Behind the scenes of tourism’s ‘recovery’

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Hello readers,

Given that international travel remains a distant dream for the foreseeable future, I’ve been taking the opportunity to experience what my hometown of Singapore has to offer. I spent last Christmas Eve at the Universal Studios Singapore theme park and celebrated my birthday this year with a visit to the local aquarium, among other fun activities.

Indeed, many companies in the travel and tourism space claim that there are signs of recovery, fueled mostly by local tourists like myself. But the amount spent by bored locals pales in comparison to that of foreign tourists splurging on vacation, which begs the question: Is this recovery only skin-deep?

Today we look at,

• Whether the tourism sector is really on the road to recovery
• This Vietnamese fintech startup’s latest fundraise
• Other newsy highlights such as Xiaomi’s electric vehicle plans and Amazon’s latest acquisition in India

PREMIUM SUMMARY

Is tourism getting back on track?

The Covid-19 pandemic has hit the travel and tourism sector hard, but many players in the space say that they’re seeing some signs of recovery thanks to local tourism. But domestic travelers only spend so much – and they can’t make up for what international tourists are willing to shell out in dollar terms.

• The power of the local: Travel companies Klook and Traveloka have fared pretty well despite the challenges of 2020 because of domestic tourism. Traveloka recently declared that its core travel business was profitable, while Klook saw its bookings increase 5x between November and December last year.
• Pivots in progress: Online travel agents and marketplaces seem to be in a better position than traditional players, with many branching out into ancillary financial or software services in the pandemic. However, it’s still too early to tell if these moves will pay off.
• The big question: How exactly is recovery being measured? After all, booking volumes don’t necessarily translate to revenue, and locals usually pay cheaper rates than tourists. Plus, the extent of the recovery ultimately depends on the niches these companies serve, their relative capacities, and their reliance on foreign tourists before the pandemic.

Read more: The untold truth of tourism’s post-lockdown ‘recovery’

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