2020 Economic Impact of Covid-19 on MSMEs and Timor-Leste’s Tourism Sector is a 2021 report by The Asia Foundation, with methodology support from The Policy Practice. It measures how the 2020 border closure and state of emergency affected micro, small and medium enterprises (MSMEs), especially in tourism. It also proposes a recovery path. Its value is the first-hand interview data from businesses during the year when international tourism stopped.
Key findings
- Survey: From May to August 2020 the Foundation interviewed 342 MSMEs. 59% of them were in the tourism sector.
- Context: Timor-Leste confirmed its first case on 21 March 2020. It closed its borders and kept international travel shut for the whole year, with local restrictions from 26 March to 26 April 2020.
- Business impact: Almost half of tourism businesses that depend on international travellers closed or reduced operations, against one in five of those serving domestic travellers. Businesses that reopened lost much of their income while operating costs stayed almost the same.
- Women: More women than men work in tourism, but they earn up to 15% less, and more women than men lost tourism jobs during the pandemic.
- Government support: MSMEs knew little about the support on offer. Most wanted financial help such as credit guarantees and tax waivers, while the government mainly offered social-security waivers and wage contributions.
- Recommendations: Improve MSMEs’ access to information. Make support packages match what businesses need. Set up COVID-safe travel standards that include accommodation, food and tour businesses. Run marketing aimed at primary markets that links tourism with niche exports such as coffee.
Document details
- Publisher: The Asia Foundation (methodology with The Policy Practice)
- Authors: Gobie Rajalingam and Kelsey Atwood
- Funder: New Zealand Ministry of Foreign Affairs and Trade (tourism programme)
- Year: 2021 (covers 2020)
- Language: English
- Pages: 30
- Download: PDF (timorleste.tl)
Further reading
- Tourism in Timor-Leste: Small Businesses, Big Impacts
- COVID-19 and the Alignment of Aviation and Tourism Strategies (2020)