First half of 2026 certainly tested hospitality industry, but intra-Asian travel continues to outperform: Alan Watts, Hilton

Despite global geopolitical tensions and the impact of war, the hospitality industry in the Asia Pacific region has demonstrated significant resilience during the first half of 2026. Alan Watts, President of Asia Pacific at Hilton, notes that intra-Asian travel is currently exceeding performance expectations, driven by robust demand for key regional destinations. This trend is particularly important for the Travel & Hospitality sector as it highlights a shift toward regional travel patterns and the growing influence of both local and US-based international travelers.

Alan Watts, President – Asia Pacific at Hilton, reports that while the first half of 2026 has been a testing period for the global hospitality sector due to the effects of war, the Asia Pacific region remains a bright spot. Intra-Asian travel is outperforming initial forecasts, with destinations like Korea, Indonesia, Thailand, and Vietnam seeing strong demand. Watts highlights that international travelers, specifically those from within the Asia Pacific region and the United States, are making up an increasing share of these bookings, underscoring a resilient recovery in cross-border movement.

In South Asia, infrastructure and tourism development are receiving significant investment and attention. Tourism Minister Shambhuraj Desai announced an initial allocation of ₹1 crore for the first phase of a grand memorial dedicated to Veer Jivaji Mahale near Pratapgad Fort, a project backed by Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde. Simultaneously, GMR Airports has unveiled a multi-phase modernization plan for Nagpur’s Dr. Babasaheb Ambedkar International Airport, with ₹300 crore earmarked for Phase I to upgrade the facility's capacity and services.

Connectivity and administrative requirements are also evolving for travelers in the region. Emirates is set to introduce its A380 aircraft to Delhi starting in October, while expanding its Premium Economy cabin to six Indian cities to meet premium travel demand. On the regulatory front, Ritu Varma of VisitBritain emphasized that all UK visa holders must now create a UKVI account and link their visas, regardless of the visa's duration. Additionally, Azerbaijan is strengthening its presence in the Indian market, with OA Globe DMC and various hospitality brands hosting networking events in Mumbai and Ahmedabad to promote leisure, MICE, and wedding tourism in Baku, Shahdag, and Sheki.