Ren Zihan, a resident of the northern Chinese city of Dalian, feels as if all her friends are vacationing in Southeast Asia lately. Pictures of durians and hawker food have filled her social media feed, the 32-year-old tells The Business Times.
“It seems as if everyone is in Malaysia and Singapore at the moment”.
Beyond the usual phenomenon of travellers seeking warmer destinations during the winter months, a new factor is pushing Chinese tourists south. Southeast Asia has been a popular destination for some time, but Chinese travellers are now flocking to the region in greater numbers.
This follows the diplomatic spat last November between China and Japan.
“There’s a dramatic shift under way”, notes Mayur Patel, commercial and industry affairs leader for the Asia-Pacific at aviation analytics firm OAG. “Aircraft freed from suspended Japan routes are being redeployed to Southeast Asian leisure destinations, where Chinese demand is holding up”.
FYI, Japan was a major destination for Chinese tourists – prior to Beijing unleashing a diplomatic and economic offensive against the country, freezing bilateral travel – these travellers made up a significant share of the arrivals in the country. From the start of 2025 to October, 8.2 million visitors – nearly one-quarter of Japan’s total arrivals – were from mainland China, based on OAG data.
All that has changed. In January and February 2026, after the flight cancellations, one-way seat capacity from China to Japan fell by between 47 and 50 percent compared with the year-ago period. And flights from China to Southeast Asia experienced a significant increase in seat capacity – in the first two months of 2026, it rose about 15 to 20 percent year on year, indicates Alton Aviation data.
In the wake of Beijing’s travel advisories, South Korea, Europe and Australia have also overtaken Japan as preferred destinations among the Chinese, based on survey data from China Trading Desk.
But Southeast Asia’s combination of value, variety and accessibility makes the region particularly attractive to them, notes Edmund Ong, senior regional director for Southeast Asia at online travel agency Trip.com.
Shorter flight times mean easier connectivity to the region, he adds. There is also a seasonal boost, as Southeast Asia’s warm climate is especially appealing during the colder Spring Festival period in China.
Eric Zhu, Asia aviation and defence analyst at Bloomberg Intelligence, agrees. “We do expect Chinese travellers to be budget-conscious this year, which favours the lower-cost, short-haul options found within Southeast Asia”.
Within the region, some countries have received a stronger boost than others. In February 2026, the greatest year-on-year increases for flight bookings from China were to Vietnam (41 percent) and Malaysia (38 percent), according to OAG.
Singapore’s and Malaysia’s popularity could also grow further, says China Trading Desk, whose survey found that the two countries have overtaken even South Korea in the list of destinations most respondents plan to visit.
Interestingly, demand for regional travel has also diversified, with greater flight connectivity between Southeast Asian destinations allowing tourists to hop between cities or countries. Chinese tourists in the region have increasingly been drawn to what Trip.com calls “second-tier destinations”, the likes of which include Kota Kinabalu in Malaysia and Phu Quoc island in Vietnam.
“They are taking longer trips and spreading their travel across multiple destinations, such as visiting Singapore and Malaysia in a single trip”, says Ong.
And Vietnam is a key beneficiary, Patel of OAG observes. The country now boasts 51 route connections – including from secondary cities such as Danang and Phu Quoc – to other Southeast Asian destinations, up from 45 in 2019.
For Japan, the economic consequences are considerable. Tourism accounted for 7.5 percent of Japan’s gross domestic product in 2024, or about 44.6 trillion yen, according to the World Travel & Tourism Council (WTTC).
With China making up about 23 percent of all tourists to Japan in 2025, prior to November, a pullback from this major source will hurt overall GDP substantially.
China Trading Desk’s Bhatt predicts that Japan will lose between $9 billion and $10.5 billion in revenue this year, compared with a scenario in which the diplomatic spat never happened. As for Southeast Asia, WTTC estimates that the tourism sector contributed $374 billion to the region’s combined GDP in 2024, or around 9.4 percent.
Diverted Chinese demand could amplify this further. Bhatt believes that overall Chinese tourist spending may grow by 10.2 percent in 2026 to $280 billion, with about $35 billion of this spent within Southeast Asia.
The region’s hospitality and tourism sector has been courting Chinese travellers for a while. On Trip.com – which originated as a travel agency for Chinese tourists – hotels can be filtered by “Chinese-friendly” offerings such as Mandarin-speaking service staff. Global hotel chain Hilton has integrated Chinese platforms into its booking processes. WeChat is offered as a payment option, and rooms are listed on Alibaba’s travel platform, Fliggy.
“Mandarin-speaking team members in key gateway destinations also help to make stays more familiar and comfortable”, says Sebastien Kaeuffer, vice-president for Southeast Asia at Hilton.
Let's hope the expanding interest in Southeast Asia stays because the region benefits economically. Especially Malaysia.