9-2-2024 (SINGAPORE) Wei Ming, a Chinese engineer and aviation enthusiast, represents the ideal visitor that Singapore, Malaysia, and Thailand are targeting. With Singapore recently lifting visa requirements for Chinese citizens, Wei, aged 44, altered his travel plans and opted for a six-day holiday in Singapore instead of Australia. While considering other visa-free destinations like Bangkok and Kuala Lumpur, Wei ultimately chose Singapore due to the upcoming Singapore Airshow, which will be open to the public from February 24.
As the first Spring Festival holiday since Beijing lifted pandemic-related travel restrictions approaches, thousands of Chinese citizens are preparing to travel abroad. Singapore, Thailand, and Malaysia are banking on their unprecedented visa waivers to attract a significant number of these visitors along with their much-needed spending.
Chinese travelers often express frustration with the lengthy visa application process and the associated hassles. Currently, the Chinese passport ranks 62nd on the Henley Passport Index, which assesses the number of visa-free destinations available to passport holders among 199 countries.
While visa waivers can enhance a destination’s appeal, analysts predict that China’s slowing economic growth, job insecurities, and declining income may limit outbound travel. John Grant, chief analyst at travel data firm OAG, suggests that economic hardships and reduced disposable income are impacting Chinese travelers more profoundly than those in other parts of the world. Consequently, any travel plans are more likely to remain within China, where costs are lower. Grant adds that the three Southeast Asian countries may only experience a trickle of Chinese tourists.
Chinese tourists were a crucial revenue source before the COVID-19 pandemic, accounting for over a quarter of all holidaymakers in Thailand in 2019. Additionally, Chinese visitors were the highest spenders in Singapore, contributing over S$4 billion (US$3 billion) in the same year.
While the number of Chinese travelers has decreased since the pandemic, they still make up the majority of visitors to Thailand, which implemented its visa waiver program in September. Tourism authorities in Thailand anticipate approximately 177,000 Chinese tourists during the Lunar New Year holiday, more than three times the figure from 2023.
Malaysia introduced its visa-free policy for Chinese citizens in December and aims to attract 5 to 7 million Chinese visitors this year, nearly double the pre-pandemic levels.
In anticipation of the Lunar New Year, hotels, including those under The Ascott Limited group, are offering promotions such as discounts and special activities and snacks to celebrate the festival.
Given its status as an air traffic hub in Asia, Singapore is ahead of its Southeast Asian counterparts in terms of attracting Chinese visitors. The number of direct flights between mainland China and Singapore has increased by nearly 5% this month compared to the same period in 2019.
However, Malaysia and Thailand still have significantly fewer direct flights, with a decrease of 33% and 17%, respectively, compared to 2019 levels, as reported by aviation analytics firm Cirium.
