Travel Aggregator COVID-19 Special Edition (22 June 2020)

22 JUNE 2020

COVID-19 Special Edition: Opinion Piece

NTOs AND TOURISM

FOREWORD

Welcome to ano edition of Trave

WebBeds’ newsletter dedicated

Following the unprecedented disruption and dar appearing at the end of the tunnel. Countries all

normal. But what will this “new normal” look like?

In this issue, we consider the short-term future of

gradually lifted and people tentatively start to ste arrangements? And which countries will be best

With the help of WebBeds' team of analysts, we lo

their tourism industries, such as marketing camp

countries and territories are best placed to rebou

We hope you enjoy the read. Please stay safe – tog Daryl Lee CEO of WebBeds Asia Pacific

To catch up on any past editions of Travel Aggregator, simpl

Disclaimer: The information contained herein (the “Information”) is provided as is. While reasonable care has been taken to ensu “WebBeds”) are not responsible for any errors, inaccuracies or omissions in the Information. WebBeds may correct or update the will be accurate, reliable, current or without errors. To the maximum extent permitted by applicable law, WebBeds disclaim all r decision made or action taken in reliance on the Information or for any consequential, special or other damages, even if advised 2

FOREWORD

WEBBEDS ASIA PACIFIC

other special el Aggregator –

d to the travel trade in Asia Pacific.

rkness caused by COVID-19, we can finally see light around the world are trying to reopen and return to

DARYL LEE CEO Daryl.Lee@webbeds.com SUN KOK SHENG CCO Koksheng.Sun@webbeds.com CYNDI NG COO Cyndi.Ng@webbeds.com BERNARD CHIONH CFO Bernard.Chionh@webbeds.com CHERYL CHEANG Vice President, Marketing Cheryl.Cheang@webbeds.com

?

EILEEN TOK Vice President, Commercial Technology Eileen.Tok@webbeds.com

f travel in Asia Pacific, as lockdown restrictions are

KRISTY LEE Lead Research Analyst Kristy.Lee@webbeds.com

ep out again. Will we see the expansion of “fast-lane” travel placed to capitalise on the recovery?

ook at the steps different NTOs are taking to accelerate

paigns and government stimuli. The aim is to gauge which

und.

gether we will recover stronger than ever.

JINTANA PORNTANAPAT General Manager, Thailand and Indo-China Jintana.Porntanapat@webbeds.com VINCENT LEUNG Managing Director, Hong Kong, Philippines & Japan Vincent.Leung@webbeds.com JOY HUANG Managing Director, China Joy.Huang@webbeds.com LINDA KIM General Manager, South Korea Linda.Kim@webbeds.com ASHUTOSH DOGRA General Manager, India Ashutosh.Dogra@webbeds.com JOHN STUCCI President, Pacific John.Stucci@webbeds.com JOY ZHOU General Manager, Singapore and Malaysia Joy.Zhou@webbeds.com

ly head to attractions.fitruums.com/landing/aggregator @WebBedsAPAC

ure that the Information has been obtained from reliable sources, WebBeds FZ-LLC and its representatives (collectively e Information without prior notice. WebBeds make no representations, warranties or guarantees that the Information is or representations and warranties, whether express or implied. In no event shall WebBeds be liable to you or anyone else for any d of the possibility of such damages.

3

NTOS & TOURISM

NTOBringing s and Tourism back tourism COVID-19

unprecedented

Singapore). Given that leisure travel makes up

upheaval in the global travel, tourism and

the majority of tourism for most APAC markets

hospitality industries. Since early 2020, a

(Chart 1), National Tourism Organisations

combination

(NTOs) are likely to stimulate leisure travel

and

has

created

of lockdowns, border closures

quarantine

regulations

has

seen

when border controls ease further, to allow

international travel grind to a halt. With the

more travellers in these markets. The APAC

pandemic now appearing to have eased

countries/territories that are most reliant on

however, countries across Asia Pacific are

leisure tourism are Macao, India, Vietnam,

drawing up plans to kick-start their tourism

Thailand, Hong Kong, Australia, New Zealand,

economies. In this edition of Travel Aggregator,

China, and South Korea. Destinations that are

we look at how the short-term future of travel

perceived to have managed the pandemic

might look, as restrictions are gradually lifted.

well will garner more interest, including Macao, Vietnam, Thailand, Australia, New

As strict border controls across the world start

Zealand, China and South Korea. In Hong

to be relaxed, some countries have established

Kong however, the political situation may

“fast-lane� arrangements for essential business

temporarily deter visitors over the next few

travel (e.g. China and South Korea, China and

months, even if border controls are lifted.

Source: World Bank and WTTC

4

44%

88%

12%

90%

Vietnam

34%

56%

Thailand

17%

Leisure Tourism Spending

66%

Philippines

46%

83%

New Zealand

4%

54%

Malaysia

20%

96%

Macao

32%

80%

Korea, Rep.

25%

68%

Japan

5%

75%

Indonesia

17%

95%

India

19%

83%

Hong Kong

29%

81%

China

17%

71%

Cambodia

Australia

83%

Business Tourism Spending

Singapore

Chart 1: Business vs Leisure Tourism 2018 (by expenditure)

10%

NTOS & TOURISM

5

NTOS & TOURISM

Chart 2 shows APAC countries’ tourism

restrictions still in place, these markets have

distribution in terms of domestic versus

been actively stimulating domestic tourism

international

as

since they emerged from lockdown. Domestic

Macao, Thailand, Hong Kong, Cambodia,

flight capacity has been gradually improving

Singapore, Malaysia and Vietnam generated

in China and reached almost 80% of previous

more international spending than domestic

year’s level by 1 June.1 Some domestic post-

spending in 2018. As most NTOs’ main

COVID-19 campaigns and/or initiatives have

objective is to attract international leisure

also been outlined on page 14.

spending.

Markets

such

visitors, NTOs in these markets would actively work towards promoting their destinations in

Combining these parameters, together with

important source markets (Refer to Table 1 on

the

page 9). With strict border controls, tourism

tourism as a percentage of GDP, we compared

markets that rely more on international

the various APAC markets on a four-quadrant

arrivals are likely to suffer more in the short-

chart in Chart 3. Markets in quadrant 3 should

to medium-term. NTOs in markets that can

see NTOs actively devising campaigns to bring

depend on domestic tourism may allocate

back international leisure travellers, followed

more

domestic

by those in quadrants 1 and 4. The extent of

tourism in 2Q-3Q20 first, as budgets generally

their activities will also depend on the allocated

need to be spent in the fiscal year. These could

budget and government stimulus for tourism.

include Australia, China, Japan, South Korea

This will be discussed in later sections.

budget

into

stimulating

countries’/territories’

dependency

and New Zealand. With international travel

1

6

OAG, ‘Global Scheduled Flights Change year-over-year’, https://www.oag.com/coronavirus-airline-schedules-data (accessed 10 June 2020)

on

NTOS & TOURISM

86%

80%

32%

20%

51%

Vietnam

60%

68%

Thailand

48%

International Spending

14%

Philippines

3%

40%

New Zealand

74%

52%

Malaysia

84%

97%

Macao

59%

26%

Korea, Rep.

87%

16%

Japan

41%

Indonesia

23%

13%

India

88%

77%

Hong Kong

25%

12%

China

77%

75%

Cambodia

Australia

23%

Domestic Tourism Spending

Singapore

Chart 2: Domestic vs International Tourism 2018 (by expenditure)

49%

Source: World Bank and WTTC

Chart 3: Reliance on International Tourism vs Leisure Tourism High

Reliance on International Tourism 1

3

Macao

Cambodia

Thailand Hong Kong

Singapore

Malaysia

Vietnam

Indonesia

Reliance on Leisure Tourism

New Zealand

Low

High

International Trips (mil) in 2018 China

63

Thailand

38

Japan

31

Hong Kong

29

Malaysia

26

Macao

18

India

17

Indonesia

16

Vietnam

15

Korea, Rep

15

Singapore

15

Australia

9

Philippines

7

Cambodia

6

New Zealand

4

Japan Korea, Rep

Australia

Philippines China

2

India

4

Size of bubbles indicate tourism as a % of GDP Source: WebBeds

Source: World Bank Low

7

W H I C H M A R K E T S A R E N T O S L I K E LY T O TA R G E T ?

Which markets are NTOs likely to target?

We summarised selected APAC destinations with their source markets from APAC in Chart 4 and assessed the potential target markets for the various NTOs in Table 1. We excluded long-haul source markets in this study as we think long-haul leisure travel will take much longer to recover. NTOs are likely to focus on domestic travel first, followed by international short-haul travel. Stakeholders in the travel industry should pay more attention to these potential source markets, as tourism is likely to receive more support from NTOs in these destinations. For example, hoteliers or travel agents in Thailand could initially focus their valuable resources on marketing in major source markets, such China and Malaysia.

8

W H I C H M A R K E T S A R E N T O S L I K E LY T O TA R G E T ?

Chart 4: International Arrivals by Country of Residence (market share %), 2018 S Australia

Cambodia

D

E

S T

I

N A T

I

O

N S

Australia Cambodia

U

R

C

E

M

A

R

Hong Kong

India

Indonesia

Japan

Korea, Rep

*15%

3%

4%

2%

5% 3%

2%

33%

1%

78%

China Hong Kong

O

China

50% 1%

K

E

Macao

T

S Malaysia

New Zealand

Philippines

Singapore

Thailand

3%

4%

15%

2%

5%

1%

1%

5%

3%

6%

13%

2%

3%

16%

2%

2%

2%

5% 1%

1%

1%

India

2%

2%

Indonesia

8%

14%

Japan

2%

27%

7%

1%

Korea, Rep

1%

31%

4%

2%

19%

Macao

71%

18%

1%

2%

Malaysia

11%

13%

2%

2%

3%

2%

9%

23%

4%

3%

7%

4%

5%

11%

3%

5%

22%

3%

2%

New Zealand

1%

2% 4%

3%

2%

39%

12%

Philippines

4%

18%

Singapore

6%

Thailand

2%

Vietnam

2%

2%

Vietnam

2%

2%

18%

3%

8%

28%

3%

4%

16%

32%

16% 24%

11%

2%

2%

1%

4%

1%

2%

3%

2%

4%

3%

41%

7%

1%

1% 2%

1%

2% 2% 4%

3%

3% 3%

2%

Source: UNWTO, compiled by WebBeds Note: Percentages indicate the proportion (market share %) of international arrivals from these source markets *Example: 15% of all international arrivals to Australia are from China

Table 1: NTO’s Potential Target Source Markets NTO's

NTOs' potential target source markets

Australia

China

New Zealand

Japan

Singapore

Cambodia

China

Vietnam

Thailand

Korea, Rep

China

Hong Kong

Macao

Vietnam

Hong Kong

China

Japan

Korea, Rep

India

China

Australia

Malaysia

Indonesia

China

Malaysia

Australia

Japan

China

Korea, Rep

Thailand

Korea, Rep

China

Japan

Macao

China

Hong Kong

Malaysia

Singapore

Indonesia

New Zealand

Australia

China

Philippines

Korea, Rep

China

Japan

Singapore

China

Indonesia

Malaysia

Thailand

China

Malaysia

Vietnam

China

Korea, Rep

Macao

China

Source: WebBeds

Japan

Note: Those highlighted in red rely more on international tourism than domestic tourism

9

NTOS AND THEIR BUDGETS

NTOs and their budgets Other than assessing the nature of tourism

lower than Thailand which had 38 million

in each destination and recognising the

international arrivals with just USD 219 million

importance of certain source markets, we also

of tourism budget. Chart 6 also shows that

considered the tourism budgets of the various

tourism receipts for Thailand at USD 65 billion,

NTOs and their financial ability to stimulate

far exceeded that of Japan’s (USD 45 billion)

tourism in these destinations. We compiled

and South Korea’s (USD 20 billion). This could

the various NTOs’ latest available data, notably

suggest the effectiveness of Tourism Authority

their budgets for tourism and the added

of Thailand’s (TAT) tourism campaigns and we

stimulus given by the government to assist the

can expect a revival of the Thai tourism industry

tourism sector during the pandemic.

in the post-COVID-19 world. Thailand is also an inherently popular leisure destination as it

Charts 5 and 6 show NTOs’ tourism budgets

offers a wide variety of attractions, including

pre-COVID-19. This data was derived mostly

beach, shopping, culture and cuisine. It is also a

from the NTOs’ latest available annual reports

year-round destination with plenty of sunshine

and other publicly available sources. Tourism

regardless of season, although the country is

budgets were mostly from governments,

busiest during the dry season (October-April).

although some sources of funding could come from international tourist taxes / levies (e.g. Japan, New Zealand). Most NTOs do not declare how these budgets were spent and we understand that some NTOs have more responsibilities (e.g. licensing, policy development, investments etc.) than purely destination marketing.

Nonetheless, we

assessed some indicators such as international arrivals and tourism receipts to assess these expenditures. Chart 5 shows that tourism budgets for Japan and South Korea were the highest at USD 661 million and USD 657

million

respectively.

However,

their

international arrivals only reached 31 million trips and 15 million trips respectively in 2018,

10

NTOS AND THEIR BUDGETS

International Arrivals (2018) (Mil Trips)

50

400

40 38

30

31 26 219

200 15

9

73 6

Malaysia

Macao

Indonesia

India

Hong Kong

China

Cambodia

Korea, Rep.

0.3

NA

15

10

154

7

4

34

New Zealand

6

0

Chart 6: NTO's Budget vs Tourism Receipts

NA

Tourism Receipts (RHS)

0

Total NTOs' budget

700

70 661

657

65

600

60

500

50 47

45

400

42

40

40

40

300

30 29 285

156

154 11 73

5

10

10

NA

New Zealand

Malaysia

Macao

Korea, Rep.

Japan

India

Hong Kong

10 34

6

0.3

China

Cambodia

NA

Indonesia

0

20

0

Vietnam

16

149

Thailand

118

219

20

Philippines

157

100

22

20

Singapore

200

Australia

M I L L I O N - - - - - - -

15

156

B I L L I O N - - - - - - - -

16

Vietnam

100

Thailand

17

Singapore

149

Philippines

157 118

20

18

- - - - - - U S D

285

29

T R I P S - - - - - -

60

500

Australia

- - - - - - - - U S D

657

63

600

- - - - - - M I L L I O N

70 661

300

- - - - - - - - U S D

Total NTOs' budget

700

Japan

M I L L I O N - - - - - - -

Chart 5: NTO's Budget vs International Arrivals

Source: World Bank and from various sources compiled by WebBeds Note: Based on latest available data published by NTOs. (NA: Budget is not available)

11

GOVERNMENT STIMULUS FOR THE TOURISM SECTOR

Government stimulus for the tourism sector In terms of government stimulus, we only

generous amounts of stimuli at USD 252 mil

found 10 countries who explicitly announced

and USD 194 mil respectively.

specific stimulus for the tourism industry. a

By assessing these tourism budgets and

domestic tourism stimulus worth USD 722

stimuli, we recognise that some governments

mil, the highest amount of stimulus for the

are eager to kick-start the tourism sector

tourism sector in APAC to-date. Australia has

when travel restrictions ease. Stakeholders in

also rolled out a large stimulus at USD 660

the travel industry, such as hoteliers and travel

mil, which far exceeded their existing tourism

agents, should focus more resources in these

budget by more than five times (Chart 7). New

markets as tourism is more likely to thrive

Zealand and South Korea also had rather

when leisure travel resumes.

Thailand’s

12

cabinet

has

just

approved

GOVERNMENT STIMULUS FOR THE TOURISM SECTOR

Chart 7: Government Stimulus for the Tourism Sector Government Stimulus For Tourism Sector (USD mil)

800

4000% 722

700

3500%

660

600

3000% 2784%

500

2500%

400

2000%

300

1500% 252

200

1000%

194

100 557%

500%

91 64

330%

42%

Thailand

NA

Singapore

New Zealand

Philippines

0.16

NA

Malaysia

3%

5

Macao

Indonesia

30%

5%

Korea, Rep.

7.3

Japan

NA

India

NA

Hong Kong

NA

China

0

Cambodia

33 61%

0

Vietnam

344%

Australia

- - - - - - - - - - - U S D

M I L L I O N - - - - - - - -

Stimulus for Tourism Sector as a % of NTO's Budget

Source: From various sources compiled by WebBeds Note: Some markets have announced a general stimulus for their economies but there were no specific allocations for the tourism sector. We categorised their tourism stimulus as ‘not available’ (NA).

13

P O S T C O V I D - 1 9 T O U R I S M C A M PA I G N S O R I N I T I AT I V E S

Post COVID-19 tourism campaigns or initiatives Some NTOs have already been planning tourism campaigns for the post-COVID-19 world and we highlight a few notable ones here: New Zealand: On May 22, Tourism New Zealand (TNZ) launched a new campaign, “Do Something New, New Zealand”, to encourage domestic travel and to restart the tourism sector. Domestic travel accounts for 60% of tourism in the country, and New Zealanders previously spent NZD 9 billion on overseas travel per year. TNZ hopes to capture a portion of this spend domestically while its borders remained closed to foreign visitors.2 The NZD 20.2 million funding for regional tourism organisations (RTOs) also helps regions to leverage the national campaign by enabling them to implement destination management and planning.3

‘Do Something New, New Zealand.’ Tourism New Zealand, 22 May 2020, https:// www.tourismnewzealand.com/news/do-something-new-new-zealand/ 3 ‘$20.2 million funding supports regions to leverage national campaign.’ Tourism New Zealand, 4 Jun 2020, https://www.tourismnewzealand.com/news/202-million-fundingsupports-regions-to-leverage-national-campaign/ 2

14

P O S T C O V I D - 1 9 T O U R I S M C A M PA I G N S O R I N I T I AT I V E S

Australia: Tourism Australia launched an “Aussie Specialist Program” in May to provide free online training to local travel agents in Australia and to update them on destination information and news so that they can encourage local people to explore their own country. Australians spent almost AUD 65 billion on overseas holidays last year and Tourism Australia hopes to capture some of that spend to revive domestic tourism.4 Tourism Australia also launched the “With Love from Aus” campaign last month to inspire locals to travel domestically. Queensland has launched its own tourism campaign, “You’re Good to Go”, aimed at delivering AUD 1 billion in overnight accommodation spend in the Sunshine State in the next four months, and it plans to expand the campaign when interstate travel returns.5 Western Australia has also launched its biggest holiday campaign, worth AUD 2 million - “Wander out Yonder” - to encourage Western Australians to explore the state as their border stays closed to other Australian states and foreigners. A “Tourism Restart Taskforce” has also been established for Australia’s tourism recovery.

4 ‘Tourism Australia launches Aussie Specialist Program to frontline travel sellers in Australia.’ Tourism Australia, 20 May 2020, https://www.tourism.

5 'Garcia, Jocelyn. ‘Campaign launches to kick start Queensland tourism.’ Brisbane Times, 8 June 2020, https://www.brisbanetimes.com.au/national/queensland/ campaign-launches-to-kick-start-queensland-tourism-20200607-p5509h.html

15

P O S T C O V I D - 1 9 T O U R I S M C A M PA I G N S O R I N I T I AT I V E S

16

P O S T C O V I D - 1 9 T O U R I S M C A M PA I G N S O R I N I T I AT I V E S

Thailand: Thailand’s cabinet aims to support

Malaysia:

the economy with its recently approved

planning to restart its international tourism

tourism stimulus worth USD 722 mil. Thai

promotions from September 2020, but will

domestic tourists (medical personnel, health

focus on domestic tourism while border

volunteers and the general public) were

controls are still in place. The NTO will

offered incentives to travel in the country.6

strengthen its “Malaysia Truly Asia” branding

These include subsidies for hotel rooms, meals

internationally and plans to revive joint

and transport. The scheme is expected to be

promotions and tactical campaigns with

rolled out from July to October and some

strategic airline partners and outbound travel

details remain to be worked out.7 The Tourism

operators overseas.11 Starting on June 10,

Authority of Thailand (TAT) has also rolled

interstate travel and reopening of domestic

out a health certification system for hotels

tourism is allowed. Tourism Malaysia has also

and restaurants by setting up the Amazing

been using social media to encourage locals

Thailand Safety and Health Administration

to travel in their own country to boost the local

(SHA). TAT plans to position Thailand as a

economy. The NTO has launched the “Clean

trusted destination for international tourists

and Safe Malaysia” certification campaign

after travel restrictions ease and will launch

for hotels, in an effort to restore tourist

this campaign later in the year, aiming at

confidence. Airlines, transport companies and

young affluent travellers from low-risk places

other operators have also been encouraged to

such as China. Thai Hotels Association (THA)

cooperate and offer joint travel packages.12

Malaysia:

Tourism

Malaysia

is

has also advised all hotels to offer promotions in June and July to attract customers.8 TAT

Indonesia: The Ministry of Tourism in Indonesia

also plans to drive tourism by encouraging (1)

has

Booking in advance, (2) Promoting responsible

campaign together with cleanliness health

tourism, (3) Safety and (4) Technology (Mobile

and safety (CHS) protocols in several provinces

tracking system).9 TAT is also working with the

to

Ministry of Tourism and Sports on a program

Indonesia’s NTO has also prioritised Bali in

to attract high-income leisure travellers to

terms of destination marketing, once border

Phuket, Samui and Phangan. 10

controls are eased for leisure travel.

launched

restore

a

“Thoughtful

confidence

among

Indonesia”

travellers.

6 'Thailand approves $722 mln domestic tourism stimulus as virus hits global travel.’ Reuters, 16 June 2020. https://www.reuters.com/article/health-coronavirus-thailand-tourism/ thailand-approves-722-mln-domestic-tourism-stimulus-as-virus-hits-global-travel-idUSL4N2DT0J5 7 ‘Thailand plans $722 million subsidy to spur domestic travel after virus crisis.’ The New York Times, 16 June 2020. https://www.nytimes.com/reuters/2020/06/16/world/ asia/16reuters-health-coronavirus-thailand-tourism.html 8 ‘Hotels in Thailand advised to offer promotions in June, July to attract customers.’ Travel Guide by the Jakarta Post, 3 June 2020, https://www.thejakartapost.com/ travel/2020/06/03/hotels-in-thailand-advised-to-offer-promotions-in-june-july-to-attract-customers.html 9 'TAT unveils three part strategy for “new normal” tourism recovery’, Tourism Authority of Thailand, 2 June 2020, https://www.tatnews.org/2020/06/tat-unveils-three-part-strategyfor-new-normal-tourism-recovery/ 10 'Jamrisko, Michelle, Thanthong-Knight, Randy and Nguyen Dieu Tu Uyen. ‘Cheap beach holidays target locals with airlines grounded.’ Bloomberg, 4 June 2020, https://www. bloomberg.com/news/articles/2020-06-03/cheap-beach-holidays-target-locals-as-airlines-remain-grounded?srnd=premium-asia&sref=cv5oWtcC 11 'Puvaneswary, S. ‘Malaysia charts course for tourism recovery.’ TTG Asia, 8 April 2020, https://www.ttgasia.com/2020/04/08/malaysia-charts-course-for-tourism-recovery/ 12 'Bethke, Linda. ‘The coronavirus crisis has hit tourism in Malaysia hard.’ Deutsche Welle (DW), 11 May 2020, https://www.dw.com/en/the-coronavirus-crisis-has-hit-tourism-inmalaysia-hard/a-53392776

17

INTENSE COMPETITION AMONG NTOS

Intense competition among NTOs NTOs have always played an important role in attracting foreign visitors, and this is even more important in the post-COVID-19 world, as every country strives to revive their tourism sector. The competition will be more intense than ever, and an NTO’s success could depend on how well the pandemic has been controlled, the easing of border controls, the ability to manage inbound foreign travellers and the effectiveness of their campaigns. With the data available, we evaluated and ranked the NTOs based on the following attributes: 1) Effectiveness of NTO’s Expenditure (by trips) 2) Effectiveness of NTO’s Expenditure (by USD) 3) Average Spend per Tourist (USD) 4) Tourist Arrivals per Population (trips)

1) Effectiveness of NTO’s Expenditure (by trips) This is measured by the number of tourist arrivals per dollar spent by the NTO. International inbound tourists are the number of visitors who travel to a country other than that in which they have their usual residence, for a period not exceeding 12 months.13 Indonesia’s Ministry of Tourism was found to be the most effective of the NTOs studied as it managed to attract more inbound tourists with less tourism budget.

Indonesia tops the list with 60 trips per USD spent by the NTO, followed by Tourism Malaysia, with 4.5 trips per USD spent, and China’s Ministry of Culture and Tourism which achieved 0.4 trips per USD spent by the NTO.

13

18

World Bank

Tourism Malaysia

Ministry of Tourism (Indonesia)

Ministry of Culture & Tourism (China)

INTENSE COMPETITION AMONG NTOS

2) Effectiveness of NTO’s Expenditure (by USD) This is measured by international tourism receipts per dollar spent by the NTO International tourism receipts are expenditures by international inbound visitors, including payments to national carriers for international transport.14

Tourism Malaysia

Ministry of Tourism (Indonesia)

Tourism Australia

Again, Indonesia’s Ministry of Tourism was found to be the most effective as it achieved the highest tourism receipts - USD 60,000 per USD spent by the NTO. Tourism Malaysia and Tourism Australia are ranked 2nd and 3rd, as they achieved USD 3,800 and USD 400 in tourism receipts per USD spent by the NTO respectively.

3) Average Spend per Tourist (USD) This is measured by international tourism receipts per international tourist arrivals

Tourism Australia Tourism New Zealand

Tourist spending is usually correlated to length-of-stay and the

Macao Government Tourism Office

type of activities available in destinations. The bulk is usually spent on accommodation and transport.

Tourists in Australia spent the most, at USD 5,100 per trip, while tourists in New Zealand and Macao spent USD 3,000 and USD 2,200 per trip, respectively.

4) Tourist Arrivals per Population (trips) This is measured in terms of international tourist arrivals versus the population in the destination Essentially, it is a measure of how many tourists there are compared to the number of residents in the country. When the ratio is higher than 12, it suggests that there could be more tourists than locals in any given month. This serves as an alternate view on

Hong Kong Tourism Board

Macao Government Tourism Office

Singapore Tourism Board

the importance and relevance of tourism for the destination (in addition to measuring it via tourism as a proportion of GDP).

Macao attracted the greatest number of tourists, at 28 international arrivals per local, followed by Hong Kong and Singapore at 4 and 3 international arrivals per local.

14

World Bank

19

INTENSE COMPETITION AMONG NTOS

We further expanded the scope of attributes

rolled out one of the largest stimulus packages

and created an overall ranking for the NTOs

and is aggressively driving domestic tourism,

in Table 2. They were ranked according to

even with strict interstate border restrictions in

attributes such as the country’s propensity

place. The country has also been very successful

to open its borders, measured by factors

in handling the coronavirus outbreak. India’s

such as tourism as a percentage of GDP, the

Ministry of Tourism is ranked last, as COVID-19

proportion of international and leisure tourism,

is still widespread in the country. In addition,

NTO budgets and government stimulus for

the Indian government has still not allocated

the tourism sector, and the country’s ability to

any budget for its tourism sector, indicating a

manage the coronavirus outbreak.

lack of support.

Office,

There is no doubt that numerous challenges

Tourism

lie ahead for the tourism industry in APAC,

Australia and Tourism New Zealand top the

including travel’s so-called “new normal”

list. NTOs such as Hong Kong Tourism Board

practices and protocols. Travellers’ mindsets

may find it difficult to attract foreign visitors

have changed since the onset of the pandemic

with its ongoing political situation. We noted

and NTOs may need to re-evaluate their

that recent trade tensions between Australia

destination marketing activities to reflect this

and China may affect inbound Chinese visitors

new mood. They could also work more closely

to Australia and this could undermine Tourism

with stakeholders in the tourism industry to

Australia’s effectiveness, given that China is its

work out a holistic plan for the restart of leisure

largest source market. However, Australia has

travel.

The

Macao

Tourism

20

Government

Authority

of

Tourism

Thailand,

INTENSE COMPETITION AMONG NTOS

Table 2 – Ranking of NTOs % of International tourism spending

% of Leisure Tourism Spending

Tourism as a % of GDP

Stimulus for tourism sector (USD mil)

Tourist arrivals per dollar spent by the NTO (trips)

Tourism receipt per dollar spent by the NTO (USD)

Average spend per tourist (USD)

Number of tourists’ arrivals per local population (trips)

Ranking

Country

NTO

1

Macao

Macao Government Tourism Office

97%

96%

72%

5

0.12

259

2,182

27.9

2

Thailand

Tourism Authority of Thailand

80%

88%

22%

722

0.17

298

1,709

0.6

3

Australia

Tourism Australia

23%

83%

11%

660

0.08

400

5,119

0.4

4

New Zealand

Tourism New Zealand

40%

83%

18%

252

0.05

150

2,974

0.7

5

Malaysia

Tourism Malaysia

52%

54%

13%

NA

4.49

3,787

843

0.8

6

Indonesia

Ministry of Tourism (Indonesia)

41%

75%

6%

7

60.18

59,383

987

0.1

7

Singapore

Singapore Tourism Board

68%

56%

4%

64

0.10

133

1,391

2.6

8

Korea, Rep.

Korea Tourism Organisation

26%

80%

3%

194

0.02

30

1,294

0.3

9

Japan

Japan National Tourism Organisation

16%

68%

7%

33

0.05

68

1,452

0.2

10

China

Ministry of Culture and Tourism

12%

81%

11%

NA

0.40

258

642

0.0

11

Hong Kong

Hong Kong Tourism Board

77%

83%

17%

91

0.20

280

1,431

3.9

12

Philippines

Tourism Promotions Board (Philippines)

14%

66%

25%

0.2

0.21

287

1,357

0.1

131

Vietnam

Vietnam National Administration of Tourism

51%

90%

9%

NA

NA

NA

650

0.2

14

Cambodia

Ministry of Tourism of Cambodia

75%

71%

33%

NA

NA

NA

779

0.4

15

India

Ministry of Tourism (India)

13%

95%

9%

NA

0.06

102

1,673

0.0

Source: World Bank, and other various sources compiled by WebBeds (NA: Specific stimulus amount for tourism sector is not available)

21

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