Issue #108 - 6 Takeaways from Q1 Tourism Reporting Season in Asia Pacific!

What did we learn from the first quarter of 2023 across the region?

Apr 22, 2023

Welcome (a day earlier than usual) to issue 108 of Asia Travel Re:Set.

It’s the Eid holidays, or Hari Raya, or Lebaran - and the fireworks are in full effect as I write tonight (Friday) in Kuala Lumpur.

Warm and peaceful wishes to everyone who is celebrating everywhere.

This week also sees the start of China’s 5-day May Golden Week. Q2 is in full swing (and Chinese air capacity is rising), but Q1 visitor reporting season is still ongoing…

So let’s follow that train of thought…

Thanks for checking-in.

- “IN THE NEWS”

- 6 Takeaways from Q1 Tourism Reporting Season in Asia Pacific!

What did we learn from the first quarter of 2023 across the region?

- Travel Takes Off in Indonesia

In conversation with Pauline Suharno, President of ASTINDO

- Exploring the Future of Adventure Travel in Asia & Beyond

In conversation with Shannon Stowell, CEO of the Adventure Travel Trade Association

“IN THE NEWS”

"Rethink absolutely everything. Whatever you learned about Chinese tourism before the pandemic, rethink it." Really enjoyed joining Qian Liu, MD for Greater China of The Economist Group and Steve Odland, CEO of The Conference Board on Talking Business on BBC News. And many thanks to presenter Tadhg Enright for a super-kind intro: “The man who literally wrote the book on Chinese tourism.”

Thanks to Andres Buenahora of Skift for interviewing me for this piece about Bali’s proposed response to ongoing bad tourism behaviour. Is it becoming “a self-fulfilling prophecy”?

Join Me on Notes…

You can now find me on Notes, a new space on Substack to share links, quotes & photos. I plan to use it for updates etc in between this twice-monthly newsletter.

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6 Takeaways from Q1 Tourism Reporting Season in Asia Pacific!

What did we learn from the first quarter of 2023? It’s all about the numbers.

1) Japan Nears 5 Million Arrivals

Japan welcomed 1.81 million visitors in March, bringing its Q1 total to 4.79 million. March represented -34.2% for total arrivals compared to the same 2019 period. This marks a big improvement from -44.3% in January. Still subdued arrivals from China, which was the #1 inbound market in March 2019 (691,279 visitors). In March 2023, it ranked #6, with 75,700. Watch that figure increase substantially in Q2. Vietnam (+31.3%) and Singapore (+15.2%) were the 2 regional markets to deliver more visitors to Japan in Q1 2023 than Q1 2019. Inbound and domestic demand is inflating hotel room rates, which were over 20% higher in March than pre-pandemic, reports Nikkei Asia.

2) Thailand Surpasses 6 Million Arrivals

Thailand - which this week (once again) delayed implementation of its THB300 Tourism Tax, which was due to commence in June. It will now be for a newly elected government to introduce or trash it - received 6.15 million arrivals in Q1. Watch that figure increase substantially in Q2. South East Asia’s most-visited nation is targeting 30 million visitors in 2023, according to the Thailand Tourism Council. Tomorrow, I’ll become an addition to its April stats.

3) Singapore Cracks Monthly 1 Million

Singapore surpassed 1 million monthly visitors in March for the first time since the pandemic began. This brings its Q1 arrivals to 2.91 million, with an average length of stay of 3.97 days. Indonesia is way out in front as the #1 inbound market in Q1, delivering almost double the arrivals of #2 ranked Malaysia. Australia placed #3. China ranked #9 with 124,560 arrivals. Watch that figure increase substantially in Q2. Of Singapore’s 14 top source markets in Q1, 5 are in South East Asia, 4 in North East Asia, 2 from Europe, plus Australia, US and India.

123 million. Indonesia is - by some margin - the most compelling travel market in South East Asia. The world's 4th-largest population is stimulating surging outbound activity. During the Lebaran holidays, 123 million domestic trips are forecast.

This week, I chatted with Jakarta-based Pauline Suharno, President of ASTINDO, the Indonesian Travel Agents Association. We covered a lot of ground, from the hot destinations for Indonesian travellers, visa challenges in certain destinations, and the impact of high air fares on destination choice.

With President Joko Widodo encouraging Indonesians to explore more of their own country, Pauline breaks down the large volume forecast for the Eid holidays. Plus, we get the latest on Indonesia’s 5 Super Priority Destinations.

Listen to Travel Takes Off in Indonesia, with Pauline Suharno, here:

🎧 Website 🎧 Spotify 🎧 Apple Podcasts

Or search for The South East Asia Travel Show on any podcast platform.

4) Australia Tops 4 Million Inbounds

Australia received a (provisional) 4.32 million arrivals in Q1 of 2023. In February, New Zealand, UK and US, were the top 3 inbound markets. Interesting to read that in 2022, “India reached 76% of its 2019 arrivals, the highest proportion of the top 10 (inbound) countries. China had the lowest rate of recovery, reaching just 6%.” Watch that figure increase substantially over the coming year.

5) Maldives Breaks Half a Million Visitors

Maldives welcomed 523,928 visitors in Q1, up from 431,524 in the same 2022 period. The Indian Ocean archipelago nations looks well on course to surpass its 2022 full-year arrivals of 1.675 million. Top 5 visitor source markets in Q1 were Russia, India, UK, Italy and Germany. China snuck into the top 10 at #8, with 17,689 visitors. Watch that figure increase substantially in Q2.

6) 2.2 Million Ride the China-Laos Train

Not a Q1 tourism figure, but fairly interesting nonetheless. Chinese media reports that 2.24 million passengers rode the China-Laos railway in the first 500 days since it opened in December 2021. Until last week, passengers were restricted to trips within Laos. Cross-border services from Kunming in China to the Lao capital Vientiane were inaugurated on 13 April. The full journey takes 10.5 hours.

And, yep, watch that figure increase substantially in Q2.

“Community and sustainable travel are so hard to get right, and so easy to get wrong. How do you bring people into a place and they enjoy it, and they’ll pay for it, and they won’t destroy it? Anybody who says they have a formula for that, is kidding themselves.”

This week, we explore the future of adventure, culture and nature-based travel with Shannon Stowell, CEO of the Adventure Travel Trade Association (ATTA). In September, ATTA will hold its Adventure Travel World Summit in Asia for the first time, in Hokkaido, Japan. We discuss the evolution of adventure travel – and explore the potential for expansion in South East Asia and Asia Pacific as tourists rethink travel experiences in places of unique natural and cultural diversity.

Listen to Exploring the Future of Adventure Travel, with Shannon Stowell, here: