Association of Southeast Asian Nations (ASEAN) recently adopted a new five-year ASEAN Tourism Strategic Plan (ATSP) 2011-15 to promote the region as a single tourism destination along with efforts to establish an economically integrated ASEAN Community by 2015 (Philippine Daily Inquirer, 23-Jan-2011). The plan is aimed to promoting ASEAN as a single tourist destination, developing a set of tourism standards with a certification process, enabling tourism professionals to work in any of the 10 ASEAN member states, and allowing visitors to travel throughout ASEAN with a single visa. ASEAN governments agreed to grant increased flexibility to designated airlines to “allow them to fly and carry traffic from any ASEAN city with an international airport to its counterpart in other member states, while ensuring the full third, fourth and fifth freedom traffic rights". The third freedom traffic rights allow an airline to fly and carry traffic from one’s own country to another while the fourth provides for the reverse.
ASEAN adopts new five-year 'tourism strategic plan'
You may also be interested in the following articles...
Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.
Turbulence will hurt Southeast Asia’s airlines in 2017 as overcapacity bites
Southeast Asia is a region with enormous growth potential but a relatively cloudy outlook for airlines given the intense competition and overcapacity concerns. Demand is on the rise, boosted by a growing middle class, rising discretionary incomes and relatively strong economies.