Consulting Report
22 Oct 2024

Capturing High Quality Tourism for Southeast Asia

The Impact of Premium Food and Beverage Experiences on Destination Choice

In collaboration with The Asia-Pacific International Spirits and Wines Association

Southeast Asian policymakers are keen to build back their tourism industry in a sustainable way, following the challenging years of the pandemic. Part of this solution lies in “quality tourism”—focused on maximising economic gains through higher visitor spending per trip rather than higher numbers of visitors.

“Quality tourism” emphasises unique, personalised, and immersive experiences that engage travellers with local culture and nature. However, competition for this market is fierce, with Southeast Asia vying against global tourism hotspots. To seize this opportunity, a thorough understanding of quality tourists’ preferences and influences is essential.

In collaboration with the Asia-Pacific International Spirits and Wines Association (APISWA) and a range of travel industry partners from across the region, Oxford Economics conducted original research surveying 1,800 potential tourists from five major markets: China, South Korea, Australia, the United States, and the United Kingdom.

Key findings reveal that food and beverage (F&B) offerings are highly significant in influencing destination choices—seven out of 10 potential Southeast Asia tourists value them highly. Our analysis suggests tourists are 2.5 times more likely to visit Southeast Asia when premium F&B experiences are available, compared to destinations with more standard service offerings. They are willing to pay an average of US$250 more per person per day for destinations that provide premium F&B experiences.

The research highlights the importance of tailored premium F&B offerings, emphasising safety, reliability, and value for money across diverse traveller segments. Recommendations for policymakers include facilitating a variety of high-quality F&B experiences, ensuring the safety and reliability of F&B, maintaining price competitiveness, and working with the industry to improve product and service levels with supportive public policies. By addressing these areas, Southeast Asia can strengthen its tourism appeal and enhance economic returns.

The experts behind the research

Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:

Liam Cordingley

Lead Economist, Economic Impact

Anubhav Mohanty

Associate Director, Economic Consulting

Sean Morgan

Head of Travel Industry Research, Tourism Economics

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