Issue #114 - 5 Non-Travel Issues That Could Impact Travel & Tourism in Asia Pacific!
How will contaminated seafood, a new tax and volatile currencies play out in travel?
Welcome to issue 114 of Asia Travel Re:Set.
Travel and tourism are more political than ever, particularly in geo-strategic flashpoint zones. North East Asia fits into that category.
I last visited Japan in summer 2011, touring the south of the country by train to produce travel content for a global media network.
The objective was to show that a few months after the Great East Japan Earthquake & Tsunami - which catalysed the Fukushima Daiichi nuclear plant disaster - southern Japan was safe to visit.
To my personal chagrin, I have not (yet) returned to Japan - but the long-term impact of Fukushima is making headlines again 12 years later.
So let’s follow that train of thought…
Thanks for checking-in.
- “IN THE NEWS”
- 5 Non-Travel Issues That Could Impact Travel & Tourism in Asia Pacific!
How will contaminated seafood, a new tax and volatile currencies play out in travel?
- The Top 10 Travel & Tourism Talking Points in South East Asia in the First Half of 2023
Hannah Pearson and I unpack the region’s big issues and developments so far this year.
“IN THE NEWS”
Indonesia is large. 17,500+ islands large. Last week, I gave a statistics-driven tour of South East Asia’s largest nation and largest economy - which counts the world’s 4th-largest population - for the Institute of Tourism’s Indonesia: The Untapped Destination webinar. Click to watch HERE (From 1 hour, 39 mins).
“As China transitions into a new travel era, OTA bookings at home and abroad are picking up speed. During 36 months of COVID disruption, Chinese OTAs reframed their businesses. Among notable moves, they grew their customer bases in lower-tier cities, embraced user-generated content, augmented their livestreaming capabilities, and prepared for social commerce challengers.”
A large part of May and early June was spent researching this Phocuswright deep-dive into the turnaround strategies of Chinese OTAs during 3 years of travel isolation. The report is paywalled but a free-to-read synopsis will be published soon by PhocusWire.
5 Non-Travel Issues That Could Impact Travel & Tourism in Asia Pacific!
1) Fukushima & Fish in Japan
The fallout from Japan’s decision to release treated radioactive water from the “tsunami-wrecked” Fukushima Daiichi nuclear plant is only just starting. China, Hong Kong & South Korea have all voiced opposition to a “selfish” move. As major importers of Japanese seafood, all three say they will halt imports.
Where this veers into tourism territory is food. Japan’s prized culinary scene is integral to its allure for visitors from China and across Asia. (Just walk through any mall in a major Asian city and count the Japanese restaurants). Tokyo alone has 200 Michelin-starred restaurants. Regional gastronomy specialisms across Japan entice tourists, but the coveted component of the most popular dishes for tourists is seafood.
2) Politics & Protest in Thailand
Thailand’s political crisis deepens. This week, Pita Limjaroenrat, leader of the Move Forward party - which won most votes in the 14 May election - was blocked from becoming Prime Minister. This complex conservative vs progressive politics power play is neatly explained by Erin Cook in the excellent Dari Mulut ke Mulut newsletter.
Where this veers into tourism territory is potential civil unrest. Thailand is emerging from 9 years of army-backed government. Pita Limjaroenrat, a polished 42-year-old modern politician and former Grab executive, presents Move Forward - which evolved from the 2021 street protests (although it’s bit more complicated than that) - as offering a fresh direction, especially for disaffected young people. The spectre of prolonged protests and/or another military political intervention appear real.
3) Tax & Tourist Culture in Bali
As we’ve experienced during 3.5 years of producing The South East Asia Travel Show, once you insert “Bali” into a title the volume of listeners/readers increases. Hence, Bali governor Wayan Koster’s declaration of an IDR150,000 tax on international visitors from 2024 is a gift to click-collecting editors and headline writers.
But, wait. This is a tax on tourists, so it’s inherently a tourism issue? Yes and no. It’s actually a political intervention, a regulatory tool. Travel operators, tourists and local people will have their own views, but the decision is not theirs. The stated objective of the levy is to “preserve local culture.” This is offset by a subsequent comment that funds raised will be used (at least partly) to “build better quality infrastructure.”
4) Arrests & F1 in Singapore
Cast your mind back to September 2022. Singapore’s first F1 Grand Prix night race since 2019 was rightly hailed as a regional tourism success. Business Times noted it attracted “the highest attendance the event has seen since its inception in 2008.”
The 2023 F1 festival will take place from 15-17 September, and the annual hosting deal runs until 2029. However, this week Ong Beng Seng, Managing Director of Hotel Properties Ltd, who negotiated the Singapore F1 deal and holds the rights to the race, was arrested by Singapore’s Corrupt Practices Investigation Bureau. The probe also resulted in arrest for Singapore’s Transport Minister S. Iswaran. No charges have been filed, and the investigation continues. A story to follow.
5) Confidence & Currencies in Japan & China
Since last September (see issue #95), I’ve commented on the weakness of Japan’s Yen, and its influence on inbound tourism. Back then, the Yen slumped to 145 to the USD. It subsequently declined further, before rebounding to 145 and retreating again this week. A devalued currency is seemingly encouraging more Japanese to travel domestically. A survey by JTB shows the average domestic travel budget this summer is at its highest level since 1996 (possibly because inflation is proving stubborn).
The Japanese Yen is not the only oscillating Asian currency. China’s RMB experienced a period of devaluation, but is currently rebounding prompting caution from the People’s Bank of China. Unquestionably, China’s tourism recovery in the first half of 2023 was driven by domestic demand. Will a resurgent currency encourage more wait-and-see travellers to make an overseas booking in H2?
The Top 10 Travel & Tourism Talking Points in South East Asia in the First Half of 2023
China Outbound. Thailand Inbound. Visa Backlogs. Taylor Swift. Love the Philippines. What connects the dots? All feature in The South East Asia Travel Show's round-up of the Top 10 Travel & Tourism Talking Points in H1 of 2023.
As the region moves on from its first full first-half-year of travel since 2019, we discuss the key takeaways. Plus, we forecast the hot issues to watch in H2 of 2023.
Listen to The Top 10 Travel & Tourism Talking Points in South East Asia in the First Half of 2023, here:
🎧 Website 🎧 Spotify 🎧 Apple Podcasts
Or search for The South East Asia Travel Show on any podcast platform
And, that’s a wrap for Issue 114.
The Asia Travel Re:Set newsletter will return on 30 July.
Until then, find me at LinkedIn and The South East Asia Travel Show - where this week we’ll discuss the tourism outlook in Maldives with Thoyyib Mohamed, CEO of Visit Maldives.
Happy travels,
Gary