Thailand is beating Vietnam, Indonesia, Malaysia, Singapore, South Korea, and Japan in Asia’s tourism sector through a combination of bold targets, strategic initiatives, and a balanced approach to both domestic and international tourism. While its competitors are still navigating post-pandemic challenges, Thailand has set a clear path toward dominance with a target of 40 million tourists by 2025. Key drivers of this success include expanding flight capacity, promoting lesser-known destinations, and capitalizing on the power of its domestic tourism, which recorded a staggering 136.2 million trips in 2023.
Unlike Vietnam’s reliance on a few key source markets or Japan’s delayed reopening, Thailand has diversified its tourist base and improved infrastructure to handle larger tourist flows. Its airport efficiency, streamlined entry processes, and global marketing campaigns have led to 28 million international arrivals in 2023. With hotel occupancy rates of 72.6% and projected hotel revenue of 960 billion baht for 2024, Thailand is not just recovering — it is leading. This all-encompassing strategy puts Thailand ahead of its regional rivals, making it Asia’s most formidable tourism contender.
Thailand’s Bold Move Toward a 40-Million Visitor Goal
The Thai government has set an ambitious target to welcome 40 million tourists by 2025, aiming to revive momentum lost during the COVID-19 pandemic. This plan includes promoting lesser-known destinations, expanding flight capacity, and showcasing Thai culture to the world. By highlighting unique and underexplored regions, Thailand aims to distribute tourist traffic more evenly and reduce congestion in high-traffic areas like Bangkok, Phuket, and Chiang Mai.
Tourism plays a vital role in Thailand’s economy, with nearly 20% of the workforce employed in the sector. The push for 40 million visitors is seen as a strategic move to outpace regional competitors like Vietnam, Indonesia, and Japan. Unlike its rivals, Thailand has a balanced approach by relying on both international and domestic travelers, which strengthens its resilience against external shocks.
Domestic Tourism: Thailand’s Hidden Advantage
While international arrivals remain crucial, Thailand’s domestic tourism has been a game-changer. In 2023, the country recorded a whopping 136.2 million domestic trips, a 21% increase from pre-pandemic levels. This surge fueled an increase in hotel occupancy rates to 72.6% nationwide, with an Average Daily Rate (ADR) of 1,920 baht per room, representing a 9% increase compared to 2019.
The South of Thailand, renowned for its upscale resorts and luxury hotels, led the recovery. The ADR in the region hit 2,486 baht per room, significantly higher than the national average. Thailand’s ability to capture domestic tourism at such a high rate gives it a clear edge over competitors like Indonesia and South Korea, which rely more heavily on international tourists.
International Tourism: Surging Growth from China and Beyond
International arrivals are also on the rise. Between January and September 2023, Thailand welcomed over 5.2 million Chinese tourists, and projections suggest this figure will reach 8 million by the end of the year. Chinese tourists remain a key demographic, and Thailand’s ability to attract such a high volume of visitors demonstrates its effectiveness in tourism marketing and operational efficiency.
For 2024, Thailand expects 36.5 million international arrivals, a substantial rebound from the 39.9 million tourists in 2019. While this number is slightly lower than the pre-pandemic total, Thailand’s combination of international and domestic travel ensures higher overall tourism activity than ever before. This recovery is set to generate THB 500 billion from foreign travelers and THB 400 billion from Thai travelers, strengthening the economy and boosting overall GDP.
Hotel Revenue Surge: A New Era of Profitability
Thailand’s hotel industry is undergoing a major financial resurgence. Projections for 2025 show hotel revenue reaching 960 billion baht, a remarkable 108% increase compared to pre-pandemic times. Revenue growth is driven by higher tourist volumes and increasing accommodation expenses from both domestic and international travelers.
Thai travelers’ per-trip accommodation expenses are expected to increase from 3,500 baht in 2023 to 3,800 baht in 2024, further boosting the profitability of the hospitality sector. These rising expenditures highlight the growing value of the domestic travel market, which continues to thrive. By 2025, occupancy rates are forecasted to reach 71.9%, surpassing the 70.5% expected for 2024.
Tourism Campaigns Fuel Thailand’s Leadership in Asia
Thailand’s success is bolstered by the Tourism Authority of Thailand’s (TAT) marketing campaigns, such as “Thai Tourism Year 2023” and “Visit Thailand Year 2023: Amazing New Chapters.” These initiatives have significantly increased tourist arrivals, especially international visitors. As a result, over 28 million international tourists visited Thailand in 2023, reflecting a 154.4% year-on-year increase.
These campaigns have been instrumental in drawing tourists from countries like China, India, and Europe. Through social media, advertising, and collaborations with international travel agencies, Thailand has managed to maintain a consistent influx of tourists, outpacing neighboring countries like Vietnam and Indonesia, which lack comparable large-scale campaigns.
Peak Season Tourism Surge: New Year Boost
Thailand is also set to capitalize on the peak holiday season. The Tourism Authority of Thailand (TAT) expects to attract 1.56 million foreign travelers between December 21, 2024, and January 1, 2025, a 16% increase compared to the same period last year. Tourism revenue during this period is expected to hit THB 45 billion (USD 1.3 billion), a 20% year-on-year increase.
The holiday surge is expected to surpass the performance of other Asian countries, especially Vietnam, South Korea, and Japan, which have not launched similarly ambitious campaigns for the year-end tourist influx.
City Guide to Thailand: Discover the Must-Visit Cities of the Land of Smiles
Bangkok – The Electric Capital of Thailand
The beating heart of Thailand, Bangkok is a city where ancient temples meet modern skyscrapers. This bustling metropolis is known for its iconic landmarks like the Grand Palace and the magnificent Wat Arun (Temple of Dawn). Stroll along the vibrant streets of Khao San Road, famous for its street food, nightlife, and backpacker vibes. Shoppers can head to the luxury malls of ICONSIAM and Siam Paragon, while bargain hunters will love the Chatuchak Weekend Market, one of the world’s largest street markets. Experience a romantic cruise along the Chao Phraya River at sunset and end your night at rooftop bars like Sky Bar.
Don’t Miss
- Visit the Grand Palace and Wat Arun for a glimpse into Thailand’s rich history.
- Cruise the Chao Phraya River for stunning city views.
- Experience Bangkok’s vibrant nightlife on Khao San Road.
- Shop at Chatuchak Market, one of the world’s largest open-air markets.
Phuket – Thailand’s Island Playground
Phuket is Thailand’s most famous island destination, known for its stunning beaches, lively nightlife, and thrilling water activities. Patong Beach is at the heart of the action, with beach bars, water sports, and nightclubs galore. For a quieter escape, head to Kata Beach or Karon Beach. Explore the cinematic beauty of the Phi Phi Islands, or kayak through the limestone caves of Phang Nga Bay, famously featured in James Bond movies. Don’t forget to visit the towering Big Buddha, a 45-meter marble statue offering panoramic island views.
Don’t Miss
- Relax at Patong, Kata, and Karon beaches.
- Visit the Phi Phi Islands for iconic beach views.
- Kayak through the limestone cliffs of Phang Nga Bay.
- See the towering Big Buddha overlooking the island.
Chiang Mai – The Cultural Heart of Thailand
Nestled in the mountainous north, Chiang Mai is the heart of Thailand’s cultural heritage. This serene city is famous for its stunning Lanna-style temples, like Wat Phra That Doi Suthep, which offers breathtaking panoramic views of the city below. Chiang Mai comes alive during the Yi Peng Lantern Festival, where thousands of lanterns are released into the sky, creating a magical scene. Nature lovers can explore Doi Inthanon National Park, home to Thailand’s highest peak, while animal enthusiasts can spend a day at one of Chiang Mai’s ethical elephant sanctuaries.
Don’t Miss
- Visit Wat Phra That Doi Suthep for stunning views of Chiang Mai.
- Witness the Yi Peng Lantern Festival in November.
- Trek through Doi Inthanon National Park, Thailand’s highest peak.
- Interact with elephants at an ethical elephant sanctuary.
Vietnam’s Tourism Recovery: Climbing Back to Pre-Pandemic Levels
Tourism Targets and Visitor Arrivals
Vietnam’s tourism industry is on a steady path to recovery, welcoming approximately 12.6 million international tourists in 2023, a significant improvement from the previous year but still below the 18 million tourists recorded in 2019. The government has set ambitious targets to boost arrivals further, but it faces stiff competition from Thailand’s aggressive tourism strategies and recovery campaigns.
South Korea was Vietnam’s largest source market, contributing nearly 3.6 million visitors in 2023, accounting for approximately 28% of total international arrivals. China was the second-largest source, providing around 1.7 million tourists, while Taiwan ranked third with 851,000 visitors. These three countries remain vital to Vietnam’s inbound tourism, but the reliance on a narrow range of source markets makes Vietnam more vulnerable to disruptions in these countries.
Domestic Tourism and Hotel Occupancy
Unlike Thailand’s strong domestic tourism sector, Vietnam’s domestic travel volumes have not grown as significantly. While Thailand recorded 136.2 million domestic trips in 2023, up 21% from pre-COVID levels, Vietnam’s domestic travel resurgence has been slower. Local travelers continue to visit popular spots like Da Nang, Hanoi, and Ho Chi Minh City, but the volume has not reached pre-pandemic highs.
Vietnam’s hotel sector is gradually recovering, but it is still behind Thailand. Occupancy rates remain below the 72.6% achieved by Thailand in 2023, especially in non-urban tourist areas. While urban hotels have seen some recovery due to domestic tourism, beach resorts and smaller destinations face slower growth. The introduction of new promotional campaigns is expected to attract both domestic and international travelers, but it is unlikely to match Thailand’s robust figures.
Infrastructure and Connectivity Challenges
Vietnam’s infrastructure development has lagged behind other tourism giants like Thailand and Indonesia. Limited flight capacity and inadequate airport infrastructure are seen as bottlenecks to Vietnam’s tourism growth. Unlike Thailand, which has improved its airport capacity and streamlined tourist entry, Vietnam continues to face congestion issues in key airports such as Noi Bai International Airport (Hanoi) and Tan Son Nhat International Airport (Ho Chi Minh City).
The Vietnamese government is working to expand capacity at major airports and upgrade regional airports to support increased tourist traffic. Additionally, the launch of new flight routes from South Korea, China, and Japan has been prioritized to ensure a more direct inflow of tourists. Nevertheless, Vietnam’s airport modernization efforts are still years behind Thailand’s seamless travel infrastructure.
Marketing Campaigns and Digital Promotion
To restore its global tourism position, Vietnam has launched several promotional campaigns to attract visitors. Unlike Thailand’s globally recognized campaigns like “Visit Thailand Year 2023”, Vietnam’s efforts have focused more on regional promotion. The government has increased its presence on social media platforms to promote tourism hotspots like Ha Long Bay, Hoi An, and Phu Quoc.
Unlike Thailand, which targets a broader international market, Vietnam has focused primarily on Asian travelers, especially those from East Asia. While these efforts have driven arrivals from South Korea and China, Vietnam struggles to attract tourists from the US and Europe at the same scale as Thailand. Marketing efforts are still centered on natural landscapes and cultural experiences, but with limited budget allocations compared to Thailand’s global-scale campaigns.
Revenue and Economic Contribution
Vietnam’s tourism sector contributes significantly to the country’s GDP, though it remains smaller than Thailand’s tourism economy. International arrivals generated significant foreign exchange inflows, especially from South Korean tourists. However, while Thailand expects 960 billion baht in hotel revenue in 2024, Vietnam’s figures remain modest in comparison.
The government hopes to boost tourism revenue by encouraging longer stays and higher spending per tourist. Average tourist spending in Vietnam remains lower than in Thailand, as Vietnam is often seen as a budget-friendly destination compared to Thailand’s mix of luxury, mid-range, and budget offerings.
Vietnam: Where Tradition Meets Adventure
Hanoi – The Timeless Capital
Step into a city where ancient pagodas meet French colonial charm. Hanoi’s Old Quarter buzzes with street food, night markets, and locals riding motorbikes through narrow alleys. Walk around Hoan Kiem Lake at sunrise, or visit the iconic Temple of Literature, Vietnam’s first university. For a glimpse of history, the Ho Chi Minh Mausoleum tells the story of the country’s beloved leader.
Must-Do Activities: Food tours, visit the Temple of Literature, watch the water puppet show, and explore the Old Quarter’s hidden cafes.
Ho Chi Minh City – The Vibrant Metropolis
Fast-paced and electric, Ho Chi Minh City (Saigon) is the heart of modern Vietnam. From the towering Bitexco Financial Tower to the poignant War Remnants Museum, the city offers a vivid glimpse of Vietnam’s transformation. Ben Thanh Market is a must for souvenir hunting, while rooftop bars like Saigon Skydeck provide panoramic city views.
Must-Do Activities: Explore Cu Chi Tunnels, visit Notre-Dame Cathedral, and experience Saigon’s nightlife at rooftop bars.
Indonesia’s Tourism Recovery: Expanding Beyond Bali
Tourism Targets and Visitor Arrivals
Indonesia’s tourism sector has made significant strides in its post-pandemic recovery. In 2023, the country welcomed approximately 11.7 million international tourists, a significant increase from previous years but still below the 16.1 million tourists recorded in 2019. The Indonesian government aims to boost this figure further, with the “10 New Balis” initiative playing a key role in diversifying tourist destinations.
Unlike Thailand, which leverages strong domestic tourism, Indonesia relies more on international arrivals. Tourists primarily visit Bali, but the government is working to reduce its dependence on this single destination by promoting other locations like Lake Toba, Labuan Bajo, and Mandalika. With an influx of marketing campaigns and direct international flights, Indonesia hopes to increase tourist arrivals in these new destinations.
Key Source Markets and Visitor Trends
Indonesia’s top source markets include Australia, Singapore, Malaysia, and China, with Australians making up the largest share of visitors to Bali. Bali alone accounts for over 60% of Indonesia’s total international arrivals, underscoring its dominance in Indonesia’s tourism economy.
China, once a major contributor to Indonesia’s tourism, has yet to fully recover its tourist flow. Before the pandemic, Chinese tourists represented a significant share of Indonesia’s total arrivals. However, in 2023, tourists from Australia, Singapore, and Malaysia surpassed Chinese arrivals, largely due to China’s strict COVID-19 border policies. To regain momentum, Indonesia is actively courting Chinese travelers with promotions and incentives.
Domestic Tourism and Hotel Occupancy
Indonesia’s domestic tourism sector is gradually gaining momentum. While international tourists fuel Indonesia’s foreign exchange earnings, domestic travelers play a crucial role in supporting smaller and lesser-known destinations. Similar to Thailand, Indonesia has seen increased domestic tourism, especially in areas like Lombok, Bintan, and Yogyakarta.
Despite this, hotel occupancy rates in Indonesia remain inconsistent, especially in non-Bali destinations. While Bali hotels have occupancy rates similar to Thailand’s 72.6%, occupancy in other areas like Labuan Bajo and Lake Toba is significantly lower. Indonesia is addressing this by incentivizing investment in hotel infrastructure outside Bali, encouraging tourism operators to build more hotels in these emerging destinations.
Infrastructure and Connectivity Improvements
Indonesia’s biggest challenge in achieving tourism growth is infrastructure and connectivity. While Bali is well-connected with major international airports and direct flights from Australia, Japan, and Singapore, emerging destinations like Labuan Bajo, Lake Toba, and Mandalika struggle with limited flight capacity.
The Indonesian government is investing in airport expansions and transportation links to make these locations more accessible. For example, Labuan Bajo Airport has been upgraded to accommodate larger aircraft, and new international routes are being launched to boost direct connectivity from Singapore, Malaysia, and Australia. Efforts to improve seaports and ferry services are also underway to link Indonesia’s many islands and promote island-hopping tourism.
Tourism Campaigns and Marketing Initiatives
To compete with Thailand’s “Visit Thailand Year 2023”, Indonesia launched the “10 New Balis” campaign, which focuses on promoting new destinations beyond Bali. Destinations like Labuan Bajo, Lake Toba, and Borobudur Temple are being marketed as key tourist hotspots, especially for nature, adventure, and cultural tourism.
Unlike Thailand’s large-scale global marketing campaigns, Indonesia’s strategy is more regional, focusing on tourists from Southeast Asia and Australia. Digital advertising, influencer marketing, and partnerships with airlines and tour operators are being used to drive more awareness of Indonesia’s new tourist hubs.
While these efforts have yielded results, the scale of Indonesia’s campaigns is smaller than Thailand’s, which enjoys a larger budget and broader reach. Indonesia aims to narrow this gap by ramping up its international promotions, especially in key source markets like Australia and China.
Revenue and Economic Impact
Tourism is a vital contributor to Indonesia’s GDP, but its economic impact is still smaller than that of Thailand. In 2023, Indonesia earned around $14.2 billion in tourism revenue, which is lower than Thailand’s expected hotel revenue of 960 billion baht (about $26.8 billion USD).
The government aims to increase revenue by promoting luxury tourism and encouraging longer stays, especially in premium destinations like Nusa Dua and Gili Islands. Efforts are being made to target high-spending travelers from Australia, Europe, and the Middle East. Unlike Thailand, which benefits from significant domestic tourism, Indonesia’s revenue is still heavily dependent on international tourists.
Challenges and Areas for Improvement
Despite its growth, Indonesia faces several challenges:
- Overreliance on Bali: More than 60% of international arrivals go directly to Bali, making it a bottleneck for the country’s tourism growth.
- Connectivity Issues: Emerging destinations like Labuan Bajo and Lake Toba need better airport capacity and international flight routes.
- Infrastructure Gaps: While Thailand has developed seamless travel infrastructure, Indonesia’s airport expansion and connectivity projects are still in progress.
These issues hinder Indonesia’s ability to compete with Thailand, which has already resolved similar challenges through large-scale airport upgrades, smoother visa processes, and enhanced tourist services.
Indonesia: Adventure in Every Island
Bali – Island of the Gods
Bali needs no introduction. Its beaches are world-famous, but there’s more to Bali than just sand. Explore lush rice terraces in Ubud, visit the sacred Tirta Empul Water Temple, and catch the legendary sunset at Uluwatu Temple. The nightlife in Seminyak is legendary, while Canggu has become a haven for digital nomads and surfers.
Must-Do Activities: Surfing in Kuta, sunrise trek up Mount Batur, yoga retreats in Ubud, and visiting Uluwatu Temple.
Jakarta – The Urban Jungle
A city of contrasts, Jakarta is Indonesia’s sprawling capital. It offers a mix of luxury malls and street-side warungs (local eateries). Visit the National Monument (Monas) for panoramic views of the city. Wander through Kota Tua (Old Town) to see Dutch colonial buildings, or explore the street art at Glodok (Chinatown).
Must-Do Activities: Visit Kota Tua, see the Istiqlal Mosque (Southeast Asia’s largest mosque), and shop at Grand Indonesia Mall.
Malaysia’s Tourism Recovery: Balancing Domestic and International Growth
Tourism Targets and Visitor Arrivals
Malaysia’s tourism sector showed notable progress in 2023, welcoming approximately 20 million international tourists, which is 77% of its pre-pandemic levels. Before the pandemic, Malaysia recorded 26.1 million international arrivals in 2019, and the government is working to close this gap. While this growth is encouraging, it still trails behind Thailand’s ambitious goal of 40 million tourists by 2025.
One of Malaysia’s key strengths is its strong reliance on regional tourists. Singapore is Malaysia’s largest source market, with 8.3 million arrivals in 2023, accounting for a significant portion of total visitors. Tourists from Indonesia, China, and Thailand also contribute to its tourism base, with the proximity of neighboring countries playing a vital role in boosting numbers.
Key Source Markets and Visitor Trends
Malaysia’s top source markets are Singapore, Indonesia, Thailand, and China. The Singaporean market alone accounts for over 40% of international arrivals, owing to the convenience of cross-border travel via the Causeway and Second Link Bridge. Indonesian tourists also contribute significantly, driven by cultural similarities, easy visa policies, and short flight times.
Chinese tourist arrivals are gradually recovering following the reopening of China’s borders. Prior to the pandemic, China was Malaysia’s second-largest source of international tourists. While arrivals from China are increasing, they are not yet at pre-pandemic levels. To bridge this gap, Malaysia is launching new tourism campaigns in China and working with Chinese airlines to restore direct flight routes.
Domestic Tourism and Hotel Occupancy
While Malaysia’s tourism strategy heavily relies on international arrivals, domestic tourism also plays a vital role. During the COVID-19 pandemic, Malaysia focused on boosting domestic travel to sustain its tourism industry. In 2023, domestic tourism grew steadily, but it has not reached the same level as Thailand’s 136.2 million domestic trips.
Occupancy rates in Malaysia’s hotels also remain below Thailand’s 72.6% occupancy rate. While popular locations like Langkawi, Kuala Lumpur, and Penang have high occupancy rates, lesser-known areas such as Perlis and Pahang lag behind. To improve these numbers, Malaysia’s government is encouraging domestic travelers to explore more offbeat destinations.
Infrastructure and Connectivity Improvements
Malaysia’s tourism recovery strategy focuses on improving infrastructure and transportation. Kuala Lumpur International Airport (KLIA) serves as a major regional hub, with flights connecting Malaysia to countries across Asia, the Middle East, and Europe. The government has also focused on enhancing domestic connectivity by upgrading smaller regional airports like Penang, Langkawi, and Kuching.
Direct international flights from China, Japan, and Europe are steadily increasing, helping to restore Malaysia’s access to its key source markets. Airlines such as AirAsia and Malaysia Airlines have resumed routes from China, Europe, and Southeast Asia, while new routes from Qatar and the Middle East are also being explored. Malaysia’s improved connectivity aims to boost tourist arrivals and reduce dependence on the Singaporean market.
Tourism Campaigns and Marketing Initiatives
Malaysia has relaunched its iconic “Malaysia Truly Asia” campaign, which aims to attract visitors from around the world, especially from the Middle East, India, and China. The campaign promotes Malaysia’s unique blend of cultural diversity, natural beauty, and culinary experiences. To strengthen its appeal to Middle Eastern travelers, Malaysia promotes halal-friendly tourism and Islamic-friendly hospitality services.
The “Cuti-Cuti Malaysia” campaign targets domestic travelers, encouraging Malaysians to explore their own country. This campaign mirrors Thailand’s “Visit Thailand Year 2023” initiative, but it has not had the same widespread impact. The Malaysian government has allocated additional marketing funds to target tourists from India and the Middle East, aiming to attract a broader and more diverse tourist base.
Revenue and Economic Impact
Tourism is one of the most important sectors of Malaysia’s economy. In 2023, tourism receipts reached approximately $15.8 billion, reflecting 83% of 2019’s earnings. This recovery is a positive step, but it lags behind Thailand’s hotel revenue, which is forecasted to hit 960 billion baht (approximately $26.8 billion USD).
Malaysia’s revenue growth is driven by tourists from Singapore, Indonesia, and China, with cross-border shopping and dining forming a large share of the total spend. The Malaysian government aims to boost per capita tourist spending by promoting high-end experiences such as luxury hotels, cruises, and eco-tourism resorts.
Challenges and Areas for Improvement
Malaysia faces several challenges in its bid to remain competitive with Thailand, Indonesia, and Vietnam:
- Overreliance on Singapore: Malaysia’s dependence on the Singaporean market is evident, with over 40% of arrivals coming from Singapore alone. Thailand, by contrast, attracts tourists from a wider range of countries, making it less vulnerable to changes in any single market.
- Uneven Occupancy Rates: While cities like Kuala Lumpur, Langkawi, and Penang have strong hotel occupancy, rural areas and smaller states like Pahang and Terengganu experience much lower occupancy.
- Lack of Direct Flights: Although Malaysia has increased its international flight routes, connectivity to certain regions (like the Middle East) is not as robust as Thailand’s, which benefits from more direct routes from Europe and North America.
- Marketing Budget Constraints: While Thailand’s marketing campaigns receive significant funding, Malaysia’s marketing efforts remain more focused on Southeast Asia, leading to less global recognition.
Addressing these issues will be key for Malaysia to compete with Thailand, especially as Thailand’s strong domestic tourism and wide array of source markets give it an advantage.
Malaysia: Multicultural Marvels
Kuala Lumpur – Skyscrapers & Street Markets
Kuala Lumpur (KL) is known for its Petronas Twin Towers, but there’s so much more. From the iconic Batu Caves to the bustling streets of Chinatown’s Petaling Street, the city offers a mix of culture, food, and luxury. Bukit Bintang is the ultimate nightlife and shopping hub, while food lovers can feast at Jalan Alor Street.
Must-Do Activities: Visit the Petronas Towers, explore the Batu Caves, and shop at Bukit Bintang.
Penang – Malaysia’s Food Capital
Foodies, this is your paradise. Penang’s George Town is a UNESCO World Heritage Site known for its street art and colorful murals. Food stalls line the streets serving Penang Laksa, Char Kway Teow, and Nasi Kandar. Head to Penang Hill for views of the island, or relax on the beaches of Batu Ferringhi.
Must-Do Activities: Food tours in George Town, explore Penang Hill, and discover street art.
Singapore’s Tourism Strategy: Quality Over Quantity Approach
Tourism Targets and Visitor Arrivals
Singapore’s tourism sector demonstrated strong recovery in 2023, welcoming approximately 13.6 million international tourists, which marked a 116% year-on-year increase from the previous year. However, this figure still lags behind the 19.1 million tourists recorded in 2019 before the COVID-19 pandemic. While Thailand aims to attract 40 million tourists by 2025, Singapore’s strategy focuses on high-spending travelers rather than large tourist volumes.
Unlike its Southeast Asian neighbors, Singapore places more emphasis on “quality over quantity” in tourism, prioritizing higher-spending tourists. The city-state’s ability to host high-profile events, such as the Formula 1 Grand Prix, plays a significant role in attracting wealthy travelers from Europe, the Middle East, and East Asia.
Key Source Markets and Visitor Trends
Singapore’s top source markets for tourism are Indonesia, China, Malaysia, and India, with Indonesian tourists making up one of the largest visitor groups. Tourists from China are gradually returning after China eased its COVID-19 travel restrictions. The Singapore Tourism Board has intensified its efforts to attract wealthy Chinese tourists, as they are known for high levels of discretionary spending.
Singapore also attracts a large number of business travelers, particularly for meetings, incentives, conferences, and exhibitions (MICE). Its position as a global financial hub makes it a key destination for business travelers from Japan, Australia, and the United States. While business tourism has returned, leisure tourism has taken longer to recover.
Domestic Tourism and Hotel Occupancy
Unlike Thailand, which recorded 136.2 million domestic trips in 2023, Singapore’s domestic tourism is far more limited due to the city-state’s small size and high cost of living. Domestic travel is insignificant compared to international tourism, as Singaporeans prefer to travel abroad for vacations rather than stay within the country.
Hotel occupancy rates in Singapore have improved significantly since 2022. In 2023, average occupancy was reported at around 78%, surpassing Thailand’s 72.6% hotel occupancy rate. Singapore’s luxury hotels, especially those in Marina Bay and Sentosa, enjoy higher occupancy rates due to their popularity with high-end travelers.
Infrastructure and Connectivity Improvements
Singapore’s Changi Airport is one of the busiest and most efficient airports in the world, playing a vital role in the country’s tourism strategy. Changi Airport has been consistently ranked as the world’s best airport, providing smooth connectivity for tourists from Europe, the Middle East, and Asia. The airport serves as a key regional transit hub for tourists traveling to and from Southeast Asia.
Efforts are being made to expand Changi Airport’s capacity. The construction of Terminal 5 is expected to increase passenger handling capacity significantly, positioning Singapore as a global air travel hub. Unlike Thailand, which struggles with congestion at Suvarnabhumi Airport, Singapore’s Changi Airport has managed tourist flows smoothly, enhancing the traveler experience.
Tourism Campaigns and Marketing Initiatives
Singapore’s most prominent tourism campaign is “Passion Made Possible”, launched to position the country as a premium lifestyle destination. The campaign targets travelers looking for unique, high-end experiences, such as dining at Michelin-starred restaurants and attending exclusive cultural events. Unlike Thailand’s broader “Visit Thailand Year 2023” campaign, Singapore’s strategy focuses on affluent travelers from key source markets, especially China, India, and Australia.
The Singapore Grand Prix (Formula 1) is a major highlight of the country’s annual tourism calendar, drawing tens of thousands of tourists, celebrities, and media attention. The event generates significant economic impact for the country. Singapore also focuses on wellness tourism, business travel, and MICE (Meetings, Incentives, Conferences, and Exhibitions) to sustain year-round tourism activity.
Revenue and Economic Impact
Singapore’s tourism industry contributes significantly to its economy. In 2023, Singapore’s total tourism receipts reached approximately $18.1 billion, up from $14.2 billion in 2022. This strong recovery is attributed to the return of high-spending tourists from China, Australia, and India, as well as increased business travel from the United States and Japan.
While Singapore’s revenue per tourist is higher than that of Thailand, its total revenue is still lower due to its smaller volume of tourist arrivals. In comparison, Thailand expects hotel revenue to hit 960 billion baht (approximately $26.8 billion USD) in 2024. Singapore’s smaller scale of tourism limits its ability to generate as much total revenue as Thailand, despite its focus on high-end tourism.
Challenges and Areas for Improvement
Singapore faces several key challenges in the tourism race against its Southeast Asian competitors:
- Small Domestic Market: Unlike Thailand, which benefits from 136.2 million domestic travelers, Singapore has a limited domestic market. Most Singaporeans travel abroad for leisure.
- High Cost of Living: Singapore’s hotels, restaurants, and tourist attractions are often viewed as expensive compared to Thailand’s more affordable options, making it less attractive to budget-conscious travelers.
- Overdependence on Luxury Travel: While focusing on high-spending tourists helps boost revenue per visitor, it also exposes Singapore to fluctuations in demand from wealthy source markets like China, India, and Australia.
- Limited Land Area: Singapore’s limited space for new attractions and resorts contrasts with Thailand’s capacity for large-scale developments, especially in regions like Phuket, Chiang Mai, and Pattaya.
Addressing these challenges requires Singapore to find creative ways to expand its tourism offerings, particularly in terms of unique experiences, wellness tourism, and year-round events.
Singapore: The Futuristic City-State
Marina Bay – The Heart of Singapore’s Skyline
If you’ve seen a photo of Singapore, you’ve seen Marina Bay Sands. This architectural marvel hosts luxury shopping, fine dining, and a rooftop infinity pool with breathtaking skyline views. Gardens by the Bay offers a futuristic take on nature, with the iconic Supertree Grove and the enchanting Cloud Forest Dome.
Must-Do Activities: Visit Gardens by the Bay, ride the Singapore Flyer, and snap photos at the Merlion.
Sentosa – The Ultimate Island Escape
This resort island is Singapore’s playground. Families love Universal Studios Singapore, while adventure-seekers flock to the Mega Adventure Zipline. Siloso Beach is ideal for a day of sun and surf, and the nightlife lights up at Ola Beach Club.
Must-Do Activities: Ride roller coasters at Universal Studios, snorkel at Adventure Cove, and unwind at Siloso Beach.
South Korea’s Tourism Recovery: Riding the Hallyu Wave
Tourism Targets and Visitor Arrivals
South Korea’s tourism industry has seen a strong rebound in 2023, driven by the global popularity of the “Hallyu” (Korean Wave). The country welcomed approximately 12.5 million international tourists in 2023, a significant recovery from previous years. However, it remains below the pre-pandemic figure of 17.5 million arrivals in 2019.
The South Korean government aims to bring back pre-pandemic tourism volumes by launching aggressive marketing campaigns centered around K-pop, K-dramas, and cultural tourism. This strategy is designed to increase visitor arrivals, especially from neighboring countries like Japan, China, and Taiwan, which historically make up the bulk of inbound tourists.
Key Source Markets and Visitor Trends
South Korea’s major source markets include China, Japan, Taiwan, and the United States. In 2023, South Korea saw an influx of tourists from Japan and Taiwan, while Chinese tourists are gradually returning after China eased its border restrictions. However, unlike Thailand, which has seen over 5.2 million Chinese tourists in 2023, South Korea is still rebuilding its tourist numbers from China.
South Korea is also popular among tourists from Western countries, particularly fans of K-pop and K-dramas. The Korean Wave continues to drive tourism interest from Europe and the United States. Unlike Thailand, which attracts budget, mid-range, and luxury tourists, South Korea’s tourist profile is heavily skewed toward pop-culture enthusiasts and event-driven visitors.
Domestic Tourism and Hotel Occupancy
Unlike Thailand, where domestic tourism plays a significant role in supporting the economy, South Korea’s domestic tourism sector is smaller. Domestic travelers tend to focus on weekend trips to cities like Busan, Jeju Island, and Gyeongju, but the total number of domestic trips does not match Thailand’s 136.2 million domestic trips in 2023.
In terms of hotel occupancy, South Korea’s key tourist destinations such as Seoul, Jeju Island, and Busan report strong occupancy rates due to the influx of international visitors. However, smaller towns and rural areas experience much lower occupancy. The government has introduced tourism initiatives like farm stays and cultural tours to encourage domestic tourism, but these programs are still in their early stages.
Infrastructure and Connectivity Improvements
South Korea’s infrastructure is among the most advanced in Asia. The country’s main airport, Incheon International Airport, consistently ranks as one of the world’s best airports. Direct flights from Japan, China, and Southeast Asian countries make South Korea a major hub for East Asian travelers.
However, compared to Thailand, which has made significant airport expansions, South Korea’s airport capacity has remained relatively stable. While Incheon Airport has world-class facilities, other airports like Gimhae Airport (Busan) and Jeju International Airport experience congestion, especially during peak seasons. Efforts are underway to expand Jeju Airport to meet growing demand, especially as international tourists return.
Tourism Campaigns and Marketing Initiatives
South Korea’s tourism strategy is heavily focused on promoting K-pop, K-dramas, and K-culture experiences. The “Feel the Rhythm of Korea” campaign, launched by the Korea Tourism Organization (KTO), showcases Korean music, dance, and art. The campaign is designed to attract international fans of K-pop idols, with key destinations like SM Entertainment’s K-pop museum and filming locations of K-dramas being major attractions.
Unlike Thailand, which markets itself as a global tourist destination with diverse experiences, South Korea’s appeal is more niche, revolving around K-pop culture, beauty products, and “Hallyu”-themed tours. The South Korean government has partnered with airlines, media outlets, and tourism agencies to create package tours that appeal directly to fans of Korean entertainment.
Revenue and Economic Impact
South Korea’s tourism revenue for 2023 is still being calculated, but it is expected to fall short of Thailand’s 960 billion baht ($26.8 billion USD). Pre-pandemic, South Korea’s tourism receipts reached approximately $21.6 billion in 2019, and while 2023 has seen improvement, the full recovery has not yet occurred.
Revenue from international visitors comes largely from K-pop concerts, Hallyu tours, and K-drama experiences. South Korea generates significant income from tourists attending concerts, fan meet-and-greets, and cultural experiences like the BTS Pop-Up Stores and the HYBE Insight Museum. These unique experiences attract high-spending travelers, but they lack the scale and diversity of Thailand’s broader range of tourism offerings.
Challenges and Areas for Improvement
South Korea faces a number of challenges in its quest to remain competitive with Thailand, Japan, and Vietnam:
- Overreliance on Hallyu Tourism: While the Korean Wave is effective at drawing tourists, the country’s dependence on K-pop and K-dramas as its main attractions limits its growth. If interest in Hallyu wanes, South Korea’s tourism numbers could suffer.
- Limited Tourism Offerings: Unlike Thailand, which promotes beaches, temples, and luxury resorts, South Korea’s tourism options are largely centered on K-culture, city tours, and culinary experiences.
- Connectivity Bottlenecks: While Incheon Airport is world-class, Jeju Airport and Gimhae Airport face heavy congestion, particularly during peak seasons.
- Low Domestic Tourism: Unlike Thailand, which relies on strong domestic tourism, South Korea’s tourism revenue is heavily dependent on international arrivals, making it more vulnerable to border restrictions and external market shifts.
Addressing these issues will require South Korea to diversify its tourism offerings beyond K-pop culture, strengthen airport capacity, and promote under-explored destinations like Jeolla Province, Gyeonggi Province, and Daegu.
South Korea: Where K-Pop Meets Tradition
Seoul – The Soul of South Korea
Seoul is a futuristic city with a strong cultural core. Walk through the grand Gyeongbokgung Palace, wear a traditional Hanbok, and explore Bukchon Hanok Village, where time stands still. Fans of K-pop will want to visit the HYBE Insight Museum and K-pop shops in Myeongdong. N Seoul Tower is a romantic spot to catch city views at sunset.
Must-Do Activities: Visit Gyeongbokgung Palace, wear a hanbok at Bukchon Hanok Village, and hike to N Seoul Tower.
Busan – Coastal Vibes with a Modern Twist
For beach lovers, Busan is paradise. Relax at Haeundae Beach, explore the colorful streets of Gamcheon Culture Village, and visit the country’s largest seafood market, Jagalchi Fish Market. Coastal views from Taejongdae Park are a photographer’s dream.
Must-Do Activities: Relax on Haeundae Beach, visit Jagalchi Fish Market, and walk through Gamcheon Culture Village.
Japan’s Tourism Recovery: Slow Comeback from COVID-19 Restrictions
Tourism Targets and Visitor Arrivals
Japan’s tourism sector experienced a delayed recovery due to its stringent COVID-19 restrictions, which were lifted much later than its regional counterparts. In 2023, Japan welcomed an estimated 21.5 million international tourists, marking a significant improvement from the pandemic lows but still short of the 31.9 million tourists in 2019.
Japan’s tourism authorities aim to restore pre-pandemic numbers, but the recovery is slower than expected, especially when compared to Thailand, which welcomed 28 million tourists in 2023. While Japan still attracts large numbers of tourists from China, South Korea, and Southeast Asia, its slow reopening put it behind Thailand and other regional competitors.
Key Source Markets and Visitor Trends
Japan’s key source markets for tourism include China, South Korea, Taiwan, and the United States. Chinese tourists were Japan’s largest source of visitors prior to the pandemic, but this changed due to China’s strict border control measures. South Korean tourists have since taken the lead, followed by visitors from Taiwan and the United States.
The Japanese government is focusing on attracting more travelers from Western countries, particularly the US and Europe, to reduce dependence on East Asian tourists. Marketing efforts are being aimed at high-spending tourists seeking authentic cultural experiences, luxury stays, and wellness tourism. New flight routes have also been established from Europe, and visa requirements for several Western countries have been eased.
Domestic Tourism and Hotel Occupancy
Unlike Thailand, which boasts a booming domestic tourism market of 136.2 million domestic trips, Japan’s domestic tourism has not experienced the same surge. However, domestic travel has been encouraged as part of Japan’s “Go To Travel” campaign, which offers citizens discounts on domestic travel and accommodation.
In terms of hotel occupancy, popular destinations like Tokyo, Kyoto, and Osaka have seen increased occupancy rates, especially after international tourists returned in 2023. However, smaller towns and offbeat destinations have struggled to attract domestic and foreign travelers. Japan’s rural tourism initiatives, such as farm stays and onsen (hot spring) tours, are being promoted to diversify its tourism offerings.
Infrastructure and Connectivity Improvements
Japan’s airports are some of the most advanced in the world, with Tokyo’s Narita and Haneda Airports serving as key gateways. Direct flights to Japan have resumed from major markets, including the United States, China, and Europe. Kansai International Airport (Osaka) and Chubu Centrair International Airport (Nagoya) also serve as important entry points for tourists.
However, Japan faces challenges with labor shortages in its airport and hospitality sectors, especially as tourist numbers increase. Unlike Thailand, which improved airport efficiency and addressed labor shortages early, Japan is still working on resolving staffing issues. Long wait times at immigration counters and slow processing times have been reported at Narita and Haneda airports
Tourism Campaigns and Marketing Initiatives
Japan’s most prominent tourism initiative is the “Visit Japan” campaign, which aims to promote cultural tourism, luxury travel, and regional destinations. The campaign highlights Japan’s rich cultural heritage, including samurai tours, onsen (hot spring) experiences, traditional tea ceremonies, and nature-based tourism.
While Japan’s marketing efforts are aimed at international tourists, much of the focus has been on promoting seasonal experiences, such as cherry blossoms in spring and autumn foliage tours. Unlike Thailand’s broad “Visit Thailand Year” campaign, Japan’s efforts are more segmented and aimed at travelers seeking authentic, high-end experiences.
Revenue and Economic Impact
In 2023, Japan’s tourism receipts reached approximately $33 billion, reflecting a steady recovery but still short of pre-pandemic levels. Japan’s tourism sector heavily relies on high-spending tourists from China, South Korea, and the US, as these groups tend to spend more on shopping, dining, and luxury experiences.
In contrast, Thailand’s tourism industry is forecasted to generate 960 billion baht (approximately $26.8 billion USD) in hotel revenue alone in 2024, which highlights Thailand’s dominance in the tourism sector. Japan’s focus on cultural tourism and traditional experiences makes it less dependent on hotel revenues, but it also limits its ability to generate the same high level of hotel-related earnings as Thailand.
Challenges and Areas for Improvement
Japan faces several key challenges in its tourism revival:
- Labor Shortages: Japan is grappling with a labor shortage in the hospitality, airport, and service sectors. This has led to long wait times at airports and delays in hotel check-ins.
- Delayed Border Reopening: Japan’s decision to maintain strict COVID-19 border controls until late 2022 put it behind Thailand and other competitors, who reopened earlier.
- Lack of Regional Tourism Diversification: Popular cities like Kyoto, Osaka, and Tokyo dominate Japan’s tourism landscape, while rural areas receive significantly fewer visitors. Efforts are being made to promote less-visited regions like Shikoku, Kyushu, and Hokkaido, but progress is slow.
- Over-Reliance on Chinese Tourists: Prior to COVID-19, Chinese tourists made up a significant portion of Japan’s inbound arrivals. While Chinese tourists have begun returning, this reliance exposes Japan to fluctuations in China’s outbound travel market.
Japan’s strategy to resolve these issues includes strengthening tourism infrastructure, promoting regional tourism, and diversifying its tourist base by attracting more visitors from the US, Europe, and Southeast Asia.
Japan: Where Tradition Meets Modern Innovation
Tokyo – The City That Never Stops
Tokyo is a sensory overload of neon lights, towering skyscrapers, and quirky attractions. Visit the famous Shibuya Crossing, one of the busiest pedestrian intersections in the world. Take in history at Asakusa’s Senso-ji Temple and enjoy panoramic views from Tokyo Skytree. Akihabara is the heart of anime culture, while Shinjuku buzzes with bars, izakayas, and the famous Golden Gai alleyway.
Must-Do Activities: Cross Shibuya Crossing, shop in Akihabara, visit Senso-ji Temple, and experience Tokyo nightlife in Golden Gai.
Kyoto – The Land of Temples and Tranquility
Kyoto is the serene counterpart to Tokyo’s buzz. Wander through the magical Arashiyama Bamboo Grove or visit the gold-plated Kinkaku-ji Temple (Golden Pavilion). Walk along the Path of Philosophy and spot cherry blossoms in spring. If you’re lucky, you might see a Geisha in Gion, Kyoto’s entertainment district.
Must-Do Activities: Walk through Arashiyama Bamboo Grove, visit the Golden Pavilion, and explore Gion for a chance to see a Geisha.
Osaka – The Food Capital of Japan
Known as Japan’s “Kitchen,” Osaka is famous for its street food, neon-lit entertainment districts, and Osaka Castle. Eat your way through Dotonbori, where the streets are lined with takoyaki, okonomiyaki, and ramen shops. Universal Studios Japan is a favorite for families, especially with its popular Super Nintendo World.
Must-Do Activities: Eat at Dotonbori, explore Osaka Castle, and experience Universal Studios Japan.
Thailand is undeniably beating Vietnam, Indonesia, Malaysia, Singapore, South Korea, and Japan in Asia’s tourism race. Its unmatched combination of high-volume international arrivals, robust domestic tourism, and substantial revenue growth sets it apart. By leveraging a diversified tourist base, seamless infrastructure, and innovative marketing, Thailand has outpaced its competitors.
While countries like Japan, South Korea, and Vietnam face ongoing challenges with airport congestion, labor shortages, and market dependency, Thailand has demonstrated agility and foresight. With its 40 million visitor target for 2025, record-breaking hotel revenue, and rising tourist numbers, Thailand continues to lead Asia’s tourism sector. Its comprehensive approach is a model for tourism recovery and dominance in the region.
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