ASEANTA lays out tourism restart plan
The ASEAN Tourism Association (ASEANTA) has called on South-east Asia leaders to take urgent action to reboot the travel and tourism industry in the region by Q2 this year, and save the tourism industry from collapsing under the weight of the pandemic.
During the recent 24th Meeting of the ASEAN Tourism Ministers, which took place virtually last week and was hosted by Cambodia, ASEANTA laid down a series of recommendations to the ministers, including continuing their respective governments’ support in a fair and equitable manner to ensure survival of the industry. This includes government guaranteed loan, tax reliefs, subsidies, incentives, and other relevant fiscal policies.
The association also called on the respective governments to prepare for the reopening of borders by laying down frameworks for cross-border travel, standard operating procedures (SOPs) for the whole tourism ecosystem, and guidelines on testing and vaccination by Q1 this year. That also covers the possible development of a common ASEAN health passport, with the potential integration of existing contact tracing or health declaration apps.
In addition, they urged the tourism ministers to facilitate the resumption of all types of travel – including business, leisure and VFR travel – by Q2 this year, in accordance with the ASEAN Travel Corridor Arrangement (TCA) framework.
The ASEAN TCA framework, which was issued last November by the South-east Asia leaders, aims to develop a common set of pre-departure and post-arrival health and safety measures, led by the Indonesian foreign affairs ministry. The development of ASEAN TCA would help restart cross-border travel by laying down a common set of requirements across countries.
Under the ASEAN TCA, ASEANTA proposed for business travel corridors to include the following safety measures: pre-departure and arrival testing, self-isolation for only one to two days until PCR test-on-arrival results are released, a controlled itinerary or allowance for business travellers to travel for leisure after as long as it’s sponsored by the company, and no quarantine for returning business travellers.
The association also floated the possibility of quarantine-free travel bubbles to allow leisure and VFR travel between low-risk countries, with no quarantine imposed on both incoming and returning travellers. The plan would entail the need for mutually recognised testing procedures, alongside common vaccine documentation for ease of verification.
Business travel alone will not be enough to restore intra-ASEAN traffic to healthy levels, ASEANTA said, noting that intra-ASEAN traffic is 35 per cent of the total international O&D passenger traffic in South-east Asia. It also pointed out that reciprocal green lane (RGL) arrangements have not generated significant volumes of air traffic, citing official data showing that Singapore received only around 835 inbound travellers from the South-east Asia region travelling under the RGL arrangements between June 8 to December 25 last year.
If reopening of borders is limited to essential business travel, passenger traffic between South-east Asian countries will likely remain at less than five per cent of normal levels for most of 2021, it added.
ASEANTA also emphasised the important role of the travel and tourism sector to South-east Asia’s economy. In 2019, the travel and tourism sector contributed US$380 billion or 12.1 per cent to South-east Asia’s GDP and created 42.3 million jobs or 13.3 per cent of total employment in the region.
Royal Caribbean extends Singapore sailings
Royal Caribbean International (RCI) has extended the Singapore season for Quantum of the Seas by another three months until June 21, 2021.
With the success of its safe cruises pilot programme, which launched in December 2020, Quantum will continue to offer two-, three- and four-night Ocean Getaways to Singapore residents.
The additional sailings, kicking off on March 22, will continue to operate with stringent health and safety measures in place, such as mandatory Covid-19 testing, reduced sailing capacity and safe distancing measures.
The Singapore sailings has earned many repeat bookings among local cruisers, according to Angie Stephen, managing director, Asia Pacific, RCI.
For bookings made before April 30, changes and cancellations are allowed up to 48 hours before the cruise. Should a guest or any member of their travel party test positive for Covid-19 during the three weeks prior to their booked cruise, they will each get a 100 per cent credit towards a future cruise. As well, a full refund will be given if a guest, or any member of their travel party, tests positive during their voyage.
Royal Caribbean will continue to cover Covid-19-related costs up to S$25,000 (US$18,800) per person for onboard medical expenses, including quarantine fees, and travel costs to get home.
Move to house foreign workers in Malaysia hotels draws criticism
Hotel associations in Malaysia have hit out at a government-led initiative to temporarily house foreign workers at hotels to curb the escalating Covid-19 cases caused by cramped living conditions at workers’ dormitories.
The Ministry of Tourism, Arts and Culture Malaysia (MOTAC) said the initiative was “the best alternative at the moment” as it would also provide a lifeline to hotel operators suffering the brunt of the virus crisis.
The cost to rent a hotel room will be RM200 (US$49) per person per month, and there will be an additional RM20 charge to cover water and electricity. This is regardless of hotel category.
MOTAC’s initiative in collaboration with the Department of Manpower Peninsular Malaysia will be carried out in accordance to the Minimum Standards on Housing, Accommodation and Workers’ Standards Act (Act 446).
Applications have been opened to interested hotels that meet the requirements. However, instead of welcoming the initiative as a saviour to their struggling businesses, hotel associations have criticised the move, citing the low room rates and impracticality of the solution as reasons.
Malaysia Budget & Business Hotel Association (formerly known as Malaysia Budget Hotel Association) national deputy president, Sri Ganesh Michiel, explained: “The hotel rate fixed by the government is very low and hotels will be on the losing end. There is a high possibility that the workers, who had been living in hostels in the past, will damage the hotel rooms and the hotel will have to bear the (repair) cost.”
When asked what would be a good rate, he suggested RM50 per person, per night for hotels in the budget to mid-tier category.
Yap Lip Seng, CEO, Malaysian Association of Hotels, shared that the government’s initiative may not be in hotels’ best interests.
He said: “Various factors need to be taken into consideration (when housing foreign workers), including the expected high wear and tear as well as different needs of these workers, in comparison with normal hotel guests. Capacity of hotel rooms is also limited by bed set-up, while special control measures are needed to ensure physical distancing is practiced.”
Equity in vaccine distribution key to speedy global recovery: AAPA
As the Covid-19 vaccine rollout promises a glimpse of travel rebound, the Association of Asia Pacific Airlines (AAPA) warns that global economic recovery may likely be hampered by inequality of immunisation in developing countries.
Its director-general, Subhas Menon, cautioned: “Everyone is pinning their hopes on the vaccine and mass immunisation. No one is safe until everyone is safe. Unfortunately, this is not the approach taken by many. It seems like – with regard to immunisation – while the developed world will be done and dusted by the end of the year, the developing and emerging world is on a very long and slow road to achieving the same result. Even large economies that have vaccine production like India, China and Russia are struggling to remain on the chart (of mass immunisation).”
Data from the Economist Intelligence Unit predicts that the first countries in Asia-Pacific to have vaccinated 60 per cent of their populations by end-2021 are Hong Kong, Singapore and Taiwan. Australia, New Zealand, Japan, South Korea, Vietnam, Brunei, Thailand, India, Malaysia and China are expected to follow in 2022; with Bhutan, Indonesia, Bangladesh, the Philippines and Pakistan potentially achieving the milestone in 2023-2024.
Countries such as Afghanistan, Cambodia, Laos, Myanmar and Sri Lanka may only reach the target in 2025 and beyond. Menon observed: “(These) tourism-dependent countries are all very far down the road to mass immunisation. WHO has recognised the situation and is raising its voice for something to be done about this, but we need the whole world to go back to the basics of interconnectivity and globalisation to find a way forward.
“Economic recovery cannot just hinge on the recovery of the developed world, nor can air travel recovery just proceed with travel (within) the developed world.”
He also clarified that while vaccination has not been proven to stem the infectiousness of Covid-19, mass immunisation can give a destination the ability to safely receive travellers, regardless if they have been inoculated. This would afford a country the flexibility to reject the “no jab, no fly” stance.
As the industry looks towards taking flight once again, AAPA is pumping research into an integrated smart app that will provide travel identification, health status authentication, border control authorisation and other information for travellers of the future. This “Travel Pass” may also provide access to testing centres as well as necessary certifications.
It joins a brimming roster of other smart solutions in the making, such as IATA’s Digital Health App and SITA’s Automatic Border Control, spotlighting the need for these systems to undergo tight audits and standardisation before market launch.
“A very important aspect of the travel pass is the standardisation of the format for (immunity) certification, as well as authentication and audit of test certificates and testing centres. We would need (the involvement of) WHO and ICAO – who are working on this as we speak – and a multilateral agreement will be required for governments to sign. This will be a necessary condition for any travel pass,” asserted Menon.
How the tours and activities industry can future-proof their business following a rollercoaster ride
It’s not often you see an industry that’s been around for decades and carved a place for itself, come of age. In the last three years or so, tours and activities is one such industry that has moved up the ladder and is now recognised as a major player in the travel business. A player worth an estimated US$180 billion annually, and as such, travel retailers and investors have shown a great deal of interest in this sector.
Then along came Covid.
Following a horrendous year, the travel industry is now feeling the very early signs of recovery, but as tourism starts to grow it will need to adjust to a world where everything we do, including all activities, will change. As travellers start to explore the world again, the desire to book tours, theme parks and trips will feature in their plans, however the likelihood is that they won’t be experienced in quite the same way as before. Heading into the new year and beyond, tour providers will need to make changes to future-proof their business and in order to do so they will need to focus on three key areas – product offering, pricing and sales channels.
Product
Many regional businesses compare prices with local competition. Two operators offering similar boat trips are likely to price their product at the same or possibly slightly lower level. But tours are about experiences and there are many opportunities to make your tour stand out at little or no extra cost – add a lunch or refreshment to the trip or a bit of theatre into the commentary and you have made a difference.
As tours and activities reopen for business, many will need to be managed in a very different way from what they have known before. Crowds are expected to be much smaller – and more controlled. In a coronavirus era, tours will be Covid-friendly, with smaller or private groups enjoying experiences in the open air. Theme parks may include mandatory temperature checks; visitors and guides in masks and seats spaced to allow for social distancing. Whether families, students, more mature or retired, know your market. Create products that these groups value and make the changes necessary to ensure trust and safety.
Pricing
In recent years, tour operators have penetrated the OTA industry, but while this has been a leap forward for many, they need to be cautious. Every business should understand its costs and profit margins, debts and so on. Selling product requires an understanding of the market, and tour operators are no different. However, they may struggle to market their product(s) to what could be a very diverse and disparate market. Distribution costs, fixed and variable costs and post-pandemic smaller group sizes are just a few areas that need to be factored into the cost of a tour, especially for operators that sell through third parties and not through direct sales channels.
Sales channels
According to a report last year by Arival, the percentage of bookings made online still sits below 30 per cent but continues to grow at a rapid rate. Walk ups will no longer work, and as people plan ahead and research the safety of tours, more sales channels will go digital.
New solutions are available, enabling tour providers to manage their inventory and sell directly online or through third parties – including OTAs.
They connect activity providers with travellers who have become accustomed to planning and securing their travel needs online. Some of the more advanced systems, such as our own reservation system TripAdmit Thrive, also enable operators to administer seasonal pricing variables.
Systems like these are designed to enhance online sales and distribution capabilities and are helping tour operators reach markets on a global scale. Great news for this multi-billion dollar industry whose shift to online is reminiscent of the early days of online hotel and airline booking.
The tours industry is fragmented, with the majority of businesses run by small teams of two to 10 people. These businesses are longing for travel to return to a sense of normality, as we all are, but in many ways, they are better equipped to deal with this crisis. With little monthly costs, many can sit tight and wait for the recovery to start. As most predict that this will be driven in the order of local, regional and international travel, tours and activities are best placed for each stage of the recovery.
Those businesses that are digitally focused, are adaptable and offer outstanding and safe experiences will succeed and secure their future when this crisis comes to an end. The operators that are also strategic in their product pricing will be the ones making a very healthy profit on top.
TTG Asia breaks for Lunar New Year
TTG Asia will be taking a break from February 12-15, 2021, for the Lunar New Year holidays. News will resume on Tuesday, February 16, 2021.
From all of us at TTG Asia Media, we wish all of our readers a happy and prosperous Lunar New Year!
SIA welcomes new GM for China market
Singapore Airlines has appointed Ng Boon Kiat Melvin as its general manager for China, effective since February 8, 2021.
Based in Beijing, Ng is responsible for the airline’s strategic planning and market expansion in China.
Having been with the airline for nearly two decades since 2002, Ng has successively held several positions including sales and distribution executive, corporate account manager, regional marketing manager for North Asia, and manager for Northern China.
He has also taken on the general manager role across several markets, namely, Sri Lanka, Russia, Vietnam, and Taiwan.
Tang’s Living Group bolsters senior management team
Tang’s Living Group has appointed two new group general managers to its senior management team.
Henry Tse, current general manager of Hotel COZi, steps into his new role as the group general manager – hotel operations & brand development of Hotel COZi, Bay Bridge Lifestyle Retreat and Commune. His new role will see him managing five hotels and a co-living space.
Prior to joining Hotel COZi as hotel manager and serving as part of the hotel’s pre-opening management team back in 2017, Tse has over 30 years of hospitality experience. He previously held management positions at hotels such as Dorsett Tsuen Wan Hong Kong and Silka Far East Hotel.
Meanwhile, Alfred Chan, also a 30-year hospitality veteran, assumes the position of group general manager – hotel operations & brand development of Hotel Ease, Hotel Ease Access and Minimal Hotels. In total, he will be managing 10 hotels.
Chan joined Tang’s Living Group in 2018 as the general manager of Hotel Ease‧Tsuen Wan and Hotel Ease Access‧Tsuen Wan, where he helped to enhance brand awareness and development. He has also held leadership roles in Metropark Hotel Kowloon and Kew Green Hotel Wanchai.
Singapore delays segregated travel lane
Delays have set in for a new segregated travel lane allowing short-term business travellers to stay, work and meet at dedicated facilities in Singapore.
According to national papers, The Straits Times, the Connect@Singapore initiative has been delayed at least until February 21. It was scheduled to launch last month, with the first travellers under the scheme arriving in Singapore from the second half of January.
The first dedicated facility these travellers will be put up in under the scheme is now expected to open for check-in only from February 21, sources told The Straits Times.
The Ministry of Trade and Industry (MTI), which is overseeing the Connect @ Singapore scheme, did not say why the scheme has been delayed.
An MTI spokesman would only say that the start date for applications for the scheme will be “broadly aligned with the estimated operational start date of the first Connect @ Singapore facility”.
Singapore Tourism Board’s executive director for infrastructure planning and management, Chew Tiong Heng, told the broadsheet that assessments on the first facility – Connect @ Changi facility at Singapore Expo – are in the final stage and no reservations have been taken from the travellers yet.
Thailand’s Dusit International has signed a hotel management agreement with Al Fajer International Holding Company, a Kuwait-based private real estate company, to operate the first Dusit-branded hotel in the country.
Slated to open in 4Q2023, Dusit Princess Mahboula Kuwait will comprise 180 rooms and 70 serviced apartments under the group’s upper-midscale Dusit Princess brand. The property will be located in the Mahboula district, an industrial and commercial coastal area just 25 minutes by car from both the city centre and Kuwait International Airport.
The new property will be equipped to cater to both transient and long-stay guests, including associates of local oil and gas companies seeking lodgings near their workplaces. The property’s serviced apartments have been specifically designed for families.
Alongside an all-day dining venue, a specialty restaurant, and a lobby lounge, the property will offer a swimming pool, a 900m² gym, and a spa. Four meeting rooms with capacity for 120 people, and a ballroom accommodating up to 350 guests, will cater to the local corporate and events market.