The number of international tourist arrivals will plummet by 20-30 per cent in 2020 when compared with 2019 figures, due to the ongoing coronavirus pandemic, projected the World Tourism Organization (UNWTO).
The new projection, which takes into account the introduction of major travel restrictions worldwide, is a sharp revision of an earlier forecast in early March of a one to three per cent decline.
UNWTO projects that the number of international tourist arrivals will plummet by 20-30 per cent in 2020; travellers wearing masks walking through Suvarnabhumi Airport pictured
The projected drop in arrivals will lead to an estimated loss in international tourism receipts of between US$300-450 billion, almost one-third of the US$1.5 trillion generated in 2019, said the UNWTO in a statement.
Based on past market trends, this translates to a loss of between five and seven years’ worth of growth due to Covid-19.
In comparison, UNWTO noted that in 2009, on the back of the global economic crisis, international tourist arrivals dipped by four per cent, while the SARS outbreak led to a decline of just 0.4 per cent in 2003.
UNWTO secretary-general Zurab Pololikashvili said: “Tourism is among the hardest hit of all economic sectors. However, tourism is also united in helping to address this immense health emergency – our first and utmost priority – while working together to mitigate the impact of the crisis, particularly on employment, and to support the wider recovery efforts through providing jobs and driving economic welfare worldwide.”
The 2020 Tokyo Olympics will be held from July 23 to August 8, 2021, following a decision made by organisers to postpone the sporting event in response to the global Covid-19 pandemic.
The new dates were announced on March 30 by Tokyo 2020 chief Yoshiro Mori, who also said that the Paralympics will be held from August 24 to September 5 in the Japanese capital.
Postponed Tokyo Olympics to open on July 23, 2021
The 2020 Tokyo Olympics was scheduled to open on July 24 this year, and this marks the first-ever peacetime postponement of the Games.
Although the International Olympic Association and host country Japan were keen on pressing forward with the Games, the massive pressure they faced from sports bodies and athletes due to the rapidly-spreading virus has led to the eventual postponement of the event.
Malaysia Airlines is reinstating some of its international flights in April and May to bring home families who have not been able to return to their loved ones due to travel restrictions in many parts of the world.
Group CEO Izham Ismail said in a press statement that many customers have asked his global offices for next available flights, mostly between Kuala Lumpur and Australia and New Zealand as well as onward to London.
Malaysia Airlines is reinstating flights between Kuala Lumpur and Auckland, Melbourne, Sydney, Perth, Jakarta and Guangzhou
“Being a network carrier, Malaysia Airlines is able to maintain connectivity and bring our customers direct or closest to their intended destination. And being Malaysia’s national carrier, it is our duty to ensure accessibility for Malaysia domestically and internationally during these difficult times,” Izham said.
The reinstated flights are between Kuala Lumpur and Auckland, Melbourne, Sydney, Perth, Jakarta and Guangzhou.
Since the enactment of the Movement Control Order in Malaysia which ends April 14, Malaysia Airlines has had to reduce its domestic frequencies and schedules. It is running at minimum, mostly to facilitate essential travels and cargo movement.
Izham shared that Malaysia Airlines and its sister airlines under the Malaysia Aviation Group have been supporting the local health ministry by transporting medical devices and supplies. It most recently delivered two tonnes of face masks and personal protection equipment from Kuala Lumpur to Kota Kinabalu as well as 300,000 pieces of disposable masks, 50,000 pieces of protection suit and 8,000 pieces of protection suit with eye mask courtesy of the Jack Ma Foundation and Alibaba Foundation from Shanghai to Kuala Lumpur.
Domestically, Malaysia Airlines, Firefly and MASwings facilitate movement of goods as well as medical staff across Peninsular Malaysia crossings and within Sabah/Sarawak. The three airlines have also positioned standby aircraft at Subang Airport, Kuala Lumpur International Airport and Kota Kinabalu International Airport to initiate rapid mobilisation of medical staff and professionals as well as other (non-Covid-19) patients to support the Ministry of Health’s capacity/resource management efforts across Malaysia.
Expo 2020 Dubai and the UAE have expressed support for a one-year postponement made by the Steering Committee following a meeting on March 30.
In a press statement, both emphasised their “collective aim to deliver an Expo that is true to its time and to our shared, urgent priorities” and acknowledged that with the ongoing pandemic, now “is not the right time”.
Bureau International des Expositions member states will need to vote on Expo 2020 Dubai’s fate at the next General Assembly
The statement said: “We continue to face a global situation that is both fast moving and unpredictable. Over the last several weeks, we have been working hard, both internally and in consultation with key UAE and international stakeholders, to review the ongoing impact of Covid-19 on our plans and preparations for Expo 2020 Dubai.
“While everyone involved in Expo 2020 Dubai remains firmly committed, many countries have been significantly impacted by Covid-19 and they have expressed a need to postpone Expo’s opening by one year, to enable them to overcome this challenge.
“In spirit of solidarity and unity, we support the proposal to explore a one-year postponement made by the Steering Committee at today’s meeting.”
Following the decision made at the Steering Committee meeting, the next step would be to have the Bureau International des Expositions (BIE) member states vote on the postponement at the General Assembly. Article 28 of the BIE Convention stipulates that a change of dates requires a two-thirds majority vote from the BIE Member States.
National carrier Singapore Airlines (SIA) has raised S$19 billion (US$13.3 billion) to tide over the pandemic, with S$15 billion through rights issuances, subject to shareholder approval, and the rest through a bridge loan facility with DBS Bank.
Proceeds from the former will be used for “capital and operational expenditure requirements” – including fleet upgrades – while the bridge loan will help the airline with “near-term liquidity requirements”.
SIA has secured S$19 billion in funding
Under the two rights issuances, all shareholders will be offered S$5.3 billion in fresh equity and up to S$9.7 billion in the form of 10-year Mandatory Convertible Bonds (MCB).
SIA’s largest shareholder, Temasek Holdings, intends to vote in favour of the issuances. Additionally, the investment company has committed to subscribe for its full entitlement and to purchase any balance from both issuances.
Peter Seah, chairman, SIA, is “confident” that the funding raised will better equip the airline to deal with existing challenges, and allow it to reinforce its leading position in aviation.
Dilhan Pillay Sandrasegara, CEO, Temasek International, believes the transaction will not only provide the airline with much needed short-term liquidity, but will also help SIA to extend the growth the company experienced prior to the pandemic to post-Covid-19 times.
In his Resilience Budget statement, deputy prime minister and minister for finance Heng Swee Keat said the Singapore Airlines Group was the heart of Singapore’s aviation ecosystem, accounting for more than half of passenger traffic in Singapore last year.
He emphasised the need to support the Group amid a fall in air travel, as a “diminished SIA will undermine the ability (of Singapore’s air hub) to recover from the crisis”. Heng also expressed his support for Temasek’s financial injection.
Hotels in Indonesia are finding ways to boost their bottomline by introducing food delivery services and self-isolation schemes, following the implementation of the government’s physical distancing policy.
The Aryaduta Hotels, for example, offers a Comfort in Self-Isolation programme for guests who are asymptomatic and looking for a place to isolate themselves within the 14-day virus incubation period. The programme includes accommodation and three meals a day.
Aryaduta Medan Hotel is one of the hotels that are offering self-isolation schemes
Greg Allen, president of Aryaduta Group, said in a statement: “Our staff are well-trained to follow strict protocol regarding physical distancing and hygiene. Implementation of these protocols have been advised by Siloam Hospital Group to minimise risk of exposure.”
Staff will not enter rooms dedicated for self-isolation and will not have direct contact with guests. Meal deliveries will be left at the door.
The hotel will arrange a free transfer to a Siloam Hospital for any guest who becomes symptomatic.
Similarly, Pandanaran Hotel Semarang is also offering a 14-day Luxury Self Isolation Package which includes three meals and two snacks per day, while Holiday Inn Express Jakarta Matraman has the WFH (work from hotel) package, allowing guests to work from the comfort of their rooms with high-speed Internet access.
In the meantime, a number of properties have rolled out promotions for customers to enjoy their favourite cuisine at home. For instance, Hotel Mulia Bali offers 50 food selections that will be delivered to customers’ doorsteps.
As well, The Alana Hotel & Conference Center Sentul City has launched a delivery menu for residents in Sentul City, Bogor. Its director of sales and marketing, Meirani Handayani, said that the move was to bolster business and avoid layoffs amid the Covid-19 pandemic.
While Alana only serves the community around the hotel, The Jayakarta SP Hotel & Spa Jakarta has cast its net wider by collaborating with Go-food, Go-Jek’s food delivery arm.
Its general manager, Rahadian Firmansyah, explained: “With the current condition, it is difficult for us to rely on income from room bookings. Therefore, we focus on increasing revenue from food and beverage.”
Since the outbreak hit the city, the F&B income of The Jayakarya SP Hotel & Spa has nose-dived by 50 per cent. “We hope that this delivery service can minimise losses.”
Similar expectations were echoed by Pramita Sari, director of communications at Parador Hotels & Resorts, which has also rolled out a delivery service as an alternative source of revenue.
Pramita shared that the service was first rolled out at Ara Hotel, one of the brand’s properties, on March 18, and saw “pretty good” response. Following that, the hotel group introduced similar services at Atria Hotel Gading Serpong and Fame Hotel Gading Serpong.
Through its #MakanDirumahAjaKamiyangAntar (Just eat at home, we deliver) campaign, Parador reached residents around Serpong and South Tangerang. “We are targeting families, boarding students and employees who are still working in the South Tangerang area.”
The Indian Railway Catering And Tourism Corporation (IRCTC), a subsidiary of Indian Railways that manages its internet ticketing operations, is looking to officially close distribution of its tickets through agent networks in a move that is expected to impact thousands of small enterprises.
There are more than 100 principle service providers (PSPs) who have been authorised by IRCTC to book tickets, and who further have a network of 300,000 sub-agents, also referred to as retail service providers (RSPs), at present.
Indian Railways looks to cease agent reliance
IRCTC, via communication to all its B2B PSPs, of which TTG Asia managed to obtain a copy of, has stated that there will be no annual renewals of their contracts and that they will also not be able to create new RSPs.
Jyoti Mayal, president, Travel Agents Association of India, said: “This is a very negative move as booking tickets is a source of income for many travel agents. We already have a restriction on the mark-up fee we can charge on a ticket. Many markets like Europe offer train tickets for travel agents to sell. Also, it brings ease of business to the table.
“With this move, touts who offer (passengers) rail tickets are going to come back. It is a further setback when our businesses are at a standstill due to the Covid-19 pandemic. The government should support us.”
Internet and Mobile Association of India has also expressed its disappointment on the proposed move, saying that apart from loss in employment and investment of companies, it will also impact bookings made on IRCTC as “there are people in India who need assistance for booking tickets”.
According to a source in IRCTC, the authorities decided upon the drastic step as a large number of agents were found booking train tickets meant for ‘tatkal’ (tickets Indian Railways offer to travellers with immediate travel plans that are released a day prior to the departure date) through fake e-mail addresses and mobile numbers using illegal software. Agents are unable to book tatkal tickets within the first 15 minutes when the window for the bookings open. However, these illegal software available in the market help agents to overcome such restrictions.
Airports Council International (ACI) Asia-Pacific is adjuring governments in the Asia-Pacific and the Middle East regions to take swift action to safeguard airports’ interests.
The association suggested five specific measures, which includes suspending airport slots usage requirements till end-June — with a potential for extention into 2H2020 depending on market conditions.
ACI Asia-Pacific urges governments to take steps to lift burden off its airport members
This will allow airlines to allocate and move resources according to the fall in passenger traffic, and ensure better protection of connecting traffic at hub airports, said ACI.
Meanwhile, the remaining four measures will directly alleviate the financial burden for airports.
Among them are the provision of tax relief — including waiving passenger departing taxes — and the deferring or suspending airport operators’ concession fees to governments.
Governments are also urged to provide financial assistance and to protect airport revenues from global waiver of airport charges or blanket discounts and to offer to bear the consequences of pegging charges at a higher amount.
ACI urged governments to take these steps amid an “extremely challenging” environment for its airport members, with data showing an 80 per cent decrease in traffic across Asia-Pacific member airports year-on-year in the second week of March.
“(Member airports) have already burnt through about 10 per cent of total yearly revenues in just three months,” said Stefano Baronci, director-general, ACI Asia-Pacific. “Relief measures are needed … to save jobs and allow economic recovery,” urged Baronci.
According to ACI’s revised forecasts, losses in 1Q2020 among airports in Asia-Pacific and the Middle East are expected to come in at approximately US$5.6 billion and US$1 billion respectively. Losses in the Middle East across 2020 are approximated at more than US$2 billion.
Smaller airports serving less than one million passengers a year cannot be neglected, as their survival ensures “the long-term social and economic benefits of (air) connectivity”, noted ACI.
Indonesia’s Ministry of Tourism and Creative Economy has partnered with several tourism and transportation players to provide accommodation and transport for medical frontliners and members of the Covid-19 Task Force.
At a press conference on March 26, minister of tourism and creative economy Wishnutama Kusubandio said a collaboration with Accor is underway to utilise the latter’s portfolio of properties to accommodate 1,100 medical staff in Jakarta, as part of phase one of the programme.
Ibis Styles Jakarta Sunter is one of the hotels in the Indonesian capital offering its facilities to house medical personnel and task force members during the Covid-19 pandemic
The ministry has also teamed up with BlueBird Group, Panorama Destination, White Horse Group and Antavaya Group to provide transport for medical workers and task force members in the Indonesian capital.
A budget has been set aside by the ministry to provide 615 rooms across five hotels and some 27 buses for the National Agency for Disaster Management in this initial stage.
Hotels selected for the programme are located near hospitals in Jakarta, namely, Cipto Mangunkusumo Hospital, the Gatot Subroto Army Hospital, the Sulianti Saroso Infectious Diseases Hospital and Persahabatan Hospital, according to Wishnutama.
Meanwhile, buses will commute medical personnel and task force members between the hospitals and hotels.
Participating suppliers must follow the standard operating procedures established by the Ministry of Health. Among the requirements are that hotel staff and guests must go don protective gear, use disinfection gates, and have their temperature checked.
Wishnutama called on hotels and transportation companies in other areas to take part in the programme, provided they meet certain requirements, such as being in the vicinity of relevant hospitals and not having retrenched any of its staff.
Wishnutama added that the ministry would pay the hotels at prices below the market rate, and that the cooperation would help keep the hotel and transportation industries afloat during these trying times.
Adi Satria, vice president of sales, marketing and distributions Indonesia, Malaysia and Singapore, Accor Hotels, said that the participating hotels – such as Novotel Cikini, Mercure Cikini, Ibis Styles Jakarta Sunter, and Ibis Senen – will not be accepting any regular guests during this period.
“All our teams who serve the (special) guests will also stay in-house to safeguard all parties,” he added.
WEHA Transportasi Indonesia, one of the transport companies supporting the government’s initiative, is providing four buses in the initial stage.
Its director of sales and marketing, Tiodora Bonardi, said: “On our part, we are ready to provide any number of vehicles they need.”
Tiodora added that the ministry would take care of drivers’ accommodation and meals, and provide all health and safety equipment needed during the programme.
“They will also train our drivers on the procedures and protocols to handle the guests, and how to keep themselves and the vehicles clean, healthy and ready at all times,” she added.
Indonesia’s Ministry of Environment and Forestry (KLHK) has ordered a temporary closure of 56 national parks and conservation sites nationwide, in a bid to further curb the spread of Covid-19 in the country.
Affected sites include popular national parks such as Bromo Tengger Semeru and Mount Ijen in East Java, Tanjung Putting in Central Kalimantan, Mount Rinjani in Lombok, Mount Merapi in Yogyakarta, and Komodo in East Nusa Tenggara.
Bromo Tengger Semeru National Park is among the 56 conservation zones that have been indefinitely closed to stem the Covid-19 spread
Wiratno, director general of Natural Resources Conservation and Ecosystems, said in a press statement that more protected sites may be added to the list. Furthermore, all cruise ships have been banned from entering Komodo National Park, Wiratno added.
Activities surrounding wildlife rescue, rehabilitation and release of animals will still be carried out amid the closure, depending on the on-ground situation, according to park authorities.
Tour and travel agents, meanwhile, have welcomed the shutdown order, saying it will not only stem the virus spread, but give time for the conservation zones to rest, and provide an opportunity for park operators to repair and maintain facilities in those areas.
Abed Frans, owner of Flobamor Tours, shared that KLHK’s initiative was a “timely and wise” decision. “Although there is no valid research on animal transmission, we must take precautionary measures,” he said.
Monas Tjahjono, managing director of Monas Tours and Travel, expressed hopes that the park authorities will use the closure period to improve the areas’ sanitation facilities, such as toilets and wash basins, as travellers will be more hygiene-conscious post-pandemic.
Additionally, Monas proposed that medical personnel be assigned to clinics or surveillance posts around the parks, to bolster tourists’ sense of security when the parks reopen.
Meanwhile, Donny, owner of Adonta Global Trip, urged the park operators to consider virtual tours and live streaming of the national parks to allow people to continue exploring those sites during the closure, which will also help raise exposure for the attractions.
