ASIA Travel Tips.com

 

Asia Pacific Consumers Look to Cut Back on Discretionary Spending: MasterCard Survey

Search ASIA Travel Tips .com Latest Travel News Send to Friend Wednesday, 12 November 2008

Consumer confidence across the Asia Pacific region has fallen seven points from six months ago as a result of the current economic volatility and the concerns over a global economic recession, according to the latest MasterCard Worldwide Index of Consumer Confidence.

Consumers are also tightening their belts, with 70% of the region’s consumers looking to cut back on their discretionary spend for the next 12 months. These were some of the findings from the inaugural MasterCard Worldwide Index of Consumer Purchasing Priorities and the latest MasterCard Worldwide Index of Consumer Confidence which were released today.

“Consumers across the region are bracing themselves for tougher times ahead in 2009. In most markets across Asia, more than half of the respondents surveyed are looking at cutting back on discretionary spend. Australia and New Zealand stand out as the only two markets where less than half of the consumers surveyed indicated a reduction in discretionary spend over the next 12 months. While many are looking towards China to help maintain economic growth momentum in the region, the fact is the Asia’s economic powerhouse itself is slowing down fast, with 60% of Chinese consumers indicating a reduction in discretionary spend,” said Dr. Yuwa Hedrick-Wong, economic advisor, Asia Pacific, MasterCard Worldwide.

The MasterCard Worldwide Index of Consumer Confidence is calculated based upon percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral. Five economic factors are measured: Employment, the Economy, Regular Income, Stock Market and Quality of Life.

Key highlights include:

• Only four - Vietnam (88.1), China (76.6), India (63.9) and Singapore (62.3) - out of the 14 markets surveyed are optimistic about the first half of 2009, although all but Vietnam’s score had declined from six months ago. Australia was neutral (49). Hong Kong, having dropped from 83.1 six months ago to 41.8 currently, and Taiwan (from 71.3 to 32.1 currently) experienced the greatest decline in consumer confidence.

• The latest region wide consumer confidence score of 47.4 is below the score six months ago (55) and a year ago (67.3), but above the average of 32.3 during the 1997-98 Asian economic.

• Overall consumer outlook across the region fell for all five indicators measured from six months ago - Employment (from 54.2 to 41.2), Economy (from 51.8 to 42.1), Quality of Life (from 48.2 to 44) and the Stock Market (from 53.4 to 45.5). The outlook for Regular Income (from 72.2 to 64.3) declined but remained optimistic.

MasterCard Worldwide Index of Consumer Purchasing Priorities

• Consumers across the region currently spend an average of between 10 – 20% of their personal annual income on discretionary items. Some 30% of consumers spend 21% - 50% of their personal annual income on discretionary items, and 5% of respondents said they usually spend more than 50% of their personal annual income on discretionary items.

• Seventy percent of the region’s consumers, however are looking to cut back on discretionary spend over the next 12 months. Markets with the highest number of consumers looking to reduce expenditure are Taiwan (90.8%), the Philippines (90.5%) and Korea (85.5%). New Zealand (44%), Australia (46.5%) and China (60.1%) have the least number of respondents looking to reduce their discretionary expenditure over the next 12 months.

• Over the 12 months ahead, male counterparts (69%) are less likely to cut back on their discretionary spending as compared to female consumers (71%).

• Younger consumers are less likely to cut back on spend as compared to their older counterparts. 68.1% of consumers aged 30 years and below would cut back on spend, as compared to 71.9% of consumers aged 56 years and above.

• Across the region, Dining and Entertainment is the top discretionary spend priority (59%) for the next 12 months, followed by Fashion and Accessories (46%), Children’s Education2

• One in three consumers is looking to save more than 20% of their income over the next 12 months. Saving is important to consumers in all markets, especially to the Filipinos (97%), Indonesians (96%), Malaysians (93%), Indians (92%) and Thais (90%). Even China, which was at the lowest end of the list, had 78% of consumers stating that saving was important. (44%) and Personal Travel (42%). Dining and Entertainment is the top purchasing priority in 11 out of the 14 markets surveyed, with the exception of India, Korea and the Philippines where Children’s Education ranked top.

The MasterCard Worldwide Index of Consumer Confidence and MasterCard Worldwide Index of Consumer Purchasing Priorities are based on consumer surveys conducted by MasterCard across the region. A total of 6,019 consumers were surveyed in 14 markets (Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam) between 1 to 29 September 2008. Data collection was via personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary.

The new MasterCard Worldwide Index of Consumer Purchasing Priorities, which will be released annually, provides valuable insights into consumers’ savings and expenditure behavior and their discretionary spending priorities for the 12 months ahead. The long running MasterCard Worldwide Index of Consumer Confidence provides information on consumer sentiment across the region.

See also: Market Highlights from Travel Industry Survey and other recent news regarding: Airlines, Aviation, Flights, HotelsPromotions, New Hotels, MasterCard, MasterIndex, Spending

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Sustainable Hotels and MICE. Exclusive HD video interview with Grace Kang, Managing Partner of Greenview Hospitality. Criteo Travel Flash Report 2016. Exclusive HD video interview with Mr. Daniele Beccari, Global Head of Travel at Criteo. Chef Fernando Arevalo, originally from Bogota, Colombia, worked his culinary magic in New York and Hong Kong before moving to Singapore where he is today the Executive Chef of Artemis Grill on the 40th floor of Singapore's newest green building - CapitaGreen.
Sustainable Hotels and MICE Criteo Travel Flash Report Colombian Chef in Singapore
Exclusive HD video interview with Mr. Hiroshi Sawabe, Executive Director of the Office of International Tourism, at JATA (Japan Association of Travel Agents). In this interview filmed on 24 September at the JATA Tourism Expo 2016 in Tokyo, Japan, Mr. Sawabe speaks to Steven Howard of TravelNewsAsia about the status of tourism within the country. HD Videos from Sabre's Travel Technology Exchange APAC 2016. Sabre, a leading technology provider to the global travel industry, hosted over 500 members of the Asia Pacific travel industry at its inaugural Asia Pacific Travel Technology Exchange (TTX) conference in Beijing from 21 to 24 September 2016 Spa and Wellness Industry - HD Video Interview with MD of Thailand-based Destination Spa Management, Joy Menzies.
Japan Tourism Update Sabre TTX APAC 2016 Destination Spa Management
Jonathan Wigley, CEO of Travelodge Thailand, outlines expansion plans in HD Video Interview. Exclusive HD video interview with Myanmar's Minister of Tourism and Hotels, H.E. U Ohn Maung, about the status of tourism in the beautiful and mystical country of Myanmar (formerly known as Burma). Birth of a Luxury Thai Hotel Brand - HD Video Interview with Christopher E. Stafford, Chief Operating Officer of the newly formed 137 Pillars Hotels & Resorts.
CEO of Travelodge Thailand Myanmar Tourism Update Birth of Luxury Thai Hotel Brand
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014  Exclusive HD video interview with Jaime J. Bautista, President & Chief Operating Officer (COO) of Philippine Airlines (PAL) HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 PAL President & COO Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER

Latest Travel News
Advertising
Advertising

 
Copyright © 1997-2017 ASIATravelTips.com/TravelNewsAsia.com