Jakarta. Asian Development Bank (ADB) recently unveiled its plan to inject another $3 billion to turn ASEAN nations into better tourist magnets.

ADB’s Philippines country director Andrew Jeffries said that the lender had deployed over $3.7 billion to Southeast Asia’s tourism sectors between 2015 and 2025. Another financing package is in the works.

“[There is] a further $3 billion planned over the next three years,” Jeffries told the ASEAN Tourism Investment Showcase on Tuesday, as live-streamed by the bloc’s chair, the Philippines.

Jeffries did not disclose more details on the money set to be rolled out through 2030, including the pecking order of the projects. ADB, which Jeffries described as ASEAN’s “main bank”, aims to mobilize up to $30 billion to the region throughout this year. 

According to his estimate, tourism has generated almost $400 billion equivalent to ASEAN economies and supported over 46 million jobs. By 2036, the sector’s contribution will skyrocket to $685 billion. The “gap between capital and investable projects” – if left alone – could deter tourism investments from flowing into the region.

“And insufficient capital is not always the constraint. Liquidity exists, but destinations are not prepared to attract it. Meanwhile, governments have finite public resources and face compelling priorities. So [they] need to use private capital where projects are viable,” Jeffries said.

ASEAN deputy secretary-general Naraya Soeprapto admitted that a beautiful destination would not automatically translate into bankability, hence the need for enabling environments. Some projects may be commercially attractive to private investors, but others require blended finance guarantees.

“The opportunity is to use such financing strategically, not to replace private investment, but to catalyze it,” Naraya said, commenting on the planned $3 billion ADB funding.

ASEAN statistics showed that the region saw around 121 million international tourists in 2024, which was 88% of the pre-pandemic levels. Arrivals rebounded to 92% of pre-COVID levels in the first half of 2025. Thailand is the most popular ASEAN destination for international vacationers.

ASEAN registered $245.7 billion in overall foreign direct investment inflows last year.

Indonesia — Southeast Asia’s biggest economy — has set a target to welcome between 16 million and 17.6 million foreign tourists this year. However, the government is worried that tourism investors are only coming to Bali, which comes as no surprise, as foreigners mainly spend their vacation there.

“Indonesia is not just Bali,” Tourism Minister Widiyanti Putri Wardhana said not long ago, while citing the “significant tourism and investment potential” in other parts of the archipelago.

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