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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 11 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 11th October 2020 INBOUND TRAVEL OUTBOUND TRAVEL COUNTRY LOCKDOWN RESTRICTIONS RESTRICTIONS CASES DEATHS Cambodia Partial Visa restrictions Discouraged 283 0 Indonesia Partial Visa restrictions Restricted 333,449 11,844 Laos None Visa restrictions Discouraged 23 0 Malaysia Partial Visa restrictions Restricted 15,657 157 Myanmar Partial Visa restrictions Discouraged 26,064 598 Philippines Partial Not permitted Not permitted 339,341 6,321 Singapore Partial Visa restrictions Restricted 57,876 27 Thailand None Visa restrictions Flight restriction 3,636 59 Vietnam None Visa restrictions Restricted 1,107 35 Data accurate as of 20:02 (UTC+8) on 11 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 CAMBODIA PM remains confident about Cambodia’s economy. On Page 4 • Prince Manor, Cambodia’s first major theme park, • Tourism businesses on southern islands has been officially launched impacted by ferry cancellations Jakarta eases into transitional period of PSBB from 12 INDONESIA Oct for 2 weeks. On Page 13 • Garuda Indonesia secures a $68 million USD loan • Indonesia in final stages of travel corridor talks from Eximbank with Singapore Lao Airlines supports the Lao Thiao Lao campaign with LAOS “true cooperation” to help its success. On Page 33 • Lao National Museum opens in its new location • Nakai-Nam Theun National Park looked at as a model for ecotourism Pear Anderson Sign up for weekly updates 11 Oct 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY Aviation industry in turmoil as Malaysia Airlines CEO MALAYSIA says airline may not survive, AirAsia X restructures. On Page 37 • New daily cases remain high – but the PM will • Redang and Perhentian Islands see visitor not lockdown the whole nation increases of 114.8% and 319.4% YoY for Aug Myanmar’s cases cross the 20,000 mark, 10,000 of MYANMAR which reported in just 9 days. On Page 65 • Small businesses and factories in Yangon will be • Yangon’s stay-at-home order extended from 8-21 allowed to resume operations Oct Cebu Pacific looking to raise $500 million USD; PHILIPPINES Philippine Airlines announces 2,700 layoffs. On Page 73 • Philippines closer to setting up Fast Lane with • Ilocos Norte to open up for tourists from Luzon China for urgent business from next week, even for those from GCQ areas Progressive work on Reciprocal Green Lanes and Air SINGAPORE Travel Bubbles – but outbound leisure travel in Dec remains unlikely. On Page 96 • Cruises to nowhere permitted to sail from 1 Nov • Changi Airport to set up testing lab as gov. believes testing key to unlocking air travel THAILAND First STV group to arrive on 20 Oct – but whole group must be COVID-free to continue scheme, gov. warns. On Page 116 • Chiang Mai has lost 100 billion THB in tourism • Phuket expects at least 15,000 domestic tourists/ revenue day during its vegetarian festival in Oct Domestic air traffic almost reaches pre 2nd wave levels, VIETNAM VNA 200 flights/ day, Vietjet 250/ day. On Page 148 • Ministry of Transport planning to open 9 more • 68% of Vietnamese plan to resume domestic international flights into Hanoi and HCMC travels by Q4 2020, according to a new survey Pear Anderson Sign up for weekly updates 11 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 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 11 Oct 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 >> INBOUND NEW 9 Oct: The Hyatt Regency Phnom Penh will open in Q1 2021 >> NEW 8 Oct: Prince Manor, Cambodia’s first major theme park 20km away from Phnom Penh, has been officially launched >> NEW 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% >> Pear Anderson Sign up for weekly updates 11 Oct 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY NEW 7 Oct: Century Entertainment International will relocate its gaming floor from Sihanoukville’s Sunshine Bay Hotel to Dara Sakor in Koh Kong province >> NEW 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 >> NEW 5 Oct: A rail link between Phnom Penh to Bavet, on the border with Vietnam, is being considered. Vietnam would then build a rail link from Bavet to HCMC >> NEW 5 Oct: Prince Mall in Sihanoukville has opened, the first mixed-use shopping mall in the province >> NEW 4 Oct: A training course to 155 travel agents about the history and risks of the Angkor Archaeological Park has been carried out >> 2 Oct: 4 community-based eco-tourism joint development packages have been set up to boost the number pf domestic visitors, at Roleak Kang Cheurng, Phat Sanday, Teuk Chop Khnarpor and Boeng Sne. The government will work to improve services and infrastructure for these 4 areas, as well as identity more >> 2 Oct: Angkor Archaeological Park has had just 396,241 foreign visitors from Jan- Sep, a drop of 76.17% >> 1 Oct: A 6th round of stimulus measures has been announced, focusing on the garment, textile, tourism and aviation sectors.
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