Why Southeast Asia is becoming increasingly important for Austria’s tourism industry
German speaking core markets are weakening, while new opportunities are emerging far beyond the Alps. Guest author Florian Ultsch explains why Austria’s tourism industry should now place a stronger strategic focus on Southeast Asia. The figures speak for themselves and the potential for hotels, destinations and attractions is highly promising.
Austria’s tourism industry is operating at a high level. Yet its strong dependence on a small number of core source markets makes the sector vulnerable. While overnight stays from Germany and Switzerland have recently declined, demand from Southeast Asia is growing. This opens up a future growth market for Austrian hotels, regions and attractions – provided they are willing to actively develop it.
Stability on Shaky Foundations
Austria’s tourism statistics paint a mixed picture. In May 2025, around 8.4 million overnight stays were recorded according to Statistics Austria – a solid result. June saw an increase of 18 percent year on year, while July already showed a decline of 1.3 percent.
Salzburg reflects a similar trend. Overnight stays by German guests fell by around 11.6 percent up to May 2025, according to official statistics. Despite this decline, the city recorded slight overall growth, driven by gains from new markets, including Southeast Asia.
A Look at Vienna: Momentum from Afar
Vienna illustrates how new markets are gaining traction. In 2024, the city recorded nearly 168,000 overnight stays from Southeast Asia, an increase of 8.2 percent compared to the previous year. While absolute figures remain small compared to core markets, the growth rates are remarkable. According to the Vienna Tourist Board, China has also returned to the city’s top ten source markets by overnight stays.
Nationwide figures underline this development. From January to October 2025, the Southeast Asian market grew by 25 percent year on year, making it Austria’s fastest growing source market.
Notably, with an average stay of 2.11 nights, guests from Southeast Asia record one of the longest lengths of stay among Asian source markets – a decisive advantage for regions focused on high quality tourism.
Singapore, Malaysia, Thailand and Vietnam are the main drivers of this growth. At a time when traditional source markets are stagnating, these countries are moving into sharper focus.
Why Southeast Asia?
Southeast Asia is often perceived in Europe as a “long haul market”, yet the region is becoming an increasingly important source of travellers. In Thailand, Malaysia, Vietnam and Singapore, a growing urban middle class views international travel as an integral part of its lifestyle.
A key advantage lies in travel timing. Many Southeast Asian travellers visit Europe outside the traditional high season. Spring and autumn – periods when Austrian businesses often struggle with occupancy – are attractive travel windows in countries such as Thailand and Vietnam. This gives Austria a tangible opportunity to strengthen its shoulder seasons.
How Southeast Asians Travel and What They Expect
Southeast Asia differs significantly from other Asian source markets such as India or China, both in travel behaviour and expectations. Demand is diverse yet clearly segmented. Alongside a stable group travel segment, independent travel is growing strongly. At the same time, the MICE sector, particularly incentive travel, offers significant short term potential, driven by economic growth, low compliance barriers and a growing affinity for Europe.
Singapore
High spending independent travellers seek authenticity, boutique hotels, historical city tours and gourmet experiences. Singapore is also a key incentive market.
Thailand
Affluent urban travellers are interested in wellness, nature based experiences and exclusive short breaks. At the same time, a young FIT segment is growing, booking digitally and placing strong value on Instagram worthy moments.
Vietnam
Group and incentive travel dominate, often booked well in advance. Family travel is organised via local agencies, where reliability and clear processes are essential.
Malaysia
Alongside the luxury segment, demand is growing for family friendly travel as well as culture and experience driven round trips.
Across all markets, strong digital behaviour is a common denominator. Bookings are predominantly made via mobile devices and social media plays a decisive role in destination choice. At the same time, personal relationships with tour operators, OTAs and agents remain essential, particularly in Vietnam and Malaysia, where trust is a key factor in distribution.
New Opportunities for Austria
Demand from Southeast Asia brings not only growth but also strategic advantages for Austrian tourism:
More shoulder season occupancy
Guests from Southeast Asia travel in spring and autumn, helping to close occupancy gaps and distribute tourism more evenly throughout the year.
Longer lengths of stay
With an average of 2.11 nights per stay, they represent one of the highest overnight stay durations among Asian source markets.
Strong alignment with Austria’s core strengths
Safety, nature, culture and quality are exactly what Southeast Asian travellers are seeking – and Austria offers these attributes in high density.
