The Covid-19 pandemic and its accompanying restrictions have caused an unprecedented disruption to tourism around the world. Laos initially responded to the crisis by swiftly closing borders and protecting its citizens. For the most part, the Covid-19 situation allowed Lao people internal mobility, so domestic travel was heavily promoted.
Initiated just a year ago, the Lao Thiao Lao domestic tourism campaign provided a lifeline for a tourism industry on the brink of total collapse. While not a perfect solution, it offered some stop-gap relief for businesses while raising awareness of domestic tourism sites in Laos among the local population.
The domestic market can be understood through the lens of five personas (tourism personality types). Through these personas, we can see that the impossibility of international travel, Covid-19 fatigue, pent-up demand, philanthropy, and the success of the Lao Thiao Lao campaign, are factors incentivizing many travelers to go beyond their home provinces. More specifically, it is expatriates and upper income bracket Lao that are keeping what is left of the industry alive, especially the high-end sector. Lastly, NGOs and government bodies make up the bulk of the domestic MICE market that bring short sporadic surges in select tourism economies whose benefits to the supply chain.
Meanwhile, strategies are being implemented by foreign governments to try to jumpstart international tourism. From Thailand’s Phuket Sandbox to Singapore’s SG Clean, state-backed initiatives have received mixed levels of success due to inconsistent communication, reactive policies, and changing circumstances as the pandemic develops. At least for the foreseeable future, health safety will become a fundamental new dimension that has been irrevocably embedded in tourism policy. However, at least for most tourism-dependent countries, increasing economic and political considerations will play a bigger role in decision-making. Lastly, the pandemic is expected to drive tourists to rely more on credible and official sources online, while neighboring countries close to home may drive the bulk of the first post- pandemic travelers, especially with the current limited number of long-haul flights. A preference for nature-based and outdoor activities is expected to increase.
New directions in marketing Laos can be devised through careful examination of consumer travel trends, needs, and desires as the world shifts from responding to Covid-19 as a pandemic, while the virus becomes endemic. However, it is the case that continual flexibility and adaptation will be required by all parties in all sectors. It remains to be seen whether Covid-19 will prove to be a truly transformative event or simply a temporary shock to a resilient system that will heal in the upcoming years.
