The Organization for Economic Cooperation and Development (OECD) reported that the ASEAN travel and tourism industry contributed approximately 12% of the region's gross domestic product before the COVID-19 pandemic. A recent report by the Asian Development Bank (ADB) projects the region’s gross domestic product (GDP) to expand by 4.7% in 2024, up from 4.3% in 2023. The region’s tourism industry, expected to continue to recover in 2024, is poised to be a valuable driver of the region’s GDP growth.
According to UNWTO World Tourism Barometer, international travel is anticipated to return to pre-pandemic levels in 2024, fostering an increase in international travel to ASEAN tourism destinations. This resurgence in international travel is particularly crucial for the overall GDP of ASEAN economies, including Vietnam, Thailand, Malaysia, and Indonesia.
Domestic tourism has reemerged as a cornerstone of Southeast Asia's travel sector following the COVID-19 pandemic. Indonesia, as an example, is actively promoting domestic travel as an economic development strategy. The country’s Ministry of Tourism and Creative Economy has set a target of 1.4 billion domestic holiday trips in 2023. To implement these efforts further, Indonesia has implemented training programs aimed at supporting the creation of up to 4.4 million new tourism jobs by 2024. Indonesia’s visionary goal of attracting 14.3 million foreign tourists for 2024 also underscores ASEAN’s commitment to sustainable tourism practices.
China’s visa free deals with Thailand, Malaysia, and Singapore continues to attract more visitors to ASEAN countries in 2024. Furthermore, the increasing air capacity to both India and China is expected to play a pivotal role in propelling the ASEAN tourism recovery throughout the year.
