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COVID hospitality bulletin Asia Pacific
Friday, 7th January 2022
Source : AP Hospitality Advisors

While Hong Kong rolled out its vaccination program in February 2021, the fully vaccinated population is still less than 70%, which is far lower than other countries in Asia Pacific.

Thailand

The government of Thailand announced to temporarily suspend the registration of re-entry travel arrangement, Test & Go, just 7 weeks after the initial launch.

The spread of Omicron variant in Southeast Asia forced the government to reconsider their ambitious reopening plans, but about 200,000 registered travelers are still eligible for the quarantine-free travel to Thailand. The pioneering quarantine-free travel arrangement, Phuket Sandbox, stays unaffected despite the new announcement.

The re-entry program starting from November boosted the number of international arrivals to reach the highest monthly number of arrivals for the year at over 91,000 travelers. The majority of the travelers originated from Europe at 57%, followed by East Asia (18%) and Americas (11%).

Although the number is 3.5 times higher than October, it is still a 97% decline from the comparable figure in 2019. The stronger recovery is likely to set in once travelers from East Asia, especially China, are ready to travel abroad again.

Indonesia

The reopening of Bali, on the other hand, received little attention and effects since October. The island’s airport reopened to international flights in October, but there were only domestic flights mainly from Jakarta operating at that time.

Moreover, the suspension of tourist visa, 10-day mandatory quarantine and a few COVID tests made travelers look for better holiday destinations in Southeast Asia. Between January and October 2021, CNN reported that only 45 international travelers arrived in Bali, and the number was confirmed by local statistics bureau.

The double-digit number of international tourist contrasts with the growing number of domestic tourists from the capital and other parts of Indonesia.

By mid-December, average number of daily visitor in Bali were about 13,000 on weekends, but the occupancy rate of hotel was only around 35%. The sluggish reopening of Bali also urged local community to work toward a more sustainable future, including waste management and agro-food entrepreneurship.

Hong Kong

The flagship carrier, Cathay Pacific, announced the cancellation of some international flights starting from late December 2021 in response to the tighter quarantine schedule for air crews ordered by the local government. Moreover, long-haul flights, both cargo and passenger, are all canceled until early January 2022 to cope with the spread of Omicron variant in the city.

While Hong Kong rolled out its vaccination program in February 2021, the fully vaccinated population is still less than 70%, which is far lower than other countries in Asia Pacific. Worst of all, the uncertain situation and local Omicron cases halt the ongoing discussion with Mainland China for a border reopening.

While air travel is not ideal under the pandemic, cruise holidays are gaining popularity in Hong Kong. The cruise operators reported that the 3-day package during the new year sold out despite a maximum occupancy of only 50-75%, and they also saw the trends of enquiries from corporate and groups as the alternatives for social functions.

AP Hospitality Advisors serves owners, investors, developers, operators and lenders of hospitality assets across Asia-Pacific. The team blends expertise in operations, real estate and finance to support any critical step in the asset life-cycle.

www.ap-ha.com

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