Cheap holidays in south-east Asia due to lack of Chinese tourists

Fancy a three-night stay at the plush Banyan Tree Hotel in Bangkok, beneath one of the world's ultimate rooftop bars, starting from $750? How about a week in mid-August at the gorgeous Alila Ubud tucked away in a serene location just outside Bali's cultural hotspot, just $1960? Or that same week at the colonial-style Anantara Hoi Ann midway along Vietnam's coastline, starting from $1992?

It's only recently that those countries have opened to fully vaccinated travellers - Thailand since July 1, since June 8 in the case of Indonesia, Vietnam from mid-May – and hoteliers are priming the pump with bargain-basement rates.

"Bali, Thailand and Vietnam remain incredible value for travellers," according to Adam Schwab, CEO of Luxury Escapes, "especially now they're open for visitors with virtually all COVID restrictions removed. This means Luxury Escapes has been able to offer even more additional value. For example, our all inclusive offer at the fabulous Melia Resort in Bali is around 20 per cent better value than pre-COVID." At the 4-star Phuket Graceland Resort and Spa on Patong Beach, one of Asia's favourite holiday destinations, "a 'stay six nights pay for three' deal starts from $580 per couple including breakfast," says Lorraine Young, Flight Centre's Product Delivery Co-ordinator.

Selections from Luxury Escapes' website include a week in late August at the swanky beachfront Sarojin at Khao Lak, north of Phuket at around $1800, or that same week at the ultra-luxe Apurva Kempinski Beachfront Resort at Bali's Nusa Dua, from $2800. For something closer to Bali's nightlife action, a week at the smart Mamaka by Ovolo at Legian will set you back just over $1000. Some of the best deals are to be found in Bangkok, such as the Shangri-La, starting price a shade under $200 per night.

The countries where rates have fallen most are those that relied on visitors from China, and tourism from China is dead in the water. In 2019 Thailand welcomed 11 million Chinese tourists, more than a quarter of its total visitor numbers. Vietnam saw 5.8 million Chinese visitors, Cambodia 2.4 million and Indonesia 2.1 million. In 2022, except for essential reasons, Chinese citizens are forbidden from travelling overseas. All those countries are anticipating a swift revival of their tourism industries but given the fierce lockdowns that the Chinese leadership continues to impose when COVID-19 threatens to take root in their community, Chinese tourists could be absent from south-east Asia for some time yet. That could mean soft prices as hotels compete for a slice of a smaller tourism pie, particularly in Thailand.

The place to look for bargains is on the websites that bundle accommodation together with airfares, such as Luxury Escapes, Trip-A-Deal and Flight Centre. The discounts that these operators can leverage by virtue of their purchasing power often make their deals sharper than booking your own airfare and the same room in the same hotel, even through the hotel's own website.

While the hotel deals are great, airfares aren't. Post-pandemic, we're paying between 20-50 per cent more for air travel. It makes sense therefore to reduce the cost per day of your getaway with a longer break. Including economy airfares, a one-week holiday for two in a Pool Residence at Thailand's Sarojin could cost around $635 per night booked through Luxury Escapes. Stay for two weeks, split your trip between the Sarojin and the five-star Banyan Tree in Bangkok and the cost for airfares plus accommodation for two drops to around $465 per night. Even on the one-week getaway however, you'd be hard pressed to find air travel plus holiday accommodation of that quality at a similar price anywhere in Australia.

The great unknown is when Chinese citizens will be allowed out. When they do, the high airfares that throttle back demand from Australian travellers as well as those from Europe and North America won't apply to the China market – they're a lot closer to south-east Asia than we are. Once the China opens the floodgates, expect hotel prices to leap.

The smart money says book in now.