Reflections Upon the State of Asian Tourism

This paper addresses the implications of the Asian economic crisis for tourism. The nature of the crisis is discussed briefly and its occurrence at a time of previously rapid regional growth in tourism is pointed out. It is argued that effective demand diminished at a time when supply was increasing. In the short term, reductions in regional travel and spending have been widespread and not confined to Southeast Asia. In the longer term, reduced real prices will make Asian destinations highly competitive in long-haul markets provided that the quality of products is maintained. The crisis emphasises the need to examine tourism planning initiatives, to acknowledge that the tourism product consists of more than the provision of quality accommodation, and to give greater attention to product differentiation.