Asia Pacific is now tourism’s hottest growth market

Vietnam is forecast to record a 31.2% increase in arrivals between 2025 and 2027. Photo Credit: iStock/Tuan Duc Luong

Asia Pacific tourism is entering a new phase of growth, with Vietnam, Japan, Thailand and Malaysia expected to be among the region’s strongest-performing destinations over the next two years.

According to PATA’s Asia Pacific Visitor Forecasts 2026–2028: Mid-Year Update, international visitor arrivals (IVAs) across 39 Asia Pacific destinations are projected to reach 714.9 million in 2026, rising to 758.8 million in 2027 and 789.2 million by 2028.

The report identifies several factors driving growth, including rising incomes in key source markets, AI-enhanced travel experiences, favourable exchange rates, easier visa policies and increasing demand for health and wellness travel. However, it also cautions that geopolitical tensions, higher travel costs and travellers’ perceptions of destination safety remain key challenges.

Speaking during a webinar on the report, Professor Hyun Song, chair professor and associate dean, School of Hotel and Tourism Management at the Hong Kong Polytechnic University, said Asia Pacific is benefiting from shifting global travel patterns.

He noted that unrest linked to the US-Iran conflict had dampened demand in the Middle East, redirecting some travellers towards Asia Pacific. Meanwhile, the weaker Japanese yen and China’s unilateral visa-free policy have further supported tourism growth across the region.

“Asia Pacific as a destination will experience tremendous growth over the next few years; while overall growth is upward, regional recovery is uneven behind this overall growth trend, with North Asia and parts of South Asia performing strongly compared to the Pacific [region] and some long-haul markets,” said Song.

Among the standout markets, Vietnam is forecast to record a 31.2% increase in arrivals between 2025 and 2027, driven largely by demand from China.

Thailand will host the 20th Global Wellness Summit and music festival Tomorrowland later this year, both of which are expected to attract large numbers of international visitors.

“Northeast Asia is strong in cities and shopping tourism, because [the region] has good infrastructure and transportation systems, but southeast Asia is strong when it comes to sea and sun holidays, nature and visa convenience,” added Song.

Thailand’s appeal, he noted, lies in its rich culture and growing focus on wellness tourism, although increasing competition from neighbouring destinations could challenge its future growth.

John Grant, consultant at aviation advisory Midas, concurred with Song’s sentiments.

“It’s a mix of those factors and more – such as good exchange rates, good products, high service levels,” he said. “Increases in [aviation] capacity all add up to a hot market at the moment. Japan has also been strong off the back of exchange rates strengthening.”

Grant added that while the recent US-Iran tensions temporarily shifted some travel demand towards Northeast Asia, airlines have limited ability to rapidly increase capacity, meaning traffic flows are expected to normalise over time.

The forecasts were produced by PATA in collaboration with the Research Centre for Digital Transformation of Tourism at The Hong Kong Polytechnic University’s School of Hotel and Tourism Management.

 

 

Source: https://www.travelweekly-asia.com/Travel-News/Travel-Trends/Asia-Pacific-is-now-tourism-s-hottest-growth-market?