Travel and consumption trends registered remarkable growth during the 2024 Chinese New Year holidays, giving hope for the positive trend to continue also in the year ahead. However, lingering challenges, such as low level of consumer confidence and the ongoing downturn in the property sector, cast uncertainties on the sustainability of these figures.
Traveloka saw an increase in searches during the Chinese New Year period between 2023 and 2024, in Malaysia. Meanwhile, we see an almost 4 times increase during the 5-day Chinese New Year period [6 Feb 2024 to 10 Feb 2024] compared to the previous year [18 Jan 2023 to 22 Jan 2023], Traveloka President Caesar Indra told BusinessToday exclusively.
This could only mean travellers made last-minute searches for the best deals. The results on travel searches were from across Traveloka booking platforms.
Top three destinations of the searches are still consistent from 2023 to 2024 ,in terms of destinations, which were Kuala Lumpur, Penang and Johor Bahru.
Asked on the rise in the trend, Indra said compared to the preceding month, the observed increase in the volume of searches can be attributed to the Chinese New Year tradition of “balik kampung” in Malaysia. This is a period when a significant number of individuals return to their hometowns from other locations.
The surge in search activity on February 8, two days before the celebrations, is likely due to last-minute queries for available transportation. Furthermore, cultural and familial traditions often motivate individuals to travel during this time to reunite with family or participate in celebratory events.
“We can sum up that many were simply planning their travels during this period due to the Chinese New Year’s long weekend [Saturday, Sunday, Monday] as compared to the year before [Sunday, Monday], and the extended school holidays and Valentine’s Day was also a few days after Chinese New Year.
It is fair to note that in 2023, the country was still recovering, and people were still apprehensive about traveling. Malaysians overseas were also returning to celebrate with their families. Given the favourable exchange rates, Malaysia is an attractive destination for foreign travellers.
On the specific destinations, the KL Tower in Kuala Lumpur, LEGOLAND Malaysia in Johor and The Habitat Penang Hill, Penang received the most searches.
Indra, on Traveloka’s projections for Malaysian tourist arrivals, said Malaysia is an essential market for Traveloka, and favourable exchange rates make Malaysia an attractive destination for travellers.
Malaysia is looking to surpass its tourist arrival figures next year, driven by improved flight connectivity and a growing opportunity for visitors from China and India. According to Tourism Malaysia, tourism arrivals in 2024 “should be higher” than the 26.1 million foreign visitors observed in 2019.
In addition, Malaysia also announced a 30-day visa-free entry for travellers from China and India starting Dec. 1, aiming to boost tourism revenue. An increase in visitors this year has prompted the government to revise its 2023 year-end tourism target to 19.1 million arrivals from 16.1 million.
Traveloka is Southeast Asia’s leading travel platform, enabling consumers to access, discover, and purchase a wide range of travel, local services, and financial services products.
Traveloka’s comprehensive product portfolio includes transport booking services such as flight tickets, bus, trains, car rental, airport transfer. It also offers access to the largest accommodation inventory in Southeast Asia, including hotels, apartments, guest houses, homestays, resorts, and villas.
Traveloka is a key player offering local services (currently specific to certain markets), and reservations for a wide range of local attractions, activities, as well as wellness and beauty clinics.
Traveloka also offers financing, payment, and insurance products to help Southeast Asian consumers fulfil their aspirations. Traveloka provides 24/7 customer service in local languages as well as more than 30 different local payment methods. The Traveloka app has been downloaded more than 127 million times, making it the most popular travel platform in Southeast Asia.
The tourist industry registered significant growth during this year’s Chinese New Year (CNY) holidays, the first to be completely unaffected by the COVID-19 pandemic.
According to the latest figure released by China’s Ministry of Culture and Tourism, both travel numbers and tourism-related revenues reached unprecedented levels, surpassing figures registered during the 2023 Chinese New Year while also surpassing pre-COVID-19 levels.
These positive outcomes might offer temporary relief to China, amidst deflationary risks stemming from weakened consumer demand. However, the sustainability of this tourism boom remains uncertain.
In China, the surge in travel within the country was facilitated by traditional transportation models, such as railways, civil aircraft, and waterways. Additionally, this year there has been also an increase in travellers embarking on independent road trips, partially due to the current rise in popularity of electric cars in China.
This trend was further encouraged by the government’s efforts to stimulate the purchase of these vehicles as a way to boost domestic consumption. To cater to this trend, provinces ensured the temporary deployment of additional recharging stations in service areas, ensuring a seamless travel experience for travellers.
The travel rush registered during the CNY break positively impacted domestic tourism revenues. The latter soared to RMB 632.7 billion (around US$87 billion), marking a remarkable 43.7 percent increase compared to the previous year and a notable 7.7 percent rise compared to 2019 levels.
The data reveals a significant surge in domestic trips, totalling 474 million trips made across the country from February 10 to February 18, marking a notable increase of 34.4 percent compared to the same period in 2023. This figure attracted special attention as it was a 19 percent rise compared with that in 2019.
The momentum recorded in inbound and outbound travel can be attributed to the relaxation of visa requirements that has characterised China’s recent foreign policy approach.
At present, the number of countries that enjoy mutual visa exemption with China has increased to over 150, making it easier and more appealing for a larger range of travellers to visit China and vice versa, contributing to the rebound of the tourism market.
