Chinese tourists opt to stay home, denting Southeast Asia’s economic recovery
- Thailand, Indonesia and Singapore have all seen visitor numbers disappoint, as Chinese travellers remain hesitant to spend money heading abroad
- The trend could push some Southeast Asian nations to look at diversifying their target markets – though one economist says ‘it’s still early days yet’
The visitor statistics suggest that Southeast Asia’s economic recovery this year will be muted, amid a dimming global growth outlook from tighter monetary policies and China’s faltering growth momentum.
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Retail giant Takashimaya said recently that non-Chinese tourists accounted for almost 70 per cent of its total sales between March to May from tourists, compared with just 20 per cent during pre-pandemic days.
Summer tour bookings by Chinese for Southeast Asian destinations do not have significant improvements from the first half of the year, said Qiu, a Guangzhou-based employee of GZTC International Tour Company, who asked to use only one name citing rules against speaking to the media.
Even the most popular destinations, such as Singapore and Malaysia, only saw about 30 per cent of the pre-pandemic demand during the summer holiday, while others including Thailand were at 10 per cent, he said.
A slower increase in flight capacity has also been a drag on tourism recovery. Flight capacity between China and the region is improving, but most routes are still well below pre-pandemic levels – with Singapore being the outlier, data from aviation analytics company Cirium shows.
Lack of tour groups also contributed to the slow pace of recovery, according to Bloomberg Intelligence’s Eric Zhu. In the first quarter of this year, only 1.6 per cent of Chinese travelling in tour groups went overseas, down from 30 per cent from the same period in 2019, data from the Ministry of Tourism and Culture showed.
However, countries and industry observers are optimistic that Chinese tourists will hit the road in the latter half of the year. While current figures are modest, Singapore looks forward to the continued growth in Chinese visitor arrivals, a spokesperson for its tourism board said.
“It is still early days yet since China’s reopening,” said Selena Ling, chief economist at Oversea-Chinese Banking Co. “I’m hopeful that the Chinese visitor numbers will improve into the second half of 2023.”