India is the 'next China' of tourism

Indian tourists are flocking to Southeast Asia, helping to cement its position as an important growth market for the post-pandemic tourism industry.

The Asian Development Bank (ADB) has said that India could emerge as “the next China” in terms of “international tourism growth” over the next 10 years, despite limited connectivity due to fewer airports. ADB experts also said that India could become the “main character” mentioned in terms of tourism development after the pandemic.

Airlines such as IndiGo and Thai Airways, hotel chains with thousands of rooms and travel agencies all point to the growing numbers and spending power of Indian tourists. Analyst Brendan Sobie of the Singapore-based CAPA Centre for Aviation says Southeast Asia is well placed to tap into the growth potential of this market.

The travel and tourism industry is vital to several Southeast Asian economies, contributing about 12% of the region's GDP before the pandemic and providing more than 40 million jobs, according to the Organization for Economic Cooperation and Development.

For about a decade, China has been the region’s largest source of international visitors. But official data from four Southeast Asian countries—Thailand, Singapore, Indonesia and the Philippines—shows that the recovery in Chinese visitors from the pandemic has been slow. In the past five months, the number of Chinese tourists traveling internationally was 60% lower than the same period in 2019.

In Thailand, where tourism is a pillar of the economy, the number of Indian visitors after the pandemic is almost the same as in 2019, when it was only 14% lower. Data from the Thai government shows that in 2019, each Chinese visitor spent $197 a day and the Indian visitor spent $180. The average length of stay for both groups of visitors was one week.

Tanes Petsuwan, deputy governor of the Tourism Authority of Thailand (TAT), expects to welcome 1.6 million Indian visitors this year. In May, Singapore recorded more Indian visitors than Chinese visitors. Meanwhile, the number of Indian visitors (63,000) to Indonesia was roughly equal to that of Chinese visitors (64,000).

There are now 14 flights a week to China, down from about 40 before the pandemic, while there are 70 flights a week to India, according to Chai Eamsiri, CEO of Thai Airways. Mr Chai said the number of Thai narrow-body aircraft flying to India is likely to double over the next decade.

Sobie pointed out that capacity on flights between China and Southeast Asia was 57% lower than in the same period in June 2019. But flights from India to the region recovered by about 90%.

Indian tourists take photos at Patong beach, Phuket, Thailand on July 14. Photo: Reuters — Indian tourists take photos at Patong beach, Phuket, Thailand on July 14. Photo: *Reuters*

Indian budget airline IndiGo has ordered 500 narrow-body jets from Airbus to meet demand for regional travel. It is “seeing a strong increase” on its India-Southeast Asia routes, with more than 100 flights per week.

Vinay Malhotra, IndiGo's global sales director, said it will launch flights to Jakarta (Indonesia) in August and increase the number of flights to Singapore.

Not only airlines, Indian tourists are also helping hotel chains recover after the pandemic. CEO Dillip Rajakarier of Minor Hotels, a hotel chain with 45 properties in Southeast Asia with more than 6,000 rooms, said that the Indian market has always been one of their top source markets. Their hotel chain has increased marketing and presence across India.

In June, Pratyush Tripathy and four friends took a 2.5-hour flight from Kolkata, India, to Bangkok, Thailand, for a five-day vacation. The trip cost $484 to $726, the same as a ticket to Europe. “I saved both time and money,” Tripathy, 33, said, citing the advantage of traveling to Thailand instead of Europe. In addition, Southeast Asia’s easier visa application process is a plus for Indian tourists.

According to information from online travel company Cleartrip India, the number of bookings to Bangkok in the first 6 months of the year increased by 270% compared to the same period in 2019. Somsong Sachaphimukh, vice president of the Tourism Council of Thailand, said that to make money from Indian tourists, the tourism industry must understand Indian preferences, especially when it comes to food and entertainment.

“If we don’t adjust quickly, our neighbors will attract this type of visitor. This is a big opportunity for Thailand because there are so many things to serve them,” Somsong said.

Anh Minh (According to Reuters )

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