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South-east Asian tourism will need more investment

Tuesday, February 6, 2018

Increasing visitor numbers will challenge the region’s countries to boost spending on the tourism sector

Thailand has the most international tourist arrivals and receipts, but other countries in the region are investing more in tourism

Source: ASEAN Secretariat , UNWTO Tourism Highlights, 2017; World Travel and Tourism Council Economic Impact 2017; World Bank

Outlook

The ASEAN Tourism Strategic Plan 2016-2025 seeks to make South-east Asia a more competitive and sustainable destination for worldwide tourists, generating more revenue and jobs for the region. The UN World Tourism Organization anticipates that South-east Asia will have 187 million tourist arrivals -- 10.3% of the world’s total -- by 2030 compared to 9.2% in 2016.

Rising demand will require increased investment in the tourism sector from South-east Asian governments.

While archipelagic countries face particular difficulties in boosting tourism infrastructure, security risks may deter visitors to some of the region’s countries in the short term.

Impacts

  • Singapore will continue to benefit from being a regional aviation hub.
  • Vietnam is likely to see strong growth in tourism with rising visitor numbers and high investment.
  • Indonesia will have to invest in seaports and airports across its disparate islands to improve connectivity.
  • The threat of ethnic insurgency in Myanmar and Islamist militancy in the Philippines may hit tourist numbers.

See also