Premium Food And Beverage Key To Boosting High-Quality Tourism In Southeast Asia: APISWA Study

Premium food and beverage (F&B) experiences are rapidly emerging as a key driver of high-quality tourism in Southeast Asia, according to new research commissioned by the Asia-Pacific International Spirits and Wines Association (APISWA) with the support of tourism-industry partners. The study reveals that destinations offering these experiences are 2.5 times more likely to attract high-quality travellers, who are also willing to spend up to US$250 more per person per day on average for premium F&B.

As Southeast Asia’s tourism industry continues to rebound, total spending is still lagging behind pre-pandemic levels, with projections for 2024 reaching just US$141 billion, down from US$165 billion in 2019. In response, the region is increasingly focused on attracting high-quality tourists—those who spend more per trip and place a premium on unique, immersive travel experiences. This shift towards prioritising quality over quantity also comes as governments look to balance the economic benefits of tourism with its environmental and social impacts.

“Tourism is evolving simply beyond attracting visitors—it’s about creating meaningful, authentic experiences that resonate with travellers seeking deeper connections,” said Olivia Widen, Representative at APISWA. “This report comes at a critical juncture as governments in Southeast Asia seek to unlock the potential that high-quality tourists can bring to delivering a tourism strategy that drives broader economic growth. The region, renowned for its rich culinary heritage and artisanal spirits, as well as being home to world-class cocktail bars and internationally known chefs, can elevate its appeal through premium food and beverage offerings to help position itself as a leader in high-quality tourism for those who seek more than the ordinary.”

The study, conducted by Oxford Economics, is based on a novel survey-based experiment of 1,800 travellers from Southeast Asia’s key source markets, including China, South Korea, Australia, the United States, and the United Kingdom – collectively responsible for 46% of Southeast Asia’s travel and tourism spending in 2019. In addition, the study includes insights from a series of interviews with tourism-industry partners across Southeast Asia such as the Singapore Nightlife Business Association, the Thai Retailers Association, and Hilton Saigon.

The study uncovered several key insights into the role that premium F&B experiences play in attracting high-quality tourists to Southeast Asia. These findings are crucial for destinations looking to boost their appeal and drive higher spending among travellers. Key insights from the report include:

1.     F&B is a key driver of destination choice

70% of prospective travellers to Southeast Asia consider the range and quality of food and drink offerings as an important factor when selecting a destination—higher than historical and cultural sites (61%), shopping (44%), and friendliness of locals (65%). This sentiment is even stronger among high-income travellers, with 75% ranking F&B as a priority, compared to mid- (72%) and low- (66%) income travellers.

2.     High-quality tourists are attracted to premium F&B

Destinations offering premium F&B experiences, such as diverse, high-quality F&B products from award-winning chefs, a wide variety of options that are convenient to access, and exceptional service, are 2.5 times more likely to attract high-quality travellers. These can include from travellers from a broad income spectrum, from luxury tourists, mid-range travellers, and value-conscious visitors. The accessibility to food options contributes a 30% boost to destination preference, while the presence of skilled and trained restaurant and bar staff, such as mixologists and sommeliers, adds another 29%, highlighting the importance of both convenience and service quality in attracting discerning travellers.

3.     Tourists are willing to spend more on premium F&B

Travellers are willing to pay significantly more for premium F&B experiences. On average, tourists are prepared to spend an additional US$250 per person per day in destinations that offer premium F&B options over destinations that have more basic F&B offerings. Notably, Chinese and South Korean travellers exhibit the greatest willingness to pay for premium offerings, up to US$310 per person per day, the highest among all source markets.

4.     Value for money remains a priority

Despite their willingness to pay more for high-quality F&B experiences, travellers remain mindful of value. In fact, 78% of high-income travellers prioritise value for money when making their travel decisions—even more so than low-income travellers (75%). A price increase of just US$20 per day could lead 10% of travellers to opt for less premium alternatives, underlining the importance of balancing quality with affordability to meet consumer expectations.

5.     What’s premium varies across markets

Perceptions of a premium experience vary significantly by traveller source markets. For instance, Chinese tourists prioritise convenience, often willing to pay up to three times more (USD196) for destinations with highly accessible dining locations, extended opening hours and quick service. On the other hand, travellers from Australia, South Korea, the US, and the UK place greater importance on service, willing to pay anywhere from USD51 to USD132 more for personalised service and knowledgeable staff.

6.     Safety and reliability are non-negotiable

A strong emphasis on food safety and reliability is crucial for attracting tourists to Southeast Asia, with 84% of prospective travellers citing this as an important factor when choosing a destination. This is especially true for travellers aged 35 and above. This underscores the need for destinations to uphold stringent safety and reliability standards in their food and beverage offerings. The safety, quality, and provenance of food and drink not only enhance a destination’s reputation but are also integral to long-term tourism growth and visitor satisfaction.

Nasen Xavier Thiagarajan, President, Singapore Nightlife Business Association comments: “While the region’s tourism landscape relies heavily on the ability of premium F&B offerings to drive economic growth, certain regulatory barriers such as high taxes and restricted trading hours limit the industry from contributing meaningfully to the tourism economy,” he said. “Tackling these challenges could allow Singapore’s F&B sector to thrive, boosting the city’s appeal as a destination and supporting the broader goals of sustainable tourism growth.”

Laura Houldsworth, Managing Director of Asia-Pacific, Booking.com added:

“Travellers today are increasingly seeking authentic, immersive experiences that create a deeper connection with the destinations they visit,” she said. “At Booking.com, our mission is to make it easier for everyone to experience the world, by providing curated recommendations and seamless access to a wide range of travel options. As APISWA and Oxford Economics’ research shows, premium food and beverage offerings are a key driver in attracting high-quality travellers—those who prioritise distinctive and meaningful experiences. This growing demand for quality, immersive travel reflects our commitment to helping travellers and destinations meet the evolving expectations of today’s discerning tourist.” For more details on APISWA and to explore the full report, visit here.

Methodology

Research commissioned by Asia-Pacific International Spirits and Wines Association (APISWA), in collaboration with travel industry partners across Southeast Asia. Conducted among a sample of 1,800 prospective tourists from five key source markets: China (361 respondents), South Korea (361 respondents), Australia (365 respondents), the United States (364 respondents), the United Kingdom (371 respondents). Conducted in July 2024 the study used a discrete-choice experiment to simulate real-world decision-making scenarios, where respondents evaluated hypothetical travel packages with varying attributes like accommodation type, food and beverage options, service quality, and trip costs. This method helped identify the key factors influencing destination choices and tourists’ willingness to spend.

To complement this survey, in-depth interviews were conducted with nine (9) prominent tourism organisations across Southeast Asia, including national tourism boards and key private sector stakeholders such as representatives from hotels, restaurants, and retail.

APISWA

The Asia Pacific International Spirits and Wines Alliance (APISWA) represents 11 global spirits and wine producers operating across the Asia-Pacific region. Member companies include Bacardi, Brown Forman, Campari, Diageo, Edrington, Moët Hennessy, Pernod Ricard, Proximo, Remy Cointreau, Suntory and William Grant & Sons. APISWA aims to foster an environment where legal spirits and wine can be enjoyed responsibly and which supports a vibrant, sustainable and responsible hospitality and tourism industry.