Issue #117 - 5 Travel & Tourism Talking Points You May Have Missed This Week in Asia Pacific!
A Macao revival, Trip.com firecrackers and big tourism decisions in Thailand.
Welcome to issue 117 of Asia Travel Re:Set.
So, we are two-thirds through 2023.
With China’s outbound recovery gathering momentum, all eyes in the region are on October Golden Week. Then, the end-of-year peak season.
So let’s follow that train of thought…
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- “IN THE NEWS”
- 5 Travel & Tourism Talking Points You May Have Missed This Week!
A Macao revival, Trip.com firecrackers and big tourism decisions in Thailand.
- Top 8 Travel & Tourism Talking Points in South East Asia in August 2023
Thailand’s tearaway tourism numbers leave its neighbours trailing far behind.
“IN THE NEWS”
On Monday, I joined CNA's Asia First show to discuss Korean Air's weight data capture programme with Steve Lai & Julie Yoo. What does it all mean? How are precision data and marginal gains transforming travel economics? Plus, what is the role of governments and regulators, and how do carbon emissions fit into the frame?
“Phocuswright’s China Travel Market Report 2022-2026 provides a comprehensive view of the China travel market, including detailed market sizing and projections, distribution trends, analysis of major travel segments and key developments.” This was a challenging but very enjoyable project. Just published, it’s packed with up-to-date information and insights about the world’s most talked-about travel market.
On 14 September (7pm), I’ll be joining a panel at the Foreign Correspondents Club of Thailand in Bangkok to discuss: Make or Break? What the Slow Return of Chinese Tourists Means to the Tourism Industry in Thailand. Moderated by Vincent Vichit-Vadakan, it will be live-streamed on the FCCT Facebook and YouTube channels.
5 Travel & Tourism Talking Points You May Have Missed This Week!
1) Tongcheng Sets Up Trip.com Fireworks
On Tuesday, Trip.com (Ctrip) - China’s largest OTA - will announce its most eagerly awaited half-year results since it listed on the NASDAQ in 2003. Expect firecrackers.
Trip.com’s net revenue in Q1 2023 exceeded Q1 2019. This was attributed to “a full recovery of domestic air business and strong recovery of outbound air travel.” When the Q1 earnings were tabulated, in April, Chinese outbound air capacity was “around 30%” of the 2019 level. It’s now at around 50%, according to OAG data.
Less fanfare greeted last week’s interim results by fellow OTA Tongcheng, which is part-owned by Ctrip. It reported net revenue of RMB5,452 million in H1 of 2023, and its core businesses (transport and accommodation) delivered “record high revenues.” For reference, its full-year 2022 revenue was RMB6,585 million.
“2023 marks a new chapter for China’s travel industry,” said Ma Heping, CEO of Tongcheng. Yup.
2) Macao on the Comeback Trail
Macao is reviving. Gross gaming revenue hit MOP17.2 billion in August, the highest monthly total since January 2020, reports Asia Gaming Brief. While casino revenue is increasing, a slow start to 2023 pegs January-August at 39% of the same 2019 period.
Macao welcomed 14.4 million visitors in the first 7 months of 2023. Average daily inbound tourists in July (during the school holidays in mainland China) “recovered to 78.2% of the same period in 2019,” says the Macao Government Tourism Office. Hotel average occupancy was 92% in July, another post-pandemic record.
3) Big Tourism Decisions in Thailand
Thailand is tearing up South East Asian tourism. With approx 17.6 million arrivals in the first 8 months of 2023, it’s tracking a 28 million full-year target.
Three months after the General Election, a new government is in situ. New PM Sretta Thavisin took a debut official trip to Phuket and Phang-nga, where he made pledges to support tourism. These include extending visas from 30 to 90 days for visitors from selected nations, addressing visa-exemption for Chinese and Indian tourists, expanding Phuket airport and (maybe) building a new airport in Phang-nga.
His government has also pledged not to raise VAT, from its 7% level, and promises to get a regulatory grip on cannabis, which was decriminalised in June 2022 although the legal status of cannabis-related businesses remains opaque.
And what about casino tourism? Will it push the legalisation of resort gaming soon?
4) Bhutan & Tourism Pricing in ASEAN
Tourism pricing is a hot topic in South East Asia. Bali will introduce an IDR150,000 tourism fee in February 2024, and a decision is pending on Thailand’s postponed THB300 tourism fee.
The purpose of both fees is opaque compared to Bhutan. Last September, Bhutan described itself as “the first carbon-negative country in the world.” It launched a USD200 per night Sustainable Development Fee, which is “a daily levy paid by visitors to support Bhutan’s development.” For the next 4 years, that fee is halved to USD100, as part of “incentives and policy measures to boost the tourism sector.”
How will this influence policy thinking in South East Asia? So far, governments have been reticent to adopt tourism pricing models that match stated commitments to sustainable and "high-quality" tourism.
5) Statistical Quirks in Cambodia
2023 is teaching us to tread cautiously regarding tourism statistics in South East Asia. Cambodia is a good example. It received 3.03 million visitors in the first 7 months of 2023, up 308% from the same 2022 period.
However, as my co-host Hannah Pearson noted on The South East Asia Travel Show, “Cambodia appears to be one of the countries recovering fastest compared to 2019. But if you talk to tour operators, they are really struggling. There's been a huge shift from air passengers to land visitors from Vietnam and Thailand - and overland visitors come for a very different purpose to travellers flying in.”
Aviation analyst Brendan Sobie, who was in Siem Reap last week, notes a still-slow air recovery from China. “Siem Reap-China seat capacity is only 4% recovered. China accounted for 35% of Siem Reap's total international seat capacity in 2Q2019 and 29% in 3Q2019 but only 5% in 2Q2023 and 3Q2023,” he writes.
Beneath the headline stats linger plenty of residual Covid quirks.
Top 8 Travel & Tourism Talking Points in South East Asia in August 2023
The summer holiday season is over and eyes are turning to the October Golden Week. On The South East Asia Travel Show, we assess 8 top talking points in August from Thailand, Cambodia, Vietnam, Singapore, Japan & Bhutan.
Hot topics include ASEAN’s cross-border payments scheme, and a vow by Thailand’s new Prime Minister to prioritise tourism. Plus, will ANA’s new LCC, Air Japan, create more travel to or from Thailand when it launches in early 2024?
Listen to Top 8 Travel & Tourism Talking Points in South East Asia in August 2023, here:
🎧 Spotify 🎧 Apple Podcasts 🎧 Website
Or search for The South East Asia Travel Show on any podcast platform
And, that’s a wrap for Issue 117.
The Asia Travel Re:Set newsletter will be back on 17 September.
Until then, find me at LinkedIn and The South East Asia Travel Show.
Happy travels,
Gary