The future of Northeast Asia travel is online, with Phocuswright predicting that the region will break through another barrier in online travel bookings by 2026, reaching $30 billion.
The latest Phocuswright Northeast Asia Travel Market Report 2023-2027 cites several forces at play. New demand, demographic and strategic dynamics will further reshape travel across the decade as the slump-to-recovery period will transform into stepped growth of overall gross bookings through 2027.
The report finds that the mindset shift towards e-commerce and app-enabled travel and lifestyle services is irreversible and is being reinforced by new smart-tech and AI travel booking tools.. Online gross bookings quickly regained momentum once borders reopened to ease past the 2019 level of $15.6 billion in 2023 with $21.3 billion and are projected to smash through the $30 billion barrier in 2026, when online penetration will reach 57 percent of all bookings. “Still, this may prove an under-estimation should the AI revolution have a dramatic impact on travel booking in a region renowned for its swift adoption of life-enhancing consumer technology,” states the report.
It is against this dynamic backdrop that WiT Japan & North Asia will return to Tokyo on May 26-27, its 12th edition in a country that has become the most-visited destination in Asia in 2024, surpassing Thailand. Japan recorded 36.87m international visitors last year and it is targeting 60m by 2030.
“Northeast Asia, as a region, remains the powerhouse of travel in Asia Pacific and last year, after a tepid couple of years, the region asserted itself and we’ve seen all kinds of dramatic activity happening – from airlines launching of new routes to hotel development across the region,” said Yeoh Siew Hoon, founder, WiT, “Underpinning all this is the fast pace of technology that is upending traditional models, and everyone has to keep up and stay on top of traveler trends and technology innovation.
“This year’s programme themed “Next Generation” will explore exactly that and how various players across North Asia are thinking of the next age of travellers with the changing demographics of the region and the new tech that needs to be deployed with this generational change.”
North Asian markets are strongest contributors
The North Asian markets, particularly South Korea, Taiwan, and China, remain the strongest contributors to this growth.
In particular, Korean outbound was the story of 2024 – South Korean travellers now average 0.56 outbound trips per year, reportedly the highest among all Asian countries, and over 30 percent of these travelers choose Japan as their primary destination.
According to the Korea Tourism Organisation, Korean outbound in 2024 reached 99.4 percent of 2019 levels to touch 28,696,435. In 2019, the total was 28,714,247. In destinations such as Vietnam, Korea surpassed China to become the number one market in 2024.
Taiwanese travelers make an average of 0.51 trips per year, closely mirroring South Korea’s travel frequency. Approximately 26 percent of Taiwanese outbound travellers visit Japan.
The Phocuswright report also pointed to the stimulative force of Northeast Asia’s primary travel influencer, China, reasserting itself after a tepid 12 months since its borders reopened in 2023.
“This boosted the visitor economies in South Korea, Hong Kong and Macau, but the impact was sub-par in Taiwan. In September, China, South Korea and Japan set a mutual target to share 40 million inbound arrivals by 2030. In November, China simplified ‘cross-boundary’ travel measures to expedite border clearance between the mainland, Hong Kong and Macau.
“Airlines reactivated more dormant routes and launched new destination pairs regionally. Hotels fared better than in any year since 2019, but downward pressure on rates remains. Rail and car rental bookings benefited from broadening patterns of experiential travel among inbound and domestic trip-takers.”
Phocuswright noted that the powerful upturn in travel activity across Northeast Asia saw gross bookings surge by 116 percent to reach $44.6 billion. Gross travel bookings are forecast to record healthy growth of 15 percent in 2024, to reach $51.3 billion while annual expansion will moderate to reach $60.3 billion in 2027.
Kei Shibata, co-founder of WiT Japan, also pointed out the strong growth of the US market to Japan.
He said, “In 2024, the number of American tourists surged by over 33 percent year-on-year. Additionally, many other countries outside Asia are emerging as growing source markets, further emphasizing the rising global demand for Japan’s unique cultural experiences, renowned cuisine, and rich historical attractions.”
WiT Japan & North Asia 2025 will be held at the Westin Tokyo.
