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Business Times
02-07-2025
- Business
- Business Times
Chinese tourists crown Vietnam, sideline Thailand
[SINGAPORE] Chinese tourists are reshaping travel trends in South-east Asia, with Vietnam and Malaysia gaining ground while Thailand, the traditional hot spot, is seeing visitor growth stall amid currency swings, safety concerns and China's economic headwinds. For more than a decade, Chinese tourists have been the backbone of South-east Asia's tourism engine, filling hotels, malls and tour buses. But the long-awaited post-pandemic rebound is proving uneven, raising warning signs for some countries and cheers in others. During the first six months of 2025, foreign tourist arrivals in Thailand were down 4.2 per cent from the corresponding period in the previous year, with 16 million tourist arrivals, according to a recent announcement by Thailand's Ministry of Sports and Tourism. A major drag came from the slowdown in Chinese visitors, who accounted for just under 14 per cent of Thailand's total arrivals in the first five months of 2025. That marks a sharp drop from about 28 per cent in 2019 before the pandemic and 19 per cent in 2024, based on data from the Bank of America. On the other hand, Vietnam has emerged as an unexpected winner. Chinese arrivals to the country surged more than 78 per cent in the first quarter of 2025 from the same period last year, surpassing Thailand by about 200,000 visitors as tourists flocked to luxury resorts and beaches in popular coastal areas Da Nang and Nha Trang. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Thailand received nearly twice as many Chinese travellers in 2024 as its coastal neighbour. 'This might be the first time Thailand has been outpaced by another South-east Asian rival,' Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote on Jun 24. Vietnam led the region in overall tourism growth in the first four months of 2025, with arrivals up 23.8 per cent, while Malaysia came in second with 10.5 per cent growth on the year. Meanwhile, Indonesia experienced a 5.6 per cent rise, while the Philippines and Thailand recorded declines of 0.8 per cent and 0.3 per cent, respectively. Currency shifts, safety woes Currency shifts are part of the story, with the Chinese yuan falling 10.5 per cent against the Thai baht over the past year. This has diminished Thailand's longstanding allure as an affordable destination for Chinese tourists, wrote Zhu and Ferguson. By contrast, the yuan has appreciated against the Vietnamese dong and the Indonesian rupiah, offering Chinese travellers a spending boost in these countries. But the region's reputation as a whole has also taken a hit amid rising safety concerns. A kidnapping involving a Chinese actor in Thailand in January, as well as a March earthquake, have painted a less rosy portrait of China's southern neighbours, such as Laos, Cambodia and Thailand, which have already been battling reputations as hot spots for illegal activity. Meanwhile, relatively safer alternatives, including Japan and South Korea, have witnessed Chinese arrivals surge, with Japan reporting a 68 per cent rise in early 2025, while Chinese travel to South Korea similarly increased 10 per cent, Bloomberg Intelligence noted. Chinese woes While Malaysia, Vietnam and Singapore have seen upticks in Chinese arrivals, the numbers pale in comparison to pre-Covid Chinese visits to the region. Countries that have traditionally relied on mainland China as a significant driver of economic growth now face a double whammy as Chinese economic woes slow outbound travel, and external headwinds may push the remaining travellers into alternative markets. Most vulnerable are Malaysia and Thailand, where tourism accounted for around 14 per cent and 12 per cent of gross domestic product, respectively, in 2024. Hot spots such as Penang and Kuala Lumpur in Malaysia, and Bangkok and Phuket in Thailand, have traditionally been popular among Chinese tourists to the region. Grim economic prospects have also affected spending patterns among younger travellers from China, with a Bloomberg Intelligence survey of the country's travel sentiment noting that international travel budgets have fallen 23 percentage points from April last year. 'Younger travellers indicated greater caution about spending, likely a reflection of the tougher economic challenges they are facing,' the analysts wrote. 'Special forces travellers' Younger Chinese tourists, often calling themselves 'special forces travellers' on social media platforms, have opted for shorter, cheaper and more tightly packed itineraries. These travellers are spontaneous and driven by social media trends, making their habits harder to predict, said Chai Boon Sian, managing director and vice-president of international markets at On platforms such as Xiaohongshu or Douyin, for instance, seemingly random or everyday locations can attain viral popularity online as tourist attractions, such as an oddly colourful Maybank branch in Kota Kinabalu, Malaysia. 'Rather than the Merlion and the Petronas Twin Towers, we now see the Chinese chasing experiences in less-travelled places,' he said. Locations such as Cambodia, Brunei, Semporna in Malaysia, and Phu Quoc island in Vietnam have witnessed surprising demand, Chai told The Business Times. 'Before the pandemic, people travelled in large tour groups by the busloads. Now, younger Chinese travel in smaller groups and stay for shorter periods,' said Chai. This has made it difficult to forecast when a return to pre-pandemic volume within the region might happen, Chai noted. 'It's hard to say, given the changing travel preferences and group sizes,' he said. However, he expected the present slump to eventually rebound in the longer term. 'The sheer size of the Chinese population means that travel demand will remain strong, even with current economic headwinds.' Chai has observed a lasting shift in spending patterns that may spark hope for the tourism sector. 'Unlike older generations who budgeted carefully, the younger generation spend what they want,' Chai added. 'They're not afraid to spend first and figure out savings later.' Indeed, industry group World Travel and Tourism Council (WTTC) forecast that Chinese spending on international holidays would outpace pre-Covid-19 levels in 2025, after the country's reopening in 2024 fell short of spending forecasts by about 11 per cent. Rebound hopes The faltering demand for Chinese tourism is not something that local operators and governments are brushing aside; instead, they are taking concerted efforts to reboot demand from Asia's largest economy. The Tourism Authority of Thailand has initiated campaigns aimed specifically at attracting Chinese travellers to the kingdom. Its efforts include joint marketing campaigns with partners such as travel agencies and airlines. Meanwhile, the Thai tourism ministry has also planned tourist subsidies of up to 1.8 billion baht (S$70.6 million) to boost the country's attractiveness during the slow season. Private players are also working with governments to restore momentum. Last year, Singapore-based online travel agency tied up with Malaysia's tourism authority to draw more Chinese tourists to the country. Governments have also loosened visa requirements. Malaysia in April extended its visa-free policy for Chinese tourists visiting for up to 90 days by five years, having introduced the initiative in December 2023. The country reported about 3.3 million Chinese tourists arriving in 2024, up from 1.5 million in 2023. Likewise, Singapore in February 2024 exempted visa requirements for visits of up to 30 days for Chinese travellers. With higher populations of Mandarin speakers in the region, both Singapore and Malaysia have largely remained attractive to tourists due to linguistic familiarity, Chai explained. For this reason, service providers are starting to incorporate 'China-friendly' hospitality: from Mandarin-speaking staff and Chinese-style breakfasts in Vietnamese and Thai hotels, to retailers accepting Chinese payment services such as Alipay and having access to translation apps. 'Chinese tourists prefer familiar comforts,' Chai noted. Domestic travel booms Instead of venturing southward, an increasing number of Chinese tourists now opt for travel within the mainland. Less-expensive trips closer to home are becoming increasingly popular, including journeys by road and train, the WTTC found in an April report. Research by the council forecast that domestic travel spending will hit nearly US$1 trillion in 2025 in a 19 per cent jump from the previous year, as the country makes moves to boost domestic consumption through retail and tourism spending. Similarly, Bloomberg Intelligence's survey found that just 47 per cent of travellers had intentions to venture abroad in the third quarter – typically the most in-demand period for tourism. This was the lowest recorded figure across the last four quarters, wrote Zhu and Ferguson, while demand for domestic travel held steady at around 71 per cent.
Mint
23-06-2025
- Business
- Mint
Airlines Suspend Gulf Flights as War Disruptions Reach Dubai
Major global airlines extended flight cancellations to the Persian Gulf, disrupting air traffic to critical hubs such as Dubai after the US struck nuclear sites in Iran and Tehran vowed to retaliate. Singapore Airlines Ltd. said it would suspend service to Dubai until Wednesday night and warned more flights could be scrapped. British Airways temporarily added cancellations for Dubai and Doha, while Dutch carrier KLM said it suspended flights to Dubai, Riyadh and Dammam in Saudi Arabia until further notice. The airlines' decisions highlight the potential for a widening of the war between Israel and Iran after US President Donald Trump joined the fight by attacking Iran's nuclear sites. The dramatic escalation risks retaliation, potentially disrupting economies that had previously been shielded from the fallout of regional hostilities. Sign up for our breaking news alerts for the latest developments on the Israel-Iran war. Dubai, home to Emirates, and Doha, the capital of Qatar and its namesake airline, are major travel hubs that handle much of the traffic within the Middle East and form a crossroads for long-haul travel between Asia, Europe and North America. They had avoided previous suspensions that were contained to countries surrounding Israel and the skies over nations where Iran's missiles pass. Prior to the US strikes on Sunday, Tehran threatened to hit US bases in the Persian Gulf should Washington get involved, and close down the Strait of Hormuz, a vital oil-trade waterway bordering with the United Arab Emirates and Oman. Qatar hosts the largest US base in the region, while Bahrain is home to the US Navy's Fifth Fleet. 'A widening conflict around the Strait of Hormuz could threaten to disrupt global airline traffic, particularly if flight restrictions to key transfer hubs in Qatar and the UAE were to occur,' Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in a note. Excluding local carriers, Indian airlines including IndiGo, Turkish Airlines and British Airways are among the most exposed, they wrote. Shares of the major network carriers fell, including Air France-KLM, Deutsche Lufthansa AG and BA parent IAG SA in Europe. United Airlines Holdings Inc. and Delta Air Lines Inc. declined in US trading. Singapore Airlines has halted flights to Dubai from the city-state since Sunday over security concerns. British Airways diverted a Dubai-bound flight to Zurich after it reached Saudi Arabia's airspace in the early hours of Sunday, according to data from Flightradar24. Another jet returned to Heathrow after going as far as Egypt. The London-based carrier earlier halted routes to Bahrain through the end of the month due to operational constraints and airspace restrictions. With no clear view on next steps, some companies began to take precautions. Japan's biggest banks are considering evacuating employees, with Mitsubishi UFJ Financial Group Inc. beginning to pull out the families of staff. Japan's biggest bank has also halted unnecessary travel in and out of the region. Asian airlines have also taken steps to safeguard passengers and crews. Japan Airlines Co. plans to have flights between Tokyo's Haneda airport and Doha avoid airspace above the Persian Gulf and Gulf of Oman, adding about 20 minutes to journeys. Air India Ltd. will progressively avoid the use of certain airspace over the Persian Gulf in the coming days. The actions follow Trump's decision to undertake the US' first direct military action against Iran after decades of hostility, pushing the Middle East into uncharted territory. The possibility of further disruption will depend on how forcefully Iran retaliates. Trump has threatened more attacks if Tehran doesn't capitulate. Even before the US strikes, several American and European airlines had paused flights to the United Arab Emirates and Qatar after Israel started bombarding Iran. The skies over large swaths of the Middle East have been restricted several times during the past 20 months, making flying through Israel, Jordan, Lebanon, Syria, Iraq and Iran difficult. The closures have forced airlines to cancel flights on profitable routes, spend more on jet fuel and pass through countries they usually avoid like Afghanistan, as they avoid dangerous skies. It has also meant hundreds of disrupted flights and thousands of stranded passengers. Israel has started to allow outbound flights after halting them since its latest attacks on Iran starting June 13. Tel Aviv is expected to let about 1,000 passengers per day leave the country from Ben Gurion Airport and Haifa. The flights, which have a strict limit of 50 passengers per plane to prevent too many people from congregating and presenting a major target at the airport. The government will prioritize foreigners, diplomats and nationals needing to evacuate for life-saving or humanitarian reasons. The UK is organizing a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens and France said it also plans repatriation flights. 'Everything depends on how long this lasts,' Ziad Daoud, chief emerging markets economist at Bloomberg Economics, said of the fallout from the flight cancellations. 'If there was a stoppage of flights for a day or two, there won't be an impact, but if this is a prolonged thing then obviously it's an issue.' Dubai airport deferred all queries to the emirate's media office who said the hub remains fully operational for the time being, with the vast majority of flights running on schedule. With assistance from Danny Lee, Siddharth Philip, Nicholas Takahashi, Mihir Mishra and Dan Williams. This article was generated from an automated news agency feed without modifications to text.
Mint
23-06-2025
- Business
- Mint
Airlines halt Gulf flights as US enters Israel-Iran war; Dubai, Doha services affected: What will be its impact?
Major international airlines extended flight cancellations to the Persian Gulf, disrupting air traffic to critical hubs such as Dubai after the US struck nuclear sites in Iran and Tehran vowed to retaliate. Singapore Airlines said it would suspend service to Dubai until Wednesday night and warned more flights could be cancelled due to the severity of the situation. British Airways added cancellations to Dubai and Doha, while Air France-KLM reportedly will scrap flights to Dubai and Riyadh, reported Bloomberg. The airlines' decisions hinted at the potential for escalation of the war between Israel and Iran after US President Donald Trump joined the fight by attacking Iran's key nuclear sites. The dramatic escalation risks retaliation from Tehran, which will potentially disrupt economies that had previously been unaffected by the fallout of regional hostilities, said Bloomberg. Prior to the US strikes on Sunday, Tehran threatened to hit US bases in the Persian Gulf should Washington get involved, and close down the Strait of Hormuz, an important oil trade route. 'A widening conflict around the Strait of Hormuz could threaten to disrupt global airline traffic, particularly if flight restrictions to key transfer hubs in Qatar and the UAE were to occur,' said Bloomberg Intelligence analysts Eric Zhu and George Ferguson. Excluding local carriers, Indian airlines including IndiGo, Turkish Airlines and British Airways are among the most exposed, they wrote. Singapore Airlines has cancelled flights to Dubai from the city-state since Sunday over security concerns. British Airways diverted a Dubai-bound flight to Zurich after it reached Saudi Arabia's airspace in the early hours of Sunday. Another jet returned to Heathrow after going as far as Egypt, the news agency reported. Asian airlines have also taken steps to safeguard passengers and crews. Japan Airlines plans to have flights between Tokyo's Haneda airport and Doha avoid airspace above the Persian Gulf and Gulf of Oman, adding about 20 minutes to journeys. Air India will progressively avoid the use of certain airspace over the Persian Gulf in the coming days, reported Bloomberg. The actions come after President Donald Trump decided to attack Iran after decades of hostility. The possibility of further disruption will depend on how forcefully Iran retaliates. Trump has threatened more attacks if Tehran doesn't capitulate. The UK is organising a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens and France said it also plans repatriation flights, the news agency said.
Business Times
23-06-2025
- Business
- Business Times
Global airlines halt Middle East flights as war disruptions reach Dubai
[DUBAI] Major global airlines extended flight cancellations to the Persian Gulf, disrupting air traffic to critical hubs such as Dubai after the US struck nuclear sites in Iran and Teheran vowed to retaliate. Singapore Airlines said it would suspend service to Dubai until Wednesday (Jun 25) night and warned more flights could be scrapped due to the fluidity of the situation. British Airways added cancellations to Dubai and Doha, while Air France-KLM reportedly will scrap flights to Dubai and Riyadh. The airlines' decisions highlight the potential for a widening of the war between Israel and Iran after US President Donald Trump joined the fight by attacking Iran's nuclear sites. The dramatic escalation risks retaliation, potentially disrupting economies that had previously been shielded from the fallout of regional hostilities. Dubai, home to Emirates, and Doha, the capital of Qatar and its namesake airline, are major travel hubs that handle much of the traffic within the Middle East and form a crossroads for long-haul travel between Asia, Europe and North America. They had avoided previous suspensions that were contained to countries surrounding Israel and the skies over nations where Iran's missiles pass. Prior to the US strikes on Sunday, Teheran threatened to hit US bases in the Persian Gulf should Washington get involved, and close down the Strait of Hormuz, a vital oil trade waterway it borders with the United Arab Emirates and Oman. Qatar hosts the largest US base in the region, while Bahrain is home to the US Navy's Fifth Fleet. 'A widening conflict around the Strait of Hormuz could threaten to disrupt global airline traffic, particularly if flight restrictions to key transfer hubs in Qatar and the UAE were to occur,' Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in a note. Excluding local carriers, Indian airlines including IndiGo, Turkish Airlines and British Airways are among the most exposed, they wrote. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Shares of the major network carriers fell, including Air France-KLM, Deutsche Lufthansa and BA parent IAG in Europe. United Airlines Holdings and Delta Air Lines declined in premarket US trading. Singapore Airlines has halted flights to Dubai from the city-state since Sunday over security concerns. British Airways diverted a Dubai-bound flight to Zurich after it reached Saudi Arabia's airspace in the early hours of Sunday, according to data from Flightradar24. Another jet returned to Heathrow after going as far as Egypt. The London-based carrier earlier halted routes to Bahrain through the end of the month due to operational constraints and airspace restrictions. AFP and other outlets reported on the Air France suspensions. With no clear view on next steps, some companies began to take precautions. Japan's biggest banks are considering evacuating employees, with Mitsubishi UFJ Financial Group beginning to pull out the families of staff. Japan's biggest bank has also halted unnecessary travel in and out of the region. Asian airlines have also taken steps to safeguard passengers and crews. Japan Airlines plans to have flights between Tokyo's Haneda airport and Doha avoid airspace above the Persian Gulf and Gulf of Oman, adding about 20 minutes to journeys. Air India will progressively avoid the use of certain airspace over the Persian Gulf in the coming days. The actions follow President Donald Trump's decision to undertake the US' first direct military action against Iran after decades of hostility, pushing the Middle East into uncharted territory. The possibility of further disruption will depend on how forcefully Iran retaliates. Trump has threatened more attacks if Teheran doesn't capitulate. Even before the US strikes, several American and European airlines had paused flights to the United Arab Emirates and Qatar after Israel started bombarding Iran. The skies over large swaths of the Middle East have been restricted at several times during the past 20 months, making flying through Israel, Jordan, Lebanon, Syria, Iraq and Iran difficult. The closures have forced airlines to cancel flights on profitable routes, spend more on jet fuel and pass through countries they usually avoid like Afghanistan, as they avoid dangerous skies. It has also meant hundreds of disrupted flights and thousands of stranded passengers. Israel has started to allow outbound flights after halting them since its launched latest attacks on Iran starting Jun 13. Tel Aviv is expected to let about 1,000 passengers per day leave the country from Ben Gurion Airport and Haifa. The flights, which have a strict limit of 50 passengers per plane to prevent too many people from congregating and presenting a major target at the airport. The government will prioritise foreigners, diplomats, and nationals needing to evacuate for life-saving or humanitarian reasons. The UK is organising a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens and France said it also plans repatriation flights. BLOOMBERG
Bloomberg
20-06-2025
- Business
- Bloomberg
Bloomberg Daybreak Weekend: US GDP, Nike Preview
Bloomberg Daybreak Weekend with Tom Busby takes a look at some of the stories we'll be tracking in the coming week. - In the US – a look ahead to U.S GDP and personal spending data and Nike earnings. - In the UK – a look ahead to TheCityUK's annual conference. - In Asia – a look ahead to Bloomberg's China economic survey. ----------------------------------------------------------------- Guests: -Michael McKee, Bloomberg International Economics and Policy Correspondent, to preview next week's U.S GDP/personal spending data. - Poonam Goyal, Senior U.S. E-Commerce and Retail Analyst at Bloomberg Intelligence, to preview Nike earnings. -Leo Kehnscherper, Bloomberg European Asset Management Reporter, looks ahead to TheCityUK's annual conference. -Julian Harris, UK Economics Editor, looks ahead to TheCityUK's annual conference. - Eric Zhu, China Economist for Bloomberg Economics, discusses Bloomberg's China Economic Survey. -Karishma Vaswani, Bloomberg Opinion Columnist in Singapore, discusses her column: 'US Rethink on Australia Subs Is China's Win.'
