COVID-19 interrupted strong growth in international arrivals to ASEAN region
Prior to COVID-19, inbound flows to the ten ASEAN member countries were growing strongly, seeing a compound annual growth rate (CAGR) of 7.7% between 2016 and 2019, to reach 136.9 million international arrivals. Many factors had contributed to this notable growth, including ASEAN’s heritage and natural attractions, improved tourist facilities, affordable connectivity, a rising consumer class and geographic proximity to China and India. A significant portion of this growth can be attributed to ASEAN’s largest destination markets, Thailand and Malaysia, which combined, attracted nearly half (48.3%) of international arrivals to ASEAN in 2019, representing 66.2 million. However, other ASEAN member countries were experiencing rapid growth in inbound flows prior to COVID-19.
Vietnam had the highest growth rates, with inbound flows growing at a CAGR of 21.6% between 2016 and 2019 to reach 17.9 million international arrivals in 2019. Further spurring growth in inbound flows to the ASEAN region, Myanmar (CAGR 2016-19: 14.9%), Brunei (CAGR 2016-19: 13.8%), Indonesia (CAGR 2016-19: 12.1%) and the Philippines (CAGR 2016-19: 11.5%) also experienced high levels of growth in international arrivals, as measured by CAGR, before COVID-19.
At the onset of the global pandemic, inbound flows to the ASEAN region plummeted, with international arrivals declining by 78.8% YoY to 29.0 million in 2020. Nevertheless, as member countries go through a phased reopening and travel begins to resume worldwide, GlobalData forecasts that inbound flows will grow at a CAGR of 10.7% between 2022 and 2024, to reach 142 million international arrivals by 2024.
Major companies active in the ASEAN tourism market
Lion Air is the largest player in the Indonesian airline market, accounting for 35% of all seats sold. Thai Airways holds that accolade in Thailand with 32.7%, while Singapore Airlines dominates its home market (45.5% of seats sold)
The lodging market is more fragmented but is characterized by the presence of major global groups and their various brands. Accor (312 properties), Marriott (173 properties) and IHG (93 properties) make up three of the top four players.
Recovery in the region is well underway, Malaysia is expected to see the strongest rebound
As travel begins to resume worldwide, GlobalData forecasts project that inbound flows will grow at a CAGR of 10.7% between 2022 and 2024, to reach 142.0 million international arrivals by 2024. However, the ASEAN region’s recovery trajectory is not likely to be linear as the situation globally is fluid and growth rates are likely to fluctuate. Each country within the ASEAN region may go through phased reopening at its own pace and there are likely to be setbacks as circumstances change, resulting in an iterative recovery process. Malaysia is forecast to see the most dynamic growth between 2022 and 2024, registering a projected compound annual growth rate (CAGR) of 13.2% to reach 26.9 million arrivals in 2024.
Access the full report here.
Singapore
United Kingdom
France
Indonesia
United States of America
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer
Contact the team or request a demo to find out how our data can drive your business forward