Pegasus Business and Market Advisory - Tourism Market in Southeast Asia

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Pegasus Business and Market Advisory is an independent firm offering services in business consulting and market research on Asia-Pacific.

23 June, 2006

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Business and Market Snapshots - Southeast Asia

Tourism Market in Southeast Asia - Malaysia, Thailand, Singapore, Indonesia, Vietnam, Philippines and Brunei, July 2005

The tourism industry in Southeast Asia is estimated at more than US$35 billion in tourism receipt accounting for 4.5% of the region's GDP in 200.4 Thus countries in Southeast Asia aggressively market their country as tourist destinations to gain their share of the regional tourism market. However, tourist arrivals in the region declined by nearly 17% in 2003 due to the SARS outbreak. From 1998 to 2004, tourist arrivals to the region increased at an average of 9.0% annually.

International tourist arrivals in 7 selected Southeast Asian countries namely Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam totalled 36.4 million in 2003. The number increased by 29.9% to 47.4 million in 2004 after the SARS outbreak subsided. Nearly 40% of the tourists arrivals are from other Southeast Asian countries while another 30% from other countries in Asia. Arrivals from outside Asia include Europe, North America and Oceania.

Malaysia. Malaysia recorded the highest number of visitor arrivals in 2004 with most tourists coming from fellow Southeast Asian countries. Main markets for Malaysia's tourism industry are from other countries of Southeast Asia. The proportion of tourists from the region increased from 76.1% in 2003 to 78.2% in 2004. Malaysia caters to broad segments of the tourism market ranging from the ultra-modern Petronas Twin Towers in Kuala Lumpur, modern shopping malls across Malaysia, the beach resorts of Langkawi to eco-tourism such as the Sepilok Orang Utan Sanctuary in Sabah.

Thailand. Thailand secured the second highest number of tourist arrivals in 2004 but unlike Malaysia, Thailand's main market for tourism is from outside the Southeast Asian countries. Tourists from outside Southeast Asia accounted for 73.7% of all visitors to Thailand in 2003 and the proportion increased marginally to 75.0% in 2004. Besides Bangkok, cities popular with tourists are Chiang Mai which has numerous temples and Nakhon Pathom where the nearly-130 metre tall “Phra Pathom Chedi” or Buddhist monument is located. Popular destinations also include beach resort namely Pattaya, Phuket, Ko Samui and Ko Si Chang.

Singapore. Tourists from outside Southeast Asia make up the larger proportion accounting for 62.3% in 2003 and 63.0% in 2004. Singapore markets itself as a modern and clean city with numerous urban attractions. Singapore is famous as a shopping destination with Orchard Road being one of the well-known places for a wide range of international brands. Chinatown and Little India have less modern shops but popular with tourists for their cultural settings. Nightlife in Singapore and popular among tourists and expatriates include the riverside at Clark Quay.

Indonesia. Indonesia receives an almost equal proportion of tourists from Southeast Asia and other parts of the world. Tourists from Southeast Asia made up 47.2% of the visitors to Indonesia in 2003 and reduced slightly to 46.0% in 2004. Indonesia markets its cultural heritage and countryside to attract tourists though those from Southeast Asia often visit Indonesia for its ethnic cuisines and shop for locally produced goods. Popular destinations outside Jakarta include Bali and Lombok islands, ruins of the Buddhist holy city of Borobodur, highlands of Puncak and Lore Lindu National Park in Sulawesi.

Vietnam. The number of international visitors to Vietnam increased by 20.6% in 2004. Vietnam's main markets for tourism are from countries outside Southeast Asia. These visitors accounted for 86.5% of the tourist arrivals in 2003 and increased to 88.7% in 2004. Vietnamese towns and cities popular with tourists include Hanoi (famous for its colonial French architecture), Ho Chi Minh City, Dalat and Dien Bien Phu. Cam Ram Bay is famous for its beaches while Halong Bay is famous for its numerous islands. Another popular tourist destination is visits to war sites during the Vietnam War.

Philippines. Similar to Vietnam, most international visitors to the Philippines are from countries outside of Southeast Asia. The Philippines, which is closer to Northeast Asia, receives more visitors from the region than from Southeast Asia. In 2003, the proportion of tourists from outside Southeast Asia stood at 93.1% and this proportion was virtually unchanged at 93.5% in 2004. Popular destinations outside Manila include golf courses especially among Japanese tourists, beaches and islands such as Boracay Island, Lake Sebu and the town of Viriato.

Brunei. Brunei recorded relatively the lowest number of international visitors and recieves a smaller proportion of visitors from outside Southeast Asia. The government places tourism as an industry to develop but has not created enough attention to attract the tourist market outside Southeast Asia. The proportion of international visitors from Southeast Asia was the same at 90.4% in both 2003 and 2004. Visitors to Brunei will usually visit the theme park in Jerudong, officially known as the Jerudong Park Playground.

Pegasus Business and Market Advisory (PBMA) provides business and marketing research and advisory services focussing on Southeast Asia namely Malaysia, Singapore, Thailand, Indonesia, Philippines, Vietnam and Brunei. Contact corporate@pegasus-asia.com for further information.

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Source: Respective country statistics