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International arrivals to ASEAN to reach 142 million in 2024

Global arrivals to the Association of Southeast Asian Nations (ASEAN) are expected to grow from 136.9 million in 2019 to 142 million in 2024, driven by the region’s rich heritage and natural attractions, improved tourist facilities, affordable connectivity, rising consumer class and geographic proximity to China and India, forecasts GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘ASEAN Destination Tourism Insight Report including International Arrivals, Domestic Trips, Key Source / Origin Markets, Trends, Tourist Profiles, Spend Analysis, Key Infrastructure Projects and Attractions, Risks and Future Opportunities, 2022 Update’ reveals that the ASEAN region boomed as a destination prior to the COVID-19 pandemic. Inbound arrivals to the 10 ASEAN member countries grew at a compound annual growth rate (CAGR) of 7.7% between 2016 and 2019.

FILE PHOTO: Russian tourists sit at the beach in Phuket, Thailand March 8, 2022. REUTERS/Jorge Silva

The ten members of the Association of Southeast Asian Nations (ASEAN) are Thailand, Malaysia, Vietnam, Indonesia, Singapore, Cambodia, Philippines, Laos, Myanmar, and Brunei. The COVID-19 pandemic hit the Asia-Pacific (APAC) region first and exposed the high dependency of the ASEAN member countries’ tourism economies on Chinese tourists. To facilitate travel in the ASEAN region, an electronic visa system might be built for all ASEAN countries. This will help in seamless border control and a dedicated ASEAN immigration lane at all international airports of member countries.

Hannah Free, Travel and Tourism Analyst at GlobalData, comments: “Plummeting traveller confidence, coupled with some of the world’s strictest entry requirements saw tourism numbers shrink to mere fractions of what they were in pre-pandemic times. GlobalData figures reveal that inbound flows to the ASEAN region declined by 78.8% YoY to 29 million in 2020.”

Many tourism-dependent economies and businesses in the ASEAN member states were particularly left vulnerable due to an over-dependence on Chinese tourism. China’s rapidly swelling middle class sparked a boom in overseas trips, with many attracted to nearby ASEAN countries.

In 2014, China accounted for just 13% of arrivals to the ASEAN bloc. By 2019, this had grown to 23%. However, the ASEAN region’s ability to achieve international arrival levels like that of 2019, prior to the COVID-19 pandemic, will be undermined the longer China adheres to its zero COVID-19 strategy.

Solo-travelers, groups, families and couples are all attracted to the ASEAN region for its natural and cultural tourism, diverse activities on offer and often affordable travel experience. Nevertheless, couples accounted for the largest share of inbound travelers in 2021.

Leisure is the leading inbound travel purpose to the ASEAN region as well as the top inbound travel purpose for all the individual ASEAN member countries, apart from Myanmar. Business travel is the second leading inbound travel purpose. International arrivals to the ASEAN region arrived primarily by air.

The key types of holidays in the ASEAN destination tourism market are sun and beach holidays, eco holidays, and gastronomy holidays. Thailand, the Philippines, and Indonesia have all become well-known beach destinations, with offerings for both high-end and budget travelers. There is also latent potential in member countries such as Brunei and Myanmar to attract sun and beach tourism. Within the wide spectrum of tourism segment, ecotourism has risen in popularity, with an increase in nature-bound activities across the ASEAN region.

Tourism authorities and brands have taken note of this trend, and eco resorts and hotels can now be found across all ten ASEAN member countries. ASEAN member states are aiming to present their countries as a collective hub for food tourism. The potential for growth is immense given the support and resources channeled into this sector by both, the public and private sectors.

Free concludes: “As the member countries go through phased re-openings and travel begins to resume worldwide, GlobalData forecasts the inbound flows to grow at a CAGR of 10.7% between 2022 and 2024, to reach 142 million international arrivals in 2024. Increasing integration and cooperation between the 10 member states in tourism promotion and development spells for a brighter future for ASEAN economic recovery.”

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