Phuket's ‘Sandbox’ project is setting a powerful example for other Asian islands, showcasing a sustainable approach to reviving tourism in a post-pandemic world.

Describing tourism as the backbone of Phuket’s economy would be an understatement, as it plays a central role in driving the island's financial growth.

Before the pandemic hit, Phuket was a global hotspot, ranking 15th in the world for international visitors, with its sun-kissed beaches, vibrant food culture, and bustling nightlife attracting millions.

In the same year, Bali saw nearly 6.3 million tourists, while Phu Quoc welcomed 5.1 million, Langkawi 3.9 million, the Maldives 1.67 million, and Boracay 1.6 million.

Tourism is a major employer in the Asia-Pacific region, with over 15.3 million workers relying on the industry, according to a report by the UN’s International Labour Organization.

Thailand’s Phuket 'Sandbox' initiative, which began welcoming fully vaccinated tourists for quarantine-free holidays on July 1, has understandably drawn significant attention across the region.

As per the guidelines, travelers must spend a minimum of 14 days on the island in an SHA+ certified hotel before venturing to other parts of Thailand, though they can explore freely within Phuket itself.

Phil Anthony, a wellness coach based in Phuket and founder of the travel consultancy RetreatAdvisor.com, explains to Dinogo Travel, 'Thailand’s economy is a giant in Asia, and the country’s warm reputation makes it a favorite among travelers.'

'If Thailand can demonstrate successful management of the situation, it could have a major influence on the rest of Asia, possibly inspiring other countries to implement similar sandbox strategies,' he adds.

Challenges remain, however.

For Anthony, who also runs a food and nutrition business called Nana Bowls, the Phuket ‘Sandbox’ program is a much-needed opportunity for innovation.

'When travel shut down in 2020, fear gripped many. Businesses were forced to close, staff were laid off, and people sold their properties to weather the storm,' says Anthony.

'Others, like myself, saw it as a chance to pivot – rebranding, revamping menus, and planning for the future. Hopefully, we can return to full speed soon, as many have lost their jobs in the process.'

Since the launch of the Sandbox initiative last month, Anthony has noticed a steady stream of travelers arriving on the island. He’s already had the pleasure of hosting two friends who are able to work remotely.

'My friend took a swab test at the airport, waited for the results at his hotel, and within six hours, we were able to go out for dinner together,' he recalls. 'It felt amazing to sit with a close friend and give him a hug.'

By August 1, Phuket had seen 14,910 international arrivals, including returning Thai residents who preferred to skip a two-week quarantine in Bangkok.

While this number is still far below pre-pandemic levels, experts believe that slow and steady progress will allow authorities to carefully monitor the situation and adjust as necessary.

'To be fair to Thailand, this is a long-term initiative designed to ramp up in preparation for the peak season from December to March,' says Gary Bowerman, director of Check-in Asia and co-host of the Southeast Asia Travel Show podcast.

'Being the first to reopen in the region, Thailand is bound to face some challenges. However, it’s been able to stress-test its airports, hotels, and new protocols. Right now, the travel industry is figuring out its next steps, which is complicated further by the fast spread of the Delta variant in Southeast Asia,' Bowerman adds.

More sandbox programs are on the way.

Phuket is not the only Thai destination opening its doors to vaccinated travelers.

Koh Samui, Koh Pha Ngan, and Koh Tao opened their doors to fully vaccinated international visitors on July 15, although with stricter restrictions in place.

Additionally, a Phuket Sandbox extension program is set to launch on August 15, after being delayed from its original August 1 start date.

Under this model, travelers will be allowed to move on to other participating destinations – including Koh Samui, Phi Phi Islands, Ko Pha-ngan, Ko Tao, Krabi, Ko Ngai, Railay Beach, Khao Lak, and Ko Yao – after completing a seven-day stay in Phuket.

Plans were also in place to roll out a similar scheme in Chiang Mai in the coming weeks, with hopes of extending it nationwide by October.

However, these plans are currently uncertain due to an ongoing Covid-19 surge that is impacting mainland Thailand.

On August 5, Thailand reported a record 20,920 new Covid-19 cases, marking its highest single-day count to date.

Only 5.8% of Thailand's 70 million population has been fully vaccinated, compared to 69% in Phuket. Critics have accused the government of focusing vaccination efforts on tourist destinations, while many elderly and frontline healthcare workers remain unvaccinated.

In response to the worsening Covid situation in mainland Thailand, authorities have imposed a ban on domestic travel to Phuket from August 3-18 and have tightened restrictions for those already on the island.

'It’s a controversial issue in Phuket, with the island essentially closed off to domestic travelers,' says Bowerman.

'This could breed resentment, as it may seem like international tourists and island-based tourism businesses are being given preferential treatment. It also limits local residents’ ability to travel to the islands for work or to return home,' he adds.

Despite higher vaccination rates, Phuket has seen an uptick in Covid-19 cases, with 65 new infections reported on August 1.

However, officials have confirmed to Dinogo Travel that there are no plans to suspend the Phuket Sandbox program at this time.

'According to the latest update, international arrivals under the ‘Phuket Sandbox’ program can still enter Phuket following the existing rules and regulations,' said Pintida Harnpanpongse, a public relations representative from the Tourism Authority of Thailand, on July 30.

Andrea Oschetti, a Hong Kong-based travel expert and the founder of Blueflower Travel, acknowledges that uncertainty is part of the process.

'Given that we’re navigating uncharted waters in the face of an unprecedented crisis, it’s only natural that we don’t have all the answers yet. But each day brings us closer to understanding what works and what doesn’t,' he states.

'These pilot initiatives are crucial as they could define the future of travel. Covid-19 isn’t going away, and we can’t avoid it forever. If the sandbox programs fail, it’s not a failure, but rather an opportunity for Thailand to reassess, refine, and create a more effective strategy based on what’s been learned,' he concludes.

In an effort to ensure the success of the pilot programs, tourism leaders in Phuket have urged European governments, along with others globally, to classify the island as a 'green zone' distinct from the rest of Thailand.

This approach would mirror how European governments have designated Madeira in Portugal and the Faroe Islands in Denmark as special zones.

Thailand is currently listed on the UK's 'amber' list, and many European countries are advising against non-essential travel.

'It’s crucial that EU countries – with support from travel agents, media, and other stakeholders – acknowledge the need to separate Phuket from the rest of Thailand in terms of travel policy,' said KP Ho, founder of Banyan Tree Group, during the recent Phuket Sandbox Summit.

'Ideally, Thailand might be under a red alert, but Phuket could remain a green zone. This model could be applied to other destinations like Koh Samui, Bali, and Phu Quoc,' he suggested.

Asian destinations to watch

Across Asia, numerous tourism-dependent regions stand to gain from the success of Thailand's reopening initiatives.

As a travel consultant, Anthony has been closely monitoring destinations like Bali, Sri Lanka, and Vietnam.

'Tourism is a key pillar for these economies, and I’d say Bali is the most comparable to Phuket. Both places heavily rely on tourism, have international airports, and are popular with travelers for their stunning beaches, palm trees, and natural beauty,' he explains.

'We’re keeping an eye on them, and they’re keeping an eye on us,' he adds.

Bali had initially planned to open 'green zones' to welcome international travelers once the island reached its vaccination targets, but the surge in Covid-19 cases put those plans on hold.

Currently, the island is under strict lockdown with daily case numbers surpassing 1,300 in late July, along with reports of critical oxygen shortages.

'Vietnam's approach is different, but they could adapt some of the strategies being tested here to their own islands,' Anthony notes.

Bowerman highlights destinations like Langkawi and Kuching in Malaysia, as well as Cambodia and Laos, as potential candidates for similar pilot projects in Southeast Asia, with Singapore planning to roll out quarantine-free travel starting in September.

Phu Quoc is also preparing to launch its own tourism initiative, provided it meets vaccination targets by September, while Cambodia is looking to welcome fully vaccinated tourists by the end of the year, according to reports.

However, the success of these efforts will largely depend on vaccination rates and supply, which vary across the region.

'Vaccination is absolutely essential. You can’t safely reopen destinations unless you ensure that airport staff, tourism workers, and local residents are protected,' says Bowerman.

'It’s equally important that incoming tourists, whether international or domestic, are vaccinated to minimize the risk of spreading Covid-19,' he adds.

Although Malaysia initially lagged behind in its vaccination campaign, it has made significant progress. By August 5, more than 30% of the population had received full vaccination.

'Langkawi has a small population, which makes it feasible to vaccinate everyone quickly and launch a sandbox-style program,' says Bowerman.

'However, this approach could create dissatisfaction between the mainland and the islands if the focus is solely on reviving tourism in island destinations. Additionally, if international tourists are allowed back, will domestic travel be permitted? Striking a fair and safe balance will be key to the long-term success of these pilot tourism programs.'

Bowerman predicts that more countries in the region will start easing or eliminating quarantine rules for vaccinated travelers as vaccination rates continue to rise.

'Everyone is waiting to see how things unfold,' he says. 'However, the full recovery of travel in the region won’t happen until China’s outbound tourism resumes. There’s no clear timeline for that, and current signs suggest it won’t be anytime soon.'