THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN WEEKLY SUMMARY TOURISM 08 NOV 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 8th November 2020 INBOUND TRAVEL OUTBOUND TRAVEL COUNTRY LOCKDOWN RESTRICTIONS RESTRICTIONS CASES DEATHS Cambodia None Visa restrictions Discouraged 295 0 Indonesia Partial Visa restrictions Restricted 437,716 14,614 Laos None Visa restrictions Discouraged 24 0 Malaysia Partial Visa restrictions Restricted 40,209 286 Myanmar Partial Visa restrictions Discouraged 60,348 1,396 Philippines Partial Visa restrictions Permitted 396,395 7,539 Singapore Partial Visa restrictions Restricted 58,056 28 Thailand None Visa restrictions Flight restriction 3,837 60 Vietnam None Visa restrictions Restricted 1,213 35 Data accurate as of 20:42 (UTC+8) on 08 Nov 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 51,000 tourism jobs have been lost as 2,838 tourism CAMBODIA businesses close permanently or temporarily. On Page 4 • 644,698 tourists travelled in Cambodia over the • Angkor Archaeological Park’s international 4-day weekend visitors from Jan-Oct drop 78% YoY Angkasa Pura I, the national airport operator, serves INDONESIA 2.16 million pax in Oct, a 16.9% increase MoM. On Page 12 • Indonesia officially enters recession in Q3, with • First group of umrah pilgrims arrive in Saudi Bali and Nusa Tenggara hardest hit Arabia Laos government discussing travel policies with LAOS Vietnam and Japan, as well as other ASEAN countries. On Page 34 • Bars and karaoke venues allowed to reopen • Tourist visas remain suspended until 31 Dec Pear Anderson Sign up for weekly updates 08 Nov 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY MATTA tells displaced tourism workers to find new MALAYSIA industry after “inadequate” Budget 2021 proposal. On Page 38 • CMCO lockdown extended for all but 4 Malaysian • 10% of hotels have laid off workers, whilst 44% states until 6 Dec have employees on unpaid leave MYANMAR General election today, Suu Kyi tipped to win. On Page 69 • Myanmar Airways International aims to grow its • Government invites proposals for int’l hotel at international network Letkhonkkon village in Yangon Tourism workers to get cash assistance through the PHILIPPINES DOT-DOLE 3 billion PHP budget. On Page 76 • Price cap on RT-PCR and antigen tests will be • China bans inbound Filipino travellers imposed, DOT welcomes move 1,700 passengers set sail on the first “cruise to SINGAPORE nowhere” on 6 Nov with Genting Cruise Lines. On Page 103 • HK-Singapore Air Travel Bubble could take place • Flight searches from mainland China to by end-Nov according to officials Singapore surge after no quarantine regulation THAILAND More support measures for tourism, including soft loans for tourism SMEs and exemption of jet fuel tax. On Page 127 • Thai Airways announce semi-commercial routes • 2 international airlines, Emirates and Qatar to 7 destinations Airways, both restarted flights to Phuket Gov. set to make access to loans easier for tourism VIETNAM SMEs, and reduce jet fuel tax in 2021. On Page 159 • 4 round-trip flights per week between Vietnam • Vietnam has gone 2 months with no community and Taiwan are set to be launched transmission Pear Anderson Sign up for weekly updates 08 Nov 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 All schools reopened nationwide from 2 Nov, 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 NEW 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 >> NEW 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 Pear Anderson Sign up for weekly updates 08 Nov 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY 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 >> 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: 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 >> 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 7 Nov: 51,000 tourism jobs have been lost in Cambodia, as 2,838 tourism businesses in Cambodia have either closed or temporarily closed down, accounting for around 29.6% of all tourism businesses. 62% of businesses affected are in Siem Reap, where 14,702 workers have lost their jobs >> NEW 7 Nov: Cambodia generated $25.21 million USD revenue from ecotourism in Jan- Sep, with 529,160 national tourists and 7,385 international ones >> NEW 7 Nov: 889 people have had to be tested after having direct or indirect contact with the Hungarian minister who tested positive for COVID-19 >> NEW 5 Nov: The Cambodian PM and 4 cabinet ministers were in a 14-day quarantine after they met with the Hungarian foreign minister who later tested positive for COVID-19 after he arrived into Thailand >> Pear Anderson Sign up for weekly updates 08 Nov 2020 Update https://www.pearanderson.com/coronavirus/ THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY NEW 5 Nov: More than 100 different nationalities have visited Cambodia in 2020 >> NEW 5 Nov: Two DJs teamed together to create a video of them live mixing whilst on a tuk tuk driving around Phnom Penh, in a move they said designed to promote the city >> NEW 4 Nov: A Kampot hotel is planning to hold a beer festival to attract more domestic tourists on 28 Nov >> NEW 3 Nov: During the 4-day holiday, more than 644,698 tourists travelled in the country, with the majority visiting Siem Reap province. There was a decrease in the number of visitors to the north-western region due to the floods. 160,000 Cambodians visited Siem Reap, 93,000 of which visited the Angkor area >> NEW 2 Nov: Cambodia’s air traffic has remained active from Jan-Sep, with 317,502 Cambodians departing by air, a decrease of 79.3% >> NEW 2 Nov: Angkor Archaeological Park received just 398,485 international visitors from Jan-Oct, a drop of 78% YoY. It earned just $18.55 million USD in revenue. October’s foreign visitor numbers were down 98.4%. The Ministry of Tourism estimates that the site receives just 70 foreign tourist visits a day currently, compared to its previous 9,000 >> 29 Oct: A new Siem Reap city, Grand Siem Reap, has been unveiled by the Ministry of Tourism.