VI
The Southeast Asia 2026 report, recently published by the Institute of Southeast Asian Studies, outlines a dynamic yet compelling picture of regional shifts. According to the report, Southeast Asia is asserting its position as a vibrant region rich in cultural identity, a crossroads of economic development strategies and innovative destination marketing campaigns.
Thailand asserts its dominant position.
According to the report, while Singapore has proven its dominance in terms of high-quality living environments and ideal career opportunities, Thailand is unrivaled in the race for the title of the most desirable travel destination in Southeast Asia. This preference for Thailand stems from a combination of key factors, including a relaxed visa policy, a well-developed tourism infrastructure, and highly competitive service costs.
Notably, the sense of pride and passion for exploring their homeland among the local people also reached a record high, with 85.7% of Thais surveyed stating that they prioritize domestic destinations over overseas trips, creating a solid foundation for the sustainable development of the domestic tourism economy.
It's clear that the decision to choose a short-term travel destination is often sensitive and directly influenced by macroeconomic fluctuations such as exchange rates, the cost of living at the destination, combined with the intensity of tourism promotion campaigns. This explains why, outside of the bloc, Japan maintains its magnetic appeal and remains the most popular destination outside the region for Southeast Asians.
This shift is closely linked to the economic and demographic context as Japan faces a rapidly aging population, opening up job opportunities for a wave of skilled workers from Indonesia, the Philippines, and Thailand.
On another level, geographical connectivity and community networks play a decisive role in the trend of choosing affordable travel destinations and cultural experiences. For people in the Philippines and Indonesia, Singapore is not only a financial center but also a top-choice tourist destination in the ASEAN region. This appeal is firmly reinforced by the large community of international students and migrant workers living there.
Vietnam is chosen for both tourism and living.
The biggest turning point in this year's strategic report is the simultaneous appearance of the "big four" – Thailand, Singapore, Malaysia, and Vietnam – among the top four ASEAN countries chosen for both tourism and residence. This position reflects a significant strategic leap forward for Vietnam's tourism industry and demonstrates the inherent attractiveness of an economy experiencing one of the fastest and most stable growth rates in the region.
Vietnam today attracts tourists not only with its pristine landscapes and rich street food, but also with its reputation for a safe investment environment, an open culture, and the hospitality of its people. The influx of international visitors to major tourist centers to check in, experience daily life, or seek entrepreneurial opportunities is clear evidence that Vietnam's tourism brand has been significantly elevated on the international map.
Vietnam unexpectedly appeared on the ranking, winning the hearts of tourists who want to visit and live there.
Alongside attracting foreign tourists, the sustainable development trend of the travel and tourism industry in Southeast Asia is also strongly driven by internal factors. Surveys indicate that people in the five largest ASEAN economies, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, are all showing a very high preference for domestic tourism.
People are tightening their spending on long-haul international flights and returning to explore and invest in cultural and historical values in their homeland, creating a golden opportunity for domestic travel businesses to improve service quality and diversify products, from ecotourism and healing tourism to high-end cultural experience tours.
Looking to the future of this heritage economy sector, Dr. Irna Nurlina Binte Masron, senior research fellow at the Institute of Southeast Asian Studies (ISEAS-Yusof Ishak Institute), noted that the survey results send a strong signal that ASEAN needs to promote deeper and more comprehensive integration. Instead of competing individually, member states need to maximize the complementarity of resources, culture, and human capital to jointly build a unified, diverse, and attractive regional brand image in the eyes of the international community.
In the coming years, labor, tourism, and residential flows within the region will be increasingly influenced by cross-border economic factors and changing demographic structures, requiring governments to adopt flexible policies to transform challenges into breakthrough opportunities for the entire bloc.
