The regional tourism in Southeast Asia has changed over the past few years, influenced by the increase in Chinese tourists. Thailand, Asean’s No 1 draw for Chinese tourists in the past, has seen a huge plunge in tourist arrivals. This turnaround has led to Malaysia overtaking Thailand as the top tourist destination in Southeast location for Chinese tourists. At the same time other countries such as Japan, South Korea, and Vietnam have also experienced a mix of influence on the tourism divestment while also indicating uneasy dynamics at play.

Chinese Tourism Decline in Thailand

For years, Thailand has been the cornerstone of Southeast Asia’s tourism industry, particularly for Chinese travelers. However, recent data reveals that Chinese arrivals in Thailand have dropped by more than 34% compared to pre-pandemic levels. According to official reports from Thailand’s Ministry of Tourism and Sports, the downturn is not just a temporary blip but a prolonged trend. The projections for Chinese arrivals in 2025 suggest they will remain well below pre-2019 numbers, with the country expected to receive fewer Chinese tourists in the coming years.

Several factors contribute to this significant drop. One of the primary reasons is a perceived lack of security. Reports of high-profile crimes, particularly those involving Chinese tourists, have spread widely on social media. These incidents have heightened concerns about personal safety and contributed to the decision of many Chinese nationals to seek safer destinations. With security fears amplified by the global digital presence of incidents, Thailand’s appeal to Chinese travelers has diminished.

Moreover, issues such as poor communication and the absence of targeted marketing campaigns have compounded the problem. Unlike some of its regional counterparts, Thailand has struggled to implement effective, tourism-friendly policies that cater specifically to the Chinese market. While other ASEAN countries have capitalized on improving infrastructure and offering tailored services for Chinese visitors, Thailand has not kept pace with these changes.

Malaysia’s Rise as Southeast Asia’s Premier Chinese Tourism Hub

In contrast to Thailand’s decline, Malaysia has taken proactive measures to attract Chinese tourists, resulting in a surge in arrivals. With government policies such as visa exemptions and direct flights between China and Malaysia, the country has positioned itself as the new leader in ASEAN tourism for Chinese travelers. According to the Tourism Malaysia report, Chinese tourist arrivals have increased significantly since Malaysia eased visa restrictions and ramped up efforts to market itself as a safe, attractive destination for international tourists.

In addition to policy changes, Malaysia’s appeal lies in its diversity and rich cultural experiences, which are resonating with Chinese visitors. The country offers a wide variety of experiences, from the bustling metropolis of Kuala Lumpur to the idyllic beaches of Langkawi, making it a desirable alternative to Thailand’s previously dominant tourism offerings. Malaysia’s commitment to enhancing the Chinese tourist experience, including providing Mandarin-speaking guides and tailored promotions, has been a key factor in this growth.

Japan and South Korea: Competing for Chinese Tourists in Northeast Asia

While Southeast Asia’s tourism industry grapples with the shifting tides of Chinese arrivals, countries like Japan and South Korea are also emerging as strong competitors. Japan has long been a favorite destination for Chinese tourists, known for its combination of traditional culture, high-tech cities, and scenic landscapes. Despite the challenges of the global pandemic, Japan has rebounded strongly, attracting large numbers of Chinese visitors with the help of relaxed travel restrictions, revamped visa policies, and a focus on providing an authentic, culturally immersive experience.

South Korea, another popular destination for Chinese tourists, has faced similar growth. Although South Korea had witnessed a dip in arrivals in 2020, the country is seeing a sharp recovery in 2024. Government efforts to boost tourism, including collaborations with local businesses and luxury brands, have played a significant role in appealing to the high-spending Chinese market. South Korea’s entertainment industry, particularly K-pop and Korean dramas, continues to fuel Chinese interest, with tourists visiting for both cultural and entertainment experiences.

Vietnam’s Growing Popularity Among Chinese Tourists

Vietnam, though not traditionally a top destination for Chinese travelers, has experienced a significant rise in popularity over recent years. The Vietnamese government has worked diligently to promote tourism, particularly targeting the Chinese market. Direct flights from major Chinese cities like Guangzhou and Beijing to Vietnamese hubs such as Hanoi and Ho Chi Minh City have made it easier for Chinese tourists to access the country.

Vietnam’s appeal lies in its affordable prices, vibrant culture, and natural beauty, which have drawn the attention of younger Chinese travelers. The country’s coastal areas, such as Da Nang and Phu Quoc Island, are particularly popular for beach vacations. Furthermore, Vietnam’s status as an emerging destination for eco-tourism and cultural experiences has helped it tap into the growing trend of sustainable travel among Chinese tourists.

The ASEAN Tourism Outlook: What’s Next?

Looking ahead, the tourism outlook for ASEAN countries will continue to be shaped by the evolving preferences of Chinese tourists. While countries like Malaysia, Japan, and South Korea have strategically positioned themselves to capture a larger share of the Chinese tourism market, Thailand’s decline highlights the importance of addressing safety concerns and modernizing infrastructure to remain competitive. ASEAN governments must consider the shifting trends in travel behavior, particularly as travelers become more conscious of safety, sustainability, and cultural authenticity.

The influence of the Chinese market is undeniable, but other factors such as the growing popularity of regional tourism and the rise of long-haul travel markets will also contribute to shaping the future of tourism in Southeast Asia. Countries like Vietnam are poised to benefit from these trends, while Japan and South Korea may continue to dominate the Northeast Asian market.

Conclusion: The Future of Chinese Tourism in ASEAN

The future of Chinese tourism in ASEAN is dynamic and multifaceted. As Malaysia continues to rise as a leading destination for Chinese travelers, Thailand, Japan, South Korea, and Vietnam will all be vying for their share of the market. For Southeast Asia’s tourism sector, adapting to the changing preferences of Chinese travelers will be crucial for long-term success.

The bottom line among ASEAN countries is that those who can move first on security, niche policies, and creative marketing will be able to keep and even increase the Chinese tourist base. As the region is shaping up for rebuilding its tourism industry, nations that cater to the interests of international tourists especially from China will become the next to take the lead in the ASEAN tourism race.