• By Shelley Shan /
    Staff reporter

Despite rising fuel costs, prices of package tours to Southeast Asia, Japan and South Korea this summer are expected to remain largely unchanged from last year, the Travel Quality Assurance Association said on Thursday.

The association released price ranges of overseas and domestic package tours from July to September, which is generally peak travel season.

Demand for overseas travel continues to be strong in the third quarter, it said, adding that the number of outbound travelers is forecast to exceed 20 million this year, surpassing the 2019 level.

Photo: Tien Yu-hua, Taipei Times

The association’s report showed that, despite a global fuel price hike, tours to Japan, South Korea and Southeast Asian nations cost about the same as last year due to an increase in air transport capacity and fierce competition among tour operators.

Tours with long-haul flights, including those to Europe, North America, Oceania, and the Middle East and Africa, jumped by 8 to 25 percent due to oil prices, Middle East conflicts and higher operating costs among hoteliers and transport service providers, the report showed.

Demand for tours to Malaysia, Singapore, Thailand and Indonesia continues to be strong, as Taiwanese travel agencies have teamed up with partners in those countries to provide promotional tour packages, the report said, adding that they also agree to jointly absorb the increase in operating costs.

The report said that Malaysia has surpassed Thailand to become a favored travel destination, with its relatively cheaper accommodations and food costs, and broader tour selection compared with Singapore and Indonesia.

Thailand’s new policy of reducing visa-free stays to 30 from 60 days would not affect Taiwanese tourists, as most group tours last five to seven days, the report said.

The Southeast Asian country is also rolling out tourism stimulus programs, including a campaign offering free domestic flights to international travelers, it said, adding that the initiative is expected to be implemented from September to November and is likely to encourage visitors to explore secondary destinations such as Chiang Mai, Phuket and Ko Samui.

Singapore continues to attract tourists and business travelers with trade shows, music concerts and high-end tours, while Indonesia remains a favorite travel destination for digital nomads and travelers pursuing sustainable tour arrangements, the report said.

The Philippines has seen steady growth of travelers seeking diving tours or going to summer school to study English, with Boracay and Palawan the most popular destinations, the report said.

The highlights of this summer’s tours to Vietnam are expected to be the expansion of direct flight services to Phu Quoc, as well as the Da Nang International Fireworks Festival, the report said.

Although operating costs for Japan-bound tours have risen due to an increase in Japan’s international tourist departure tax from ¥1,000 (US$6.29) to ¥3,000 starting in July, as well as higher fuel surcharges and airfares, package tour prices have remained largely unchanged from last year thanks to a significant expansion in air travel capacity between Taiwan and Japan, the report said.

Travel agencies have also lowered profit margins for tours to Japan and have included more affordable business hotels in package tours, the report said.

In addition to families with young children, Japan attracts tourists who wish to hike Mount Fuji or join luxury sightseeing train tours, such as the “Tohoku EMOTION” train, the report said.

A highlight of this year’s tours to South Korea is the growing popularity of Busan among Taiwanese tourists, driven by an increase in direct flights, the report said.

Tours to Jeju Island in July have nearly sold out, it added.

South Korea has arranged exclusive activities for Taiwanese travelers as well as summer events targeting young travelers, such as the Waterbomb Festival and Boryeong Mud Festival.

By contrast, tour prices to the US, Canada and Mexico have increased by 8 to 10 percent from a year earlier, driven by the FIFA World Cup and higher fuel surcharges, the report said, adding that hotel and transportation costs have also surged.

New routes launched by China Airlines to Phoenix, Arizona, and Washington are expected to boost demand for new US travel products, the report said.

Europe-bound tours are also up by 5 to 8 percent due to rising oil prices, tensions in the Middle East, inflation and the weak New Taiwan dollar against the euro, the report said.

Airlines including Emirates, Etihad Airways and Turkish Airlines have adjusted routes and capacity of flights to Europe.

Popular tours include the Camino de Santiago, the Dolomites, the Edinburgh Festival and northern Europe summer tours.

Starlux Airlines is also preparing to launch flights to Prague.

East Africa has become one of the year’s hottest destinations, with demand for Tanzania and Kenya safari tours surging during the annual wildlife migration season from next month to September.

Group tour prices in the Middle East and Africa have risen by 15 to 25 percent from last year.

Australia and New Zealand are seeing strong demand for summer escape travel, as some tourists have shifted their travel plans away from Europe and the Middle East due to military conflicts between the US and Iran, the report said.

New Zealand’s southern lights, along with tours to western Australia and Uluru, are among the most popular products, the report said, adding that tour prices have generally increased by about 10 percent.



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