Global tourism grows 4% in 2021 but remains far below pre-Covid levels
While global tourism experienced a four per cent upturn in 2021 compared to 2020 (415 million versus 400 million), international tourist arrivals (overnight visitors) were still 72 per cent below the pre-pandemic year of 2019, according to preliminary estimates by UNWTO.
This follows on from 2020, the worst year on record for tourism, when international arrivals decreased by 73 per cent.
The first 2022 issue of the UNWTO World Tourism Barometer indicates that rising rates of vaccination, combined with easing of travel restrictions due to increased cross-border coordination and protocols, have all helped release pent-up demand.
International tourism rebounded moderately during 2H2021, with international arrivals down 62 per cent in both 3Q and 4Q compared to pre-pandemic levels. According to limited data, international arrivals in December were 65 per cent below 2019 levels. The full impact of the Omicron variant and surge in Covid-19 cases is yet to be seen, said UNWTO.
The pace of recovery remains slow and uneven across world regions due to varying degrees of mobility restrictions, vaccination rates and traveller confidence. Europe and the Americas recorded the strongest results in 2021 compared to 2020 (+19 per cent and +17 per cent respectively), but both still 63 per cent below pre-pandemic levels.
By subregion, the Caribbean saw the best performance (+63 per cent above 2020, though 37 per cent below 2019), with some destinations coming close to, or exceeding pre-pandemic levels. Southern Mediterranean Europe (+57 per cent) and Central America (+54 per cent) also enjoyed a significant rebound but remain 54 per cent and 56 per cent down on 2019 levels respectively. North America (+17 per cent) and Central Eastern Europe (+18 per cent) also climbed above 2020 levels.
Meanwhile, Africa saw a 12 per cent increase in arrivals in 2021 compared to 2020, though this is still 74 per cent below 2019. In the Middle East, arrivals declined 24 per cent compared to 2020 and 79 per cent over 2019. In Asia and the Pacific, arrivals were still 65 per cent below 2020 levels and 94 per cent when compared to pre-pandemic values as many destinations remained closed to non-essential travel.
Industry players urge coordinated border controls
Tourism stakeholders reiterated the urgent need for a coordinated approach to cross-border travel in order to support a stable travel and tourism recovery.
Speaking at Booking.com’s inaugural roundtable, The Travel Edit: Embracing the Unpredictable on January 18 in Singapore, Campbell Wilson, CEO of Scoot, called for a common list of vaccines recognised across all countries as well as unanimous usage of a single QR code across borders.
Wilson said these should be available at the very least, despite a near “impossible task” for governments to agree on Covid-19 responses.
Fellow speaker, Kerry Healy, CCO, South-east Asia, Japan and South Korea at Accor, expressed frustration over differing state of border openings within South-east Asia, and emphasised the need for “harmony” in regulations.
Wilson added that government agencies, associations, medical community and economic divisions should work together to ease administrative processes to make regional travel less cumbersome.
Philippines lays groundwork for the return of South Koreans
South Koreans, the perennial biggest inbound market of the Philippines, are interested to travel again to the destination, as gleaned from results of a month-long pre-selling of tour products.
The Online Pre-Booking Campaign from November 5 to December 4, 2021, initiated by the Department of Tourism (DoT) in tandem with seven major travel agencies in South Korea, listed fresh tour products in popular destinations pre-pandemic: Bohol, Boracay, Cebu, Clark and Manila.
Maria Corazon Jorda-Apo, tourism director South Korea, said 3,707 bookings were made and 8,940 enquiries received during the campaign. “One agent even had several incentive groups departing in 2022; with 2,013 passengers in total,” she revealed.
Jorda-Apo told TTG Asia that while the volume of bookings was “insignificant” compared to pre-pandemic, the number of bookings and enquiries made while Philippine borders are still shut demonstrated encouraging interest from the market.
“For us, this is a very good indicator and will somehow help us in jumpstarting travel when restrictions are lifted,” she said.
Under the Online Pre-Booking Campaign, which Jorda-Apo intends to repeat this year, tour packages (excluding airline tickets) are valid for one year after the start of flights to the destination, while other suppliers have included DOT-established safety protocols and compulsory PCR tests upon arrival.
Jorda-Apo said the packages were priced more attractively than pre-pandemic, and the destinations were selected by South Korean tour operators based on their popularity before the travel freeze.
For instance, South Korean agents expect Boracay to attract younger travellers when access returns, as the destination has been popular among this segment before and even during the pandemic.
She added that pre-pandemic, South Koreans visited the Philippines mainly for beach holidays, weekend getaways, diving, learning English as a second language, and golfing, especially in winter. Families with children, couples and millennials with their friends/work associates came to enjoy natural attractions, top hotels and resorts, and shopping facilities.
Commenting on the quarantine-free travel bubble being looked into between South Korea and the Philippines, possibly benefitting Bohol, Jorda-Apo said airlines and charterers were still waiting for the Omicron wave to pass. With stability, charterers and airlines will return to destinations other than Manila.
India demand for SE Asian vacays stay strong
South-east Asia’s myriad destination appeals and close proximity to India are keeping Indian holidaymakers spell-bound, travel agents told TTG Asia.
In fact, many expect buoyant demand for South-east Asia to play a critical role in reviving India’s outbound tourism business.
Bookings rebound hinges on the resumption of commercial flights, opined Rajeev Kale, president & country head – holidays, MICE, visa with Thomas Cook (India).
“Our data indicates high interest across a range of consumers – both the small and multi-generational family segment, couples and honeymooners, young working professionals/millennials, and those seeking ‘bleisure’ trips, said Kale.
Counting the region’s many appeals, which include gastronomic variety, wide range of outdoor activities including water sports and jungle adventures, and excellent diving locations, Kale said cruising is another strong business opportunity for Indian outbound specialists.
Other Indian travel consultants expect South-east Asian demand to return with the onset of the summer holidays.
Aditya Tyagi, founder of Luxe Escape, is confident of a good summer showing, as the current Omicron variant has had a less fatal and severe impact on communities compared to earlier variants.
Although Tyagi expects favourable leisure demand, he is less optimistic of destination weddings.
“As far as weddings are concerned, I think Indians will not choose South-east Asian destinations, as that involves charter flights and we don’t have many options due to restrictions on international services,” he explained.
Offering an alternative view, Meera Charnalia, senior vice president & head of MICE & events, Thomas Cook (India), said there has been pent-up demand for destination weddings, along with pre- and post-wedding ceremonies and celebrations. Such celebrations have so far been taking place in India, but clients are looking forward to hosting their life’s milestone in South-east Asia, particularly Thailand and Malaysia.
Given the large expenditure on destination weddings, Charnalia said the return of such overseas events is vital to the revival of India’s outbound tourism sector.
Universal Holidays steps up distribution for the region
Malaysian wholesaler Universal Holidays Travel and Tourism has launched a distribution platform that focuses on South-east Asian hotels, tours and attractions, restaurants and transportation services.
The company’s founder and CEO, Zahira Tahir, described U-Pass as a “labour of love” that took two years and RM600,000 (US$143,318) to birth.
The platform addresses two main pain points of overseas outbound agents – challenges in sourcing for tourism products from lesser-known destinations in the region as well as difficulties in purchasing multiple destination products beyond major cities. With U-Pass, agents can curate regional packages on a single platform and receive instant confirmation, without a transaction fee attached.
For a start, U-Pass offers products from Malaysia, Thailand, Singapore and Indonesia. Work is ongoing to bring partners from Vietnam, Cambodia and the Philippines onboard, with a goal of having products from all 10 ASEAN member countries on the platform by next year.
Although the focus is on South-east Asia, U-Pass also sells hotels from around the world as it is directly connected with a few international aggregators.
To date, wholesale agents from Japan, India, Pakistan and the Middle East have contracted to buy from U-Pass.
“Travellers (will no longer) wait one or two days for their travel agent to respond. We assist agents to meet the new demands of travellers by providing instant confirmation on bookings and options for off-the-beaten track destinations. Ultimately, we aim to be the digital solution for all agents who sell South-east Asia tours,” said Zahira.
Zahira expects growing interest in South-east Asian destinations as well as off-the-beaten-track experiences once international borders reopen across the region.
PATA partners launch net zero methodology for hotels
PATA has partnered with global hospitality, travel and tourism sector organisations to release a new methodology to guide hotels on how to set a net zero pathway.
The Net Zero Methodology for Hotels provides detailed guidance on how hotels can approach the technical aspects of net zero, such as what should be included in Scope 1, 2 and 3 emissions; milestones to be reached by target years such as 2025, 2030 and 2040; and how to approach decarbonisation through renewable energy.
The methodology also provides guidance on alignment with frameworks such as the Science Based Targets Initiative, Race to Zero and the Glasgow Declaration.
Graham Harper, PATA sustainability and social responsibility advisor, said: “Although many parts of Asia are still suffering significantly from the impact of the Covid-19 pandemic, as we gradually reopen, it is clear that sustainability is top of the agenda. This methodology will help hotel companies understand the steps they need to take to get on the path to net zero.”
The methodology is authored by Greenview, a global sustainable hospitality consultancy, in partnership with PATA, Tourism Declares a Climate Emergency, Sustainable Hospitality Alliance and WTTC. It was developed through a collaborative process with industry experts, including an advisory group of over 20 hotel companies, and after a wide stakeholder consultation.
The Net Zero Methodology for Hotels is available for download here.
Qantas, Jetstar slash Q3 capacity amid Omicron surge
Qantas and its low-cost unit Jetstar will slash about a third of their planned domestic and international capacity through end-March in response to the Omicron variant which has had a dampening effect on travel demand.
The carriers will only operate 70 per cent of their pre-Covid domestic capacity in the third quarter, down from the 102 per cent that had been planned.
International capacity for the same period will also be reduced from 30 per cent to around 20 per cent of pre-Covid levels due to increased travel restrictions in countries like Japan, Thailand and Indonesia.
Qantas Group CEO Alan Joyce said: “We have the flexibility to add capacity back if demand improves earlier than expected, but 70 per cent still represents a lot of domestic flying and it’s a quantum improvement on the levels we faced only a few months ago.
“Our focus on cash positive flying remains, notwithstanding some of the costs that we’ll have to absorb from this sudden drop in demand.”
He added that early bookings for the Easter holidays in April are looking “promising” for both domestic and international flights.
The airline said that an assessment on the financial impact of these changes will be given at the group’s half-year results in late February. It added that no material adjustments have been made to capacity expectations for the fourth quarter.
Genting Hong Kong to file for liquidation
Genting Hong Kong is preparing to file for provisional liquidation after failing to secure US$88 million in funding to help it stay afloat, following an insolvency at its German shipbuilding subsidiary.
The filing may happen as soon as Tuesday (January 18), according to a report by The Straits Times. The move comes after a German court rejected an application that would have provided Genting Hong Kong’s shipbuilding subsidiary, MV Werften, with access to a US$88 million lifeline, said the report.
In a statement, Genting Hong Kong said “it has exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements”.
“The Board believes that the appointment of provisional liquidators is essential and in the interests of the company, its shareholders and its creditors in order to maximise the chance of success of the financial restructuring and to provide a moratorium on claims and to seek to avoid a disorderly liquidation of the company by any of its creditors,” it added.
“Following the appointment of the provisional liquidators, the company, together with its professional advisers, will continue to work towards implementation of a consensual and inter-conditional restructuring of the group to preserve value for all creditors and other stakeholders.”
MV Werften filed for insolvency last week after Genting failed to reach a resolution with the German authorities over a dispute involving MV Werften’s collapse, said the report. Genting warned investors that cross defaults amounting to US$2.78 billion may follow, it added.
Trading in the company’s shares has been suspended.
Malaysian-listed Genting – partially owned by Malaysian tycoon Lim Kok Thay, who holds 75.5 per cent of Genting Hong Kong – has stated that Genting Hong Kong’s borrowings have no cross-default provisions, guarantees or structures that may affect the group.
UN report underscores tourism’s key role in global economic recovery
Tourism’s critical role as a source of employment and economic development will determine growth for the global economy, notes the 2022 edition of the World Economic Situation and Prospects by the United Nations.
Drawing on data from the World Tourism Organization (UNWTO), the report underlines the sector’s particular economic importance for developing economies, including Small Island Developing States (SIDS).
After a global contraction of 3.4 per cent in 2020 and a rebound of 5.5 per cent in 2021, the world economy is projected to grow by four per cent this year and 3.5 per cent in 2023.
UNWTO secretary-general Zurab Pololikashvili said in a statement: “The sudden halt in international tourism caused by the pandemic has emphasised the sector’s importance to both national economies and individual livelihoods. The flagship UN report makes use of UNWTO data and analysis to assess the cost of declining tourism and illustrates just how important restarting tourism will be in 2022 and beyond.”
The report notes the pandemic and tourism crisis’ devastating impact on employment, including in hospitality, travel services and retail trade, causing disproportionate effects on vulnerable groups, including youth and migrant workers, as well as workers with lower educational attainment and skills. Exacerbation of the gender divide is evident, especially in developing countries, with women seeing greater declines in employment and labour force participation than men.
Further analysing the sector’s role in economic recovery, the report notes that many destinations, in particular tourism-dependent countries, will need to diversify their tourism throughout 2022 and beyond. Many destinations are already developing domestic and rural tourism to help local economies in rural and depressed areas to boost job creation and protect natural resources and cultural heritage, while at the same time empowering women, youth and indigenous peoples.
Additionally, the report notes how SIDS can take steps to ensure local businesses and workers retain more of the economic benefits that international tourism brings.
Studio M has launched two curated experiential staycation packages in collaboration with pastry chef Janice Wong and resin workshop Resin Play.
Sweet escape to chocolate wonderland
Together with architect of the 2am: dessertbar restaurant chain, Janice Wong, Studio M has designed a chocolate bar-making workshop where guests will be guided through the transformation from “bean to bar”.
In this 60-minute workshop, guests will learn the secrets of chocolate bar making – from roasting, winnowing, grinding to conching. They will also get to create their own chocolate profiles by taking reference from Wong’s secret chocolate recipes. Adventurous tasters are also welcomed to taste the cocoa nibs during the workshop.
The Chocolate Temptation Staycation package is priced from S$240++ (US$177) per night.
Get creative with resin pouring
In collaboration with Resin Play, a 10-year experienced resin school, Studio M will be hosting a 40-minute resin workshop for in-house guests.
Priced from S$185++, the Resin Play package includes all the materials guests require to mould their own coaster, which they will be able to take home as a memento.