With COVID-19 vaccine distribution now in its early stages, early steps toward the resumption of labour migration in the
Pacific region underway, and hopes for an international travel ‘bubble’ between Australia and New Zealand, questions are
now arising as to what additional measures will be needed before international tourism returns to the Pacific region. In
this context, World Bank analysis, How Could the Pacific Restore International Travel?, has recommended that Pacific
Island countries and Papua New Guinea (PNG) take a phased approach to resuming international travel to the region in
order to safeguard against COVID-19 outbreaks and ensure a steady economic recovery.
Pacific countries have, so far, managed to largely protect citizens from COVID-19 through international border closures.
Yet, the economic impacts of the pandemic in the region have been significant. Recent economic modeling
by the World Bank shows that all Pacific economies are estimated to have contracted in 2020– particularly those reliant
on tourism. Fiji, for example, is estimated to have seen a reduction in GDP of close to 20% in 2020. While a modest
recovery is expected in 2021, output levels are not expected to reach pre-COVID19 levels until 2022 or later.
“We want to assist policy makers in the Pacific and PNG to make informed decisions about the risks, and benefits, of
when and how they choose to re-open to international travel,” explained Michel Kerf, World Bank Country Director for
Papua New Guinea and the Pacific Islands of the motivation behind producing the report.
“Due to weak health systems, any large COVID-19 outbreaks could have devastating consequences for the region. Recent
World Bank surveys show that the pandemic’s economic impacts and closed borders are forcing families to make tough
choices, like going without food or withdrawing children from schooling
, and these can have harmful consequences for years to come.”
The report proposes that re-opening travel to the Pacific should be done in phases, but it cautions that relaxing strict
border policies alone will not immediately deliver economic benefits. The three phases are:Phase 1 beginning between January and July 2021: Pre-approved travel for specific groups (more temporary workers,
students etc.) Strong testing and quarantine measures would be the foundation for any travel bubble.Phase 2 beginning between June 2021 and May 2022: A ‘travel bubble’ with commercial flights for business and tourism.
This would require sustained COVID-19 containment, improved testing and tracing, and initial roll-out of vaccinations.Phase 3 beginning between October 2021 and October 2022: A ‘new normal’. Longer term general international travel
requiring wide distribution of COVID-19 vaccines and treatment with vastly improved testing and tracing.
“The ‘triple win
’ of labor mobility – for the individual worker, for Australian and New Zealand businesses, and for PNG and Pacific
economies - means we highly recommend it be prioritized in phase 1,” said Andrew Blackman, author of the report.
“Tourism is also central to several Pacific economies, with many flow-on effects for domestic supply chains and benefits
for both genders. Not many other industries deliver the same economic and social benefits but opening up to tourists
represents a big health risk and so must be planned carefully. The World Bank is committed to supporting our partner
countries across the region as they determine the best course of action,” continued Mr. Blackman.
The report warns that Pacific governments and their partners will have to invest significantly in testing and tracing
capabilities at every phase of re-opening, and each country will have to weigh this financial burden with the potential
benefits of resuming international travel. Assuming that wide distribution of the current COVID-19 vaccines will take
months, any ‘new-normal’ travel arrangements are unlikely to be in place before late 2021.
Based on this proposed timeline, economic activity across the Pacific could remain depressed for another 9-18 months. To
help address this, the World Bank’s second phase of COVID-19 support to the region will focus on helping countries
address the economic and social impacts of the pandemic, support businesses, safeguard jobs, and advance the reforms
needed to speed recovery towards broad-based and sustainable growth.