economy
The Iran War is Providing an Unexpected Boost to Secondary City Travel in Asia-Pacific
Trips to smaller "secondary cities" in Asia-Pacific are getting an added boost this summer, as the Iran war is spurring travelers to plan trips closer to home.
TL;DR
- Travelers are opting for secondary cities in Asia-Pacific due to geopolitical tensions and rising costs.
- Domestic and intra-regional travel is increasing, with China and India showing high domestic travel intentions.
- Tier 2 and Tier 3 destinations like Goa, Xiamen, and Phu Quoc are gaining popularity.
- China's outbound travel is shifting towards Southeast Asia, including Vietnam, Malaysia, and Thailand.
- Secondary cities in Japan, such as Takamatsu, Matsuyama, and Sendai, are experiencing significant booking growth.
- The increased demand in secondary markets is leading to higher revenue per available room and attracting investor interest.
- Investor focus is shifting to secondary cities in Japan and India due to limited prime assets in major cities.
- Rising domestic travel, religious/cultural tourism, and infrastructure development are key drivers for secondary city growth.