The rebound of tourism in South-east Asia

THE travel and tourism industry was among the hardest hit by the Covid-19 pandemic. Border closures, coupled with international travel restrictions and social-distancing measures, were devastating for the industry, and particularly so in South-east Asia.

Prior to the pandemic, the tourism sector contributed about 12 per cent of Asean's gross domestic product (GDP). It is also a source of income for millions of people, both directly and indirectly.

Now that more South-east Asian countries are opening their borders to vaccinated tourists, the recovery of the tourism sector is expected to gather momentum.

From Apr 1, Singapore allowed fully vaccinated travellers from all countries to enter the country without the need to quarantine.

The move followed those of Thailand and the Philippines, which opened their borders for fully vaccinated visitors months earlier. Malaysia and Indonesia, too, have removed entry restrictions and done away with quarantine requirements.

Even as there is acknowledgment that Covid-19 is now more endemic (it will have to be lived with), there are certain travel trends caused by the pandemic that will likely stick.

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Research conducted by Visa reveals that leisure travellers are now more inclined towards travelling to safer and sanitised facilities and destinations.

The study also found that travellers have become more opportunistic, and are choosing to make bookings much closer to travel dates than was observed prior to the pandemic.

Additionally, more travellers are choosing domestic travel. Insights from Google show that Indonesia saw a 40 per cent spike in domestic tourism between August and September 2021 when compared with the same period in 2020.

A recent survey by AirBnB reveals that more than half (57.6 per cent) of travellers across Asia-Pacific plan to spend more on domestic tourism. This sentiment was echoed by 66.7 per cent of Malaysians, and 65.3 per cent of Thai nationals.

Travellers are also seeking to travel to rural locations while avoiding the more popular locales that typically draw people in large numbers. Nearly 3 in 5 (59.2 per cent) of Thai travellers plan to visit rural locations that are not very popular among most tourists.

Hotels are becoming more sustainable and environment friendly. The move to remote work has also supported the growing "workation" trend in the region.

Meanwhile, other research points to a mounting desire to splurge on a "trip-of-a-lifetime" among travellers in 2022.

There is more inclination towards connecting and making memories with friends and loved ones, as the pandemic forced many to take stock of what was important to them. There are defining changes in demands among the region's travellers.

Technology and sustainability

The use of technology in the travel and tourism industry was already contributing to the sector's growth.

Technology underpins booking platforms, contactless payment interfaces and check-in and boarding processes for airlines. It has made travel and tourism services more affordable and accessible to travellers.

Emerging technologies, meanwhile, are on track to witness wider uptake.

Malaysia's Kuala Lumpur International Airport, for example, plans to introduce facial-recognition technology, allowing travellers to pass through the entire airport without having to show their boarding passes at any touch points - from check-in right up to the boarding gates.

Growing digital adoption in the region along with the increasing demand for safe and contactless travel, will make online booking for travel-related services a consumption pattern that will continue to grow with the growing internet user base in South-east Asia.

Technology is also helping reshape the narrative around sustainable travelling.

About half of travellers believe that "technology can enable environmentally sustainable travel options such as green or eco accommodation," while 67 per cent believe that technology can also support travellers by allowing them to learn about sustainable travel options.

Government support imperative

Regional governments have been forthcoming in supporting the struggling industry.

At the pandemic's peak, Vietnam's government introduced a campaign to promote domestic tourism. At the same time, Vietnamese airlines and travel agencies offered discounts of nearly 50 per cent or more to attract people to resorts and restaurants.

Collaboration between the public and private sector can also help support the tourism recovery.

In Indonesia, for example, RedDoorz has worked closely with the Ministry of Tourism and Creative Economy to support a vaccination drive with the use of mobile vaccine cars. This initiative has helped successfully vaccinate more than 700,000 people in the country.

Several other private companies have also sought to support public health and other efforts to accelerate the recovery of tourism in different markets.

The travel and tourism industry is vital for the region as it employs 16 million people and contributes an estimated US$393 billion to the GDP.

Cooperation between regional economies will prove crucial towards ensuring a full-scale recovery of the sector.

Given all the support the sector is getting, 2022 could well be the year when the travel and tourism sector truly rebounds, bringing back smiles to many in the region and beyond.

The writer is founder and CEO of RedDoorz.