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Chart of the Week

Chart: The Most Influential Countries in Asia

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Chart: The Most Influential Countries in Asia

Chart: The Most Influential Countries in Asia

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

They say the pen is mightier than the sword.

However, what they often fail to mention is that the pen is even mightier when it comes with massive amounts of leverage, influence, and power backing it up on every stroke.

How to Win Friends and Influence Countries

Every country is interested in gaining influence, and earlier this week we showed you an interactive infographic from the Lowy Institute that compared the strength of Asian powers to the United States.

Today’s chart uses the same data set, and it not only highlights the most influential countries in the Asian arena, but it also plots resources (i.e. the potential for power) of countries against their actual level of influence. The Lowy Institute calls this the “Power Gap” and it is intended to show whether a country is overperforming or underperforming in terms of fulfilling its expected level of influence on the region.

Here are descriptions of the two measures which are used for the Power Gap:

Resources: A score based on economic resources, military capability, resilience, and future trends, this measurement provides an assessment of a country’s material capabilities and robustness, which are requisite factors in the exercise of power.

Influence: A score based on diplomatic influence, economic relationships, defense networks, and cultural influence, this measurement is used to assess a country’s level of influence on other countries in the Asian arena.

Next, we’ll look at the actual numbers to see what we can learn.

Measuring Influence

Here’s how countries perform – as a reminder, this is based on the Asia Power Index, which is made up of countries in the Asia-Pacific region and the United States.

RankCountryOverall PowerExpected PowerPower Gap
#1United States85.084.80.2
#2China75.578.6-3.0
#3Japan42.131.111.0
#4India41.543.8-2.3
#5Russia33.339.7-6.4
#6Australia32.525.47.2
#7South Korea30.725.35.4
#8Singapore27.920.47.5
#9Malaysia20.616.73.9
#10Indonesia20.020.9-1.0
#11Thailand19.216.32.9
#12New Zealand18.917.11.8
#13Vietnam16.516.20.3
#14Pakistan15.118.2-3.1
#15Taiwan14.918.8-3.9
#16Philippines12.411.01.4
#17North Korea11.418.3-6.9
#18Bangladesh8.710.9-2.2
#19Brunei8.29.4-1.2
#20Myanmar7.69.4-1.8
#21Sri Lanka7.610.8-3.2
#22Cambodia6.16.7-0.6
#23Mongolia5.07.3-2.3
#24Laos4.86.1-1.3
#25Nepal3.15.6-2.5

In terms of absolute power, the U.S. and China top the list. Interestingly, Russia is only 5th place overall.

The “Power Gap” partially seems to explain this, as Russia appears to have the biggest gap between its expected power and its actual power. The country has the second worst power gap at -6.4.

Looking at the opposite end of the spectrum, it appears Japan, Singapore, and Australia are all punching above their weight in terms of influence. Meanwhile, Malaysia has the 5th best power gap, which may be unexpected for many.

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Chart of the Week

Visualizing the Countries Most Reliant on Tourism

With international travel grinding to a halt, here are the economies that have the most to lose from a lack of tourism.

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Visualizing the Countries Most Reliant on Tourism

Without a steady influx of tourism revenue, many countries could face severe economic damage.

As the global travel and tourism industry stalls, the spillover effects to global employment are wide-reaching. A total of 330 million jobs are supported by this industry around the world, and it contributes 10%, or $8.9 trillion to global GDP each year.

Today’s infographic uses data from the World Travel & Tourism Council, and it highlights the countries that depend the most on the travel and tourism industry according to employment—quantifying the scale that the industry contributes to the health of the global economy.

Ground Control

Worldwide, 44 countries rely on the travel and tourism industry for more than 15% of their total share of employment. Unsurprisingly, many of the countries suffering the most economic damage are island nations.

At the same time, data reveals the extent to which certain larger nations rely on tourism. In New Zealand, for example, 479,000 jobs are generated by the travel and tourism industry, while in Cambodia tourism contributes to 2.4 million jobs.

RankCountryT&T Share of Jobs (2019)T&T Jobs (2019)Population
1Antigua & Barbuda91%33,80097,900
2Aruba84%35,000106,800
3St. Lucia78%62,900183,600
4US Virgin Islands69%28,800104,400
5Macau66%253,700649,300
6Maldives60%155,600540,500
7St. Kitts & Nevis59%14,10053,200
8British Virgin Islands54%5,50030,200
9Bahamas52%103,900393,200
10Anguilla51%3,80015,000
11St. Vincent & the Grenadines45%19,900110,900
12Seychelles44%20,60098,300
13Grenada43%24,300112,500
14Former Netherlands Antilles41%25,70026,200
15Belize39%64,800397,600
16Cape Verde39%98,300556,000
17Dominica39%13,60072,000
18Vanuatu36%29,000307,100
19Barbados33%44,900287,400
20Cayman Islands33%12,30065,700
21Jamaica33%406,1002,961,000
22Montenegro33%66,900628,100
23Georgia28%488,2003,989,000
24Cambodia26%2,371,10016,719,000
25Fiji26%90,700896,400
26Croatia25%383,4004,105,000
27Philippines24%10,237,700109,600,000
28Sao Tome and Principe23%14,500219,200
29Bermuda23%7,80062,300
30Albania22%254,3002,880,000
31Iceland22%44,100341,200
32Greece22%846,20010,420,000
33Thailand21%8,054,60069,800,000
34Malta21%52,800441,500
35New Zealand20%479,4004,822,000
36Lebanon19%434,2006,825,000
37Mauritius19%104,2001,272,000
38Portugal19%902,40010,197,000
39Kiribati18%6,600119,000
40Gambia18%129,6002,417,000
41Jordan18%254,70010,200,000
42Dominican Republic17%810,80010,848,000
43Uruguay16%262,5003,474,000
44Namibia15%114,6002,541,000

Croatia, another tourist hotspot, is hoping to reopen in time for peak season—the country generated tourism revenues of $13B in 2019. With a population of over 4 million, travel and tourism contributes to 25% of its workforce.

How the 20 Largest Economies Stack Up

Tourist-centric countries remain the hardest hit from global travel bans, but the world’s biggest economies are also feeling the impact.

In Spain, tourism ranks as the third highest contributor to its economy. If lockdowns remain in place until September, it is projected to lose $68 billion (€62 billion) in revenues.

RankCountryTravel and Tourism, Contribution to GDP
1Mexico15.5%
2Spain14.3%
3Italy13.0%
4Turkey11.3%
5China11.3%
6Australia10.8%
7Saudi Arabia9.5%
8Germany9.1%
9United Kingdom9.0%
10U.S.8.6%
11France8.5%
12Brazil7.7%
13Switzerland7.6%
14Japan7.0%
15India6.8%
16Canada6.3%
17Netherlands5.7%
18Indonesia5.7%
19Russia5.0%
20South Korea2.8%

On the other hand, South Korea is impacted the least: just 2.8% of its GDP is reliant on tourism.

Travel, Interrupted

Which countries earn the most from the travel and tourism industry in absolute dollar terms?

Topping the list was the U.S., with tourism contributing over $1.8 trillion to its economy, or 8.6% of its GDP in 2019. The U.S. remains a global epicenter for COVID-19 cases, and details remain unconfirmed if the country will reopen to visitors before summer.

Travel and tourism contribution to GDP in absolute terms

Meanwhile, the contribution of travel and tourism to China’s economy has more than doubled over the last decade, approaching $1.6 trillion. To help bolster economic activity, China and South Korea have eased restrictions by establishing a travel corridor.

As countries slowly reopen, other travel bubbles are beginning to make headway. For example, Estonia, Latvia, and Lithuania have eased travel restrictions by creating an established travel zone. Australia and New Zealand have a similar arrangement on the horizon. These travel bubbles allow citizens from each country to travel within a given zone.

Of course, COVID-19 will have a lasting impact on employment and global economic activity with inconceivable outcomes. When the dust finally settles, could global tourism face a reckoning?

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Chart of the Week

Zoom is Now Worth More Than the World’s 7 Biggest Airlines

Zoom benefits from the COVID-19 virtual transition—but other industries aren’t as lucky. The app is now more valuable than the world’s seven largest airlines.

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zoom vs major airlines valuation

Zoom Is Now Worth More Than The 7 Biggest Airlines

Amid the COVID-19 pandemic, many people have transitioned to working—and socializing—from home. If these trends become the new normal, certain companies may be in for a big payoff.

Popular video conferencing company, Zoom Communications, is a prime example of an organization benefiting from this transition. Today’s graphic, inspired by Lennart Dobravsky at Lufthansa Innovation Hub, is a dramatic look at how much Zoom’s valuation has shot up during this unusual period in history.

The Zoom Boom, in Perspective

As of May 15, 2020, Zoom’s market capitalization has skyrocketed to $48.8 billion, despite posting revenues of only $623 million over the past year.

What separates Zoom from its competition, and what’s led to the app’s massive surge in mainstream business culture?

zoom-search-interest

Industry analysts say that business users have been drawn to the app because of its easy-to-use interface and user experience, as well as the ability to support up to 100 participants at a time. The app has also blown up among educators for use in online learning, after CEO Eric Yuan took extra steps to ensure K-12 schools could use the platform for free.

Zoom meeting participants have skyrocketed in past months, going from 10 million in December 2019 to a whopping 300 million as of April 2020.

Zoom vs. Airlines stock chart

The Airline Decline

The airline industry has been on the opposite end of fortune, suffering an unprecedented plummet in demand as international restrictions have shuttered airports:

The world’s top airlines by revenue have fallen in total value by 62% since the end of January:

AirlineMarket Cap Jan 31, 2020 Market Cap May 15, 2020
Southwest Airlines$28.440B$14.04B
Delta$35.680B$12.30B
United$18.790B$5.867B
International Airlines Group$14.760B$4.111B
Lufthansa$7.460B$3.873B
American$11.490B$3.886B
Air France$4.681B$2.137B
Total Market Cap$121.301B$46.214B

Source: YCharts. All market capitalizations listed as of May 15, 2020.

With countries scrambling to contain the spread of COVID-19, many airlines have cut travel capacity, laid off workers, and chopped executive pay to try and stay afloat.

If and when regular air travel will return remains a major question mark, and even patient investors such as Warren Buffett have pulled out from airline stocks.

Airline% Change in Total Returns (Jan 31-May 15, 2020)
United-72.91%
International Airlines Group-72.16%
American-65.76%
Delta-65.39%
Air France-54.34%
Southwest Airlines-56.35%
Lufthansa-48.08%

Source: YCharts, as of May 15, 2020.

The world has changed for the airlines. The future is much less clear to me about how the business will turn out.

—Warren Buffett

What Does the Future Hold?

Zoom’s recent success is a product of its circumstances, but will it last? That’s a question on the mind of many investors and pundits ahead of the company’s Q1 results to be released in June.

It hasn’t been all smooth-sailing for the company—a spate of “Zoom Bombing” incidents, where uninvited people hijacked meetings, brought the app’s security measures under scrutiny. However, the company remained resilient, swiftly providing support to combat the problem.

Meanwhile, as many parts of the world begin taking measures to restart economic activity, airlines could see a cautious return to the skies—although any such recovery will surely be a “slow, long ascent”.

Correction: Changed the graphics to reflect 300 million daily active “meeting participants” as opposed to daily active users.

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