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 WEEKLY SUMMARY TOURISM 06 DEC 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 6th December 2020 INBOUND TRAVEL OUTBOUND TRAVEL COUNTRY LOCKDOWN RESTRICTIONS RESTRICTIONS CASES DEATHS Cambodia Partial Visa restrictions Discouraged 346 0 Indonesia Partial Visa restrictions Permitted 575,796 17,740 Laos None Visa restrictions Discouraged 39 0 Malaysia Partial Visa restrictions Restricted 72,694 382 Myanmar Partial Visa restrictions Discouraged 98,047 2,081 Philippines Partial Visa restrictions Permitted 439,834 8,554 Singapore Partial Visa restrictions Restricted 58,260 29 Thailand None Visa restrictions Flight restriction 4,086 60 Vietnam None Visa restrictions Flight restriction 1,366 35 Data accurate as of 20:51 (UTC+8) on 06 Dec 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 VACCINE SUMMARY Week ending Sunday 6th December 2020 TYPE OF VACCINE DOSES % OF POP ESTIMATED COUNTRY Secured or In Talks SECURED COVERED ROLL-OUT SOURCES Cambodia China, Sputnik V - - - 1, 2 AstraZeneca, Sinopharm, Indonesia Sinovac, Merah Putih; Pfizer, ~ 360 mil ~ 67% End 2020 1, 2 Sputnik V Laos China, Sputnik V - - - 1, 2 Malaysia Pfizer, China 12.8 mil 20% Q1 2021 1, 2 Myanmar China - - - 1 AstraZeneca; China, Sputnik Philippines 2.6 mil 0.9% Q2 2021 1, 2 V, Pfizer Not released, locally Not Not Singapore - 1 developed Available Available AstraZeneca, locally Thailand 26 mil 19% Mid-2021 1 developed Sputnik V, locally Vietnam 50-150 mil 26-78% Unknown 1 developed; China Data accurate as of 20:51 (UTC+8) on 06 Dec 2020. Sources: Various Pear Anderson Sign up for weekly updates 06 Dec 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY Cambodia sees new spike in locally transmitted cases; CAMBODIA PM calls it a “most critical moment”. On Page 4 • 1.26 million international visitors from Jan-Oct in • ASEAN Tourism Forum (ATF) postponed to 2020, down 76% YoY January 2022 Indonesia sees record 8k+ cases in a single day; year- INDONESIA end holidays shortened by 3 days to reduce travel. On Page 13 • International arrivals drop 88.25% YoY to • Government is in early talks with Japan to 158,190 in Oct establish a travel corridor Laos and Vietnam resumed international commercial LAOS flights on 1 Dec. On Page 38 • Charter flights from COVID-19 destinations • Vang Vieng-Vientiane highway opening delayed suspended to end of Dec CMCO lifted for majority of the country, raising MALAYSIA domestic tourism hopes for the year-end holidays. On Page 43 • AirAsia launches 8 new domestic routes • Malaysia cases crosses 70,000 mark Tourism revenue has dropped by 80%, around $2.3 MYANMAR million USD. On Page 74 • Gov. considering more lenient stay-at-home rules • Cases exceed 90,000 on 44 Yangon townships Domestic air volume drops to just 6.3 million from Jan- PHILIPPINES Sep, -68% YoY. On Page 82 • MICE now permitted in GCQ areas at 30% • Lapu-Lapu wants to establish travel corridor with capacity South Korea Singapore-Hong Kong Air Travel Bubble postponed until SINGAPORE 2021, but gov. is open to other partners. On Page 109 • SingapoRediscovers vouchers sees 11,900 • Oct intl arrivals just 13,400, down -99.1% YoY, redemptions on first day but up 41.4% vs Sep 2020 Tourism Ministry says earliest start date for general THAILAND tourism is Mar/ Apr 2021. On Page 137 • Local outbreak of cases in Northern region cause • Government approves changes to the domestic fear, 1,700 hotel room nights cancelled tourism stimulus, with more benefits Vietnam Airlines flight attendant triggers local COVID- VIETNAM 19 transmittance; int’l commercial flights cancelled. On Page 172 • Vietnam and S. Korea waive quarantine for short- • Nov international visitors just 17,700, down 99% term essential business travels YoY, but up 19.6% vs Oct Pear Anderson Sign up for weekly updates 06 Dec 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 Schools, entertainment venues, museums, cinemas are closed. Gatherings limited STATUS to 20 pax. Flight searches and booking volume for Future flight search for travel to travel to Cambodia Cambodia Source: Sojern COVID-19 dashboard Source: Sojern COVID-19 dashboard TRAVEL BUBBLES & INTERNATIONAL BORDERS NEW 5 Dec: The foreign sponsorship of international arrivals will be postponed temporarily >> NEW 30 Nov: All foreign and Cambodian arrivals must quarantine in designated government quarantine centres and will no longer be allowed to self-quarantine at home >> 13 Nov: Cambodia has been added to the UK government’s travel corridor list >> 13 Nov: From 18 Nov, foreign arrivals from China, Japan, South Korea, Thailand, Vietnam, the European Union and the US who have a sponsor must have a Pear Anderson Sign up for weekly updates 06 Dec 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY negative certificate within 72 hours of their departure, and have a test upon arrival. They must isolate in a hotel until the results are released, then will be permitted to leave after giving a planned schedule. Diplomats must also provide a certificate stating they are free of COVID-19 within 72 hours of their departure, have a test on arrival, and wait at least 24 hours at a hotel or quarantine for their results. Those foreigners who arrive without sponsorship must now stay in a government-designated hotel for a 2-week mandatory quarantine, and are not permitted to quarantine at home >> 7 Nov: Cambodia is set to reform its immigration and visa policies next year, making them more bureaucratic and expensive. They may introduce a longer stay visa >> 5 Nov: Travel bubble talks with SE Asian nations are expected to be submitted for approval in late Nov, aiming to implement them in Q1 2021 >> 30 Oct: The Ministry of Tourism has drafted a special tourism policy which is being discussed with the private sector – it aims to bring tourists in from low-risk countries to certain tourism zones in the country. Their special tourist categories include those who will do business, invest, have accommodation in Cambodia and retirees. The special tourists should be of high quality and good resources >> 29 Oct: The Pacific Asia Travel Association welcomes the idea of travel bubbles with China, but also urges the government to look at Vietnam and Thailand as partners too. The Cambodia Hotels Association and the Cambodia Association of Travel Agents are also both enthusiastic at the prospect of a travel bubble with China >> 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 >> 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 >> VACCINE 13 Oct: China has promised that Cambodia will be one of the first countries to get a COVID-19 vaccine. The Cambodian PM has also requested Russia to provide a vaccine to Cambodia. Cambodia is also a member of COVAX >> Pear Anderson Sign up for weekly updates 06 Dec 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY INBOUND NEW 6 Dec: The PM has confirmed that Cambodia will not declare a state of emergency as it will caused the economy to be “paralysed” >> NEW 5 Dec: 29 locally transmitted cases have now been detected in Cambodia, from the “November 28 community event” >> NEW 5 Dec: Cambodia has had 1.26 million international visitors from Jan-Oct in 2020, down 76% YoY. China, Thailand and Vietnam were the biggest inbound markets. Oct saw just 20,210 visitors, down 95.8% YoY. The Ministry of Tourism hopes that numbers will start to “rebound gradually” in Q1 2021, and that China would undoubtedly be the biggest source >> NEW 4 Dec: Agro-tourism tours are starting to be offered in Cambodia >> NEW 4 Dec: The restoration of Takum Lake in Battambang province will be used both to prevent land grabbing, provide water for residents and attract tourists >> NEW 4 Dec: 2021 will have 21 public holidays, with several long weekends >> NEW 3 Dec: The Ministry of Tourism has prohibited mass gatherings at local resorts, and reminded tourism businesses to strictly follow health protocols >> NEW 2 Dec: Angkor Archaeological Park has seen a drop of 80% YoY in its international visitors from Jan-Nov, with just 399,720.