Recent launch of a coordinated insurance plan in Thailand displays a united image for the destination and may help stimulate tourism recovery.
12 Thai insurance companies alongside Thai Insurance Regulator and Thailand Insurance Commission have teamed up to offer incoming tourists travel insurance covering both medical treatment and repartition costs. The price will relate to the risk of Covid-19 in the traveller’s respective country of origin and also includes countries considered ‘high risk’. Policies will be available online and become valid when a traveller passes through immigration in Thailand. All they need is a ‘fit-to-fly-health’ certificate stating they tested negative for Covid-19 72 hours prior to their flight.
Travel and tourism contributed 19.7% to Thai GDP in 2019 (World Travel and Tourism Council) and the destination received 39.6 million international arrivals, illustrating that tourism is a vital contributor to the country’s economy.
The collaborative approach that Thai Insurance companies have taken to cover insurance costs may act as an additional selling point for the destination, luring travelers with the promise of protection. Many other destinations could be likely to soon follow suit in order to remain competitive.
Coverage will help stimulate recovery
Health and safety measures are likely to be a key priority for destinations in the current climate and the prospect of racking up incredible medical expenses alongside a quarantine still acts as a barrier for many tourists. Travellers typically sought out travel insurance prior to this pandemic but with fears of health, safety and the general uncertainty still surrounding travel, insurance is now likely to be a key priority during purchasing decisions.
Destinations that are now promoting Covid-19 as included in insurance policies will have a better stance as tourism begins to recover, helping to alleviate consumer anxieties.
More destinations are likely to cover this as an ‘additional selling point’
Covid-19 has accelerated anxiety and uncertainty for travellers as holiday plans worldwide have been terminated amid global travel restrictions.
Even as these restrictions begin to ease, the risk of travelling to a country – facing a quarantine, another lockdown and racking up medical expenses is likely to still be a major deterrent for many.
Other destinations such as the Dominican Republic and Turkey have also promoted Covid-19 insurance to stimulate tourism recovery. Tourism is a vital contributor to many an economy and as the travel industry looks to pose for re-growth, Covid-19 travel insurance will be assist in the recovery process for a destination and its stakeholders.