COMCEC Tourism Outlook-2016
6
Figure 3.1 Tourism Megatrends
Source: Horwath HTL, 2015
In addition to aging population, generation Y (also known as Millennials) and generation Z,
(known as iGen) are also an important market for tourism sector. These generations are
technology driven age groups. Among these, millennials are expected to represent 50% of all
travelers by 2025 and before that the entire tourism value chain is being adjusted to meet their
lifestyle requirements. To meet their needs, tourism services will be more transparent and tech
savvy, with a strong focus on empathy and customer connection. On the other hand, generation
Z is believed to be totally different from generation Y in so much as they already have higher
access to information, a more dynamic lifestyle, and a higher level of education, an accelerated
adoption of change and faster spending (Horwart HTL,2015).
The increase in average income and the fall in levels of absolute poverty are resulting in a
growing middle class. It is expected that the middle class will increase from 1.8 billion in 2009
to 3.2 billion by 2020 and 4.9 billion by 2030. Most of this growth is expected from Asia-Pacific
and their characteristics will have a growing importance and impact on the tourism products
and services (Horwart HTL,2015).
The weight of emerging destinations in the international tourism market is increasing.
According to UNWTO; by 2030, 57% of international arrivals will be from the emerging
destinations.
Governments around the world are facing numerous political issues that might influence
tourism destinations. Today, there is more need than ever to secure political, economic and
social stability in the countries. Political tensions, terrorism and civil riots impose a threat to the
future of tourism in any destination. According to a research byWTTC, the impact of these crises
on tourism and the length of time needed to return to previous levels differ widely depending
on the type of crisis and diverse factors. Whether tourists are directly targeted or affected, which
locations are involved, the extent of infrastructure damage, the time of the year, as well as the
scale and tone of media coverage are the factors that affect the scale of their impact on tourism.
In contrast to popular opinion, terrorism does not have the biggest impact, however political
turmoil has a much more gradual impact, often lasts for a long time and is difficult to judge when
it is over. To be successful, it is clear that crisis management is becoming a necessity for all