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%.

COVID-19 Widens Existing Gender Inequalities in Vietnam

Women in Vietnam have been facing multiple inequalities in the labor market, even with the remarkably high labor market participation rate. A research brief by the International Labour Organization (ILO) in Vietnam shows that 70.9% of Vietnam’s working-age women are in the labor force, while the global level is 47.2%. 

The research also indicated that the COVID-19 pandemic has exacerbated existing inequalities and created new gender gaps. Valentina Barucci, the Labor Economist for ILO Vietnam, says that before the COVID-19 pandemic, both women and men had relatively easy access to jobs. Still, the quality was, on average lower among women than men. Female workers are overrepresented in vulnerable employment, particularly in contributing to family work. Women earned 13.7% less than men and are underrepresented in decision-making jobs; they accounted for nearly half of the labor force but less than ¼ of overall management roles. The gap women face in job quality, and career development stems from the double burden they carry. They spent an average of 20.2 hours per week cleaning the house, washing clothes, and shopping for the family, whereas men spent only 10.7 hours. 

As a result of the COVID-19 pandemic, total working hours dropped significantly in the second quarter of 2020. Overall working hours did recover through the second half of the year, but women’s working hours recovered faster than men’s. “The women who worked long hours in the second half of 2020 possibly wanted to make up for the income losses in the second quarter,” says Barcucci. “Such additional hours made the double burden heavier to carry, as the time spent by women on household chores remained disproportionately high.

The research brief states that work equality in Vietnam can only be built on a shift in approach, from protecting women to providing equal opportunity to all workers, irrespective of their sex. A Labour Code that came into effect on the 1st January of 2021 opens opportunities to close gender gaps in employment. The Code introduces a reduction in the retirement age gap, which will gradually be implemented. In addition, female workers will no longer be excluded by law from certain occupations considered harmful for child-bearing and parenting functions. Rather, they will have a right to choose whether or not to engage in such occupations after being fully informed of the risks involved. Vietnam’s Socio-Economic Development Strategy for 2021-30 is expected to call for gender gaps to be reduced across several areas of citizens’ political, economic, and social lives.