ASEAN hotel associations advocate for travel bubble
HOTEL associations in Indonesia, Thailand and the Philippines are advocating a start to intra-ASEAN travel to boost regional tourism, which has been hit hard by the Covid19 pandemic.
While the possibility of opening borders for tourism is likely still months away, each country is starting to open up travel and hospitality services for domestic tourists.
Hotel and Restaurant Association of the Philippines head Eugene T Yap said the country had created a local travel bubble programme, allowing domestic tourists to visit 10 destinations with strict protocols in place.
“If opening local tourism gains success, then international tourists will become more confident in coming to ASEAN countries,” he said during a webinar hosted by Sahid University in Indonesia on Monday.
“We need to reopen our businesses and find solutions to deal with the effects of Covid-19. There is no use in sitting down and hoping that this pandemic will be gone,” said Yap, who is also the ASEAN Hotel and Restaurant Association president.
Thailand Hotel Association president Supawan Tanomkieatipum said the Thai government was subsidising 40 per cent of local tourists’ expenses, such as hotel fares, to help the travel industry recover.
“As soon as we see local travel recover, we would like the Thai government to join an intra-ASEAN travel bubble,” she said, adding that the tourist industry in Thailand had experienced an 89 per cent decline in both tourist arrivals and income from tourism.
The Indonesian tourist industry has also struggled during the pandemic, losing 85 trillion rupiah ($5.8 billion) in tourism revenue so far this year.
The hotel and restaurant industry has lost nearly 70 trillion rupiah in revenue as leisure travel has come to a complete halt, while aviation and tour operators have lost 15 trillion rupiah in revenue.
The tourism sector is currently eligible for a 30 per cent discount on corporate income tax to cushion the Covid-19 pandemic’s impact.
Indonesian Hotel and Restaurant Association (PHRI) chairman Hariyadi Sukamdani said domestic tourists made up 91 per cent of total tourists last year, and it made up 96 per cent of total visitors since the pandemic.
“There is great market potential with domestic tourists,” he said at the event. “However, their confidence in travelling is still low now. I believe demand in travel will rebound once the government can handle the pandemic better and a vaccine is available.”
Hariyadi quoted a survey from online travel agency Traveloka that shows 71 per cent of people feel it will be safe to travel around October or even next year. Only 21 per cent of people surveyed said they felt safe travelling this month.
The Ministry of Foreign Affairs said tourist arrivals in Southeast Asia were down 48 per cent due to the pandemic, affecting more than 100 million jobs.
The ministry’s ASEAN economic cooperation director Berlianto Situngkir said member countries were considering creating a travel corridor to facilitate business travel.
“The foreign minister will discuss the ASEAN travel bubble for international travellers sometime around September,” Berlianto said, adding that some destinations in Indonesia were already open to domestic travellers.
Indonesia was also finalising a travel corridor agreement with the UAE to facilitate “essential business trips” between the two countries.
The government recently announced that it would reopen Banyuwangi in East Java and Bali for local tourists on the first week of next month, as part of the government’s effort to “gradually” revive tourism and the aviation sector.
However, Southeast Asia has seen a rise in Covid-19 cases recently.
Indonesia reported on Monday t hat it had exceeded 100,000 cases, wit h t he capita l reporting its highest one-day spike since t he first cases were confirmed in the cit y in March.
Meanwhile, Manila and Vietnam’s Danang city have seen a surge in Covid-19 cases, with the Danang cases being the first community infection since April, Reuters reported.