Southeast Asian Countries Compete for Chinese Tourists in Wellness and Medical Tourism Sector

In 2023, China unveiled plans to open up group travel to 20 countries, marking a significant milestone. Seven Southeast Asian nations, including popular destinations like Thailand and Indonesia, have been included in this select list. 

Before the COVID-19 pandemic disrupted international travel, Chinese tourists embarked on approximately 150 million journeys abroad in 2019. Of these, around 27 million visits were to six prominent Southeast Asian countries. Group tours often consist of individuals with moderate incomes, a distinctive characteristic compared to solo travelers. Nevertheless, for airlines and hotels grappling with reduced occupancy rates, the resurgence of group travelers presents a much-needed boost in visitor numbers. 

The relaxation of China's group travel restrictions is anticipated to elevate hotel occupancy rates in Bali by an estimated 5 to 10 percentage points from the current levels of approximately 60%, according to insights from the Indonesian Hotel and Restaurant Association. 

The impending return of Chinese travelers has also ignited fresh investments in the region. Marina Bay Sands, a renowned hotel in Singapore, initiated a comprehensive renovation project for every guest room last year. The project is slated for completion later this year and comes with a substantial price tag of $1 billion, representing the most significant investment in the hotel since its opening in 2010. 

Marina Bay Sands' parent company, Las Vegas Sands, has ambitious plans, including the construction of a 15,000-seat arena adjacent to the hotel, additional space for international conventions, and a luxury tower. This comprehensive development is scheduled to conclude by 2026. Marina Bay Sands' revenue experienced an impressive 85% year-on-year growth, reaching $682 million in the October-December quarter, primarily driven by robust casino activity. Notably, the average daily room rate doubled to $550. 

Hospitals in the region are also gearing up to meet the burgeoning demand for medical tourism from China. In Thailand, Thonburi Healthcare Group has committed to a substantial investment of 1.2 billion baht ($35.9 million) to double the bed capacity at its primary hospital in Bangkok by the end of the year. Currently, foreign patients account for half of the hospital's clientele, and with the anticipated influx of Chinese travelers, this proportion is projected to soar to nearly 100%. 

Traditionally, high-income Chinese individuals seeking COVID-19 vaccinations have favored Hong Kong. However, Thailand is now positioning itself as a prime alternative. Additionally, Malaysia's IHH Healthcare has commenced a comprehensive renovation project at a Singapore hospital under its management, with an investment totaling 350 million Singapore dollars ($264 million). This initiative includes the expansion of outpatient treatment centers to accommodate the rising healthcare demands from both local and international patients, as confirmed by a company representative.