The growing middle class in India, Indonesia, and Vietnam is expected to drive a significant boost in tourism across these nations. Hotel group Accor is eyeing major expansion in Asia, capitalizing on this trend. The increasing number of Gen Z travelers is also expected to fuel demand for boutique and design-focused hotels, blending business with leisure travel.

According to Jean-Jacques Morin, Deputy CEO of Accor SA, the rising affluence of the middle class in these countries will lead to a tourism boom. “As economies grow and people become wealthier, they spend more and seek enjoyable experiences, which is where we come in,” Morin said in a Bangkok interview. “The way people consume has shifted. Now, it’s about experiences, not just products, a change that was accelerated by the pandemic.”

Accor, with nearly 6,000 hotels globally across more than 45 brands—from budget options like Ibis to luxury resorts like Raffles and Banyan Tree—plans to grow its portfolio by 3% to 4% this year, with a substantial portion of that growth in Asia, Morin noted.

India, along with Southeast Asia, is seen as a major area for growth. While established markets like Singapore, Thailand, and Japan will continue to perform well, emerging markets like Vietnam and Indonesia, which is both Southeast Asia’s most populous nation and largest economy, are expected to thrive.

Despite a slow post-pandemic recovery in Asia, mainly due to the sluggish rebound of China’s economy, Morin remains optimistic about the region’s long-term prospects. He predicts only slight growth in revenue per room at Accor’s 700 hotels in China in the short term but anticipates a stronger recovery in the coming years.

Morin is particularly positive about India’s outlook, citing the country’s record-breaking aviation orders in 2023, with Air India and IndiGo placing orders for 970 planes in anticipation of a surge in both domestic and international travel.

“The numbers speak for themselves,” said Morin. “The middle class is the key driver of the tourism industry. As people become wealthier, their desire to explore the world grows.”

Additionally, the rise of Gen Z tourists—those born around the turn of the millennium—will accelerate the demand for boutique, design-driven hotels. This generation tends to spend more on dining and beverages and favors “bleisure” trips, where business and leisure travel merge seamlessly.