It’s no secret that South-east Asia is an already significant and growing travel market, but according to TTG Asia, Boeing is projecting it will require 4,210 new planes in the region over the next two decades, just to keep up with the demand. To put things in perspective, the region has an annual traffic growth of 6.2 percent – compared to the global average of 1.5 percent. To accommodate the influx, Boeing is turning its attention towards popular low-cost carriers - including Indonesia’s Lion Air, Vietnam’s Vietjet, and Malaysia’s AirAsia Bhd.
The 4,210 new aircrafts that Boeing plans to inject into the market are valued at $650 billion - with single-aisle planes, like the 737 MAX family, accounting for more than 70 percent of the new arrivals. The biggest concern and potential pitfall to the extremely optimistic forecasts is the region’s airport infrastructure. Airlines continue to add planes, even as airports struggle to accommodate.
Boeing’s Vice President for Asia-Pacific and India Sales, Dinesh Keskar, doesn’t seem overly worried, however. “Look at countries like Vietnam, Thailand and Indonesia - that infrastructure has to grow and will grow. Aviation is the biggest source of tourism for the countries, it is the biggest source of moving people and moving cargo.”
As travelers continue to flood into South-east Asia, expect airliners, aircraft manufacturers, airports, and hotels to all step their game up.
Here’s some more travel news you can use:
- Cruise companies and the Caribbean island countries have long had a symbiotic relationship. The islands provide beautiful landscape, sought after weather, and friendly hospitality, while cruise businesses ensure a steady flow of travelers – injecting much-needed money into the local economies.
And, apparently Royal Caribbean has taken notice of the tough times that have befallen these countries. According to Travel Agent Cental, Royal Caribbean has canceled its Sept. 30 Adventure of the Seas voyage from San Juan, and will instead use the ship to evacuate people from Puerto Rico and deliver supplies to the hurricane-ravaged islands.
- As one devastating natural disaster dissipates, it appears another is on the horizon. According to the Associated Press and CBS News, upwards of 100,000 people have fled Bali as tremors from Mount Agung volcano intensify. The volcano last erupted in 1963, killing more than 1,100 people.
While the well-being of human life is everyone’s utmost concern, there is also worry that the fear of an eruption could seriously hamstring the countries economy. Travel and tourism accounts for about 10 percent of Indonesia’s gross national product, and Bali is its most popular destination.
The world and travel industry will be hoping for the best in Bali over the next several weeks.
- Travel Weekly is reporting that Starwood Capital Group is investing $250 million into Yotel, a hotel company known for its mini-suites and high-tech guest experience. Starwood Capital, a private investment firm, will acquire a 30% stake of Yotel and help Yotel expand internationally.
Currently, Yotel operates four airport hotels (under its YotelAir brand) in Europe, and two city hotels in New York and Boston.