Asia Pacific Travel & Tourism Report - July 2021
Asia Pacific Travel & Tourism Report - July 2021
15 top talking points from Bhutan, Japan, Maldives, Niue, Philippines, Saipan, South Korea, Thailand, Vietnam and more.
Hello. Welcome to the 5th Asia Pacific Travel & Tourism Report… which is co-produced with Michelle Dy and Dr Jaeyeon Choe.
Featured destinations include Bhutan, Japan, Maldives, Niue, Philippines, Saipan, South Korea, Thailand and Vietnam.
Hot topics range from Gastro-Diplomacy to Vaccine Mixing to Romantic Camping.
If you like the report, please share it with a colleague by using the button below.
Thanks for being on board,
Gary
15 Top Travel Talking Points in July 2021
1) Delta Variant Picks Up Speed
Transmission of the Delta variant accelerated across Asia Pacific in July.
In South East Asia, most countries reported record daily infections. On 22 July, the 10 ASEAN nations surpassed 1 million active cases. On 1 July, the total was 457,917. On 24 July: 1.09 million. Indonesia counted a record 56,757 cases on 15 July, Malaysia a record 15,902 cases on 24 July. Infections are doubling every 8 days in Vietnam.
New cases doubled in South Korea between 1 and 22 July. China shut its southwestern city of Ruili for mass testing after a border outbreak in Myanmar. Cases were reported in several provinces, including Anhui, Liaoning, Sichuan and Jiangsu.
Meanwhile, with 3 Australian states in lockdown, New Zealand suspended the Trans-Tasman Bubble for 8 weeks, and Hong Kong and Singapore kicked their bilateral bubble into ever longer grass.
2) Olympic Fast-Track for Japan Travel?
Naomi Osaka lighting the Olympic flame was a touching moment for Japan - and for the world.
A soulful riposte to every “The ‘Super-spreader’ Games Should Not Happen” article and broadcast.
In recent weeks, we’ve all read that “Japan Over-Invested” and “Tokyo Miscalculated Olympic Tourism.” Those pieces are standard, four-yearly pre-Olympics fare.
I was at Beijing 2008, and similar stories surmised the Chinese capital could never recoup its vast investments from inbound tourism. Infrastructure outlasts news copy, though - and the global media overlooked a vital factor: China’s immense domestic market. The Beijing Games were aimed squarely at a Chinese audience, with some tech-spectacular window dressing for the watching world.
So, Tokyo’s Olympic settings can expect a post-Games boost from Japanese visitors.
But what if Japan proves to itself that it can safely welcome thousands of visitors from many countries at once? That its new airport, hotel and transport protocols stand up to stress-testing? Aligned with a phase 1 launch of vaccine passports, what if a successful Olympics inspires a gradual resumption of inbound/outbound travel?
What if the Olympics actually give Japan a head start?
3) Space for a New Middle East Air Hub?
In a bid to diversify its economy away from oil, Saudi Arabia has grand travel plans. It is investing heavily to transform into a tourist destination, and develop its airport as the next mega air hub.
Saudi Arabia opened up to leisure travellers almost 2 years ago, but recent developments indicate expansive aspirations for its fledgling tourism industry. There are plans to establish a new hub-and-spoke airline, construct a new airport, build attractions bigger than Walt Disney World, and develop as a cruise destination.
It has even convinced the UNWTO and the International Air Transport Association (IATA) to open offices in the country - with the former opening its first regional office for the Middle East in Riyadh.
However, with 4 mega air hubs already within a 4-hour flying time - Istanbul (IST), Dubai (DXB), Abu Dhabi (AUH) and Doha (DOH) - is there room for a 5th?
One to watch!
4) South Korea-Saipan Travel Bubble
South Korea signed its 1st travel bubble with Saipan on 30 June. Vaccinated tourists with a negative PCR result can travel, with additional tests on arrival and after 5 days. A ‘fam group’ arrived on 19 July, and the first passenger flight landed on 24 July.
Saipan’s government will pay for all PCR tests - and is sponsoring influencers and travel agents. Tours must be booked with a government designated travel agency. South Korea requires a 14-day quarantine for individuals entering the country, but vaccinated Koreans are exempt upon their return.
Only 183 COVID-19 cases and two deaths have been reported in Saipan, and 63% of the population is fully vaccinated.
Few summer destinations are open to Koreans within a 4-5 hour flight time. As the average annual leave in South Korea has shortened to 3.7 days during the pandemic, Saipan is a reasonable option for a summer getaway.
But, as the vaccine rollout remains slow in South Korea, reservations have been low.
5) A Taste for Gastro-Diplomacy
This month, the hashtag #handsoffmyadobo went viral in the Philippines. It signalled opposition to a Department of Trade & Industry plan to develop standard cooking techniques for well-known national dishes, such as adobo and sinigang.
The Department clarified that the standards are meant for international promotions, and will not be made mandatory locally.
Negative reactions aside, developing “basic traditional recipes” for a country’s well-loved dishes is a popular gastro-diplomacy strategy in South East Asia.
Thailand pioneered this movement in 2002 through the “Global Thai” campaign, which has been a resounding success. From 2002 to 2015, foreign tourist arrivals increased almost 200%(!) with food cited by over one-third of visitors as an influential factor for their destination choice.
For foodie readers, ‘authentic’ Filipino adobo might be on your plate real soon.
6) When Will ASEAN Reopen?
It is tough to imagine reopening ASEAN borders while the Delta variant is spreading across the region. But economic reality is biting. Despite variable vaccination rates, the 10 governments will need to prepare a framework to protect livelihoods.
Here’s what an initial framework might include:
The 10 ASEAN members work together on mutual recognition of tests, vaccines and digital health passports.
Develop safe, scaleable intra-regional ‘green zone’ travel (city-to-city).
Collectively plan to vaccinate residents and workers to reopen test destinations, such as Langkawi, Malaysia, and Phu Quoc, Vietnam.
Based on research data in each country, explore niche markets and tourism products (e.g. nature activities, self-drive and wellness programmes).
In the short-term, identify niche segments from markets that permit outbound travel.
Currently, there is little regional coordination and governments are acting unilaterally. The near future is uncertain. But, if ASEAN doesn’t create a viable framework, the risk increases for an even slower economic and social recovery.
7) Offsetting Emissions with Airline Miles
Eco-aware travellers in Asia Pacific read on! From June 2021, passengers of Singapore Airlines Group and Air Tahiti Nui can participate in voluntary carbon offsetting programmes through dedicated microsites.
For example, on the SIA portal, a passenger flying from Singapore to Sydney (round trip) can pay roughly SGD12 to offset their carbon footprint if they’re flying economy class, and SGD36 for business class. They will also be able to use their KrisFlyer miles for offsets by the 4th quarter of 2021.
However, this is nothing new.
In 2007 (14 years ago!), Virgin Australia launched the world’s first government certified airline carbon offset scheme. Qantas and Jetstar followed suit. Other airlines offering carbon offset programmes include Cathay Pacific, Japan Airlines and EVA Air.
With most airlines in the region still grounded due to the pandemic, will more take the time to develop similar programmes?
Click to read our 4 previous monthly reports:
8) Domestic Travel Trends in South Korea
Domestic tourism has thrived in South Korea during the partial (but never full) lockdowns. This has kept businesses afloat, and stimulated new niche segments.
Emerging trends include camping, car camping, rural tourism, gastronomy tourism and regenerative tourism, such as altruistic beach clean-ups.
Couples have embraced ‘romantic’ camping, boosting sales of camping equipment and decorative items. Koreans are also enjoying ‘healing’ travel, focusing on wellness, and discovering ‘hidden’ spots for social distancing and reflection time.
The ‘one month stay’ travel plan is a popular means to work from a different location, like a tranquil beach town, island or a new city, for an extended period.
And long trips are interspersed with short breaks to nearby destinations to explore hotspot cafés and restaurants popularised by influencers.
And, despite record high COVID-19 infections, most flights to southern Jeju Island are fully booked through the summer holiday season.
9) Book Now, Fly Later, Pay in Future
Has this ever happened to you?
You wanted to upgrade your airline seat to premium economy, but balked at the cost. Or, perhaps due to the pandemic, you were dissuaded from buying airline tickets due to the fear of sudden border closures and flash travel restrictions.
Would flexible payment options, such as “fly now, pay later” or “pay when you fly” change your mind?
Malaysia Airlines now enables payment for a ticket in 6 or 12 monthly instalments, with 0% interest, depending on the transaction total.
Elsewhere, “pay when you fly” schemes have yet to catch on but Lufthansa Group might offer inspiration. Passengers can pay as they fly if they are business travellers from a corporate account.
However, it looks like Amadeus wants more airlines to offer this option. No official announcement yet, but we may see a “Pay When You Fly” product offering real soon.
10) Vaccine Mixology
As mentioned in last Sunday’s Asia Travel Re:Set, July saw more governments pursue vaccine mixing.
Combinations of different vaccine shots are an outcome of 3 things:
Infrequent supplies and, in some countries, a lack of foresight in vaccine procurement.
Growing concerns about the efficacy of certain vaccines.
Fears that a mutation of the Delta variant may overpower current vaccines.
Hence, Vietnam talked up mixing AstraZeneca (1st dose) and Pfizer (2nd jab), and Thailand said it may combine a first Sinovac jab with a 2nd AstraZeneca jab.
Meanwhile, Bhutan’s National Immunisation Technical Advisory Group recommended that a 1st dose of Covishield (AstraZeneca) be followed by a “booster” 2nd shot of an mRNA vaccine (Pfizer or Moderna) “to produce a stronger immune response.”
Adding more intrigue, Gao Fu, Head China’s Centre for Disease Control & Prevention, told the media:
“I have now had three [vaccine] shots that used different technology.”
11) Problems Mount for Phuket Sandbox
Thailand’s Phuket Sandbox opened on 1 July. In the first 23 days, 10,209 vaccinated arrivals came mostly from North America, Middle East, Israel and Europe. They comprised tourists, media, bloggers, binational families and retiree visa holders. Many were business people and Thais stuck abroad.
Modifications to the Sandbox scheme have been “approved in principle.”
Concerns remain about health safety, as Thailand battles a COVID surge and its vaccine programme is under-resourced. Prime Minister Prayuth Chan-o-cha attended the Phuket launch, then had to self-isolate. So far, 21 Sandbox tourists have tested positive. Dissatisfaction is also rising among workers in sectors that remain closed.
On 15 July, Samui Plus reopened Koh Samui, with day trips to nearby islands. The impact has been minimal.
The lessons so far are that travel demand is slow, and internal problems are mounting.
12) Reopening Maldives: 1 Year On
“In the Maldives, tourism accounts for the majority of foreign exchange earnings,” Maldives Ministry of Tourism.
Avoiding the protracted melodrama of Thailand’s Sandbox, Maldives reopened to international travellers on 15 July 2020. The islands had been closed for 110 days due to COVID-19.
Recently celebrating the 1st year reopening anniversary, Maldives received 715,600 visitors across the 12 months. From January-June 2021, 510,549 arrivals were recorded.
Archipelago geography assisted the reopening. Maldives’ “one island, one resort” enabled visitors to be safely distanced. A total of 151 resorts reopened in stages over a period of 8 months. By 15 July 2021, 72% of tourism workers had been fully vaccinated.
Hiccups were inevitable. On 13 May, tourist visas were suspended for residents of India - at the time, Maldives’ #1 source market - plus 6 South Asian nations.
Overall, though, a model that other Asian nations could study.
13) Will Phu Quoc Reopen in October?
Phu Quoc, Vietnam's largest island, plans to vaccinate 90% of residents by September in order to reopen to vaccinated tourists. If it goes ahead, Russian tourists could be first to arrive!
14) Unveiling Brand Cathay
In June’s report, we noted Cathay Pacific’s plan to create a new brand called “Cathay”. Recently, the airline unveiled its new premium travel lifestyle brand, called… Cathay.
15) Destination Niue?
It’s winter in Australasia and COVID-19 restrictions are tightening, but speculation surfaced in July about the sparkling coral island of Niue becoming the next travel bubble destination for New Zealand tourists.
And, that’s a wrap.
The Asia Pacific Travel & Tourism Report returns on 29 August.
Meanwhile, The South East Asia Travel Show featured an interview with Vietnam Weekly’s Mike Tatarski discussing the year so far in Vietnam.
Have a great week,
Gary