Chinese travelers are reshaping Southeast Asia’s tourism map, with Vietnam emerging as the biggest winner and Thailand losing ground. Vietnam welcomed nearly 14 million foreign visitors by August, including a 44% rise in Chinese arrivals, pushing retail sales up 51% YoY. High-spending Chinese tourists favor boutique tours, premium hotels, and luxury dining, with Da Nang and Nha Trang becoming hotspots. Malaysia also benefitted, with Chinese arrivals up 35% in H1. By contrast, Thailand saw Chinese arrivals drop 35% in 2025 amid safety concerns and rising costs, costing an estimated $3.5 billion in lost revenue. Flight capacity from China fell 11% in the first eight months.