Vietnam, Malaysia rise as Southeast Asia's tourism bright spots as Thailand slumps

Vietnam received its 20th millionth foreign visitor in a year for the first time at the Phu Quoc International Airport on Dec. 15, marking a milestone for its tourism sector.

The full-year is expected to exceed 21 million, surpassing the previous record of 18 million achieved in 2019 before Covid.

With its 21% growth rate this year, Vietnam is regarded by the United Nations World Tourism Organization as one of the fastest-growing markets in the world.

Malaysia attracted 28.2 million tourists in the first eight months of this year, a 14.5% increase year-on-year.

The industry will be supported by stronger Chinese tourist arrivals, improving flight connectivity and the government's ambitious "Visit Malaysia 2026" campaign, according to HSBC Global Research.

"Malaysia is on track to easily exceed its 2025 tourism target of 31.4 million tourists, making it one of the few ASEAN economies to achieve its target.

"We estimate the number of tourists is likely to exceed 40 million."

This year, both countries have strived to ease visa polices, enhance promotion campaigns and improve airport infrastructure.

Indonesia and Laos have also seen increasing tourist numbers.

Indonesia received over 12.76 million foreign visitors in the first 10 months, a 10% increase, with Malaysia, Singapore, Australia, and India being the leading source markets.

Laos received 3.8 million, a 13% increase.

Challenging year for Thailand, Cambodia

Once a tourism powerhouse in Southeast Asia, Thailand has struggled with setback after setback this year.

The crisis began in January as many Chinese tourists canceled their trips to the country following the high-profile abduction of Chinese actor Xing Xing.

Two months later a deadly earthquake in Myanmar that sent tremors across Bangkok caused widespread damage to the tourism industry.

Escalating military clashes along the Thai-Cambodian border also triggered a surge in cancellations across provinces near the fighting.

Some countries warned their citizens to postpone traveling to Thailand.

Arrivals as of early December declined by 7% to 30 million.

Thailand had received 40 million tourists in 2019 and 35 million last year.

Meanwhile, Cambodia's reputation took a beating in the eyes of South Koreans due to online scams and the disappearance of hundreds of their fellow citizens who entered that country.

The South Korean government has issued warnings to its citizens to cancel or postpone non-essential travel to the Cambodian capital Phnom Penh and areas like Sihanoukville and Bokor Mountain.

Cambodia attracted only 4.75 million tourists in January-October, a decrease of 11.6%.

The Philippines received 4.7 million foreign visitors in the first 11 months of the year, a 3.02% decline due to significantly lower arrivals from South Korea and China.

A series of incidents involving the deaths of South Korean and Japanese tourists has raised safety concerns about travel to the Philippines.

The government pledged to strengthen safety measures for foreign tourists, according to the Philippine News Agency.