We are seeing a new trend of travel to destinations called ‘emerging markets’. These destinations are considered unique, untouched, and provide a way to travel on a budget. If you like traveling, chances are you may have even visited several of them without knowing it! But what is an emerging market, exactly, and what makes them possess these appealing attributes to travelers?
What is an Emerging Market?
An emerging market is a country that is experiencing high growth but with high risk. For businesses, this means that these economies are growing and that investment put into the country will return quickly. Although emerging markets constitute approximately 80% of the global population, and represent about 20% of the world’s economies (Heakal, 2015), they are expected to grow three times faster than developed ones by 2020. For commerce and politics, these markets are very important.
This growth is also accompanied by an increase in tourism infrastructure. As markets become more stable, safe, and easy to access, people will travel there. And in fact, emerging markets are now being traveled to at a higher rate than traditional tourism markets. This is expected to continue growing.
What makes an emerging market an emerging market?
An emerging markets’ high growth is typically accompanied by the following events:
1. An increase in GDP
GDP, or gross domestic product, is a term representing the dollar value of good and services produced over a particular time. It is often used to represent and gauge the health and size of an economy. Emerging markets GDP growth rate is much faster than that of developed countries. Increase in GDP attracts investment. Investment establishes new businesses, sparking the economy.
2. Increased educated labor pools
With more investment in a country’s business environment, more jobs open up. The need for skilled workers increases. Global companies offer training. With a job in mind, citizens go to school, build their skill sets and contribute to a growing labor pool.
3. A new and growing middle class
With an increase in employment opportunities and education, the middle class grows. With a new middle class, comes a new market of consumers too, sparking the economy. Mckinsey Global Institute predicts the annual consumption of emerging markets to rise from $12 trillion to $30 trillion by 2025. With more consumption, companies are able to prosper and grow.
4. Reduced Poverty
With opportunities to better one’s life, comes opportunities to move out of poverty. Emerging markets fast growth allows locals to find work, education, and more opportunities than their less developed neighbors.
Traveling to an Emerging Market
Due to the nature of an emerging market, traveling to one is a new experience on its own. Depending on the size of the market, travelers may find themselves traveling in what feels like untouched land. This is due to a new or growing investment in a tourism infrastructure. Emerging markets are generally less expensive to travel in as well – basic living expenses like food or accommodation tend to be cheap for our standards. In consequence employment opportunities, poverty decreases, safety goes up, while crime and violence decreases.
What are the Emerging Markets of the World?
According to the Emerging Markets Index, the top 65 Emerging Markets are:
Argentina | Brazil | Bulgaria | Chile | China | Colombia | Dominican Republic | Ecuador | Egypt | Hungary | India | Indonesia | Kenya | Lebanon | Malaysia | Mexico | Morocco | Pakistan | Peru | Philippines | Poland | Romania | Russia | Senegal | South Africa | Thailand | Tunisia | Turkey | Ukraine | Uruguay | Venezuela | Vietnam