The South East Asia (Indonesia, Malaysia, Myanmar, Philippines, Singapore, and Vietnam) lodging industry experienced mixed sentiments for 2019.
Despite growth in tourism arrivals, the ever-changing political climate, mercurial global economic conditions, and growth in accommodation supply are few of the many reasons that continue to put downward pressure on several markets.
Even with the headwinds, the underlying dynamics behind demand growth appear to be resilient and are expected as such going forward.
The global economic growth is anticipated to end off at a rate of 3.0% in 2019, before gradually recovering back to the 2018 performance of 3.6% in 2021. Nonetheless, South East Asia remains the fastest-growing region in the world and is projected to grow at a rate of 5% in 2019.
While the global Consumer Price Index (CPI) forecast remains relatively stable, South East Asia’s CPI has been projected to abate from 3.4% in 2018 to 2.8% in 2019, mainly held back by slow wage growth and prolonged trade tensions.
However, South East Asia’s unemployment rate remains at a low 3.5% and is expected to prevail at the same level through 2021. The region’s inflation is anticipated to rise in 2021 on the back of looser monetary conditions and resilient domestic demand.
As of year-to-date (YTD) Q3 2019, South East Asia registered a growth rate of 12.3% in international visitor arrivals, a 2.1% increase from the same time last year. While Malaysia recorded year-over-year (YOY) growth of 3.7% as of YTD September 2019, a five-year compound annual growth rate (CAGR) of 0.1% reveals that the country continues to miss tourism goals and struggles to attract more tourists.
The South East Asia (Indonesia, Malaysia, Myanmar, Philippines, Singapore, and Vietnam) lodging industry experienced mixed sentiments for 2019.
Despite growth in tourism arrivals, the ever-changing political climate, mercurial global economic conditions, and growth in accommodation supply are few of the many reasons that continue to put downward pressure on several markets.
Even with the headwinds, the underlying dynamics behind demand growth appear to be resilient and are expected as such going forward.
The global economic growth is anticipated to end off at a rate of 3.0% in 2019, before gradually recovering back to the 2018 performance of 3.6% in 2021. Nonetheless, South East Asia remains the fastest-growing region in the world and is projected to grow at a rate of 5% in 2019.
While the global Consumer Price Index (CPI) forecast remains relatively stable, South East Asia’s CPI has been projected to abate from 3.4% in 2018 to 2.8% in 2019, mainly held back by slow wage growth and prolonged trade tensions.
However, South East Asia’s unemployment rate remains at a low 3.5% and is expected to prevail at the same level through 2021. The region’s inflation is anticipated to rise in 2021 on the back of looser monetary conditions and resilient domestic demand.
As of year-to-date (YTD) Q3 2019, South East Asia registered a growth rate of 12.3% in international visitor arrivals, a 2.1% increase from the same time last year. While Malaysia recorded year-over-year (YOY) growth of 3.7% as of YTD September 2019, a five-year compound annual growth rate (CAGR) of 0.1% reveals that the country continues to miss tourism goals and struggles to attract more tourists.
Vietnam achieved the highest CAGR of 15.4%, followed by Indonesia (12.4%) and Myanmar (9.2%). The strong tourism demand has been driven by an increase in flight connectivity and concerted tourism efforts by the government, such as easing of visa restrictions, developing infrastructures, supporting tourism enterprises, and the promotion of tourism campaigns.
Looking forward, the Indonesian government has actively promoted its "10 New Balis" program, established in 2018, to develop and promote several destinations beyond Bali, including Mandalika in West Nusa Tenggara, Thousand Islands in Jakarta, Tanjung Lesung in Banten, Tanjung Kelayang in Bangka Belitung, Borobudur Temple in Central Java, the Bromo Tengger Semeru National Park in East Java, Labuan Bajo in East Nusa Tenggara, Wakatobi in Southeast Sulawesi, and Morotai in North Maluku.
In conjunction with Visit Malaysia 2020 (VM2020), Tourism Malaysia has recently launched a digital initiative, the VM2020 Website Campaign, which aims to entice and showcase various destinations in the country to more tourists.
In early 2019, the Myanmar government launched the Myanma Tourism Bank to spur development in its growing tourism sector by offering low interest loans to tourism enterprises.
In the Philippine government’s National Tourism Development Plan, the country seeks to spur growth and development through foreign direct investment by showcasing attractive areas in the Tourism Enterprise Zones.
Singapore has also announced mega projects to fuel long-term tourism including the Greater Southern Waterfront development, Mandai eco-tourism hub, Jurong Lake District’s seven-hectare tourism development, and the expansion of the two integrated resorts.
Apart from an effort to further develop less well-known tourist sites and diversify tourism products, Vietnam will soon launch a new tourism marketing campaign, #VietnamNOW, to build awareness of the country’s tourism assets andevents.
Vietnam achieved the highest CAGR of 15.4%, followed by Indonesia (12.4%) and Myanmar (9.2%). The strong tourism demand has been driven by an increase in flight connectivity and concerted tourism efforts by the government, such as easing of visa restrictions, developing infrastructures, supporting tourism enterprises, and the promotion of tourism campaigns.
Persian
