[1/2] Members of the Shivkumar-Manjunatha family from India walk and take pictures during their first time familiy holiday trip to Thailand at Patong beach in the island of Phuket, Thailand July 14, 2023. REUTERS/Jorge Silva
BANGKOK/NEW DELHI, July 17 (Reuters) – Indian tourists are streaming into Southeast Asia, cementing the world most populous country’s position as a key growth market for a travel and tourism sector that is feeling the pinch of China’s slower-than-expected re-opening.
From airlines like IndiGo (INGL.NS) and Thai Airways (THAI.BK) to hospitality chains offering thousands of rooms, companies are tapping into India’s burgeoning middle-class and growing spending power, executives and analysts said.
“Southeast Asia is obviously very well positioned for a lot of the growth that is inevitably going to come from India,” aviation analyst Brendan Sobie told an industry conference last month.
The travel and tourism industry is critical for several Southeast Asian economies and contributed about 12% of the region’s gross domestic product before the COVID-19 pandemic. It also employs more than 40 million of the region’s people, according to the Organisation for Economic Cooperation and Development.
For a decade or so, the sector was fuelled by China but official data from four Southeast Asian countries shows a weak recovery with the number of Chinese visitors in May at least 60% lower than the same month in 2019.
Reuters Graphics
A long-term increase in Indian tourists would lead to a recalibration of airline capacity, hospitality offerings and tourism operators – early signs of which are underway, according to industry members.
India could emerge as the next China “in terms of outbound tourism growth” over the next decade, though connectivity would be constrained by fewer airports there, the Asian Development Bank (ADB) said in a May report.
“India could become the story in the decade after the pandemic for tourism,” it said.
‘STRONG UPTICK’
In Thailand, where tourism is an economic mainstay, the number of Indian tourists – though fewer than Chinese in absolute terms – is only about 14% lower than it was in 2019.
In 2019, Chinese visitors spent about $197 a day in Thailand and Indians spent about $180, with both visiting for about a week, according to Thai government data.
Tanes Petsuwan, deputy governor of the Tourism Authority of Thailand said 1.6 million Indians were expected to visit the kingdom this year.
In May, more Indians than Chinese visited Singapore while that same month nearly 63,000 Indians visited Indonesia compared with just over 64,000 Chinese.
“Indian routes are very strong,” said Chai Eamsiri, chief executive officer of Thai Airways, which is flying 14 flights a week to China – down from about 40 before the pandemic – and 70 a week to India.
Some of a possible doubling of Thai’s narrow-body aircraft fleet over next decade would be deployed to India, Chai said.
Indian budget carrier IndiGo, which has ordered 500 Airbus (AIR.PA) narrowbody jets to meet regional demand, said it had seen a “strong uptick” in routes between India and Southeast Asia that it connects with more than 100 flights a week.
“We are introducing flights to Jakarta in August, as well as additional frequencies to Singapore,” said Vinay Malhotra, IndiGo’s head of global sales.
Overall, seat capacity on scheduled flights between China and Southeast Asia was 57% below pre-COVID levels as of June but flights from India to the region had recovered to about 90%, Sobie said.
Indians are helping to sustain a post-pandemic rebound for hospitality chains, including Minor Hotels, which has 45 properties in Southeast Asia with more than 6,000 rooms.
“The Indian market is consistently one of our top source markets,” said CEO Dillip Rajakarier, adding that the hotel chain – part of Bangkok-listed Minor International (MINT.BK) – had intensified marketing across India.
‘TIME AND MONEY’
In June, Pratyush Tripathy and four friends hopped on a two-and-a-half hour flight from the Indian city of Kolkata to Bangkok for a five-day holiday, much of it in and around the beach resort of Pattaya.
The trip cost between 40,000 and 60,000 Indian rupees ($484-$726) each, about the same as a flight to Europe, said Tripathy.
“It will save you time and also money,” said the 33-year-old software professional, explaining their decision to visit Southeast Asia, where Indians can usually get visas much more easily than they can for European countries and the United States.
Flight bookings from India to Bangkok jumped by 270% between January to June this year compared with the same period in 2019, according to Indian online travel portal Cleartrip.
Thailand’s central bank expects 29 million visitors this year and 35.5 million in 2024. That’s still fewer than a record of nearly 40 million in 2019, but the Bank of Thailand forecasts that the sector will help drive overall economic growth to 3.6% in 2023 and 3.8% next year, compared with 2.6% in 2022.
To cash in on the surge, Thailand’s tourist industry must understand Indians’ preferences, particularly around food and entertainment, said Somsong Sachaphimukh, vice president of the Tourism Council of Thailand.
“If we don’t adjust quickly, neighbouring countries will draw in those visitors,” Somsong said. “Thailand has a lot to offer, so this is a big opportunity.”
($1 = 82.6122 Indian rupees)
Additional reporting by Pasit Kongkunakornkul in BANGKOK, Stefanno Sulaiman in JAKARTA, Neil Jerome Morales in MANILA; editing by Robert Birsel
Our Standards: The Thomson Reuters Trust Principles.
Indian tourists flock to Southeast Asia as China’s reopening falters
- Advertisment - 
Recent Comments
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