Asia-Pacific’s tourism seen struggling to recover until 2024
Tourism in the Asia-Pacific region will take longer to recover from the adverse effects of the Covid-19 pandemic, the newly released “Travel-ready index 2022” by the Economist Intelligence Unit (EIU), the research and analysis division of UK media company Economist Group, found.
The tourism industry is essential to Asia, with expenditure accounting for more than ten per cent GDP in the regional countries on average, the study noted.
For tourism services, the negative economic effect of Covid-19 has deepened amid widespread border closures and strict travel and quarantine regimes in the past two years, it added.
Reopening borders and attracting international tourists will be a priority, the EIU said, adding that widening vaccine access and the subsiding of the lethal nature of Covid-19 would “present opportunities” for the region.
Malaysia, Singapore with greater readiness
However, there are big differences in the readiness of countries to reopen. Fiji, Sri Lanka, Malaysia and the Maldives top the index of destinations best placed to revive their pandemic-battered tourism, according to the study, adding that Singapore, Australia, Bangladesh, New Zealand, Nepal and Cambodia also rank among the top ten destinations best placed for a tourism recovery.
The EIU said the top performers in the index have all eased visa and entry restrictions since 2021 or earlier.
On the downside, Hong Kong has the worst prospects due to its continued restrictive border policies. The special administrative region is followed by Brunei, Bhutan, Taiwan, Samoa, Vanuatu, Japan, China and Laos as the destinations with currently the least favourable conditions for tourism, according to the index.
Thailand, India, the Philippines, Papua New Guinea, Indonesia, Vietnam, Mongolia and South Korea were ranked mid-table for tourism conditions.
Vietnam a laggard despite opening measures
Still, Vietnam lags well behind several of its Southeast Asian peers in terms of tourism recovery prospects, according to the index. The country has a final score of 4.08 out of ten in the index, putting it behind Malaysia (2.15), Singapore (2.45), Cambodia (3.25), Thailand (3.3), the Philippines (3.75) and Indonesia (4.05).
The EIU said tourism in the region, with the exception of Fiji and the Maldives, would likely not recover to pre-pandemic levels until at least 2024, largely as a result of China’s restrictive border policies. Among the 28 economies in the index, 13 relied on China as their top source of visitors before the pandemic.
Other risks to the recovery highlighted by the think tank include new coronavirus variants, higher oil prices and soaring inflation. Also, airlines remain cautious to put back flights on their schedules given their exhausted balance sheets and the current volatile jet fuel prices.
[caption id="attachment_38412" align="alignleft" width="300"] Beaches so far have remained largely empty in Thailand[/caption] Tourism in the Asia-Pacific region will take longer to recover from the adverse effects of the Covid-19 pandemic, the newly released “Travel-ready index 2022” by the Economist Intelligence Unit (EIU), the research and analysis division of UK media company Economist Group, found. The tourism industry is essential to Asia, with expenditure accounting for more than ten per cent GDP in the regional countries on average, the study noted. For tourism services, the negative economic effect of Covid-19 has deepened amid widespread border closures and strict travel and...
Tourism in the Asia-Pacific region will take longer to recover from the adverse effects of the Covid-19 pandemic, the newly released “Travel-ready index 2022” by the Economist Intelligence Unit (EIU), the research and analysis division of UK media company Economist Group, found.
The tourism industry is essential to Asia, with expenditure accounting for more than ten per cent GDP in the regional countries on average, the study noted.
For tourism services, the negative economic effect of Covid-19 has deepened amid widespread border closures and strict travel and quarantine regimes in the past two years, it added.
Reopening borders and attracting international tourists will be a priority, the EIU said, adding that widening vaccine access and the subsiding of the lethal nature of Covid-19 would “present opportunities” for the region.
Malaysia, Singapore with greater readiness
However, there are big differences in the readiness of countries to reopen. Fiji, Sri Lanka, Malaysia and the Maldives top the index of destinations best placed to revive their pandemic-battered tourism, according to the study, adding that Singapore, Australia, Bangladesh, New Zealand, Nepal and Cambodia also rank among the top ten destinations best placed for a tourism recovery.
The EIU said the top performers in the index have all eased visa and entry restrictions since 2021 or earlier.
On the downside, Hong Kong has the worst prospects due to its continued restrictive border policies. The special administrative region is followed by Brunei, Bhutan, Taiwan, Samoa, Vanuatu, Japan, China and Laos as the destinations with currently the least favourable conditions for tourism, according to the index.
Thailand, India, the Philippines, Papua New Guinea, Indonesia, Vietnam, Mongolia and South Korea were ranked mid-table for tourism conditions.
Vietnam a laggard despite opening measures
Still, Vietnam lags well behind several of its Southeast Asian peers in terms of tourism recovery prospects, according to the index. The country has a final score of 4.08 out of ten in the index, putting it behind Malaysia (2.15), Singapore (2.45), Cambodia (3.25), Thailand (3.3), the Philippines (3.75) and Indonesia (4.05).
The EIU said tourism in the region, with the exception of Fiji and the Maldives, would likely not recover to pre-pandemic levels until at least 2024, largely as a result of China’s restrictive border policies. Among the 28 economies in the index, 13 relied on China as their top source of visitors before the pandemic.
Other risks to the recovery highlighted by the think tank include new coronavirus variants, higher oil prices and soaring inflation. Also, airlines remain cautious to put back flights on their schedules given their exhausted balance sheets and the current volatile jet fuel prices.
