An Independent Fortnightly Report on Asian Business and Politics
POLITICAL & ECONOMIC RISK CONSULTANCY LTD.
Asia’s Growth Prospects Are
Superior to Europe and the US
Wednesday January 30, 2008
Drivers for Asia’s travel and tourism industry
The on-going turmoil in global stock markets is one example of how the world
is increasingly inter-connected and how, far from “decoupling” from the US, Asian
economies are still joined at the hip with the US economy. Another example of
increasing global interconnection is in the movement of people, exemplified by
statistics from the travel and tourism industry. Unlike the region’s banks and stock
brokers, however, Asia’s hotel, airline, gaming and other travel and entertainment
industries do not necessarily face a grim year in 2008. To the contrary, profits should
hold up quite well and growth will probably again be good. To be sure, the regional
travel and tourism industry faces big changes. But most of those changes will be a
continuation of trends that have been evident for the past few years. Recent stock and
financial market developments are likely to further accentuate those trends.
forces affecting the travel
slumping US economy and
liquidity crunch and other
weakness of the US dollar;
and high world oil prices.
However, precisely because
of these problems, Asia will
look more attractive to
Political & Economic Risk Consultancy, Ltd.
January 30, 2008
international hotel companies, airlines and firms
supporting these industries. First, Asia is where
the best growth will be in terms of tourist arrivals.
The Middle East will also be growing rapidly, but
the magnitude of business in Asia greatly surpasses
anything the Middle East has to offer.
Unlike in the US and Europe, where hotel