Willie Walsh, executive director of the International Air Transport Association, said there is “a little hesitancy” for travel demand in the Asia-Pacific region to return to pre-pandemic levels, but that goal is on track to be achieved this year. As of December last year, it was around 83% of 2019 levels, up from just 57% in January, according to IATA data. Experts believe overseas travel by Chinese tourists is fueling this demand, as mainland tourists increasingly visit Southeast Asian countries.
Departing passengers line up for check-in at Yantai Penglai International Airport in Yantai, Shandong Province, China, on February 9, 2023.
Video Visual China Group | Getty Images
Asia-Pacific’s travel sector is experiencing strong growth, with air travel demand this year expected to match pre-pandemic levels thanks to Chinese tourists.
According to the International Air Transport Association, travel demand in the region improved to almost 83% of 2019 figures in December 2023, compared to just 57% in January. These numbers are expected to improve.
“The current environment remains positive for most airlines,” IATA Director General Willie Walsh told CNBC’s “Squawk Box Asia” on Tuesday. Demand is “just a little short” of pre-pandemic levels, he added, but expects to meet that goal this year.
Experts believe Chinese tourists will drive this demand, especially when visiting Southeast Asian destinations within the wider region.
James Sullivan, head of Asia-Pacific equity research at JPMorgan, said travel demand from Chinese tourists in Southeast Asia increased significantly in January.
“Inbound to other countries in the region remains strong, but we think ASEAN will be the net beneficiary in terms of increased inflows,” Sullivan said.
According to Citi’s research, the overall number of overseas travelers from China during the Lunar New Year holiday from February 10 to February 17 reached 3.6 million, with the majority traveling to ASEAN countries. Thailand, Singapore, Malaysia, Vietnam and Indonesia were the top 10 destinations.
Outside of the Asia-Pacific region, the US, UK, South Korea, Japan and Australia became popular holiday destinations for Chinese travelers.
More Chinese residents traveled outside China this Lunar New Year than in 2023, according to data from travel analytics firm Cirium.
Thailand received the most Chinese tourists during this period, with airline bookings quadrupling from 35,094 during the Lunar New Year period last year to 149,159 this year.
The number of flight bookings from China to Singapore has soared almost sixfold, from 10,873 flights in 2023 to 64,469 flights this year.
June Lee, marketing director at Cirium, said: “Visa-free initiatives have been introduced in recent months, with Thailand waiving visa requirements and Singapore offering 30 days of visa-free travel to Chinese nationals. may be contributing to this trend.”
He added that flights from China to Malaysia, Singapore and Thailand are expected to increase by 87% year-on-year from March to June.
