Staycations and weekend getaways: Can domestic travel spark a revival of Southeast Asia’s tourism industry?

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SINGAPORE: Mentari Primananti, 41, spent last week’s Idul Adha holiday at a resort in Bandung, Indonesia. The two nights of accommodation cost ...

SINGAPORE: Mentari Primananti, 41, spent last week’s Idul Adha holiday at a resort in Bandung, Indonesia.Advertisement“The resort had a great view, a lot of outdoor facilities and activities … We have been staying in our house for months, so it was great to be outdoors,” she recounted.“We didn’t want to be somewhere crowded or required us to travel by airplanes. This is what matters to me right now when choosing somewhere to go.

The tourism industry in Thailand, for instance, contributed close to 18 per cent of gross domestic product last year. Tourism activities slowed in early 2020, with international tourism receipts contracting by 39 per cent due to a significant drop of foreign tourist arrivals. It has also affected the livelihoods of around 13 million people working in the industry. PHRI data showed that 95 per cent of employees were forced to take unpaid leave. About 30,000 lost their jobs permanently, particularly those whose contracts expired and were not renewed.

The Thai government has launched a campaign to boost domestic tourism between Jul 1 and Oct 31. Under this campaign, 40 per cent of normal room rates worth no more than 3,000 Baht per night are paid by the government. It is hoped that this will encourage people to travel within the country and help tourism entrepreneurs affected by the international travel ban.

“The We Travel Together programme is the government’s initiative to help hotels and restaurants affected as well as tourist attractions,” Thapanee Kiatphaibool, the deputy governor for tourism products and business at the Tourism Authority of Thailand told CNA. For instance, the deferment of tax instalment payment for tourism industry players, such as tour agencies, hotels and airlines, for the period from Apr 1 to Sep 30, has been extended for another three months from Oct 1 to Dec 31.Tourism tax for the period of Jul 1 until Jun 30 next year have been exempted, and individual income tax relief of up to RM1,000 is offered for expenses in domestic tourism until Dec 31, 2021.

For Casa Del Mar Resort in Langkawi, Malaysia, it has reduced prices by half to attract domestic tourists, front office manager Vinud Athithan told CNA. “These people who usually travel overseas and spend lavishly are now bound to domestic destinations. So when they are limited, they do not mind spending extra and upgrading to the more exclusive packages, because ultimately it may still cost less than flying overseas,” he said.

Sanitising foot mats and hand sanitisers are also provided at the entry and exit points as well as restaurants, said Kitima Ananchitsupa, the resort’s vice president. Maulana Yusran, the deputy chairman of PHRI said there were hotels that briefly had 20 per cent to 40 per cent occupancy rate after the lifting of the large-scale social restrictions in Indonesia.The Bali Aga - or mountain people - who live in these isolated villages, claim to be descendants of the original Balinese.

However, it is a less rosy picture in the big cities, which are experiencing low occupancy due to dependency on foreign arrivals. "We are offering 5 million room nights and so far, about 1 million of them have been taken. Still, the travelling period is four months. So, it's likely they'll all be used up," said Thapanee of TAT.Industry players have noticed changes in terms of travel habits.

He noted that whale watching is an activity that takes place in open space, and this may be one of the reasons why travellers feel safer. Yusran of PHRI noted that there remains a general aversion towards air travel. This is exacerbated by the requirements set by the Indonesian authorities to secure health certificates and take rapid tests, which could add to cost and hassle for travellers.

“What the government should have done is to keep tourist areas closed and used that time to address some of the drawbacks in our tourism sector,” he said.

 

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