Jakarta, January 29, 2021 — After a year of the world being hit by the Covid-19 pandemic, the rollout of vaccinations in various countries since late last year has sparked hope for the revival of activities that were hindering the global economy. Each country has its own preferences in choosing vaccines, including Indonesia, which opted for the Sinovac vaccine for its mass and free vaccination program targeting millions of citizens until 2022.

Indonesia officially began its vaccination program on January 13, 2021, with President Joko Widodo receiving the first shot as a symbolic start of the nationwide campaign. This initiative is expected to reopen mobility between regions and countries, as vaccinated individuals have a lower risk of contracting and spreading Covid-19.

With the reopening of borders and the resumption of people’s movement, the tourism industry is expected to gradually recover. Panorama (PANR) has noted several positive indicators pointing toward tourism recovery:

1. Inbound Travel Demand is Growing Again

Demand for travel packages is increasing both from domestic and international markets. Panorama’s inbound business unit has seen a rise in inquiries for 2021–2022, especially from ASEAN and European markets. Some travel agency partners from Europe have already booked group trips for Summer 2021 to popular destinations like Lake Toba, Java, and Bali.

It's worth noting that Panorama’s inbound unit, Panorama Destination (PDES IJ), had not received any guests since March 2020 due to travel restrictions for foreign tourists.

2. Domestic Tourism Remains a Pillar

With international tourists unable to enter the country and borders still closed in many places, domestic tourism has become the primary leisure option for Indonesians. Panorama, through its Panorama JTB unit, has curated various tour packages, including the popular staycation experiences in selected hotels that are still available through its distribution channels.

Domestic tourism is expected to continue dominating in 2021 in line with ongoing vaccination efforts. However, the implementation of regional restrictions (PSBB) in tourist destinations like Malang, Bandung, Yogyakarta, and Bali could impact travel.

3. Vaccine Certificates Can Accelerate Tourism Recovery

To ensure safer inter-regional and international travel, there needs to be valid proof of vaccination. The government is encouraged to prepare a standardized vaccine card or passport that is recognized both nationally and internationally.

In addition to vaccination documentation, travel insurance that covers Covid-19 and quarantine costs in destination countries is becoming essential. Turkey can serve as an example of a country already implementing travel insurance policies for visitors. The insurance industry plays a critical role in supporting this new travel landscape.

A Hopeful 2021 for Recovery

According to UNWTO’s year-end report, 2020 was the worst year in global tourism history, with international travel dropping by 1 billion trips or 74%. However, 2021 is projected to see improvements, particularly in the third quarter during the summer, driven by the early-year vaccination programs and emerging herd immunity.

Public response to vaccination has been generally positive, mostly due to two reasons: personal health protection and the ability to move more freely without having to take Covid-19 tests like rapid antigen or PCR.

“We constantly monitor the tourism industry and the overall market situation. We see encouraging signs of optimism and the industry’s readiness to resume operations with proper health protocols. Panorama continues to maintain strong communication with our partners at home and abroad to preserve trust. All of our business units have implemented health protocols in accordance with industry standards,” said Budi Tirtawisata, President Director of PT Panorama Sentrawisata, Tbk.
(sdw)