Vietnam Gains, Thailand Slips as Chinese Tourists Shift Preferences in South-east Asia
Chinese travellers are reshaping South-east Asia’s tourism dynamics, favouring destinations like Vietnam and Malaysia over long-standing favourite Thailand. Amid economic uncertainty and evolving travel habits, Vietnam is emerging as a top draw, while Thailand struggles with fewer Chinese arrivals due to currency issues, safety concerns, and slowing outbound travel from China.
Once the primary force behind tourism in the region, Chinese visitors are returning in lower numbers post-pandemic, leading to uneven recovery across countries. From January to June 2025, Thailand welcomed 16 million tourists — a 4.2% decline year-on-year — with Chinese travellers accounting for under 14% of the total, down sharply from 28% in 2019 and 19% in 2024.
In contrast, Vietnam saw a 78% surge in Chinese arrivals in Q1 2025, surpassing Thailand by 200,000 visitors, driven by interest in beach destinations like Da Nang and Nha Trang. Bloomberg Intelligence analysts called it possibly the first time Thailand has been overtaken by a regional rival in attracting Chinese tourists.
Vietnam also led the region in overall tourism growth for Q1 2025 at 30%, followed by Malaysia (16%). Thailand and Indonesia grew just 2%, and the Philippines saw a slight decline.
Currency & Safety Issues Drive Shifts
Currency movements have played a major role. The Chinese yuan has dropped over 10% against the Thai baht, reducing Thailand’s affordability for Chinese tourists. Conversely, the yuan has appreciated against the Vietnamese dong and Indonesian rupiah, enhancing purchasing power in those countries.
Safety is also a concern. Incidents such as the kidnapping of a Chinese actor in Thailand and a March earthquake have dampened perceptions of safety in destinations like Thailand, Laos, and Cambodia — already seen by some as hotspots for illicit activity. As a result, Chinese tourists are increasingly choosing Japan and South Korea, where arrivals have surged by 68% and 10% respectively in early 2025.
Tourism Reliance and Shifting Habits
Despite growth in places like Singapore, Malaysia, and Vietnam, Chinese visitor numbers are still far below pre-Covid levels. Countries heavily reliant on Chinese tourism — notably Thailand and Malaysia, where it contributes around 12–14% of GDP — are feeling the impact the most.
Younger Chinese travellers, dubbed “special forces travellers,” are now favouring shorter, budget-friendly, and trend-driven trips. Viral locations — like a colourful Maybank branch in Kota Kinabalu — often draw more attention than iconic landmarks. These travellers typically move in small groups and spend fewer days abroad, complicating demand forecasting.
Although international travel budgets have dropped — with Bloomberg noting a 23-point decline among younger tourists — their impulsive spending habits give the industry some optimism. “This generation spends first, saves later,” says Trip.com executive Chai Boon Sian.
Rebounding Through Strategy
Governments and travel companies are responding with targeted campaigns. Thailand is rolling out marketing efforts and subsidies worth 1.8 billion baht (~S$68.6 million), while Malaysia and Singapore have extended visa-free entry for Chinese tourists — up to 90 days and 30 days, respectively. Malaysia welcomed 3.3 million Chinese tourists in 2024, up from 1.5 million in 2023.
Businesses are adapting as well — offering Mandarin-speaking staff, Chinese breakfasts, and familiar payment methods like Alipay. “Chinese travellers seek comfort and familiarity,” Chai explains.
Domestic Travel Booms Instead
Amid these international shifts, many Chinese tourists are turning to domestic travel. Local tourism is booming, with 2025 spending projected to hit nearly US$1 trillion — a 19% increase year-over-year — driven by state efforts to stimulate consumption. Bloomberg data shows that only 47% of Chinese tourists planned to travel abroad in Q3 2025, while domestic travel intentions held steady at 71%.
Though international numbers remain soft, the tourism sector holds out hope for a rebound in Chinese travel, driven by the country’s vast population and the evolving habits of its younger generations.
