Despite Asia Pacific’s (APAC’s) difficult year, the region’s travel industry is soaring, according to new research by travel industry research authority Phocuswright. An expanding middle class continues to spend more on travel, continued economic development, and increases in travel supply are bolstering the Asia Pacific travel market.

A new Phocuswright report provides a deep analysis into 13 APAC countries and territories, market sizing, trends and projections for the world’s largest travel market.

Key findings include:

The APAC market rose 4% year over year in 2014, to US$340.4 billion — 30% of the global travel market.

But currency fluctuations dragged down growth in several markets, where local currency gains were much higher.

India will be APAC’s fastest-growing major travel market from 2013 to 2017, achieving a CAGR of 11%, in line with China. This is due to loosening of certain travel restrictions, investment in infrastructure supporting growth, and a continuously expanding middle class.

China will be the first travel market and country to have the majority of its online bookings through mobile. By 2016, 53% of online travel will come through mobile.

“More than anywhere else in the world, Asia Pacific’s — and in particular, China’s — travel growth is coming through mobile channels,” says Maggie Rauch, Phocuswright senior research analyst. “The region’s rapid rise and shift to mobile are fueling intense innovation and competition.”