Asia's New Holiday Tradition: How Christmas Markets are Reshaping Travel

SINGAPORE – December 10, 2025

As the year draws to a close, a festive transformation is sweeping across Asia’s major metropolises. The familiar glow of holiday lights is now accompanied by the scent of mulled wine and the sight of charming wooden chalets. This isn't Europe, but a burgeoning scene of Christmas markets from Tokyo to Bangkok that are redefining winter tourism and local economies. Digital travel platform Agoda recently spotlighted this trend with a curated guide, but the launch points to a much deeper shift: the rise of a multi-billion dollar experiential travel economy in Asia, built one festive market at a time.

From Novelty to Economic Powerhouse

What began as a niche novelty a decade ago has exploded into a mainstream cultural and economic force. These markets are no longer small-scale imitations but mega-events drawing millions. In Seoul, the Gwanghwamun Market, now in its fourth year, has been officially dubbed the city's "representative winter festival," attracting over 1.64 million visitors last year and generating 700 million Korean won for its 141 small business vendors. Similarly, Hong Kong’s WinterFest pulled in 1.2 million visitors in 2023, with the city's tourism board anticipating that mega-events like it contributed HK$2.4 billion in tourist spending in the first half of 2024 alone.

The scale is staggering. Taipei’s Christmasland, a dazzling spectacle of light and sound, has consistently drawn visitor numbers exceeding four million, becoming a powerful engine for local businesses. In Singapore, the Orchard Road Christmas light-up is expected to attract up to five million people, a figure on par with pre-pandemic levels. This isn't just about holiday cheer; it's a significant driver of urban economic activity during a traditionally quieter travel period for some regions. The trend is fueled by a profound shift in consumer behavior, with the global experiential travel market, currently valued at $250 billion, projected to nearly double by 2032. South Asia's slice of this pie is expected to grow from $25 billion to $70 billion, driven by a new generation of travelers.

The Strategic Pivot to Experience

Agoda's guide is more than a festive travel tip sheet; it’s a clear signal of a strategic pivot by major online travel agencies (OTAs). The business model is evolving from transactional bookings of flights and hotels to curating entire travel narratives. With 85% of global travelers now considering activities and experiences a vital part of their budget, platforms are racing to capture this lucrative market segment. This is where the true innovation lies—not just in the markets themselves, but in how they are packaged and sold to a global audience.

Competitors like Klook have been aggressively promoting "experiences," but Agoda's focused guide on this specific, high-growth niche demonstrates a sophisticated understanding of current travel desires. As Jun Dong, Associate Vice President at Agoda, noted in the company's announcement, these destinations "showcase the rich cultural diversity of the region." This framing is key. OTAs are no longer just facilitators; they are becoming cultural curators, responding to a traveler base, particularly Millennials and Gen Z, who prioritize immersive, shareable, and culturally rich adventures over simple sightseeing. By bundling flights, hotels, and now, curated festive activities, these platforms aim to own the entire customer journey and a larger share of their wallet.

Crafting the 'Euro-Asian' Holiday

The magic of these markets lies in their unique cultural alchemy. They meticulously recreate the ambiance of their European inspirations while seamlessly weaving in local identity. Tokyo's Christmas Market in Meiji Jingu Gaien proudly features a 14-meter Christmas tree shipped directly from Germany, while the Roppongi Hills market, now in its 19th year, models itself after Stuttgart's famous market. This commitment to authenticity provides a powerful draw. As one English teacher living in Seoul remarked about the Gwanghwamun Square Market, "It reminded me of home, I really appreciated the holiday experience and food."

Yet, these are not mere replicas. Alongside the German bratwurst and Glühwein, one might find a "Jusindang Secret Fortune-Telling Shop" at Seoul's Lotte Town market, or unique Taiwanese crafts in Taipei's Christmasland. This fusion creates a novel experience that appeals to a wide demographic. For regional tourists, it offers a taste of Europe without the long-haul flight. One visitor from Southeast Asia described the appeal as "killing two birds with one stone." For international visitors, it’s an opportunity to see familiar traditions through a new cultural lens, often at a more affordable price point, as seen with Japan's weak yen driving record tourism spending.

Reshaping Urban Identity and Community

Beyond the economic data and corporate strategies, these festive markets are having a tangible impact on the social fabric and identity of their host cities. They are becoming new annual traditions that foster community engagement and local pride. In Singapore, while tourists make up a significant portion of attendees, locals still comprise about 70% of the visitors at major festive events, demonstrating their deep integration into the local culture.

These events serve as powerful platforms for local artisans, chefs, and performers, creating a vibrant ecosystem that supports small businesses. The success of Seoul's Gwanghwamun Market is a testament to this, providing a crucial sales channel for local entrepreneurs. As these markets grow in scale and significance, they are also influencing urban planning, transforming public spaces like parks, squares, and waterfronts into dynamic hubs of activity. This festive placemaking not only enhances the city's appeal to tourists but also enriches the quality of life for residents, creating shared memories and a collective sense of celebration that transcends cultural and religious backgrounds. The challenge ahead will be to manage this explosive growth sustainably, ensuring these enchanting winter wonderlands continue to benefit the communities at their heart.