MasterIndex TM of Travel Survey Predicts Strong Outbound Travel Growth Across Asia/Pacific
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1 Contacts Danny Cheung, MasterCard International (852) Pamela So, Weber Shandwick (852) MasterIndex TM of Travel Survey Predicts Strong Outbound Travel Growth Across Asia/Pacific Double Digit Year-on-Year Growth Expected with Strongest Forecast for China, Japan and Indonesia in the First Half of 2005 Hong Kong, MasterCard International today announced the results of its MasterIndex TM of Travel report, forecasting solid growth of outbound travelers from across the Asia/Pacific region in the first half of Of the 12 key markets covered, outbound travel from China, Japan and Indonesia are predicted to show the strongest year-on-year growth at 33.6%, 19.8% and 18.9% respectively. Double digit growth is also expected for the rest of the markets, with the Philippines following closely at 9.8%. As outbound travel becomes an integral part of people s lifestyle and personal disposable income rises, the growth in volume and expansion in destination choices will also gain momentum. This is now happening in Asia/Pacific. The outlook of outbound travel is very robust for the first half of 2005, corresponding well with a strong economic outlook for the region, observes Dr. Yuwa Hedrick-Wong, economic advisor to MasterCard International in Asia/Pacific. Released twice a year, the latest report also includes overall findings of travelers from across the region on their business and personal travel habits. Intra-regional travel continues to grow in significance and volume. The report revealed 61%, as compared to 67% in the previous report, of travelers traveled more for business within the Asia/Pacific region in the past 12 months. Twenty percent versus 18% in the previous report said that they took more business trips outside the region. Similar to findings in the previous report for second half 2004, China (29%) continues to top the list as the most frequently visited Asia/Pacific country for business travel followed by Hong Kong (18%), Singapore (16%) and Japan (16%). The most frequently visited Asia/Pacific country for personal travel was Singapore (19%) followed closely by Thailand and Hong Kong (both at 18%). Findings in the previous report showed that Singapore and Thailand were top destinations for personal travel, both at 16%, followed by China at 13%.
2 MasterCard International Page 2 The MasterIndex of Travel encompasses a six month forecast of outbound travel for 12 markets (Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Thailand) and a survey of business and personal travel trends among the urban middle class across the region. A total of 5,517 consumers from 13 markets participated in the survey (with Vietnam as the additional market included in the survey component). Other highlights of the latest report include: 56% of the respondent base stated that developing their business made travel more necessary in the past 12 months. 28% percent responded that it was about the same and only 16% said it was less necessary. Similar to findings in the previous report, 82% of the respondent base said personal travel was an important element to their lifestyle. Only 18% indicated it was not important. For the next 12 months, 39% of travelers identified that they plan to travel once on a commercial airline to an international destination for a personal trip, 26% said they plan to take two trips while 17% indicated plans to travel 3 times or more. Rest & Relaxation took the lead as the foremost reason for personal travel (61% versus 53% in 2 nd half 2004) followed by to see new places (35% versus 41.5% in 2 nd half 2004). Singapore Airlines has consistently been identified as the most preferred airline for both personal and business travels since the inauguration of the MasterIndex of Travel in This trend continues in the latest report as Singapore Airlines (15%) remains the most preferred airline for business travel in Asia/Pacific, followed by Cathay Pacific Airways (13%), Japan Airlines (9%) and China Airlines (9%). For personal travel, Singapore Airlines (11%) was also the most preferred, closely followed by Cathay Pacific Airways (10%). Market Specific Highlights AUSTRALIA 12.4% year-on-year growth 2.25 million outbound travelers forecasted for first six months
3 MasterCard International Page 3 27% of Australian respondents who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles and 46% indicated that it was somewhat important. New Zealand (19%) was the most frequently visited regional destination for personal travel followed by Thailand (16%), Singapore (14%) and Indonesia and Japan (8% each). 76% of Australian travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were Rest & Relaxation (49%), For a change of scenery/weather (22%) and To see new places (22 %). Qantas (50%) was overwhelmingly the most preferred airline for personal travel followed by Air New Zealand (15%), Singapore Airlines (7%) and Thai Airways (7%). 42% of business travelers said that over the last 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 33% said that they had made about the same, and 25% said they had made more trips outside the region. New Zealand (25%) was the most frequently visited Asia/Pacific destination, followed by China, India and Japan at 17%. Qantas (23%) was the most preferred airline for business travel, closely followed by ANA (22%) and thereafter by Air New Zealand, Singapore Airlines, China Airlines and Cathay Pacific Airways (11% each). CHINA 33.6% year-on-year growth 17.4 million outbound travelers forecasted for first six months 31% of Chinese respondents who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles and 63% indicated that it was somewhat-important. Hong Kong (54%) was the most frequently visited regional destination for personal travel followed by Thailand (35%), Singapore (27%) and Malaysia (18%). 89% of Chinese travelers stated that they will make at least one personal trip on a reasons for personal travel abroad were Rest & Relaxation (63%), For change of scenery/weather (58%) and To see different peoples/cultures (52%). Most preferred airline for personal travel was Air China (44%), followed by Cathay Pacific and Singapore Airlines (12% each).
4 MasterCard International Page 4 42% of business travelers said that over the past 12 months, they had traveled an equal amount intra-regionally as they had outside Asia/Pacific; 41% had made more trips within the region; and 17% had made more trips outside the region. Hong Kong (63%) was the most frequently visited Asia/Pacific destination, followed by Singapore, Australia and Japan (17% each). China Airlines (45%) was the most preferred airline for business travel. Cathay Pacific (17%) ranked second, followed by Singapore Airlines (8%). HONG KONG 18.5% year-on-year growth 2.9 million outbound travelers forecasted for first six months 24% of respondents who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles and 51% said it was somewhat-important. China (38%) was the most frequently visited regional destination for personal travel, followed by Japan (27%), Thailand (26%), Taiwan (17%) and Malaysia (11%). 80% of Hong Kong travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were Rest & Relaxation (54%), To see new places (39%) and To see different peoples/culture (36%). Cathay Pacific (62%) was the most preferred airline for personal travel, followed by ANA (9%) and Air China (5%). 53% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 36% said the split was about the same; 11% had made more trips outside the region. China (63%) was the most frequently visited Asia/Pacific destination, followed by Thailand (13%) Cathay Pacific (51%) was the most preferred airline for business travel. Thai Airways garnered 12% of the vote and China Airlines, 10%.
5 MasterCard International Page 5 INDONESIA 18.9% year-on-year growth 2.1 million outbound travelers forecasted for first six months 21% of respondents who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles and 52% said it was somewhat-important. Singapore (49%) was the most frequently visited regional destination for personal travel, followed by Australia (27%) and Malaysia (25%). 90% of Indonesian travelers stated that they will make at least one personal trip on a reasons for personal travel were Rest & Relaxation (70%), To go shopping (48%) and To see new places (44%). Garuda Indonesia (65%) was the most preferred airline for personal travel, followed by Singapore Airlines and Malaysia Airlines (8% each). 80 % of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 11% said that the split was about the same; and 9% had made more trips outside the region. Singapore (46%) was the most frequently visited Asia/Pacific destination, in the region, followed by Malaysia (30%). Garuda (71%) was the most preferred airline for business travel followed by Singapore Airlines and Malaysia Airlines (6% each). JAPAN 19.8% year-on-year growth 9.8 million outbound travelers forecasted for first six months 36% of Japanese respondents who had made personal trips in the past 12 months considered international travel as important to their lifestyles and 51% said it was somewhat-important. China (13%) was the most frequently visited regional destination for personal travel, followed by South Korea (11%), Australia and Malaysia (10% each). 61% of Japanese travelers stated that they will make at least one personal trip on a
6 MasterCard International Page 6 reasons for their personal travels abroad were To see new places (29%), For change of scenery/weather (26%) and To visit historical sites (24%). Japan Airlines (26%) was the most preferred airline for personal travel, followed by ANA (16%) and Qantas (11%). 84% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 9% said that the split was about the same; and 7% had made more trips outside the region. China (56%) was the most frequently visited Asia/Pacific destination, followed by Thailand (13%). Japan Airlines (66%) was the single most preferred airline for business travel, followed by ANA (25%) and Thai Airways (7%). KOREA 12.1% year-on-year growth 4.6 million outbound travelers forecasted for first six months 20% of Korean respondents who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles and 60% said it was somewhat-important. Japan (24%) was the most frequently visited regional destination for personal travel, followed by Thailand (20%), China (17%) and Philippines (13%). 55% of Korean travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were To see different peoples/ cultures (43%), Rest and relaxation (41%) and For studies/courses (19%). Korean Airlines (39%) was the most preferred airline for personal travel, followed by Asiana (28%) and Thai Airways (8%). 60% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 34% had made more trips outside the region; and 6% said the split was about the same. Japan (28%) was the most frequently visited Asia/Pacific destination, followed by China (25%). Korean Air (50%) was the most preferred airline for business travel, followed by Asiana (27%). - more
7 MasterCard International Page 7 MALAYSIA 18.6% year-on-year growth 19 million outbound travelers forecasted for first six months 50% of Malaysian respondents who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 48% said it was somewhat important. Singapore (36%) was the most frequently visited regional destination for personal travel followed by Hong Kong (27%) and Thailand (22%). 96% of Malaysian travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were To see new places (69%), Rest and relaxation (64%) and For change of scenery/weather (51%). Malaysia Airlines (52%) was the most preferred airline for personal travel followed by Singapore Airlines (14%) and Cathay Pacific (11%). 46% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 35% said the split was about the same; and 19% had made more trips outside the region. Singapore (31%) was the most frequently visited Asia/Pacific destination, followed by China (28%). Malaysia Airlines (61%) was the most preferred airline for business travel, followed by Cathay Pacific (13%) and Singapore Airlines (10%). NEW ZEALAND 18.3% year-on-year growth 0.86 million outbound travelers forecasted for first six months 48% of respondents from New Zealand who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 43% said it was somewhat important. Australia (66%) was the most frequently visited regional destination for personal travel followed by Others (5%), Singapore and Thailand (4% each). - more
8 MasterCard International Page 8 89% of New Zealand travelers stated that they will make at least one personal trip on a commercial airline to an international destination in the next 12 months. The main reasons for their personal travels abroad were To spend time with family/friends (41%), Rest and relaxation (37%) and To spend time with friends (15%). Air New Zealand (49%) was the most preferred airline for personal travel, followed by Qantas (25%) 71% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 25% had made more trips outside the region; and 4% said the split was about the same. Australia (79%) was the most frequently visited Asia/Pacific destination, followed by India (4%). Air New Zealand (55%) was the single most preferred airline for business travel, followed by Qantas (33%). THE PHILIPPINES 9.8% year-on-year growth 1.1 million outbound travelers forecasted for first six months 48% of respondents from the Philippines who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 45% said that it was somewhat important. Hong Kong (33%) was the most frequently visited regional destination for personal travel followed by Japan and Singapore (tied at 22%). 85% of Filipino travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were To spend time with family/ relatives (37%), To see new places and Rest and relaxation (33% each). Philippines Airlines (46%) was the most preferred airline for personal travel. 60% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 23% had made more trips outside the region; and 17% said the split was about the same. Japan (37%) was the most frequently visited Asia/Pacific destination, followed by Hong Kong (27%) and Singapore (20%). Philippines Airlines (32%) was the single most preferred airline for business travel, followed by both Japan Airlines and Lufthansa (15% each).
9 MasterCard International Page 9 SINGAPORE 12.5% year-on-year growth 2.76 million outbound travelers forecasted for first six months 23% of respondents from Singapore who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 45% said it was somewhat important. Hong Kong and Malaysia (both tied at 42%) were the most frequently visited regional destinations for personal travel, followed by China (27%), Thailand (25%) and Japan (20%). 96% of Singaporean travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were Rest and relaxation (60%), To see new places (32%) and To go shopping (32%). Singapore Airlines (65%) was the most preferred airline for personal travel, followed by Malaysia Airlines (8%) and Thai Airways (6%). 25% of business travelers said that in the past 12 months, they had made more trips intra-regionally compared to outside Asia/Pacific; 25% had made more trips outside the region; and 50% said the split was about the same. China (49%) was the most frequently visited Asia/Pacific destination, followed by Hong Kong (41%) and Malaysia (35%). Singapore Airlines (77%) was the single most preferred airline for business travel, followed by Qantas (5%), China Airlines and Garuda Indonesia (4% each). TAIWAN 16.5% year-on-year growth 4.3 million outbound travelers forecasted for first six months 32% of respondents from Taiwan who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 50% said it was somewhat important. Japan (50%) was the most frequently visited regional destination for personal travel, followed by China (28%), Thailand (21%), Hong Kong (18%) and Indonesia (12%).
10 MasterCard International Page 10 90% of Taiwanese travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were Rest and relaxation (92%), To see different peoples/cultures (68%) and To see new places (67%). China Airlines (33%) was the most preferred airline for personal travel, followed by EVA Air (33%) and Cathay Pacific (10%). 73% of business travelers said that in the past 12 months they had made more trips intra-regionally compared to outside Asia/Pacific; 22% had made more trips outside the region; and 5% said the split was about the same. China (62%) was the most frequently visited Asia/Pacific destination, followed by Japan (38%). Cathay Pacific Airways (32%) was the single most preferred carrier for business travel, followed by EVA Air (29%), China Airlines (23%), Singapore Airlines and Japan Airlines (6% each). THAILAND 12.6% year-on-year growth 1.5 million outbound travelers forecasted for first six months 18% of respondents from Thailand who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 41% said it was somewhat important. China (28%) was the most frequently visited regional destination for personal travel, followed by Hong Kong (27%), Singapore (24%), Australia (10%) and Japan (9%). 85% of Thai travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were Rest and relaxation (77%), For changes of scenery/weather (43%) and to see new places (16%). Thai Airways (63%) was the most preferred airline for personal travel, followed by Singapore Airlines (11%) and China Airlines (7%). 73% of business travelers said that in the past 12 months they had made more trips intra-regionally compared to outside Asia/Pacific; 16% had made more trips outside the region; and 11% said the split was about the same. Singapore (29%) was the most frequently visited Asia/Pacific destination, followed by China and Hong Kong (tied at 24%).
11 MasterCard International Page 11 Thai Airways (65%) was the single most preferred carrier for business travel, followed by Singapore Airlines (13%). VIETNAM (No outbound travel forecast.) 53% of respondents from Vietnam who had made personal trips in the past 12 months considered international personal travel as important to their lifestyles, and 37% said it was somewhat important. Thailand (45%) was the most frequently visited regional destination for personal followed by Singapore (40%), China (28%) and Malaysia (10%). 67% of Vietnamese travelers stated that they will make at least one personal trip on a reasons for their personal travels abroad were Rest & Relaxation (60%), followed by To see different peoples/cultures (50%) and To see new places (43%). Vietnam Air (41%) was the most preferred airline for personal travel, followed by Singapore Airlines (19%) and Cathay Pacific (15%) 76% of business travelers said that in the past 12 months they had made more trips intra-regionally compared to outside Asia/Pacific; 20% had made more trips outside the region; and 4% said that the split was about the same. Thailand (35%) was the most frequently visited Asia/Pacific destination, followed by China (34%) and Singapore (28%). Vietnam Air (48%) was the most preferred carrier for business travel, followed by both Cathay Pacific and Singapore Airlines (tied at 17%). NOTE TO EDITORS: The full report can be found at the website About MasterCard International MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard International manages a family of well-known, widely accepted payment cards brands including MasterCard, Maestro and Cirrus and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless advertising campaign is now seen in 96 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information go to or refer to our filings with the U.S. Securities and Exchange Commission. # # #
12 MasterCard International Page 12 The following chart shows the MasterIndex of Travel forecast for outbound travel for the first half of Outbound Travelers: Forecast for 1st half of 2005 Year-on-year Growth Australia 2.25 million 12.40% China 17.4 million 33.6% Hong Kong 2.9 million 18.5% Indonesia 2.1 million 18.9% Japan 9.8 million 19.8% Korea 4.6 million 12.1% Malaysia 19.0 million 18.6% New Zealand 0.86 million 18.3% Philippines 1.1 million 9.8% Singapore 2.76 million 12.5% Taiwan 4.3 million 16.5% Thailand 1.5 million 12.6%
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