APAC ranks well in the WEF Travel and Tourism Index; Singapore and Malaysia rank 9th and 38th respectively

Japan ranks first out of the 117 nations and territories analyzed. It is followed by the United States, Spain, France and Germany. Hong Kong SAR arrives at 19e.

Singapore is ranked 9e in World Economic Forum (WEF) Travel and Tourism Development Index 2021 (TTDI)generated by “the set of factors and policies that enable the sustainable and resilient development of the travel and tourism (T&T) sector, which in turn contributes to the development of a country”. Across the border, Malaysia takes 38ewhile Indonesia reaches the 32n/a position, Thailand the 36eVietnam on 52n/aIndia on 54eand the Philippines at 75e. Its economic counterpart Hong Kong SAR is ranked closest to Singapore at 19e.

Diverging, Japan ranks first out of the 117 nations and territories analyzed. It is followed by the United States, Spain, France and Germany. Australia is in the top 10, while New Zealand is in the top 30.

According to WEF analysts, Malaysia and India saw the “biggest declines” in the rankings, while Indonesia made the “biggest improvement” in the rankings. Vietnam, on the other hand, “saw the biggest improvement in their score”, which helped them climb the ranks to 52n/a from 60e in the old days.

To better understand the index, it works with a framework that covers five areas: “enabling environment”, “travel and tourism policy and enabling conditions”, “infrastructure”, “travel and tourism demand factors” and “ sustainability of travel and tourism”. . And in each area, it encapsulates the following:

  • For “enabling environment” – business environment, safety and security, health and hygiene, human resources and labor market, and preparation for information and communication technologies (ICT);
  • For “travel and tourism policy and enabling conditions” – prioritization of travel and tourism, international openness and price competitiveness;
  • For “infrastructure” – air transport infrastructure, land and port infrastructure and tourism service infrastructure;
  • For “Travel and Tourism Demand Drivers” – natural resources, cultural resources and non-recreational resources, and
  • For “travel and tourism sustainability” – environmental sustainability, resilience and socio-economic conditions, and travel and tourism demand pressure and impact.

These factors result in an overall score, which ranges from one to seven, with the latter being ranked as “best”. A quick glance, Japan has a score of 5.2 out of seven, while Singapore has a 5.0, Hong Kong SAR a 4.6, Indonesia a 4.4 and Malaysia and the Thailand a 4.3.

With that in mind, what this index has shown, analysts explained, is that T&T’s need for development has “never been greater” because the sector is “a major driver of economic development, global connectivity and livelihoods of some of the most vulnerable populations and businesses hardest hit by the pandemic.” Therefore, it was suggested that support for T&T development and recovery will be critical as support will contribute to global recovery, build resilience and support all who depend on the sector for work.

Furthermore, it was discovered that even though the T&T sector “faces difficult operating conditions”, there is a change in the “demand dynamics” which creates opportunities in the field through domestic tourism. and based on nature, the rise of digital nomads and “bleisure”. ”, an amalgamation of business and leisure travel. As such, there is a need for the sector to adapt under these conditions, highlighted in the Index report. Beyond this, T&T stakeholders should consider employing development strategies “to help the sector rebuild better”.

“Amid current challenges, changing demand dynamics, and future opportunities and risks, a more inclusive, sustainable and resilient sector can be – and must be – built,” the report explains.

“However, it requires thoughtful and effective thinking. It also requires leveraging development drivers and strategies, including: restoring and accelerating international openness and consumer confidence, through, for example, improved health and security; creating climate-friendly and inclusive labor, business, and socio-economic policies; increasing focus on environmental sustainability; strengthening tourism demand and impact management; and invest in digital technology.

The Asia-Pacific Index

Based on the results, the APAC region is the “second best performer” in the ranking, with Europe being the first. Of its 20 constituent economies, 12 have been identified to score above the TTDI average and 13 have improved their score since 2019.

Its performance is mainly attributed to how the region is home to some of the best combinations of natural, cultural and non-recreational resources, although analysts have noted that environmental sustainability challenges threaten its lead in natural resources. In addition, those with more developed economies have world-class transport, tourism, healthcare and ICT infrastructure, high levels of international openness and investment in T&T, business environments conducive environments, high performance for socio-economic resilience and a skilled and productive workforce.

On the other hand, those with less developed economies enjoy an advantage in terms of price competitiveness and rich natural assets that are often outweighed by shortcomings in the aforementioned factors such as tourism, health and sanitation infrastructure. ICT, international openness and socio-economic resilience.

“However, these gaps are closing somewhat, as APAC lower-middle-income economies have improved their performance, with particularly strong growth in areas such as ICT readiness,” the report said.

Read also: APAC Employers Can Better Understand Their Workforce With These Five Ways

Picture / WEF

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