Asia-Pacific’s travel industry is seeing robust growth, with flight bookings projected to match pre-pandemic volumes this year thanks to high demand from Chinese tourists.

According to the International Air Transport Association (IATA), the region’s travel demand in December 2023 rose to nearly 83% of 2019 levels, significantly improving from just 57% in January. 

________________________________________________________________________

• Asia-Pacific flight bookings hit pre-pandemic levels in 2023, thanks to a rebound in Chinese tourists.

• Thailand saw 4X more Chinese tourists this Lunar New Year over 2023 at 149,159 arrivals.

• Singapore-China flight bookings jumped nearly 6X year-over-year during the Lunar New Year holiday.

________________________________________________________________________

Chinese Tourists Drive Asia-Pacific Travel Recovery to Pre-Pandemic

Industry experts predict continued gains throughout 2023.

“The current environment remains favorable for most airlines,” said Willie Walsh, IATA’s Director General, in an interview with CNBC’s Squawk Box Asia on Tuesday. 

He added that demand is “just a little bit shy” of pre-COVID figures but is expected to reach that threshold this year.

Analysts believe Chinese travelers will fuel this rebound, especially to Southeast Asian destinations within the broader Asia-Pacific region.

James Sullivan, JPMorgan’s Head of Asia-Pacific Equity Research, noticed a substantial increase in travel demand from Chinese tourists to Southeast Asia in January. 

“You’re still seeing strong inbound arrivals to other countries in the region, but from an incremental flow perspective, we think ASEAN will be the net beneficiary,” he stated.

Data from Citi showed that the total outbound China tourism numbers reached 3.6 million during the Lunar New Year holiday from February 10 to 17. 

Most headed to ASEAN locales like Thailand, Singapore, Malaysia, Vietnam, and Indonesia, ranked among Chinese travelers’ top 10 destinations. 

The U.S., U.K., South Korea, Japan, and Australia also proved popular outside of Asia-Pacific.

Compared to 2023, more Chinese residents vacationed abroad this Lunar New Year, said travel analytics provider Cirium. 

Thailand attracted the highest number at 149,159 flight bookings from China, a four-fold increase from 35,094 last year. 

Singapore-bound bookings surged nearly six times to 64,469, up from 10,873.

“Visa-free policies introduced in recent months could contribute to this trend, with Thailand waiving requirements and Singapore offering 30-day visa-free entry for Chinese citizens,” explained June Lee, Cirium’s Marketing Director. 

She added that flights from China to Malaysia, Singapore, and Thailand are projected to rise 87% between March and June 2022.