How important is the tourism sector for the ASEAN economy? It is a question that many would be able to answer without much hesitation. After all, the region attracts over 100 million tourists each year, contributing 12 % to its gross domestic product( GDP) and 3.7 % to employment in 2015. In addition, the sector has proven to be resilient in the face of the current challenging economic climate. It comes as no surprise that the tourism industry was selected as one of the priority sector to be given special attention in the implementation of the ASEAN Economic Community( AEC).
Southeast Asia is blessed with rich natural resources and culture. This is evidenced by the United Nations Educational, Scientific and Cultural Organisation( UNESCO) which has pinpointed 37 World Heritage Sites in the region. Many entrepreneurial SMEs in the region have tapped on this huge tourism potential to develop diverse tourism products ranging from accommodation, transportation services, food and beverage( F & B) services, retail trade, recreational industry, and travel agencies.
Among the key catalysts for the growth of the sector is the increase of new middle class within the emerging economies in the region with more disposable income for travel. A closer look at the numbers reveals that over 75 % of the international arrivals to the region come from Asia, out of which, more than half comprise of intra-ASEAN travelers.
The emergence of low-cost carriers plying routes in the region such as Air Asia, Jet Star, Tiger Airways and Cebu Pacific had also served as game-changer in boosting the tourism sector by making air travel more affordable. Capitalising on the massive tourism opportunity in the region has made Tony Fernandez, the founder and CEO of Air Asia a regional entrepreneur icon and a global household name.
Moreover, advances in the telecommunication sector with
ISSUE 2: 2016 | ASEAN COMMUNITY OF ENTREPRENEURS 55