Double-digit tourism growth in southeast Asia is attracting the world’s hotel investors and operators in increasing numbers. But, as the region’s unspoilt beaches and remote communities are transformed into yet more resorts, governments, environmentalists, and even potential guests are scrutinising their impact.
A few careful pioneers have tried to set an example, such as Singaporean shipping magnate, Tim Hartnoll, who in 2017 opened Bawah Reserve on a cluster of remote Indonesian islands surrounding two lagoons. For the design, eco-conscious Hartnoll turned to Sim Boon Yang, the co-founder of Singapore-based architectural firm eco.id, which already had a reputation for upmarket resorts executed with a light touch.
The resort’s bamboo structures were built by hand, with no cranes or excavators brought to the islands, while local plants were used to landscape the site, to avoid the introduction of alien species. Today, permaculture gardens provide 60 percent of the resort’s food. From day one, Hartnoll insisted that no water or waste from the hotel be released into the lagoon to preserve its delicate ecosystem. Accordingly, water is reused for consumption thanks to reverse osmosis, or recycled through grey water systems for toilets and irrigation.
Says Hartnoll: “You’ve got to be a bit crazy to do these projects. It is, by far, the most complex business I have. There were times I wondered why I was doing it. But once we got started, I didn’t want to compromise at all.”
Barefoot luxury
Similarly eco-conscious resorts have sprung up across Indonesia’s archipelago, which comprises more than 17,000 islands and islets. Many have become the pet projects of billionaires, such as Nihi Sumba on Sumba Island, the brainchild of Chris Burch, co-founder of fashion brand Tory Burch. Inheriting a project with its own charitable foundation, designed to give back to the island, Burch ensures that the resort today relies on local resources as much as possible and mimics local builds with grass roofs.
Private islands such as Pangkil, Pulau Joyo, Nikoi and Cempedak have also tried to maintain a local equilibrium by limiting guest numbers and careful resource management; for example, Joyo Resort, as sole occupier of what it describes as a “Robinson Crusoe” island with a miniscule footprint, comprises just half a dozen grass-roof joglos and “palaces” for around 20 guests. “Spillover” houses are available for those that want to book out the whole island for a private party, capped at around 45 guests in total.
Industrial take
Yet as tourists reach southeast Asia in ever greater numbers, an “industrial” response from hospitality investors and operators is likely to arrive as well. Vietnamese intelligence firm Outbox says that in 2024, numbers visiting the region soared, with Vietnam recording a 39.5 percent year-on-year increase in arrivals, while Thailand experienced a 28.1 percent growth, and Malaysia saw visitors increase by 24.2 percent. Cambodia, Singapore and Indonesia saw visitors swell by 22.9 percent, 21.9 percent and 19.6 percent respectively, compared to 2023 figures.
As part of its comprehensive Asia ambitions, tourism giant TUI has been expanding its popular leisure brand, TUI Blue in the region. In the wake of new hotels opening in Thailand and Vietnam in recent months, the group recently expanded into China and Malaysia. The latter property, TUI Blue The Haven Ipoh, offers 150 rooms in the capital city of Perak state. TUI Blue Maduzi Bangkok in Thailand and TUI Blue Berawa in Bali will be the next to open.
"Our rapid expansion in China and Southeast Asia underscores the strong demand for the TUI Blue brand in these fast-growing travel markets," says Artur Gerber, managing director of TUI Blue Hotels & Resorts. "As we continue to bring our unique blend of leisure accommodations and locally-inspired experiences to more destinations, we are confident that TUI Blue is an excellent addition to the region's hospitality landscape.”
The all-inclusive formula is another popular route for expansion in the region, tying with visitor expectations for the resort experience. Lifestyle hospitality company Ennismore has recently inked a deal with Vietnam’s Sun Hospitality Group to open Rixos Phu Quoc, the first iteration of the all-inclusive Turkish brand in southeast Asia, with an opening slated for mid-2026. Rixos Phu Quoc will feature over 1,300 guest rooms in five categories, including 207 suites, on a beachfront setting. Says Gaurav Bhushan, co-CEO at Ennismore: “As the only all-inclusive resort on the island, Rixos Phu Quoc will set a new standard inspired by local culture and Turkish influences, establishing itself as the ultimate luxury leisure escape.”
Meanwhile, Meliá will debut its all-inclusive brand, Paradisus by Meliá, in southeast Asia in December, through the conversion of the historic Meliá Bali, the first hotel opened by the group outside Spain almost 40 years ago. The new Paradisus by Meliá Bali will feature 485 luxury suites and seven villas, served by four pools and comprehensive wellness amenities, including a 12-treatment room sanctuary. The property however is expected to echo the strict sustainability pledge that has long been in place at the site, which includes ecosystem conservation and management, zero plastic use, waste minimisation and a social and community involvement programme.
Emphasising an eco-approach
Indeed, for many major brands, emphasising a eco-friendly approach is a core part of the messaging as they expand. Radisson’s up-and-coming Radisson Resort Mui Ne, located along the unspoiled shores of Suoi Nuoc Beach in Binh Thuan, Vietnam, will place ecology at the heart of its luxury experience, according to the group. From generating solar powered energy to bottling its own water on site, it will aim to source food from local, organic producers, including the coffee it serves – a key Vietnamese export.
IHG Hotels & Resorts is another name monitoring its footprint as it expands, adding community support to its list of sustainable objectives. For example, during 2024, the group supported 800 families in Indonesia through IHG’s partnership with Saab Shares, a charity which provides accommodation, part-time education and access to healthcare for underprivileged children and low-income families.
A partnership with Blue Dragon Children’s Foundation in Vietnam, meanwhile, resulted in the support for 3,500 children and youths in Dien Bien province with skills training, career workshops, scholarships and educational assistance.
Rajit Sukumaran, SVP & managing director, East Asia & Pacific (EAPAC), IHG Hotels & Resorts, says: “I am incredibly proud of the impact our teams have made through devoting their time and energy to the communities around us. In collaboration with our incredible partners, we improved the lives of over 334,000 people last year, that is a fantastic achievement.
“We have strong leadership across our teams, working at all levels of the business, and together, we will continue to strengthen and scale up our partnerships to make a positive difference in the places in which we operate.”