Issue #148 - Easing Visa Access for Tourists Dominates H1 in China & ASEAN
Removing visas is a key narrative for travel between China & South East Asia
Welcome to issue 148 of Asia Travel Re:Set from Kota Kinabalu in sunny Sabah - where Chinese family tourists are back in strong numbers.
So, the first half of 2024 is complete. Now watch a frantic scramble ensue over the next 6 months as countries try to get close to 2019 metrics.
Whereas antipathy towards high-volume tourism is rife in Europe, Asia Pacific is playing the numbers game. And the governmental tool of choice is visa-free access.
So, let’s follow that train of thought…
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- “IN THE NEWS”
- Easing Visa Access for Tourists Dominates H1 in China & ASEAN
Removing visas is a key narrative for travel between China & South East Asia.
- South East Asia’s Top 8 Tourism Talking Points in June 2024
From Bangkok-Vientiane by Train to KL-Nairobi by Plane, and more.
“IN THE NEWS”
From Bali to Mt Fuji to Jeju, the return of high-volume tourism is bringing negative headlines. National and local governments are seeking regulatory solutions. I joined Andrea Heng and Hairianto Diman on CNA938 in Singapore to discuss over-tourism, tourism taxes & anti-social tourist behaviour. Listen to Tourists Behaving Badly: Why Holidaymakers are Gaining a Bad Reputation Overseas, HERE.
Easing Visa Access for Tourists Dominates H1 in China & ASEAN
More flights, more routes, better prices: Tick. Inbound market diversification: Tick. Chinese tourists returning in larger numbers: Tick. Targeting Indian source markets: Tick. Debates about tourism taxes and (in Japan) differential pricing: Tick. Governments becoming more emboldened in their visitor arrivals forecasting: Tick.
These are signature features of Asia Pacific’s travel landscape so far in 2024.
January-June was the “most normalised” period of travel the region has experienced since 2019. Yes, caveats apply, but the long pandemic shadow is weakening, although it will remain relevant for travel and tourism patterns into 2025.
But 2024’s major talking point is visas. Well, actually, the easing of visa requirements.
China to South East Asia & Vice Versa
Issue #130 (24 February) was titled Visa-free Travel is the Hottest Topic in Asia-Pacific Tourism! I noted:
“As South East Asian governments publish their Lunar New Year travel stats, visa-free travel is becoming a political piñata. It is viewed as a prize conduit to bolster Chinese visitor flows after 3 years of Covid isolation, and a slow recovery in 2023.”
Those governments were Thailand, Singapore and Malaysia, which - from September 2023 - had signed bilateral accords with China for visa-free travel in both directions.
China, of course, surprised everyone on 24 November 2023, by announcing visa-free entry for stays of up to 15 days for citizens of France, Germany, Italy, Netherlands, Spain and Malaysia. It has subsequently implemented bilateral (7 nations) and unilateral (15 nations) visa-free access for a clutch of hand-picked countries.
Recently these include Australia and New Zealand (which coincided with Premier Li Qiang’s official visit to both countries). Plus, Hainan Island provides 30-day visa-free stays for citizens of 59 countries, and various transit stay visa exemptions are in place.
It’s Not All About FITs
Outbound Chinese tourists had grown accustomed to preferential visa policies in the years leading up to 2020. Although a fairly basic tool when viewed in isolation, leveraging visa-free access with smart marketing can derive various benefits.
Removing the need to apply for a visa saves time, enabling tourists to make quicker destination decisions. It also reduces the cost. This is particularly important for intra-regional travel, which is often characterised by short stays by value-conscious tourists.
Eliminating visa applications has also reactivated group travel bookings - an often overlooked, and under-analysed, segment in Asian tourism.
The Chinese Airlines Context
Late last year, China’s government recognised the value of visa-free access for a tenet of tourism it previously downplayed: inbound travel. The spin machine has been active in promoting the success of attracting foreign visitors to China through this more liberal entry policy. It also serves as an incentive for airlines.
Through 2023, Chinese airlines deployed a large part of their fleets on domestic routes. Various reasons explain this. One overlooked factor is Chinese carriers knew that outbound demand was recovering slowly - and inbound visitation was low. Bilateral visa-free policies were a carrot for airlines to expand their outbound networks with nations that might welcome more Chinese tourists and deliver more inbound traffic to China. Singapore, Malaysia and Thailand were obvious targets.
8 Million Chinese Arrivals in 2024?
For Thailand - the most-visited nation by Chinese tourists in 2019 - visa-free access opens more airways to achieve its 2024 target of 8 million Chinese visitors. Visa-free access has enticed airlines to fly to Thailand from 40 Chinese cities. This may increase when China’s winter/spring flight schedules are released. The Tourism Authority of Thailand expects 1 million Chinese visitors monthly from October-December.
Beyond China, a raft of new “visa facilitation measures” were announced by Thailand on 28 May to “stimulate the economy and tourism.” These include increasing the length of a visa-free stay to 60 days “for passport holders from 93 countries/regions”.
For China, the visa-free structural benefits complement the arrival stats, says Yang Jinsong, Head of the China Tourism Academy's Institute of International Studies:
“This will not only stimulate the domestic tourism market, but also enhance service quality, more effectively develop niche tourism markets, and improve related facilities and public services.”
Is an ASEAN Tourism Visa Realistic?
On 1 July, Laos joined the visa-free party. The Ministry of Information, Culture & Tourism introduced visa-free entry for Chinese tourists booking through travel agencies. It is also offering multiple-entry 60-day visas for visitors from 21 countries.
Meanwhile, an ASEAN tourism visitor visa proposed by Thailand to include 6 states of South East Asia - Thailand, Cambodia, Laos, Vietnam, Myanmar and Malaysia, but excluding Singapore, Indonesia. Philippines and Brunei - is a topic of conjecture. The ability to travel freely across borders would appeal to longer stay visitors, but the proposal must jump some high bureaucratic barriers.
As William J. Jones, Assistant Professor at Mahidol University International College, accurately noted in this Commentary:
“While the common visa program is an interesting idea, there are a number of potential sticking points. ASEAN states have 3 primary concerns regarding tourism and immigration more broadly — visa overstays, illegal work and security.”
He adds ”ASEAN does not have the greatest track record when it comes to implementing deep integrative initiatives with long-term vision.”
Don’t hold your breath.
South East Asia’s Top 8 Tourism Talking Points in June 2024
This week’s The South East Asia Travel Show rounds up June’s top talking points. We discuss a new round of visa easing, the 1st Gastronomy Tourism Forum for Asia Pacific, a boom for Thai film tourism and a new cross-border rail service. Plus, why is Malaysia's MM2H visa making news? And can Boracay attract more Muslim tourists?
Listen to “Bangkok-Vientiane by Train, KL-Nairobi by Plane & Gastronomy Tourism in Cebu: June 2024 in Review,” here:
🎧 Spotify
Or search for The South East Asia Travel Show on any podcast platform
And, that’s a wrap for issue 148.
The Asia Travel Re:Set newsletter will be back next Sunday.
Until then, find me at LinkedIn, The South East Asia Travel Show and High-Yield Tourism.
Happy travels,
Gary