Critical Issues in Tourism in the Asia Pacific Region - Case Study Example

Critical Issues in Tourism in the Asia Pacific Region Student’s Name: Institution: Date: Critical Issues in Tourism in the Asia Pacific Region Executive Summary The Asian Pacific region is experiencing an increase in the number of visitors who tour various destinations. Southeast Asia in particular has experienced more visitors in the last four years even though major global economies are yet to recover fully from the effects of the global financial crisis. Many countries in Southeast Asia are members of ASEAN and through this regional body they have introduced policies that allow free movement of goods and people within their borders. However, all countries in the region need to come up with joint tourism plans to encourage more tourists to visit several locations on guided tours. This approach will encourage more investors to allocate capital to fund high quality improvements in the regional tourism sector. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Discussion 4 Positive Factors Attracting Visitors 4 Regional Tourism Trends 7 Recommendations 10 Conclusion 11 References 12 Introduction The Asia- Pacific region has experienced an upsurge in tourist numbers in the past two decades. The AFP reports that China and Southeast Asian regions will experience an increase in traveller numbers as shown by tourist figures recorded in the first six months of 2013 (AFP 2013). It is estimated that there was an increase in the number of visitors that toured specific Asian and pacific regions by six percent in 2012. However, Southeast Asia in general showed a lot of potential recording more than 12 percent increase in visitor numbers in the first six months of 2013 (AFP 2013). These figures indicate that tourism will continue to play a key role in increasing economic growth in these Southeast Asian countries. This paper will discuss critical issues that affect tourism in the Asia Pacific region. Discussion Positive Factors Attracting Visitors The Asia Pacific has experienced an increase in the number of visitors in recent years. There are many factors which have stimulated interest in the Asian Pacific region by foreign visitors. As the economy in several countries in the region improves, tourism will continue to grow bringing in more foreign exchange revenues. Countries that are projected to receive an increase in visitor numbers include Vietnam, Myanmar, Indonesia, Philippines, Cambodia, Malaysia and Thailand. The number of visitors is projected to increase due to the fact that more Chinese visitors will be coming to the region (Kaosa-ard 1994). Statistics indicate that Chinese tourists are the largest spending visitors in international tourism because there are many people in the country who are experiencing an increase in incomes. The improvements being experienced in living standards in Asian countries have encouraged more people to travel to various regions to experience tourism services that are offered there. Some key south east Asian destinations were not affected by the global financial crisis that occurred in 2008 to 2009. For instance, Malaysia tourist arrivals increased by more than 14% in October 2009 compared to the same period the previous year. Even though visitor numbers from North America and many other countries in Europe have declined, the region still receives a lot of visitors from the Middle East, Japan, India, Australia, Britain and China. Many countries are implementing favourable tourist policies to attract more visitors from abroad. For instance, Malaysia and Indonesia are attracting more Muslims from several countries in the Middle East (Salman & Hasim 2012). The two countries are predominantly Islamic and as a result, many Middle Eastern travellers cherish the experiences they get while there. It is estimated that more tourists coming to Southeast Asia and Pacific come from various Asian countries. The region has a lot of diverse tourist attractions spread out in different countries which are in close proximity to each other. Visitor numbers from traditional key source markets such as Japan, South Korea, U.S., Canada and Europe have been dwindling compared to visitor numbers from India, Australia, China and other ASEAN regions. It is estimated that about 60% of tourist arrivals in various Southeast Asian destinations come from China, India and within the ASEAN region (Salman & Hasim 2012). Southeast Asian Pacific countries have improved economic and political ties which have encouraged more people in the region to visit their neighbouring countries more often than in the past. Southeast Asian economies are also more involved in global trade and this explains the increase in the numbers of foreign visitors to the region. Therefore, many tourist destinations in the region find it easy to attract visitors from diverse backgrounds who seek different tourism experiences. Figure 1 showing the number of Tourist Arrivals in South East Asia between 2007 and 2011. Source: http://www.tigermine.com/2012/12/18/changing-demographics-tourism-southeast-asia/ Many countries in the region are projected to experience positive economic growth in all key economic sectors in the next five years. It is estimated that about half of all households in Southeast Asia and Pacific have attained middle class status. Improvements in economic prosperity being felt across the region will continue to attract more investments in the tourism sectors of various countries across the region and this will be beneficial to long term tourism growth (Cohen 2008). Many countries in the region are represented in the ASEAN Economic Community (AEC) and they have integrated their political and economic policies to compete favourably with other global economic regions. As a result, they have implemented similar tourism policies to ensure they initiate common approaches that are beneficial to different tourism industry players across the region. Some of the beneficiaries of economic integration have been citizens of different countries in south east Asia and the Pacific. AEC member state citizens are exempt from visa requirements when visiting different destinations in the region and this has made them more interested in learning about the cultures practiced in their neighbouring countries. Air travel policies in many countries have also been liberalised and they have attracted higher numbers of low cost airlines into the industry (Hall & Page 2012). As a result, airline companies are partnering with tour companies in the region to offer attractive packages to regional travellers to encourage them to try out various attractions in neighbouring countries. The AEC has made the ASEAN region to have an integrated tourist market that encourages increased interactions between people from different social and economic backgrounds in the region. This factor is expected to push up the number of visitors that tour different destinations in the region for various reasons. Regional Tourism Trends Visitors from different regions that come to Southeast Asia and Pacific destinations have their own unique preferences. Tourists from India, China and the Middle East are more interested in visiting various geographical and cultural sites to increase their familiarity. They prefer package tours that help them visit more locations within a short time and as a result, they tend to rely on agents when planning their tour itineraries. This differs greatly with the habits and preferences of European, Canadian and American tourists that come to the region. North American and European tourists are interested in adventures, game drives, wildlife and beach sunbathing (Hall & Page 2012). These tourists are likely to spend more time sampling different attractions across the country than Asian tourists. Some of these tourists are second time or third time visitors compared to many Asian tourists who are typically first time visitors to the region. There will be significant changes in the tourism sector across the region due to these habits and preferences. Tourism industry players are likely to focus more on luxury packages to attract high end visitors who are willing to pay premium prices for high quality services. For instance, luxurious cruises that are increasingly attracting high end tourists willing to spend more money in various destinations in Southeast Asia and Pacific. Thailand, Philippines, Indonesia and other countries in the regions have long beaches which are spread out on different islands which are attractive to high class tourists willing to sample a unique travel experience (Sien 2003). For instance, wealthy Middle Eastern tourists prefer to visit Malaysia and Indonesia due to relaxed visa regulations to in comparison to other destinations in Europe and North America. They spend their stays in luxurious four star of five star hotels compared to European backpackers who stay in low cost hotels. Since many Asian countries have high populations, low cost airlines are preferred by many travellers who wish to travel to various destinations at a low cost. Therefore, Indian, Chinese and some Middle Eastern first time travellers are encouraged to tour different countries in the region to sample various attractions that exist there. Low cost air travel has had a significant impact on increase in tourist numbers in the region because it is estimated that more than half of all international tourists prefer travelling to tourism destinations by air. These airlines have established strong commercial relationships with tour operators and hospitality firms (Greene 2012). As a result, these partnerships have eliminated bureaucratic processes that restrict international travel. As a result, tourists are not discouraged to make bookings to various destinations they want to travel to by ineffective visa policies. Cultural tourism is experiencing a lot of growth in the region because many countries have opened up to foreign visitors. For instance, there are more people who come to visit Buddhist sites in Thailand, Vietnam, Cambodia and Myanmar to familiarise themselves with the history of important cultural sites. The Thai traditional year attracts a lot of visitors to the country who are interested in taking part in the festival that has a lot of cultural importance to many Thais (Hitchcock, King & Parnwell 2009). They also get to sample popular Thai cuisine consisting of rice noodles, bean curd, peanuts, vegetables and shrimp, commonly known as Phat Thai. These rewarding experiences encourage visitors to establish positive inter-cultural interactions in different countries in the region with various people. As a result, south Asia and Pacific is expected to continue experiencing increases in the number of visitors that come to the region. There are many opportunities which major tourism players in the region can take advantage of to extend their influence. Many countries in the region have established policies that encourage visitors from other parts of Asia to visit and spend their time there. Some countries such as Philippines and Thailand are cleaning up their sleazy image because many travellers associate them with sex tourism (Tham 2012). For instance, the Pattaya resort in Thailand has a high number of commercial sex workers and adult night clubs that attract sex tourists from different parts of the world. Since there are significant numbers of tourists that come to the region from China, India and the Middle East, Southeast Asian countries have encouraged more investors to set up new facilities to cater for the increasing number of tourists interested in coming to the region. Recommendations Southeast Asian destinations need to come up with packages that can attract new categories of tourists who are willing to spend more. Other countries need to follow the example of Malaysia, Philippines and Thailand which have been able to raise the profiles of their respective tourism industries globally. They need to attract high end consumers who are willing to part with significant amounts of money for a rewarding foreign visit experience (Tham 2012). This will improve their ratings internationally and more tourists will be encouraged to sample different attractions that exist in the region. There are significant numbers of middle and high income tourists from China, Singapore, India and the Middle East who are interested in touring various countries in the region. Therefore, the ASEAN regional integration provides a lot of opportunities for these countries to work together to increase the number of days visitors stay within their borders to increase their earnings. Southeast Asian governments need to relax travel and trade restrictions that discourage visitors from moving freely within their borders. Many Chinese travellers prefer moving in guided tours as they go for sight seeing in different locations. Therefore, neighbouring countries with diverse attractions can conduct joint marketing campaigns to attract these tourists to move between countries easily without a lot of inconveniences (Truong 2011). This approach will help them save high costs incurred on tourism marketing drives and it will also help them improve the quality of services they offer. Joint marketing plans will also encourage airlines to review their ticket prices because they will be interested in taking advantage of increasing numbers of travellers to these destinations. This approach will ensure all destinations in the region benefit from increased numbers of visitors wishing to sample different attractions. All countries in the region need to come up with effective laws to clean up their image internationally. For instance, Philippines and Thailand need to clean up their reputations as some of the top sex tourism destinations in the world. These countries need to crack down on prostitution and other vices that make them not to attract conservative and wealthy visitors. Myanmar, Laos, Indonesia and Cambodia need to work harder to reduce incidents of corruption at cross border points to make it easy for visitors to move around. They also need to improve on their security to ensure tourists feel safe whenever they tour different attractions (Truong 2011). All countries need to ensure that their tourism practices are sustainable because they are prone to natural disasters such as tsunamis, earthquakes, floods and typhoons. Therefore, they need to enact effective disaster management programs to safeguard the wellbeing of all visitors and locals. Conclusion Southeast Asian countries need to implement policies that can encourage more tourists to visit. They also need to focus on attracting visitors that are willing to spend more money and time touring different attractions in various locations. This will improve the competitiveness of their local tourism sectors in the long run. References AFP 2013, ‘China and Southeast Asia to experience tourism boom’, The Malay Mail Online, 6 November, viewed 25 November 2013, . Cohen, E 2008, ‘Southeast Asian ethnic tourism in a changing world’, Asian Anthropology, vol. 7, no. 1, pp. 25-56. Greene, W 2012, ‘The changing demographics of tourism in Southeast Asia’, TigerMine Research, 18 December, viewed 25 November 2013 . Hall, M & Page, S 2012, Tourism in South and Southeast Asia, Routledge, New York. Hitchcock, M, King, VT & Parnwell, M 2009, Tourism in Southeast Asia: challenges and new directions, Routledge, London. Kaosa-ard, MS 1994, ‘Thailand’s tourism industry: what do we gain and lose?’, TDRI Quarterly Review, vol. 9, no. 3, pp. 23-26. Salman, A & Hasim, MS 2012, ‘Factors and competitiveness of Malaysia as a tourist destination: a study of outbound Middle East tourists’, Asian Social Science, vol. 8, no. 12, pp. 48-54. 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