Sun Group leverages Covid-19 lull to focus on new developments

March 27, 2020

Vietnam’s real estate developer Sun Group has temporarily closed some of its amusement parks and entertainment facilities in the country, choosing to use the lull period to ready new products and services that will be rolled out when the pandemic is over.

Meanwhile, all hotels operating under Sun Hospitality Group system (under Sun Group) and each of the Sun World complexes have partnered Vietnam Airlines to create a host of competitively-priced packages aimed for post-Covid-19 promotion.

Phase one of Yoko Onsen in Quang Hanh of Quang Ninh province will open by the end of this year

Sun Group will also launch a number of tourism projects and products from now until end-2020. Specifically, phase one of the luxurious Yoko Onsen, a hot spring resort in Quang Hanh, Cam Pha, Quang Ninh, will officially come into operation.

Before the end of the year, Premier Village Halong Bay Resort, located right at the heart of Ha Long city, will officially open after a soft launch.

Over in Hai Phong, a three-wire cable car route on Cat Hai Island is slated for operations in the second quarter.

Meanwhile, in Danang, Sun World Danang Wonders is being transformed into a nightlife destination, while Sun World Ba Na Hills will see the opening of a new cable car route, alongside the Ravenstone Castle, where ancient European fairs and festivals will be recreated.

It is expected that in July and August this year, Sun World Fansipan Legend in Sapa will bring the show Dancing on the Clouds back due to popular demand.

Sun Group chairman Dang Minh Truong said: “With all of the aforementioned plans in the pipeline for our enterprise, and together with the timely and practical support policies of the Vietnamese government and ministries, we believe that Sun Group will soon overcome this difficult period and make a significant contribution to tourism in Vietnam and help our country revive and grow in the post-Covid-19 period.”

AirAsia freezes bulk of its services

By TTG Asia

March 27, 2020

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AirAsia Group will temporarily ‘hibernate’ most of its 255-strong fleet across the network in the wake of the ongoing Covid-19 pandemic.

The decision also applies to its longhaul arm, AirAsia X and affected guests have been notified by email and SMS.

AirAsia temporarily ‘hibernates’ most of its 255-strong fleet across the network

For AirAsia Malaysia, the temporary suspension of all international and domestic flights are from March 28 to April 21.

For AirAsia Philippines and AirAsia Thailand, the affected period will be from March 20 to April 14 and March 22 to April 25 respectively.

AirAsia India is freezing all flights from March 25 for 21 days in adherance to the government’s suspension of all domestic flights.

There will also be a significant reduction in international flight frequencies for AirAsia Indonesia while domestic operations continue at reduced frequencies.

Affected passengers have the option of converting their flight booking into a credit account that is valid for future redemption within 365 days or moving their flights for an unlimited number of times without any charges to another date prior to October 31, 2020.

AirAsia said in a statement: “We believe this temporary fleet hibernation is the right thing to do to ensure the well-being of our guests and employees, which will remain as the top priority of our business during this challenging time.”

Oyo Malaysia offers healthcare practitioners free stay

By TTG Asia

March 27, 2020

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Texas-headquartered Oyo Hotels and Homes has volunteered three of its Malaysian partner properties to house healthcare practitioners for free, from March 25 to April 14, 2020.

The three hotels – Oyo 188 YP Wangsa Hotel in Kuala Lumpur, Oyo 882 Hotel Sri Muda Corner in Shah Alam, Selangor, as well as Oyo 89676 Hotel 22 in Seremban – are located within 5km of three hospitals that are battling against Covid-19.

(From left) Oyo 188 YP Wangsa Hotel in Kuala Lumpur and Oyo 882 Hotel Sri Muda Corner in Shah Alam, Selangor are offered as free stays for healthcare workers

Hospital Kuala Lumpur, Hospital Shah Alam and Hospital Tuanku Jaafar have come to the attention of Oyo due to the “large number of cases being treated” there, said the accommodation group.

Tan Ming Luk, country head-Singapore and Malaysia, Oyo Hotels and Homes, hope Oyo’s contribution will help “alleviate some of (the healthcare workers’) burden and ensure that they have ready access to clean and affordable living spaces” for rest.

Oyo believes that the proximity of their partner properties to the hospitals will save the healthcare workers from a long commute back home.

Meanwhile, Oyo will continue to take in bookings and check-ins from foreign guests, government employees and anyone employed in essential services as mandated by the Movement Control Order.

MATTA chief outlines urgent help list to Malaysian government

By S Puvaneswary

March 26, 2020

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Ahead of the federal government’s announcement of a comprehensive economic stimulus package on March 27, the Malaysian Association of Tour and Travel Agents (MATTA) has called on the government to allow the private sector to stop mandatory payments to government agencies and support the wage burden for the next six months to help businesses struggling for survival.

The mandatory payments include contributions to the Employees Provident Fund (EPF), the Human Resources Development Fund (HRDF) and other levies such as Social Security Organization (SOCSO), Employment Insurance System (EIS) as well as corporate and individual taxes for 2019 assessment.

MATTA expects two in five people or 40 per cent of Malaysia’s tourism workforce to lose their job without substantial government support

In terms of wage support, MATTA has asked for assistance on 60 per cent of employee wages up to a maximum of RM4,000 (US$923) per employee for the next six months from April, which would help companies avoid having to layoff staff.

MATTA president, Tan Kok Liang, said in a press statement: “If such assistance and stimulus are not forthcoming very soon, liquidity issues will force many existing small and mid-sized tourism companies and facilities to cease operations, resulting in a large number of workers losing their jobs.

“The tourism industry in Malaysia employs more than 3.5 million people, or 23.5 per cent of our nation’s total employment, representing nearly a quarter of all jobs in Malaysia. It is expected that two in five people or 40 per cent of the people would lose jobs. Consequently, this will create a ripple effect to other sectors.”

He said EPF contributions by both employers and employees should be suspended from March until end of this year to allow employers to better manage their cash flow and for workers have more cash for living expenses.

For the month of March, MATTA estimated a 90 per cent drop in revenue and expected revenue in April and May to be almost non-existent.

Tan cited countries such as the UK and Denmark that have already started implementing employee retention initiatives and offering to pay up to 80 per cent of wages.

He said: “Other countries such as South Korea, Ireland and Singapore have also implemented similar strategies.”

He stressed: “The key point is to protect jobs! Businesses cannot be expected to keep paying employees when there is little or no income – it’s either close shop or lose jobs. Neither is desirable and a win-win solution would be for the government to help both employer and employee by sharing the burden of paying wages.”

He also called on financial institutions to play their part by expediting special loans while welcoming the move by the Federal Bank to provide a moratorium for the next six months.

He stressed that banks should also allow a waiver to be made on the interest that is accrued and compounded on conventional loans during the moratorium period.

He said: “How can SMEs survive with the accumulated interest due and compounded and payable upon the expiry of the moratorium period? Compounding overdue interest is a double whammy for suffering businesses during this period.”

Meanwhile, the Malaysian Association of Convention & Exhibition Organisers & Suppliers (MACEOS) said their wish list that had recently been presented to the Finance Ministry and the Ministry of Tourism, Arts and Culture included extending the six per cent services tax exemption to the convention and exhibition centres, and waiving company and personal income tax for a period of six months in light of the challenging period.

MACEOS would also like cash flow support for PEOs in the form of venue subsidies and incentives to small and medium-sized enterprises to bid for more international business events to be held in Malaysia.

Resilience Budget: SG gov’t allots US$305 million to aid tourism sector

By TTG Asia

March 26, 2020

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The Singapore government will set aside a total of S$440 million (US$305 million) to lift the tourism industry which has been the hardest-hit by the coronavirus pandemic, as part of a larger S$48 billion Resilience Budget to help mitigate the virus’ impact on businesses and individuals.

The stimulus package was announced by deputy prime minister and minister for finance, Heng Swee Keat, this afternoon in Parliament, amid what he terms as “likely the worst economic contraction since independence”.

The government has set aside S$440 million (US$305 million) to help the tourism industry weather the storm

The Parliament session was live-streamed on Channel NewsAsia.

Part of the sum will go towards a S$350 million Enhanced Aviation Support Package, which will provide rebates for airline parking and landing charges, as well as rental relief for cargo agents, ground handlers and airlines.

The government is also prepared to separately provide more “direct support” to Singapore Airlines Group, which Heng said contributes to more than 50 per cent of passenger traffic and cargo tonnage through Changi Airport in 2019.

The remaining S$90 million will be parked to assist in the tourism sector’s rebound at a suitable time in the future, said Heng.

Besides the S$440 million targeted specifically at providing relief for the tourism sector, the industry will also benefit from other measures, such as property tax waivers as well as an Enhanced Jobs Support Scheme.

On the property tax front, hotels, serviced residences, restaurants, shops and attractions will receive full property tax waiver for the rest of 2020. This means more enhanced relief for industry players, compared to the earlier announced 15 to 30 per cent property tax rebates.

Additionally, the government will co-fund 75 per cent of wages for firms in the aviation and tourism sector and 50 per cent of wages for firms in the F&B sector, while other industries will receive 25 per cent co-funding. All this marks a significant increase from the earlier eight per cent co-funding.

Heng shared that the monthly qualifying wage ceiling will also be raised from S$3,600 to S$4,600, which means the government will co-fund a percentage of up to the first S$4,600 of each employee’s salary.

Initially planned for just one quarter, the Enhanced Jobs Support Scheme will now be extended to end-2020. Employers are set to receive payouts in May, July and October.

For the corporate industry, Heng expressed that the government recognises that it is not “right” for business event organisers to have to forfeit their venue deposits due to this black swan event. He shared that the Ministry of Law will announce initiatives to assist such companies at the next Parliament.

Alongside the S$6.4 billion Unity Budget announced last month, the Singapore government has set aside a total of S$55 billion to help local businesses and individuals tide through the pandemic.

Heng explained the government’s focus on the tourism sector: a compromise in the industry will have a ripple effect on other sectors that depend upon it.

“The sharp drop in international visitors has impacted the whole tourism eco-sector, from our airports and airlines to the hotels and attractions and their tenants to travel agents and bus companies,” he said.

Heng cautions of “a broader range of safe distancing measures” ahead.

Tourism leaders spot signs of recovery

By Prudence Lui

March 26, 2020

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Domestic business has become the bearer of hope for three tourism companies in Asia, with corporate group stays and staycations being the biggest drivers of re-emerging demand.

Speaking at an edition of WiT Virtual webinar series today, which tackled the topic of possible recovery in North Asia, Jennifer Cronin, president of Wharf Hotels, Hong Kong said her sales offices in Beijing and Shanghai were starting to receive business event enquiries for April to June while various hotels across China were beginning to see a pick up in business.

Beijing hotels are starting to get some business event enquiries

While Cronin said the occupancy rate is nowhere near what it should be at this time of the year, she acknowledged that a 20 per cent occupancy “is certainly a lot better than” a single-digit performance.

“We are definitely seeing those green shoots starting to appear in China,” she remarked.

Cronin is keeping her eye on China’s domestic travel performance this May Day holiday, and shared that at present travel vouchers for 2H2020 “are appearing to be very popular”.

Beyond China, recovery sightings are still vague.

Over in South Korea, where the government has suspended all festivals and discouraged outdoor gatherings, Min Yoon, CEO of Tidesquare travel services specialist, said most of the domestic hotel bookings he gets now are for after May.

KK Day Taiwan, co-founder & COO, Weichun Liu, opined that the signs may only be clearer in two months’ time.

“Despite this, we are seeing domestic travel demand from almost all our markets except those under lockdown,” said Liu.

The online tour and activity platform has seen an increase in bookings for outdoor activities such as water sports in Taiwan and Japan, while camping is hotting up in Singapore and Taiwan.

“All camping sites are fully booked up until June in Taiwan,” Liu revealed.

He observed that demand patterns in Taiwan are typically mirrored in Hong Kong, so “whatever we are developing to meet demands in Taiwan right now can sell into Hong Kong later on”.

Liu reasoned that the domestic market is helping to drive recovery because with borders still closed in many overseas destinations, entertainment can only be found on home ground.

“Clients are getting bored at home, and are starting to search what they are going to do. It’s a very good time for marketing campaigns, and we are diversifying our products and services to offer such things as food delivery promotions done in partnership with a couple of delivery firms,” he added.

Rebound in Hong Kong is expected to be slow, as her borders remain closed and compulsory quarantines are ordered for arriving travellers. However, Cronin said Wharf Hotels is picking up staycation demand from people hungry for a weekend treat amid the gloom and from families wanting to stay away from other members returning from overseas.

She shared that her Hong Kong hotel performance is also “not completely single-digit”.

Meanwhile, the three speakers agree that rebound for Asia-Pacific will come after China is free from outbreaks.

OUE to rebrand Mandarin Orchard into largest Hilton hotel in APAC

By TTG Asia

March 26, 2020

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Property group OUE and OUE Commercial REIT (OUE C-Reit) will spend S$90 million (US$62 million) to rebrand Mandarin Orchard Singapore to Hilton Singapore Orchard, following an agreement with Conrad International Management Services (Singapore), said OUE in a press release.

The revamped property will be Hilton’s flagship hotel in Singapore, and its largest in Asia-Pacific.

Mandarin Orchard Singapore will be rebranded into Hilton Singapore Orchard

The hotel’s rebranding will see the addition of new meeting facilities and F&B offerings to cater to the growing demand for regional and global corporate events.

The planned refurbishment will be conducted in phases and will commence in 2Q2020 to capitalise on the current challenges facing the hospitality industry due to Covid-19. It is scheduled for completion by end-2021.

Until then, Mandarin Orchard Singapore will continue to operate under the management of Meritus Hotels & Resorts, the hotel management company under the hospitality division of OUE.

Upon its relaunch in 2022, the hotel will feature 1,080 rooms, five F&B venues including an all-day dining restaurant, as well as meeting and function spaces spanning a total of 3,765m2, including three ballrooms.

Tan Shu Lin, CEO of OUE C-Reit’s manager, said that the current challenges faced by the Singapore hospitality sector due to the global coronavirus pandemic “present a timely opportunity for us to carry out the extensive renovations, with the rebranded hotel expected to be ready in time to take advantage of the sector’s anticipated recovery”.

Mandarin Orchard Singapore is part of OUE C-Reit’s portfolio, under OUE Hospitality Sub-Trust. OUE is the master lessee of the property.

A season of silence for Earth Hour 2020

By TTG Asia

March 26, 2020

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Australia

Australia’s lockdown restrictions have resulted in many Earth Hour events being cancelled to prioritise community safety. However, landmarks around the country including the Sydney Opera House, Sydney Harbour Bridge, Luna Park in Melbourne, Melbourne Star Observation Wheel, The Wheel of Brisbane and The Bell Tower in Perth will still be switching off their lights.

Meanwhile, local organisers are going digital with a livestream concert for Saturday, featuring Australian artists, including live crosses to lights out from around the country.

Dermot O’Gorman, CEO of WWF-Australia, said: “(Connecting) as a community and looking for positive ways we can contribute is more important than ever as the world responds to the coronavirus crisis.”

Earth Hour is a movement by the World Wide Fund for Nature (WWF).

“The act of switching off our lights for Earth Hour has always been a show of solidarity for stronger action on climate change and a chance for millions of people worldwide to collectively raise their voice for nature. This year will be dramatically different as we all strive to control the spread of Covid-19,” he added. – Adelaine Ng

Cambodia

Earth Hour celebrations in Cambodia are being kept to a minimum as the tourism industry has turned its attention on dealing with the coronavirus crisis.

Charles-Henri Chevet, area general manager of Accor Cambodia and Phokeethra hotels, said: “Due to the current situation, we will not carry out any activities this year, especially to prevent any gathering.”

As activity across the portfolio has already slowed, energy-saving measures are in place.

Khiri Cambodia will be marking the occasion on Friday with all electricity turned off between 09.00 and 10.00, said general manager Vidya Lo.

Asian Trails Cambodia has been encouraging staff to reduce electricity usage this week. Staff and partners are encouraged to switch off lights for an hour on Saturday from 20.30.

Himawari Hotel Apartments in Phnom Penh will also be switching off all non-essential lights for two hours on Saturday, from 20.30. – Marissa Carruthers

Indonesia

With reduced occupancies and advisories against gatherings of people, hotels in Indonesia are cutting back on their Earth Hour programmes.

The Sheraton Surabaya and Four Points Surabaya complex will simply be turning off lights in public spaces during Earth Hour on March 28.

Vanjou Hannes, spokesperson of éL Hotel Royale Bandung, remarked: “We have no programmes for Earth Hour this year. Even without having it, the hotel has been switching (unnecessary) lights off to conserve energy since occupancy is low.”

Artotel Group, however, will press on with its annual 60+60 Let Thomas Rest Longer programme, albeit in a toned down manner.

Andri Meilani Kusim, spokesperson of Artotel Group, said: “We usually have a 120-minute light down with Live Glow in the Dark painting exhibition and F&B promotions in our properties. This year, we will take our Earth Hour campaign online.”

The hotel group has created a video and blog on in its website, where CEO Erastus Radjimin will invite viewers to participate in Earth Hour activities.

This is in line with the official Earth Hour 2020 programmes, which will be held digitally in view of the health crisis. – Mimi Hudoyo

Japan

Earth Hour activities across Japan have either been scaled back or cancelled to help halt the spread of Covid-19.

In metropolitan areas, efforts are focused on turning off attraction lights rather than holding events, which were common in past years. Tokyo Bay, which offers one of the city’s most popular night views, will go dark as the Tokyo Metropolitan Expressway down the lights of its three main bridges – Rainbow, Yokohama Bay and Tsurumi Tsubasa.

Yokohama Minato Mirai 21, the sightseeing hub around Yokohama harbour, will also turn off its lights.

Tokyo’s most iconic landmark and the world’s tallest tower, SkyTree, is to go dark, both inside and out. During Earth Hour, visitors can explore the attraction, but the observatory will remain closed.

A spokesperson for WWF Japan, the organisation leading Earth Hour in Japan, told TTG Asia that a ceremony and pop-up-shop at SkyTree have since been abandoned due to infection concerns.

Hotels in Japan, meanwhile, are offering special activities for guests. In Hokkaido, Rusutsu Resort will participate by putting out all lights at the entrances and in lobbies and restaurants, and replacing them with candles. Art with an Earth theme will be displayed in the lobby. Guests who dim their room lights can enjoy a choice of two free blue and green cocktails made specially for the event. Guests can also write wishes in candle-lit lanterns and launch them into the night sky. – Kathryn Wortley

Singapore

While navigating the Singapore government’s latest restrictions on gatherings and events, hotels and attractions in the country have chosen to participate in Earth Hour in various meaningful ways that are in line with the campaign’s call for widespread lights out as a show of support for the planet.

Grand Park City Hall will dim the lights in its hotel lobby and restaurant Tablescape, and tea light candles will be lit on the dining tables instead. The restaurant will also offer complimentary mocktails to all diners during this hour.

Singapore Marriott Tang Plaza Hotel will dim or completely switch off selected decorative and non-essential lights on the hotel’s façade, at Crossroads and in Marriott Café. The temperature of air-conditioning units in common areas will be increased by one degree Celsius, and a new Earth Hour-inspired cocktail, Orchard Hour, will be sold at Crossroads from 11.00 to 00.00 the next day.

Popular attraction Gardens by the Bay will also be showing its support for Earth Hour by turning off the lights on its Supertrees and other non-essential parts of the park.

Elsewhere, National Gallery Singapore will turn off its façade lights and dim selected indoor lights to 25 per cent. – Pamela Chow

Earth Hour is taking its activities online this year, with live streams planned for various regions including Asia and Australia.

Wuhan to lift travel restrictions on April 8

By TTG Asia

March 26, 2020

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Chinese authorities on Wednesday lifted the two-month lockdown of China’s central province of Hubei, signalling a return to some sense of normalcy and a show of confidence that the virus outbreak which crippled the country’s economy has been brought under control.

However, the city of Wuhan, where the virus was first detected in December, will remain locked down until midnight on April 8.

Wuhan will lift outbound travel restrictions on April 8; cleaner clad in protective suit disinfecting a bus in Wuhan

The easing of the restrictions came as the number of domestic cases of the global coronavirus pandemic subside. On Monday, regions outside Wuhan in Hubei reported no new infections for 19 straight days, while Wuhan saw zero new cases for five consecutive days from March 18 to 22.

The provincial government said on Tuesday that it would restore outbound traffic and lift the control order on residents in the region, excluding the city of Wuhan, which would allow people with a clean bill of health to freely enter and leave the Hubei province.

Schools and colleges within the province will remain closed, but employees will be allowed to return to work, with companies urged to maintain policies that will prevent a rebound of virus infections.

“It is necessary to actively and orderly promote the resumption of work and production of enterprises and institutions, strive to minimise the losses caused by the epidemic, and strive to enter the normal economic and social development of the province as soon as possible,” said an official government announcement that was originally in Mandarin.

Wuhan and some neighbouring cities were put under strict lockdown on January 23, with the government suspending all trains and flights, and sealing off highway entrances and exits.

As of Monday, the number of infections in the city totalled more than 50,000, making it the hardest-hit city in mainland China.

Malaysian hoteliers brace for further fallout from lockdown extension

By S Puvaneswary

March 26, 2020

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Malaysia has extended its existing 14-day nationwide movement control order (MCO) from March 31 to April 14, as the number of coronavirus infections have yet to be reduced.

The two-week extension, which was announced by Malaysia’s prime minister Muhyiddin Yassin yesterday (March 25), may be a bitter pill to swallow for the travel trade but a necessary measure to stem the spread of Covid-19.

Malaysia extends national lockdown by two weeks

As of March 25, 22.00, the number of Covid-19 cases in Malaysia rose by 172 to hit 1,796, with a death toll of 20.

KL Tan, president of the Malaysian Association of Tour and Travel Agents (MATTA), opined that the MCO’s extension will not have much further impact on the travel and tourism industry, which is already severely battered.

He shared: “There is little business for tourism players, particularly those in inbound, as tourists from traditional markets may not be able to travel as their countries are under lockdown or airlines have cancelled flights.

“Our main focus should be on battling the outbreak. It is better to get rid of the coronavirus totally than lifting the MCO prematurely and reintroducing the virus.”

Commenting on the impact of the MCO’s extension, Malaysian Association of Hotels (MAH) CEO, Yap Lip Seng, shared: “Our estimates, based on historical data, showed at least a RM560 million (US$127.3 million) loss in (hotel) business just for the first 14 days of MCO (from March 18 to 31).

“An extension (of the MCO) for another 14 days would mean over RM1 billion in losses for the industry. According to our survey, the MCO – on top of losses caused by the outbreak of Covid-19 in general – are forcing employers to impose pay cuts and asking staff to take unpaid leave, and some are even laying off employees.

“As of now, approximately nine per cent of employees in the hotel industry are taking a pay cut, while 17 per cent have been put on unpaid leave, and four per cent laid off.”

Frangipani Langkawi Resort & Spa will be offering full refunds to guests who have booked their stays from April 1 to 14.

To further cut costs, managing director Anthony Wong said senior staff may be asked to take two days off every week during the MCO period.

Meanwhile, MAH has proposed a series of financial initiatives to the government, which entails looking beyond moratorium of loans as it does nothing to lessen the burden on businesses and individuals, and they may even end up with higher debts due to accumulated and extended interests.

Yap stressed: “We need the government to instruct banks to waive interests temporarily to help sustain businesses.”

Among the proposed initiatives are for an additional economic stimulus package which includes increasing electricity discounts from 15 per cent to 30 per cent from April 1 to September 30; a minimum reduction of five per cent of employers’ contribution to the Employment Provident Fund up to December 2020; as well as a RM800 monthly subsidy for employees with a monthly wage of RM4,000 or less up to December 2020.

A new and comprehensive economic stimulus package, which has been described as a “people-caring” one, will be tabled tomorrow.

Sun Group leverages Covid-19 lull to focus on new developments

AirAsia freezes bulk of its services

Oyo Malaysia offers healthcare practitioners free stay

MATTA chief outlines urgent help list to Malaysian government

Resilience Budget: SG gov’t allots US$305 million to aid tourism sector

Tourism leaders spot signs of recovery

OUE to rebrand Mandarin Orchard into largest Hilton hotel in APAC

A season of silence for Earth Hour 2020

Wuhan to lift travel restrictions on April 8

Malaysian hoteliers brace for further fallout from lockdown extension

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