COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

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COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

Transcript of COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

Page 1: COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

Page 2: COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

2019: ASIA-PACIFIC TOURISM PERFORMANCE

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Growth in International Tourist Arrivals in Asia-Pacific and the World (%)

Asia and the Pacific’s share of global international tourist arrivals (%)

International tourist arrivals and tourism receipts in Asia-Pacific

In 2019, international arrivals in Asia and the Pacific increased in line with the world average of 4%

• Strongest growth in international arrivals since 2010• 2nd most visited region in the world after Europe

SOURCE: UNWTO/GTERC Asia Tourism Trends 2020

-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

Page 3: COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

2020: ASIA-PACIFIC TOURISM PERFORMANCE

3SOURCE: IATA Air Passenger Market Analysis

International Tourist Arrivals (% change) International RPK growth, yearly

2 0 2 0 : T H E Y E A R TO U R I S M C A M E TO A S TA N D S T I L L

All world regions severely impacted; Asia and the Pacific first region to suffer and worst hit

• Largest decrease in international arrivals (-84%)• Highest level of travel restrictions currently in place

• Largest decline of ~95% in international air traffic measured in revenue passenger kilometers (RPKs)

SOURCE: UNWTO Barometer, January 2021

-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

Page 4: COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

Tourism industry contributed 15.9% to GDP

46.2% 18.0% 12.3%(2018: 46.5%) (2018: 17.2%) (2018: 12.6%)

Retail Trade Food & beverage Country-specific tourism (services)

Share of main contributors:

SOURCE: Tourism Satellite Account (TSA) 2019

Inbound and Domestic Tourism Expenditure

42.1% 16.7% 15.9%(2018: 42.0%) (2018: 16.7%) (2018: 15.5%)

Shopping Automotive fuel Food & beverage

Domestic contribution to internal tourism consumption increased to 50.9%

Share of main contributors:

55.2% 55.1%

53.8%

51.4%

49.1%

44.8% 44.9%

46.2%

48.6%

50.9%

2015 2016 2017 2018 2019

Inbound Tourism Domestic Tourism

3.6 million persons engaged in tourism industry and contributed 23.6% to total employment

1 out of 4

Inbound Tourist Arrivals

2019: MALAYSIA OVERVIEW OF TOURISM PERFORMANCE

4SOURCE: IATA Air Passenger Market AnalysisSOURCE: UNWTO Barometer, January 2021

Presented during ITTP Covid-19 Webinar: "Establishing COVID-19 Impact to Travel and Tourism Industries" on 24th April 2021

-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

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Source: MOTAC & TM

INBOUND TOURISTSJAN-DIS 2019/2020

DOMESTIC VISITORSJAN – DIS 2019/2020*

20.1

4.3

86.1

12.7

- 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

-

3.0

6.0

9.0

12.0

15.0

18.0

21.0

2019 2020

Arrivals (Mil) Expenditure (RM Bil)

103.2

51.6239.1

129.5

-

10.0

20.0

30.0

40.0

50.0

-

10.0

20.0

30.0

40.0

50.0

2019 2020

Arrivals (Mil) Expenditure (RM Bil)

Arrivals: -45.8%Expenditure: -50.0%

Arrivals: -83.4%Expenditure: -85.3%

(*Est.)

FOOD & BEVERAGE

Estimated

Loss

> US$ 24 bil.

(RM100 bil.)

ACCOMMODATION

SHOPPING/ COLLECTION OF TICKETS

ARTS & CULTURE ACTIVITIES

TOURSIM ACTIVITIES

MEETINGS, INCENTIVES, CONFERENCES &

EXHIBITIONS (MICE)

LOSS OF JOBS/ ASSIGNMENTS

ORGANIZED TOURS

Source: MAH, MAHO, MyBHA, MITA, MICA, BECM, MAB, AirAsia, Malindo Air, MTGC & TM

TRANSPORTATION▪ Local transport▪ Airfares

2020: IMPACT OF COVID–19 ON MALAYSIA’S TOURISM INDUSTRY

5-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

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TOURISM RECOVERY PLANS H O R T T E R M M E A S U R E S

SA1: BOOST

DOMESTIC

TOURISM

▪ Collaboration with

tourism industry,

airlines &

government agencies

to offer vouchers,

rebates, incentives &

special packages

SA 2: EMBRACE

DIGITALISATION

▪ Safe, seamless &

touchless travel journey

▪ Promotional &

marketing through

online platform

▪ Big data framework for

improved accuracy of

tourism data

▪ Live streaming of

tourism, arts & cultural

events & performances

SA 3: EASE OF

REGULATIONS

▪ Waiver of license

fees

▪ Simplify the

regulations

▪ Discount for

compound issued

SA 4:

SUSTAINABILITY &

RESPONSIBLE

TOURISM

▪ Conservation &

restoration during

downtime

▪ DMOs to consider

carrying capacity

-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

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SA 5: RESTORE

CONFIDENCE TO TRAVEL

▪ Enhance the quality of

tourism & cultural

products & services by

adopting new normal

SOPs – Health, Safety &

Cleanliness

▪ Consistent engagement

with industry players

SA 6: SMART

PARTNERSHIPS

▪ Public-private partnership

▪ Collaboration in

reinventing products

▪ Co-organising tourism,

arts & culture

programs/events

SA 7: RESKILLING/

UPSKILLING HUMAN

CAPITAL

▪ Domestic Tourism Vibes

– online courses for tour

guides

▪ Online courses on e-

commerce

TOURISM RECOVERY PLANS H O R T T E R M M E A S U R E S

-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

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NATIONAL TOURISM POLICY (2020-2030)L O N G T E R M S T R AT E G I C D I R E C T I O N

8-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

Page 9: COVID-19 IMPACT TO TRAVEL AND TOURISM INDUSTRIES

Seizing recovery potential & evolution of demand –

varies across country destinations according to source

market composition for domestic & short-haul markets

Improving evidence base for agile strategies –

information gathering, research & data analysis

Striking a balance between support &

competitiveness – preserving business

dynamics & allowing exit

SOURCE: APEC, IMF, OECD, UNWTO

Addressing sustainability along the

entire tourism value chain – improving

long-term resilience to future shocks

MOVING FORWARD

9-COVID19 Webinar Series: "Establishing Health Certificate For Travelling Within ASEAN Countries" on 24th April 2021 Presented during ASEAN - ITTP

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THANK YOUTHANK YOU“Tourism Preserves, Conserves & Protects

Culture, Heritage & Mother Nature”