Klook Highlights AI's Role in Easing Asia's Overtourism

AI Redirects Visitor Traffic in Asia

Klook co-founder Ethan Lin stated on 8 September, at the Fortune Leaders Forum in Macau, that overtourism in Asia is primarily a concentration issue, not a problem of sheer visitor volume. Lin explained that too many travellers visit the same limited number of locations within a country, rather than exploring the full breadth of a destination.

This perspective aligns with findings from Klook's Travel Pulse survey, which revealed that 57% of Gen Z and millennial travellers across Asia utilise artificial intelligence (AI) to locate novel destinations and activities.

Lin suggested that technology, particularly AI, can effectively "diversify traffic" towards less-frequented areas, alleviating pressure on established hotspots such as Kyoto and Bali, where local patience is reportedly tested by visitor numbers.

AI Subscribers Seek Lesser-Known Locations

Further supporting the role of technology in broadening travel choices, David Mann, Mastercard's chief APAC economist, noted that company data indicates subscribers to AI services are more inclined to visit places "off the beaten path." Mann observed that travellers are increasingly seeking out "hidden gems" and novel locations they have not previously explored, and AI tools can enhance this discovery process.

This trend complements efforts by some Asian governments to manage visitor influx through measures such as new taxes or reduced visa durations. Beyond AI, hospitality operators are also engaging social media influencers to promote diverse offerings.

For example, Japan's Myoko Suginohara Ski Resort collaborated with American snowboarder Travis Rice to showcase its appeal for backcountry activities. Ken Chan, founder of Singapore-based Patience Capital Group, which owns the resort, highlighted how such collaborations inspire viewers to visit Myoko.

Experience-Driven Travel and Flexible Work

Contemporary travel is increasingly defined by experiences, ranging from major concerts featuring artists like G-Dragon, Blackpink, and Jay Chou, to significant sporting events such as NBA games and Formula 1 races.

Jane Sun, CEO of Trip.com, described this demand as driven by "premium, purposeful, and pro-leisure travel." Sun cited an instance where Trip.com's most expensive package, a $200,000 per-person tour, sold out in just 17 seconds, illustrating the strong market for high-value, unique offerings.

Additionally, the rise of flexible working arrangements is fuelling "workcations," where individuals combine professional duties with holiday leisure. Travellers often work remotely from Monday to Thursday, then fly their families out for extended weekends, transforming travel into a more enjoyable and spending-intensive activity, according to Sun and Klook's Ethan Lin.

Macau Resorts Diversify Beyond Gaming

In Macau, integrated resorts are actively diversifying their offerings to lessen reliance on traditional gaming, dining, and shopping. SJM Resorts, for instance, hosts the Macao Open golf tournament, while Melco-owned City of Dreams stages "House of Dancing Water," an elaborate aquatic spectacle featuring aerial acrobatics.

Gerard Walker, SJM's chief hospitality officer, noted that visitors initially come for events like golf but often extend their stay to enjoy the comprehensive hospitality and leisure options available across Macau's resorts.

This strategic shift towards experience-based attractions aligns with broader industry trends and aims to draw a wider range of travellers seeking more than just casino entertainment, reinforcing Macau's position as a multifaceted destination in Asia.

Implications for Asian Destinations and Operators

The insights from Klook and Mastercard suggest a clear path for Asian destinations grappling with overtourism: strategic promotion of lesser-known areas through digital tools.

Tourism boards and hospitality groups in regions like Thailand, Vietnam, and Indonesia could leverage AI-driven platforms and influencer collaborations to redirect tourist flows from congested hubs to emerging locales.

The strong demand for premium and experience-led travel, as highlighted by Trip.com's rapid sales, indicates that operators should focus on curating unique, high-value packages, including cultural events, sports tourism, and wellness retreats, rather than solely competing on volume.

Furthermore, the growing popularity of "workcations" presents an opportunity for hotels and resorts across Asia to adapt their services, offering enhanced connectivity and flexible amenities to cater to this hybrid travel segment, potentially boosting weekday occupancy and spending.