India is the 'next China' of the tourism industry.

Indian tourists are flocking to Southeast Asia, further solidifying its position as a key growth market for the tourism industry in the post-pandemic era.

The Asian Development Bank (ADB) points out that India could emerge "as the next China" in terms of "international tourism growth rate" over the next 10 years, despite limited connectivity due to fewer airports. ADB experts also believe India could become a "key player" in post-pandemic tourism development.

Airlines like IndiGo and Thai Airways, as well as hotel chains offering thousands of rooms and travel companies, all point to the increasing number and spending power of Indian tourists. Brendan Sobie, an analyst at the Singapore-based CAPA Aviation Centre, says Southeast Asia is well-positioned to capitalize on the growth of this promising market.

The tourism and travel industry is crucial to several Southeast Asian economies , contributing around 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 tourists. However, official data from four Southeast Asian countries—Thailand, Singapore, Indonesia, and the Philippines—indicates a slow recovery in Chinese tourist numbers after the pandemic. In the last five months, the number of Chinese tourists traveling internationally has been more than 60% lower than in the same period of 2019.

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

Tanes Petsuwan, Deputy Director-General of the Tourism Authority of Thailand (TAT), anticipates welcoming 1.6 million Indian tourists this year. In May, Singapore recorded more Indian visitors than Chinese visitors. Meanwhile, the number of Indian tourists (63,000) to Indonesia was approximately equal to the number of Chinese tourists (64,000).

According to Chai Eamsiri, CEO of Thai Airways, there are currently 14 flights per week to China, down from around 40 before the pandemic. Meanwhile, the number of flights to India per week is 70. Chai stated that it is likely that the number of Thai narrow-body aircraft flying to India will double in the next decade.

Sobie points out that capacity on flights between China and Southeast Asia is 57% lower than in June 2019. However, flights from India to the region have recovered to around 90%.

Indian tourists pose for photos at Patong Beach, Phuket, Thailand on July 14. Photo: Reuters

Indian low-cost airline IndiGo has ordered 500 Airbus narrow-body jets to meet regional travel demand. They "see a significant increase" on routes between India and Southeast Asia, with more than 100 flights per week.

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

Not only airlines, but Indian tourists are also helping hotel chains recover after the pandemic. Dillip Rajakarier, CEO of Minor Hotels, a chain with 45 properties in Southeast Asia and over 6,000 rooms, noted that the Indian market has always been one of their top source markets. Their hotel chain has intensified its marketing efforts and expanded its presence throughout 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 between $484 and $726, the same price as a flight to Europe. "I saved both time and money," Tripathy, 33, pointed out the advantage of traveling to Thailand instead of Europe. Additionally, the ease of obtaining visas in Southeast Asia is another plus point for Indian tourists.

According to information from the Indian online travel company Cleartrip, bookings to Bangkok in the first six 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 profit from Indian tourists, the tourism industry must understand Indian preferences, especially regarding food and entertainment.

"If we don't adjust quickly, neighboring countries will attract this customer segment. This is a huge opportunity for Thailand because there are so many things to offer them," Somsong said.

(By Anh Minh , according to Reuters )

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