Tourists splurge $372 million through Visa cards in India

India emerges as the fastest growing market in terms of tourist spending in the region.

28 March 2006
SINGAPORE

Card payment firm Visa said on Monday that tourists to India splurged $372 million through their Visa cards in the fourth quarter of 2005.

This is a 25 per cent increase compared to the same period the previous year.

This also spurs India as the fastest-growing market in terms of tourist spending in Asia-Pacific, Visa said in a statement released on Monday.

Visa has also put China as the second fastest-growing market in the Asia-Pacific region.

China witnessed a tourist spending estimated at $784 million in the fourth quarter, which is up 23 percent from the same period the previous year.


Visa also said in the statement that the highest average spending per transaction in Asia-Pacific region was in China and India.

In China, the tourist spending had an average of $204 per transaction, while the figure for India was $191 per transaction. Visa put the regional average at $156 per transaction.

India’s booming economy, higher incomes and rock-bottom air prices are expected to trigger the tourism demand, which is expected to grow 8.8 percent per annum in the next decade. This is an estimate of the World Travel & Tourism Council.

The total spending through Visa cards by tourists to and within the Asia-Pacific region was $6.5 billion in the period between October and December.

This is an increase of 12 per cent from the same period the previous a year, which saw a spending of $5.8 billion.

Visa said Australia, China, Thailand, Hong Kong and Japan were the top destinations in the Asia-Pacific region where tourist spent more money through Visa cards.

Visa listed travelers from United States, Britain, Japan, Australia and Hong Kong as the biggest spenders in the Asia-Pacific. These tourists accounted for 54 percent of total spending on Visa cards, the statement said.

International tourists made over 42 million Visa card transactions in Asia-Pacific in the fourth quarter.

They withdrew $1.4 billion in cash at automated teller machines and over-the-counter outlets, according to Visa.

Visa estimated that while around 26% of the card spending was on retail goods, eleven per cent was for transportation and 21 percent on accommodation.