Northeast Asia is a mosaic of interconnected yet distinct travel markets, making it an incredibly dynamic region. Throughout the past year, airlines have worked to reestablish connections between Northeast Asia and Southeast Asia, rejuvenating routes that had faltered during the pandemic. The Northeast Asia Travel Market Report 2023-2026 by Phocuswright sheds light on this intricate web of travel dynamics, offering a glimpse into the evolving landscape of this region.
As the report points out, it’s evident that airlines have made concerted efforts to bolster connectivity, particularly with China’s bustling first- and second-tier cities, as well as with Japan. Moreover, there’s been a noticeable uptick in longer-haul capacity, hinting at a gradual resurgence in transcontinental travel, with heightened links to the U.S. and European markets.
However, optimism is tempered by patchy recovery. While some areas are experiencing a resurgence in outbound travel, others, like South Korea and Taiwan, find themselves with more residents venturing abroad than inbound arrivals. Thus, the outlook for 2024 appears to be a tapestry woven with threads of both hope and caution.
At the heart of Northeast Asia’s travel landscape lies the influence of Chinese tourists and business travellers. But, as the report highlights, 2023 saw Chinese visitor volumes fall short of expectations, prompting regional airlines to recalibrate their strategies. In 2024, the race is on across the Asia Pacific region to capture the attention of this crucial market segment. With a focus on expanding access to Chinese tier-2 airports, the aim is to broaden the base for tourism and foster growth in outbound travel.
Phocuswright’s report emphasises that it’s impossible to ignore the geopolitical undercurrents that shape the Northeast Asian landscape. From maritime disputes in the South China Sea to Taiwan’s upcoming elections and North Korea’s persistent saber-rattling, plenty of uncertainty looms across this region.
Meanwhile, based on the report, In the bustling metropolises of Northeast Asia, a new trend is emerging – night tourism. Also known as the Night Economy, this burgeoning trend aims to tap into the potential of after-dark leisure activities. From Taipei’s vibrant night markets to Shanghai’s glittering skyline, destinations are endeavoring to capitalise on the allure of nocturnal exploration. Initiatives like Klook’s digital pass in Taiwan exemplify this shift, offering visitors an opportunity to savor the flavors of the night while enjoying exclusive discounts.
The reopening of Northeast Asia’s major travel markets has been met with cautious optimism, with 2023 marking a milestone in the post-pandemic recovery journey. While 2023 bookings may fall slightly short of pre-pandemic levels, projections for 2024 paint a picture of robust growth, surpassing previous benchmarks altogether.
Phocuswright’s Northeast Asia Travel Market Report 2022-2026 offers a comprehensive overview of the travel landscape in Northeast Asia, encompassing market sizing, distribution trends, key developments, and more. This report forms part of the Asia Pacific Travel Market Report 2022-2026 series, providing stakeholders with a comprehensive understanding of the evolving dynamics of the travel industry in this dynamic region. Access full report here.