeing increased interest from Chinese tourists.
The rising demand for these secondary markets is driving revenue growth in the hospitality sector, outpacing traditional gateway cities. As travelers adjust their plans, revenue per available room in these areas is increasing, attracting investor attention. JLL reports that cities like Fukuoka and Sapporo are becoming appealing to investors seeking better returns, especially as prime assets in major markets become scarce.
For market professionals, the key takeaway is the emerging investment opportunities in secondary cities driven by domestic travel trends. Investors should consider these markets for potential growth as demand continues to rise, offering a first-mover advantage in less saturated areas.
Source: cnbc.com