Expansion of Low-Cost Carriers Could Foster Tourism Growth in 2005

The World Tourism Organization (WTO) is pointing at the expansion of low-cost air carriers as one of the key factors that could keep the world travel industry on the rise in the five continents all through 2005.

The implementation of low-cost airlines is definitely pushing leisure travel ahead, a segment that WTO experts believe is the powerhouse of the world vacation industry. Business travel, on the other hand, will continue rebounding in coming months.

A stronger euro and a weaker U.S. dollar will also be playing a major role in the distribution of tourist flows in the course of the ongoing year, with more European trekkers sallying forth to the Americas and Asia, and far more interregional travel going on between those two parts of the globe.

The price of oil –many an estimate forecasts a high tag tacked on it all year long- won´t have ripple effects on the growth of the world economy, nor on the going of the hospitality industry.

In the Western Hemisphere, the recovery of the U.S. economy and a feebler greenback will favor outbound travel within the region, especially of southbound trips. In the same breath, that much-anticipated snapback will put far more European sunbathers in Asia and the Pacific Rim.

In the Caribbean, the outreach of low-cost carriers based in the United States and the advance of the cruise industry will help companies close 2005 with good upshots. The Caribbean may also benefit from the Indian Ocean detour caused by the December 26 tsunamis.

The U.S. travel ban on Cuba, barring American citizens from visiting the island nation, is another factor that cannot be downplayed. Nonetheless, good relations between Cuba and the European Union could offset the lack of leisure trippers from the U.S.

In the case of Europe, the advance of the tourist sector is closely linked to economic factors. Experts are predicting a much heftier recovery of emerging economies, such as Russia and Turkey (6.6 and 5 percent, respectively), while nations in Eastern and Central Europe will soar little more than a couple of percentage points.

Experts are also insistently referring to the rebound of the Japanese and American outbound travel markets, though for many of them a stalwart European currency continues to be a huge snag in the way.

New routes and more low-cost air carriers will drive the development of interregional traffic in Asia and the Pacific Rim, chiefly following the opening of a new airport in the Japanese city of Nagoya, home to the World Exposition between March and September. The grand opening of the Disney World Center in Hong Kong (also in September) and the fourth edition of the South East Asian Games in Macao, between October and November, are also elements to keep a watchful eye on.

As far as Africa and the Middle East are concerned, industry mavens are counting on significant increases in Egypt, Morocco and Tunisia, given their competitive edge in terms of cheaper sun-and-sand segments.

South Africa hopes to chalk up better results this year with more airlifts from Europe and thanks in part to China´s decision to include the nation on the list of authorized travel destinations. The giant Asian country also decided earlier this year to grant that status to Ethiopia, Kenya, Tanzania, Tunisia, Zambia, Zimbabwe, Mauritius Islands and the Seychelles. These two island nations (Mauritius and Seychelles) could also reap benefits from the tsunami detour in the short run.