As Asia’s tourism market starts to recover after the end of the COVID pandemic, Hilton’s Asia-Pacific president Alan Watts is noticing a change in the guests checking into his hotels across the region—they’re increasingly not from very far away. And they’re frequent visitors: For example, some of Asia’s leisure travelers are heading to the Indonesian island resort of Bali three times a year.
“I’ll give you the hard stats. 10 years ago, inter-Asia travel only made up four out of 10 arrivals. The other six were coming from long-haul markets,” Watts says. “Now, [inter-Asian travelers are] eight out of every 10 arrivals that walk through the door.”
Watts is bullish about Hilton’s prospects in Asia. In his interview with Fortune, the Hilton executive doubled down on an earlier prediction that the hotel conglomerate would have at least a thousand properties across the Asia-Pacific region by 2025. That target is “factual,” not “aspirational,” he says.
“We’ve got 700 hotels trading today, and another 800 under construction in various different parts of Asia,” he says. “We [will] cross the 1000 hotel mark somewhere in 2025.” (Hilton hotels are a combination of Hilton-owned properties, Hilton-managed hotels on properties owned by third parties, and franchised hotels).
Asia-Pacific economies were some of the last to open up after the COVID pandemic. Several Asian countries imposed controls on international arrivals, requiring lengthy quarantines if not barring entry entirely. The Popular tourist destination of Japan only opened up to foreign tourists in October 2022; China, a major source of visitors, only got rid of its quarantine regime in January this year.
The collapse of international travel was an existential crisis for many countries in Southeast Asia, which rely heavily on the tourism sector. The travel industry contributes about 12% to the GDP of Southeast Asian economies, according to the OECD.
“The industry took such a hit over COVID,” Watts says. “In Asia, the industry has had decades worth of boom so many of our team members had never seen a downtown.”
But with the end of COVID restrictions, both leisure and business tourism is starting to return.
The region is still behind Hilton’s other major markets, but not by much. Last quarter, room occupancy at Hilton’s Asian hotels stood at 74%, just behind the U.S. and five percentage points behind Europe. Asian room occupancy also increased by 12 percentage points from the same period a year ago, which Watts attributes to Asian economies finally lifting their COVID restrictions from late 2022 onwards.
“One hundred million people every year join the consumer class [in Asia]. So to some extent, travel and tourism is just getting started, and the customer of tomorrow is a pan-Asian customer,” Watts says.
Short trips are fueling Asia’s travel boom. Watts explained that leisure travel in Asia tends to be short-haul: perhaps Bali three times a year, Hong Kong once over Chinese New Year, and the Maldives once a year. There’s also more business-leisure, or “bleisure,” travel, where business travelers may bring their families along for an extra weekend at their destination.
Younger Asian travelers are also seeking out “experiences” and are more open to exploring new places, he says. (That’s not always a good thing for tourist destinations: Hong Kong’s retail-heavy tourism sector is struggling as post-COVID tourists from mainland China are now more interested in social-media-friendly experiences, rather than the city’s shopping malls).
A new destination: Vietnam
Hilton has earmarked Vietnam as a growth market. The company’s Asia president says the Southeast Asian country still has the allure of being “undiscovered,” compared to more established destinations like Thailand. Business travel may also pick up as more firms move operations like manufacturing to the country.
“Even a decade ago, people wouldn’t have thought of Phu Quoc, they wouldn’t have thought of Da Nang, as destinations to put on their possible lists,” Watts says. “There were virtually no hotels” in the two Vietnamese beach resorts.
“Now every major brand in the world is in Phu Quoc, and the majority of them are also in Da Nang. If they’re not there today, they’re planning to build tomorrow,” he says.
Vietnam attracted a record 18 million international arrivals in 2019, before the COVID pandemic. The government is now trying to get back to those numbers: The country has attracted over 11 million visitors this year so far, ahead of the government’s target of 8 million. Vietnam has made visa applications easier this year to help revive the tourism sector.
A new source of tourists: India
If Vietnam is an up-and-coming destination, then India is an up-and-coming source of tourists.
India’s fast-growing economy, and its massive, young population are boosting the potential of the country’s outbound tourism market, the consulting firm McKinsey noted in a November report. The country has already recovered over 60% of its pre-pandemic levels of outbound travel.
“India is a fantastic leisure market. And when it travels, it travels with generations,” Watts explains, with “parents, kids and grandchildren” all traveling together.
China looks inward
But one country still dominates Hilton’s regional forecasts: China. The country, before the COVID pandemic, was one of the largest sources of international visitors, supporting tourist economies in Southeast Asia and beyond.
Eighty percent of Hilton’s business in China is domestic, in second, third and fourth tier cities, especially around the country’s business parks. The make-up of the domestic Chinese leisure market is changing, with what Watts calls a “transition towards experiences.”
Visa backlogs and a lack of flights are keeping Chinese travelers at home. And while that might be bad news for the foreign destinations that used to attract Chinese tourists, a shift to domestic travel isn’t necessarily bad for Hilton, which has over 500 hotels in the country and another 700 hotels in the pipeline.
Watts isn’t worried about China’s slowing economy. “I think retail concerns are what people are focused on,” he explains. “We’re just not seeing it in the travel and tourism space.”
The China Tourism Academy forecasts that the country’s domestic tourism market will hit 5.2 trillion yuan, or $724 billion, this year, or just over 90% of the 2019 total. The CTA, a government research institute, forecast that domestic travel would only recover to around 70% of 2019 levels earlier this year.
“If the Chinese leisure consumer is having reservations around travel, it’s certainly not in the short term,” Watts says.
Hilton APAC president sees Vietnam, India as travel bright spots
- Advertisment - 
Recent Comments
on Boise State vs. Nevada live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Big Tech companies will cover travel expenses for employees’ medical procedures, including abortion
on Biden: ‘At this point I’m not’ planning to visit East Palestine, Ohio, after toxic train derailment
on Best places to travel in 2023: National Geographic unveils list of top 25 destinations for next year
on Ask Amy: Should I keep my RSVP simple and just gracefully decline or say I can’t afford the trip?
on As more abortion bans occur, many patients must travel hundreds of miles for care – or be stranded
on Air Force vs. Utah State live stream, how to watch online, CBS Sports Network channel finder, odds
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer
on A missile fired by Houthis strikes a US-owned vessel off Yemen in the Gulf of Aden, raising tensions
on A heavy wave of Russian missile attacks pounds areas across Ukraine, killing at least 4 civilians
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on $12M Worth Dawn Staley Sports Pricey Jordans While Witnessing Joel Embiid’s Suffering Against Knicks
on Dozens of boats cruise the Seine in a rehearsal for the Paris Olympics’ opening ceremony on July 26
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on Sports World Hails ‘Superwoman’ Lindsey Vonn for Her Grand Comeback Despite Career-Changing Injury
on How Does Jack Nicklaus Travel? Exploring the Private Jets Owned by the ‘Golden Bear’ Over the Years
on College basketball rankings: Kansas helps Big 12 lead conference race for most Top 100 And 1 players
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer
on Lamar Jackson: NFC side tipped to be ‘overwhelming’ Super Bowl favourites if they signed Ravens QB
on ICC T20 World Cup 2022: “Love Cricket At All Levels, I’ll Watch Any Cricket, And Love Going There”
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on Following Exchange With Caitlin Clark At News Conference, Columnist Won’t Cover Indiana Fever Games
on Inside Out Mini Jawbreaker Puzzle Game from Disney Cruise Line Now Available at Walt Disney World
on Katherine Paprocka allegedly embezzled nearly $600k from school for family vacations, IVF treatment
on Johnny Knoxville Talks Jackass Stunts And How They Compare To Tom Cruise’s Mission: Impossible Work
on Napoli owner admits he ‘knew’ Victor Osimhen would end up at ‘Real Madrid, PSG or one English club’
on Camilla Parker Bowles Revealed the ‘Nicest Thing’ She and Prince Charles Do When They Travel Is Free
on Russian cruise and ballistic missiles kill 4 in Ukraine and Ukrainian rockets kill 2 in Russian city
on Can Tom Cruise Save The Box Office Again With Mission: Impossible – Dead Reckoning? An Investigation
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on College basketball rankings: Kansas helps Big 12 lead conference race for most Top 100 And 1 players
on Inside Floyd Mayweather’s Lavish Lifestyle: A Look at His Stunning Car Collection and Private Jet
on Cruise guest gets stuck on ‘claustrophobic’ water slide suspended over ocean: ‘That is super scary’
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Big Tech companies will cover travel expenses for employees’ medical procedures, including abortion
on Russian cruise and ballistic missiles kill 4 in Ukraine and Ukrainian rockets kill 2 in Russian city
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer
on GameFly Sale Offering Nintendo Switch Sports at a Mind-Blowing Price, Don’t Miss the Opportunity!
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on Sports World Hails ‘Superwoman’ Lindsey Vonn for Her Grand Comeback Despite Career-Changing Injury
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on ‘Pokémon Scarlet’ and ‘Violet’ Fan Theories Suggest Legendary Time Travel, Alternate Dimension Plot
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on Inside the Michael Jordan ‘Air’ movie, plus why NFL, others are buying into the sports film industry
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on How Does Jack Nicklaus Travel? Exploring the Private Jets Owned by the ‘Golden Bear’ Over the Years
on Hollywood Reporter: Tom Cruise negotiated with movie studios over AI before the actors strike began
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on Dozens of boats cruise the Seine in a rehearsal for the Paris Olympics’ opening ceremony on July 26
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Carlos Sainz’s Soccer Fanboy Emerges as Spaniard Shares Defining Moment With This Real Madrid Legend
on Biden: ‘At this point I’m not’ planning to visit East Palestine, Ohio, after toxic train derailment
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on Ahead of big sports weekend, dispute with Disney leaves millions of cable subscribers in the dark
on A heavy wave of Russian missile attacks pounds areas across Ukraine, killing at least 4 civilians
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Army vs. Coastal Carolina live stream, how to watch online, CBS Sports Network channel finder, odds
on AL Rookie of the Year Julio Rodriguez Spreads Joy and Sportsmanship to the Youth of Loma de Cabrera
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer