Issue #166: Asia Pacific's Top 6 Travel & Tourism Takeaways in 2024!
Part 2 of a 3-part rewind of Asia Pacific travel and tourism in 2024.
Welcome to Issue 166 of Asia Travel Re:Set.
It depends whom you talk to…
"There are a lot of unknowns about 2025." This was a recurrent theme in the latest The South East Asia Travel Show, as we assessed the key travel talking points in November - and their potential implications for the Year of the Snake.
I’ve recently spoken to a lot of people about the 2025 regional travel outlook, and opinions sit along a spectrum from “Potential Golden Year” to “Could Be Tough.”
Voluble talking points right now are: “If the US and China further decouple, will this be good/bad/hard to say for APAC economies?” and “Which ones will/won’t benefit?”
I highlighted “If” because it remains speculative. Either way, we can assume “Pricing in” is a phrase we’ll hear often across various sectors in the lead-up to 20 January.
Meantime, let’s take a look back at the year we are about to complete: 2024.
Thanks for checking in.
The fatal methanol poisonings in Laos made headlines worldwide. This highlights, once again, the issue of unregulated and counterfeit alcohol, which may contain harmful chemicals. The dangers not only apply to tourists. Deaths among local drinkers are often unverifiable. But it's those Happy Hour free-shot giveaways in backpacker bars that are under legal (and media) scrutiny in Laos. Thanks to Tommy Walker for including my comments in this thoughtful piece for the Asia Media Centre. Click HERE to read Laos: Methanol Deaths a Grim Warning.
Asia Pacific's Top 6 Travel & Tourism Takeaways in 2024!
1) China Outbound Returns At Scale
Asia Pacific’s biggest travel influencer, China, was back in the game. After a tepid post-Covid return in 2023, this year brought a lot more Chinese tourists (and flights) across the region, and saw visa-free access [to China] introduced for citizens of (so far) 38 nations.
It also delivered 2024’s breakout social phenom, Xiaohongshu, and the emergent rise of COMAC (which is discussed in detail on this week’s podcast, see below).
Asia Travel Re:Set covers the vital topics in Chinese travel and tourism. If you missed any of the 2024 coverage, all China-related articles are listed (and linked) in Issue 163. Click BELOW to read…
2) “Sustainability Means Reshaping the Entire Travel Industry”
And government structures. And policy planning. And human mindsets. Quantifying socio-economic sustainability is an under-scrutinised topic, but it is vital for getting to the crux of “pro-planet tourism” as the impacts of climate change evidently worsen.
Food & Water Insecurity. Ocean Acidification. Species Extinction. Rain Bombs. Drought. Waste Incineration. Marine Life Depletion. Rockslides. Greenwashing. Massive challenges ahead region-wide in 2025.
Issue #157 was entitled "Sustainability Means Reshaping the Entire Travel Industry”. Click HERE to read.
3) It’s All About Visa-Free Travel!
The most consequential structural policy issue for tourism in 2024. South East Asian nations went big on visa-free entry for Chinese and Indian visitors, plus multiple other nationalities to try and diversify their inbound mixes in a competitive market. China introduced visa-free entry for nations of (so far) 38 countries - with many more expected to be announced in the coming weeks and months.
But what happens when the rollouts slow down? Not expected in early 2025, but thereafter this issue may change course.
Issue #130 was entitled “Visa-free Travel is the Hottest Topic in Asia-Pacific Tourism!” Click HERE to read.
4) The End of South East Asia’s Honeymoon Period
“The narrative is changing. We’re not talking about the pace of hotel rate growth anymore.” We called it pretty early on The South East Asia Travel Show. In June, we welcomed Jesper Palmqvist, Senior Director, Asia Pacific, at STR CoStar, to discuss the ending of the 2023 honeymoon period for hotel (and airline) yields. These had been driven by a post-reopening surge in travel demand. Price elasticity tightened in 2024 as cost-conscious travellers dialled down on their hotel affordability bandwidth.
“Stability and volatility may sound contradictory, but both terms help to explain hotel performance in South East Asian markets and China so far in 2024,” Jesper said. The rest of the year expanded on this theme.
Issue #144 was entitled “Is the Honeymoon Period Over for South East Asia's Hotel Sector?” Click HERE to read.
5) AI is Everywhere
AI in the tourism eco-system dominated 2024 travel conference programmes on all continents - but what are the specific Asia Pacific contexts?
Iterations of AI are rapidly being integrated across the tourism industry throughout the region. Common consensus is that these are early days, and the tools currently being deployed are perhaps mere prototypes. Whatever happens next, this region will likely be front and centre.
Issue #161 was entitled “5 'AI in APAC Tourism' Takeaways from ITB Asia” Click HERE to read.
6) EV Tourism Take-off
The capacity of Chinese EV makers to offer a growing range of high-spec cars at low prices is disrupting the auto industry and geopolitics. But, as the EU and US debate this in the context of subsidies, overcapacity and tariffs, tourism is often overlooked.
In Asia Pacific, zero-emission vehicles are playing a greater role in tourism planning, investment and product development - especially in countries where electricity is priced lower than/near to parity with fuel. The majority of EVs in the tourism sector are made in China, but increasingly in plants opening up across South East Asia.
Issue #152 was entitled “EV Tourism Take-off in China, Laos & Beyond”. Click HERE to read.
With ASEAN nations weighing up their outlooks for the Year of the Snake, November was another eventful month. This week, we round up the region's latest travel stats, and rewind the month’s top travel takeaways, including:
The fallout from the fatal backpacker poisonings in Laos, "unsatisfactory tourism performance" in Singapore, and the latest on the new North Bali Airport.
Chinese aircraft manufacturer COMAC's latest plays to get ASEAN airlines to buy its planes, and its eye-catching collaboration in Hong Kong.
Etihad announces 5 new route services in South East Asia, and Penang opens its airport gates to Chennai.
And, which destination is hoping charter flights from Poland will help meet its 2024 visitor arrivals target?
Click the above live link to listen to “North Bali Airport, Laos Backpacker Perils & Chinese Aircraft Ready for Take-off: November 2024 in Review”.
Or search for The South East Asia Travel Show on any podcast app.
That’s a wrap for this week.
Asia Travel Re:Set will return next Sunday for the final issue of 2024!
Meanwhile, find me at LinkedIn, The South East Asia Travel Show and High-Yield Tourism.
Happy travels,
Gary