In 2024, tourism in Asia-Pacific was booming with the return of Chinese travellers, albeit at a moderating pace.

Many countries in the region are expected to achieve full recovery in tourism by 2025, although some are still strategizing to boost visitor arrivals. The standout success is Japan, which has set a new record for visitor arrivals, surpassing 36 million in 2024.

‍Japan reopened its borders to international visitors in late 2022, quickly becoming a popular destination for travellers from around the world. Boosted by a favourable exchange rate, Japan is expected to attract even more international visitors in 2025, particularly with the World Expo taking place in Osaka from April to October. However, the country now faces the challenge of overtourism.

To mitigate the impact, various cities and attractions have introduced initiatives, such as visitor caps for Mount Fuji and Ginzan Onsen, as well as a proposed increase in lodging taxes in Kyoto (for up to 10,000 yen [USD63] per night). Read more about overtourism in our latest article here.

‍Cambodia welcomed approximately 6.7 million foreign visitors in 2024, according to a spokesperson from the Ministry of Tourism. The top five feeder markets for Cambodia in 2024 were Thailand, Vietnam, China, Laos, and the United States. The government remains optimistic about future growth in the Chinese market.

Arrivals in 2024 thus exceeded the peak performance seen in 2019, with the government targeting 7 million foreign visitors in 2025. To further attract tourists and investors, Cambodia has announced a reduction in visa fees, lowering the tourist visa fee from USD35 to USD30, and the regular visa fee from USD42 to USD35, alongside streamlining the visa application process starting this year.

Vietnam’s tourism rebounded strongly, with a total of 17.6 million foreign visitors in 2024, almost matching the 2019 figures. After streamlining the e-visa application process and launching various promotional events, Vietnam is optimistic about further growth, targeting 22 million foreign visitors in 2025, contributing 6% to GDP, or around $38.59 billion in revenue.

The top feeder markets to Vietnam in 2024 were Korea (25%), China (21%), and Taiwan (7%). While the number of Chinese visitors doubled from 2023, it was still 2 million fewer than in 2019.

Malaysia has announced an ambitious plan to expand its tourism industry over the next two years, targeting 35.6 million international visitors and tourism receipts of RM147.1 billion (approximately USD33 billion) by 2026. Between January and November 2024, Malaysia welcomed 22.5 million international travellers, around 7% below the levels of 2019.

During this period, Singapore remained the largest feeder market to Malaysia, followed by Indonesia and China. With the introduction of a visa-free policy for Chinese travellers in early 2024, Malaysia has seen an increase in Chinese visitors. Additionally, Malaysia has improved the connectivity of key destinations like Johor Bahru, Kota Kinabalu, Langkawi, and Penang to several international locations, aiming to diversify its tourism beyond the capital city.

Thailand received over 35.54 million foreign tourists in 2024, including 6.7 million from China. However, due to rumours of human trafficking, many Chinese travellers have opted for alternative destinations such as Japan and Singapore for safety reasons. Nevertheless, Thailand has set an ambitious target of 40 million foreign visitors in 2025, with a projected revenue of 3.4 trillion baht (around USD94.2 billion).

The government plans to launch promotional campaigns, marking the 50th anniversary of diplomatic ties between China and Thailand. In addition to Chinese visitors, the government expects an increase in visitors from North Asia, particularly Japan and Korea, to offset the shortfall from China.

The chart below outlines the visitor arrivals to countries and regions in Asia Pacific.

Source: AP Hospitality Advisors

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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