Overall, month-on-month growth slows down, and no sign of strong return driven by Chinese tourists.

• Southeast Asia remains the leader of the recovery, followed by Japan reaching over 50% of pre-pandemic levels.
• Owning to the proximity to mainland China and ease of travel, Macau SAR and Hong Kong SAR saw a boost of visitor arrivals in February.
• Taiwan had a boost as it reopend to FIT travelers from Greater China, including Hong Kong SAR and Macau SAR, in mid-Febuary.

Macau SAR

In March, Macau reported the best gaming revenue since the pandemic, after COVID-19 rules were lifted earlier this year. Other key indicators, including visitor arrivals and hotel occupancy rate also recorded a strong growth. The gross gaming revenue (GGR) was recorded at MOP 12.7 billion, showing a 23% month-on-month growth in March and approximately 50% of the monthly figure in 2019.

Hotels in Macau also benefitted from surging demand starting this January. The year-to-date RevPAR is recorded at MOP 911 in February, doubling from MOP 448 in 2022. To boost the tourism recovery, Macau is extending the buy-one-get-one-free promotion of ferry and bus tickets for overnight visitors from Hong Kong.

At the same time, the Macau Government Tourism Office plans to give away 120,000 free flight tickets to travelers in target markets.

Japan

The Chief Cabinet Secretary of Japan announced that it will lift all entry requirements to enter Japan starting from May 8th and will lower the COVID-19 alert level to Level 5, as same as flu. Starting from April 5th, fully vaccinated travelers from mainland China will no longer need to present pre-arrival tests, although they might be subject to random testing upon arrival.

Despite the surging demand, Japan still struggles with staff shortages, particularly in airports and hotels. Due to the staff shortage, the average waiting time during the security check can be over an hour at major airports, and some flights are even cancelled.

Hotels are also desperate for staff after the reopening. Niseko, the renowned ski destination in Hokkaido, suffered from a serious manpower shortage during peak season.

Vietnam

In March 2023, Vietnam welcomed 895,425 inbound visitors, and the top source markets were Korea (28%), China (8%), and Thailand (5%). With the gradual recovery of key markets, the figure of monthly visitors reached 63% of pre-COVID levels in 2019.

The authorities expect that Vietnam’s tourism sector will return to pre-COVID levels in 2025, and it aims to attract 35 million international visitors by 2030.

To boost foreign tourist arrivals, the government is seeking to ease visa requirements and prolong the duration of e-visas, which are currently valid for 30 days. On top of the traditional source markets, including ASEAN countries, northeast Asia, Europe, North America, Russia, and Oceania, the authority has its eyes on the emerging markets in India and the Middle East to boost the number of inbound visitors.

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