Malaysia has 'most favourable conditions' for tourism recovery

Malaysia has have some of the most favourable conditions for tourism recovery in the region. — LIM BENG TATT/The Star

Malaysia, Singapore and Australia have some of the most favourable conditions for tourism recovery in the region, according to a new international travel index.

The Economist Intelligence Unit (EIU), through its Asia Travel-Ready Index, ranked Malaysia favourably in terms of local vaccination coverage and ease of travel.

“For tourists, compliance procedures, such as quarantine requirements for infections, testing, and insurance mandates are critical factors that will affect their decision to travel. These compliance requirements add very high costs to travellers, and complicated requirements will drive tourists away to ‘freer’ destinations,” said EIU country analyst (Asia) Liuqing Yu.

Fully-vaccinated visitors and Malaysians now no longer have to quarantine upon arrival to the country. However, they must undergo an RT-PCR test at least two days before departure and a professional rapid test (RTK-Antigen) upon arrival.

According to the index, travellers care more about restriction measures and a quarantine-free travel initiative – like the one currently practised in Malaysia – is much welcomed.

Countries such as the Philippines, Indonesia and Vietnam have received lower scores, due to their respective local vaccination coverage and quarantine policies for returning citizens.

Meanwhile, north-east Asian economies such as China, Hong Kong, Taiwan, and Japan have placed at the bottom of the index. This is because they have been slower to reopen and face restrictions under China’s zero-Covid-19 policy.

However, EIU believes that a full tourism recovery in Asia is only likely to happen in 2024. This is when Chinese tourists resume international travel and confidence in travel among consumers and businesses is restored more substantially.

“Full recovery remains nowhere near, as Chinese tourists are not coming back anytime soon under ‘dynamic zero-Covid-19’. We expect China only to fully reopen the border from end-2022,” Yu explained.

China’s dynamic zero strategy involves stopping infections with strict mitigation measures. This is in contrast to the approach adopted in other countries that rely on high vaccination rates and moderate mitigation like masks in an effort to live with Covid-19.

“Attempts to attract Chinese tourists by negotiating bilateral quarantine-free travel arrangements are unlikely to work, as they will strictly follow zero-Covid-19 measures,” said Yu.

Another interesting finding from the index is that there are still risks that could derail tourism recovery. These include a new virulent variant of Covid‑19 that forces countries to reintroduce restrictions; higher oil prices that translate into higher airfares; elevated global prices that squeeze the purchasing power of consumers; and a financial crisis that shrinks the wealth of potential travellers.

However, Yu is optimistic about the trajectory of tourism in the region.

“Tourism in Asia is coming back in a big way, and most countries have been consistently reopening their borders,” he said.