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SE Asia opening may prove a double-edged sword for local tourism
Industry experts are divided on whether Cambodia’s tourism industry will win or lose as Southeast-Asia reopens its borders to foreign visitors.
Vietnam is considering allowing tourists back from March 15, Thailand has restarted its Test & Go scheme after a month’s hiatus and Singapore is planning to triple the number of visitors passing through its quarantine-free travel gates to 15,000 from early next month.
Cambodia dropped quarantine for fully vaccinated visitors last November. The effect on arrivals was mixed, according to Nataly Wanhoff, Cambodia General Manager for Focus Asia, which works with agencies in Europe, the US and Australia.
“The numbers were small. It was not the overwhelming effect we hoped for,” she said. “A very good effect was that we finally received requests and bookings for Cambodia which were 10 days, 14 days, even 17 days and not the usual three days two nights Siem Reap/Anchor package only.”
With the option of a multi-stop package in Vietnam, Thailand and Cambodia, those bookings may return to short stays, Wanhoff said.
Phuket-based tourism and real estate advisor Bill Barnett said Thailand saw residents, family visitors and business people coming back first after the introduction of Test & Go.
“Tourism numbers were small,” he said. “We only saw an uptick in winter in markets like Phuket where we have legacy European markets like the UK, Germany, Russia and Scandinavia. They always have long winter stays so they came back and also many to Phuket who have holiday houses here,” said the founder of C9 Hotelworks. “Cambodia will struggle a bit as, aside from Chinese visitors, their high end Western markets typically are cultural travellers and they typically visit multiple destinations or countries and that will be hard with various quarantine regimes. Most tourists now are destination specific so it will take time.”
Destination Mekong Chief Executive Officer Catherine Germier-Hamel said Cambodia should focus on growing areas like eco-tourism to win back foreign visitors and persuade them to stay longer.
“The power of Cambodia to attract tourists from neighbouring countries should and can be improved,” she. “Apart from accessibility, quality, and authenticity, more cooperation between sectors and countries is needed, as well as diversification, differentiation and synergies to achieve outstanding destinations and experiences. Trying to copy what the neighbours do, or even trying to attract and please market segments that do not care, seems useless. And doing the same as usual will only bring the same results as usual so innovation and creativity should also be encouraged, especially because the population of Cambodia is young and this is a strong asset.”
The operator of Cambodia’s three international airports, in Phnom Penh, Sihanoukville and Siem Reap, is hoping to reap the rewards of long-haul tourists heading to Vietnam, which has been closed to most foreigners for nearly two years.
Aviation officials there have already removed limits on the number of international flights from all countries, allowing them to return to pre-pandemic levels. Before the pandemic hit the region thousands of Vietnam Airlines passengers used Ho Chi Minh City as a stop-off point before flying on to Phnom Penh and Siem Reap. Vietnam Airlines has resumed the Phnom Penh-Ho Chi Minh City route every day except Sunday and Monday
“There’s no doubt that reopening borders and easing entry conditions drive air demand and benefit the air transport ecosystem,” said Cambodia Airports spokesman Norinda Khek. “We are cautiously optimistic. The downfall caused by the pandemic has been massive, so it probably will take some time to rebuild traffic; it should be a gradual process and at some point, in the last quarter of 2022 accelerate.”
Chhay Sivlin, President of the Cambodia Tourism Association, agrees that Cambodia stands to benefit from long-haul flights coming via Vietnam.
“Vietnamese were the second top market arriving in Cambodia in 2019 with over 900,000 tourists, therefore we can also significantly benefit from Vietnamese travellers due to our countries’ proximity and the convenience of Cambodia’s entry regulations,” she said. “As for Thailand, their resumption of the Test & Go Scheme is good news, however some restrictions and documents are still needed therefore tourist traffic may still be limited,” she added, referring to the need for tourists to take a second PCR test on their fifth day in the country.
The World Bank recently advised Cambodia to diversify its economy to avoid over-reliance on tourism. Moody’s Chief APAC Economist Steve Cochrane said this is already happening but he said the country should continue to support the many small enterprises working in tourism.
“The World Bank ranks Cambodia as the highest among all Southeast-Asia countries in terms of Travel and Tourism’s direct contribution to GDP. So the turnaround of the industry will be very important to Cambodia,” Cochrane said. “With Thailand and Vietnam opening their borders to travel, Southeast Asia will become a tourist destination once again if one can freely cross borders across the region. If one travels a long way, the ability to visit multiple destinations will increasingly appeal to the traveller.”
Cochrane cautioned that there are still obstacles in the form of proof of vaccination and pre or post-arrival testing, which may deter older, higher spending tourists. He forecast a gradual revival in the sector, saying 2024 will be a better year, bringing simpler travel protocols and more acceptance of them by international tourists.
Source: https://www.khmertimeskh.com/501030049/se-asia-opening-may-prove-a-double-edged-sword-for-local-tourism/