Indian travel agents confident of demand rebound for Sri Lanka
Indian travel agents are expecting a spike in demand for Sri Lanka in the coming months, especially as collaborative destination marketing efforts get underway with Sri Lankan tourism players.
Daniel D’Souza, president & country head – holidays, SOTC Travel said: “The island nation is a favourite with Indian consumers owing to its easy access and delightful diversity, and we are witnessing a gradual return of customer confidence. We are confident that strategic marketing and promotion efforts from the Sri Lankan authorities will provide Indian travellers with the much-needed assurance, and thus boost demand.”
With 80,132 tourist arrivals for the period January to August this year, India is the top source market for Sri Lanka followed by the UK with 65,555 tourist arrivals for the same period.
“We look forward to working closely with the tourism board, airlines and other stakeholders to build positivity and confidence across our India market segments of leisure, corporate and MICE and revive demand,” said Rajeev Kale – president & country head, holidays, MICE, Visa – Thomas Cook (India).
Kale added that they have also introduced special offers for the coming festive season to attract Indian travellers to the island destination.
Sri Lanka Tourism on its part has been working to regain the confidence of the Indian travel trade and consumers. The tourism board embarked on a three-city roadshow beginning with New Delhi (September 26) and followed by Mumbai (September 28) and Hyderabad (September 30).
A delegation of over 50 suppliers including DMCs and hotels are participating in the series, led by tourism minister Harin Fernando, and accompanied by Sri Lanka Tourism Promotion Bureau’s chairman Chalaka Gajabahu and Sri Lanka Conventions Bureau’s chairman Thisum Jayasuriya.
To spur demand, the tourism board will roll out special travel packages and joint promotions with partners including Indigo Airlines, Air India and MakeMyTrip.com, as well as organise major events to draw the attention of international tourists. There are also plans to promote new segments, such as golf tourism.
Fernando is confident that international arrivals will recover beginning next year, and emphasised that there is now no more shortage of fuel or electricity in the country.
Sri Lanka had agreed to a conditional US$2.9 billion bailout with International Monetary Fund negotiators earlier this month, and president Ranil Wickremesinghe is presently in Japan to see the possibility of reaching an agreement to restructure the nation’s debt.
International tourism back to 60% of pre-pandemic levels in January-July 2022
International tourism continued to show strong signs of recovery, with arrivals reaching 57% of pre-pandemic levels in the first seven months of 2022.
According to the latest UNWTO World Tourism Barometer, international tourist arrivals almost tripled in January to July 2022 (+172%) compared to the same period of 2021. This means the sector recovered almost 60% of pre-pandemic levels. The steady recovery reflects strong pent-up demand for international travel as well as the easing or lifting of travel restrictions to date (86 countries had no Covid-19 related restrictions as of September 19, 2022).
UNWTO secretary-general Zurab Pololikashvili said: “Tourism continues to recover steadily, yet several challenges remain, from geopolitical to economic. The sector is bringing back hope and opportunity for people everywhere. Now is also the time to rethink tourism, where it is going and how it impacts people and planet.”
An estimated 474 million tourists travelled internationally over the period, compared to the 175 million in the same months of 2021. An estimated 207 million international arrivals were recorded in June and July 2022 combined, over twice the numbers seen in the same two months last year. These months represent 44% of the total arrivals recorded in the first seven months of 2022. Europe welcomed 309 million of these arrivals, accounting for 65% of the total.
Europe and the Middle East lead recovery
Europe and the Middle East showed the fastest recovery in January-July 2022, with arrivals reaching 74% and 76% of 2019 levels respectively. Europe welcomed almost three times as many international arrivals as in the first seven months of 2021 (+190%), with results boosted by strong intra-regional demand and travel from the US. The region saw particularly robust performance in June (-21% over 2019) and July (-16%), reflecting a busy summer period. Arrivals climbed to about 85% of 2019 levels in July. The lifting of travel restrictions in a large number of destinations also fuelled these results (44 countries in Europe had no Covid-19 related restrictions as of September 19, 2022).
The Middle East saw international arrivals grow almost four times year-on-year in January-July 2022 (+287%). Arrivals exceeded pre-pandemic levels in July (+3%), boosted by the extraordinary results posted by Saudi Arabia (+121%) following the Hajj pilgrimage.
The Americas (+103%) and Africa (+171%) also recorded strong growth in January-July 2022 compared to 2021, reaching 65% and 60% of 2019 levels respectively. Asia and the Pacific (+165%) saw arrivals more than double in the first seven months of 2022, though they remained 86% below 2019 levels, as some borders remained closed to non-essential travel.
Sub-regions and destinations
Several sub-regions reached 70% to 85% of their pre-pandemic arrivals in January-July 2022. Southern Mediterranean Europe (-15% over 2019), the Caribbean (-18%) and Central America (-20%) showed the fastest recovery towards 2019 levels. Western Europe (-26%) and Northern Europe (-27%) also posted strong results. In July, arrivals came close to pre-pandemic levels in the Caribbean (-5%), Southern and Mediterranean Europe (-6%) and Central America (-8%).
Among destinations reporting data on international arrivals in the first five to seven months of 2022, those exceeding pre-pandemic levels were: the US Virgin Islands (+32% over 2019), Albania (+19%), Saint Maarten (+15%), Ethiopia and Honduras (both +13%), Andorra (+10%), Puerto Rico (+7%), the UAE and Dominican Republic (both +3%), San Marino and El Salvador (both +1%) and Curaçao (0%).
Among destinations reporting data on international tourism receipts in the first five to seven months of 2022, Serbia (+73%), Sudan (+64%), Romania (+43%), Albania (+32%), North Macedonia (+24%), Pakistan (+18%), Turkey, Bangladesh and Latvia (all +12%), Mexico and Portugal (both +8%), Kenya (+5%) and Colombia (+2%) all exceeded pre-pandemic levels in January-July 2022.
Tourism spending rises but challenges grow
The ongoing recovery can also be seen in outbound tourism spending from major source markets. Expenditure from France climbed to -12% in January-July 2022 compared to 2019 while spending from Germany rose to -14%. International tourism spending stood at -23% in Italy and -26% in the US.
Robust performance was also recorded in international passenger air traffic, with a 234% increase in January-July 2022 (45% below 2019 levels) and a recovery of some 70% of pre-pandemic traffic levels in July, according to IATA.
Stronger-than-expected demand has also created important operational and workforce challenges in tourism companies and infrastructure, particularly airports. Additionally, the economic situation, exacerbated by the aggression of the Russian Federation against Ukraine, represents a major downside risk. The combination of increasing interest rates in all major economies, rising energy and food prices and the growing prospects of a global recession as indicated by the World Bank, are major threats to the recovery of international tourism through the remainder of 2022 and 2023. The potential slowdown can be seen in the latest UNWTO Confidence Index, which reflects a more cautious outlook, as well as in booking trends which are showings signs of slower growth.
Tourism experts cautiously confident
On a scale of 0 to 200, the UNWTO Panel of Tourism Experts rated the period May-August 2022 with a score of 125, matching the bullish expectations expressed by the Panel in the May survey for the same four-month period (124).
Prospects for the remainder of the year are cautiously optimistic. Although above-average performance is expected, tourism experts rated the period September-December 2022 with a score of 111, below the 125 score of the previous four months, showing a downgrade in confidence levels. Almost half of experts (47%) see positive prospects for the period September-December 2022, while 24% expect no particular change and 28% consider it could be worse. Experts also seem confident about 2023, as 65% see better tourism performance than in 2022.
The uncertain economic environment seems to have nonetheless reversed prospects for a return to pre-pandemic levels in the near term. Some 61% of experts now see a potential return of international arrivals to 2019 levels in 2024 or later while those indicating a return to pre-pandemic levels in 2023 has diminished (27%) compared to the May survey (48%).
According to experts, the economic environment continues to be the main factor weighing on the recovery of international tourism. Rising inflation and the spike in oil prices results in higher transport and accommodation costs, while putting consumer purchasing power and savings under pressure.
End of Hong Kong’s quarantine restrictions draws mixed reactions
Hong Kong’s latest measures to scrap the hotel quarantine arrangement for passengers arriving in Hong Kong effective 26 September 2022 yielded lifted sentiment of travel.
Inbound travellers from Taiwan and other countries arriving at Hong Kong International Airport will no longer be required to undergo hotel quarantine with the new “0+3” measure which includes a three-day self-monitored medical surveillance arrangement – with the exception of access to high-risk areas like restaurants.
Corporate Travel Management Asia’s CEO Larry Lo said: “We welcome the ‘0+3’ policy and it will benefit those corporate and leisure travellers and boost outbound travels. However, it can’t help much with the Hong Kong economy since the inbound travellers can’t dine out and join public functions once they arrived in Hong Kong.”
The Federation of Hong Kong Hotel Owners’ association manager, Winnie Chan, said the measure would facilitate outbound travel more than it would lure overseas visitors. As a result, Hong Kong hotels can expect to lose about 20 per cent of local travellers to outbound trips.
“Without quarantine hotel bookings, hotels are back to compete with existing players in the staycation, long-staying package, F&B and banquet business. But (the) size of (the) domestic market is limited and (the) mainland Chinese market remains as our key source of business.
“The ultimate solution is (the complete) reopening of (the) border between Hong Kong and China,” Chan opined.
Regardless of business sentiments, airlines are leaping forward with improved services to facilitate travel. Cathay Pacific will add more than 400 flights in October to both regional and longhaul destinations.
Newly inaugurated Greater Bay Airlines will add an additional weekly frequency to Bangkok from October 4, and has plans to add more flights between Hong Kong and Thailand from November. The airline will also operate flights between Hong Kong and China, Taiwan, Japan and South Korea in the coming months, subject to approval from the respective authorities.
There is no clear roadmap on when all restrictions will be lifted, but Hong Kong chief executive John Lee said the government would continue to monitor the situation. Any changes would be done “progressively and in an orderly manner”, Lee said.
Ascott refreshes Citadines brand, expands portfolio
The Ascott has refreshed the Citadines brand with 80 properties under development across 56 cities, quadrupling its portfolio to 104 properties in operation, including its latest flagship property, Citadines Raffles Place Singapore.
As part of the Citadines brand refresh, a brand film titled For The Love of Cities will be shown on various digital and social channels, illustrating how each city offers its own unique sights, sounds and experiences.
Tan Bee Leng, Ascott’s managing director for brand & marketing, said: “We have always believed in the market potential of aparthotel living. Supported by its design versatility, favourable guest demographics and resilient market fundamentals, the growth of the brand has been exponential.
“Over the past few years, the serviced apartment business has transformed. We have likewise pivoted our offerings towards a hybrid model that would not only allow us to offer the option of both hotel rooms and serviced residences, but also a robust programme that better caters to the lifestyle needs of our guests.”
As part of the refreshed brand and its ambition to promote a well-balanced lifestyle, ‘activ∞’ will be a key brand signature across all Citadines properties. A curation of amenities and programmes to jumpstart city living, activ∞ will ensure guests can live, work and play seamlessly within the property and around the city, such as resident events, fitness amenities and programmes that encourage an active lifestyle.
Another signature programme is ‘For the Love of Coffee’, a collaboration with local communities to deliver unique coffee-related Citadines experiences to guests around the world. For the month of October this year, Citadines properties around the world will be launching a series of coffee activation activities.
Other brand signature initiatives include the café check-in experience at Citadines Raffles Place Singapore, and the social-lounge-turned-coffee-bar at Citadines Bay City Manila.
Convertible features are also another brand signature, transforming spaces to suit guests’ needs – for example, at Citadines Raffles Place Singapore, the residents’ kitchen is a private dining space which doubles up for both meetings and intimate dining events; and at the lobby, a shared workspace is fitted with varying seating arrangements.
Citadines associates, known as Citazens, will undergo barista training and double-up as baristas, in addition to providing guests with the best hacks to navigate city living. This programme has since been successfully rolled out at Citadines Sudirman Jakarta, and will be further expanded to other Citadines properties.
The refreshed Citadines brand will progressively roll out all initiatives across regions including the Americas, Asia-Pacific, Europe and the Middle East by 2025.
A regional TikTok campaign was also launched yesterday across eight markets: Australia, France, Indonesia, Japan, Singapore, Vietnam, the Philippines and the UAE.
Royal Caribbean to recruit 1,400 for onboard entertainment
Royal Caribbean International (RCI) will recruit more musicians and entertainers over the next year across its 26 ships, including its newest addition Icon of the Seas which sets sails next year.
With music and entertainment at the heart of Royal Caribbean holidays comprising nearly 800 music sets and 142 production shows performed each night, this move will help thousands of emerging artistes kickstart their career as they join the existing 3,000-plus cast members and production staff.
Nick Weir, senior vice president, entertainment, RCI, said: “We keep pushing the boundaries of what is possible in entertainment in front of 105,000 guests each night, and the choice of career opportunities available to entertainment professionals is in the thousands.
“To continue raising the bar, we are expanding our incredibly talented roster of world-class vocalists, Olympic athletes, Broadway and West End stars, acclaimed producers and directors, to name a few. We are also committing more resources than ever before to music and entertainment for 2023.”
Performers have the opportunity to develop their talent with regular work – multiple nights a week – in front of an audience of thousands, all while travelling the world. As many as 25,000 performers from across the world audition for RCI every year, with many training at its 12,309m2 entertainment studio facility in Miami.
SLH collaborates with Malaysian artist to encourage wanderlust
Small Luxury Hotels of the World’s (SLH) has unveiled its first artist collaboration with Malaysian artist Beatrice Oh to expand holiday horizons for guests.
Oh’s storybook characters, Dumpling the Tiger and Li, will invite viewers to follow them on travel adventures around the world through a series of illustrations detailing the characters’ unexpected adventure and friendship as they set off on a worldwide expedition in search of Dumpling’s home. In the process, the duo will traverse diverse destinations, try out new activities, and get acquainted with the local communities as they try to find out where Dumpling’s home may be.
Viewers are invited to join in their whimsical adventures via social media and encouraged to take a step to go on new travel adventures on their own. There will also be limited edition Dumpling the Tiger memorabilia and complimentary stays at SLH hotels to be given away, as well as travel-themed stickers available on GIPHY, Whatsapp, LINE and WeChat.
“Dumpling the Tiger was created as a little love letter to my place of origin – Malaysia, to bring out the culture and warmth of the people I grew up with,” said Beatrice Oh. “I hope the story brings readers some form of simple escapism and joy where we are free to roam about with a wild animal through familiar and new landscapes beyond.”
Richard Hyde, managing director, Small Luxury Hotels of the World, said: “Dumpling and Li are relatable characters for the brand to showcase standout experiences at our characterful collection of hotels in unusual places, giving users a window into the world out there waiting for them to explore, and in the process, enrich their inner lives.”
Spreading care and compassion across borders
As tour agencies big and small bet on a sharp recovery in leisure travel bookings to drive profitability, one Singapore-based operator is shifting gear to cater to travellers who seek to give back or practise their faith while on holidays.
From life liberation daytrips which would see marine life put back into the sea to trips to Batam, Indonesia to offer the less-privileged villagers some daily necessities, Ik Chin Travel prides itself as being a progressive enterprise that’s adaptable to the evolving needs of their customers.
The Covid-19 pandemic has given us an opportunity to stop and “see” compassion for what it is – a driver of change in an otherwise (mostly) apathetic world. According to Kok Jin Dao, general manager at Ik Chin Travel, there has been a mindset shift among customers before 2020 and now.
“There are so many stories of kindness during the pandemic; at times of need, people will lend a helping hand to support each other,” Kok said. “When we first started, we faced difficulties gathering groups due to the fear of the pandemic but as time passed, we saw more people signing up for our tours.”
Kok credits the travel agency’s change in business focus to the founders’ faith in Buddhism. Their arranged trips include annual visits to make offerings to the Buddhist Sangha community in Malacca. Ik Chin also organises Buddhism-related visits to India.
“One main difference about our travel agency is that there is some Buddhism influence in many of the tours we arrange,” he said. “For example, our life liberation tours will include a Buddhism ritual before the lives (marine or wild life) are released back to their communities.”
By arranging such tours to enable others to accumulate merits, Ik Chin’s founders and employees also hope to be able to contribute to the good deeds themselves.
“We realised that there are many people who want to do good but have not been able to find the opportunity to do so – by presenting our services to them, they’re willing to sign up for such trips to do good deeds with other like-minded tour members,” he explained.
While these trips are unlikely to alter the lives of the less privileged overnight, Kok believes in the virtuous cycle of care and compassion. He shared: “As interpersonal relations become more transactional, we hope that through these trips, people are able to open their hearts more to care for and love others.”
Indeed, vacations need not be grand to be significant, and travellers can also find it rewarding to treat themselves to a trip of helping others. With more destinations and themes coming up at Ik Chin, travellers seeking to get a boost of endorphins from helping others will have more choices to select from.
Ik Chin has plans to organise tours to support the less fortunate students in Malacca and host visits to a village in Chiang Mai where customers will spend time interacting with and providing support for local villagers and students – from cooking them a meal to offering daily or school necessities.
“During a holiday, we are able to put away our troubles and enjoy, unwind and recharge. It is the perfect time to do good – not only can we do it more wholeheartedly, we can also share genuine joy and love with others,” Kok said.
Travel recovery slow despite Malaysia’s weakened currency
The ringgit has depreciated almost 11 per cent against the US dollar since the start of the year, making ground costs more competitive to markets that contract in US dollars. At press time on Monday, the ringgit reached a historic low of 4.6 ringgit against the US dollar.
However, inbound agents told TTG Asia that the favourable exchange rate has not resulted in a huge pick up in business as both airfares and air connectivity remain an issue.
Arokia Das Anthony, director of The Essence of Asia Tours & Travel, lamented the lack of direct flights from the Indian cities of Amritsar, Hyderabad and Cochin, all of which are big source markets for Malaysia. For Indian cities that connect directly with Kuala Lumpur, flight frequencies have yet to return to pre-Covid levels.
He felt that Indian arrivals could have performed much better for Malaysia if there was better airlift. While Vietnam arrivals had picked up by “quite a bit” but he was unsure if it would sustain until end of the year.
Alex Lee, CEO, Ping Anchorage Travel & Tours, agrees, saying that poor air connectivity is hindering Europeans from choosing Malaysia even though the destination is very competitive now in the South-east Asia region.
Although the ringgit is in travellers’ favour, demand must be created for supportive flights to follow, opined Lee. In this regard, Ping Anchorage Travel & Tours is creating new packages with themes like beach retreats, nature, heritage and the arts, and will be exhibiting under the Tourism Terengganu pavilion at World Travel Market in London this November.
When asked about forward bookings for the year-end, Arokia said it was still too soon to tell – outbound agents are refraining from promoting specific destination at this point, so as to spread their business and reduce financial risks.
For Manfred Kurz, managing director, Diethelm Travel Malaysia, forward bookings were coming in “more or less as predicted” but it was getting harder to project the year-end performance as the booking lead time from Europe and the US had become shorter post-lockdown. While Europeans and Americans used to book three to four months ahead, they are now confirming just one or two months before their desired travel dates.
Airlines gear up for return to Japan
Airlines are announcing the resumption and expansion of services to Japan in the coming months in response to the opening up of the country to independent, visa-free travel from October 11.
American Airlines and Delta Airlines will resume services between Haneda and Los Angeles from the end of October. United Airlines, meanwhile, will start its first route between the two cities at the same time, a launch that was initially planned for March 2020.
A daily flight between Honolulu and Haneda, which was also delayed due to the pandemic, is set to be offered by Delta Airlines from December 1.
Turkish Airlines will resume its Istanbul–Narita route on December 15, with three flights per week, marking the first time the carrier has operated the service since March 2020.
Japan Airlines will resume its Hong Kong–Haneda route on October 31.
Airlines are also increasing the number of flights on routes already in operation.
From October 1, Japan Airlines will offer a daily flight from Haneda to Chicago and from Haneda to Delhi. Two flights will also be available daily between Narita and Jakarta. The airline will increase the frequency of flights from Narita to Frankfurt, turning it into a daily service.
Singapore Airlines will add a second daily flight to Osaka from October 30, and increase flights to Fukuoka to thrice weekly.
All Nippon Airlines intends to boost its North America services to about 90 per cent of pre-pandemic levels from October 30. The airline’s CEO Shinichi Inoue said the airline “wants to welcome visitors from overseas with increased flights”.
Air Macau announced its intention to resume weekly flights to Japan from October. A spokesperson commented that “it’s the first time for Air Macau to resume international flights since the start of the pandemic”.
Laguna Phuket integrated resort will host the 28th edition of Laguna Phuket Triathlon on November 20 following the event’s two-year pandemic disruption.
The race features a combination of a 1.8km swim, 50km bike and 12km run through the grounds of Laguna Phuket and local communities in the northern part of the Thai resort Island.
Over the past 28 years, the race has attracted thousands of elite athletes as well as triathlon legends such as Imogen Simmonds, Belinda Granger and Jan Frodeno.