Travel industry takes the road to recovery

Hopes rise as borders reopen and flights resume

An employee assists passengers through the arrival area at Phuket International Airport in Thailand on Nov 1. (MLADEN ANTONOV / AFP)

Thai tour guide Suchira Kaewkerdket is feeling hopeful again after her country opened its doors wider to visitors on Nov 1, rolling out the welcome mat to arrivals from more than 60 countries and regions.

"It was quite a big change when the government announced the latest reopening," she said. "Compared with the previous limited opening, tourists now have more opportunities and choice to fly to Thailand. I feel happy that hope is returning."

Such sentiments are not only being voiced in Thailand, but by travel industry insiders in many nations in Southeast Asia and beyond, as governments begin easing COVID-19 travel curbs in an attempt to shore up pandemic-hit economies.

From Singapore and Malaysia, to Sri Lanka and Vietnam, borders are starting to reopen after months of pandemic-induced restrictions and lockdowns.

Experts said these moves offer relief for the travel, hospitality and retail sectors, but it may take many months, probably years, before the situation returns to normal for industries severely hit by COVID.

The pandemic remains a threat, with new virus variants and the prospect of even more dangerous strains emerging.

Governments are basically in experimental mode as they welcome back international travelers, but any major new COVID outbreak could prompt a reversal of the reopening, according to industry personnel.

Christopher Khoo, managing director at international tourism consultancy MasterConsult Services, said, "The travel industry has been severely hit by the pandemic-probably the most severely affected-and any restart will be seen as welcome relief."

However, the industry should be prepared for more surprises next year and beyond. "It may be a case of two steps forward and one step back," he said.

Karori Singh, an Emeritus Fellow at the University of Rajasthan in India, said reviving devastated economies is a daunting task for countries in the region.

"The easing of travel restrictions is a major step toward reviving the tourism industry," Singh said, noting that countries have begun relaxing visa rules and reviving visa-on-arrival measures.

"But the problem is exorbitant air fares … and fears of a new wave of infections are constraining the tourism revival," Singh said, adding that the World Health Organization has warned countries in Europe and other nations about a possible rise in new COVID cases.

Given these concerns, nations in South Asia are proceeding cautiously in relaxing travel restrictions despite the pressing need for a tourism revival, Singh said.

Last month, the Indian government decided to relax quarantine rules for international passengers arriving from certain countries.

From Oct 25, foreigners from designated countries arriving in India have been allowed to leave airports and self-monitor their health for 14 days after arrival.

Airport staff members chat at the new entry lanes at Suvarnabhumi International Airport in Bangkok on Oct 27. (LILLIAN SUWANRUMPHA / AFP)

Island arrivals

On July 1, Thailand launched a pilot opening program, dubbed the Phuket Sandbox, allowing quarantine-free travel for vaccinated tourists to the popular resort island.

This month, the country expanded its reopening, welcoming back vaccinated visitors from 63 "low-risk" countries and regions, including China.

These visitors are allowed to enter Thailand without quarantine requirements, but must stay at a designated hotel for the first night to wait for their on-arrival COVID-19 test results.

The Thailand Pass was launched to support the reopening, allowing foreign travelers to complete their travel and health information and upload related documents before arriving in the country.

Suchira, the Thai travel industry worker, who has been an independent tour guide since 1998, said it was a big shock when the country shut its borders to most foreign visitors in April last year after local transmissions of COVID-19 started to rise.

"I had no income," she said, adding that like many of her peers she had to rely on savings to survive.

A former journalist, Suchira started a YouTube channel, on which she discussed Thai tourism and culture. With nearly 30,000 subscribers, her earnings from the platform helped cover her daily expenses.

Since Thailand's broadened reopening on Nov 1, she has received many more inquiries from foreigners interested in visiting the country. She has also had to hire more people to help her respond to the inquiries and provide trip-planning services.

"I used to work by myself, but now I have seven people on my team. I have to read almost 200 emails a day, but the recovery is a very good sign," Suchira said.

The Tourism Authority of Thailand, or TAT, will expand its special exemption from quarantine, or TEST and GO, from Jan 1 to cover tourists from all over the world.

Siripakorn Cheawsamoot, the agency's deputy governor for marketing and communications, said on Nov 1 that with the reopening, TAT is targeting total tourism revenue of 1.58 trillion baht ($48 billion) next year, with 818 billion baht coming from 13 million international arrivals.

The Bangkok Post quoted TAT governor Yuthasak Supasorn as saying the tourism industry has already passed the lowest point, with 2,000 to 3,000 visitors a day now arriving in the country.

Bill Barnett, managing director of hospitality consultancy for C9 Hotelworks in Thailand, noting there were some 14,000 arrivals in Bangkok and 8,000 in Phuket in the first week of this month, said the numbers are a positive indication even though the reopening is still in the early stages.

Hotels' reservations for next month are quite strong, as they are seeing their booking pace pick up, Barnett said.

Airport staff members chat at the new entry lanes at Suvarnabhumi International Airport in Bangkok on Oct 27. (LILLIAN SUWANRUMPHA / AFP)

Travel lane

More countries across Asia are also planning to reopen.

Singapore has gradually been doing so through its Vaccinated Travel Lane system, which allows visitors to enter without quarantine.

In Malaysia, Prime Minister Ismail Sabri Yaakob said on Oct 22 that fully vaccinated foreign travelers would be allowed to visit the island of Langkawi from the middle of this month with no quarantine restrictions.

On Oct 14, Indonesia opened its doors to travelers from 19 countries visiting Bali and the Riau Islands. The archipelago also agreed with Malaysia on Nov 10 to launch a vaccinated travel lane between the two countries.

In Cambodia, where more than 87 percent of the population of nearly 17 million has been vaccinated against COVID-19, the government said on Oct 26 that the country would reopen in stages to fully vaccinated foreign tourists without quarantine. This plan will start with the coastal provinces of Sihanoukville and Koh Kong on Nov 30, and extended to Siem Reap, home to the Angkor Wat temple complex, in January.

Vietnam plans to reopen the resort island of Phu Quoc to vaccinated foreign visitors late this month. The country is also looking to restart international commercial flights with 15 countries from January, with a full resumption by July.

Sri Lanka, which has witnessed an easing of COVID-19 cases in recent weeks after facing a third wave since April caused by the Delta variant, is ready to reopen to foreign visitors in an attempt to strengthen its lucrative tourism industry.

The government will launch a special tourism promotion program in France, the United Kingdom, Germany, India and Russia, Sri Lankan Tourism Minister Prasanna Ranatunga said late last month.

Publicity campaigns will also be carried out in Kazakhstan, Ukraine and the Middle East to promote Sri Lanka as a country that has successfully administered COVID-19 vaccinations.

More than 90 percent of people age 20 and older in the island nation have been given at least one dose of a COVID-19 vaccine.

The Global Wellness Institute ranked Sri Lanka fourth this year on a list of the world's top wellness tourism destinations, with Bali topping the list. The institute also rated Sri Lanka the leading destination for spiritual healing.

According to official figures, after Bandaranaike International Airport in Colombo reopened to tourists in December, more than 40,000 people have visited Sri Lanka, with over 13,000 arriving in September.

In Bangladesh, tourist destinations, which have posted losses of about $2.33 billion due to the pandemic, have been allowed to reopen at half capacity since Aug 19.

Jesper Palmqvist, area director for Asia Pacific at data and consulting company STR, said many countries in Asia are working to boost domestic tourism. Just how effective these plans are will depend on the size of the domestic markets and each country's need for international tourism.

For example, in Thailand, the number of foreign tourists plummeted to 6.7 million last year from a peak of nearly 40 million in 2019, taking a toll on the tourism sector, which accounted for about one-fifth of the nation's economy before the pandemic.

Quick response

Brendan Sobie, an independent aviation analyst and consultant based in Singapore, said airlines are quickly responding to the resumption of international travel in Asia Pacific. Carriers are resuming services suspended since the pandemic and aggressively promoting routes that have continued to operate despite limited demand and extremely low passenger numbers.

"There are opportunities, particularly in markets where quarantine-free travel is again possible, but the pace of recovery will be slow and overcapacity will be a concern for some time, impacting profitability," Sobie said. He added that a full recovery could take a few years and that in the meantime there will be setbacks.

Sobie said that to survive, many airlines will need to recapitalize and restructure.

Take Australia, for example. From April 2020 to last month, scheduled international passenger traffic fell by almost 98 percent, according to a report written by Sobie this month. The pandemic has so far cost Australian airlines some A$13 billion ($9.5 billion) in international revenue and also about 21 million passengers.

"While much of the region is finally starting to recover, several countries have not yet reopened and it could be several more months before international travel resumes across all markets in Asia Pacific," Sobie said, adding that the crisis is far from over.

Palmqvist, from STR, does not expect international tourism to return to pre-pandemic levels at least until 2024.

"There are so many things dragging it down, from both demand and pricing power and all those travel regulations in place," he said.

Barnett, from C9 Hotelworks, said: "Thailand has a first-mover advantage. The country will be more competitive than others in the region, but there will still be challenges. The government has to make the procedures as convenient for travel as possible."

He added that better planning and more advance information is needed when rules or procedures are changed.

The biggest challenge for hotels is getting staff members back to work and providing services that meet the expectations of travelers during the pandemic, Barnett said.

Khoo, from MasterConsult Services, said the first few years of reopening will be a determining factor, as the extent of the change in consumer behavior remains unclear. "The post-COVID world will be challenging," he added.

Suchira, the Thai tour guide, said that as the travel industry's recovery will be slow, she remains cautious, but has rising hopes for improved business.

It all depends on the COVID situation, she said, adding that the industry may not return to pre-pandemic levels anytime soon, if at all.

Contact the writers at kelly@chinadailyapac.com