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Future Tourism of Asian Countries

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University

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Executive Summary

Because of the COVID-19 epidemic, the world is facing an unparalleled global health,

social, and economical disaster (Bank, 2022). One of the world's most important financial sectors

is travel. It is the third-largest fare class, accounting for 7% of global exchange in 2019 (Uğur &

Akbıyık, 2020). It can account for more than 20% of a country's GDP in some cases, and it is the

world economy's third largest fare area in general. The travel and tourism industry is one of the

most affected, with a significant drop in global interest in the face of global travel restrictions,

including the closure of numerous borders to contain the infection, affecting economies,

vocations, public administrations, and openings on all continents. Every link in its massive value

chain has been influenced.

The tourism sector supports one out of every ten jobs and employs a big number of

people in both developing and developed economies. As many as 100 million direct travel sector

jobs are in jeopardy, despite the fact that areas associated to the travel business, such as work

serious convenience and food administrations firms, employ 144 million people worldwide.

Independent businesses (which account for 80% of the global travel industry) are particularly

vulnerable (Uğur & Akbıyık, 2020). Subsidies for biodiversity protection have been cut off due

to an unanticipated drop in the travel sector. Around 7% of the global travel industry identifies

with animals, a segment that is growing at a rate of 3% each year (Uğur & Akbıyık, 2020). This

jobs in jeopardy and has recently resulted in an increase in poaching, plundering, and bushmeat

consumption, owing in part to the reduced presence of tourists and employees in all nations,

including the Philippines, Thailand, and Vietnam. This paper will analyze how this three

mentioned countries affected by the pandemic and their responds concerning their new tourism

policy.
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Introduction

The COVID 19 pandemic is a global phenomenon that has had a major impact on

industry, especially tourism and hospitality. During this period, exports, industries, procured

goods and services from other countries were suspended. This is due to a pandemic that is highly

contagious and has a high mortality rate around the world. Fear of getting such an illness has

encouraged people to stay home and maintain social distance to break the chain of transmission.

Because the disease is viral, it can be transmitted in crowded environments or brought into

countries imported from other contaminated areas. That was the fear of stopping processes in

these two sectors.

The tourism industry has been hit hard by the coronavirus (COVID19) pandemic, and

measures are being taken to curb its spread. Depending on the duration of the crisis, the revised

scenario will restore tourist confidence and change the direction of tourism, with potential shocks

in the international tourism economy in 2020 between 608.0 billion and 100 billion in 2020

(“PricewaterhouseCoopers,” 2020). Sector for the future suggests that it includes consideration

of the abolition of travel restrictions for the future. This paper analyzes how the three Asian

countries (Philippines, Thailand, and Vietnam) are shaping future tourism policies, despite the

pandemic.

Background of the Study

This study mainly focuses on the future tourism policies of Philippines, Thailand, and

Viet Nam and the impact of pandemic towards tourism industry. This study compares how the

three Asian countries develop their future tourism policy despite how the pandemic impacted
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their economy, technical, and holistic. This study will give us knowledge how Asian countries

responds the current pandemic crisis and how we can learn from it.

Review of Literature

As soon as the pandemic relief limits grew, the Philippines Tourism Bureau marketed

tourist destinations, and they were encouraged by digital tourism efforts to advertise the coming

of foreign visitors. They also run a tourism facility that promotes non-contact and cash restaurant

interactions in order to adhere to tight health security protocols. However, local governments in

Babuio City used cloud-based data coding software versions to implement an effective digital

contract tracking technique that provides significant insights into the processing of COVID19

cases in the city. In the first quarter of 2020, travel restrictions, including blockades, are expected

to reduce international visitor numbers by 22% and global tourism revenues by $ 80 billion.

Meanwhile, 97 tourist attractions have stopped all or part of the border, 65 destinations have

stopped all or part of international flights, and 39 tourist attractions have been in the process of

closing the border (“PricewaterhouseCoopers,” 2020).

The subsidy was previously limited to facilities outside of vacationers' home regions in

Thailand; however this restriction was removed in December 2020 as part of the second phase of

the implementation. Domestic visitors who travel by air would also be eligible for a foreign

refund of 40% of the cost of the ticket. With such a capacity of 2 million tickets, it was set at

1,000 baht ($32) each seat. The hotel, on the other hand, only covered 9% of the space (Saxon &

Sodprasert, 2021).

The tourist business in Vietnam provides a significant portion of the country's GDP, and

also the economy has long relied on domestic flights to stay afloat (Margaux, Matthieu, & Le,
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2021). The tourism industry reopened promptly after the country concluded its surprisingly short

blockade, during the holiday season of year 2020. Domestic travel market in Vietnam keeps

growing and recovers at a quick pace, thanks to an increase in domestic spending. Vacationers

who are unable to travel overseas spend more in their home nations in 2019 than they did in 2018

(Margaux, Matthieu, & Le, 2021). As Vietnam's tourist industry grows and vaccinations make

international travel more accessible, travel and tourism enterprises must adapt to thrive. The

health of Vietnam's tourism sector, together with projections for its recovery and a masterplan

for the nation's travel and tourist industry.

Framework

For the framework, we research the economic and holistic of the three countries to

determine how it was impacted by the pandemic. The three countries will be analyzed based on

their economy and holistic outcomes during the pandemic.

The tourist industry in the Philippines produced 12.7 percent to national GDP in 2019

and produced 5.71 million jobs. The dramatic drop in foreign travelers is impacting tourism

expenditure, which affects Vietnam's economy disproportionately because overseas tourists spent

more than inbound tourism. During 2019, whenever the tourism industry contributed for 12

percent of the government's GDP1, abroad tourists made up only 17% of all visitors, but more

than 50% of all tourism expenditure. Domestic travelers spent an average of $ 61 per person,

whereas international tourists spent approximately of $673 per individual. Among both 2014 and

2019, the travel and tourism industry gained 660,000 jobs, and also the nation's food, beverage,

and retail establishments have been hit hard by the significant drop in consumption

(PricewaterhouseCoopers,” 2020)..
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Thailand's government sponsored a total of six million nights of motel lodging at a

discount of 40% off regular hotel prices. The subsidy became capped at 3,000 baht ($100) per

night for up to 5 nights. Subsidies for various services, including food, have been capped at 600

baht ($20) per room per night (Saxon & Sodprasert, 2021). This incentive was initially restricted

to centers outside of visitors' domestic provinces, but that restriction was abolished in December

2020 as part of the second phase of the implementation. In addition, domestic travelers who

travel by air may be eligible for a central authority refund of 40% of the ticket price.

Discussion

According to the Philippine government, 78 percent of those surveyed estimate that they

will require up to 5 million Philippine pesos to recover from a pandemic. The majority of

respondents say they require working capital, marketing funds to develop their brand, and

refinancing finances. It's unsurprising that 91 percent of respondents are from small and

medium-sized firms (MSMEs), with 73 percent planning to use government grants and subsidies

to help them revitalize their companies. In the meantime, Thailand is working on a wide range of

changes to aid recovery. Thailand appears to be on the verge of regaining its footing.

Thailand's tourism sector was able to recover in advance until 2024. Domestic tourism in

Thailand's GDP and domestic tourism largely depends on domestic tourism. The recovery of the

sector depends on the reaction of overseas travel. This recovery scenario could convey the status

of travel agencies around the world and create essential requirements for the public and private

sectors to ensure the survival of the industry. For Vietnam, the industrial travel society is seeking

a path to recovery, and while the pain and tendencies associated with pre-crisis existence have

been resolved, it is important to address the risks and fears of COVID 19. Changes in tourism
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practice may lead to more high-end domestic travel. As passengers reallocate financial

expenditures as boundaries remain closed for leisure tourism, an upsurge in domestic luxury

vacations may occur. Domestic tourists, on the other hand, have lower spending than

international visitors, thus this sort of travel will not be able to entirely replace the void left by

the lack of international vacationers.

Table 1: Arrival rates of visitors to Philippines of residence

We noticed that there is a negative result from all countries arrival to the Philippines.

From Thailand, there are -85.04% or arrival rates and -84.85% from Viet Nam. This data

recorded from January to December of year 2021 (Bank, 2022). The decline of the arrival rates

took bad to the economy and affects the employment of many. Therefore, these three countries

developed their one tourism policies in order to recover and it was discussed in our findings.
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Analysis of Findings

The three countries have different strategies and levels of developing their tourism

policies upon this pandemic. However, both of them have one objective and goals to achieve: it

is to reopen the tourism industry despite of pandemic and gain back the revenue and their

economy again.

As travel restrictions related to the epidemic are eased, the Philippines will start a digital

tourism campaign to promote its attractions and increase foreign visitor arrivals. They also

demand that tourism adhere to stringent health-protection regulations by encouraging contactless

and cashless transactions. Meanwhile, Baguio City Authority has leveraged cloud-based data

coding and collection, and GIS-based geospatial and connectivity analysis to implement an

effective digital contract tracking approach, with City Authority reporting on the city's COVID

19 situation. In addition, the Ministry of Tourism will spend 5 million pesos as part of its

reconstruction efforts. With 91 percent of respondents hailing from micro, small, and medium-

sized businesses (MSMEs), it's no surprise that 73 percent want to take advantage of the

numerous grants and assistance to help them restart their businesses ("PricewaterhouseCoopers,"

2020).

To fulfill market needs, Thailand's future tourist plans will entail altering offers and

pricing strategies. Hotels, tour operators, restaurants, and transportation companies may want to

look into ways to deliver services and goods that meet modern travel demands (Saxon &

Sodprasert, 2021). Sales promotional and cross-selling possibilities, as well as a diverse revenue

stream, are available with bundle items like hotels and flights. Travel companies might also

create and implement tailored pricing strategies to encourage long-term commitment and
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stickiness in anticipation of the full recovery of international travel. As the popular Thai state

gradually reopens and visitors from certain countries are added to the quarantine exemption list,

travel agencies use travel behavior data to provide the appropriate fares for each country of

departure and destination. If most visitors decided to travel, the medical crisis caused by the

COVID 19 epidemic had a significant impact on their thinking (Hoa, Anh Thi Nga Thi, & Duy,

2022). Therefore, in order to attract tourists after the pandemic, it is necessary to build a safe

tourist environment. Tourism Market Growth Strategy: The COVID19 epidemic has a significant

impact on the needs and psychology of travelers. “To ensure health safety elements, save money,

reduce risk, and be more aggressive in unforeseen circumstances, tourists do not choose faraway

locations, but short areas or transit times.

Policy Recommendations

Philippines’ implementation of tourism policy seemed wrong in regards with the funding

of the operation. The funds 5 million is not enough, however, it can have a good result for short-

term operation recover. However, they were correct of allowing the government to digital

tourism campaign that can boost their economy.

Thailand and Viet Name on the other hand, wisely choose the plan the adjustments of

their travel costs. This plan can be wrong since we knew, lots of restrictions been implemented

and in some instances, there were no bookings even if the industry will lower the costs. This is

due to travel restriction; however, the good thing concerning their plan is it can help people

minimize their travel costs if the government will allow them to re-open during the new-normal

stage.
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Since both countries are seeking for best policies to be implemented upon pandemic,

therefore my recommendations would benefit for both that Philippines, Thailand, and Viet Nam

would benefit: First is to manage is to have incentives for clients and rebuilt the enterprise; help

from authorities in shape of tax rebates and incentives to inspire regulations to assist enterprise;

to make certain extra performance and feature specialization be it in touring routes, stock etc., in

which the concept is to redefine the less value for the enterprise. Finally, need to the discount in

tour be longer lasting, attributable to modifications in visitor options or monetary scarring, a few

tourism-structured international locations like might also additionally want to embark on a

protracted and hard adventure to diversify their economies. Investing in non-tourism sectors is a

protracted-time period purpose however might be aided with the aid of using strengthening

hyperlinks among tourism and domestically produced agriculture, manufacturing, and

entertainment. In Thailand, for instance, an internet platform turned into released that permits

consumer’s within the enterprise to immediately buy items from neighborhood farmers. Exports,

along with services, can also be expanded, the use of local agreements to deal with the

restrictions imposed with the aid of using restrained economies of scale.

References

Bank, A. D. (2022). COVID-19 and the Future of Tourism in Asia and the Pacific.

In www.adb.org. Asian Development Bank. https://www.adb.org/publications/covid-19-future-

tourism-asia-pacific

Be part of the fun! Welcome to the DOT Corporate Site. (n.d.). Beta.tourism.gov.ph.

Retrieved April 7, 2022, from https://beta.tourism.gov.ph/industryperformance

Helble, M., & Fink, A. (2020). Reviving Tourism amid COVID-19 Pandemic. ADB

Briefs, 150. https://doi.org/10.22617/brf200245-2

PricewaterhouseCoopers. (2020, July). Tourism and COVID19: PwC Philippines. PwC.

https://www.pwc.com/ph/en/publications/tourism-pwc-philippines/tourism-covid-19.html

Margaux Constantin, Matthieu Francois, & Le, T. (2021, March 19). Reimagining

tourism: How Vietnam can accelerate travel recovery. McKinsey & Company; McKinsey &

Company. https://www.mckinsey.com/featured-insights/asia-pacific/reimagining-tourism-how-

vietnam-can-accelerate-travel-recovery

Saxon, S., and Sodprasert, J. (2021). Reimagining travel: Thailand tourism after the

COVID-19 pandemic | McKinsey. (n.d.). Www.mckinsey.com. Retrieved April 7, 2022, from

https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/

reimagining-travel-thailand-tourism-after-the-covid-19-pandemic#:~:text=As%20of

%20November%201%2C%202021
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