Mastercard Economics Institute on Travel in 2025: Tokyo and Osaka top the list of summer hot spots while Nha Trang makes its debut, currency fluctuations are a key consideration for travellers
Asia-Pacific is home to eight of the world’s top 15 trending summer travel destinations, according to Travel trends 2025, the annual Mastercard Economics Institute (MEI) report on consumer spending in the travel economy. While exchange rates and geopolitical dynamics can influence behavior, the report highlights that passions and purpose-driven motivations remain strong drivers shaping the travel industry. Drawing on a unique analysis of aggregated and anonymized transaction data and third-party data sources, the report uncovers what is shaping travel choices today.
Responding to a question from WiT about most surprising trends this time around, David Mann, chief economist, Asia Pacific, Mastercard, said “It would be those interesting new locations that that tourists are looking for; places that have been doing much better because they’re either just an interesting place that tourists have never been to before, or they’re just offering even more value.”
He continued, “It has been surprising, just how powerful that force has been. And then you throw in passion from seeing something on TV that you can’t wait to go see it in person. And the cross-border travel that has been so strong, even on the outbound going from Japan into a part of Korea that I wouldn’t have expected to be doing so well, really, being driven by a TV show. I think it’s been surprising how strong that effect really has ended up being.”
With so much data collected, one has to wonder how wildcards within the scope of economic uncertainty play into the tourism ecosystem. The ‘Trump Tariffs’, for example, could not have been prepared for in advance – so how much influence does it have on Asian tourism, according to MEI’s data?
“It’s an interesting question because the way we’ve been thinking about tariffs on goods imported into the U.S. is that they’re just the first step—it’s really a matter of how large they are,” Mann told WiT during the Mastercard Travel Trends media roundtable. “Over the past several days, tariffs have actually been coming down, especially on China. The challenge now is that many Chinese exports could be redirected to other markets at lower prices if excess capacity builds in the short term. Longer term, we still expect strong demand in line with existing trends—people will gravitate toward destinations where goods are already cheap, especially if they’re travelling for retail therapy. That’s largely been Japan. So, we may see more cross-border e-commerce or even travel to Japan or mainland China to shop. There could also be more tourists from the U.S. looking for retail value abroad.
“I wouldn’t go so far as to say supply chains have fully shifted—that kind of transformation takes much longer. The stronger trend has been toward wellness, dining, and experiences. From our perspective, the tourism and travel story aren’t being significantly impacted in the short term by these tariff changes.”
Political shifts aside, another stat that stuck out of the report was Singapore’s relatively softer inbound traffic, reaching around 86% of 2019 levels, despite the fact that its tourism board has done so much heavy lifting with major events like the Taylor Swift concerts and multiple partnerships with OTAs to attract regional crowds. The top five source markets inbound into Singapore were China, Indonesia, India, Malaysia and Australia. However, Singapore’s outbound travel spending is up 12%, with passenger volumes nearly matching 2019 levels. Most popular has been Japan, Indonesia, Malaysia and Australia as key destinations for Singapore based travellers.
According to Mann, “The strong Singapore dollar makes it a high frequency, high value outbound market, while it has been slowing on the inbound tourism front. There’s no question that events have been a major positive for Singapore in driving tourism growth, including MICE. The challenge is quantifying the halo effect. How often does a positive personal visit lead to future business bookings? For instance, a decision-maker visiting for leisure might later choose Singapore for a conference—but that’s much harder to measure. What we can measure is the direct impact of the event itself, and we’ve consistently seen strong uplifts. Just like the Taylor Swift concerts across the U.S., we saw similar, if not stronger, results in Asia Pacific, especially in Singapore.”
Mann continued, “Big events clearly drive increased spending—not just on tourism, but on bars, restaurants, and retail. That was especially true during last year’s Taylor Swift concerts, and we expect similar outcomes from upcoming events like the Lady Gaga show.”
Other highlights from the Asia-Pacific region include:
Japan leads the pack—with Vietnam’s Nha Trang rising fast:
Mastercard’s data reveals that Tokyo and Osaka are the world’s #1 and #2 top trending destinations for summer travel (June-September 2025), with the two largest increases in tourism demand relative to previous levels. In 2024, Japan’s capital city climbed from the number two spot that it held in 2023 to lead global travel demand heading into the peak summer season, reflecting its continued appeal. Meanwhile, Nha Trang in Vietnam made a surprise entry into the list, climbing in popularity thanks to its beautiful beaches, enviable coastline and vibrant nightlife.
China and India – still Asia’s travel titans:
The Chinese Mainland retained its position as the world’s largest outbound travel market in 2024. Chinese travellers are increasingly prioritising value and visa- friendly destinations including Japan, Malaysia, and Singapore. Interest in Central Asian destinations such as Kazakhstan, Uzbekistan, and Kyrgyzstan is also increasing.
According to Mastercard’s research, India again posted the country’s highest number of outbound travellers on record in 2024. Indian tourists are exploring a broad mix of destinations—the top three being Abu Dhabi, Hanoi, and Bali—with growth supported by expanded direct flight connections and a rapidly growing middle class that is eager to travel. Together, the two markets continue to play an outsized role in shaping global travel flows.
Experiences over itineraries:
Across Asia-Pacific, travellers are prioritizing dining, nature, and wellness as key motivators for travel, seeking meaningful moments over traditional sightseeing. Destinations like Gianyar in Bali, Indonesia, known for its iconic Babi Guling spit-roasted pork, and Queenstown in New Zealand—where restaurants welcomed tourists from 44 countries in 2024—are standing out as globalized culinary hotspots. According to MEI’s Wellness Trend Index2 (WTI), Thailand is among the destinations leading the way in relaxation experiences and self-care, where visitors can reconnect with nature in immersive eco lodges or find calm in meditation retreats. At the same time, the rising WTI score for New Zealand suggests a growing effort to be part of this popular movement. Overall, the trend toward purpose- driven travel reflects people’s broader desire for experiences that nourish both body and spirit.
Sports fandom fuels travel:
The rise of sports tourism continues, with major events like the Australian Open tennis tournament and Baseball World Series in Los Angeles drawing significant international spend. Shohei Ohtani’s World Series debut saw spending by Japanese visitors surge by 91%, six times the broader cross-border boost, highlighting how sporting events are proving to be powerful travel catalysts for fans.
Mann said: “The Asia-Pacific region continues to set the pace for global travel, with buzzing destinations like Tokyo, Shanghai, Seoul, and Singapore capturing the imagination of travellers around the world. Even as economic uncertainty persists, travel remains a bright spot—driven by people seeking meaningful, value-driven experiences. From exchange rates to regional accessibility, travellers are making smarter, more intentional choices about where they go and why, with a clear shift toward more personal, purposeful journeys.”
Travellers from Asia-Pacific tend to be more sensitive to exchange rate shifts:
According to Travel Trends 2025, a weaker yen throughout much of 2024 played a significant role in boosting Japan’s inbound tourism, making the country a compelling destination for visitors in search of value. Notably, a 1% depreciation of the JPY against the RMB is associated with a 1.5% increase in tourists from the Chinese Mainland. However, visitors from New Zealand and the U.S. rose only around 0.2% in response to the same degree of depreciation relative to their currencies. In 2024, the number of Singaporean visitors to Japan hit record highs — thanks to a 40% rise in the Singapore Dollar (SGD) vs. Japanese Yen (JPY), even as airfare and hotels got pricier.
Turning to the U.S., MEI’s analysis shows that tourists from India, Singapore, South Korea, and Taiwan are particularly sensitive to exchange rate fluctuations, after accounting for other factors. Specifically, a 1% depreciation of the United States Dollar (USD) against their local currencies corresponds to an approximate 0.6–0.8% increase in the number of tourists traveling to the U.S. These findings, consistent with our earlier analysis of tourism to Japan, suggest that these travellers are more responsive to exchange rate movements when selecting outbound destinations.
The shifting sands of business travel:
Corporates today are limiting global travel in favor of regional trips. And while people are taking fewer business trips overall, the average duration is longer, suggesting efforts to stretch travel budgets. For example, U.S.-based travellers’ trips to Asia-Pacific increased from 8.8 days to 10.2 days.
Travel fraud demands a safer, smarter travel ecosystem:
According to MEI, fraud in popular tourist destinations spikes up to 28% during peak seasons. Common scams include inflated charges in restaurants and taxis, fake tour companies, and fraudulent property listings. To combat these, Mastercard employs fraud prevention technologies, including digital wallets and AI-driven systems, to protect travellers.
“This report is designed to offer a clearer view of how consumer behaviors are evolving—and what that means for tourism growth,” added Mann. “By turning data into actionable insights, the Mastercard Economics Institute aims to support the travel ecosystem in making smarter decisions that drive stronger tourism strategies, better traveller experiences, and more resilient economic outcomes.”
View the “Travel Trends 2025: Purpose-driven journeys”and other insights from MEI here.
