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COVID hospitality bulletin Asia Pacific - July 2022
Friday, 8th July 2022
Source : AP Hospitality Advisors

The Philippines sees an increase in foreign visitors since February, while starting from mid-June, Macau started to tighten the social distancing policy due to the surging COVID-19 cases in the city.

Vietnam

Since reopening its border in March, Vietnam has seen an increase in foreign travelers returning since the pandemic of COVID-19. According to the General Statistics Office (GSO) of Vietnam, Vietnam welcomed over 600,000 foreign travelers in the first two quarters of 2022, and 237,000 in June alone.

Statistics also suggest that the revenue from accommodation and catering services recorded a 20.9% year-on-year growth in the first six months and an 80% increase in June 2022 over 2021. During the reporting period, Hanoi and Ho Chi Minh City are the most popular destinations among foreign travelers.

Vietnam also seeks more sustainable and responsible tourism development like its neighboring countries in Southeast Asia in the post-COVID era. Besides the cultural and historical heritage across the country, Vietnam has 33 national parks, 57 nature reserves, 13 habitat conservation areas, 53 landscape protection zones, and 8 UNESCO sites.

Despite the abundant resources, Vietnam is considered slow in sustainable tourism development compared with other economies in the world, but the government is working on different initiatives, including designated sustainable travel guides and related workshops.

Philippines‍

As one of the first countries to waive quarantine requirements for inbound travelers, the Philippines sees an increase in foreign visitors since February. According to the local news, the number of foreign visitors had surpassed 500,000 in late May, and the major source markets during the reporting period included the USA (20%), South Korea (5.5%), and Canada (4.7%).

Before the reopening, the Department of Tourism (DOT) observed strong demand for domestic tourism and the total domestic trips reached over 37.2 million in 2021, a 38% year-on-year growth.

The return of foreign travelers is expected to boost the tourism industry in the country; the share of tourism to GDP dropped from 12.8% in 2019 to 5.2% in 2021, and the industry has shown confidence in the future of tourism in the Philippines. The Hann Group, which opened the rebranded Hann Resort in Clark Freeport Zone in 2021, announced its expansion plan of casinos, hotels, and golf courses in the coming 5 years with an additional $1 billion investment.

On the other hand, master plans for two Cebu islands, Bantayan and Camotes, are ready for implementation and are expected to help ensure long-term tourism development in order to avoid another Boracay Island fiasco.

Macau SAR

Starting from mid-June, Macau started to tighten the social distancing policy due to the surging COVID-19 cases in the city. City-wide mass testing aside, some casinos and related entertainment venues are temporarily closed.

While the daily number of recorded cases is relatively small compared to other countries and regions, Macau remains committed to its zero-COVID policy and only waives the quarantine of travelers from low-risk regions in China. With the shortened quarantine of inbound travelers in mainland China (from 14–21 days to 10 days), Macau might be able to see more Chinese travelers return to the attractions and casinos after the situation alleviates.

The government has announced that the existing licenses of six casino operators are extended to the end of the year, and the new gaming licenses are expected to be issued by the end of this year. However, the casinos face challenges after the tighter regulations imposed on VIP segments and big spenders from mainland China are unable to return to the gaming tables.

As a result, the gross gaming revenue (GGR) in Macau shows a great year-on-year decline starting this March. In June, the GGR only reached MOP 2,477 million, a 62% decrease over 2021 and the lowest monthly GGR in the past 20 months.

Reopening Status in Asia Pacific

More and more countries and regions are embracing the new normal of international travel in the region, and more countries are removing the mandatory testing results required by all inbound travelers.

At the same time, travelers to the greater China are still required to undergo quarantine upon arrival, but mainland China announced that the quarantine has been shortened from 14 to 21 days to 7+3 days in response to alleviated situation across the country.

www.ap-ha.com

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