• Regional tourism recovery hits speed bumps.

• Q4 new openings dominated by high-end segments.

• Divergence in performance continued.

Asia Pacific tourism showed mixed recovery in 2025, with Vietnam leading at +20.4% international arrivals growth while Bangkok declined 8.1% due to safety concerns and losing nearly one-third of Chinese tourists. Meanwhile, Malaysia benefited from visa facilitations, demonstrating how policy changes influenced tourist flows.

Supply expansion focused heavily on upscale and luxury segments, with Shanghai adding 3,838 keys. International brands drove regional growth through major openings including JW Marriott Tokyo, Andaz One Bangkok, and multiple Waldorf Astoria properties.

Q4 2025 performance varied significantly across markets. Ho Chi Minh City (HCMC) achieved double-digit RevPAR growth, while Metro Manila showed strong momentum. Hong Kong, Shanghai, and Tokyo posted solid gains, with Tokyo reaching record ADR levels. However, challenges persisted in Beijing (declining luxury ADRs), Bangkok (occupancy drops), Singapore (widespread RevPAR declines), and Jakarta (reduced government travel impacting MICE demand). This divergence highlighted the uneven nature of the region’s tourism recovery.

Outlook
Hotels in Asia Pacific are strategically positioned for growth in 2026 through infrastructure development and policy reforms. Key catalysts include Malaysia’s visa-free entry boosting China/India arrivals, Jakarta’s sports tourism diversification with MRT Phase 2A connectivity, and Thailand’s post-2025 recovery trajectory toward USD450 million investment volumes. Supply-demand imbalances favour revenue optimisation in Vietnam and HCMC (delayed pipeline creating constraints). China’s mixed performance sees Shanghai achieving full tourism rebound with value-added investment focus, while Beijing manages revenue challenges amid rising demand. Tokyo leverages weak yen for sustained ADR growth, Singapore capitalizes on MICE sector strength, and the Philippines awaits Chinese e-visa impact. Regional success depends on China’s economic health and evolving geopolitical landscape.

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