Travel Agent NewsSix Stars Tours and Services' Michael Xiao on how Southeast Asia can stay competitive as Chinese travellers seek deeper, shorter holidays.

The new rules of Chinese outbound travel

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Michael Xiao, CEO, Six Stars Tours and Services
Michael Xiao, CEO, Six Stars Tours and Services

Chinese outbound travel is evolving beyond a simple rebound. Travellers are taking shorter holidays, prioritising destinations closer to home, and increasingly seeking authentic experiences over traditional sightseeing. At the same time, geopolitical uncertainty is reshaping where they choose to go, creating fresh opportunities for Southeast Asia.

Travel Weekly Asia speaks to Michael Xiao, CEO, Six Stars Tours and Services, on how those shifts are changing travel demand.

What role is geopolitics playing in travel decisions?

The impact of rising oil prices on China’s economy
has so far been limited. Daily life for consumers has not been significantly affected, particularly as
domestic fuel prices have remained stable. After several years of deflationary pressure, China is also beginning to see modest consumer inflation.

Ongoing conflicts in parts of Europe (e.g. Ukraine) and the Middle East have made fewer Chinese
travellers willing to consider longhaul destinations in those regions.

Southeast Asia has emerged as one of the biggest beneficiaries in recent months. Singapore, in particular, has benefited from the diversion of Chinese MICE groups that might previously have chosen destinations such as Dubai, as groups prioritise stability, accessibility and regional
proximity. We have also seen some MICE demand going to China.

What will keep Southeast Asia competitive?

What draws Chinese travellers to Southeast
Asia are the blue skies, tropical sunshine, beaches and clear seas – things that aren’t readily found in
most parts of China, and especially during the winter months.

But as China’s tourism infrastructure and domestic
attractions scale up in both quality and sophistication, Southeast Asia must increasingly focus on experiential travel rather than relying
solely on attractions to remain competitive. Destinations need to define their own distinct advantages and create unique itineraries
and programmes that go beyond sightseeing.

Singapore, for example, still holds considerable growth potential for Chinese travellers and incentive groups by offering more localised
and authentic experiences. We now bring visitors to places such as MacRitchie Reservoir and the
Joo Chiat shophouse district to experience everyday local life and culture.

“Chinese travellers now prefer shorter breaks of four to five days than 10-day holidays.”– Michael Xiao, CEO, Six Stars Tours and Services

How are changing lifestyles reshaping itineraries?

With rising affluence, coupled with increasingly
fragmented lifestyles and limited leisure time, holidays are no longer viewed as a once-a-year affair in China. Instead, many travellers now
prefer shorter breaks of four to five days than extended 10-day holidays.

As a result, the traditional multi-country Singapore-Malaysia-Thailand itinerary has become
less common. Travellers are now more likely to combine Singapore and Malaysia, or visit Thailand as a standalone destination. Few are willing to dedicate 10 days to a single regional trip, and itineraries across Southeast Asia have gradually shortened to between three and five days.

This article was first published in Travel Weekly Asia’s April-June 2026 issue. Click here to read more from this issue.

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