Rebound of Chinese Tourism in SE Asia: The Impact of Visa-Free Travel Arrangements

With global tourism now experiencing an upswing following the pandemic, a travel tug-of-war is unfolding for the return of Chinese tourists, who were once the world's largest source of outbound travellers. Here in Southeast Asia, a new regime of reciprocal visa-free travel between China and Malaysia, Singapore, and Thailand respectively, kicked off in early 2024.

Initial signs this year show evidence of a Chinese tourist rebound with SE Asia and Japan (with the attractiveness of a low Yen), benefitting the most. Bloomberg Intelligence recently reported that it expects international air travel from the mainland to top 90 percent of peak 2019 levels by the end of 2024, after showing strong growth in Q1 of 2024.

So, who is winning the war for Chinese tourists in SE Asia? At present, it would seem that Singapore has emerged as the frontrunner, successfully attracting Chinese visitors at a pace that outstrips regional neighbours like Malaysia, Thailand, and Indonesia.

Singapore Again Shows Its First Mover Capabilities

Singapore's strategy to attract Chinese tourists has been highly effective in 2024. Data from the Singapore Tourism Board shows that more than 327,000 Chinese tourists visited the city-state in February 2024, nearly reaching pre-pandemic levels at 96% of the 2019 figures. This resurgence is set to continue, with scheduled departure seats between China and Singapore in the first quarter already surpassing 2019 levels.

Several factors are likely contributing to Singapore's success. Firstly, the visa for Chinese tourists (for up to 30 days) and streamlined/automated travel processes make it more appealing for Chinese travellers. Secondly, Singapore's reputation for safety has become increasingly important and made it a preferred destination amid rising concerns over hostility towards Asian people globally. Moreover, the nation's efforts to market and promote unique cultural and entertainment events, such as securing exclusive deals for popular concerts (the recent Taylor Swift partnership) and big Broadway shows like Hamilton, help to create buzz for a country that might lack the size and natural attractions of others.

What About the Rest of SE Asia?

While Singapore has seen a robust recovery, other Southeast Asian countries lag behind. Thailand, traditionally a major destination for Chinese tourists, saw its tourism levels at about 63% of pre-pandemic figures in February 2024. Indonesia's recovery was even slower, at approximately 48% of pre-pandemic levels. The broader global context shows similar patterns, with Europe and the United States expecting Chinese visitor numbers to remain significantly below pre-COVID levels due to ongoing geopolitical tensions and other barriers.

How Do SE Asians Feel About Chinese Tourist Visa Exemptions?

Given rising global tensions and various geopolitical struggles happening globally, including strained US-China relations, Blackbox recently examined what, if any, impact this might be having across SE Asia and whether Chinese travellers themselves might be caught in the crossfire.

The strategy of visa exemptions to boost tourism in SE Asia appears to generate mixed reactions across the region. According to our survey, nearly half (49%) of Southeast Asians think it’s a ‘good idea’ for Chinese tourists to enter without a visa, while one-third (34%) feel otherwise. Not surprisingly, Singaporeans are the most supportive, with 71% in favour, whereas Filipinos are the least receptive to the idea, with 50% opposing and only a third in favour. With the exception of Singapore, between 31%-50% of SE Asians across each of the major markets currently oppose visa-free entry for Chinese tourists, highlighting that tourism authorities in these countries still have work to do in selling the benefits of Chinese traveller spending.

The Economic and Geopolitical Significance of Chinese Tourism

The return of Chinese tourists is economically vital for Southeast Asia in a variety of ways. Chinese travellers are recognised for their significant spending across the board on accommodation, shopping, and entertainment, which boosts various domestic sectors. For instance, data from Trip.com shows that the average spending per visit to Singapore by Chinese tourists has increased by 30% compared to the previous year, highlighting pent up consumer desire.

There are also geopolitical dimensions to Chinese travel. Strengthening ties with China through tourism helps maintain diplomatic relations and foster goodwill, particularly important amid the rising geopolitical tensions between the US and China. Regardless of differences, dialogue and improved cross-cultural understanding only help to bolster connection. Singapore continues to thread the needle and stay friends with anyone it can, and its ability to build positive perceptions among Chinese tourists positions it uniquely as a stable and welcoming destination for mainlanders.

Conclusion

Across SE Asia, Singapore is currently leading the race to attract Chinese tourists. And it’s not just the lure of visa free travel – its emphasis on safety and cultural offerings that are both contemporary and aim to hit the right sweet spot for tourists (many of whom have limited holiday time) makes it well positioned to build on its success going forwards.  

Furthermore, Singapore appears to have used the pandemic quiet time to re-energise and up its game when it comes to tourism. With social media now such a powerful marketing platform, Singapore is one country that has been smart in building a fresh model to attract the next generation of tourists, from China and elsewhere.

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