COVID-19’s Negative Impact on Tourism Employment in Asia and the Pacific Countries

According to a brief from the ILO, tourism in the Asia-Pacific countries has been suffering from job losses, deterioration in work quality, and shifts toward increased informality. Evidence from five countries - Brunei Darussalam, Mongolia, Philippines, Thailand, and Vietnam - demonstrates that job losses in tourism-related sectors in 2020 were four times greater than in non-tourism sectors. 

About ⅓ of the total job losses were linked to the tourism sector, with an estimated 1.6 million tourism-related jobs lost in these five countries alone. The ILO also estimates that pandemic-induced job losses will continue to drag down the region’s economies well into 2022. Even as borders reopen, international tourist arrivals are predicted to be slow in the near term. Given this, governments in tourism-rich countries are likely to seek broader economic diversification with the ultimate aim to create new employment opportunities in non-tourism sectors.

The pandemic did not affect all workers to the same extent. Women workers appear to have been particularly hit with an increased concentration of women carrying out food and beverage serving activities, the lowest-paid jobs in the sector.

A heavy impact on enterprises and workers in tourism at the country level:

• In the Philippines, employment losses and decreases in average working hours in 2020 were among the largest. Employment in the sector contracted by 28% (compared to an 8% loss in non-tourism-related sectors) and average hours worked by 38%. Workers in the tourism-related sector working zero hours per week rose two thousand-fold (affecting 775,000 workers).

• In Vietnam, the dire consequences of the crisis on the tourism sector were reflected primarily in decreasing wages and increased informality. Average tourism wages fell by nearly 18%, with the decline for women employees even higher at almost 23%. While the number of informal employees in tourism increased by 3% in 2020, the number of formal employees decreased by 11%.

• The impact of the crisis on tourism employment in Thailand was more muted, yet contractions in wages and working hours were stark, and jobs in the sector contracted. In contrast, jobs in non-tourism-related sectors experienced a slight gain. Average wages in the tourism sector decreased by 9.5% as tourism workers moved into lower-paid jobs like food and beverage serving activities. Average hours worked declined by 10 percent. In the first quarter of 2021, employment was below pre-crisis numbers in all tourism-related sub-sectors other than food and beverage serving activities.

• The tourism sector in Brunei Darussalam was hard hit in terms of both lower employment and fewer average hours worked, which contracted by more than 40% and nearly 21%, respectively. It was also the country that saw the largest difference between employment losses in tourism and non-tourism-related sectors.

• Likewise, in Mongolia, tourism employment and average working hours suffered considerably from the pandemic and contracted correspondingly by almost 17% and more than 13%. The impact on employment among male tourism workers was particularly sizable, falling by around 29%.