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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