The tourism industry in South East Asia has long been considered to be one of the most vibrant and bustling in the world. However, the pandemic’s arrival in early 2020 put a halt to the industry’s momentum, and countries across the region saw a significant drop in the number of visitors. But as the first anniversary of the pandemic approaches, there is hope as there have been several signs of recovery in the South East Asian tourism industry. This article takes a closer look at the tourism recovery in South East Asia, examining what has been done to recover, and what needs to be done in the future for the industry to continue its growth.
The term “endemic” was widely used throughout Southeast Asia about a year ago as governments prepared their citizens to “live with Covid”. After two years of tight travel restrictions, countries within the region had achieved their vaccination targets, and their economies were under pressure. The prerequisite to restore international mobility was to adapt to the reality of the virus and learn to live alongside it. The borders fully reopened in Singapore, Malaysia, Indonesia, and the Philippines on April 1, 2022, as quarantine mandates were lifted. Cambodia and Vietnam had just reopened, whilst Thailand still required proof of a negative Covid test and a one-night stay in an assigned hotel until a clear result was confirmed. Laos would reopen early in May.
This move marked an important milestone for a region that had struggled to resurrect travel activity. Several approaches had been tried, such as risk-averse travel bubbles, vaccinated travel lanes, and sandboxes, but the most important goal was to restore visitor arrivals to pre-pandemic levels. Whilst South East Asia welcomed air travellers again, North East Asia remained shut. Japan, Hong Kong, and Taiwan would not lift their travel restrictions until October, and China would wait until January 8, 2023.
One year after travel was permitted once more, attention was on targets restoring visitor numbers to pre-pandemic 2019 levels. The first quarter of 2023 was promising for the travel and tourism industry, with air passenger numbers and visitor arrivals growing notably. The buzz was back, however, tourist numbers remained well below the record 2019 levels. According to OAG, airline seat capacity in South East Asia in March was 20% lower than in the same month in 2019. Domestic air capacity was recovering quickly, down just 13% from March 2019, while international air capacity remained 31% lower. Outbound travel activity from China, which started its significantly expanded summer schedules for airlines at the weekend, will also enhance South East Asia’s airport traffic in the coming months.
Despite ongoing restrictions and existing fears of new virus variants and the need for quarantine measures, competition among destinations to attract tourists is fiercely fought. In 2019, China was the top visitor market for the 10 countries of South East Asia, contributing 22.5% of all visitors. Singapore, Malaysia, Thailand, and Indonesia featured in the top six visitor markets. All four countries are now watching each other’s promotions and marketing hard to entice each other’s tourists.
However, smoke clouds from farmland and plantation burning for agricultural renewal brought on by the syndrome of dry season at this time of the year is now risking the industry. Parts of Thailand, Cambodia, Laos, Myanmar, and Vietnam were reported as having air quality that was deemed unhealthy, causing concern for the tourism industry, particularly as it was only just beginning to recover. Authorities in Chiang Mai, a popular destination in Thailand, handed out face masks to protect residents from breathing in airborne particulates. Tourist-friendly events were also potentially affected, sparking booking cancellations for China’s five-day May Golden Week, which South East Asian nations hope will kick-start the return of higher numbers of Chinese tourists.
Looking ahead, South East Asian nations plan to invest heavily in expanding rail infrastructure over the next decade. Still, two projects developed before the pandemic bring exciting travel possibilities: the China-Laos railway, connecting the Chinese city of Kunming to the Lao capital, Vientiane, is scheduled to commence cross-border trips later this month, whilst South East Asia’s first high-speed railway, slated to launch in July, will run between Indonesia’s capital, Jakarta, and its third-largest city, Bandung. Trains constructed in Qingdao, China, will travel at 350kpm, withstand earthquakes and feature a livery inspired by Indonesian Komodo dragons, creating much tourism interest and clarification about plans to extend the high-speed railway from Jakarta to Surabaya. It will be a groundbreaking moment in the history of rail travel in South East Asia.
