What Impact Does Asia Pacific Travels & Tourism Have?

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1. What Is the Current State of Asia Pacific Travel and Tourism?

The Asia Pacific travel and tourism sector is showing strong signs of recovery, outperforming many other regions globally. According to research from the World Travel & Tourism Council (WTTC), the Asia Pacific region has seen a year-on-year growth of over 36% in its travel and tourism sector. This indicates a robust resurgence in travel activities compared to other parts of the world.

Before the pandemic, the Travel & Tourism sector in Asia Pacific contributed over US$3 trillion, representing 9.9% of the region’s economy. The onset of the pandemic in 2020 caused a significant contraction of nearly 54%, drastically reducing the sector’s contribution. However, current recovery rates suggest a potential year-on-year increase of 36.3% in the sector’s GDP contribution for this year, surpassing the global average of 30.7%. This increase equates to approximately US$515 billion. Projections for the following year indicate a similar rise of 35.8%, potentially adding US$692 billion to the region’s economy. These figures highlight the sector’s crucial role in driving economic growth and the positive impact of its recovery.

2. How Has the Pandemic Affected Travel and Tourism in Asia Pacific?

The pandemic brought international travel to a near standstill, severely impacting the Asia Pacific region. WTTC data indicates that in 2020, the region experienced a dramatic drop of nearly 54% in the contribution of Travel & Tourism to its economy. This decline reflects the widespread travel restrictions, lockdowns, and overall decrease in travel demand due to health concerns.

The drastic reduction in international arrivals and domestic travel led to substantial economic losses for businesses dependent on tourism, including hotels, restaurants, transportation services, and tour operators. The WTTC reports that the impact was particularly severe in countries heavily reliant on international tourism, such as Thailand, Vietnam, and Singapore. However, with the gradual easing of restrictions and the implementation of safety measures, the sector is now showing signs of recovery, driven by both domestic and international travel. According to a report by McKinsey, the Asia-Pacific region is expected to see a strong rebound in tourism, with domestic travel leading the way as international borders gradually reopen.

3. What Are the Projections for Domestic and International Spending?

Domestic spending within the Asia Pacific region is expected to see significant growth, while international spending is poised for a substantial rebound. WTTC projects a 49% increase in domestic spending by the end of this year, followed by a year-on-year rise of over 25.5% in 2022. This growth reflects increased confidence among local travelers and the easing of domestic travel restrictions.

While international spending is predicted to drop by nearly 25% compared to 2020, one of the worst years for the Travel & Tourism sector, projections for 2022 are much more optimistic. International spend growth is expected to rise by US$156 billion (148%), providing a significant boost to the region’s economy. This surge is attributed to the pent-up demand for international travel and the gradual reopening of borders. A report by UNWTO indicates that the Asia-Pacific region is expected to be at the forefront of tourism recovery, driven by strategic initiatives and increased traveler confidence.

4. How Is Employment in the Travel & Tourism Sector Recovering?

Employment in the Asia Pacific Travel & Tourism sector is gradually recovering, with significant growth expected in the coming years. In 2019, the sector supported over 185 million jobs in the Asia Pacific region. However, due to travel restrictions and reduced tourism activities, the region experienced a loss of over 34 million jobs last year. This downturn had a devastating impact on livelihoods across the region and around the world.

WTTC forecasts indicate a marginal employment growth of 0.4% in 2021. However, a substantial year-on-year increase of 19.8% is projected for 2022, potentially reaching over 181 million jobs. This recovery is driven by the resurgence in both domestic and international travel, as well as government initiatives to support the tourism sector. According to a study by Deloitte, strategic investments in training and infrastructure will be crucial in accelerating employment recovery in the tourism sector.

5. What Measures Are Needed to Further Enhance Recovery?

To further enhance the recovery of the Asia Pacific Travel & Tourism sector, several vital measures need to be implemented by governments and industry stakeholders.

5.1. Allowing Free Movement for Vaccinated Travelers

One of the primary measures is to allow fully vaccinated travelers to move freely, regardless of their origin or destination. This approach would significantly boost traveler confidence and encourage international travel, as highlighted in a report by IATA, which advocates for the recognition of vaccination as a key enabler for safe travel.

5.2. Implementation of Digital Health Solutions

The implementation of digital solutions that enable all travelers to easily prove their COVID status is crucial. These solutions would streamline border processes and reduce delays, making travel more efficient and convenient. According to research from the World Economic Forum, digital health passports can play a vital role in restoring confidence in international travel.

5.3. Recognition of All WHO-Authorized Vaccines

For safe international travel to fully restart, governments must recognize all vaccines authorized by the World Health Organization (WHO). This recognition would ensure that a broader range of travelers can enter countries without facing additional restrictions, as emphasized by the UNWTO, which calls for harmonized travel protocols to facilitate tourism recovery.

5.4. Support for the COVAX/UNICEF Initiative

Continued support of the COVAX/UNICEF initiative is essential to ensure the equitable distribution of vaccines around the world. This support would help in achieving global immunity, making travel safer for everyone. A report by the G20 highlights the importance of international collaboration in ensuring fair access to vaccines for all countries.

5.5. Enhanced Health and Safety Protocols

The continued implementation of enhanced health and safety protocols is necessary to underpin customer confidence. These protocols include measures such as mandatory mask-wearing, enhanced sanitation, and social distancing. According to a survey by McKinsey, travelers are more likely to travel if they feel that proper health and safety measures are in place.

6. What Could Be the Impact of These Measures on the Economy and Jobs?

If the above measures are implemented by the end of 2021, the impact on the economy and jobs across Asia Pacific could be substantial.

6.1. Impact on GDP

The Travel & Tourism sector’s contribution to GDP would benefit significantly, potentially rising by 46.7% (US$661 billion) by the end of this year. A further year-on-year rise of 37.8% (US$785 billion) is projected for 2022. This increase would provide a significant boost to the region’s overall economic recovery.

6.2. Impact on Domestic Spending

Domestic spending could increase by 59% this year, followed by a 26.2% growth in 2022. This surge in domestic tourism would help support local businesses and create more employment opportunities.

6.3. Impact on International Spending

Although international spending might continue to decline by 12.6% in 2021, it could experience a massive boost of 153% next year, representing a rise of US$188 billion. This rebound in international tourism would be a game-changer for the region’s economy.

6.4. Impact on Employment

Employment could see an 8% rise this year, and a year-on-year increase of 21.6% in 2022, recovering more than 47 million jobs by next year. This recovery would exceed pre-pandemic levels and provide the region with an additional 13 million jobs, as projected by Oxford Economics.

7. How Can Vietnam Benefit from the Recovery in Asia Pacific Travel & Tourism?

Vietnam stands to gain significantly from the recovery in Asia Pacific Travel & Tourism. According to the Vietnam National Administration of Tourism (VNAT), the country has been actively promoting domestic tourism through various campaigns and initiatives. Vietnam can leverage its diverse attractions, from the bustling cities to the tranquil beaches, to attract both domestic and international travelers.

7.1. Strategic Tourism Development

VNAT has been implementing a strategic tourism development plan focusing on enhancing the quality of tourism products and services. This includes investing in infrastructure, improving the skills of tourism professionals, and promoting sustainable tourism practices.

7.2. Promoting Ecotourism

Vietnam has immense potential for ecotourism, with its rich biodiversity and natural landscapes. By promoting ecotourism, Vietnam can attract environmentally conscious travelers and contribute to the conservation of its natural resources. According to a report by the World Bank, ecotourism can generate significant economic benefits while preserving biodiversity.

7.3. Cultural Tourism

Vietnam’s rich cultural heritage, including its historical sites, traditional festivals, and unique cuisine, offers a compelling draw for cultural tourists. By investing in the preservation and promotion of its cultural heritage, Vietnam can attract more international visitors.

7.4. Health and Wellness Tourism

With the growing trend of health and wellness tourism, Vietnam can position itself as a destination offering a range of wellness services, such as traditional medicine, spa treatments, and yoga retreats. According to a report by the Global Wellness Institute, health and wellness tourism is a rapidly growing sector with significant potential for Vietnam.

8. What Role Does SIXT.VN Play in Supporting Travel to Vietnam?

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9. How Can SIXT.VN Enhance the Travel Experience in Hanoi?

SIXT.VN enhances the travel experience in Hanoi by offering comprehensive services tailored to the needs of tourists. Hanoi, the capital city of Vietnam, is a vibrant hub of culture, history, and gastronomy. SIXT.VN ensures that travelers can explore Hanoi with ease and comfort, providing memorable experiences.

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10. What Are the Frequently Asked Questions About Asia Pacific Travels & Tourism?

10.1. What is the current state of Asia Pacific travel and tourism?

The Asia Pacific travel and tourism sector is experiencing a strong recovery, with a year-on-year growth of over 36%, outperforming many other regions globally.

10.2. How did the pandemic affect travel and tourism in Asia Pacific?

The pandemic brought international travel to a near standstill, causing a significant contraction of nearly 54% in the sector’s contribution to the region’s economy in 2020.

10.3. What are the projections for domestic and international spending in Asia Pacific?

Domestic spending is expected to grow by 49% by the end of this year, with international spending poised for a substantial rebound of 148% next year.

10.4. How is employment in the Travel & Tourism sector recovering in Asia Pacific?

Employment is gradually recovering, with a projected year-on-year increase of 19.8% in 2022, potentially reaching over 181 million jobs.

10.5. What measures are needed to further enhance the recovery of Asia Pacific travel and tourism?

Vital measures include allowing free movement for vaccinated travelers, implementing digital health solutions, recognizing all WHO-authorized vaccines, supporting the COVAX/UNICEF initiative, and maintaining enhanced health and safety protocols.

10.6. How can Vietnam benefit from the recovery in Asia Pacific Travel & Tourism?

Vietnam can leverage its diverse attractions, promote ecotourism and cultural tourism, and enhance its health and wellness tourism offerings to attract both domestic and international travelers.

10.7. What role does SIXT.VN play in supporting travel to Vietnam?

SIXT.VN provides tourism advisory services, airport transfer services, hotel booking services, tour booking services, and flight booking services to support travel to Vietnam.

10.8. How can SIXT.VN enhance the travel experience in Hanoi?

SIXT.VN enhances the travel experience in Hanoi by offering personalized tours, airport shuttle services, a wide range of accommodation options, local guides, and tailored travel packages.

10.9. What are some of the key attractions to visit in Hanoi with SIXT.VN?

With SIXT.VN, you can explore attractions such as the Old Quarter, Hoan Kiem Lake, the Temple of Literature, and the Ho Chi Minh Mausoleum.

10.10. How can I book travel services with SIXT.VN for my trip to Vietnam?

You can easily book travel services with SIXT.VN by visiting the website at SIXT.VN or contacting the hotline/WhatsApp at +84 986 244 358. The address is 260 Cau Giay, Hanoi, Vietnam.

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