India, Indonesia, and Vietnam Set for Tourism Boom

Jean-Jacques Morin, the deputy chief operating officer of the Accor SA hotel group, believes that countries such as India, Indonesia, and Vietnam could soon experience a ‘tourism bonanza’ as more people join growing middle classes and begin to get wealthy. Speaking here in Bangkok recently, Morin noted that these are people with money to spare who increasingly ‘don’t buy products, but experiences’, accelerated by the virus.

“The way people consume has changed. Nowadays, people want services, not necessarily products. They want to have experiences”, said Morin. With nearly 6,000 hotels around the world, Accor runs over 45 brands, from budget options like Ibis to luxury resorts such as Raffles and Banyan Tree. This year, the company aims to grow its portfolio by 3%-4%, with Southeast Asia, including India, expected to account for about half of these openings.

Morin said Southeast Asia and India have strong growth prospects, adding that markets such as Vietnam and Indonesia will continue to emerge as major tourism destinations, alongside established players like Singapore, Thailand, and Japan. Morin is optimistic about the long-term rebound in the region’s tourism sector despite a slower post-pandemic recovery in Asia, particularly in China.

He pointed to India’s growing travel market, driven by the emergence of India’s middle class and record aircraft orders from Air India and IndiGo, ahead of what they anticipate will be a full rebound in domestic travel and a strong increase in international travel. “The middle class is the most critical important driver of this industry”, said Morin. “When you become a little bit more wealthy, you want to see the world”.

Further, Morin added that Gen Z travelers will lead the future of tourism, especially in boutique and design-driven hotels. The younger tourist, who tends to spend more on food and drinks and loves ‘bleisure’ trips, is going to drive the demand for more innovative and experiential travel options in the years ahead.



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