Asia-Pacific Tourism Rebounds, but Can Better Connectivity Protect Its $3.2 Trillion Future?

Asia-Pacific tourism has recovered to nearly $3.2 trillion and 200.1 million jobs, but infrastructure gaps, restrictive visas and weak cross-border coordination threaten its resilience. ADB urges governments and development partners to build integrated transport corridors, simplify travel rules and mobilise responsible private investment to diversify markets and withstand future shocks.

Asia and the Pacific's tourism recovery is gaining momentum, but an Asian Development Bank study warns that rising visitor numbers alone will not make the industry resilient. Governments must connect investments in airports, roads, railways and ports with easier visa systems, liberal aviation policies and efficient border procedures. Without such coordination, expensive infrastructure may remain underused, while complicated travel rules continue to discourage visitors and private investment.

A $3.2 Trillion Recovery with Uneven Foundations

Travel and tourism contributed about $3.1 trillion to regional GDP and supported 190.8 million jobs in 2019. The pandemic reduced its economic contribution to $1.36 trillion and employment to 149.4 million in 2020. By 2024, the sector had recovered to nearly $3.2 trillion and 200.1 million jobs.

International arrivals also recovered from an 84% decline in 2020 to reach 401 million in 2024, equivalent to 96.2% of the 2019 level. Tourism receipts increased from $434 billion in 2019 to $455 billion in 2024. By 2035, the industry could generate almost $6.2 trillion, provide 260.4 million jobs and represent 12.8% of regional employment.

The recovery, however, hides major differences. Tourism generated 20.4% of regional service exports in 2024, but the figure reached 55.7% in Pacific developing economies. Tourism receipts equaled 13.9% of Pacific GDP, compared with a regional average of 1.2%. Disruption to only a few air or maritime routes can therefore affect jobs, foreign exchange and national growth across island economies.

Regional Travel Can Protect Economies from Global Shocks

The report identifies intraregional tourism as a critical defence against pandemics, geopolitical tensions, fuel-price increases and falling long-haul demand. During COVID-19, travel among Association of Southeast Asian Nations members increased from 36.8% of arrivals in 2019 to 60.9% in 2021, partially compensating for the loss of visitors from distant markets.

Dependence on a small number of source countries remains risky. Australia and New Zealand provide 75% of tourist arrivals to Pacific developing economies. East Asia receives around 65% of visitors from within its subregion. Southeast Asia obtains 44% internally and another 26% from East Asia, while Europe supplies 48% of arrivals to Central and West Asia.

Governments should develop short-haul routes, joint destination campaigns and multi-country tourism circuits. These measures can extend visitor stays, increase spending and distribute tourism income beyond major cities. Development partners can help by financing cross-border infrastructure, supporting common technical standards and coordinating projects whose benefits are shared by several countries.

Better Airports Will Fail Without Easier Travel Rules

Air transport's share of international arrivals increased from 38% in 2005 to 75.7% in 2022, while land transport's share fell from 56.1% to 19.5%. A 1% increase in international flight capacity is associated with a 0.98% rise in tourist arrivals, showing how strongly tourism growth depends on aviation.

Low-cost carriers account for around 34% of international seats in Southeast Asia, compared with 24% in South Asia, 20% in East Asia and 17% in Central Asia. Their expansion can lower fares, connect secondary destinations and reduce pressure on major hubs. This creates opportunities for airlines, airport operators, hotels, digital platforms and transport companies.

However, investors face fuel-price volatility, aircraft shortages, climate risks, uncertain passenger demand and inconsistent regulation. Governments using route subsidies should make them transparent, temporary and linked to measurable results. Airport concessions and public-private partnerships must be based on realistic traffic forecasts to prevent excessive financial risks from being transferred to taxpayers.

Visa reform may deliver faster and cheaper results. Visa-requiring destinations attract around 52% fewer visitors than comparable visa-free destinations, while restrictive policies can reduce tourist flows by 20%–70%. Electronic visas, visa-on-arrival systems and regional travel permissions can lower costs and support multicountry itineraries. These reforms should be introduced alongside new routes and destination marketing so that easier entry produces real economic activity.

Turning Regional Agreements into Working Tourism Corridors

Asia already has important frameworks, including ASEAN Open Skies, Greater Mekong transport agreements, Central Asia Regional Economic Cooperation corridors and the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement. Yet inconsistent border hours, different fees, complicated documentation and weak coordination prevent many of them from operating effectively.

Near-term reforms should include electronic visas, simpler documents, longer border operating hours and compatible digital systems. Medium-term priorities should focus on implementing signed agreements, developing viable routes and upgrading airports, ports and border facilities. Longer-term investment should expand road, rail, air and maritime capacity while improving last-mile access to tourist destinations.

Priorities must reflect geography. Southeast Asia needs better secondary-airport access and reduced hub congestion. East Asia needs greater aviation liberalisation and selected rail connections. Central and West Asia should strengthen Silk Road corridors and harmonise border rules. South Asia must improve road infrastructure and implement existing transport agreements. Pacific economies require climate-resilient airports, ports and reliable services on commercially thin routes.

International development partners should finance integrated programmes combining infrastructure, border reform, destination services, workforce development and environmental safeguards. Private companies can invest in transport, accommodation, digital payments and tourism services, but should carefully assess climate exposure, market concentration and policy uncertainty. Stronger connectivity cannot prevent the next crisis, but it can protect employment, diversify demand and help tourism-dependent economies recover faster.