One Indian city contributing to this global trend is India’s capital – New Delhi – which ranks as one of the top 10 feeder cities driving up visitor arrivals in Bangkok. New Delhi’s growing economy along with rising household disposable income and a strong appetite for international travel amongst its residents are all factors responsible for the burgeoning travel corridor between New Delhi and Bangkok.
According to the Index, in 2013 Bangkok will attract over 400,000 overnight visitors from New Delhi a 7.4% increase over 2012. This increase in arrivals from New Delhi is also driving up cross-border spends; with overnight visitor spend projected to increase by 9.1% in 2013 to a total of $378mn.
Ari Sarker, Division President, South-Asia, MasterCard, said, “International tourism is becoming a vital and resilient export for the leading destination cities in the world and its economic and social benefits are far-reaching. The fact that an Asian city is at the top rank for the first time and that India’s contribution as a feeder city to Bangkok is significant are both indicative of growing Asian cross-border travel. As this travel increases, the role of electronic transactions and payment networks like MasterCard that offer safety, convenience and global acceptance will become even more critical.”
The Index additionally reveals that Mumbai has registered a rapid growth in the number of international visitors arriving in the city from 2009-2013. Ranked at 4th position Mumbai’s projected growth rate is 113%. Chennai is the only other Indian city to feature in the Top 20 list with a projected growth rate of 56.1% by the end of 2013.
Bangkok has bested London by slimmest of margins with only about 25,000 visitors separating the two – a difference of about one percent. London is now followed by Paris, Singapore, New York, Istanbul, and Dubai. Paris remains third, but has shown a decline in the estimated number of international visitor arrivals. Istanbul and Dubai show the strongest growth (along with Bangkok) in increasing their arrival numbers by 9.5 percent and 10.9, percent respectively. With the exception of Bangkok’s ascension, the lineup of the global top 20 in 2013 is the same as in 2012.
Ann Cairns, President of International Markets, MasterCard, comments: “With the dominance of the Asia/Pacific region, this year’s index reflects the rebalance that the globe is undergoing in large part because of the rise of emerging markets. This shift is further underscored by electronic payments, which are enabling more people from more places to participate in the global economy than ever before. Electronic payments are helping drive commerce and various sectors worldwide like travel and tourism. In fact, most airlines no longer accept cash when passengers want to buy something from the beverage and food cart.”
About Bangkok’s number one ranking, the Tourism Authority of Thailand said: “The Thailand tourism slogan – “Amazing” – is certainly apt as its capital, Bangkok, has emerged at the top of this year’s index. What a tribute this is to our city’s hospitality industry, the transport industry and food and beverage and catering industry and more.”
Dr Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard and author of the report, concludes: “Bangkok brought with it great momentum from last year. Its ascent to number one is not only a first for Asia, it’s emblematic of the rise of the Global South which encompasses much of Africa and Asia as well as South America.”
“To the extent that the destination cities succeed in attracting more international visitors, there is the inevitable pressure on improving public infrastructure and facilities. With the right policy responses, a virtuous circle can be set in motion: more international visitors leading to more and better investment to improve the cityscape and the overall urban environment, which in turn makes the destination city more attractive to more international visitors.”
Recognizing the unique experiences cities have to offer for locals and visitors alike, MasterCard wants to highlight the five Priceless Cities platforms that made this year’s Index: London, Paris, Singapore, and New York in the Top 5 and LA at 20.
The MasterCard Index of Global Destination Cities ranks cities in terms of the number of their total international visitor arrivals and the cross-border spending by these same visitors in the destination cities, and gives visitor and passenger growth forecasts for 2013.
This Index and the accompanying reports are not based on MasterCard volumes or transactional data.
Highlights and Analysis of the 2013 Global Destination Cities Index:
NEW NUMBER ONE: Bangkok is 2013’s top destination city by international visitor arrivals as it surpassed London by the slimmest of margins. This is the first time an Asian city is in the top rank since the Index was launched in 2010. London is now followed by Paris, Singapore, New York, Istanbul, and Dubai. Paris retains its number three ranking, but is the only destination city among the top 20 that shows a decline in the estimated number of international visitor arrivals, by -0.7 percent in 2013. Istanbul and Dubai show the strongest growth (along with Bangkok) in their arrival numbers by 9.5 percent and 10.9, percent respectively. With the exception of Bangkok assuming the number one ranking, the lineup of the global top 20 in 2013 is the same as in 2012.
RISE OF THE GLOBAL SOUTH: Of the 12 destination cities showing the fastest increase in air travel connectivity, all are located east and south of Istanbul with the exception of Moscow. Bangkok, this year’s Top Destination City, demonstrated growth rates of better than 18 percent in 2011 and 2012, with a further 9.8 percent growth in 2013. Dubai shows the strongest growth (along with Bangkok) in increasing their arrival numbers by 10.9 percent.
CITIES WHERE AIR CONNECTIVITY IS UP: The city with the fastest-growing air travel connectivity in North America is Toronto, which ranks 13. The fastest growing city in Western Europe in air travel connectivity is Berlin, which ranks 17. The African city with the fastest growing air connectivity is Cairo, which ranks 19, and in Latin America it is Bogotá, which ranks 22. This geographical pattern clearly suggests that destination cities in emerging markets in the Middle East and Asia are expanding the fastest in being connected to the rest of the world through having more flights to more cities, and more frequent flights to cities where they are already connected. This will strongly drive the growth of their visitor arrivals and cross-border spending in the coming years.
CITIES TO WATCH: A closer analysis of the global top five destination cities from 2010 to 2013 with regard to growth rates offers some tea leaves for future indices. If all top 10 destination cities maintain their current rates of growth in the next few years, then by 2016 Istanbul will surpass Singapore, New York and Paris in terms of international visitor arrivals; and Dubai will similarly surpass Singapore and New York in 2016 and Paris in 2017.
Region by Region Overview:
• The rebalancing that the globe is undergoing is also reflected in this year’s index in the dominance of the Asia/Pacific region. Bangkok is the top ranked city in Asia which boasts the largest number of Destination Cities this year at 32. Bangkok is followed by Singapore, Kuala Lumpur, Hong Kong, Seoul, Shanghai, Tokyo, Taipei, Beijing, and Guangzhou. Significantly, five of the top 10 in 2013 are in the Greater China region.
The storyline of cross-border spending in the region is Tokyo which moves up from the seventh rank in arrivals to the third rank in spending, reflecting the higher costs of living in Tokyo. Two Australian cities, Sydney and Melbourne, appear in the top 10 in spending—ranking fifth and 10th, respectively. Like Tokyo, this is a reflection of the higher costs of living in these two cities as well as the tendency to stay longer when foreigners visit these two cities.
When it comes to growth rates over the past three years, Tokyo has shown a strong recovery in 2012, bouncing back to 20 percent from a severe contraction of 20 percent in 2011 as a result of the earthquake, tsunami and Fukushima nuclear disasters.
• Although London comes in a very close second this year, it continues to rank first in Europe in international visitor arrivals, followed by Paris, Istanbul, Barcelona, and Milan. In fact, the lineup of the top 10 in Europe remains unchanged from 2012. What stands out are the astonishing growth rates of Istanbul, which rebounded vigorously from a contraction in 2010 to exceed 25 percent in 2012, then moderated to 9.5 percent in 2013. If Istanbul continues to grow and Paris continues to decline at their current rates, Istanbul will surpass Paris in numbers of international visitor arrivals by 2016. Cross-border spending wasn’t as robust as in years past. That said, Barcelona has recovered from a contraction in 2012, rising to an estimated growth rate of 4.7 percent in 2013.
• When it comes to growth, Latin America is a tale of two regions. On the one hand, the lineup of the top 10 destination cities led by Mexico City remains unchanged. But this apparent stability masks rapidly changing growth dynamics as a different story emerges when you look at the top 5 destination cities by international overnight visitors. When it comes to growth rates, Lima is gaining traction as the fastest-growing at 12.7 percent, followed by Sao Paulo at 10.7 percent. If these growth rates are maintained, then Sao Paulo could surpass Mexico City and Buenos Aires in 2017, and Lima could overtake Buenos Aires in 2018. Among Latin America’s top 10 destination cities by international overnight visitor spend, Bogotá is the fastest growing.
• If Istanbul is on the rise in Europe, its counterpart in the Middle East and Africa is unquestionably Dubai which retains its number one rank in the region. In fact, the line-up remains unchanged in the last year. But the news story coming out of Dubai is how much it’s pulled away from the rest. Its international arrival number is almost twice that of Riyadh in second rank, and about four times as high as the third-ranked Johannesburg.
The destination city with the strongest growth rate of international visitor arrivals is Abu
Dhabi. If the same growth rates are maintained in the coming years, Abu Dhabi will overtake Lagos in 2016 and match Johannesburg in 2017.
We have an outlier in Beirut in terms of visitor cross-border spending. Beirut comes in at number three even though it is not among the top 10 in visitor arrivals, a testimony to its ability to attract visitors that are big spenders.
• In North America, the song remains the same: New York, New York, as the Big Apple retains its top ranked destination city in the region, followed by Los Angeles and Miami. Toronto comes in at 4th rank. The top 10 roster for North America remains unchanged. The resilience story in growth rates in international visitor arrivals belongs to Miami, which suffered a contraction of five percent in 2011, but rebounded vigorously to an eight percent gain in 2012, and then close to 11 percent in 2013.
