DIA386.77+4.54 1.19%
SPX5,127.79+63.59 1.26%
IXIC16,156.33+315.37 1.99%
Chinese tourists flock to Southeast Asia as overseas travel bounces back
Reuters·02/20/2024 06:58:52
Listen to the news
Chinese tourists flock to Southeast Asia as overseas travel bounces back

By Sophie Yu and Anne Marie Roantree

- Chinese travellers flocked to tourist hot-spots across Asia over the Lunar New Year break, with visitor and spending in destinations including Singapore, Thailand and Malaysia exceeding pre-COVID levels.

Visa-free access for Chinese tourists to the Southeast Asia countries boosted traffic and signalled a robust revival in travel since Beijing lifted strict COVID restrictions in early 2023 that had all but shut China's borders for three years.

The increase also provides a welcome relief to countries whose tourism industries rely on the Chinese and their spending for growth, although the outlook for a sustained recovery in overseas travel is overshadowed by a sluggish mainland economy and volatile financial markets that have seen consumers tighten their belts at home.

"Despite the macroeconomic headwinds, we believe Chinese citizens are still willing to spend on travel-related experiences ... we think travel-related spending could continue to outpace this overall domestic consumption," HSBC said in a research .

Bookings to Singapore, Thailand and Malaysia combined jumped more than 30% from Feb. 10-17 compared with 2019, according to travel website operator Trip.com, with Chinese visitors to Hong Kong, Macau, Japan and South Korea also increasing.

The holiday in 2024 lasted for eight days, one day more than the Lunar New year break in 2019.

Reflecting the boost from visa waivers, hotel bookings for Bangkok tripled over the period from Feb. 10-13 year-on-year, while those for Singapore jumped -fold, according to travel platform LY.com.

Spending in Singapore, Thailand and Malaysia combined on the Chinese mobile payment platform Alipay increased 7.5% in the period from Feb. 9-12 from 2019 levels and 7-fold from last year, Alipay said.

However, overall consumer spending only recovered to 82% of levels four years ago, the company said.

As Chinese scour for adventures, the Middle East proved a popular Lunar New Year destination, with travel to Saudi Arabia up more than -fold from 2019 levels and bookings to United Arab Emirates climbing 60%, Trip.com said.

The gambling hub of Macau, the only place in China where citizens can legally gamble in casinos, recorded a surge in Chinese tourists with more than a million visiting over the holiday and average hotel occupancy rates reaching 95%, according to official data.

The jump in tourists bodes well for some of the world's largest casino operators in the former Portuguese territory, including Sands China 1928.HK and Wynn Macau 1128.HK.

JP Morgan said in a it expected daily gross gaming revenues for the peak of the holiday to hit $124 million for the first time in more than four years - higher than the $112 million generated during the October 2023 Golden Week holiday.

Mass gaming rates were forecast to have reached 120% of pre-COVID levels, it said, adding that it expects February gross gaming revenues to rise by at least 80% year-on-year to $2.36 billion, the highest in more than four years.

Across the border in Hong Kong, leader John Lee said on Tuesday more than 1.2 million Chinese tourists visited the city over Lunar New Year and overall hotel occupancy rates reached 90% in the first few days, providing a much- boost to the city's economy. Around 1,980 group tours from mainland China visited Hong Kong during the holiday.

In Japan, department store operator Isetan Mitsukoshi Holdings said that through to Feb. 14 "duty-free sales were significantly higher than the previous year, partly due to the Chinese New Year".

A shift in holiday tastes was reflected in some data as travellers sought more experience-based trips, with Alipay reporting Chinese tourists globally spent 70% more on food and beverages compared with pre-COVID levels.

Trip.com said overseas car rentals on its platform jumped 53% compared to 2019 and tickets for scenic experiences abroad soared more than 130%.


(Additional reporting by Brenda Goh in Shanghai, Rocky Swift in Tokyo and Jessie Pang in Hong Kong; Writing by Anne Marie Roantree; Editing by Miral Fahmy)

((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters Messaging: annemarie.roantree.thomsonreuters.com@reuters.))

During the campaign period from July 1, 2023 to June 30, 2024 US stocks, US stocks short selling, US stock options, Hong Kong stocks, and A-shares trading will maintain at $0 commission, and no subscription/redemption fees for mutual fund transactions. For more information, please visit:  https://www.webull.hk/pricing
More than 40M Downloads Globally : data based on Webull Technologies Limited's internal statistics as of July 14, 2023.
Pre-market (4:00 AM - 9:30 AM ET) , after-hours (4:00 PM - 8:00 PM ET) .
Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.
Language

English

©2024 Webull Securities Limited. All rights reserved.