Preah Sihanouk, Cambodia

Opportunities and Challenges for Smart Tourism Development in the GMS

The rapid development of technology in recent years has transformed the tourism industry. There has been significant growth in technology solutions that rely on sensors, big data, open data, and advanced methods of connectivity and information exchange, as well as smart capacity to collect and analyze data. In the tourism sector, the adoption of such solutions has accelerated smart tourism development.

Smart tourism refers to the integration of information and communication technology (ICT) into tourism-related products and services. This aims at enhancing the tourist experience, improving tourism management and governance, facilitating service and product innovation, improving resource efficiency, and promoting sustainability. Major ICT-based tools include the Internet of Things (IoT), mobile communication, cloud computing, and artificial intelligence (AI). Smart tourism is closely associated with smart city development, following the principles of delivering value-added services to both tourists and residents. Therefore, more and more destinations are advancing innovation and digital infrastructure to move toward smart tourism destinations. 

A tourist performs self check-in at an airport kiosk (Photo by TTG Asia)

Back in 2020, the Covid-19 pandemic brought the tourism sector to a halt, causing a 74% decline in global international tourist arrivals and the loss of USD 1.3 trillion in tourism revenue. The pandemic also exposed weaknesses in the mass tourism model, prompting destinations to rethink more sustainable tourism approaches. 

In an era of contactless solutions, technology is expected to play a crucial role in shaping tourist behavior, softening the effect of seasonality in tourism, and contributing to destination regeneration. Smart tourism adoption could help destinations respond promptly to new challenges and demands, including the digitalization of products and services; provision of equal access to all visitors and residents; fostering sustainable livelihood development; and strengthening cultural preservation and creative tourism experiences.

Even before the Covid-19 pandemic, Southeast Asia benefited substantially from the digital transition through the explosion of e-commerce platforms. The region’s digital economy hit  $100 billion in value in 2019, powered by rapid technology adoption and changing consumer preferences. The ASEAN ICT Masterplan 2020 envisions a digitally connected, secure, and sustainable region, with a transformative, innovative, inclusive, and integrated community. Overall regional economic growth has resulted in a larger middle class and increased purchasing power, leading to an advanced online market. Further, strong domestic markets and tech-savvy societies are also powerful driving forces for digital transformation in all economic sectors. 

Technology adoption and smart tourism development are prioritized in the socio-economic development plans of many GMS member countries. ASEAN’s leaders also released a joint declaration on utilizing digital tools to enhance competitiveness, facilitate growth, enhance tourism management capacity among member states, and develop sustainable tourism. However, each member country has different priorities and approaches to smart tourism. 

Cambodia emphasizes smart tourism development at the destination level and the enhancement of digital communications and the human capacity for high-priority tourism sites. Meanwhile, Lao PDR focuses investment on market intelligence to facilitate tourism data collection and analysis. Myanmar’s strategy reinforces building a smart tourism ecosystem to support inclusive destination planning. Thailand targets the use of advanced technologies to attract strategic markets and drive experience-based, sustainable tourism. Finally, Vietnam aims to accelerate digital transformation to enhance tourist experiences, connect tourism service infrastructure, and enhance the application of green and clean technologies in service and tourist accommodation establishments. 

ASEAN’s digital tourism is on the rise (photo by ASEAN)

To accomplish smart tourism goals, the GMS member countries need to overcome critical challenges. This requires the participation of multiple stakeholders with cutting-edge ICT infrastructure that allows quick data exchange. Despite having great digital potential, the internet penetration rate across the GMS is below 80%, lagging behind other regions. This restricts the ability to attract tourists through digital channels such as social media and tourism websites.

Further, there is a lack of facilitative policies and guidelines for technology design and transfer and experience co-creation, as well as digital marketing support for the tourism sector. As smart tourism requires investments in ICT infrastructure and data-sharing platforms, the majority of smart tourism plans are driven by the public sector. Private sector engagement and collaboration have proven to be challenging due to security concerns and conflicts of interest among stakeholders. Limited digital literacy in the GMS further intensifies the gap in digital skills of the tourism workforce, while modern tourists expect digital tools to ease the travel process.

Investing in ICT infrastructure should remain a high priority for GMS countries to provide their citizens and travelers with access to high-quality internet connectivity and advanced technologies. At the same time, governments should strengthen engagement with the private sector to stimulate the development, dissemination, and implementation of new technologies while providing greater access to funding for tourism businesses to adopt innovative business models and share the risk of investment with them. 

Furthermore, it is critical to enhance the digital skills of the tourism workforce by providing hands-on training for government officials and tourism businesses to adapt to the future of digital transformation. The Go Digital ASEAN initiative is a leading example of enhancing digital readiness among individuals and MSMEs across the region. Participants are better equipped with skills and knowledge to meet the needs of the digital economy. Cross-border collaboration among GMS countries can foster technology adoption and digital transformation for tourism through collecting, processing, and exchanging tourism-relevant data. This necessitates the development of regulations, standards, and digital frameworks to build partnerships and bridge the digital divide. 

Mekong Tourism Forum 2023 features a panel discussion on “Smart Tourism and Smart Destination via Digitalization”, led by Mr. Ben-Jie Lim, Head of Emerging Markets at AirAsia Super App. This session will discuss how technology and digitalization can address challenges facing tourism business and contribute to creating resilient tourism in the Mekong region. 

Don’t miss this opportunity to meet and join discussions with regional tourism experts. See detailed program and full list of MTF 2023 speaker lineup at: https://mekongtourism.org/program-cambodia/.

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