Fulfilling the Promises of Travel and Tourism in
ASEAN
The travel and tourism (T&T) sector has become an important driver of growth and prosperity for many countries (see Box 1). It contributes to development by
creating jobs and enterprises through direct activities and backward linkages, provides additional incentives for infrastructure development, and earns foreign exchange
revenues. It is estimated that the T&T sector accounts for about 9 percent of world GDP and employment.1 Yet, despite its economic weight and the many benefits it
provides, numerous obstacles hinder its development. Launched in 2007, the World Economic Forum’s Travel and Tourism Competitiveness Index (TTCI) aims to identify and measure the obstacles to and enablers of, T&T development. The present study analyzes the performance of eight member countries of the Association of Southeast Asian Nations (ASEAN) in the TTCI, namely Brunei Darussalam, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.2 Undoubtedly, the Southeast Asia region has many assets to lure the visitor.3 It boasts some of the world’smost spectacular landscapes and attractions, vast ecosystems with stunning wildlife, and rich culture and history. There exists a long tourism tradition in parts of the region. The T&T sector is estimated to account for 4.6 percent of ASEAN GDP and 10.9 percent when taking into account all indirect contributions.4 It directly employs 9.3 million people, or 3.2 percent of total employment, and indirectly supports some 25 million jobs.Tourism performance is mixed, however. The sector is well developed in some countries and only nascent in others. Malaysia is one of the world’s top10 destinations, with about 25 million visitors per year,
while the Philippines, despite its much larger population,attracts six times fewer. Tourism accounts for about 15 percent of Cambodia’s GDP, but just 1 percent of Indonesia’s (see Table 1).Indeed, diversity is one of the region’s defining characteristics. From a tourism perspective, this represents an important asset. The region can offer very diverse and complementary experiences and attractions and appeal to visitors of all types. A true social, political,and geographical patchwork, it brings together a diverse set of economies. Singapore is 80 times richer than the least developed country, Myanmar. Indonesia is 600
times more populous than Brunei Darussalam. The coasts of the Philippines stretch over 36,000 km, while Laos is landlocked.Furthermore, the region is uniquely positioned at
the heart of Asia, the world’s most dynamic region. It is situated between China and India, two of the largest and fastest-growing markets, along with their rising middle classes. Richer countries, such as Japan, Australia, and even the Gulf countries, are not too far away. The region itself has been enjoying brisk economic development, which creates a greater need for business travel and also means more people can afford to travel . At the same time, the region remains relatively inexpensive by international standards, a strong argument to lure tourists from traditional markets, especially tourists from Europe, where the difficult economic situation makes them more price conscious.
creating jobs and enterprises through direct activities and backward linkages, provides additional incentives for infrastructure development, and earns foreign exchange
revenues. It is estimated that the T&T sector accounts for about 9 percent of world GDP and employment.1 Yet, despite its economic weight and the many benefits it
provides, numerous obstacles hinder its development. Launched in 2007, the World Economic Forum’s Travel and Tourism Competitiveness Index (TTCI) aims to identify and measure the obstacles to and enablers of, T&T development. The present study analyzes the performance of eight member countries of the Association of Southeast Asian Nations (ASEAN) in the TTCI, namely Brunei Darussalam, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.2 Undoubtedly, the Southeast Asia region has many assets to lure the visitor.3 It boasts some of the world’smost spectacular landscapes and attractions, vast ecosystems with stunning wildlife, and rich culture and history. There exists a long tourism tradition in parts of the region. The T&T sector is estimated to account for 4.6 percent of ASEAN GDP and 10.9 percent when taking into account all indirect contributions.4 It directly employs 9.3 million people, or 3.2 percent of total employment, and indirectly supports some 25 million jobs.Tourism performance is mixed, however. The sector is well developed in some countries and only nascent in others. Malaysia is one of the world’s top10 destinations, with about 25 million visitors per year,
while the Philippines, despite its much larger population,attracts six times fewer. Tourism accounts for about 15 percent of Cambodia’s GDP, but just 1 percent of Indonesia’s (see Table 1).Indeed, diversity is one of the region’s defining characteristics. From a tourism perspective, this represents an important asset. The region can offer very diverse and complementary experiences and attractions and appeal to visitors of all types. A true social, political,and geographical patchwork, it brings together a diverse set of economies. Singapore is 80 times richer than the least developed country, Myanmar. Indonesia is 600
times more populous than Brunei Darussalam. The coasts of the Philippines stretch over 36,000 km, while Laos is landlocked.Furthermore, the region is uniquely positioned at
the heart of Asia, the world’s most dynamic region. It is situated between China and India, two of the largest and fastest-growing markets, along with their rising middle classes. Richer countries, such as Japan, Australia, and even the Gulf countries, are not too far away. The region itself has been enjoying brisk economic development, which creates a greater need for business travel and also means more people can afford to travel . At the same time, the region remains relatively inexpensive by international standards, a strong argument to lure tourists from traditional markets, especially tourists from Europe, where the difficult economic situation makes them more price conscious.