Sustainable Tourism After COVID-19

Insights and Recommendations for Asia and the Pacific

• Publisher: Asian Development Bank
• Year: 2021
• ISBN:
  9789292692575
• Topic: Negocios y empresa
• Subtopic: Hostelería, viajes y turismo

The coronavirus disease (COVID-19) pandemic has devastated tourism in Asia and the Pacific, exposing the region's dependence on the sector. This publication examines the prepandemic tourism system, the impacts of COVID-19, and how tourism in the region might be reset to contribute more effectively to the Sustainable Development Goals. It highlights six pathways for promoting systemic change in the sector: a value-driven approach, decarbonization, tourism-led regeneration, improved governance, and sustainable finance. It provides concrete recommendations on how policymakers and industry stakeholders can leverage tourism to foster sustainable development and a green recovery in Asia and the Pacific.

1 Introduction

Rationale for the Report

Tourism has become one of the most important export earners for countries in Asia and the Pacific. It generates jobs and provides livelihoods to those in remote areas and can contribute to environmental protection by using revenue to support preservation. At the same time, sector growth often creates external costs for communities and the environment, and economic benefits are not always distributed equitably. The question of how to maximize benefits while minimizing pressures is central to decision-makers in the field.

The coronavirus disease (COVID-19) has put a halt to many forms of tourism, creating major impacts on associated industries and communities. However, this pause presents a window to reflect on the prepandemic tourism system, its trends, vulnerabilities, and opportunities. This window provides opportunities to “reset” tourism and to ensure it generates better sustainable development outcomes (United Nations 2020). This report describes the impacts of COVID-19 on tourism and seeks to assess the potential of the sector to contribute to the Sustainable Development Goals (SDGs) in Asia and the Pacific.

This chapter establishes a framework for interpreting tourism in the context of the SDGs, recognizing multiple facets of the tourism industry, including destinations and their socioecological systems, marketing, policy and investments, regional cooperation, and global frameworks. Chapter 2 provides a synopsis of how tourism can be sustainable, while Chapter 3 describes the impacts of COVID-19 on tourism in the region and immediate responses to the crisis. Chapter 4 provides three in-depth assessments of gender and select markets, and Chapter 5 explores future pathways for tourism. Chapter 6 makes policy recommendations for “building forward better.” The report is intended for policymakers engaged in tourism and related sectors, and will also support organizations involved in overseas investment, development, and cooperation.

Defining a Framework for Sustainable Tourism

Tourism involves experiences away from home. Despite drastic changes in the industry, the core motives of travelers have remained much the same. These include the desire to escape, explore, and relax; and to achieve prestige, deeper relationships, and education. However, COVID-19 may have changed the priorities of tourists.

Tourism is often not well understood since it impacts many different economic sectors, people, and locations. It is therefore important—at the outset—to define sustainable tourism and a framework for analysis. Sustainable tourism is not only ecotourism or tourism that is self-sustaining. Richard Sharpley—when reflecting on 20 years of progress in sustainable tourism—argues that the concept of sustainable tourism is often a form of “greenwashing” and that international investment has often focused more on the growth of tourism (jobs and income) than on how tourism can be used to increase well-being. With the onset of COVID-19, however, the notion that sustainable tourism can enable transformations in the industry has gained momentum. Sustainable tourism is therefore tourism that helps to achieve the SDGs, revives the environment, or enables tourists and host communities to thrive.

Sustainable tourism is not a special form of travel, but all forms of tourism can become sustainable and support development. Achieving this requires a focus on the needs of local communities and the environment. In the broadest sense, tourism can contribute to all SDGs if it receives support from a range of international stakeholders (Figure 1). Research by the United Nations (UNWTO and UNEP 2017) suggests that tourism is most equipped to support three specific goals—SDG8 (Decent Work and Economic Growth), SDG12 (Responsible Consumption and Production), and SDG17 (Partnerships). This report highlights the links between tourism and the SDGs and provides recommendations on how to maximize complementarities in the future.

Figure 1: Sustainable Development Goals That Tourism Can Support

Source: Tourism for SDGs.

To enable a systematic assessment of the impacts and opportunities associated with COVID-19, the report develops an analytical framework to capture key dimensions of tourism (Figure 2). The framework builds on models that look at tourism in the context of visitors, industry, community, and the environment (VICE) (Sleeman and Simmons 2004). The framework in this report adds to the VICE model by considering factors that can help achieve the SDGs and ensure tourism activities remain within global and local carrying capacities (Rockström et al. 2009).

Figure 2: Sustainable Tourism Framework to Assess Contributions to the Sustainable Development Goals

Source: Authors.

2 Pre-COVID-19: Tourism and Sustainable Development in Asia and the Pacific

This chapter describes growth in the tourism industry and how the sector contributed to achieving the SDGs before COVID-19. It examines different dimensions of the tourism industry through the VICE model, describing how the visitor, industry, community, and environmental dimensions of the tourism sector can be meaningfully integrated into development planning; and conversely, how development planning can support sector growth.

The Visitor Dimension

The “visitor” dimension of the VICE model considers who travels, where, and how they do so. This is most relevant to SDG 8 (decent work and economic growth), SDG 10 (reduced inequalities), and SDG 12 (responsible consumption and production). Visitors generate expenditures, jobs, and income, which support SDG 8, particularly in rural communities. The visitor dimension is also relevant to SDG 10, as increased visitor arrivals and the associated demand for transport services can improve access to mobility. The way visitors behave, and whether they consume responsibly, has impacts on communities and the environment, which relates to SDG 12 (Goodwin 2012). Key patterns and trends of visitors to consider include the following:

(i)International and domestic tourism. Considerable growth in tourism over the 2010s increased economic opportunity but also increased reliance on international arrivals. Some countries are beginning to develop domestic markets in response.

(ii)Market segments. There is increasing recognition that different market segments bring different “value” to destinations. However, there are insufficient tools and strategies in place for targeting and attracting particular visitor groups effectively.

(iii)Travelers and the environment. Tourists are showing a growing interest in environmental sustainability, but there is limited information on how this translates into action.

Tourism Growth and Market Segments

In 2019, there were about 1.5 billion international tourists, and Asia and the Pacific was one of the fastest growing regions for tourist arrivals. From 2006 to 2019, international arrivals more than doubled to 364 million, and recent growth was particularly strong, with countries in Asia (including Maldives and Myanmar) recording double-digit growth from 2018 to 2019 (UNWTO 2021).

However, when considering the impacts of visitor arrivals on sustainable development (and SDG 8 in particular), it is important to consider several factors beyond international arrival statistics. For instance, the origin of travelers (whether they are domestic or international) and the tourism market segment (such as business or leisure) can impact their economic contributions and the resilience of a given market to local and external shocks.

Before COVID-19, many countries focused on promoting international tourism. This is evidenced by investments in international marketing and product development geared toward international visitors. International tourism results in foreign exchange earnings and input into the national economy, which makes it attractive to the public sector. However, domestic tourism volumes often outweigh international arrivals. Furthermore, arrival data highlights that shocks (such as extreme weather events) can create significant volatility, particularly for international arrivals. As such, a higher ratio of domestic against international travelers can increase the resilience of tourism industries to external shocks (Becken and Pant 2019). Despite the importance of domestic tourism to market growth and resilience, many countries know little about their existing or potential domestic markets. Further work also remains to increase visa equality and access to global mobility, in support of SDG 10 (Box 1).

Box 1: Visa Inequality

Visas are an important factor that affects where travelers hail from, and their access to mobility. Research indicates persistent issues of unequal access to visa privileges for citizens of different nations. Using information from Australia, New Zealand, the United Kingdom, the United States, and the Schengen Group, researchers have explored how passport holders from India, the People’s Republic of China (PRC), Thailand, and Viet Nam, are affected. The study reveals that visa policies are primarily driven by economic (and subsequently), political, cultural, and even airport operational reasons. The analysis reveals that the PRC passport holders enjoy greater freedom to travel than, for example, travelers from India and Viet Nam. Disadvantages relate to visa costs, processes, and biometric requirements. Greater transparency is required to balance national interests with equal access to mobility for visitors, as indicated in the Sustainable Development Goals. The coronavirus disease (COVID-19) pandemic has the potential to exacerbate inequalities, especially if vaccine access remains imbalanced globally.

Sources: T. D. Pham et al. 2020. Visa Policies and Tourist Mobility of Asian Markets: Key Challenges and Determinants. Tourism Management Perspectives. Unpublished; and Authors.

Whether international or domestic, it is also important to note that there is no direct correlation between the number of visitor arrivals and economic growth. For instance, the People’s Republic of China (PRC) recorded a 7% increase in international arrivals from 2018 to 2019, while expenditures decreased by 12% during the same period. Market segments can significantly affect the economic benefits of tourism in each country. For instance, business travelers generally spend more than tourists in other market segments, and as such, it may be useful for countries to identify the market segments of arrivals. Wellness tourism is another high-yield sector and has experienced considerable growth in recent years.

Box 2: Wellness Tourism

Wellness-related industries contribute 11% of economic output in Asia. Wellness tourism—which is a significant component of the wider industry—generated about $639 billion in 2017 globally, and $137 billion in Asia and the Pacific. The wellness tourism industry is growing twice as fast as other forms of tourism, and the yield of wellness visitors is considerably higher than that of other tourists. Several countries (including Bhutan, India, Malaysia, the People’s Republic of China, the Philippines, and Sri Lanka) incentivize businesses setting up wellness programs. Sri Lanka and Thailand have wellness marketing strategies. Investments in the segment may prove beneficial following the pandemic when travelers are likely to be more health conscious. Wellness tourism diversifies visitor economies and spreads risks associated with concentrated market segments such as the vulnerability of beach tourism to climate change.

Sources: ADB. 2020. Asian Development Outlook 2020 Update: Theme Chapter: Wellness in Worrying Times. Manila; and Authors.

Countries may be even more interested in attracting high-spending visitors after the pandemic. However, there is a growing emphasis on the notion of “value.” The consumer trend for organic products, health, and wellness provides a pertinent example of how a focus on quality helps achieve higher returns, as customers are willing to pay a premium. Some countries—such as Bhutan—have developed policies to manage growth and attract higher spending visitors. In Bhutan, visitors have to buy “minimum daily packages” ($250 per day) that cover loca...