Tour operators, hotels and airlines are bracing for a rocky 2009 as the global financial crisis hits long haul travel. Asia has been experiencing a travel boom with a massive range of geography from the snow-capped Himalayas to some of the best beaches in the world. But last year saw a drop in numbers. This year, negative growth is expected all round. Let’s put this in context. The United Nation’s World Tourism Organization (UNWTO) showed the loss of tourism business most strongly in the Asia-Pacific region as compared to the Americas, the Middle East, Europe and Africa. This is echoed by the International Air Transport Association (IATA) which is warning that global airlines are facing possible collapse as revenues fall. The consequence is that between 300,000-400,000 jobs are at risk in air transport, travel and tourism sectors. Why is the fall so bad in Asia? The answer is this is not simply an economic problem. Tourism was doing well in India, Sri Lanka, Thailand and Macao until the news media began carrying stories of political and other problems. There was a major protest in Thailand that shut down Bangkok’s airport for a week. As a result, more than a million tourists cancelled their bookings. In India, the terrorist attack in Mumbai was directed at the top hotels and the tourists, and the result has been a general drop in travel to all Indian destinations, even those pure tourism areas like Goa – bookings down 25%. Sri Lanka has become a war zone in the public’s imagination and Macao’s visitor numbers have been affected by a cutback in the number of visas issued by China. These destinations are now anxiously courting business through promotional prices. Even the best hotels in the most favored destinations are discounting. (more…)