Govt handouts, slashed hotel rates to jumpstart Thai domestic tourism

June 15, 2020

Despite spending power curtailed by lockdowns and weak market confidence, Thai domestic travellers have shown a clear propensity for prepaid hotel bookings, nearby holidays and Airbnb stays.

Attempts by Thai hospitality players to increase cash flow with reduced room rates, coupled with a string of domestic travel stimuli planned by the local government, promise to add to the impetus.

Hotels like Twinpalms Phuket (above) are trying to woo back local tourists by offering free room stays for a minimum spend on F&B credits

Bill Barnett, managing director of C9 Hotelworks, said in an online statement that Thai hotels are being inundated with a “storm of direct email, social media and even phone calls for pre-paid hotel stays,” which he attributes to pent-up demand from travellers “who have missed their holidays and trips and now want to splash out.”

Barnett described many Thai hotels as being stuck in a tight spot and needing cash flow, so much so that they are waiving room fees and charging for meals alone. He cited the case of Twinpalms Phuket, which is now offering a free stay promotion, with a minimum stay of two nights, for a minimum daily spend of 2,000++ (US$64++) baht per person, per day on F&B credits.

“Now that the hotels are allowed to open, they cannot get social security to subsidise their staff, so they have to (obtain) income as they’re stuck with having their staff back (at) work,” Barnett said.

In July, the Thai government hopes to stimulate 100 million domestic trips by offering a 3,000 baht subsidy on five million hotel rooms. A 40 per cent discount on airline tickets will also be offered to Thai tourists next month under a 20 billion baht scheme to rejuvenate local tourism.

Soho Hospitality CEO Rohit Sachdev said: “Domestic demand will definitely be constrained due to weakened spending power but the government is attempting to stimulate spending by providing tourism incentives in the form of cash handouts, and the hospitality industry will probably follow with the support of additional programmes from the Tourism Authority of Thailand.

“It will kick off with the planned Songkran holidays in July. I expect hotels and resorts to offer reduced room rates and attractive full board packages as incentives to drive consumer demand.”

During phase three of the country’s reopening, which allows limited inter-provincial travel, Thais had already begun travelling to other parts of the country “in droves”, to the point local officials were propelled to threaten re-closure, reported The Bangkok Post.

As Thailand enters phase four on June 15, the curfew will be lifted and most businesses will be allowed to reopen, except bars, pubs and soapy massages. Phuket airport will also reopen its gates, after a nearly three-month-long hiatus.

Erwin van der Veen, general manager at SALA Hospitality Group, shared in a LinkedIn post that he has seen Samui’s available inventory fully booked for weekends in June, with “quite respectable occupancies on weekdays” – all from Thai nationals and expats. Calling it an encouraging sign, he said: “All we have to do is make great offers, stay positive, communicate well and operate responsibly.”

He also noted that “July OVS bookings appear to be holding from mid-July onwards,” indicating that perhaps travellers are anxiously waiting for government travel approvals.

In a recent blog post, Barnett encouraged Thai hotels to think beyond the cash flow, and focus on their long-term relationships with customers so that they wouldn’t just show up for “one-night stands” and then disappear.

Philippine resort keeps busy with new organic farm

By Rosa Ocampo

June 15, 2020

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A resort in Panglao, Bohol is utilising the pandemic-induced downtime, where tourism has been at zero since mid-March, to innovate by having its staff build an organic farm which is already benefiting the local community.

South Farm provides guests of the neighbouring South Palms Resort Panglao and North Zen Villas with a local agriculture experience within a resort landscape, laden with farm-to-table meals; a rustic camp; educational and festive activities; hand-made, recycled materials; among others.

Workers at South Farm in Panglao making drums out of recycled materials

But the owner, hailing from an agricultural heritage, wants to do more so that the farm will be the core for future expansion into a “community hub farm”, said Ken Hawkins, Topo Design Studio’s horticultural consultant, in a Farm to Table Hotels virtual event organised by Delivering Asia Communications.

The organic farm has wide species and varieties of fruits, vegetables, herbs and spices for its sister resorts, and several outside outlets requiring volume and quality. It even has utility plants like abaca whose fiber is popular among weavers, and expansion plans include having satellite farms for certain crops like coffee.

Furry animals were introduced, and there’s a plan to start breeding goats, and with the help of the locals, to produce milk and cheese.

Topo Design Studio designer, Drew Anderson, said the farm is big on recycling to the point where it started recycling and upscaling old machinery and other derelicts to create kids’ play and fun attractions.

While exploring water retention plans, they discovered pink limestone on the property, which are now used in pavements and walls extending to the resorts, Anderson said.

Hawkins said that in researching the history, culture and capabilities of the area, they discovered “little surprising elements” like the “lost forms of local art and craft searching for an audience”.

He added that they are reviving traditional food production in Bohol, such as salt-making, which has specific processes. Currently, only one family in the province is in that business, making sugar from coconut, local cakes called torta, and more.

They’re also reviving the long tradition of pottery that has fallen into neglect in the fairly poor area, with only one ageing lady practising the craft occasionally now.

They have discovered local artisans, sculptural artists and painters who can help revive traditional art and craft, while passing on their knowledge by training the youth.

However, the shuttering of tourism in Bohol since the onslaught of the pandemic has halted all these activities at South Farm. With the resort staff left idle, they were taught new skills and moved to work at the farm, according to Anderson. The restaurant supervisor is now a wood artist; the room attendant, a farmer; and the lifeguard, a welder and carpenter.

The rest of the staff are acquiring new skills at the farm, like learning how to paint, which they will put to use at the resort, once the lockdown eases, Anderson said.

Hoteliers split on Sri Lanka’s strict protocols for tourists

By Feizal Samath

June 15, 2020

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Sri Lanka’s decision to impose stringent Covid-19 testing protocols when it reopens its doors to foreign tourists on August 1 has divided local tourism industry stakeholders.

Some industry players, who declined to be named, are up in arms over the stringent Covid-19 testing protocols. The chairman of a local hotel chain said: “At this rate, tourists would prefer to stay home than come to Sri Lanka.”

Tourism players fear that stringent health protocols may deter foreign visitors to Sri Lanka

However, the heads of two key associations representing hotels and travel agents said such testing protocols are necessary to maintain Sri Lanka’s success in countering Covid-19. The country has seen 1,880 confirmed cases as at June 13, with a death toll of 11.

Sanath Ukwatte, president of The Hotels Association of Sri Lanka, said that those stringent measures help curtail pandemic spread. “The best-case scenario would be no restrictions imposed on tourists. However, we need to respect the health authorities who are doing their utmost to contain this imported disease,” he said.

He projected tourist numbers to be low in the first few months, and urged authorities to revise those protocols as foreign arrivals gradually tick back upwards “three to four months after reopening”.

Sri Lanka Association of Inbound Tour Operators president Mahen Kariyawasam told TTG Asia that authorities had altered an earlier proposal to impose a visa fee on arriving tourists from US$100 to US$35, after they raised concerns that the high visa fee might deter visitors.

Earlier on, the US$35 visa fee was abolished after the 2019 Easter Sunday attacks, to instead allow free-visa entry in a bid to revive the hammered tourism sector. But the authorities had initially planned to increase visa fee rates to US$100, as Sri Lanka had lost millions of dollars last year in revenue following the promulgation of the visa-free arrival scheme.

However, on top of the reinstated US$35 visa fee, arriving tourists will now also have to fork out up to US$65 for Covid-19 tests, depending on the length of their stay.

As per tourism guidelines issued on June 5, travellers need to stay for a minimum five nights and should reside in certified accommodation providers (hotels) which will be listed on the Sri Lanka Tourism website. Details of their hotel bookings are required for the online visa application.

Visitors are required to take a Covid-19 swab test on arrival at the airport, but need not serve quarantine unless symptoms are detected, the guidelines said. However, they would have to stay in the airport until test results are out within four to five hours.

The guidelines also state that a second test will be done four to five days after arrival by a mobile unit in coordination with the certified accommodation provider. Travellers staying for more than 10 days will be required to take a third test during their stay.

Asked whether the enforcement of multiple tests would be a deterrent to visit the country, Kariyawasam said that other countries are imposing compulsory quarantine periods on arriving travellers, whereas in Sri Lanka, visitors are allowed to check into their hotel after testing negative for Covid-19 upon arrival.

“For the first few months, I think we would attract visitors from the Asian region, as there are very few inquiries from Europe,” he said, adding that the European traffic is expected to pick up by early next year. While India and China are Sri Lanka’s main inbound sources, Europe is the largest regional source.

Cambodia draws ire for steep Covid-19 charges on foreign arrivals

By Marissa Carruthers

June 15, 2020

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Fears have been raised among tourism players that a stringent set of Covid-19 testing fees for foreigners arriving in Cambodia will deter incoming visitors and hamper the country’s road to recovery.

On Thursday, the government announced all international arrivals must leave a US$3,000 upfront deposit in either cash or through a credit card to cover the costs of any coronavirus testing. Of that sum, US$165 will go towards paying for a Covid-19 test at a facility close to the airport, as well as one night’s accommodation and food while waiting for results.

Travellers to Cambodia will have to fork out a US$3,000 deposit for the costs of any potential Covid-19 testing

If anyone on the plane arriving into the country tests positive, all passengers will be forced into a 14-day quarantine at a cost of up to US$1,276. If an individual tests positive, up to US$3,550 will be charged for 14 days treatment and quarantine.

This is in addition to previous rules that state foreigners must have US$50,000 health insurance and a Covid-19 negative certificate taken no more than 72 hours before arrival.

Nick Ray, Hanuman Travel product director, said the DMC has started receiving a few high-end and business bookings for the end of 2020 going into 2021. With no date given on when the new measures will be reviewed, he fears the fees will now put people off considering Cambodia.

Said Ray: “This is almost a tourist ban in all but name. The interest (for Cambodia) is here, but if you’re looking at booking a holiday in South-east Asia in the future, then you (are going to) look at the restrictions and bans currently in place. This is off-putting. We need a timeline.”

Virginie Kury, general manager at Asian Trails Cambodia, added the move also hampers Cambodia’s ability to compete with other South-east Asian destinations for visitors, especially longhaul bookings.

She noted: “Other countries, such as Thailand, Malaysia and Vietnam, are focusing on putting in place very clear health and safety measures. They will be the first places longhaul travellers will consider. These charges bring an extra challenge.”

On May 20, Cambodia lifted travel restrictions imposed in late March on the US, France, Germany, Italy, Spain, and Iran.

2020 Singapore Grand Prix canned

By TTG Asia

June 12, 2020

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This year’s Formula 1 Singapore Airlines Singapore Grand Prix has been cancelled due to ongoing nationwide Covid-19 restrictions, said race promoter Singapore GP (SGP) and Formula 1 on Friday.

The cancellation of the event, which was slated to take place on September 20, is in light of “the prohibitions imposed on access and construction of the event venue required for a street race to be held in the city”, said SGP in a press release.

F1 cancels Singapore Grand Prix due to Covid-19 restrictions; Formula 1 Singapore Grand Prix 2019 at Marina Bay Street Circuit pictured

Due to these ongoing limitations, the race promoter said they have not been able to commence with the building and construction work of the circuit, which normally begins in May.

“We are therefore unable to complete the race circuit infrastructure in time for the race to take place,” it added, highlighting other challenges such as ongoing mass gathering and worldwide travel restrictions.

SGP deputy chairman Colin Syn said: “The last few months have been extremely challenging on all fronts, and we have now made this difficult decision which Formula 1 and our stakeholders accept we have had to take. Ultimately, the health and safety of our contractors and their workers, spectators, Formula 1 crew, staff and volunteer marshals is our number one priority and we thank everyone for their patience and unwavering support thus far.”

SGP said it will provide existing ticket-holders with automatic refunds within 30 business days, or an option to rollover their ticket to next year’s event. Those who purchased tickets via authorised ticketing partners should contact them for refunds.

Climbing out of turbulence

By Industry Expert

June 12, 2020

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Krishnan Menon, Wunderman Thompson's chief client officer, Asia Pacific

Back in February, a group of aviation journalists I follow began to compile a list of airlines who were cancelling operations or reducing capacity.

I started to keep track of the sheet, but gave up some weeks later when it all seemed quite pointless. The entire business of commercial passenger aviation was hurtling towards the ground like it would never recover, and airline operators and manufacturers were taking a beating like never before.

If you have ever flown through bad weather, you know that there is always brilliant sunshine and an endless blue sky somewhere beyond or above the storm, and you have a choice – keep climbing to it or turn back and wait until the good weather comes to you.

I think the industry should focus on fighting through the storm to find the sunshine. I am talking about growth. Yes, growth, even at a time like this.

But, unlike any other time in history, it will be growth driven by efficiency and will only be for those airlines who have the courage to radically transform into the most efficient version of themselves.

They can do this in three ways.

Business transformation
Growth in the post-Covid-19 travel industry will only go to ambitious brands who can transform their entire business with efficiency as the north star. Brands that win, will be those that that can innovate quickly to deliver a high-value experience in a low-contact environment to passengers right through consideration, research and booking phases of the customer experience journey and then again at the post-flight and repeat phases.

This means that the focus on rapid design and implementation of a seamless, connected and personalised travel experience through online, mobile and automated-offline will be the key differentiator between those that thrive and those that don’t survive after this crisis. Technology, platform and partner choices will make all the difference here.

Fleet transformation
The current crisis has ensured that the age of big, four-engine white elephants in the sky is at an end. Personally, I don’t think that’s a bad thing, especially with the A380. Though, I will miss the Boeing 747.

Airlines will now have to make the tough fleet choices that a lot of them have been avoiding. Belt-tightening and financial watchdogs will ensure that the aircraft chosen to keep flying will need to deliver operational and cost-efficiency. They will need to burn less fuel per hour with cleaner emissions, and provide operational flexibility so a company can swap the same aircraft type for medium-haul and long-haul routes to make flight crews more versatile and maintenance or ground handling more cost-effective.

The fleets will also, critically, need to be future-ready to ensure that the technology onboard can also connect seamlessly to the transformed service delivery the travelling passenger expects. The crucial ‘day-of-travel’ experience will motivate airline choices more than ever and they will be measured on not just comfort and service but also on the new expectations of personal safety in the low-contact world.

In the new future, all long- and medium-haul travel will be confined to the most efficient of aircraft. Most of these already exist and have been part of airline fleets for the last few years and a couple are about to join service. These aircraft will be kinder to the environment, to passengers and to the airlines’ own profits.

Category transformation
The effect of the current crisis combined with the focus on growth through efficiency presents an opportunity for the emergence of a hybrid airline model, a “low-cost-full-service” airline if you like. The low-cost-carrier (LCC) model has been tried and tested and the world’s biggest airline by market capitalisation (Southwest) is one of them.

LCCs have a bad rep though, mainly because most people believe that low-cost refers to the cost of tickets for no-frills flights rather than the cost to operate the airline. So, they get called “budget airlines” among a lot of other unpleasant names and get rude jokes made about how they remind the passenger at every stage that they are cheap. It is hard to keep costs low and operate well and there are only a few who do it brilliantly. Scoot, Southwest, AirAsia, Indigo & Jetstar come to mind. One interesting airline model that stands out is FlyDubai, a medium-sized middle eastern low-cost-carrier but with all the frills.

As airlines focus on transforming their businesses through technology and automation and rationalising their operating fleets, many opportunities for consistency, standardisation and economies of scale open up in the most expensive parts of an airline’s operation.

Some additional effort on route rationalisation, airport selection and optimisation could deliver huge cost efficiencies without an impact on passenger service delivery standards and then, they will truly be flying open, sunny skies into a profitable and predictable future.

Thailand’s domestic travel bounces back

By TTG Asia

June 12, 2020

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Airbnb has observed a surge in domestic bookings in Thailand, with the number of reservations rebounding to pre-Covid levels, up 13 per cent from last year.

With travel slowly resuming in Thailand, domestic travel is trending to nearby destinations. Top domestic destinations from May 12 to June 10 in Thailand include Bangkok, Hua Hin, Pattaya, Chiang Mai and Phetchaburi, with travel to non-urban destinations comprising 45 per cent of bookings, based on recent booking data.

Airbnb bookings show a surge in domestic bookings across Asia-Pacific, including Thailand; tourists visiting Wat Saket temple in Chiang Mai, Thailand pictured

Across other markets in Asia-Pacific, domestic travel is also on the rise, with Airbnb seeing a surge in bookings in the last month in Australia, New Zealand, South Korea, and Japan. In May 2020, over 60 per cent of all bookings on Airbnb were for listings in non-urban destinations.

Between May 18-24, there were more nights booked for domestic travel on Airbnb globally compared to the same period in 2019. From June 5-7, for the first time since February, year-over-year growth in gross booking value (not including cancellations or alterations) has increased for all Airbnb reservations made around the globe.

Tapping into the demand for nearby trips, Airbnb said it will be updating its app and homepage to feature local trip ideas and nearby getaways.

Kum Hong Siew, regional director (Asia-Pacific), Airbnb, said: “We are already seeing early positive signs of domestic travel getting ready to make a comeback, driven by locals booking holidays that are closer to home. This latest data reinforces our belief that travellers increasingly are looking for more local, authentic and affordable experiences.

“Tourism is a key driver of economic growth in Thailand and it will play an important role in overall recovery. We are committed to working hand in hand with governments, tourist agencies, communities and other key local stakeholders in Thailand to help restore travel in a responsible way that economically benefits local citizens and small businesses, paving the way towards tourism’s much-needed recovery.”

Tourism revival key to SE Asia’s economic recovery: FATA

By TTG Asia

June 12, 2020

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As the coronavirus leaves economies reeling, the tourism industry will be among the first to recover, and its revival will spur the economic growth in South-east Asia, said the Federation of ASEAN Travel Associations (FATA).

FATA president Tan Kok Liang said in a statement that once tourism within the region recovers, it will quickly become the catalyst for the revival of other affected sectors linked to the industry.

Tourism sector plays a crucial role in *boosting South*–*east Asia’s* recovery, says FATA; *Golden Bridge* in Vietnam’s *Ba Na Hills pictured*

“Ensuring that the travel and tourism industry is the first to recover would mean instant activation of a wide range of related micro-economies. The impact from the tremendous growth of tourism in (South-east Asia) will be an eye-opener; creating curiosity and branding opportunities in international markets,” Tan said.

For his part, FATA secretary general and Philippine Travel Agencies Association president Ritchie Tuaño said the ASEAN Tourism Strategic Plan (ATSP) for 2016 to 2025 remains their guidepost amid the pandemic, and beyond.

“We need to continue to position and brand (South-east Asia) as a single market destination. Then, within each member state, sub-regional destinations and circuits must be promoted,” Tuaño said.

FATA members will work with governments in the region to ensure that tourism survives the pandemic, while ensuring stakeholders’ readiness post-Covid-19, he added.

FATA said the potential of domestic tourism within South-east Asia, with its 622 million population, can match that of Europe, China, and the US.

Last year, tourist arrivals to the South-east Asian region hit 133 million, 10 million above ATSP’s projection. This shows the key role tourism plays in economies within the region, contributing at least two per cent to 14.5 per cent to each member’s GDP, FATA said.

Tan also urged ASEAN member states to strengthen cooperation in the sharing of information and exchange of best practices, in order to boost confidence of stakeholders and travellers.

He said the move “will further build resilience and prepare the region to effectively implement and manage sustainable tourism in the aftermath of a crisis”.

CAPA rolls out new tool to project air capacity

By TTG Asia

June 12, 2020

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Airplanes — CAPA launches data models for airlines to project future capacity growth

Market intelligence provider CAPA – Centre for Aviation has launched a series of interactive data models designed to project future air capacity in key markets across the world.

Supported by travel data provider OAG, the CAPA Airline Capacity Models provides a breakdown of each nation’s domestic and international outlook for seat capacity – as well as each city and route pair – based on 2019’s actual figures. It also takes into account government statements, airline network announcements and capacity projections.

CAPA launches data models for airlines to project future capacity growth

Using assumptions around six key phases: Zero/Grounded, Skeleton, Acutely Restricted, Basic, Restrained, and Standard, users can track the pace of recovery in their relevant market.

Derek Sadubin, managing director, CAPA – Centre for Aviation, said: “The impact of Covid-19 has damaged the efficacy of traditional methods of understanding the future size and scale of our industry.

“Frustrated by the lack of a model that takes into account border closures and other key assumptions around the pace of recovery of domestic and international passenger markets, we set out to build our own model with the support of OAG.”

CAPA has rolled out Airline Capacity Models in Australia, New Zealand and China, while models for the UK, France, Germany, the US, India, Japan, South Korea, and other countries will follow.

New website aims to promote Covid-19 efforts in SE Asia

By TTG Asia

June 12, 2020

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South-east Asian countries have agreed to publicise Covid-19-related updates, as well as promote the region’s tourism offerings, on a shared platform.

All updates on travel, tourism and measures to combat Covid-19 relating to the ASEAN member states can soon be found at visitseasia.travel.

During a recent video conference meeting, *representatives* from ASEAN member countries agree to use visitseasia.travel website as official platform for all tourism and Covid-19-related updates

Covid-19-related content featured on the site will include statistics, travel advisory notices, mitigation efforts, new policies, and success stories from each member state in handling Covid-19.

The move was proposed by current chair of the ASEAN Tourism Communication Team, Malaysia, during the Special Video Conference Meeting of the ASEAN Tourism Communication Team on the Coronavirus Disease (COVID-19) held on June 4, 2020.

During the meeting, the director of inter-institutional relations for the Ministry of Tourism and Creative Economy (MoTCE) and head of the Indonesian delegation, Candra Negara, said that the focus of all ASEAN member states is to restore tourists’ trust in the cleanliness and safety of South-east Asian destinations.

Global travellers are keen to know the efforts by tourism stakeholders in these destinations to tackle the new normal post-Covid, he added.

Agustini Rahayu, director of communication bureau for MoTCE, said that Indonesia’s handling of Covid-19 includes “enhancing channels of communication, introducing services to reassure tourists, and the deployment of human and digital resources of the tourism and creative economies to tackle the crisis”.

Following this approach, the Indonesian government has provided the covid19.go.id website, which is managed by the national task force, as an official source of Covid-19 data in Indonesia. Specifically, for the tourism and creative economy sector, MoTCE also provides regular Covid-19-related updates on the pedulicovid19.kemenparekraf.go.id microsite.

In addition to the deployment of digital and communications resources, the Indonesian government, through the Ministry of Health, has also issued several health protocols for various sectors published in both paper and electronic format (mobile and desktop) as a Health Care Card for tourists.

Govt handouts, slashed hotel rates to jumpstart Thai domestic tourism

Philippine resort keeps busy with new organic farm

Hoteliers split on Sri Lanka’s strict protocols for tourists

Cambodia draws ire for steep Covid-19 charges on foreign arrivals

2020 Singapore Grand Prix canned

Climbing out of turbulence

Thailand’s domestic travel bounces back

Tourism revival key to SE Asia’s economic recovery: FATA

CAPA rolls out new tool to project air capacity

New website aims to promote Covid-19 efforts in SE Asia

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