Airlines and tourism markets hurt as Chinese tourists divert from Southeast to Northeast Asia

A confluence of factors is seeing Chinese short-haul tourists avoid Southeast Asia and instead favour Northeast Asia. Arrival figures at Southeast Asia's three key markets for Chinese tourists - Malaysia, Singapore and Thailand - are reporting fewer Chinese tourists than in 2013 while North Asian markets are reporting growth, often above 2013's growth. Consequently Southeast Asian airlines are suffering weakened yields and low load factors.

The political situation in Thailand is impacting arrival figures there while Malaysia has seen a sharp downturn due to the MH370 incident, with many Chinese believing conspiracy theories while others are avoiding Malaysia in a de facto protest. The cumulative impact is a 20% decline in Apr-2014 arrivals, the latest available.

Singapore has been caught up in this anti-Southeast Asia feeling, experiencing a 39% decline in Apr-2014 and 17% for the year so far - an even larger decline than in Malaysia. Vietnam-China tensions flared in May-2014, but Jun-2014 arrival figures still show 6% growth in Chinese tourists, although this is well down from the 43% growth in the year to May-2014.