THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY
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THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY
THE IMPACT
OF COVID-19
ON THE
SOUTHEAST
ASIAN WEEKLY SUMMARY
TOURISM 7 JUNE 2020
INDUSTRY
Hannah Pearson
hannah@pearanderson.com
INTRODUCTION
As a market highly dependent on both Chinese outbound tourism and the Chinese
economy, Southeast Asia is a region which was heavily affected by COVID-19 even
in the early months of 2020.
With the declaration of a pandemic, as well as the closing of borders and
imposition of lockdowns, Southeast Asia’s tourism economy will continue to be
impacted for the foreseeable future.
View all this information online on our frequently updated dashboard at
https://www.pearanderson.com/coronavirus/.
Each week, we round up some of the key news stories for each country within
ASEAN and send it straight to your inbox on Sunday evening. You can sign up to
receive our email at https://insights.pearanderson.com/sea-covid-summary.THE IMPACT OF COVID-19 ON THE SOUTHEAST ASIAN TOURISM INDUSTRY
IMPACT SUMMARY
Week ending Sunday 7th June 2020
INBOUND TRAVEL OUTBOUND TRAVEL
COUNTRY LOCKDOWN RESTRICTIONS RESTRICTIONS CASES DEATHS
Cambodia Partial Visa restrictions Discouraged 125 0
Indonesia Partial Not permitted Flight restriction 31,186 1,851
Laos Partial Not permitted Discouraged 19 0
Malaysia Partial Not permitted Not permitted 8,322 117
Myanmar Partial Not permitted Flight restriction 240 6
Philippines Partial Not permitted Not permitted 21,895 1,003
Singapore Partial Visa restrictions Discouraged 37,910 25
Thailand Partial Not permitted Flight restriction 3,112 58
Vietnam None Not permitted Not permitted 329 0
Data accurate as of 20:53 (UTC+8) on 07 Jun 2020
Partial lockdown = closure of schools or some non-essential services (e.g. entertainment), recommendation to work from home
Lockdown = closure of all non-essential businesses, restricted movement
COVID-19 case & death statuses from John Hopkins Coronavirus Resource Center
May see a loss in revenue from tourism of around $3
CAMBODIA billion USD in 2020.
On Page 4 • Ticket sales in May at Angkor Wat were down • More than 100 hotels and guesthouses in Siem
98.8% YoY Reap permanently ceased operations
Jakarta started easing lockdown restrictions on 5 Jun; 6
INDONESIA Jun recorded highest daily cases at 993.
On Page 11 • Indonesia’s April foreign arrivals dropped by • Lion Air will ground all international and
87.44% YoY domestic flights on 5 Jun until further notice
Lockdown restrictions continue to be lifted,
LAOS international borders still remain closed.
On Page 23 • Myanmar government will work together with • Domestic travel is permitted in Laos
Cambodia, Laos and Vietnam for regional tourism
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Lockdown eased further from 10 Jun, domestic tourism
MALAYSIA to be permitted.
On Page 25 • AirAsia and Malindo both suffer, with job cuts • The government released a new RM35 billion
and voluntary redundancies stimulus package, including help for tourism
Domestic tourism difficult due to confusing interstate
MYANMAR requirements; incoming flight ban extended to 15 Jun.
On Page 37 • Visitors to Myanmar in Jan-Apr dropped by 44% • Bailout considered for Myanmar National Airlines
YoY
Domestic airlines faced “chaos” trying to restart flights
PHILIPPINES with conflicts between local and central government.
On Page 41 • Tourism arrivals in Jan-May dropped 62.2%, and • DOT to concentrate on high-value tourists
revenue by 60.6%
Phase 1 of Circuit Breaker easing began 2 Jun;
SINGAPORE Singapore Airlines group to reopen more routes.
On Page 51 • April’s arrival numbers to Singapore hit just 748, • Further details regarding the “fast lane” between
a drop of almost 100% YoY Singapore and China have been released
Phase 3 of lockdown began 1 Jun, domestic tourism
THAILAND starting to pick up.
On Page 61 • Tourism Authority of Thailand (TAT) will focus on • Thai consumer confidence in May rose for the
converting half of 12 million Thai outbound first time in over a year
travellers into domestic ones in 2020
Vietnam continues its domestic tourism recovery.
VIETNAM
On Page 78 • Vietnam’s May international arrivals were 98.3% • Vietnamese air carriers have nearly resumed all
down YoY domestic routes
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CAMBODIA
Tourism industry may lose up to $3 billion USD
TRAVEL All visa exemptions, visas on arrival and e-visas are suspended. Travellers must
RESTRICTIONS
have valid medical certificates issued 72hrs prior to travel, be tested for COVID-19
upon arrival and undertake a 14-day self-isolation with a re-test on the 14th day
(IATA).
LOCKDOWN Schools closed nationwide until further notice, while all karaoke parlours, casinos,
STATUS
spas and massage parlours and cinemas are closed. Large religious gatherings are
banned.
Flight searches and booking volume for travel to Cambodia
Future flight search for travel to Cambodia
Source: Sojern COVID-19 dashboard
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INBOUND
NEW 5 Jun: Cambodia may see a loss in revenue from tourism of around $3 billion USD
in 2020, according to the Tourism Minister. He has also said that the country may
see foreign visitors decline by 70%, and domestic visitors by 50%. Its Jan-Apr
foreign visitors has fallen by 52% YoY. 2,956 tourism businesses have closed,
affecting 45,405 people unemployed >>
NEW 5 Jun: The Ministry of Tourism has issued safety measures that tourism businesses
must take, with 72 points (32 mandatory, 40 optional). Businesses that satisfy
these criteria will be given a “Safe Tourism Accommodation” label, but others that
have not implemented the measures correctly will be suspended immediately >>
NEW 5 Jun: The Myanmar Deputy Minister of Hotels and Tourism said that the Myanmar
government will work together with Cambodia, Laos and Vietnam to introduce
regional tourism, with the 4 countries signing an agreement to ease border access
between them, although specific details have not yet been released >>
NEW 5 Jun: The president of the Cambodia Hotel Association has said that many hotels
will relaunch operations shortly, as they hear that international flights will resume
by mid-June >>
NEW 4 Jun: The government is looking at developing Kep beach to attract more tourists
>>
NEW 4 Jun: Cambodia and Timor-Leste have agreed to promote tourism cooperation,
and post-COVID will look into establishing direct flight links >>
NEW 3 Jun: The World Bank has warned that Cambodia could experience a GDP
contraction of between 1-2.9% in 2020, its first negative growth since 1994. This
could risk 1.76 million jobs >>
NEW 3 Jun: More than 100 hotels and guesthouses in Siem Reap permanently ceased
operations, and 230 have indefinite suspensions, the Council of Ministers
announced. This has affected around 8,000 tourism workers >>
NEW 2 Jun: Angkor Wat received just 386,093 foreign visitors from Jan-May, down by
64% YoY. May saw 1,776 foreigners visit, with ticket revenue at just $72,037 USD,
a decline of 98.8% >>
29 May: The president of the Cambodian chapter of PATA has said that local
tourists will not be sustainable for Cambodia in the long-term >>
29 May: The Cambodian Association of Travel Agents thinks that tourism levels
will only normalise in 3-4 years, and that tourism businesses should be using the
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time to improve services and products. They also would like to cooperate with
government institutes to create new products and packages >>
29 May: The EU has pledged its support for the Cambodian tourism industry >>
28 May: Airlines in Cambodia have taken a 95% hit on revenue, with 2,000 workers
from the airline industry forced to take no pay leave >>
28 May: The Cambodia Hotel Association (CHA) has said that the hotel industry is
struggling to get financial assistance. It says its members need electricity tariff
cuts both during and after COVID-19, and that the SME Co-Financing Scheme of
$100 million is not applicable to hotels >>
28 May: 4-24 May saw 398,099 tourists visiting sites around Cambodia. 7,177 of
those were foreign tourists >>
26 May: A 4th round of economic stimulus has been rolled out, with key measures
including:
• Registered hotels, guesthouses, restaurants and tour agencies in Phnom Penh,
Siem Reap, Preah Sihanouk, Kep, Kampot, Bavet and Poipet to be exempted
from all taxes in June & July
• Tourism businesses also permitted to not pay into the National Social Security
Fund during business suspension
• Tourism businesses exempted from renewal fees for tourism licenses in 2021
• Airline companies to benefit from exemption of minimum tax payment until
July
• A “Credit Guarantee Fund” of $200 million USD to ease working capital issues
• Social assistance programme with cash transfers to poor families
• Withholding tax rates to be reduced
• Additional $300 million USD to boost key sectors (no details yet) >>
26 May: A stricter quarantine will now be imposed for all pax flying into Cambodia
after 2 COVID-19 positive cases arrived into Cambodia >>
26 May: The APSARA National Authority will open its 3 museums in June >>
25 May: The construction of a 5* hotel with 700 rooms in Sihanoukville has been
approved >>
24 May: Sihanoukville is developing a new recreational beach for domestic and
international visitors >>
23 May: The ban on travellers entering Cambodia from Iran, Italy, Germany, Spain,
France and the USA has been lifted. New entry requirements for all travellers
include a COVID-19 negative health certificate within the last 72 hours of
departure, a COVID-19 test on arrival and proof of medical insurance of a value of
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at least $50k USD. If one passenger on a flight tests positive, all passengers on the
flight will need to be quarantined for 14 days in a government facility. Otherwise,
travellers will be allowed to self-isolate at home or in a hotel for 2 weeks, and
must be retested at the end of the period >>
22 May: 2,865 tourism businesses have either been suspended or closed. Mar ’20
still saw 190,000 Cambodian and international tourists visiting resorts and tourism
sites in Cambodia >>
22 May: More than 250,000 tourists visited popular destinations throughout
Cambodia from 4-17 May, an increase of 50% vs the previous fortnight, with eco
spots particularly popular >>
21 May: Details have still yet to be given on how the fiscal stimulus plans will
work, including for the SME fund of $500-600 million of low-interest loans >>
20 May: Museums will be reopened in June, the government announced >>
19 May: Cambodia would welcome any US airline who wishes to start a route to
Cambodia, either for cargo or passengers >>
18 May: The Tourism Ministry expects the industry to jump back post pandemic,
but that local and international tourists will be more concerned by hygiene, so
accommodation operators should upgrade their services and facilities >>
18 May: The government is seeking input from tourism industry players as to how
they are affected and the measures needed to support them. The President of the
Cambodia Association of Travel Agents said that as many as 99% of tourism
businesses are closed. She estimates that 630,000 people in the tourism sector
have been affected >>
17 May: The Tourism Minister is optimistic that Chinese tourists will support
Cambodia’s tourism growth post epidemic, due to the mutual trust between the 2
countries. It will continue to promote its “China Ready” strategy >>
15 May: The Tourism Ministry has said that the number of tourist arrivals at Siem
Reap Intl Airport in April “has plummeted even more” >>
13 May: Schools may open only in November >>
12 May: The Ministry of Tourism urged all accommodation providers to improve
their service quality and focus on hygiene. As of 17 Apr, the department said that
46,369 tourism workers have been affected, not including the informal workers.
282 hotels have also been affected and 405 guesthouses closed. 100 tour guides
have also suspended their licenses >>
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12 May: The construction of the new airport in Siem Reap is continuing as planned,
in spite of COVID-19, and is set to complete in 2023, with a long-term aim of
being able to handle 20 million pax annually >>
11 May: Cambodia Angkor Air believe that air travel will take at least 12-15
months to recover, but that it will continue to operate flights as it is the national
flag carrier >>
05 May: Cambodia Angkor Air, China Air and Eva Air all reopened flights to Phnom
Penh at the start of this month. Other airlines, such as Cathay Pacific, Thai Airways
and Emirates are planning to reinstate routes in Jun and Jul >>
05 May: New guidelines will be issued by the Ministry of Tourism for health
standards in tourism-related businesses. These guidelines have been praised by
the Cambodia Association of Travel Agents, saying that they will help domestic
tourism >>
04 May: Foreign arrivals to Cambodia in Q1 dropped by 38% YoY, with just 1.15
million arrivals >>
04 May: Chinese tourists will be a major market for Cambodia that will lead
international arrivals according to the Ministry of Tourism. They predict that within
4-5 months, the number of foreign visitors will increase x2 or even x3 >>
02 May: Angkor Wat has seen a drop of 99.5% in April, with just 654 entrance
passes bought >>
30 Apr: The State of Emergency legislation, which is designed to help counter
COVID-19 amongst other issues, was signed into law on 29 Apr >>
29 Apr: In the 2nd week of March, >190,000 Cambodian and expat travellers
continued to visit resorts and tourist attractions in Cambodia >>
24 Apr: IATA’s revised estimates show that passenger demand could fall by 45% in
2020, with a loss of $0.87 billion USD in revenue and 770,000 jobs >>
09 Apr: The President of the Cambodia Association of Travel Agents has stated that
she expects it to take at least 6 months for people to start taking holidays, and the
long-haul market could be even longer. 30,000 in the tourism sector are now
unemployed; 10,000 of whom worked at tour operators, 10,000 at hotels, 6,000
were tour guides and others worked in restaurants >>
09 Apr: Khmer New Year holidays cancelled. Interprovincial travel has been
banned until 16 Apr, covering the entire Khmer New Year period >>
06 Apr: 10 major business events that were to take place in Cambodia from Mar to
Aug this year have been postponed or cancelled >>
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02 Apr: Cambodia could lose between $345 - $856 million USD in tourism revenue
according to the Asian Development Bank >>
31 Mar: The Cambodian government has issued fiscal measures to support the
tourism industry, including:
• Minimum 3-month 10% tax exemption for aviation sector (until May), plus
debt repayment plan can be paid in installments following suspension of
operations
• Tourism operators such as hotels, restaurants and aviation agencies in
Phnom Penh, Siem Reap, Sihanoukville, Kep and Kampot are exempted
from monthly tax
• For employees: 20% of salary to be sponsored by the government, but must
attend a 1 - 2 weeks short skills course organised by the Ministry of
Tourism >>
29 Mar: Cambodia will no longer issue tourist and entry visas for one month
starting on 30 Mar. Travellers with valid visas only allowed to enter with proof of
negative test >>
19 Mar: The number of tourists to Cambodia in Jan & Feb declined by 30% vs. last
year >>
18 Mar: Projected 250,000 workers could lose their jobs in a worst-case scenario of
the Asian Development Bank >>
25 Feb: Hotels and guesthouses in Siem Reap province to get a 4-month tax
exemption, and Angkor Wat’s admission prices are to be reduced. >>
OUTBOUND
29 May: AirAsia are considering resuming routes from Kuala Lumpur to Cambodia
(Phnom Penh) >>
28 May: The Ministry of Tourism has called on Australia to work on direct flights
between the 2 countries – currently transit is required via Singapore, Bangok or
Hong Kong. The Ministry also hope that travellers will visit Cambodia in return for
allowing the cruise ship MS Westerdam to dock in Sihanoukville >>
28 May: Around 25 international flights are arriving into Cambodia every week,
with the majority from China, South Korea and the Philippines. Phnom Penh in
May continued air links to Beijing, Shanghai, Guangzhou, Xiamen, Nanjing,
Chengdu, Seoul and Taipei. Preah Sihanouk also has international flights to
Chengdu, Guangzhou and Kunming. Siem Reap did not have any international
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routes. As of 18 May, Phnom Penh saw a 96.7% drop in flights, 100% in Siem Reap
and 98.4% in Preah Sihanouk airport. Whilst airlines welcome the tax break in June
and July, they see it as too little, too late >>
21 May: Asiana Airlines plans to increase the number of flights from Seoul to
Phnom Penh >>
04 May: Outbound Cambodian tourists decreased 32% YoY to 308,350 >>
30 Apr: Cambodia Airports revealed that the number of pax flying in/ out of the
country has dropped by 96% daily, with just 6 or 7 mainly domestic flights. From
1-27 Apr, the daily average was just 524 pax, vs. 31,410 YoY >>
16 Apr: International traffic in/ out of Cambodia has dropped by over 90%, with
limited flights from Korea, Japan and China remaining >>
08 Apr: Cambodia Airways is still committed to expanding post COVID-19 >>
19 Mar: Cambodia Airways has reduced 40% of flights across Asia >>
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INDONESIA
Forecasted losses of $10 billion USD
TRAVEL Passengers are not allowed to transit or enter Indonesia (IATA). Non-essential
RESTRICTIONS
outbound travel advised to be restricted. Domestic flights permitted with social
distancing and certification.
LOCKDOWN Jakarta's large-scale social restrictions (PSBB) started to be eased from 5-30 Jun,
STATUS
with some economic activities allowed to restart. Offices to reopen 8 Jun,
shopping malls from 15 Jun, places of worship to be opened at 50% capacity from
5 Jun. Schools remain closed, religious and socio-cultural events are restricted.
West Java’s Bogor, Depok and Bekasi under PSBB until 2 Jul, Surabaya until 8 Jun.
INDONESIA
100 80.00 82.00 85.00 83.00 81.00 87.00
78.00 75.00 78.00 77.00 77.00
72.00 73.00
80
60
63.00
40 56.00
45.00 48.00 48.00 48.00 47.00 46.00 51.00 47.00
20 35.00 38.00
0
% of people in each country who say they are "very" or "somewhat" scared that they will
contract COVID-19
% of people in each country who say they are: avoiding physical contact with tourists
Source: YouGOV
INBOUND
INDONESIA TOURISM ARRIVALS
% CHANGE YOY
5.90%
JAN-20 FEB-20 MAR-20 APR-20
-28.90%
-64.10%
-87.40%
Source: Statistics Indonesia
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Flight searches and booking volume for travel to Indonesia
Future flight search for travel to Indonesia
Source: Sojern COVID-19 dashboard
NEW 5 Jun: Despite the closures of beaches in Bali, people have still been visiting the
beaches in Canggu after the Badung head of Tourism Agency I Made Badra told the
media that beaches were open to foreign surfers who cited mental health
concerns, sparking a controversy amongst locals over discriminatory rules >>
NEW 4 Jun: The government projects that tourism destinations can be gradually
reopened, with the soonest domestic tourism restarting at the end of Jul or Aug,
and international tourists in Sep, depending on how the situation evolves >>
NEW 4 Jun: Jakarta will start to transition from its large scale social distancing (PSBB),
and open up more economic activities. Places of worship to open at 50% capacity
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from 5 Jun, offices from 8 Jun and shopping malls from 15 Jun. The transition
period does not yet have a final end date >>
NEW 4 Jun: Papua Province will reopen its airport for flights between Jakarta and
Jayapura from 10 Jun >>
NEW 4 Jun: Indonesia unveiled a stimulus package of $47.6 billion USD, with an aim to
strengthen the healthcare system, support businesses from bankruptcy and boost
consumer consumption >>
NEW 3 Jun: Bali will not yet reopen tourist sites, reaffirmed the Bali governor >>
NEW 3 Jun: Bali’s governor will look at boosting other areas of Bali’s economy, to reduce
dependence on tourism, such as agriculture >>
NEW 3 Jun: Indonesia’s April foreign arrivals dropped by 87.44% YoY, with just 160,000
(more than 50% from Timor Leste), and just 755 travellers arriving by air. Numbers
Jan-Apr are down 45% YoY >>
NEW 2 Jun: A consumer study by McKinsey has shown that Indonesians’ consumer
optimism is at the lowest level since March (study on 20-22 May), with 65%
cutting back on spending. Post COVID-19, net intent for domestic travel is -26%,
whilst international travel is -42% >>
NEW 2 Jun: Citilink resumed domestic flights on 1 Jun, with 104 flights to 21 cities >>
NEW 2 Jun: Indonesian schools may not reopen until Dec, although the school year will
begin again in Jul >>
NEW 2 Jun: Indonesian tour agents are encouraging attractions to offer discounts and
special deals to stimulate domestic demand. The Association of Indonesian Tours
and Travel Agencies expect the government to subsidise at least 50% of state-
owned attractions such as Borobudur >>
NEW 1 Jun: Domestic flights at all airports managed by Angkasa Pura II in Indonesia
have been restricted until 7 Jun, with pax needing to comply to a number of
regulations to be able to fly >> (Bahasa)
NEW 1 Jun: 102 areas with 0 COVID-19 cases have been allowed to start “new normal”
measures >>
NEW 31 May: North Sulawesi’s March arrivals saw a drop of 64.11% YoY >>
NEW 31 May: New protocols for the tourism industry for the “new normal” will be
created by the government and focus on health and hygiene >>
NEW 29 May: Indonesia will focus on infrastructure programmes including 5 new
airports to rescue the Indonesian economy >>
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29 May: Bali will be focused on restarting the local economy first before reopening
to tourism, the Bali Governor said >>
28 May: Garuda Indonesia passengers travelling to Jakarta must present their
entry/ exit permits for Jakarta before boarding >>
28 May: Jokowi has said that the tourism industry must prepare for the “new
normal” with a transformation following health protocols, but there should be no
rush to reopen. He also thinks that solo, wellness, virtual travel and staycations
will all become new trends. The Tourism & Creative Ministry has also been tasked
with preparing new domestic tourism promotions >>
28 May: Bali’s Indonesian Hotel & Restaurant Association chapter welcomes the
idea of a travel bubble with Australia and Bali. However, Indonesia has not begun
any formal talks with Australia on this possibility >>
28 May: The country’s National Development planning minister has said that Bali is
expected to reopen business in July, due to a low fatality and case rate. Foreign
Minister said that intra-ASEAN travel is still under discussion but that we have yet
to decide on the time frame” >>
28 May: The government has announced that regions should have maintained zero
cases or have seen a significant decrease in the infection numbers to be allowed to
reopen businesses. Those “green zones” will be considered to reopen >>
28 May: Jakarta announced that the new academic year will start on 13 July >>
28 May: Yogyakarta is extending its emergency period from 30 May to 30 Jun >>
28 May: The Office of Tourism and Creative Economy have said that they are
drafting health protocols for the “new normal” policy, which tourism businesses
would need to follow >>
27 May: The governor of East Nusa Tenggara has announced that tourism will
reopen in his province from 15 Jun >>
27 May: Army personnel have been deployed across the country to enforce social
distancing >>
27 May: Lion Air have suspended their domestic flights until 31 May, citing that
many pax were arriving at the airport without the correct travel documentation >>
27 May: MICE players in Indonesia are confident that several of their exhibitions
will take place later in the year >>
26 May: Indonesian tourism businesses are sceptical about restarting tourism
operations and if health protocols will sufficiently protect tourists >>
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25 May: The Ministry of Tourism and Creative Economy is going to implement
Cleanliness, Health and Safety program (CHS), to encourage tourist confidence >>
22 May: Bali’s Ngurah Rai Airport will ask pax to undergo a compulsory swab test
from 28 May, in a bid to become the first Indonesian province to recover >>
21 May: The Lion Air Group has cut salaries and delayed Eid bonuses, but has
assured employees no job cuts are in the pipeline. Group operations are at just 5%
of the usual 1,000 flights operated daily >>
21 May: West Java’s lockdown restrictions (PSBB) will continue until 29 May, with
some cities who are at lower risk of transmission to be allowed more freedoms >>
20 May: Data from 1 Jan – 5 May showed a decline of 44% in foreign tourist
arrivals to Bali and -35% for domestic tourists >>
19 May: Jakarta extended its lockdown (PSBB) until 4 Jun, despite the central
government’s plans to allow businesses to resume operations >>
19 May: Soekarno-Hatta could become a new cluster source after an inspection
which showed that the airport was not implementing social distancing sufficiently
>>
18 May: Bali has been ranked the 2nd destination globally in the wishlists of
Booking.com’s customers. For Indonesian travellers, their top 10 domestic
destinations in Mar and Apr ’20 were: Yogyakarta, Jakarta, Ubud, Bandung,
Seminyak, Canggu, Kuta, Surabaya, Uluwatu and Jimbaran >> (Bahasa Indonesia)
18 May: Traveloka and tiket.com cut their digital advertising spend by 100% in the
first week of Ramadan YoY >>
18 May: A tourism recovery strategy with a team that will coordinate efforts of
both the government and private sector, will be launched soon. Health and safety
will be a priority >>
16 May: AirAsia Indonesia has postponed plans to restart its flights until 1 Jun >>
15 May: Bali could be reopened to tourists in October, the Indonesian government
has stated, due to its lower case and death rate than the rest of Indonesia. If this
situation continues, promotional work will be done from Jun – Oct. Yogyakarta and
Riau islands province could also open in Oct >>
14 May: The Indonesian National Air Carrier Association (INACA) has called for
financial stimulus from the government in the form of credit relaxation and soft
loans. They warned that if there was no support in May, the impact would be
“diastrous”. Their data showed passenger traffic dropped 8.23% in Q1 YoY, and Apr
and May figures are expected to be worse >>
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14 May: Jakarta’s satellite areas have extended their lockdown (PSBB) until 26 May,
with stricter rules including the compulsory wearing of a face mask outdoors and
limiting gatherings to 5 people >>
14 May: A government investigation is underway after photos showing a crowded
terminal 2 at Jakarta’s Soekarno-Hatta airport went viral >>
13 May: The government will provide a $1.68 billion USD stimulus package for
tourism that will include airfare and hotel discounts in Q3 to boost consumption
by the middle class >>
13 May: The government will allocate $3.8 billion USD to stimulate the economy
in 2021, although the details of which ministries was not yet announced >>
13 May: Angkasa Pura I, the airport operator in Indonesia, is looking into using PCR
swab tests to detect passengers carrying COVID-19, with screening taking place in
the arrivals terminals >>
13 May: The Indonesian Travel Agent Association (ASTINDO) has complained to the
government that air ticket sales are only permitted to be purchased with the
airline or via the airline’s website, not via travel agents >> (in Bahasa Indonesia)
13 May: 48,289 tourism workers in West Java province have been sent home >>
12 May: Lockdown has been extended in Greater Surabaya until 25 May >>
11 May: The Religious Affairs Ministry anticipates 2 scenarios for hajj this year:
either that the quota will be cut by 50%, or that hajj is suspended altogether.
Indonesia is still awaiting updates from Saudi Arabia >>
08 May: The Indonesian government is looking at plans to partially reopen
businesses from 1 Jun, under a 5-phase plan, so long as targets to control the virus
are met >>
07 May: Indonesia’s March foreign tourist arrivals has dropped 64% YoY, with a
decline at all main airports:
• Bali’s Ngurah Rai Airport arrivals: -64%
• Jakarta’s Soekarno-Hatta Airport arrivals: -75%
• Medan’s Kualanamu Airport arrivals: -64% >>
07 May: Garuda Indonesia, Lion Air, Wings Air and Batik Air have resumed domestic
flights. Garuda Indonesia passengers will need to provide COVID-19 negative tests
to fly, whilst Lion Group flights will not seat passengers in the middle seats >>
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06 May: Public transportation of all means, including flights, will be allowed to
restart as of 6 May, except for in areas implementing lockdown, to facilitate
movement for business, urgent and official purposes >>
06 May: The Indonesian government is preparing the tourism industry for the “new
normal” with potential plans for certification for hygiene, as well as hygiene SOPs
for destinations and accommodation providers to follow. ASTINDO have seen from
a consumer survey a trend towards natural, outdoor activities based tourism in
smaller groups or with family >>
06 May: According to research by HVS, the Average Daily Rate (ADR) at Indonesian
hotels fell by 17.3%, and the Revenue per Available Room (RevPAR) dropped by
55.4% in March YoY >>
05 May: Hotel occupancy dropped to 32.2% in March, according to the Indonesian
Hotel and Restaurant Association (PHRI). They report that 1,642 hotels and 353
restaurants have shut down. The Association of Indonesian Tour and Travel
Agencies (ASITA) have said that its 7,000 members have been forced to cut salaries
by 50% to help cashflow >>
04 May: Central Java has seen a drop of international arrivals of 46% in March YoY,
with hotel occupancy rates dropping to 28.6%. The majority of foreign visitors
arrive from Malaysia >>
04 May: Indonesia had its first virtual tabletop between suppliers and buyers in the
travel trade, with 227 participants >>
03 May: The Association of the Indonesian Tours and Travel Agencies (Asita) have
asked agents to sell affordable packages, which must be coordinated with airlines.
The government should also use travel agents to book their work meetings >>
02 May: The number of employees affected by COVID-19 in the tourism sector is
up to 70%, according to the Tourism & Creative Economy Minister >>
30 Apr: Close to 213,00 tourism workers have been affected by the impact of
COVID-19. The Ministry of Tourism and Creative Economy will continue to develop
programs to empower tourism entrepreneurs and release online training to
support them >>
30 Apr: Garuda Indonesia will provide rapid testing services for their pax, along
with the air transport authority >>
29 Apr: 5 schemes have been introduced to support MSMEs, including tax
incentives, loan restructuring, emergency working capital assistance, amongst
others, helping 23 million companies >>
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29 Apr: Garuda Indonesia have grounded most of their fleet, and postponed salary
or performed wage cuts for 25,000 workers >>
27 Apr: Officials expect Indonesia’s cases to drop in June and “normal life” to
resume in July >>
24 Apr: IATA’s revised estimates show that passenger demand could fall by 49% in
2020, with a loss of $8.225 billion USD in revenue and 2,069,000 jobs >>
23 Apr: All domestic air travel is banned from 24 Apr to 1 Jun, for both scheduled
and chartered flights. Public land and sea transport is also prohibited >>
23 Apr: Labuan Bajo and Flores Tourism Authority will allocate up to $258 million
USD to help tourism in the region, with a 3-step process of emergency, recovery
and normalisation measures >>
22 Apr: Jakarta’s lockdown will be extended until 22 May with harsher penalties for
those who disobey measures >>
22 Apr: The Chairman of the Association of Indonesian Tours and Travel Agencies
(ASITA) Yogyakarta Chapter has said that the tourism industry may face problems
during recovery as many workers had found alternative jobs. The minister for
tourism has been coordinating with travel partners to design appealing domestic
and international promotions >>
21 Apr: The President finally imposed a ban on the mudik, or homecoming, ahead
of Eid, for everyone >>
20 Apr: New ceiling and floor airfares have been increased by the government for
domestic flights to help them cope with the new regulations that restrict pax
capacity to 50% per flight. National airlines’ revenue estimated loss has reached
207 billion IDR >>
18 Apr: Lockdown expanded to West Java, including Bandung, and West Sumatra
>>
16 Apr: Indonesia is set to lose $10 billion from tourism revenue this year, with
foreign tourists falling to 5 million from 2019’s 16 million. Widodo the Indonesian
President said, “Economic stimulus for businesses in the tourism and creative
industry must be prepared so they can survive and don’t resort to large-scale
layoffs.” They are preparing stimulus packages for the travel industry >>
15 Apr: Lockdown expanded to include Jakarta’s satellite cities in Bekasi, Bogor
and Depok and Pekanbaru will also implement the lockdown. Airlines limiting
passengers to 50% of aircraft capacity should make travel more difficult and costly
to discourage consumers >>
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15 Apr: Angkasa Pura II has restricted services and operating hours at its 19
airports >>
14 Apr: Bali does not plan to implement a lockdown as Jakarta has >>
14 Apr: Tiket.com’s revenue has dropped 75%. They have now slashed their
marketing budget by 90%. Traveloka’s web traffic is estimated to be down 60% in
March >>
13 Apr: Nearly 200,000 tourism workers are expected to apply for the
Preemployment Card benefits program launched in April with total benefits of
$223 USD. 7,000 travel agents in the Association of Indonesian Tour and Travel
Agents (ASITA) have either cut salaries or furloughed employees to avoid layoffs.
1,200 hotels have temporarily closed, with 74,100 employees registered under the
scheme, but more are expected >>
12 Apr: Public buses, trains, planes and ships must limit their capacity to 50% in a
new decree >>
07 Apr: Traveloka, a large Indonesian OTA, has had to make redundancies,
affecting around 10% of its workforce. Some remaining staff are on pay cuts >>
07 Apr: Passenger traffic at Ngurah Rai International Airport in Bali has dropped by
15% in Q1 vs last year. Angkasa Pura, the airport operator, has seen an 8.11% drop
in passengers at its 15 airports across the country >>
07 Apr: Jakarta was approved to implement further social distancing on the city,
including closing schools, workplaces and limiting religious and socio-cultural
activities >>
07 Apr: 1,266 hotels have closed with employees told to take leave, but the
Indonesian Hotel and Restaurant Association (PHRI) expects more than 150,000
hotels to be affected >>
06 Apr: Occupancy is below 2% according to PHRI. They have asked the
government for specific sector assistance as they fear mass layoffs and closures
without intervention >>
02 Apr: Bali declared a state of emergency, with all travellers entering the island
including locals, to have to self-quarantine for 2 weeks >>
02 Apr: A new public holiday may be created later in the year to encourage
Indonesians to travel then rather than over Eid >>
01 Apr: Indonesia’s foreign visitors in February dropped by 28.9% YoY and the
Central Agency of Statistics forecasts the number will drop lower yet >>
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30 Mar: Stricter rules on social distancing are to be implemented, including the
stopping of interprovincial buses and tourist buses. The President, Widodo, is still
against a full lockdown. Angkasa Pura, the airport operator, announced that 18,300
flights have been cancelled at its 15 airports, 14,000 of which were domestic >>
30 Mar: Indonesia AirAsia have suspended operations until 21 Apr for domestic
flights >>
29 Mar: Jakarta’s Soekarno Hatta airport is temporarily stopping operations at
terminals 1B and 2F from 1 Apr to 29 May >>
18 Mar: Indonesian government announced a 2nd emergency stimulus package of
$8 billion USD, which focused on the manufacturing sector rather than tourism >>
17 Mar: The government has called for the stopping of MICE activities and to “limit
activities that promote tourism and the creative economy”. The government has
cancelled all promotional plans announced during on 25 Feb >>
25 Feb: $21.5 million fund for the Indonesian tourism industry has been
announced by the government, including incentives for airlines, travel agencies,
promotional activities and sponsoring fam trips.
The government is also providing an additional fund to support airlines with
discounts of up to 30% for domestic tourism for 10 Indonesian destinations, on top
of the existing airline discounts, from Mar to May travel >>
OUTBOUND
NEW 5 Jun: Garuda Indonesia has secured approval to extend its Islamic bonds by 3
years. Garuda has seen a 90% drop in passenger volume >>
NEW 5 Jun: The decision to stop Hajj pilgrimage this year will cause a significant drop to
Garuda Indonesia, as 10% of its annual revenue comes from Hajj >>
NEW 4 Jun: The government should convince the Muslims affected by the cancellaton of
Hajj that the right decision was made. However, the Hajj funds should not be used
to foreign exchange intervention to avoid further disappointment >>
NEW 4 Jun: International flyers will need to submit a swab test to be able to fly >>
NEW 3 Jun: AirAsia Indonesia may stop flying for 3 months, as tight flight regulations
and extension of social restrictions have caused low demand. It will stop flying on
8 Jun, but may consider reopening operations should demand lift >>
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NEW 3 Jun: Lion Air will ground all international and domestic flights on 5 Jun until
further notice, after it discovered the majority of its passengers cannot comply
with the government’s new health protocol >>
NEW 2 Jun: Hajj 2020 has been cancelled by the Indonesian government, affecting some
220,000 pilgrim travellers >>
NEW 2 Jun: Garuda Indonesia has decided to make some of its pilots redundant >>
29 May: AirAsia are considering resuming routes from Kuala Lumpur to Indonesia
(Jakarta, Medan Kualanamu) >>
25 May: Garuda Indonesia has grounded 70% of its planes >>
25 May: Garuda Indonesia is finalising its bailout plan to meet its 2020 debts >>
19 May: The Indonesian government is pressuring Saudi Arabia to announce
whether the Hajj pilgrimage season in July will proceed in 2020. They have the
highest quota, with 221,000 slots to send pilgrims >>
18 May: For Booking.com’s Indonesian travellers, their top 10 international
destinations in Mar and Apr ’20 were: Tokyo, Kuala Lumpur, Singapore, Bangkok,
Seoul, Osaka, Kyoto, London, Paris and Penang >> (Bahasa Indonesia)
18 May: Garuda Indonesia will furlough 800 contract workers for 3 months. Its
daily flights have declined by 70% >>
16 May: AirAsia Indonesia has postponed plans to restart its flights from Kuala
Lumpur/ Johor Bahru to Surabaya on May 18 >>
14 May: All airports in Indonesia have been added to the “European Union List of
Airports considered high risk of transmission” >>
11 May: Indonesia is looking at a rescue plan of $1 billion USD for Garuda
Indonesia >>
06 May: Qatar Airways plan to resume flights from Doha to Jakarta by the end of
June >>
05 May: Garuda Indonesia is discussing repayments due in June as cashflow issues
continue to affect it. It estimates it has seen a 31.9% decline in passenger and
cargo revenue in Q1 YoY >>
05 May: AirAsia Indonesia plans to resume its flights from Kuala Lumpur/ Johor
Bahru to Surabaya on May 18 >>
22 Apr: The Chairman of the Association of Indonesian Tours and Travel Agencies
(ASITA) Yogyakarta Chapter has said travel agents may have to cut longhaul
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destinations and focus on SE Asian countries instead due to weaker purchasing
power >>
21 Apr: ASTINDO has called for airlines to give cash refunds to enable its travel
company members to maintain cashflow and refund their own clients >>
17 Apr: ASITA reported that 98% of its 7,000 members (travel agents and tour
operators) have temporarily closed operations, furloughing employees >>
30 Mar: Indonesia AirAsia have suspended operations until 17 Apr for international
flights >>
17 Mar: Indonesian Umrah travel agents could lose 2 trillion rupiah ($134
million) whilst Saudi Arabia continues its entry ban >>
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LAOS
Could lose up to $20 - 25 million USD from cancellations
TRAVEL Flights are suspended. (IATA).
RESTRICTIONS
LOCKDOWN Businesses are allowed to reopen from 18 May, and transport and interprovince
STATUS
movement is allowed again. Schools will be reopened from 18 May in phases.
Indoor and outdoor sporting activities are allowed to take place. From 2 Jun, night
markets, restaurants and cinemas to be reopened. Beer shops, nightclubs, karaoke,
and casinos will remain closed. Gatherings for weddings and cultural events are
limited to 50 pax.
INBOUND
NEW 5 Jun: The Myanmar Deputy Minister of Hotels and Tourism said that the Myanmar
government will work together with Cambodia, Laos and Vietnam to introduce
regional tourism, with the 4 countries signing an agreement to ease border access
between them, although specific details have not yet been released >>
30 May: All school classes will resume on 15 Jun. From 2 Jun, night markets,
restaurants and cinemas can reopen >>
26 May: Students, Lao citizens, experts and diplomats are allowed to enter and exit
Laos with authorisation from the Ministry of Foreign Affairs >>
25 May: Laos and China will organise joint training courses for tourism workers,
teaching tour guides basic Chinese and developing skills so that Chinese tourists
can have their needs met. They also agreed to bolster 2-way tourism >>
22 May: Authorities announced they will start to reopen international borders with
neighbouring countries (China, Vietnam, Cambodia and Thailand), but foreigners
would only be permitted to enter should they have the appropriate authorisation
from the Ministry of Foreign Affairs >>
22 May: The Lao tourism board may be established again, according to the
President of the LNCCI, in a webinar hosted by Austcham Lao PDR >> (video)
21 May: Domestic travel is now permitted in Laos >>
16 May: Laoskyway will resume flight services on 24 May >>
16 May: Laos eased its lockdown restrictions from 15 May. Businesses and
government agencies are allowed to reopen from 18 May, and transport and
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interprovince movement is allowed again. Schools will be reopened from 18 May
in phases. Indoor and outdoor sporting activities are allowed to take place.
However, night markets, beer shops, nightclubs, karaokes, casinos and cinemas
will remain closed. Gatherings for weddings and cultural events are limited to 50
pax >>
15 May: Lao Airlines will be resuming domestic flights from 22 May >>
08 May: Laos is extending its flight ban, with Lao Airlines also confirming that it
would not reopen domestic flight routes. Luang Prabang tourist sites will remain
closed >>
02 May: Laos will allow restaurants, shopping centres, retail and service businesses
to reopen on Mon 04 May, but people must wear face masks outside and keep
social distancing. This will continue until 17 May, but should new infections be
detected in 2 provinces, lockdown will be implemented once more >>
28 Apr: The Lao Hotel and Restaurant Association met with the government to
convey their concerns and issues, many of which will take a long time to resolve
>>
30 Apr: Laos’ Q1 domestic and foreign visitors totalled 886,440, representing a
17% downturn YoY, with more than $450,000 USD lost in the first two months of
2020 >>
24 Apr: IATA’s revised estimates show that passenger demand could fall by 51% in
2020, with a loss of $0.22 billion USD in revenue and 23,800 jobs >>
15 Apr: Lockdown extended by 14 days until 03 May >>
03 Apr: Tourism businesses will have a tax deferral for 3 months from April, the
government announced, as part of fiscal measures to help the economy >>
29 Mar: Laos will be under lockdown, with international and interprovincial
borders closed to all travellers from 30 Mar to 19 Apr >>
24 Feb: Laos could lose up to $20 - 25 million USD from travel cancellations.
However, this is likely to increase if other tourists also stop visiting the country >>
OUTBOUND
NEW 5 Jun: The US government has suspended issuing certain visas for Laos citizens >>
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MALAYSIA
Estimated RM3.3 billion in losses
TRAVEL Passengers not allowed to enter Malaysia (except Malaysian nationals, permanent
RESTRICTIONS
residents and MM2H permit holders). 14-day self-isolating quarantine for
Malaysian passengers, at designated quarantine for non-Malaysians (IATA).
LOCKDOWN Conditional Movement Control Order (CMCO) lockdown eased from 10 Jun to
STATUS
“Recovery Movement Control Order” (RMCO) until 31 Aug. RMCO will allow
interstate travel, domestic tourism, and the opening of nearly all commercial,
religious and recreational activities, with the exception of large gatherings, sports
which involve bodily contact, nightclubs, pubs, karaoke centres and reflexology
centres. Schools will be reopened in phases.
MALAYSIA
90.00 90.00 89.00 86.00 85.00 87.00 85.00 88.00
100 80.00 81.00 83.00 83.00 79.00
80
60
40 63.00 68.00 66.00 66.00 63.00 60.00 65.00 63.00 61.00
54.00 54.00 55.00
20
0
% of people in each country who say they are "very" or "somewhat" scared that they will
contract COVID-19
% of people in each country who say they are: avoiding physical contact with tourists
Source: YouGOV
Flight searches and booking volume for travel to Malaysia
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Future flight search for travel to Malaysia
Source: Sojern COVID-19 dashboard
INBOUND
NEW 7 Jun: The Conditional Movement Control Order (CMCO) lockdown will be eased
from 10 Jun to a “Recovery Movement Control Order” which will run until 31 Aug.
This new phase will allow interstate travel, domestic tourism, and the opening of
nearly all commercial, religious and recreational activities to take place again, with
the exception of large gatherings, sports which involve bodily contact, nightclubs,
pubs, karaoke centres and reflexology centres. Schools will be reopened in phases
>>
NEW 7 Jun: The National Union of Flight Attendants said that using public funds to save
airlines should not be seen as a “bailout” as it will save tourism worker jobs. They
have said that fiscal support is sorely needed >>
NEW 6 Jun: Tourism Langkawi Association have pledged to work with all stakeholders to
offer competitive holidays for tourists, especially domestic tourists – but are
dismayed by the lack of some airlines to offer cost competitive fares and that ferry
operators want to raise fares >>
NEW 6 Jun: The Malaysian Association of Tour and Travel Agents has welcomed the
RM1,000 personal tax relief for domestic tourism expenses, but hopes that it could
be allowed for expenses only spent through licensed travel agents >>
NEW 5 Jun: The Malaysian Association of Hotels (MAH) says that the wage subsidy
extension is appreciated, but that the amount was “insufficient” for the industry –
instead they propose a 50% subsidy for those on salaries below RM4,000 >>
NEW 5 Jun: The government released a new RM35 billion stimulus package for the
economy, called PENJANA. It includes tax relief for individuals, a monthly
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unlimited travel pass for RM30, free 1GB data every day between 8am-6pm. For
tourism it also includes:
• RM1 billion to finance transformation initiatives by SMEs (details to be
announced)
• RM1.8 billion in tax incentives, including tourism tax breaks from 1 Jul –
30 Jun
• Moratorium on tax instalment payments from 1 Apr to 31 Dec for tourism
companies (including airlines)
• Personal income tax relief of RM1,000 for tourism expenses >>
NEW 5 Jun: Tourism in Sabah’s Kinabatangan should be able to restart soon, but will be
difficult as the primary customer base is European travellers, with just 4-5%
domestic. The local tourism association will spend RM200k to promote their
tourism campaign, including strict hygiene SOPs >>
NEW 4 Jun: Sarawak has revised its tourist arrivals target from 5 million to 2.4 million
>>
NEW 3 Jun: Penang Hill will reopen its iconic funicular train service from 6 Jun, but will
not be at maximum capacity >>
NEW 3 Jun: Tourism job losses accounted for 39% of all job losses in Q1 in Malaysia
according to a new government report. In Sabah, job losses in the tourism industry
account for up to 56%, whilst in KL and Selangor, they account for 40% of total
job losses >>
NEW 3 Jun: Sabah state will now allow travel from peninsular Malaysia, Sarawak and
Labuan. Travellers must have tested negative for COVID-19 within 3 days of
entering Sabah. The state is also looking into allowing direct international flights
>>
NEW 3 Jun: The Swiss Garden group will close 3 properties in Malaysia, and will reduce
staff at their other properties >>
30 May: The Malaysian Budget Hotel Association (MyBHA) has proposed that the
government should issue healthy and safety certificates, known as 3K. Losses in
their 2,300 members are around RM70 million as of May >>
29 May: Malaysia is predicted to be heading into a recession in the next 4-6
months >>
28 May: The Four Points by Sheraton hotel in Sandakan will be closing down >>
28 May: A virtual advisory clinic has been helping Malaysian travel businesses
navigate issues such as marketing, finance, business operations and structure. 147
companies participated in the pilot project >>
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28 May: The Malaysian Inbound Tourism Association (MITA) have asked for credit
and leasing companies to give a moratorium to its tour bus operator members >>
27 May: Several hotels in Kuala Lumpur, including 5* hotels, have been put up for
sale, but this is not entirely due to COVID-19, according to former Malaysian
Association of Hotels president >>
27 May: The Malaysian Association of Tour and Travel Agents (MATTA) is imposing
SOPs on hygiene for tour vehicles, tour guides and luggage, calling it “sanitised
travel” >>
27 May: The theme park in Genting Highlands scheduled for soft opening in Q3
2020 has now been postponed again and is scheduled for Q3 2021 >>
26 May: 20% of the Malaysian Association of Hotels’ 1,200 members have faced
action to completely shut down or postpone operations, which has affected 6,000
workers >>
23 May: The founder of Apple Vacations, one of Malaysia’s biggest travel agents,
has made a plea to the government to offer more support and clarity, especially
over government remarks on 16 May for them to return refunds >>
23 May: 10 Melaka hotels are being sold, including both boutique and budget
ones, according to the Melaka Tourism Business Club (MTBC) >>
23 May: The Johor state tourism industry will be helped by the government with
RM1,000 cash handouts for tour guides, exemption of licence fees for tourism and
hotel industry companies and entertainment tax exemption for theme parks and
family entertainment centres >>
22 May: Airbnb are urging the Malaysian government to make them a part of
Tourism Malaysia’s initiatives, given that in 2018 they generated RM3 billion in
direct economic impact to the country. Meanwhile, homestays remain closed >>
22 May: Interest free loans of up to RM10 million are being opened up to Penang’s
tourism industry players >>
21 May: The Malaysian Association of Tour and Travel Agents (MATTA) wants the
government to develop its own health and safety accreditation for tourism players.
They reminded the government that boosting consumer confidence is key to for
tourism >>
21 May: The Penang state government has proposed “travel bubbles” for interstate
travel as restrictions gradually lift >>
21 May: All interstate travel has been banned, to try to put off people returning to
home towns for Eid celebrations >>
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