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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 27 SEP 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 27th September 2020 INBOUND TRAVEL OUTBOUND TRAVEL COUNTRY LOCKDOWN RESTRICTIONS RESTRICTIONS CASES DEATHS Cambodia Partial Visa restrictions Discouraged 276 0 Indonesia Partial Visa restrictions Restricted 275,213 10,386 Laos None Visa restrictions Discouraged 23 0 Malaysia Partial Visa restrictions Restricted 10,919 134 Myanmar Partial Visa restrictions Discouraged 9,991 198 Philippines Partial Not permitted Not permitted 304,226 5,344 Singapore Partial Visa restrictions Restricted 57,700 27 Thailand None Visa restrictions Flight restriction 3,523 59 Vietnam Partial Visa restrictions Restricted 1,074 35 Data accurate as of 20:15 (UTC+8) on 27 Sep 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 CAMBODIA Air traffic has dropped by 75% from Jan-Aug. On Page 4 • The Sea Festival postponed to a later date • Cambodia Angkor Air will launch a new route from Phnom Penh to Zhengzhou to China Cases continue to rise with record highs recorded; Bali INDONESIA plans to invite 4,400 people to experience the island. On Page 14 • Jakarta’s PSBB restrictions extended until 11 Oct • Lion Air calls for 70% limit on pax capacity to be lifted Laos has seen its rating by Fitch drop from B- to CCC, LAOS indicating that it faces a substantial credit risk. On Page 35 • The Boat Racing Festival in Vientiane will take • Luang Prabang’s hotels have lowered rates to place this year attract domestic tourists Pear Anderson Sign up for weekly updates 27 Sep 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY Borders may reopen to ASEAN leisure tourists in Q1 MALAYSIA 2021. On Page 39 • Johor calls for Singapore-Malaysia border to • Coalition formed by the current PM’s government open for daily commuting to avoid more losses wins the Sabah state elections on 26 Sep Suspension of international flights extended until 31 MYANMAR Oct. On Page 65 • More than 1,000 new cases reported on 24 Sep • More of the country under stay-home orders Philippines crosses the 300,000 case mark on 26 Sep, PHILIPPINES but new cases seem to be slowing down. On Page 74 • Baguio-Ilocos Travel Corridor delayed until 1 Oct • Boracay will open to travellers from GCQ areas, including Metro Manila, from 1 Oct Business travel pass for senior executives who need to SINGAPORE travel frequently is being piloted. On Page 96 • “Residence Track” to launch between Singapore • STB says it could take 3-5 years for international and Japan from 30 Sep arrivals to return to previous levels THAILAND Special Tourist Visa set for approval on 28 Sep; Tourism Minister says 300 tourists ready to arrive in 1st cohort. On Page 115 • 66.8% of tourism businesses in Phuket are closed • 2 new long weekends lined up in Nov and Dec temporarily for Thais First commercial international flight into Vietnam VIETNAM arrived into Hanoi from Seoul on 25 Sep. On Page 146 • Vietnam Airlines increased its domestic • Danang lifts all restrictions from 25 Sep passengers to 40,000, +12% YoY Pear Anderson Sign up for weekly updates 27 Sep 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 Future flight search for travel to travel 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 >> 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 Pear Anderson Sign up for weekly updates 27 Sep 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY 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 >> 13 Aug: Cambodian students are facing issues when trying to return to Japan for study – although Cambodians are permitted to re-enter Japan, the only flights which will allow them to get there are via South Korea, which is considered high- risk by the Japanese and therefore they would not be allowed to enter >> 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 >> 4 Aug: Certified business travellers will now be able to buy COVID-19 insurance policies from 10 Cambodian companies, and reservations of 2-night hotel accommodation, meals, test and transportation fee must be paid in advance. The business person’s sponsor would then be responsible to pay in full for the rest of the expenses. The traveller will need to deposit $2,000 USD on arrival >> 4 Aug: The Ministry of Tourism is looking at a travel bubble plan which would be a one-way, closed loop chartered plane journey in the country. It would be targeted at rich and retired visitors, with the ASEAN and China, Japan and South Korea being primary targets >> Pear Anderson Sign up for weekly updates 27 Sep 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY 31 Jul: The Director of Planning at Cambodia’s Ministry of Tourism said that the $3,000 USD deposit for tourists on arrival may be scrapped, and that they had recently held talks with the Ministry of Finance to do this, although there has been no official announcement yet >> 30 Jul: South Korean business people returning from a trip to Cambodia of less than 14 days will be exempted from mandatory quarantine in Korea >> INBOUND NEW 26 Sep: The Sea Festival, scheduled to take place in Preah Sihanouk at year-end, has been postponed to a date not yet confirmed >> NEW 23 Sep: A Green Belt project related to tourism, social and economic sectors is being planned by a Japanese company >> NEW 23 Sep: The Asian Development Bank has approved a $29 million USD loan for the country to strengthen Cambodia’s fiscal planning >> NEW 21 Sep: The PM told US companies and investors that the country is still a good bet for investment, but that it had suffered huge challenges for the tourism sector, amongst others >> 19 Sep: 1.1 million domestic and foreign tourists travelled in Cambodia over the 3- day Pchum Ben festival from 16-18 Sep >> 16 Sep: My International Movers has selected Cambodia as the world’s most hospitable countries for welcoming foreign tourists >> 16 Sep: Cambodia’s tourism port construction completion in Kampot province will be delayed until late 2021, with just 30% of the project currently completed.
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