Consumers to keep travel budget tight

THE tourism industry faces another tough year as holiday-makers around the world remain wary about splashing out on trips abroad despite a recent economic uptick, a survey showed yesterday.

More than 40 percent of consumers worldwide plan to travel less next year, and one in three wants to spend less on board and lodging, The Boston Consulting Group said in an industry survey. “The fact that the economy is broadly recovering does not mean we are out of the woods yet,” said Martin Koehler, the global head of BCG's travel and tourism sector.

Official data showed last week the euro zone shook off recession in the third quarter. Economists said the comeback appeared to be mostly driven by exports, and part of that was surely due to car sales lifted by scrappage subsidies.

Consumers were still cautious about spending as concern about looming job losses remained, Koehler added. This particularly affected the luxury goods, catering, fashion accessories and tourism industry, the survey showed.

Cutting back the holiday budget made a particular difference for low-income families.