Boom in intra‑Asean travel; bust in Schengen, US visa applications

Manila: Visa-free travel within the Association of Southeast Asian Nations (Asean) has surged, latest numbers show as the bloc ramps up intra-regional tourism.

The numbers show a trend: In 2010, 47% of Asean tourists were from within; in 2022, Asean emerged from lockdowns with intra-Asean travel jumping to 50% of the total (i.e. clocking in half of the 120+ million visitors to the region).

In 2024, the Asean tourism sector further experienced a strong recovery, with visitor arrivals jumping by 30.6% to 123 million, the US-Asean Business Council reported. 

A strategic plan devised by the bloc (population: about 680 million) — anchored on “Feel the Warmth” call to action — envisions a vibrant regional tourism sector.

The travel trade now fuels up to 12% of GDP in many Southeast Asian countries.

The diverse group formed in 1967 with five founding members (Indonesia, Malaysia, Philippines, Singapore and Thailand) recognised the sector’s economic multiplier effect. 

It has since expanded to 10 members, with another (East Timor) now applying to join the group. 

In the “Manila Declaration” (1987), Asean leaders encouraged more intra-Asean travel and a development of a “viable and competitive” tourist industry, as key to regional development driver.

Diversity

Given the travel spike, a number of factors are at play.

Alongside high US and Schengen visa rejection rates that stir anxiety across Asia — especially for applicants from certain member countries, the Asean also continues to create favourable conditions for visitors.

Moreover, cross‑border land transport agreements and budget‑carrier networks (“Explorer Pass”) are helping enhance multi‑country itineraries, amid a push for both public and private sectors to deepen tourism development.

Investments

Investments in the sector are also up.

Between 2019 and 2023, investors announced a total of 1,943 foreign direct investment (FDI) projects in the region’s tourism cluster, reported fDi Markets, an  investment monitor of the Financial Times. 

These projects garnered an estimated $106.7 billion in capital investment and created an estimated 259,800 jobs. 

“Even though tourism investments have not fully returned to pre-pandemic levels, the future of the sector looks positive,” the report stated.

Boost to airlines

Regional tourism has seen Asean airlines soar, with notable improvements in tourism infrastructure and regional connectivity.

Meanwhile, outbound travel demand from Asean has surpassed 2019 levels for four straight quarters, particularly strong in Vietnam, the Philippines, Malaysia, and Singapore.

In 2023, Airbnb revealed top intra‑Southeast Asia (SEA) routes: Singapore to Malaysia, Singapore to Thailand, and Singapore to Indonesia.

Thailand welcomed 35 million tourists in 2024, Malaysia 22.5 million, Vietnam 17.5 million, while the Philippines received 14 million.

The Asian Development Bank (ADB) projects that local airlines recovered about 90% of capacity by end‑2023.

What’s shaping travel decisions?

Besides significant improvements in infrastructure (i.e. airports, transport, hotels), digitalisation has also reshaped travel.

For example, platforms like Airbnb has doubled Asean bookings in 2022 vs 2020.

Travel decisions are also increasingly driven by cooking, cultural immersion, sustainability, and digital inspiration.

Asean travel searches spike around festivals (e.g., Songkran, Ramadan) and summer holidays, according to Google.

Solo, group and long-stay travel

Notably, there’s been a rise of solo, group and long‑stay travel, too. In 2022, Asean saw a 260% increase in solo travellers, and group travel more than tripled, signaling pent‑up demand for shared experiences, as per Daily Travel News Asia.

Long stays over 28 days also grew by 250%, suggesting travelers are opting for deeper cultural immersion.

What would give regional tourism an extra boost?

The ADB report also emphasised the opening of secondary city routes within the region.

Alongside the push for further liberalisation of tourism services (Philippines is privatising 15 airports, starting with Manila's NAIA and Bohol), the region is consolidating investments in tourism infrastructure and products showcasing a diverse, balanced and unique Asean experience.

As the regional economy continues to regain its footing, with new transport infrastructure in place, this could lead to the emergence of more subregional destinations and corridors, further widening the offerings of the diverse region.