The terrorist attacks on the United States last year were a huge blow to the tourism industry worldwide. Airlines and hotels were hit particularly hard, forcing job layoffs by the tens of thousands. Destinations that depend significantly on US traffic suffered a disproportionately high amount of damage. It was a fatal blow to many companies, coming as it did on top of already weakened economies.
Despite some recent failures - Ansett Australia, Royal Air Cambodge to name two - Asia's airlines aren't in danger of wholesale collapse. Some, such as Japan's ANA, are expected to exceed first-quarter profit expectations. Some smaller carriers plan to expand: Jakarta-based Lion Airlines, for example, plans to move beyond Indonesia and Malaysia in 2002 to include new routes to destinations in Australia and Japan.
In many parts of the region, tourism is looking good: Vietnam arrivals last year were up more than 9% over 2000, while Cambodia's jumped 25%. Malaysia says international arrivals are slowly rising, but are still well below pre-September 2001 levels.
However, although international leisure tourism is rebounding (or at least being redirected to several Asian destinations from Europe and North America), business travel is still hampered by a widespread perception in Asia that flying isn't a good idea right now. Indeed, Malaysia Tourism Promotion Board director-general Abdullah Jonid correctly characterised what has befallen the industry as a "crisis of confidence". Islamic countries in Asia - Indonesia, Malaysia and Brunei - have been particularly hard hit.
WorldCom, a US-based teleconferencing provider with a substantial presence in Asia, recorded one measure of that lack of confidence. In 2001, business calls placed by Asian clients jumped by 100%. But while teleconferencing is, undeniably, a great innovation, it can't replace face-to-face meetings, particularly with important clients.
In response to the crisis affecting the airline industry, prices have fallen and routes have been reinstated in the hope of restoring passenger load levels. With hotel prices, companies will often have the advantage in bargaining and should be able to demand cuts of 10-25% in hotel rates in most Asian cities.
The least Asian business people can do is hang up those telephones and hasten to a travel agent. The only way to go is up.