In January, Vietnam and Japan reported that the numbers of monthly visitor arrivals reached pre-pandemic levels.

Most regions and countries in Asia Pacific recorded recovery of 75% to 90%, however, Hong Kong is left behind at only 56.4% recovery.

Cambodia

Cambodia is optimistic that the recovery of tourism will reach pre-pandemic levels by 2025, as the number of foreign visitors reached 5.4 million in 2023 and more international flights resumed. According to the latest data in 2024, the top three feeder markets were Thailand, Vietnam, and China, which are all easily connected via land borders, and Angkor Wat ranked the most popular attractions among inbound travelers.

The Ministry of Tourism reported that inbound tourism generated more than $3 billion in revenue with an average length of stay of 7 days in 2023. With the new airport at Siem Reap opening in late 2023 and Techo Takhmao International Airport at Phnom Penh set to open in 2025, the government is optimistic about the future growth of inbound travelers. However, the recovery of Chinese tourists remained modest due to the sluggish economy as well as fears of human trafficking in Southeast Asian countries.

Hong Kong SAR

Hong Kong welcomed 3.8 million travelers in January, approximately 56% of the levels of 2019. The Hong Kong Tourism Board expected that the number of annual visitors in 2024 would have a 30% increase from last year, aiming for 45–46 million. After fully reopening the border with mainland China, the recovery of tourism and retail remained slow compared to Macau and other destinations in Asia Pacific.

To boost the recovery of the tourism industry, the government plans to allocate more than HKD 1 billion from the annual budget 2024–25 to fund related marketing and promotional events, including monthly fireworks. The ongoing development of Kai Tak Sport Park is expected to boost Hong Kong’s tourism with its major venues, including a main stadium with a maximum capacity of 50,000 people and an indoor sports centre with a maximum capacity of 10,000 people.

South Korea

South Korea received about 11 million international tourists in 2023, approximately 63% of pre-pandemic levels in 2019. Short-haul markets remained the key markets, namely China and Japan, but visitors from China only showed a 33% recovery due to the late reopening of its borders. On the other hand, long-haul markets, particularly visitors from Europe and the U.S., showed a strong recovery to approximately 90% of pre-pandemic levels.

To boost the number of tourists, South Korea would extend its visa fee waiver policy for group travelers from China, Indonesia, the Philippines, and Vietnam to the end of 2024. Additionally, South Korea might be the next hot spot for digital nomads in Asia, as its newest visa allows travelers to stay up to two years in the country. To qualify for the program, applicants must be employed by a foreign company and have worked in the same industry for at least one year with an annual salary of 84.96 million won (USD 63,900) as well as health insurance coverage of at least 100 million won (USD 75,170).

AP Hospitality Advisors serves owners, investors, developers, operators and lenders of hospitality assets across Asia-Pacific. The team blends expertise in operations, real estate and finance to support any critical step in the asset life-cycle.

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