Decrease in Chinese Tourists Impacts Southeast Asian Economies, While Cambodia Sees Growth

• Sommana Yan
• 16 July 2023
• Local News
• 3365 Views

The decrease in Chinese tourists has impacted Southeast Asian economies, hindering their post-Covid recovery plans. Slower-than-expected economic recovery in China has made its population more hesitant to spend money on international travel. Official data compiled by Bloomberg News show that Chinese arrivals in five Southeast Asian countries varied between 14 percent and 39 percent in May compared to pre-pandemic 2019 numbers.

Among the countries affected, Thailand, known for its reliance on tourism, is witnessing a rebound in travel demand following the pandemic. However, Chinese visitor arrivals are expected to fall short of the original seven million target for 2023 by at least two million. Bali, a popular holiday destination in Indonesia, experienced a significant decline in demand for luxury hotels during January-May, largely due to a substantial drop in Chinese tourists. Singapore, which credited the travel boom for avoiding a recession, has also seen disappointing numbers, with Chinese visitor arrivals from January to May totalling 310,901 compared to 1.55 million in the same period in 2019.

This decline in Chinese visitors suggests that the economic recovery in Southeast Asia for this year may be muted. Tighter monetary policies globally and China’s faltering growth momentum contribute to a dimming growth outlook for the region.

While countries like Thailand, Indonesia, and Singapore have experienced a decline in Chinese tourist arrivals, Cambodia has seen a notable increase in visitors from China. The Ministry of Tourism in Cambodia projects a significant rise in Chinese tourists, targeting up to 1 million Chinese visitors in 2023 compared to only 106,875 in 2022 (MoT’s News Released in February, 2023). This expected increase can be attributed to several factors.

Firstly, Cambodia has gradually resumed direct flights from China after optimising China’s anti-COVID-19 strategy. This resumption of direct flights has facilitated easier travel between the two countries and contributed to the higher number of Chinese tourists visiting Cambodia. At present, Siem Reap International Airport sees an average of 250 flights a week and an average of 1,700-1,800 international tourists a day, according to the ministry.

Secondly, Cambodia’s renowned Angkor archaeological park in Siem Reap province is a significant attraction for Chinese tourists. The Ministry of Tourism expects that almost 30 percent of the Chinese tourists projected in 2023 will visit Angkor Park. The low number of Chinese visitors in 2022 indicates the potential for significant growth in this segment.

Additionally, Cambodia’s efforts to diversify its target markets and reduce reliance on Chinese tourists have been successful. By attracting visitors from a wider range of countries, Cambodia has been able to mitigate the impact of the decrease in Chinese tourists on its tourism industry.

Official estimates for the number of international visitors to the Kingdom for 2023 have been given at four million, 0.8-1.0 million of them expected to come from mainland China, according to Ministry of Tourism Secretary of State Top Sopheak confirmation with Phnom Penh Post in March 2023.

While Southeast Asian countries continue to face challenges in recovering their tourism sectors due to lower Chinese tourist numbers, Cambodia’s strategies and attractive destinations have contributed to its positive growth.

• Tourism and Travelling
• Covid-19