Chiang Mai smog casts pall over businesses

April 3, 2020

Thailand’s northern region has been hit with toxic levels of air pollution due to forest fires on Wednesday, especially in the Chiang Mai province, with some areas being engulfed in air quality levels 12 times above safe levels.

La-Iad Bungsrithong, president of the Thai Hotels Association northern chapter, told TTG Asia: “The fires are very severe this year and burning on Doi Suthep mountain, which is inside the city of Chiang Mai, making it a huge issue.”

Chiang Mai’s air pollution hits dangerous levels; tourist walking in smoke pollution from forest fires in Chiang Mai, Thailand pictured

She added that the poor air quality matters less now that everyone is forced to stay home due to the coronavirus pandemic, but stressed that when it comes to forest fires, the problem extends beyond Chiang Mai to other provinces.

“It doesn’t just affect Chiang Mai’s 25 districts. All our neighbouring provinces are fighting the same issue. As Chiang Mai is nestled in a valley, coupled with the dry air quality this year and fires burning within city limits, it’s created a more extreme hotspot than usual. But the fires have now been brought under control.”

Over the last few days, local news outlets have reported of unchecked fires still burning in the Mae Wong forest in Nakhon Sawan province, which is part of the lower north.

As of April 1, nine northern provinces were said to be experiencing very unsafe smog levels, with Nan bearing the brunt of it at 275 mcg. Chiang Mai’s levels stood at 119mcg-234mg.

Bungsrithong: Air pollution from forest fires affects areas in other Thai provinces beyond Chiang Mai

Kenneth Rimdahl, owner of Chiang Mai-based business Monsoon Tea Company, shared: “(The air quality in Chiang Mai) has gotten worse year by year; with more smoke and (fires burning) for longer periods of time. It affects tourism a lot; every year, we have less customers from Europe, America, Japan and South Korea during the smoke season.”

Rimdahl, who has been trying to solve the root cause of the fires by helping the farmers earn an income by keeping the forests intact instead of using slash-and-burn techniques, added that while Chinese customers have increased every year, forest burning is also getting worse year by year.

On April 1, the governor of Chiang Mai Province announced that travellers entering the province, including foreigners from every transport channel and Thai interprovincial travellers from Bangkok and the southern provinces of Phuket, Yala, Pattani, and Narathiwas would be required to serve a 14-day quarantine.

To date, Chiang Mai has reported 36 cases of Covid-19.

Philippines’ tourism sector urges government aid; plots recovery

By Rosa Ocampo

April 3, 2020

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Philippine tourism players are joining a chorus of travel businesses and bodies worldwide calling on government to suspend taxes and extend further relief to companies embroiled in financial turmoil due to Covid-19.

Philippine Travel Agencies Association (PTAA) president Ritchie Tuano said that as a third of the country enters its third week of lockdown with “grim and uncertain prospects on when the pandemic will be brought under control”, travel agents have proposed to the Department of Tourism (DoT) a list of recommendations for their survival and medium-term recovery.

Tourism businesses in the Philippines cry for government help amid Covid-19; Manila in the Philippines pictured

The list includes “supplemental and wider coverage of government-provided financial grants and assistance from this month (April) up to at least end-2020” to avoid layoffs and business closures in an industry where the majority are SMEs, said Tuano.

PTAA said in a statement that while government remedial measures such as flexible work arrangement and financial assistance through the Covid-19 adjustment measure programme are a big help to employees, they are “certainly not adequate to ensure the survival of travel agents” after the lockdown.

“Business owners are anxious and greatly concerned on how to keep their businesses afloat for the near and immediate term, (having to continue paying for) overhead expenses with little to zero sales coming in,” it added.

In addition, PATA Philippine Chapter chair Bob Zozobrado said that nine associations, including PTAA, that met last month had also requested the DoT for financial assistance for displaced and underemployed workers, which has now been taken care of by the Department of Labor and Employment’s financial assistance programme.

Zozobrado further shared that they also appealed to the DoT for tax holidays or concessions for employers and employees, which the DoT will discuss with the Department of Finance.

In the meantime, Philippine tourism players are hardly resting on their laurels, and are using the downtime to prep for when the market revives.

Bella Calleja, new country manager of Rida International Travel and Tourism, promoting mainly the United Arab Emirates, said: “We are not really expecting to recover this year because even the Expo 2020 in Dubai is cancelled and we are its ticketing agent.

“But our team is focusing on recovery (next year). We have released some packages valid from September onwards and we are hoping that things would improve by next year.”

Calleja added that the agency is turning to online marketing to remain in the public eye and give hope to its agents. “We are doing webinars; our local offices are preparing the presentations and we are inviting agents to join us. We also have plans to partner with NTOs,” she said.

Furthermore, Zozobrado said that tourism players are in the midst of reconnecting with contacts formed through international events or on their travels to “further solidify our market base for when we re-start our marketing efforts” when travel rebounds.

SriLankan Airlines implements pay cut

By Feizal Samath

April 3, 2020

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SriLankan Airlines is effecting a pay cut for all staff as it suspends all flights from April 8 to April 21, in response to extensive travel restrictions imposed by many destinations.

In a statement on Thursday, the national carrier said the mandatory salary reductions will range from 2.5 per cent to 25 per cent for a period of three months.

SriLankan Airlines staff will take a pay cut ranging from 2.5 per cent to 25 per cent

It will also freeze all salary increments scheduled for 2020 and withhold remuneration for its board of directors.

Over the past two weeks, the national carrier has been operating only flights out of Colombo to London, Melbourne and Tokyo for stranded travellers and those in transit in Sri Lanka. These will cease too, leaving only cargo and emergency flights required by the government.

Airline chairman Ashok Pathirage was quoted in a local news website as saying that the company has funds to operate for the next three to four months.

“Our stakeholder (the government) has committed to support us. We have effected cost cutting measures and we are managing with bare minimum costs to pass through this difficult period,” he had said.

PATA unveils crisis resources to support tourism players

By Caroline Boey

April 3, 2020

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PATA’s April 2 launch of its Crisis Resource Center and Tourism Recovery Monitor marks its inclusive strategy to “protect tourism” by extending help to all tourism planners and decision makers and not just its members.

Incoming-chairman Soon-Hwa Wong, who led the Expert Task Force behind the recovery monitor, said PATA is a “trusted source” and industry members do not have to waste time validating the “infodemic”.

PATA’s Crisis Resource Center and Tourism Recovery Monitor will make critical information easily available to tourism players

By getting onboard “experts and partners to share valuable data, content and trends of leading tourism indicators to help us spot green shoots as soon as they start to appear” is necessary for post-crisis recovery”, Wong commented.

Wong stressed: “Timing is everything especially when it relates to the execution of recovery efforts. Moving too early could result in a complete waste of resources, while moving too late could risk being one of the last off the starting block.”

Wong: information will help tourism businesses time their recovery move

On why China is a critical pillar in the recovery monitor, which includes aviation, hospitality, market analysis and insights, and organisations and associations, Wong noted that it is important to recognise it is “the biggest market and will continue to be an important market” even amid concerns that the industry was over-reliant on it.

“When the green shoots show, competition will be at the highest. Everyone at the starting block will be desperate and hungry,” he pointed out, adding that PATA will be encouraging more experts and partners to come onboard to help prepare the industry for recovery.

As for the resource centre, it will house all efforts across the globe by governments that have and are providing aid, relief and support for industry stakeholders. PATA aims to establish a long-term resource centre that will come in handy when help is needed during future crises.

SG travel companies diversify for survival

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April 3, 2020

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The current economic climate may present the least attractive time to launch new businesses, especially in the travel and tourism space, but two tourism companies in Singapore have chosen to dive into new areas of specialisation.

Outbound tour specialist EU Holidays is now developing an inbound arm in response to a rising trend for city tours and staycations, according to director Wong Yew Hoong. He revealed plans to promote inbound tours and hotel stays to locals, relying on short videos highlighting local attractions on social media to reach out to potential customers.

Yeow: “opportune” time to grow a blockchain travel club

The company will also be putting up travel merchandise for sale to support operational costs at its premises.

Also embracing a new business concept is James Yeow, chairman, OMT group of companies. He described this period as “opportune” in growing travel club Blockchain in Travel by OMT – a strategic partnership inked between the group and China blockchain data sharing platform Changyou Travel Alliance.

Members use Changyou Travel Coin – a cryptocurrency – to pay for travel packages, as well as a variety of local and overseas merchant products and services that the group is growing.

With the absence of third-party intermediaries, Yeow shared travellers can expect a reduction of 15 to 25 per cent in travel costs, delivering “a win-win situation for both consumer and business.”

“Blockchain technology will revolutionise the travel industry, as decentralising the booking marketplace allows service providers to connect with customers directly and they (customers) stand to gain from the transparent nature of prices and potential fees, creating a better experience,” Yeow explained.

Accor creates €70m fund to help staff and partners affected by Covid-19

By TTG Asia

April 3, 2020

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Accor_Paris_Head_Office_showing_love_to_the_world — Accor's Paris head office showing love to the world

French hospitality group Accor has unveiled a €70 million (US$76 million) ALL Heartist Fund to assist its most vulnerable staff, partners and medical workers impacted by Covid-19.

This amount has been withdrawn from the Accor’s Board of Directors proposal for a 2019 dividend payment of €280 million, after consultation with the Group’s main shareholders JinJiang International, Qatar Investment Authority, Kingdom Holding Company and Harris Associates.

Accor’s Paris head office showing love to the world

The fund will assist the Group’s 300,000 employees, and will be pledged towards their Covid-19-related hospital expenses, for those who do not have social security or medical insurance; furloughed employees suffering great financial distress; and individual partners facing financial difficulty. In addition, the Group will further deploy its solidarity initiatives to support frontline healthcare professionals and non-profit organisations.

Sébastien Bazin, chairman and CEO of Accor, commented: “Welcoming, protecting and taking care of others is at the very heart of what we do. In light of the urgency and the scale of the situation, we have decided to act in an immediate and meaningful way, in the spirit of our values and commitments. Through this impactful gesture, we wish to express our solidarity and gratitude to all those demonstrating courage and selflessness during this crisis. On behalf of the Board, I would like to thank the Group’s main shareholders. Without them, the ALL Heartist Fund would not have been possible.”

This decision has received unanimous support from the Board members, who collectively decided to reduce their attendance fees by 20 per cent to the benefit the Fund. Additionally, Bazin will forego 25 per cent of its compensation during the crisis. The cash equivalent will also be contributed to the Fund.

Across the Group, mitigation measures that have been implemented since February include travel bans, hiring freezes, reduced schedules and/or furloughing for 75 per cent of global head office teams for 2Q resulting in a minimum €60 million reduction in G&A expenses for 2020; as well as reviewed its recurring investment plan for 2020 resulting in a €60 million reduction in capital expenditures.

The Group is further streamlining all other costs (e.g. sales, marketing, IT), in line with lower systemwide revenues. Accor also shared that it has more than €2.5 billion in cash on hand and an undrawn revolving credit facility of €1.2 billion, thanks to its recent asset-light transformation and cash preservation strategy.

Today, more than half Accor branded hotels worldwide are closed, likely over two-thirds in the coming weeks. One piece of good news is the confirmation of initial recovery of the Chinese hotel market, with mild improvements in occupancy and F&B activity.

“I also want to pay a special tribute to the Accor teams around the world. They are facing the current crisis with admirable courage, dedication and professionalism. As our industry is going through tough times, we have to make tough decisions, but Accor has a strong balance sheet which will enable it to withstand this crisis and emerge with strength during the recovery period. I am confident that Accor will soon rediscover the road to growth,” Bazin added.

Hotel occupancy in Singapore surge with guests in isolation, displaced Malaysian workers

By Pamela Chow

April 3, 2020

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Hotels in Singapore that have been designated as facilities to house citizens on stay-home notice (SHN) are keeping hospitality alive for the new demographic of guests, as well as ramping up precautionary measures and operational procedures to tackle the sudden spike in occupancy.

The designated properties – including names like Pan Pacific Singapore, Parkroyal Collection Pickering, Royal Plaza on Scotts, Six Senses, Shangri-la Rasa Sentosa Resort and Spa, Conrad Centennial Singapore and Village Hotel – have had to pivot from coping with zero demand to a hive of activity after the Singapore government blocked out more than 7,500 rooms for periods upward of one month.

Conrad Centennial Singapore has been designated to house returning Singaporeans from the US and the UK

“Our team members are provided personal protective equipment – including an apron, surgical mask and gloves – when they deliver, collect and remove food, laundry and refuse. In the 14-day period that a guest is serving his or her SHN, our team members will not be able to provide housekeeping services. (However,) we will provide a regular change of fresh linen, as well as meals for guests,” shared Mike Williamson, general manager, Conrad Centennial Singapore, which has been officially designated to house returning Singaporeans from the US and the UK from March 27, 2020.

Williamson added: “During this period, the hotel will be closed to other visitors and guests, and recreational facilities including the pool and fitness centre will be temporarily suspended. Nevertheless, our restaurants remain open to the public.”

Similarly blocked out are Village Hotel Albert Court, Village Hotel Sentosa and The Elizabeth Hotel, operated by Far East Hospitality (FEH). Under the SHN directive, apart from their rooms, each property’s F&B tenants have also been closed to public and will only provide meals to SHN guests.

To compensate the hotels and cover operation costs, STB and the relevant government agencies “have worked out a reasonable per diem for hospitality operators”, shared Arthur Kiong, CEO of FEH.

The Singapore-based hospitality group has gone the extra mile to cater to the needs of this unique guest profile. For instance, it has designated a separate queue system for elderly and mobility-impaired guests, placed staff on standby to assist with purchasing and delivering any requested necessities, as well as deployed an “e-Buddy” system where crew are trained to check in on all guests daily via phone.

“We are also planning a series of engagement activities with our SHN guests to keep morale up during this time,” said Kiong.

Other hotels that have not been earmarked as designated facilities have also extended their rooms to house affected communities, such as the workforce displaced by Malaysia’s lockdown and other affected foreign workers.

On Tuesday, RedDoorz announced that as part of its Red Heroes initiative, it is working closely with Singapore’s Ministry of Manpower to provide accommodations for foreign workers serving their SHN and affected Malaysian employees. It is currently exploring alternative support, including the supply of rooms for frontline healthcare professionals.

“For those serving out their SHN, we’ve introduced health and well-being kits in select hotels, which includes energy bars, essential vitamins and personal hand sanitisers,” said a RedDoorz spokesperson.

In another instance, Crowne Plaza Changi Airport is offering a 14-day SHN room package at S$130 (US$90) nett per night for the Deluxe King room. The package includes an in-room exercise mat, 50 per cent off the in-room dining menu, as well as 50 per cent off selected laundry services.

137 Pillars names Anne Arrowsmith corporate GM

By TTG Asia

April 3, 2020

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Anne Arrowsmith has been promoted to corporate general manager for 137 Pillars Hotels & Resorts, which owns and manages two luxury properties in Thailand.

In her new role, Arrowsmith will oversee all aspects of operations for both 137 Pillars Suites & Residences Bangkok and 137 Pillars House, reporting directly to the owners and working with them on several potential new properties that are currently under development.

The British national joined the group in 2016 as general manager at the luxury all-suite 137 Pillars House Chiang Mai, which opened in March 2012 and was refurbished in 2019.

The big lure of little lodges

By Marissa Carruthers

April 3, 2020

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As travellers become more aware of their footprint and the impact they have on locals, hopes are being pinned on Myanmar’s mounting eco-lodges piquing the interest of conscientious tourists seeking to truly immerse themselves in local life.

Myanmar is home to diverse landscapes, rich culture – it has 135 ethnic tribes – and a series of off-the-beaten-track spots that tick all the boxes for modern travellers. Community- and eco-tourism is a niche steadily being developed across the country, pushed by the rise in lodges and boutique resorts built and operated sustainably while working with struggling rural communities.

Charmaine Goddard, general manager at Wah Phyu Villa, which rose in the coastal village of Magyizin, Ayeyarwady in February, said: “With global warming at the forefront now more than ever, people are more aware of what they do when they go on holiday; they want to know they’ve benefited local people.”

The eco-lodge is among the latest to open amid a strengthening movement of sustainable and community-driven tourism across Myanmar.

Goddard added: “We get a lot of private bookings and people ask what we do with our waste and how we work with villagers. It’s huge, and becoming a very big part of tourism.”

In 2011, the newly-formed Ministry of Hotels and Tourism set about launching a series of community-driven tourism products across the country under its Community-Based Tourism (CBT) initiative.

Several have since sprung up across Myanmar with the aim of ensuring communities benefit from the predicted rise in visitors while driving tourists to undiscovered areas.

As well, recent years have seen tourism entrepreneurs build sustainable lodges that work directly with neighbouring villages to share the tourism dollar and help improve life.

Swe Yi, co-owner of Loikaw Lodge by the Lake in Kayah State, said: “CBT is probably the most sustainable tourism approach in Myanmar as it can significantly contribute to poverty reduction and paves the way for a sustainable, economic tourism model.”

Yi and her husband Jens opened the 12-room lodge in October 2016 and learned about the newly-developed CBT initiatives of the Kayan, Kayah and Kayaw tribes, funded and led by the International Trade Centre.

Under the initiative, a series of programmes were developed to offer visitors culturally-rich experiences in villages across the state. Its success saw similar initiatives roll out in other areas of the country, including Kachin and Shan states, Magway Division in Myaing, and Chin State.

Yi, who continues to send clients to villages, added: “It’s important the best practices of these programmes is shared to accelerate the learning for communities who want to start their own programmes. At the same time, it’s important the government, private industry and respective communities agree on a framework that helps CBT develop in a sustainable manner.”

Kyaw Swar opened A Little Eco Lodge in his home area of Inle Lake in late-2016 with the aim of using tourism as a tool to elevate the lives of the impoverished communities he grew up among. He has since landed two awards from the Product and Package Innovation Competition run by UK Aid for his innovative community-led projects for ikat weaving, and a treasure hunt-style cookery class in a neighbouring village. He recently added four rooms, bringing the total to 10.

He said: “Travellers want to be more responsible and think about how and where the money they spend is used. This is a great opportunity for Myanmar, especially small-scale entrepreneurs and locals. They can’t compete with larger global and local businesses that have resources, finance, knowledge and technology. By developing CBT, communities can earn directly from clients.”

Edwin Briels, managing director of Khiri Travel Myanmar and co-founder of Lalay Lodge, which opened this February in the remote fishing village of Maung Shwe Lay in Ngapali as a sustainable lodge that works hand-in-hand with villagers, said this movement is opening up new opportunities by appealing to the longhaul markets of Australia, Europe and the US.

He also noted an increase in interest from regional travellers seeking authentic, immersive experiences. Said Briels: “We are seeing a lot more regional travellers wanting to go back to an Asian village atmosphere; almost like stepping back to the old days of Asia.”

The sustainable lodge trend is also helping develop new destinations and encourage visitors to veer away from Myanmar’s main tourism spots. As arrivals grow, it is hoped this will alleviate the issue of over-crowding that other regional tourism stars have struggled with.

Said Goddard: “Because Myanmar’s tourism industry is behind other South-east Asian countries, it can pick up on the mistakes of others and learn from them. The government doesn’t want to see places over-run, so it encourages sensitive development in emerging destinations.”

But to truly tap into its tourism potential, there has to be closer work between the government and private sector to push and promote such initiatives. Noted Yi: “The big challenge is to market these lodges and experiences to international markets, which can only be done with government and private industry support.”

Pushing for change

By Karen Yue

April 3, 2020

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CrescentRating has been sharing insights on the Muslim travel market for the last 11 years. What would be the organisation’s proudest milestones?
We have contributed a few things to the tourism and hospitality industry over the years, specifically in improving the understanding of halal travel in the marketplace. It is very satisfying to see that in the last few years, the marketplace has started to embrace Muslim travellers.

One of the achievements we’ve been very happy with is our partnership with MasterCard (to jointly produce the annual Mastercard-CrescentRating Global Muslim Travel Index), which started in 2015.

CrescentRating did not start off wanting to do research; we just wanted to rate Muslim-friendly hotels. But we realised that without real data and intelligence, it was hard to convince people with our words.

Fast forward today, we’re the leading voice on halal travel intelligence.

We have just released our Mastercard-CrescentRating Halal Travel Frontier 2020 report (in January).

In a couple of weeks, we will release another report that will consolidate all the tools we have developed, and make them available to the trade.

Has CrescentRating been able to resolve the common pain points for Muslim travellers when they visit non-Organization of Islamic Cooperation (OIC) destinations?
The pain points for Muslim travellers have remained largely the same, especially when it comes to travelling in a non-OIC.

There is still a lack of halal restaurants in these destinations; in hotels, there is either a lack of halal food or there are very limited halal food options on the menu.

On the bright side, however, the situation has improved a lot over recent years, particularly in Taiwan, Japan, South Korea and Hong Kong.

There are more than 100 halal restaurants in Taiwan today, whereas there were probably only a handful five or more years ago.

While the number of halal restaurants have gone up in some non-OIC destinations, there remains the challenge of credibility. There are two credibility issues Muslim travellers face with halal restaurant claims – one, the claim is incorrect and made due to ignorance, as the restaurant operator doesn’t truly understand what being halal means and requires; two, the claim is a deliberate falsehood.

Can CrescentRating help to tackle this challenge?
Yes, we can. Our solution is to focus on education. We need to educate restaurants – in fact, as many stakeholders in the tourism and hospitality industry as possible – what halal means through our CR Academy.

Our second solution is to encourage restaurant operators to get external validation by approaching their local halal authority, or use our rating system which we have employed in destinations such as Taiwan.

Beyond restaurants, tourism and hospitality industry stakeholders can reference our faith-based services needs model, which we upgraded last year.

There are four areas within the Need to Have advisory (Halal Food Service, Salaath Prayer Facilities, Water Friendly Washrooms, and No Islamophobia), and three of them are relevant to hotels.

You cited Taiwan, Japan, South Korea and Hong Kong as examples of destinations that have done well in welcoming Muslim travellers today. It is interesting that they are all in North Asia. Are there no shining examples in South-east Asia, where there are sizeable local Muslim communities and should therefore be naturally welcoming?
It is a misconception that destinations with a Muslim population are ready for halal tourism.

Take Jordon as an example. It is a Muslim-majority country (and an OIC member) but its tourism industry was established for the last 20 to 30 years to serve travellers from Europe and Japan – big source markets at that time – and not Muslim travellers.

Understanding what a Muslim does does not translate into knowing how to treat and welcome Muslim travellers.

I like to think that because Taiwan and Japan, for instance, have such little understanding of Muslims at the beginning that they tried their very best to study halal needs and be as hospitable as possible.

How does Singapore fare? Muslims make up the third largest religious group in the population.
CrescentRating has a few projects going with the Singapore Tourism Board (STB). One of them coming up soon is a 44-page guide book that details halal dining offerings in Singapore, hidden cultural activities and local Malay entrepreneurs and business owners that travellers can discover.

I also got to speak at ASEAN Tourism Forum this year in Brunei about halal travel trends, at the invitation of STB.

I’ve told STB that Singapore has the potential to be a more welcoming destination for Muslim travellers, and one of the things it can do is to leverage Singapore’s Muslim family assets to attract this segment of travellers.

Clearly, CrescentRating has done a lot to improve the world for Muslim travellers and guide destinations towards this lucrative travel sector. But I’m sure you have more up your sleeves.
Yes, well, we are looking at doing a few more things (laughs).

First, we will continue to produce more and more data on halal tourism and make them public to improve awareness and deepen knowledge.

We are also hoping to produce the CrescentRating Playbook – that’s the working title – and have it contain as many insights as possible to help the tourism and hospitality industry find their way around halal tourism.

Second on our list is to work with even more destinations to help them better cater to Muslim travellers. We have projects with Uzbekistan, which is an up-and-coming destination; South Africa, where we have a partnership going for some time now; and Hong Kong, where we have just started but need to take things slow due to the (Covid-19) outbreak.

Thirdly, we are improving our CR Academy. We have an online programme on now for hotels and restaurants, but we hope to expand it to serve more sectors of the industry.

Chiang Mai smog casts pall over businesses

Philippines’ tourism sector urges government aid; plots recovery

SriLankan Airlines implements pay cut

PATA unveils crisis resources to support tourism players

SG travel companies diversify for survival

Accor creates €70m fund to help staff and partners affected by Covid-19

Hotel occupancy in Singapore surge with guests in isolation, displaced Malaysian workers

137 Pillars names Anne Arrowsmith corporate GM

The big lure of little lodges

Pushing for change

Tried and Tested

Knai Bang Chatt by Kep West

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