16 July 2024 | 07:29 am GMT +7
  • Home
  • Contact Us
    • Tourism

      Where to invest?

      Tourism
      Feel the warmth

      Tourism has been one of the key growth sectors in ASEAN and has proven resilient amid economic challenges globally. After plummeting in 2021 due to travel restrictions, the number of tourist visits in the six largest ASEAN countries (Indonesia, Thailand, Singapore, Malaysia, Vietnam, and the Philippines) showed a significant increase. In 2022, the number of visits reached 39 million, and in 2023 it surged to 91 million. It is estimated that by 2024, the number of inbound tourist visits will return to pre-pandemic levels, approximately 120-130 million.1 Data from the Pacific Asia Travel Association (PATA) shows that in 2022, ASEAN was the fastest-growing destination region in the world, followed by South Asia.2

      The Southeast Asian tourism industry rebounded from the pandemic in 2022, contributing over 241 billion US dollars to GDP. Although it has not yet reached the levels of 2019, this recovery shows optimism and great potential for the future.3

      The sector has seen increased interest not only from usual markets in Europe and the Americas but also from Asia’s economic giants and emerging markets. ASEAN as a region emerged as a top source of tourists, Before the pandemic, Vietnam's tourism experienced an extraordinary surge, with the number of visitors rising from 8 million in 2015 to 18 million in 2019. This growth was driven by Chinese and South Korean tourists, with 5.8 million and 4.3 million visitors respectively in 2019.

       

      In 2023, Vietnam's inbound tourism showed significant recovery, reaching 70% of pre-pandemic levels with 12.6 million visitors. Although South Korean tourists returned in large numbers (3.6 million), the number of Chinese visitors was still well below the 2019 figures, with only 1.7 million.4

      The ASEAN edge

      Natural Resources. Investors significantly gain from the wealth of breathtaking topography, land formations, and water bodies in many ASEAN countries. Viet Nam and the Philippines, for instance, are home to two of the world’s seven new wonders of nature - Ha Long Bay and Puerto Princesa River.

      Culture, Culture, Culture! ASEAN’s rich culture as reflected in its wealth of ancient temples and churches, colonial houses and heritage sites, colourful festivals, and world-famous cuisines are tourists’ fascination and are every investor’s greatest assets.

      Access to TalentsASEAN peoples are known for their charm, hospitality, and, in many countries within the region, English-proficiency – workforce qualities that investors look for when establishing businesses in a service-driven sector such as tourism. Young and well-trained talents for hotels and restaurants, leisure and gaming, culture and the arts abound in ASEAN countries and are ready to fill human resources slots for investments in tourism.

      Medical TourismMedical tourism is slowly becoming a niche area in ASEAN for travellers who visit the region to receive treatment and undergo medical procedures. Despite the pandemic hitting global tourism, the Asia Pacific remained dominant in medical tourism (46% market share in 2020). Southeast Asia saw a sharp decline of 81% in 2020, from 143 million to 26.1 million visitors but is predicted to recover within 2-3 years. The demand is driven by lower costs, such as in Thailand, and rare medical procedures like stem cell therapy in developed countries. The U.S. is estimated to have 150,000-320,000 medical tourists annually with spending projected to reach USD 300 billion by 2026.

      Driven by these trends and the availability of cross-border healthcare services, ASEAN has become a popular medical tourism destination. Countries like Thailand, Malaysia, and Singapore have established themselves as leaders in complex medical procedures, while newcomers such as Vietnam and Indonesia are starting to build their specialties, including traditional medicine and the health tourism market.5

      Sustaining the growth

      After being severely impacted by the pandemic, the global tourism industry is showing encouraging signs of recovery. In 2024, the sector is projected to rebound strongly, surpassing pre-pandemic levels. The United Nations World Tourism Organization (UNWTO) forecasts a 2% growth compared to 2019 figures, indicating strong optimism about the future of tourism.
      Several key factors are driving this recovery:

      1. Revival of the Asian Market: Recovery in this region, particularly with the return of tourists from China, is a crucial growth driver. China, which has implemented visa-free policies for several countries, is set to once again become a major player in the global tourism industry.

      2. Increased Connectivity: Visa facilitation measures, such as unified tourist visa policies in the Middle East and Africa, along with increased flight capacities, are reopening travel routes and boosting tourist movements.

      3. Strong Demand: The strengthening of the US dollar and stable economic conditions in major source markets like the United States support tourism expenditure and increase travel interest.

      4. Major Events: The Summer Olympics in Paris and the expansion of the Schengen zone in Europe are attracting tourists and stimulating tourism activity in these regions.6

      Country initiatives

      Each ASEAN member state is committed to boost tourism and is working on different initiatives– policies, marketing, and infrastructure support- to achieve their respective tourism goals.

      Select Tourism-Related Initiatives

      ASEAN5

      Indonesia Embarking on several infrastructure projects to ease travel within the archipelago. These include the expansion of the Soekarno Hatta International Airport in Jakarta and the Bali Airport.
      Malaysia Targets to increase number of tourists attending conventions and exhibition, to add to the country’s impressive record of 25 million visitors in 2011.
      Philippines Boosting activities in leisure and gaming as investments in mega-casino complex start pouring. A US$4 billion mega-casino complex is set to open in Manila in 2013.
      Singapore Continues to develop the sector through increased investments in theme parks and resort casinos such as the Marina Bay area and the recently-opened Gardens by the Bay.
      Thailand Aims to improved connectivity with neighbouring countries in the Mekong Region through the new 2,000 kilometer R3A highway that will run from Kunming in China through Lao PDR and into Thailand.

       

       

       



    << PREVIOUS NEXT >>
  • Breathtaking temples and pagodas, long stretch of white sand beaches, colonial buildings and heritage houses, adventure-filled theme parks, perfect night-life, luscious cuisines, majestic mountains, and hospitable people.
    Feel the warmth. See the potentials. Invest in tourism.  

    SUCCESS STORIES

    AirAsia

    AirAsia

    AirAsia was launched in 2001 with the dream of making flying possible for everyone. Since then, AirAsia has swiftly risen to become the world’s best...

    > READ MORE