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Australasia DESTINATIONS W


e have all heard about the growth of the Asia-Pacific region as the global aviation sector axis pivots


to the east. These discussions are dominated by the rising stars of the region, including China, India, Indonesia and Vietnam, but Pacific nations are also growing thanks to enhanced international connectivity and trade – and, in particular, Australia. The International Air Transport Association (IATA) expects 7.2 billion passengers to travel in 2035, a near doubling of the 3.8 billion air travellers of 2016. The latest update to the association’s 20-year air passenger forecast suggests that the developing Asia-Pacific region will be the source of more than half the new passengers over the next 20 years. And for Australia, an IATA study shows a forecasted 3.4% average annual growth in international airline passengers to the end of this decade. For the Oceania region, which includes


Australasia, Melanesia, Micronesia and Polynesia, Boeing sees a need for 1,020 new commercial aircraft by 2035, valued at $160 billion, and claims that new aircraft technology will play an important role in bringing more sustainable air services into the region. Air traffic touching Oceania in aggregate is expected to grow 4.7% annually over the next 20 years, mirroring the rate of world growth, according to Boeing, as “airplane technology continues to develop improved range capability and fuel efficiency”. The manufacturer says these improvements are “particularly beneficial” to the remote geographical location of the region by opening new international routes that were formerly unreachable. “Oceania remains an


important market for Boeing as airlines continue to add capacity, modernise their fleets


Qantas CEO Alan Joyce


and shift their business models to adapt to this competitive market,” says Dinesh Keskar, SVP of Asia-Pacific and India sales, Boeing Commercial Airplanes. “While we see the majority of the demand being for single-aisle airplanes such as the 737 Max, fuel-efficient twin-aisle airplanes such as the 787 Dreamliner and the 777X will also be needed, enabling airlines to profitably open new routes, never before possible.” Visitor arrivals into Australia continue


to show impressive growth, thanks in a big part to enhanced global connectivity and a proactive approach to network development from airports, destinations and Tourism Australia. Latest data from the Australian Bureau of Statistics show that double-digit, year- on-year growth in the number of visitor arrivals was recorded in all of the first 10 months of 2016, bringing the total number for the year ending October 2016 to a record 8.14 million. “It’s fantastic to see the number of


international visitors from all of the markets Tourism Australia targets grow over the past year with a particularly strong performance from key Asian markets and the US,” says Tourism Australia managing director John O’Sullivan. Arrivals from China, Japan and South


Korea grew by more than one-fifth for the 12 months to October 2016, up 20%, 21% and 28% respectively over the period. Double-digit growth in visitor numbers was also recorded from the US of 17.6%, Malaysia at 16.3% and Singapore at 15.7% for the year. Visitor number growth of 14.7% to


Australia was driven by the leisure segment across the same period with Tourism Research Australia visitor survey data putting annual international visitor spend at approaching US$30 billion, a rise of more than 11% rise year on year. Growth across the three key north Asian markets of China, Japan and Korea had resulted in


International non-stop inbound seats into Australia 27.5


22.5 25


17.5 20


15 2010 2011 2012 2013 2014 2015 2016 Source: AirVision Market Intelligence from Sabre Airline Solutions routesonline.com routesonline.com R ROUTES NEWS 2017 SUE 6 37 OUTES NEWS 2016 IS ISSUE 1


w


Inbound seats (millions)


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