Asia-Pacific Tourism Market Set to Double
The tourism market in the Asia-Pacific region is projected to nearly double from $165.9 billion in 2026 to $317.4 billion by 2036, representing a 6.7% CAGR. This growth is attributed to rapid AI adoption, improved regional connectivity, and rising middle-class wealth. China is a major driver, with outbound trips forecast to exceed 225 million in 2026, surpassing pre-pandemic levels.
- Intra-regional travel is a primary growth engine, expected to account for over 70% of the Asia-Pacific region's tourism revenue by 2030, bolstered by simplified visa processes and better air connections. - Several Southeast Asian nations, including Malaysia, Thailand, and Vietnam, have eased or extended visa-free entry for citizens from key markets like China and India, contributing to a strong rebound in international arrivals. For instance, Malaysia welcomed over 38 million visitors in 2025, making it the most visited country in Southeast Asia that year. - Japan has seen a significant tourism surge, setting a new record with 36.9 million international visitors in 2024, surpassing the 2019 peak by 5 million. The country's tourism sector now ranks as its second-largest export sector after automobiles, generating approximately JPY 8.1 trillion (USD 53.3 billion) in 2024. - While Chinese outbound travel is recovering, challenges remain, including international flight capacity that has only reached 80% of pre-pandemic levels and rising airfares. This has led to a shift, with a nearly 10-percentage-point drop in long-haul international trips from China in 2024 compared to the previous year. - New travel trends are emerging among Chinese tourists, such as "entertainment-driven travel," exemplified by a 400% increase in accommodation bookings in Singapore during a Taylor Swift concert. There is also a growing interest in eco-friendly and elderly-friendly travel options. - To support the tourism boom, massive infrastructure investments are underway, with the Asia-Pacific region accounting for 60% of new airport development projects globally. Vietnam alone plans to invest approximately USD 144 billion in its tourism infrastructure between 2021 and 2030, with 95-97% of this funding expected from private and foreign sources. - Thailand's tourism sector showed a strong recovery, welcoming over 35 million international tourists in 2024, exceeding its target and nearing pre-pandemic figures of 39.92 million in 2019. The government aims to attract 40 million visitors in 2025. - Traveler spending per trip in the Asia-Pacific is rising sharply, making it a high-value market even if visitor volume in some areas still lags behind pre-COVID levels. A notable trend is the willingness of tourists to pay more for sustainable options, with 75% of Chinese and 80% of Indian travelers stating they would pay at least a 10% premium for eco-friendly travel.
