Issue #156: This Week's Top 5 Travel & Tourism Talking Points in Asia Pacific!
Hot travel takes from China, Japan, Thailand, Australia and more.
Welcome to Issue 156 of Asia Travel Re:Set.
OK, soooo… I’ve been trailing a new format for this newsletter “by mid-September.”
My bad. This is being pushed back until January 2025. It will happen, I assure you - but the day-job workload is pretty heavy at the moment.
Meanwhile, there is plenty to talk about as Asia Pacific steams towards Q4 of 2024.
So let’s follow that train of thought.
Thanks for checking in.
On Tuesday, I chatted with Steve Lai on BBC News about the travel impacts of Typhoon Bebinca, which brought “significant damage” to Shanghai on the eve of Mid-Autumn Festival - and then dumped heavy rains on central China and Vietnam.
We also discussed Typhoon Yagi, the grim impacts of which endure. After leaving a destructive path 2 weeks ago in the Philippines, Yagi caused severe floods in Hainan Island, Vietnam (excellent update here by Vietnam Weekly), Myanmar and Laos.
The ferocity and frequency of the 2024 storm season (so far) means that inland areas are severely impacted long after a storm reaches land. I read somewhere that the destructive power of Yagi was a “warning to us all”. That’s a phrase we hear too often. It is a catastrophic lived reality for many communities across the region.
India’s outbound growth momentum is building. Matching supply with changing demand patterns will be fascinating to watch as "middle-class travel horizons broaden and destination choices diversify." Thanks to Biman Mukherji for including my comments in this article about the findings of a new MakeMyTrip report for SCMP.
The report decodes the latest outbound trends, booking behaviours and destination preferences among Indian travellers for business and leisure. It reveals that some "favourites" and "constants" prevail, while adventurous travellers are more confident to explore unfamiliar "new horizons" and splurge on "villas and homestays".
Read: India’s middle class reshaping Asia tourism as sector pivots to next big market
This Week's Top 5 Travel & Tourism Talking Points in Asia Pacific!
1) Context in Japan’s Tourism Tax Debate
Let’s begin in Japan - and the Paragraph of the Week in an article about tackling the impacts of over-tourism in Kyoto.
“[A tourism tax] would be difficult to apply in Kyoto. How would it be possible to impose a fee on people simply passing through and admiring the city? The conditions in Japan’s ancient capital are very unlike those of Venice, which has a limited number of entry points to the island. Indeed, even in Venice, it seems that the new fee has not helped to alleviate the crowds. Furthermore, a two-tier pricing system would surely damage Kyoto’s image.”
Context is often missing in the populist debate around tourism taxes:
1) There is no evidence to suggest tourism taxes significantly reduce visitor numbers in hotspot destinations.
2) They are predicated on an assumption of similar structural conditions and outcomes among cities/destinations confronting a heavy volume of visitors. Tourism exists because places are different - and you can’t tax them into uniformity.
3) Taxing demand while leaving the supply lines untouched is not a holistic strategy.
Which brings us to…
2) Return of the Thai Tourism Tax
… Thailand’s Tourism Tax proposal dates back to 2021, when the government before last said it wanted to levy a THB500 fee for all visitors. In February 2023, this was re-set to THB300. Then, the tax was officially scrapped in June 2024.
Starting on an unconfirmed date in “the final quarter”, a mandatory THB300 fee will be used “for the development of infrastructure and attractions, along with ensuring tourist safety," says Tourism Minister Sorawong Thienthong.
Essentially, tourists will be part-funding more tourism, which is perhaps more honest than claiming the tax will help combat over-tourism or protect the environment.
3) Chinese Cruises Go Polar
On to China. There’s been quite a bit of coverage about Guangdong Port & Shipping Group and Guangdong Travel Holdings launching a polar cruise brand, 66 Degrees Expeditions, in May 2025. Commentary tends to focus on what this says about changing demand patterns in the Chinese outbound market.
It could also be argued from the perspective of Chinese companies investing to expand their supply-side self sufficiency. China is making strides to sell its home-manufactured aircraft, rail technology and EVs. Cruise ships are high on the agenda.
Although the cruise line will launch using a retrofitted ship from Japan, this sentence is perhaps the biggest takeaway:
“China Merchant Heavy Industries has been constructing smaller luxury expedition ships since 2019 and is expected to deliver the final ship in a seven-vessel series by August 2025.”
4) Airport Expansions in Australia
Next to Australia, where a 3rd runway at Melbourne Airport received a green light - which will “allow an extra 23 million passengers to travel each year”, although it was predicated on growth for both passenger traffic and air freight. It follows Singapore Airlines becoming the first carrier to announce it will fly in/out of the new Western Sydney Airport, when it opens in “late 2026”, while a new terminal is planned in Brisbane ahead of the 2032 Olympics.
A very interesting discussion this week on the OAG Webinar about the outlook for Australian airports and air travel given that international capacity is not yet back to pre-pandemic levels and domestic capacity is static.
Well worth a listen.
5) Free Passports for 18-Year-Olds
And, finally… back to Japan, which is at the forefront in Asia Pacific of confronting an ageing society. This mostly involves deploying smart technologies to offset the productivity losses of a declining labour force. But that doesn't really apply to the demand side of travel and tourism.
So, while countries (China being the latest example) are raising the retirement age, the Japan Association of Travel Agents is advocating for free passports for 18-year-olds.
The economic logic extends beyond encouraging young people to travel. “Foreign airline companies will not be incentivized to start new routes to Japan without a certain level of outgoing travellers,” Hiroyuki Takahashi, Chairman of JATA, told local media.
If you are heading to this week's 25th Inter-Islands Tourism Policy (ITOP) Forum - see you there!
Last year's first ITOP Forum since the pandemic was hosted by Hainan Island - and this year’s edition will take place overlooking Karon Beach in Phuket.
Terrific poster. Should be a great event!
And, that’s a wrap for issue 156.
Asia Travel Re:Set will return next Sunday.
Until then, find me at LinkedIn, The South East Asia Travel Show and High-Yield Tourism.
Happy travels,
Gary