Today we are going to step into recovered stage after the heavy wave of Covid-19 hit. The life become a new normal. Post Covid-19 is a right time for global tourism industry to organize responsibility and sustainability. Therefore, the new tourism investment is going to adapt new land with new behaviors.
The concept of sustainable investment is based on 4 pillars of a destination to invest including (1) convenient environment, (2) convenient conditions and policies, (3) infrastructure and (4) natural resource.
The investors are going to consider these indicators to ensure their business growing well. The strength of entrepreneur is the health of national economy. Therefore, the root of sustainability is from the early stage of investment decision.
The 4 pillars of competitive advantages among nations are determinants for tourism investments. The sustainable tourism is come from Tourism Competitiveness index of each countries. It creates a glue for a value chain from competency of the nation to the capacity of the enterprises.
In the development process, disasters and diseases give business disturbance in a mean while. However, the competitive advantages for investment are immediately stronger at recovered stage because of the withdraw of FDI from one country to another country. This right time is opportunity for countries reopen quickly if they can take these following competitive advantages.
- Convenient environment.
Business environment is more comfortable. The countries will give more incentive policies for investment. Foreign investment is protected by competitive legal framework such as taxation incentives for foreign direct investment (FDI). The administrative capacity of the nation is also more quickly than before; especially for cost and time for approval construction.
Safety and security are the most determinant element for tourism investment at recovered stage among countries. During pandemic, the economies are rapidly going down. It causes jobless and crime. FDI will be poured into the countries which can control these negative social impacts.
Health and Hygiene are necessary factors for investment competitive advantages. The conditions on cleanliness and quality are noticed by tourism investors. Especially, the healthcare system of the nation at pandemic stage is the ruler for this indicator. It proves reputation for the nation in calling for FDI.
Human resource and labour market in recovered stage are a big competitive advantage. The joblessness is extremely increased at the pandemic. It makes a huge crisis for the education and employment. Tourism jobs is about 50millions lost. New investment at recovered stage is a smart strategy to rescue employment status. It brings recovery for labour force and balance labour market. The cost of labour is an economic advantage for investors.
ITC readiness at recovered stage is at the throne. Almost tourism services are served via internet. The social distancing measure to response pandemic changed customer behaviors. Tourism activities are conducted on internet before tourists come to the place for touching enjoy. This issue is related to the nation competitive advantage for FDI. However, the control of fake news of pandemic and hacker prevention of governments cause limited internet connection. This measure affects to competitive readiness among countries when the information is hard to assess.
- Policy and convenient condition.
Foreign investors will consider countries that have high prioritization in tourism investment in comparison of other industries after pandemic. Through this indicator, the investment can be attracted if the government will allocate budget, correspondent resources for tourism development projects.
International openness will be stronger in recovered stage to rescue the economies. Actually, tourism is the best recovered industry. The international openness for transportation and accommodation investment bring the connected readiness for tourists. Moreover, new bilateral and multilateral agreements among countries opened after pandemic will attract more FDI, especially for tourism industry.
Price competitiveness is one of indicators attracting FDI at recovered stage. The lower price caused by pandemic is a convenient condition for investment. The advantage pushes tourism investors putting their eyes to tourism resources.
Environmental sustainability is redetermined at recovered stage. In fact, the response measures for pandemic reduces environmental overloading. For example, physical distancing, isolation and quarantine is implemented at least one month during pandemic stage. The limited human activities making empty society increases fresh air at big cities. By contrast, poor living air destinations still give negative impact for the virus growing up. The two sides of the issue are element for investor to choose places for responsible investments.
Air Transport Infrastructure is most vulnerable sector that is needed to be recovered immediately after pandemic. New alternative investments for airlines are also strong solution to rescue tourism economy because it is the root of international customer reach.
Ground and port infrastructure are important indicators for new investors to consider where to grow. This competitive advantage makes convenient for construction resource transfer and for various access for tourists.
Tourist Service Infrastructure is determinant for new investment in recovered stage. The available services at a destination such as hotels, resorts, restaurants, shopping centers or not available is a measure to invest new service and experience. For example, the collapse of F&B sector due to the pandemic will be a push for new investments.
- Natural Resource
Post Covid-19 is a clear nature. In some countries, the occupied land is returned for real tourism investment. It is not for land purchasing real estate but it is a process of sustainable tourism investment. The social factors are improved if there are tourism investment projects implemented. The natural resource is the precious assets for governments and enterprises to maintain. Accordingly, the real competitiveness of a nation via natural resource for tourism development is the pillar for sustainability.
In conclusion, the competitive competency among countries at recovered stage is happening strongly. One of responses for economic rescue is the call for new investments, especially FDI. Accordingly, the above four pillars for tourism investment will be improved quickly. The investment sustainability from governments and investors is adjusted. It leads to soon recovery.
”Hanni TranDirector of Asia, Global Tourism Forum