Fueled by visa-free policies amongst its member nations, the Association of Southeast Asian Nations (ASEAN) is currently experiencing a considerable boom in intra-regional tourism, if recent data is anything to go by, showcasing a definite trend within the region. This bloc, which currently comprises ten member states, and with East Timor hoping to join, witnessed intra-ASEAN travel growth, rising from approximately 47% of total visitors in 2010, up to nearly 50% of the 120 million or so arrivals in 2022—a period after the lockdowns.
The sector showed resilience in 2024, rebounding with a strong showing; arrivals grew by 30.6% to approximately 123 million, according to the US-ASEAN Business Council. In many member states, this contributed close to 12% of GDP.
Strategic Growth and Diversity
ASEAN’s “Feel the Warmth” initiative – its roots traceable back to the Manila Declaration of 1987 – is, in essence, about fostering a tourism industry that can compete effectively, really acting as a driver for regional development. Higher rejection percentages for US and Schengen visas, in general, have led travelers to look toward ASEAN. This is further supported by cross-border transport agreements, coupled with budget-friendly airline networks such as the Explorer Pass, really encouraging itineraries that span several countries. The bloc is diverse – think Indonesia, Malaysia, the Philippines, Singapore, Thailand, and five others–which only makes it more appealing to visitors.
Investment and Infrastructure Surge
From 2019 up to 2023, fDi Markets suggested there were 1,943 foreign direct investment (FDI) projects in ASEAN’s tourism sector, involving a total investment of $106.7 billion, and the creation of about 259,800 jobs. Though not yet fully back to the pre-pandemic numbers, the general outlook seems rather encouraging. Airlines seem to be doing quite well, especially given that outbound demand has actually exceeded 2019 levels for four consecutive quarters in places like Vietnam, the Philippines, Malaysia, as well as Singapore. Top Airbnb routes from 2023 included trips from Singapore to Malaysia, Thailand, as well as Indonesia. Thailand, for instance, welcomed 35 million tourists, Malaysia around 22.5 million, Vietnam 17.5 million, and the Philippines approximately 14 million in 2024. As the Asian Development Bank (ADB) pointed out, airlines were back to around 90% of their previous capacity by late 2023.
Evolving Travel Trends
Platforms, like Airbnb, have seen bookings basically double since 2020. Travel decisions also seem to increasingly place emphasis on things like cultural immersion, cooking activities, sustainability initiatives, and even the spikes caused by festivals and the like (for instance, Songkran, Ramadan). Solo travel grew significantly (around 260%). Plus, group travel seems to have tripled, while long stays – stays over 28 days – climbed roughly 250% back in 2022, according to Daily Travel News Asia. All this really highlights a demand for more meaningful engagements.
Future Development
The ADB is advocating for secondary city routes, in addition to liberalized services in general. Furthermore, the Philippines is in the process of privatizing 15 airports, starting with Manila’s NAIA plus Bohol. Improvements in infrastructure and unique tourism offerings could potentially pave the way for subregional corridors, which would, in turn, broaden ASEAN’s wide range of offerings, particularly as the region continues to experience economic recovery.