Southeast Asian countries, facing a slowdown in Chinese tourist arrivals, are making a visible pivot towards India to fill the gap. From easing visa rules to rolling out direct flights and launching India-specific promotions, nations across the region are trying to tap into a market that is now more travel-hungry — and willing to spend — than ever before.
This recalibration is backed by numbers. According to OAG, a global travel intelligence provider, the scheduled seat capacity between India and six Southeast Asian countries — Thailand, Singapore, Malaysia, Vietnam, Indonesia, and Myanmar — is projected to rise by 15.6% in 2025 compared to 2024. That would take the total to 10.8 million seats, a significant jump from 9.35 million in 2024 and 29% more than pre-pandemic 2019 levels.
Vietnam is proving to be the breakout destination. It wasn’t even on the radar for most Indian travellers five years ago. Now, it ranks as Vietnam’s sixth-largest source market. Indian arrivals to the country in 2024 were nearly three times the 2019 figures. And it’s not slowing down.
OAG estimates that scheduled seat capacity between the two countries will hit 0.9 million in 2025 — a 20% increase. This surge follows a new air services agreement signed in 2023, which expanded weekly flight entitlements from 28 to 42. Vietnamese airlines, particularly Vietnam Airlines and VietJet, appear to have grabbed the opportunity quickly.
There’s also a new strategic angle: Vietnam is being seen as a possible layover point for Indians travelling to China, where direct flights remain sparse despite negotiations.
Thailand, Singapore, and Malaysia continue to lead in terms of total flight capacity, but newer markets like Cambodia and the Philippines are now testing the waters with direct services.
Cambodia Angkor Air, for instance, started a twice-weekly Delhi–Phnom Penh flight last year. OAG expects this route to see about 20,000 seats in 2025. The Philippines, relatively inactive in India since the pandemic, is gearing up to re-engage with a new direct Delhi–Manila flight by Air India, beginning October 1.
Even Indonesia, which already attracts substantial Indian footfall, has stepped up. A revised bilateral agreement now permits up to 9,000 one-way seats per week. Current services from Air India and IndiGo are reportedly struggling to meet demand. In 2024, more than 650,000 Indians visited Indonesia. That number could climb to 710,000 in 2025, suggests aviation consultancy Pear Anderson.
Travel agents say it’s not just about volume. The average Indian traveller is now booking longer holidays and spending more per person. That’s made Indian tourists particularly attractive to Southeast Asian economies that once relied heavily on China.
“Countries are actively competing for Indian travellers,” said Anil Kalsi, vice president of the Travel Agents Federation of India. “Visa waivers and simplified e-visa policies, especially in Thailand, Malaysia, Indonesia and the Philippines, are clearly making it easier.”
The ripple effect is being seen even in countries that had limited past engagement with India. Airlines, too, are expanding aggressively, eyeing not just point-to-point travellers but also those looking to connect onwards to East Asia and Australia.
While these developments signal a clear trend, whether it translates into sustained travel flow will depend on pricing, capacity, and geopolitical shifts. Airfares remain volatile, and infrastructure gaps — especially in tier-2 Indian cities — might limit outbound travel. But the appetite appears real, and the shift underway.
It’s early days, but India’s role in Southeast Asia’s tourism economy is no longer a side story. It could soon become the main plot.