At the recent ASEAN Tourism Forum 2024 in Vientiane, Laos, Gary
Bowerman, the director of Check-in Asia and Asia travel analyst for
Phocuswright (which shares parent company Northstar Travel Group with Travel Weekly Asia) shed light on the challenges faced by the Chinese tourism
market in Southeast Asia following the impact of the Covid-19 pandemic.
Bowerman, a leading expert on Chinese tourism market, emphasised that
China, once the primary source market for Southeast Asia, is
experiencing a gradual recovery despite the resumption of travel.
Before the pandemic, China was the top source market for Southeast
Asia, with 32.3 million Chinese arrivals in ASEAN, 11 million of which
were in Thailand alone. However, the recovery has been slower than
anticipated. Bowerman attributes this to high expectations in outbound
travel that were not met, stating, "Outbound didn't meet expectations,
probably because expectations were too high."
Expectations exceed reality
Chinese visitor arrivals for the entire ASEAN region in 2023 were merely 11 million, equivalent to Thailand's numbers in 2019, pointed out Check-in Asia’s Gary Bowerman. Photo Credit: Travel Weekly Asia/Chakrawooth Kaewjunthong
In 2023, despite Chinese tourists having more freedom to travel, the
overall arrivals for the entire ASEAN region were merely 11 million,
equivalent to Thailand's numbers in 2019. Bowerman predicts that these
figures will increase over time, but factors influencing recovery are
beyond the control of the tourism and hospitality industry.
The ease of visa-free travel for Chinese travellers is one key
factor. The Chinese passport, currently ranked 62nd globally in passport
power, allows access to only 85 countries without a visa. Bowerman
anticipates improvement through reciprocal agreements with countries
like Thailand and Singapore, set to take effect in the coming weeks.
Airline capacity is of course another factor, with international
capacity just 10% of pre-pandemic levels in January 2023 when China
reopened its borders. In a best-case scenario, official predictions say
that the level will still only reach 80% of 2019 numbers by the end of
2024.
The Chinese economy's slowdown has also resulted in less disposable
income for overseas trips, further affecting the recovery of the Chinese
tourism market in Southeast Asia.
Get a handle on Chinese lifestyle
As tech-savvy consumers, Chinese travellers rely on superapps, live-streaming, key opinion leaders (KOLs), and platforms such as Ctrip, Figgy, Meituan, WeChat, and Alipay to enhance their travel experiences. Photo Credit: Adobe Stock/PR Image Factory
However, Bowerman stressed that one of the most significant
challenges stems from China itself. Chinese travellers are
technologically savvy, relying on e-commerce, social commerce, and
e-payment solutions. Integrated superapps, live-streaming, key opinion
leaders (KOLs), and influential social media platforms like Ctrip/Trip,
Figgy, Meituan, WeChat, and Alipay are integral to their travel
experiences.
Bowerman advised operators in Southeast Asia to understand that ”there
is no such thing as the Chinese traveller". They are diverse according to
region, to economic background as well as by demographics and interests.
“We generalise a lot about groups and FITs,” he says, “but we are not
doing ourselves any favours by treating [them] homogeneously.”
Bowerman went on to explain that perceptions of travel were much more
related to lifestyle than to a separate category. Drawing on examples
from food and nightlife to live music, plus a taste for domestic
destinations that grew astronomically during the pandemic period, he
demonstrated how many travellers were choosing to stay within China.
Destinations like Changsha offer 24-hour attractions and Sanya in Hainan
offers two of the biggest duty-free shopping facilities in the world,
loaded with made-for China products.
He urged destinations to leverage their strengths, emphasising unique
attractions such as nature in Laos and Cambodia. Bowerman encouraged a
shift in perspective, suggesting, "Get a handle on Chinese social media.
Rethink tourism as lifestyle."