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The Impact of Covid-19 on the Southeast Asian Tourism Industry

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The Impact of Covid-19 on the Southeast Asian Tourism Industry THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN WEEKLY SUMMARY TOURISM 18 OCT 2020 Hannah Pearson INDUSTRY [email protected] INTRODUCTION As a market highly dependent on both Chinese outbound tourism and the Chinese economy, Southeast Asia is a region which was heavily affected by COVID-19 even in the early months of 2020. With the declaration of a pandemic, as well as the closing of borders and imposition of lockdowns, Southeast Asia’s tourism economy will continue to be impacted for the foreseeable future. View this information online and more on our frequently updated dashboard at: https://www.pearanderson.com/coronavirus/ Sign up to be added to our weekly mailing list, with this report sent out every Sunday: https://insights.pearanderson.com/sea-covid-summary THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY IMPACT SUMMARY Week ending Sunday 18th October 2020 INBOUND TRAVEL OUTBOUND TRAVEL COUNTRY LOCKDOWN RESTRICTIONS RESTRICTIONS CASES DEATHS Cambodia Partial Visa restrictions Discouraged 283 0 Indonesia Partial Visa restrictions Restricted 361,867 12,511 Laos None Visa restrictions Discouraged 23 0 Malaysia Partial Visa restrictions Restricted 20,498 187 Myanmar Partial Visa restrictions Discouraged 34,875 838 Philippines Partial Not permitted Not permitted 356,618 6,652 Singapore Partial Visa restrictions Restricted 57,911 28 Thailand None Visa restrictions Flight restriction 3,686 59 Vietnam None Visa restrictions Restricted 1,126 35 Data accurate as of 20:25 (UTC+8) on 18 Oct 2020 Partial lockdown = closure of schools or some non-essential services (e.g. entertainment), recommendation to work from home Lockdown = closure of all non-essential businesses, restricted movement COVID-19 case & death statuses from John Hopkins Coronavirus Resource Center International arrivals from Jan-Aug drop 72% YoY to CAMBODIA 4.36 million. On Page 4 • Runway expansion of Sihanoukville Airport • CAMDMC are preparing a draft tourism reopening completed and scheduled for use in Q4 2020 plan to submit to the government Reciprocal Green Lane for essential business and cross- INDONESIA border travel agreed with Singapore from 26 Oct. On Page 13 • Tourism Ministry wants to disburse $224 mil USD • Flights at Soekarno-Hatta airport increased by of grants to tourism businesses 5% on the first day of the PSBB transition period The Lao Thiao Lao campaign picks up speed with LAOS promotions and media fam trip. On Page 33 • Returning residents can quarantine at home • China and Laos discuss fast-track immigration instead of designated centres policy Pear Anderson Sign up for weekly updates 18 Oct 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY Partial lockdown reimposed on Kuala Lumpur and MALAYSIA surrounding states as cases continue to climb. On Page 37 • Negotiations with Malaysia Airline creditors • Hotels have recorded a 15% drop in occupancy continue; Firefly could become new national since 1 Oct carrier MYANMAR All states have now had locally transmitted cases. On Page 66 • Yangon’s cases decreasing, but not over yet • Sampan Travel launch online tour led by a famous military historian Non-essential outbound travel for Filipinos permitted PHILIPPINES from 21 Oct. On Page 74 • Baguio will reopen to tourists from Luzon, • 4.8 million Filipino tourism workers have been including Metro Manila, from 23 Oct affected by the pandemic Singapore and Hong Kong reach “in principle” SINGAPORE agreement to establish bilateral air travel bubble. On Page 99 • Genting Cruise Lines receive 6,000+ bookings in • Reciprocal Green Lane for essential business the first 5 days for its “cruises to nowhere” travel agreed with Indonesia from 26 Oct THAILAND Daily student protests in Bangkok could destabilise the country. On Page 120 • First group of 120 STV tourists expected to arrive • Thailand in talks with China to establish on 20 Oct quarantine-free travel by Jan Vietnam Airlines report losses of $464 million USD in VIETNAM Jan-Sep, with revenue down 58.3% YoY. On Page 151 • Japan and Vietnam coming to agreement • Vietravel has received its air licence and will allowing short business trips soon operate its first flight on 18 Dec Pear Anderson Sign up for weekly updates 18 Oct 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY CAMBODIA Tourism industry stands to lose $5 billion USD. TRAVEL All visa exemptions, visas on arrival and e-visas are suspended. Travellers must RESTRICTIONS have valid medical certificates issued 72hrs prior to travel, proof of medical insurance worth up to $50k USD, be tested for COVID-19 upon arrival and undertake a 14-day quarantine with a re-test on the 14th day. They must deposit $2,000 USD on arrival (IATA). LOCKDOWN More schools reopened nationwide on 7 Sep, while all karaoke parlours, spas and STATUS massage parlours are closed. Large religious gatherings are banned. Flight searches and booking volume for travel Future flight search for travel to to Cambodia Cambodia Source: Sojern COVID-19 dashboard Source: Sojern COVID-19 dashboard TRAVEL BUBBLES & INTERNATIONAL BORDERS 11 Sep: The Cambodian government has urged ASEAN to work towards “travel corridors” >> 11 Sep: Vietnam expects to resume commercial flights to Laos and Cambodia from 22 Sep. Passengers will need to have a negative certificate prior to departure, and will be tested on arrival twice. Foreign passengers will need to pay for all quarantine and testing, as well as install the app Bluezone >> Pear Anderson Sign up for weekly updates 18 Oct 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY 3 Sep: The Civil Aviation Authority of Vietnam (CAAV) has submitted plans for international flights to be reinstated to Cambodia. All pax would be quarantined on arrival (at their own cost). Transit passengers would not be allowed into the country. Pax would also need to provide a negative test prior to departure, and be tested on arrival >> 3 Sep: China will resume flights from Beijing to Cambodia from 3 Sep, with travellers subject to a 14-day quarantine on arrival and 2 COVID-19 tests >> 3 Sep: The charges for the COVID-19 tests for foreigners on arrival to Cambodia will be reduced to $100 USD each, with the remainder of their $2,000 USD deposit being paid back 3 days after the 2nd test has a negative result >> 26 Aug: The Cambodia-Thailand joint working group are discussing solutions to boost tourism. The Ministry of Tourism is still studying travel bubbles and is awaiting approval from other ministries >> 22 Aug: Japan and Cambodia have agreed to open borders for each other’s expatriates, so long as they observe a 14-day quarantine from early Sep >> 19 Aug: More passengers will be allowed to transit at Changi Airport, including Indonesia, Malaysia and Thailand, on Singapore Airlines Group’s flights, in addition to last week’s approval for Cambodia and Vietnam. Routes include from Bangkok, Jakarta, Medan, Surabaya, Ipoh, Kuching, Kuala Lumpur and Penang >> 13 Aug: Cambodia will now extend a flight ban to the Philippines after more returning Cambodians from the country tested positive >> 5 Aug: Cambodia has lowered the cash deposit to $2,000 USD for foreign travellers on arrival. Travellers must buy a local health insurance package which will cost $90 USD and be valid for 20 days >> INBOUND NEW 16 Oct: The IMF predict that Cambodia’s economy will contract by 2.8% in 2020, whilst the government still believes it will decrease by 1.9% >> NEW 15 Oct: Dara Sakor International Airport in Koh Kong is now scheduled to be opened mid-2021, as most elements are nearing completion. The airport was built for tourists and charter flights who are for the majority flying to Dara Sakor Resort. Dara Sakor Resort is an area 360kmsq which has a port for cruise ships, golf courses, national park, casino and hotels >> NEW 14 Oct: The runway expansion of Sihanoukville Airport has been completed, and is scheduled to be commissioned in Q4 2020 >> Pear Anderson Sign up for weekly updates 18 Oct 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY NEW 14 Oct: Cambodia’s international arrivals from Jan-Aug were down 72% YoY to 4.36 million. Aug saw a 95.5% decline, with just 23,028 foreigners arriving >> NEW 13 Oct: Public universities will now be allowed to resume operations from 12 Oct >> NEW 13 Oct: The Cambodian Cultural Village in Siem Reap will close for business on 7 Nov, as they can no longer cover the costs >> NEW 13 Oct: CAMDMC, an association with 17 DMCs in Cambodia, are preparing a draft tourism reopening plan to submit to the government which will try to convince them that Cambodia should be a first mover to reopen tourism in SE Asia >> NEW 12 Oct: Dara Sakor City Development Group has launched the sales project of Stardream Lake Tourism Town >> NEW 12 Oct: The Sofitel Angkor Phokeethra Golf & Spa Resort will reopen on 19 Oct, and will celebrate their 20th anniversary >> NEW 12 Oct: The government has approved the creation of the Credit Guarantee Corporation of Cambodia (CGCC), which will help businesses in struggling sectors obtain loans and credit services >> 9 Oct: The Hyatt Regency Phnom Penh will open in Q1 2021 >> 8 Oct: Prince Manor, Cambodia’s first major theme park 20km away from Phnom Penh, has been officially launched >> 8 Oct: The PM has expressed confidence about the economy, after the World Bank predicted just a -2% drop compared to other projections of -7 to -9% >> 7 Oct: Century Entertainment International will relocate its gaming floor from Sihanoukville’s Sunshine Bay Hotel to Dara Sakor in Koh Kong province >> 6 Oct: Tourism businesses on the southern islands of Cambodia are being impacted by the number of cancelled boat rides to Sihanoukville due to the bad weather >> 5 Oct: A rail link between Phnom Penh to Bavet, on the border with Vietnam, is being considered.
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