Pan Pacific CEO upbeat on Southeast Asian tourism as regional travel demand rebounds

Pan Pacific Hotels Group, a Singapore-based operator, remains confident in the prospects of Southeast Asian tourism despite geopolitical tensions and rising travel expenses. The company's CEO, Choe Peng Sum, reported a rebound in demand in the second half of 2026 following a significant drop in the second quarter due to the US-Iran conflict.

Occupancy and average room rates have since improved in the third quarter, leading the group to expect continued recovery into the final three months of the year, potentially meeting full-year targets.

Choe attributed the resurgence to affluent travelers favoring shorter trips within the region, opting for premium experiences despite the increased costs. He noted that the conflict impacted travel from the Middle East to their properties in Kuala Lumpur, Jakarta, and Bangkok but saw a resurgence in demand from leisure and corporate tourists. The company is also investing in ten new-build and major renovation projects across Southeast Asia in 2027, including luxury hotels in Bangkok and Phnom Penh.

The shift in traveler preferences, including a trend towards shorter-haul trips and more spending on experiences, is driving growth in markets such as Vietnam, Malaysia, and Singapore. Vietnam's tourism growth extends beyond Ho Chi Minh City and Hanoi to resort destinations, while the expansion of high-tech industries and changing Chinese travel patterns are also contributing to the region's appeal.

Choe highlighted the popularity of hotel club lounges and distinctive experiences among travelers willing to pay more for unique offerings. He expressed optimism about Southeast Asia's potential to attract affluent travelers from China, India, and other regions.