One explanation of the rise of tourism development in Southeast Asian countries is importantly lies on the cultural proximity as well as economic cooperation that exist in most of its associated countries. As a number of countries were successful in attracting FDI, thus, the presence of these foreign firms became a source in booming the tourism industry. Britton (1982) pointed out that a country’s tourism industry would extend and gain more from tourism development if there is a presence of foreign enterprises. This also explains why some countries of Southeast Asia are, in tourism terms, given ample opportunities to foreign firms of tourism industry through different measures of incentives (i.e. tax exemption, tax holidays etc.). Therefore, the amount of FDI in the Southeast Asian tourism industry is increasing in recent years. This FDI inflow represents new dynamics to the tourism industry of this bloc which is posing some challenges for its development. To meet these challenges, there is a need to put emphasis on some policies; 1) to train qualified tourism workforce in the technical field, 2) to support innovation, 3) to venture capital, and 4) to design infrastructure in order to witness positive impact on competitiveness (Caballera, 2012). Some reviewers often argued that the problems that the Southeast Asian countries are facing in developing the tourism industry are linked to the structural differences remain in the overall pattern of tourism development. The lack of precise strategies for tourism development in some of its member countries against others is clearly reflecting the lack of integration and implementation due to hindered progress. As a result, tourism development has appeared as insufficient for some countries, for example Myanmar, Laos, while tourism development is defined to be reached at its excessive level in some of its associated countries (for example, Singapore). Although some of the member countries have taken initiative to reform the tourism sector, the full realization of this reform needs time to mobilize the resources in the face of resource constraints. The lack of institutional support and inadequate resources is, sometimes, engendering lack of profitability to the tourism enterprises in many cases. The structure of tourism industry also needs to be refined and linked to all the tourism stakeholders. The promotion of tourism to attract tourists is yet to be initiated in some countries. Considerable dependence on foreign staffs and the lack of skilled human resources are also appeared as drawback for the progress of tourism development. Leakages and lack of inter-sectoral linkages are also needed to be taken into consideration to progress further. Above all, tourism’s economic impacts are not fully realized at the community level of many Southeast Asian nations. Inadequate training is also a major setback in successful tourism development in the region.