Travel experiences in Asia Pacific have returned to rapid growth since the region reopened borders for regional and long-haul travel. However, the industry – especially tour activities and attractions – is expected to surpass the pre-pandemic peak in 2025, according to research conducted by Arival Co.
The company released its new research findings ahead of its conference in Bangkok in June. Titled “The Outlook for Experiences 2019-2025”, the study forecasts that the industry will reach US$67 billion in 2024, and $75 billion in 2025.
“The Asia Pacific region has borne the worst of the pandemic, with a broad regional shutdown in cross-border travel well beyond other parts of the world,” said Arival CEO Douglas Quinby in its release.
“But demand for travel in the region is now accelerating as many borders have reopened, encouraging travellers to return. As we saw when other regions reopened, travellers put experiences first in travel planning and spending. The challenge now will be for the global industry to get ready for the rapid influx of demand from across Asia Pacific.”
Online bookings will surpass 30% of all tours, activities, and attraction bookings worldwide in 2025, up from 17% in 2019, according to the research.
However, online booking volume across Asia Pacific will more than triple during the same period as younger travellers shape travel’s rebound. Online marketplaces and mobile-ready operators across the region will be best positioned to benefit.
Foreign tourists return to Bangkok’s China Town. (Photo by Veena Thoopkrajae)
Quinby said that the experience-hungry cohort of Gen-Z and millennial travellers in Asia are putting experiences first and they are willing to pay for it. Therefore the tourism operators must be ready to respond to the group. It also means more small-group, immersive experiences that get travellers off the beaten track. And it must all be discoverable and bookable on mobiles, with plenty of Instagram- and TikTok-worthy moments. More about travel trends and responses to post-pandemic travel are expected at the Arival Activate, the event designed specifically for the Asian experiences Industry, including suppliers and operators of tours, activities, and attractions, which is being held on June 12-14 in Bangkok.
But while Thailand is enjoying growth, it is still far from achieving the pre-COVID peak. Notwithstanding the current slow increase, last week, the Bank of Thailand (BoT) raised its projections for foreign tourist arrivals to 25.5 million this year and 34 million next year, up from 22 million and 31.5 million, respectively. The country received a record of nearly 40 million visitors in pre-pandemic 2019.
Contributing to the tourism recovery in Thailand are Indian tourists who were among the first and largest groups of foreign tourists to travel to Thailand shortly after the country opened up. They have a unique behavior pattern in that they tend to travel as a family or a group of friends, and some come to Thailand to have weddings.
At the same time, China’s reopening is expected to further boost tourism, with at least 5 million Chinese visitors this year or about half of the pre-pandemic figure. Tourism Authority of Thailand Governor Yuthasak Supasorn has revealed that the number of foreign tourists entering Thailand during the first quarter of 2023 was 6.5 million, which generated an accumulated revenue of 256.194 billion baht.
During the first three months of 2023, the majority of foreign tourists (56.8%) were from East Asia, followed by Europe (26.5%), and others such as India, the United States, Australia, Israel, Canada, and Saudi Arabia (16.7%).
The top five countries with the highest number of tourists visiting Thailand during the first 3 months were Malaysia, Russia, China, South Korea, and India, respectively. TAT believes the Chinese tourists would top foreign tourists in Thailand with at least 5 million tourists, a figure likely to rise to 7-8 million depending on flights available during the winter.
The second nation would be Malaysia (4 million) followed by India (2 million).
Chinese tourists at a market in Bangkok. (Photo by Veena Thoopkrajae)
Indians enjoy eating Indian food and watching entertainment, such as visiting Safari World and taking a boat ride along the Chao Phraya River. Unlike Chinese tourists who are into shopping, they also prefer to buy locally made products with unique stories and characteristics. This trend could be an opportunity for business operators to increase their income.
TAT also reported a significant rise in Middle-East tourists visiting Thailand for medical tourism. The number of this group has increased from 1.8% in 2019 to 4.3% in 2022.
Another positive sign is the increase in long-stay tourists among both Europeans and Americans. The spending per head as recorded in 2022 has increased thanks to inflation as well as the rising accommodation costs, which have now been adjusted from the “low-season” rate during the pandemic.
By Thai PBS World
