Expert sees stability, growth of tourism industry in Asia

Despite the ongoing challenges facing the Commonwealth, the islands’ tourism industry faces a bright future ahead, according to a marketing expert.

Jim Beighley, DFS Group senior vice president for strategy and market development, is convinced that the CNMI is still in the right business-the tourism industry.

Speaking during Wednesday’s membership meeting of the Marianas Visitors Authority, Beighley described tourism in any part of the world as a great business that promises both stability and profitability.

“Tourism is one of the fastest growing industries. Just in every part of the world, growth of tourism and travel is outpacing the growth of normal economy. I think if you are in tourism and you’re in Asia, you’re in the right business,” he told participants gathered at the Fiesta Resort & Spa Saipan.

Beighley said that Asian tourists are estimated at 250 million every year. This number is projected to double in eight years-about 450 million tourists by 2020. When this happens, Beighley predicts that there will not be enough hotel rooms and airline seats in the market to handle the growing capacity of travelers in Asia. The signals the need for Asian destinations to expand and grow to meet the demands of these tourists.

By 2020, Beighley said, Asia will be the second largest tourism market in the world next to Europe.

He described as phenomenal the rise of the middle class in Asia that will dictate the expected growth in tourism, which will spell economic recovery and success.

The middle class, he said, is defined as people who have steady jobs, can provide educational opportunities for their children, have stable retirement, and have access to healthcare.

Between now and 2020, Beighley predicts that between 80 million and 100 million households in Indonesia will become middle class, while 30 million to 40 million households will become middle class in Vietnam. In China, 300 million to 400 million households are expected to be in the same classification.

When a household becomes middle class, Beighley said the ability to travel overseas is something they can do. This, he added, is new to Asia.

World wants Chinese travelers

According to Beighley, Chinese travelers are now the target of tourism industries across the globe. He predicted that future destinations will be greatly shaped for Chinese tourists-hotels, infrastructure, and marketing.

However, because the CNMI is a pioneer in the China market, Beighley sees this as a great advantage because the Commonwealth has already advanced knowledge of this market and has been dealing with these consumers for quite a long time now.

Another good news in the horizon, Beighley said, is the increasing stability of the Japan market, which was never seen in the last three years. He cited the strength of the yen against the dollar as an example of the increasing stability of the market.

The CNMI has four airlines flying to the islands from various destinations. With the addition of Saipan Air on July 1, this will go up to five.

To realize the promise of the tourism industry, the CNMI has to focus on filling empty air seats, Beighley said.