Tourism And The South East Asian Market Tourism Essay

Australia is a major tourer attractive force for people going from South-East Asia and from Europe, with legion air hoses functioning assorted sectors of rider ‘s journeys. Many flights from the Asiatic part are linking flights for tourers and serve as way station states. Major airdromes in this part include Singapore Changi, Bangkok and Kuala Lumpur international airdromes.

South-East Asia is defined by the Britannica Encyclopodia as “ taken to include

Burma, Thailand, Cambodia, Laos, Vietnam, Malaysia, Singapore, Indonesia, Brunei and the Philippines. ” This sector of the universe contributed 38.3 % of entire international rider seats available to Australia in 2009 and 37.6 % in 2008. This is a really little addition and suggests that growing is staying steady in this part. In a comparing of the old ages from 2007 through to 2009, the South-East part about contributed 38 % per annum, with no pronounced diminution.

During 2009, a sum of 44 416 scheduled flight motions occurred between South-East Asia and Australia. This accounted for 9.5 million riders, with 12.7 million entire seats available. Inbound air traffic accounted for 22 241 of these scheduled flights and 6.3 million seats available. ( Bureau of Infrastructure, Transport and Regional Economics [ BITRE ] , 2010 ) .

Traffic from Europe is wholly carried out by full-service bearers, at least between Europe and the several stopover state. The United Arab Emirates or Asiatic states serve as these way station states, with the Arab Emirates to a great extent utilised by foreign air hoses. Merely about 10 % of traffic into Australia really originates in the gulf, much of this comes from Europe ( Tourism Australia, 2010 ) .

Arrivals have increased from France and Germany late, with a diminution in those from the United Kingdom. This is mostly due to the positive impacts of a code-sharing understanding between Qantas and Air France, with diminutions in fuel monetary values driving monetary values down for German tourers. The United Kingdom ‘s lessening in rider Numberss can be attributed to economic downswing in February 2010, together with ash clouds in April and a weak English lb. However, the London-Singapore-Sydney is the busiest path with merely under half of all direct flights from UK to Australia operated on this path ( Tourism Australia, 2010 ) .

South-East Asiatic Market

The South-East Asiatic part is serviced by several full-service bearers including Emirates, Malaysia Airlines, Qantas Airways, Singapore Airlines, Thai Airways, Garuda Indonesia and Vietnam Airlines. Low-cost bearers have besides emerged with AirAsia X, Jetstar and Pacific Blue, lending together approximately 20 % of the entire air hose rider Numberss carried into Australia in 2009.

This addition is besides reflected overall by the per centum of international riders carried into Australia, with Jetstar responsible for 7.8 % of all international rider traffic in 2009. For a clearer comparing, each of these low-priced bearers entirely accounted for more South-East Asiatic inbound riders in 2009 than a full-service bearer such as Emirates did, as indicated in the tabular array below.

Singapore is a major subscriber of inward air traffic to Australia. From the January to May period of 2010, a 3 % addition in rider reaching Numberss occurred compared to the same period in 2009. Over half of these reachings are from the leisure travel sector. ( Tourism Australia, 2010 ) . As this sector is more wary of monetary values and the demand snap is greater, it is likely that the lessening in monetary values for travel after February attracted more clients during this clip.

Indeed in February, a pronounced lessening in international travel occurred due to economic instability in universe markets and the planetary fiscal crisis. This in bend turned air travel ticket monetary values down and attracted more leisure travelers. However, this would hold a lagged consequence in footings of rider Numberss going, as air hoses had to set to the state of affairs foremost. An addition in rider Numberss occurred between February and March 2010, as can be seen in this graph from the Bureau of Infrastructure, Transport and Regional Economics ( BITRE, 2010 ) .

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Other states which attracted much of the rider traffic in South-East Asia in 2009 include Malaysia and Thailand, together with Indonesia. Indonesian reachings are still lending greatly to go Numberss during the first five months in 2010, seeing a 24 % addition on the figure of 2009 ( Tourism Australia, 2010 ) . Association of South-East Asiatic Nations ( ASEAN ) statistics besides show that international tourer reachings to Indonesia from outside of South-East Asia have been increasing between 2008 and 2009 ( ASEAN, 2010 ) .

This indicates that the market to this state may be spread outing and in November of 2008 the low-cost bearer Pacific Blue commenced services to this state. It is viing straight with Jetstar which has been functioning this market since 2006. To exemplify the demand for low-priced services for such a path, Jetstar had 15 412 riders and Pacific Blue 14 205 riders in May of 2010. Qantas, nevertheless, merely recorded 2 974 inbound riders in May 2010.

The following tabular array summarizes the rider Numberss for the air hoses named above for 2009.


Number of Passengers into Australia from South-East Asia 2009

AirAsia Ten

256 287


80 320

Garuda Indonesia

232 836


417 211

Malaysia Airlines

433 571

Pacific Blue

134 340

Qantas Air passages

599 699

Singapore Airlines

1 221 687

Thai Airways International

491 618

Vietnam Airlines

97 462

Compiled from informations in International Airline Activity 2009, Statistical Report, ( BITRE 2010 )

As can be seen, Emirates clearly had the lowest figure of riders which were taken to Australia from South-East Asia during 2009. Emirates focuses on services between Europe and Australia through the Middle-East instead than in the South-East Asiatic part, explicating this observation. Recently, Emirates has extended European paths to include Amsterdam and Madrid.

A sum of 12.3 million international inbound riders were recorded in 2009. From the tabular array it can be calculated that from these ten air hoses entirely, the figure of riders inbound from the South-East Asiatic part history for approximately 32 % of all inbound traffic motions in Australia. This indicates that the 10 air hoses above in fact have most of the traffic portion between the South-East Asian and Australian flight sectors.

Overall Singapore Airlines carried the most traffic into Australia, Qantas following with about half that capacity. This figure for Singapore air hoses is strictly that between Singapore and Australia. As can be seen, Singapore airlines has a strong laterality over this path, with over half the portion of riders. Singapore air hoses has recovered in the old three months, with a net income of $ 252.5 million Singaporean recorded between April-June 2010. Outgo for the whole twelvemonth 2010 was reduced compared to 2009. Fuel costs reduced by around

$ 2 billion and aircraft care was besides a major portion of this outgo lessening. However, gross besides decreased significantly from the old twelvemonth, by around $ 3 billion Singaporean. However, Singapore Cargo ( SIA ) recorded an $ 8 million net income compared to big losingss in 2009 during April-June. Gross decreased overall in 2010 for both East Asia and Europe for Singapore Airlines, features of cheaper airfares and economic downswing.

Overall in 2009 there were more short-run occupants going Australia ( 6.3 million ) than short-run reachings to Australia ( 5.6 million ) ( ABS, 2010 ) . However, these figures include all states and continents and hence are non applicable to South-East Asiatic rider motions entirely. Besides, this included other signifiers of conveyance than air traffic and multiple motions by individual persons besides influence this information. Nevertheless, Singapore and Malaysia were included in the top 10 list of international short-run reachings and short-run occupant goings, with Thailand listed in the top 10 list of short-run occupant departures merely.

In footings of air traffic out of Australia, the air hoses aforementioned besides rule services out of Australia. For the month of May 2010, the rider Numberss for five of the air hoses discussed earlier is represented below. This refers to flights between Australia and another state, either being the beginning or finish.



Passengers Into Australia

Passengers Out of Australia


Dutch east indies




15 412

10 907

5 560

2 108

17 080

11 290

5 236

2 083

Malaysia Airlines


31 832

40 369

Qantas Air passages

Dutch east indies



2 974

3 498

32 616

3 141

3 495

37 510

Singapore Airlines


76 934

92 349

Thai Airways International


24 486

29 184

Compiled from Airline By Country of Port Data, International Airline Activity-Time Series, ( BITRE 2010 )

It can be seen that there are significantly more riders traveling out from Australia into the South-East Asiatic parts for most air hoses. On a planetary graduated table, short-run Australian goings have been increasing since 2006 till the present. In 2007, short-run visitants became less than Australian resident short-run goings, on a planetary graduated table ( Australian Bureau of Statistics [ ABS ] , 2010 ) . The major grounds for goings in May 2010 were vacations ( 54 % ) , sing friends and relations ( 23 % ) and concern ( 13 % ) ( ABS, 2010 ) . This indicates that the leisure market is still rather strong in this country of the universe.

European Market

In the European sector there were 2 882 scheduled international flights inbound for Australia ( BITRE, 2010 ) . Part of these operations feed into the South-East Asiatic flight operations, as these act as theodolite flights for riders. Hence traffic inbound to Australia from Europe must go via Africa, South-East Asia, North-East Asia or the United States.

For the period from January to May 2010, reachings to Australia were the same compared to 2009 ( Tourism Australia, 2010 ) . A pronounced lessening in the entire figure of riders carried to or from Australia occurred in February of 2010. In the United Kingdom, similar tendencies followed as in Australia for February. The Office for National Statistics indicated that in the month of February there were 1.73 million international visitants, down from 2.1 million in January 2010. Abroad goings of occupants of the UK besides declined in February, with 3.17 million people compared to about 4 million the month old to that ( Office for National Statistics, 2010 ) . The figure of UK travelers to Australia is still rather low, with the impact of the planetary fiscal crisis and a strong Australian dollar non doing Australia an attractive or inexpensive finish. This percentile has in fact been diminishing from 1999 onwards, where it stood at 9.7 % ( ABS, 2010 ) .

A fleeting rise of entire international riders was observed during March 2010 and another diminution experienced during mid-April 2010 to May. This is due to volcanic eruptions in Iceland which halted operations at major European airdromes during this clip. A bead of 16 % in reachings from Europe to Australia was experienced in the month of April ( Tourism Australia, 2010 ) . Major air hoses serving flights between Europe and Australia include Emirates, Singapore Airlines, Cathay Pacific, Malaysia Airlines, Thai Airways and Etihad. British Airways, Air Austral, Air France, Aer Lingus and Lufthansa besides service peculiar paths in Europe to Australia.

During April of 2010, volcanic eruptions in Iceland halted many operations across Europe. This contributed to the diminution in rider Numberss as seen in the graph above for that month. Demand for flights increased during this period, as people tried to return to place states, but limitations imposed on air traffic meant that aircraft were grounded for several yearss. The supply of international flights to or from Europe came to a deadlock.

The replacement of rail or manager travel became really appealing to many which needed to go out of the United Kingdom or to other airdromes in the United Kingdom during the prohibition. A intelligence article indicated that “ a 205 % addition in clients utilizing its London-Glasgow path since the Air Travel crisis began on Thursday 15 April ” occurred ( Virgin Trains, 2010 ) . One manager company stated that “ a 70 % addition in rider figure on its cross-border services ” occurred ( Breaking Travel News, 2010 ) . This shows the bing competition between different conveyance signifiers, being high-velocity rail webs and air travel, on the European continent.

For a flight from Sydney to London Heathrow, Emirates does this menu for around $ 100 Australian dollars cheaper than Singapore air hoses, winging over Dubai instead than through South-East Asia. This is in fact a longer flight than over Singapore as a stopover state.

As a comparing to a Thai International Airways A340-500, an Emirates A340-500 has 43 more seats in a 3-class constellation, with 12 suites compared to 60 lie-flat place beds ( SeatGuru, 2010 ) . This is grounds of hapless constellation efficiency on long-haul flights, such as between Sydney and London.

Furthermore in 2009, Thai Airways reported a 65.8 % place factor, down from 68.2 % in 2008 ( THAI, 2010 ) . In May 2010, the Thai Airways place factor for their European sector was down to 58 % . Singapore air hoses had an increased place factor of 78.4 % in 2009, compared to 76.5 % in 2008 ( Singapore Air, 2010 ) . Singapore airlines charge around $ 1200 Australian dollars and Thai Airways $ 850 for a one manner menu between London ‘s Heathrow airdrome and Singapore. This unreason is explained through political agitation in Thailand during 2009 and 2010, which have driven tourer Numberss down globally and therefore ticket monetary values besides. An proclamation has besides been made sing spread outing services to the United States instead than Europe, as this market is an undependable beginning of gross with record losingss at the terminal of 2009 for the air hose ( International Business Times, 2010 ) . The lessening in tourers is retrieving presently, with Australian occupants lending a big part of travel ( TAT News, 2010 ) .

Emirates has seen reduced unit costs for the fiscal twelvemonth 2009, with 27.3 % of gross coming from flights within Europe for this air hose ( The Emirates Group, 2010 ) . Madrid, as mentioned antecedently, was an added path for this air hose, justified through the FIFA World Cup triumph and strong demand in forward engagements ( AME Info, 2010 ) . Amsterdam was besides added in May 2010, hiking lading carrying capacity through make fulling holds in rider aircraft. Emirates is viing straight with KLM and has contributed to passenger Numberss significantly, as April 2010 saw a negative figure compared to 2009, and during May this turned to growing.

Italy is a market dominated by Australian occupants vacationing and returning from the state, hence the leisure sector is chiefly served. During World Youth Day in 2008, reachings contributed straight to merely a little proportion of seats sold. ( Tourism Australia, 2010 ) . There are no direct services between the two states presently, but of what traffic there is, about all reachings are from Italy instead than stopover riders.

Germany was non listed as a top 10 state of short-run occupant goings for 2009. However, arrival growings have increased and competition is increasing between Germany and Australian paths. Middle-Eastern air hoses are spread outing paths throughout Germany and to other airdromes than merely Frankfurt.

Demand is turning for Australian flights and is reflected in the complement merchandise of adjustment within Australia, with room tenancy rates higher in March 2010 than the twelvemonth old ( ABS, 2010 ) .

The following two tabular arraies represent the Numberss of riders go forthing Australia to European states through air hoses winging into Australia, during the month of May in 2010 and the sums for the calendar twelvemonth 2009.


Number of Passengers out of Australia to Europe ( May 2010 )

Air Austral


British Air passages

6 697

Qantas Air passages

20 305

Virgin Atlantic Airways

1 936

Compiled from informations in International Airline Activity May 2010, Statistical Report, ( BITRE 2010 )


Number of Passengers out of Australia to Europe 2009

Air Austral

1 208

British Air passages

103 978

Qantas Air passages

249 752

Virgin Atlantic Airways

32 055

Compiled from informations in International Airline Activity 2009, Statistical Report, ( BITRE 2010 )

From the above tabular array it is seen that Qantas Airways rider Numberss merely make about 10 % of the entire outbound riders carried by this air hose in 2009

( 2.5 million riders ) . Much other Qantas traffic is between Hong Kong, New Zealand, Japan, the United States of America and China ( BITRE, 2010 ) .

Much European traffic is besides carried by foreign Airlines as listed antecedently, or by code-sharing understandings, with really few European air hoses really winging into Australia themselves.