Travelers from the Asia-Pacific region are displaying higher-than-average sensitivity to exchange rate fluctuations, a factor that is increasingly shaping outbound travel decisions and destination choices. This insight forms the core of the Mastercard Economics Institute’s (MEI) annual “Travel Trends 2025” report, which analyses global tourism patterns using anonymised consumer spending data and third-party insights.

According to the report, a weaker yen throughout 2024 was a key contributor to Japan’s booming tourism sector, helping the country secure two of the world’s top trending summer destinations—Tokyo and Osaka—for the second consecutive year. Japan’s affordability amid yen depreciation drew strong travel demand, especially from neighbouring Asian markets such as China and Singapore. For instance, a 1% depreciation of the yen against the Chinese renminbi was linked to a 1.5% increase in inbound Chinese travellers.

In comparison, tourists from regions like the U.S. and New Zealand were less influenced by similar exchange rate fluctuations, with only a 0.2% increase in tourism in response to a 1% yen depreciation. This trend reveals the stark contrast in economic sensitivity and travel behaviour across global markets.

“In today’s climate of economic uncertainty, travellers from Asia-Pacific are making sharper, value-driven decisions,” said David Mann, Chief Economist, Asia Pacific, Mastercard. “Their sensitivity to exchange rates highlights how macroeconomic factors are increasingly dictating travel flows, particularly for destinations like Japan, where currency movements can make or break a family’s vacation decision.”

India, one of the fastest-growing outbound travel markets, continues to see record travel volumes. In 2024, Indian travellers set a new benchmark for outbound travel, with Abu Dhabi, Hanoi, and Bali emerging as the most visited destinations. This growth was bolstered by expanded direct flight connectivity and a rapidly rising middle class that prioritizes experiences and affordability.

The report also revealed that Indian tourists—alongside those from Singapore, Taiwan, and South Korea—demonstrate heightened responsiveness to currency value shifts. A 1% depreciation in the U.S. dollar, for instance, corresponds to a 0.6–0.8% increase in travel from these countries to the United States. These insights reaffirm India’s rising influence on global travel flows and its growing sophistication as a tourism market.

Asia-Pacific destinations dominate the global summer travel charts, with eight cities in the top 15 trending list. Japan’s Tokyo and Osaka secured the top two spots globally for June to September 2025. Vietnam’s coastal city of Nha Trang made a surprising debut, driven by its scenic beaches and dynamic nightlife.

Travellers from the region are increasingly prioritising destinations where their home currency provides greater purchasing power. Singaporean visits to Japan reached record highs in 2024, aided by a 40% rise in the Singapore dollar against the yen, even as accommodation and flight prices surged.

India's outbound tourism market size in 2022 was estimated to be USD 15163.4 million, which is projected to rise by 11.4 per cent CAGR between 2022 and 2032 and reach USD 44799.9 million. India's impressive rebound as a source market for outbound travel in Asia and Europe is a positive sign for the tourism industry, indicating a growing demand for travel.

Beyond economics, the Mastercard report highlights evolving travel motivations. Experiences are now outweighing conventional itineraries, with tourists seeking meaningful connections, wellness, and local culture. Destinations such as Gianyar in Bali for culinary tourism and Queenstown in New Zealand for global dining are gaining popularity.

Thailand has emerged as a wellness hotspot, offering eco-lodges and meditation retreats, while New Zealand’s rising wellness trend index (WTI) reflects its appeal to travellers seeking self-care and nature immersion.

“This growing focus on purpose-driven journeys reflects people’s broader desire for experiences that nourish both body and spirit,” said Mann.

The rise of sports tourism is another defining feature of the current travel landscape. Japanese fans contributed to a 91% surge in international spend during Shohei Ohtani’s World Series debut in Los Angeles, underlining how major sporting events are becoming travel catalysts.

Meanwhile, safety remains paramount. MEI flagged a 28% increase in travel-related fraud during peak seasons in high-traffic destinations. Mastercard is addressing this with AI-driven fraud detection systems, digital wallets, and layered security protocols to safeguard tourists globally.