Reforms Needed to Future-Proof Tourism IndustryAPEC

Putrajaya, Malaysia, 18 May 2020

Issued by the APEC Tourism Working Group

Tourism officials from APEC’s member economies are advancing cooperation in mitigating the impact of the COVID-19 pandemic to the tourism industry and charting the way towards recovery.

It was announced at the APEC Tourism Working Group virtual meeting on Friday that the pandemic deeply affects international travel and would set back international tourist arrivals by 58 percent to 78 percent in 2020.

“The tourism industry is the first sector to be affected by the COVID-19 pandemic and will be among the last ones to recover as travelers become more conscious of the health risks and are discouraged by the stringent travel restrictions that are being implemented around the world,” said Muhammad Daud, Senior Director of Tourism Policy and International Relations of Malaysia’s Ministry of Tourism, Arts and Culture.

“We have to assume our role by consolidating our efforts in areas where we can support the businesses and communities in the region,” added Daud, who is also the Lead Shepherd of the working group.

The Asia-Pacific region recorded the highest growth in terms of tourist arrivals globally with a total of 464.7 million international tourist arrivals in 2017, or about 33 percent of global tourism arrivals. Moving forward, this will no longer be the case.

“It will take a long time before people have the confidence and trust in traveling again. Even when the situation gets better, it will take a while for global travel to pick up the pace,” said Dr Rebecca Sta Maria, the APEC Secretariat’s Executive Director, in her remarks to officials.

“The tourism industry is the backbone for many of our small businesses, women and vulnerable communities,” she continued. “We must fine tune our approach to provide the people in our communities the support they need in navigating through these difficult times.”

The travel and tourism sector employs 57.5 million people in the APEC region and contributes USD1.5 trillion to global domestic product (GDP). There are 470 international airports in APEC economies, facilitating business and leisure travel. The scale of the industry’s contribution to the economy makes it an important driver of growth for the region.

Work in promoting sustainable and inclusive tourism within APEC is underway, including aligning policies among member economies, facilitating travel and improving coordination mechanisms. Given current developments, the group is reviewing the existing work plans and goals, including exploring the best solutions to conform to the new normal within the tourism industry.

The group will also bolster efforts in strengthening the resiliency of tourism by incorporating risk and emergency management measures, enhancing information flow for sharing best practices and encouraging more collaboration.

“Members are keen to open up the economy and revive the tourism sector, however the health and safety of travelers are paramount. We need to work closely with our health and emergency preparedness agencies in developing standard procedures that will instill confidence, encourage travel and ensure safety at the same time,” Daud concluded.