Revive the Economy and Resume Travel in Asia and the Pacific

By Patrick L.Osewe & Nansubuga Nagadya Isdahl

The coronavirus （COVID-19） pandemic severely disrupted travel and tourism， and recovery is now expected to be slower than previously anticipated. Reviving the sector requires collaboration and coordinated action across the entire travel and tourism ecosystem.

Globally， the pandemic brought extraordinary losses around the world—more than half a million lives claimed， millions unemployed， and hundreds of millions more at risk of unemployment and soaring poverty.

Travel and tourism are tightly interconnected with economic well-being in Asia and the Pacific， accounting for as much as 50% of the gross domestic product （GDP） of some countries.

However， in the pandemics wake， the travel and tourism industry has suffered. According to the World Tourism Organization （UNWTO）， at the height of the crisis， every country worldwide imposed at least some travel restrictions— a historic first. Since the outbreak， air travel in Asia and the Pacific has fallen sharply and？many airports， hotels， resorts， and travel destinations remained closed. Travel-related jobs and revenue losses in the region have been staggering.

As the outbreak continues to claim lives and grow in many parts of the world—with health experts warning of additional waves—the industry faces an uphill battle. As borders reopen， countries in the Asia and Pacific region seek guidance for restarting and supporting the sector， with a greater focus on health and safety.

Impact of COVID-19 on travel and tourism in Asia and the Pacific

The COVID-19-induced paralysis of the tourism sector is affecting the livelihoods of millions. The Asian Development Outlook 2020 reported that tourism-driven economies—including the Cook Islands， Fiji， Palau， Samoa， and Vanuatu—would be the hardest hit by the COVID-19 pandemic. Asia and the Pacific stands to lose approximately 69 million jobs and USD 1.1 trillion in GDP—more than any other region in the world.

Airlines， hotels， and tour operators suffer from a fall in traveler demand， cancellations， and a drop in future bookings. Many airlines in the region （e.g.， in India， Sri Lanka， and Thailand） are in survival mode and will see large revenue drops even as restrictions are lifted.

The International Air Transport Association （IATA） highlighted that the air transport industry in Asia and the Pacific is expected to register losses totaling USD 29 billion in 2020， the largest of all the regions. Hotels are also in crisis and have experienced sharp declines in occupancy rates， up to 60% in some countries.

Micro， small and medium enterprises employ and provide services to millions of people and account for up to 50% of employment in travel and tourism across Asia and the Pacific.A significant number of workers in informal jobs have experienced a loss of livelihood， disruption to education and health services， and food scarcity. Informal workers—often the poorest and most vulnerable in society—and those employed by small and medium businesses are particularly vulnerable to COVID-19 because of factors including the lack of social protection， inability to work remotely， lack of access to health care， and not having alternative sources of income or income replacement.

To address the impact of COVID-19 and the millions of livelihoods still under threat， efforts to shape a collective response have been undertaken and are highlighted as follows.

Building a collective response to the crisis

The travel and tourism industry intersects with the interests of multiple sectors and stakeholders. Similarly， measures to accelerate recovery in travel and tourism in the region have required a comprehensive approach—ranging from fiscal and social protection support to the development of global protocols to ensure the health and safety of both travelers and the workforce.

Governments within the region responded swiftly to the crisis through wide-ranging efforts， including introducing fiscal stimulus and monetary packages with tourism-specific measures （e.g.， offering tax relief）， promoting job retention， and preparing tourism recovery plans.

Countries such as the Lao Peoples Democratic Republic， Malaysia， Palau， and the Republic of Korea have deferred tax payments for small travel and tourism businesses， while Singapore has reduced airport fees. Other government interventions include Fijis new hotel investment incentive package， Cambodias refresher training and reskilling for retrenched workers， and Bangladeshs formation of a crisis management committee for the tourism industry.

COVID-19 response package to respond to requests from its developing member countries for guidance about how to restart travel.

The ADB convened a panel of leading experts from academia， government， global health organizations， travel and tourism， and technology to craft a set of post-COVID-19 pandemic policy recommendations to help the travel and tourism industry in the Asia and Pacific region recover more quickly and safely.

Task Force recently published its“Take-Off framework” with recommendations to guide the international air transport system in its recovery and build air travel confidence.

The UNWTO has also produced a global action plan focused on key priorities to mitigate the socio-economic impact of COVID-19 and support jobs and economies through tourism. The plan includes 23 actionable recommendations， covering three broad areas： （i） managing the crisis and mitigating its impact， （ii） providing stimulus and accelerating recovery， and（iii） preparing for the future. The UNWTO also released Global Guidelines to Restart Tourism， an action plan focused on priorities for industry recovery.

Airlines， airports， hotels， and airplane manufacturers have taken measures to restore traveler confidence and stimulate travel demand， including the development and application of： （i） new health protocols for safe travel， （ii） information and digital contract tracing apps for visitors， （iii） enhanced cleaning and sanitation procedures， and （iv） new technologies （e.g.， air filtration systems）.

In addition， IATA and Airports Council International （ACI） developed？a joint approach for restarting the aviation industry that includes measures spanning a travelers entire journey to minimize the risk of transmission of COVID-19， while the World Travel and Tourism Council published a set of Safe Travels protocols to harmonize private sector standards across different industries， including aviation， hospitality， retail， tour operation， car rental， and insurance.

Key stakeholders from across the travel and tourism ecosystem—from government to the private sector—have taken vital steps to restart the industry and facilitate its recovery.

Through ongoing dialogue focusing on multisectoral collaboration， targeted supportive actions should continue to evolve as the COVID-19 pandemic unfolds. This might include the development of programs to support industry in adopting and adapting new protocols or investments in advanced technologies and/or digital solutions designed to improve efficiency and safety. While some of the recommendations may be phased out once the pandemic subsides， others may improve efficiencies and resilience in the industry and lead to sustainable change.

With unprecedented and evolving health- and travel-related implications， the long-term impact of the COVID-19 pandemic on the industry remains. However， the ADB is firmly committed to helping governments speed up COVID-19 response and recovery and is currently working with countries in Asia and the Pacific to implement the recommendations identified in this report to effectively allow travel and tourism to rebound.