Published on : Wednesday, October 19, 2016
The World Travel & Tourism Council (WTTC) says that investment in travel and tourism infrastructure with Asean over the next decade will grow faster than the global average, but few regional markets are not investing enough to go with the expected tourism boom. For example, Myanmar, Philippines and Cambodia are already facing infrastructure constrictions, but are not investing enough funds for developing their airports, hotels and tourist attractions. Asean will account for almost 10% of global investment in T&T infrastructure between 2016 and 2026, which is around US$782 billion.
WTTC Chief Executive and President David Scowsill said that “Investment in infrastructure is critical to the future sustainability of travel and tourism.” Travel and tourism are two pillars of growth for the Asean contributing a collective 12.4% GDP for the 10 member states in Asean. Asean states are further supported by their proximity to the major outbound market of China and their price competitiveness. Five major Asean destinations will get the benefit of US$782 billion to be spent as investment: Singapore, Thailand, Vietnam, Indonesia and Malaysia. Across the Asean, many other countries need to expand their capacity by increasing tourist accommodation, airport capacity, developing infrastructure and increasing tourist facilities. Insufficient infrastructure negatively impacts tourist experience. WTTC said that air and ground transport should be principal priorities for investment in Vietnam, Myanmar and Cambodia. Thailand and Philippines should benefit from better investments in ground transportation. Tourists are increasing in Myanmar and hotel room request is on the rise. Singapore is investing rapidly in its strong T& T infrastructure and Changi Airport is due to open Terminal 4 in the second half of 2017. Terminal 5 will also come up in the middle of the next decade.