UNWTO anticipates strong tourism recovery in 2023
After stronger than expected recovery in 2022, this year could see international tourism arrivals return to pre-pandemic levels in Europe and the Middle East.
Based on UNWTO’s forward-looking scenarios for 2023, global international tourist arrivals could reach 80 per cent to 95 per cent of pre-pandemic levels this year, depending on the extent of the economic slowdown, the ongoing recovery of travel in Asia-Pacific and the evolution of the Russian offensive in Ukraine, among other factors.
Meanwhile, tourists are expected to increasingly seek value for money and travel closer to home in response to the challenging economic climate.
All regions bouncing back
According to UNWTO’s new data, more than 900 million tourists travelled internationally in 2022 – double the number recorded in 2021 though still 63 per cent of pre-pandemic levels.
Every global region recorded notable increases in international tourist numbers. Arrivals in the Middle East climbed to 83 per cent of pre-pandemic numbers, while Europe reached nearly 80 per cent of pre-pandemic levels as it welcomed 585 million arrivals in 2022. Africa and the Americas both recovered about 65 per cent of their pre-pandemic visitors, while Asia-Pacific reached only 23 per cent, due to stronger pandemic-related restrictions which have started to be removed only in recent months.
The first UNWTO World Tourism Barometer of 2023 also analyses performance by region and looks at top performers in 2022, including several destinations which have already recovered 2019 levels.
UNWTO secretary-general Zurab Pololikashvili said: “A new year brings more reason for optimism for global tourism. UNWTO anticipates a strong year for the sector even in the face of diverse challenges including the economic situation and continued geopolitical uncertainty. Economic factors may influence how people travel in 2023 and UNWTO expects demand for domestic and regional travel to remain strong and help drive the sector’s wider recovery.”
Chinese tourists set to return
UNWTO foresees the recovery to continue throughout 2023 even as the sector faces up to economic, health and geopolitical challenges. The recent lifting of Covid-19 related travel restrictions in China, the world’s largest outbound market in 2019, is a significant step for the recovery of the tourism sector in Asia-Pacific and worldwide.
In the short term, the resumption of travel from China is likely to benefit Asian destinations in particular, shaped by the availability and cost of air travel, visa regulations and Covid-19-related restrictions in the destinations. By mid-January a total of 32 countries had imposed specific travel restrictions related to travel from China, mostly in Asia and Europe.
At the same time, strong demand from the US, backed by a strong US dollar, will continue to benefit destinations in the region and beyond. Europe will continue to enjoy strong travel flows from the US, partly due to a weaker euro versus the US dollar.
Notable increases in international tourism receipts have been recorded across most destinations, in several cases higher than their growth in arrivals. This has been supported by the increase in average spending per trip due to longer periods of stay, the willingness by travellers to spend more in their destination and higher travel costs due to inflation.
However, the economic situation could translate into tourists adopting a more cautious attitude in 2023, with reduced spending, shorter trips and travel closer to home.
Furthermore, continued uncertainty caused by the Ukraine-Russian conflict and other mounting geopolitical tensions, as well as health challenges related to Covid-19, also represent downside risks and could weigh on tourism’s recovery in the months ahead.
The latest UNWTO Confidence Index shows cautious optimism for January-April, higher than the same period in 2022. This optimism is backed by the opening up in Asia and strong spending numbers in 2022 from both traditional and emerging tourism source markets, with France, Germany and Italy, as well as Qatar, India and Saudi Arabia, all posting strong results.
Banyan Tree Samui rebuilds education centre devastated by storm
Banyan Tree has completed its latest project of rebuilding the canteen at the Wat Santi Wanaram Child Development Centre after it was destroyed by a tropical storm in January 2019.
The company’s Banyan Tree Global Foundation has sponsored hundreds of causes and projects worldwide, and for this project, Banyan Tree Samui not only funded the cost of reconstruction but the hotel staff even rolled up their sleeves and helped out with landscaping and other labour-intensive tasks.
After over a year of construction work, the canteen at the Wat Santi Wanaram Child Development Centre has been completed. The 103 children and their teachers will have a fresh and safe environment for lunch, activities and play.
Other initiatives implemented successfully by Banyan Tree Samui in recent years include a blood drive campaign, and the ongoing “Seedlings Mentorship” project aimed at nurturing young Samui students by providing them with vocational and life skills and education, and offering scholarships and financial support.
Muslim Gen Z Travellers seek culture and sustainability in travel: Mastercard-CrescentRating
The inaugural Mastercard-CrescentRating Muslim Gen Z: The Next Generation of Travelers report revealed that the Muslim Gen Z population is actively looking to travel, with 69% planning to take two or more trips in the next 12 months, and 32% wanting to stay at their destinations between one and two weeks.
Two thirds are looking for cultural immersion in their chosen destinations, while nature excursions are prioritised just as highly as more conventional “leisure seeking” pursuits, such as shopping and events. They are also developing financial independency with 32% paying for trips from their own pockets as opposed to 16% who rely solely on their parents.
Almost half of the respondents (45%) identify themselves as environmental enthusiasts. Nearly a third are willing to minimise flying, while 11% will pay for carbon offsets and 14% will take holidays closer to home to avoid longhaul flights.
Muslim Gen Z are known as intentional spenders where 77% are willing to spend more on sustainable practices such as reducing air travel, participating in voluntourism (or volunteer tourism), and supporting local businesses. When it comes to payment methods overseas, 73% are more inclined to use a debit or credit card while 57% prefer to use cash.
“Being the first generation born in the digital age, Gen Z are often considered the true digital natives with exposure to the internet, social networks, and mobile devices from a very early age. Gen Z are actively redefining what it means to travel. This report presents clear, actionable findings for tourism operators around the world that can help them to capture this incredibly important demographic,” said Fazal Bahardeen, founder and CEO, CrescentRating and HalalTrip.
Muslim Gen Z women also emerged in the study as important decision makers, with over 70% heavily involved in planning for family travel. Almost 70% prefer cultural immersion activities such as experiencing local traditions, heritage, and cuisine. In addition, 63% seek opportunities to learn something new in their travels. They are also drivers for change, with 76% indicating social causes to be important in their travel plans.
Faith-based services are also important for Muslim travellers, with Muslim Gen Z identifying Halal food services, prayer facilities, and washrooms fitted with water gadgets as “need-to-have” factors when considering destinations.
“We’ve seen that all over the world, consumers are making up for the lost time in travel due to the challenges over the last few years. They are enthusiastically wanting to visit new places and discover new experiences while keeping sustainability top of mind, and this demand will influence consumer choice and spend significantly in 2023,” said Safdar Khan, division president, South-east Asia, Mastercard.
Emirates ramps up European services
Emirates will scale up its A380 operations with a return to Scotland’s Glasgow (March 26), France’s Nice (June 1) and the UK’s Birmingham (July 1).
It will also resume its second daily service to London Stansted from May 1 this year, utilising the Boeing 777-300ER aircraft that is outfitted with the Game Changer First Class product.
With the return of the second daily flight to London Stansted, Emirates will operate 11 daily flights to London, including six times daily to London Heathrow and three times daily to Gatwick.
Hoiana launches new loyalty programme
Hoiana Resort & Golf has introduced Hoiana Premier Rewards, a loyalty programme that is free to join and where members can enjoy service recognition, exclusive promotions and resort-wide discounts in Vietnam.
Promising more premier rewards for members, Hoiana Premier Rewards guarantees exclusive access to signature experiences, resort-wide discounts, promotions, privileges, personalised rewards, best price guaranteed resort packages, partner benefits and more at Hoiana Resort & Golf.
There are four membership tiers – Essential, Prestige, Elite and INFINITE, and the programme has also designed exclusive member experiences such as the Chef On Call, Hoiana Art Tea and the Ylang Ylang Vietnamese Massage.
Chef On Call is a tailor-made dining experience prepared for members in the privacy of their own Hoiana Residences. Hoiana Art Tea, inspired by the iconic lanterns of Hoi An, features colourful cakes hand-crafted in the shape of beautiful lanterns by executive sous chef Hugo Bertolini and his team at The Edge; and the traditional Ylang Ylang Vietnamese Massage rejuvenates body and soul with ancient, deep tissue techniques that accurately target pressure points.
Members can also redeem gifts and services from the Hoiana Premier Rewards Gallery which comprises the latest tech gadgets, fine jewellery, custom-made suits, luxury resort stay and much more.
New weekday deals at Bintan Resorts
Bintan Resorts, along with Bintan Resort Ferries and participating resorts in Bintan, have launched Let’s Go Bintan – Great Weekday Deals.
Valid for Sunday through Thursday travel only, the promotion includes accommodation, return ferry and land transfers, and a choice of two activities: Bintan Mangrove Discovery Tour or Sand Dune and Blue Lake Tour.
Participating resorts include ANMON, Cassia Bintan, Doulos Phos The Ship Hotel, Grand Lagoi Hotel by Willson, Natra Bintan, Nirwana Resort Hotel, and Pantai Indah Lagoi Bintan.
The weekday promotion is now open for booking and valid for travel between February 1 and May 31. Prices start from S$149 (US$112) per person, and children under 11 years get to enjoy the said tours free of charge.
For more information, contact Bintan Holiday, LittleWalk Asia, or WeekendGoWhere.
G Adventures forms G Travel Community
G Adventures has a new holding company to bring its existing and new brand acquisitions under the same overarching parent brand – G Travel Community (GTC).
GTC’s purpose is to create a community of travel companies that have ‘community-led growth’ at the core of their strategies, and a shared belief in the power of changing peoples’ lives through travel.
The GTC brands are united in their mission to bring people together through travel to affect positive change – changing the lives of the traveller community, those of the local people in communities benefiting from tourism, and all GTC team members across the business.
Joining the GTC portfolio are G Touring (Travelsphere and Just You) and TruTravels, which are both based out of the UK. Planeterra, G Adventures’ non-profit partner, will also benefit from this ‘shared services’ model. All brands will be supported from a centralised administrative standpoint, yet retaining its own brand’s operational functions and identity.
Taking on the title of chairman for G Travel Community is Bruce Poon Tip, the chairman of GTC and founder of G Adventures, who said: “The formation of GTC signifies that this sense of community is truly at the heart of our entire business. We are the pioneers of community tourism, so it’s exciting to see this be fully embraced internally as well as externally… our goal is always to have a far bigger impact in the wider world of tourism.”
He added: “With the formation of GTC we are finally creating that community – a stable of travel brands that can really drive change to a wider demographic of people who love to travel, but at the same time want to change the world.”
G Adventures’ COO Jeff Russill will become the CEO of GTC and oversee the G Adventures, TruTravels and G Touring brands while Ben Perlo, currently managing director for G Adventures in the US, will take on the mantle of president and CEO for the G Adventures brand, in addition to his current role in the short-term.
Singapore tourism to return to pre-pandemic levels by 2024
Singapore tourism is expected to recover to pre-pandemic levels by 2024 on the back of a strong recovery trajectory in 2022 and continued growth momentum this year, said Singapore Tourism Board (STB) officials at this morning’s Year-in-Review conference.
Exceeding STB’s forecast of four to six million visitors, the city-state’s international visitor arrivals (IVA) hit 6.3 million in 2022 – about 33 per cent of 2019’s IVA – with key source markets Indonesia (1.1 million), India (686,000) and Malaysia (591,000) leading the way.
Tourism receipts are estimated to reach S$13.8 billion (US$10.4 billion) to S$14.3 billion, about 50 to 52 per cent of 2019’s takings with top markets, Indonesia, India and Australia contributing S$1.1 billion, S$704 million, and S$633 million respectively.
The average length of stay in Singapore was about 4.81 days (post-quarantine period), compared to 3.36 days for the same period in 2019.
Arrivals were boosted by a number of marquee events in 2022, such as the Formula 1 Singapore Airlines Singapore Grand Prix 2022 that drew a record attendance of 302,000, and Singapore Fintech Festival, which attracted a record turnout from over 115 countries.
In tandem with the stronger demand for leisure and business travel, Singapore’s hotel industry posted an AOR of 79.1 per cent from April to December 2022, compared to 87.3 per cent in the same period in 2019. ARR during this period increased by 17 per cent to S$260, while RevPAR went up by 6.2 per cent to S$206.
In 2022, Singapore’s position as a regional cruise hub also strengthened with more than 230 ship calls and a passenger throughput of 1.2 million, about two-thirds of pre-pandemic levels in 2019.
With increasing flight connectivity and capacity as well as China’s gradual reopening, STB expects the growth momentum to spill into 2023. IVA is expected to reach around 12 million to 14 million visitors, bringing in approximately S$18 billion to S$21 billion in tourism receipts – around two-thirds to three-quarters of 2019 levels.
STB chief executive Keith Tan said the IVA projections are impacted by China’s speed of recovery – “how fast they open and flights are restored”.
He expects to see Chinese arrivals returning to 30 to 60 per cent of 2019’s numbers by the end of 2023.
Moving into the new year, STB will continue to support the development of new and refreshed offerings, such as Bird Paradise @ Mandai Wildlife Reserve, and pump S$110 million into boosting business and leisure events over the next two years. The new year has kicked off strongly with some high-profile events, such as Art SG, South-east Asia’s largest art fair, and Sail GP, which made its Asian debut last week.
Destination marketing through the SingapoReimagine campaign will be intensified in all key markets while the SingapoReimagine Marketing Programme will help local tourism and lifestyle businesses promote Singapore.
To alleviate the manpower crunch, STB will continue to help the tourism sector ramp up hiring, support manpower needs and provide assistance for digital transformation industry-wide. As of September 2022, the total tourism workforce is around 65,000 – about 78 per cent of 2019 levels.
Summing up, Tan said: “To sustain our growth in 2023 and beyond, we will expand our partnerships, build up a rich year-round calendar of events, ramp up investment in new and refreshed products and experiences, and continue to support industry efforts to build the capabilities they need to meet consumer demands.”
The secret to success
What trends are you seeing in the needs of international visitors and how are you accommodating them?
The way travellers around the world think about luxury is changing. Things like quality time and rare experiences now define luxury travel more than luxurious spaces. Ecotourism, which aims to allow travellers to experience and learn about the natural environment, culture and history of a region, is now attracting attention. In this case, luxury tourism could be described as encountering nature that only exists there and experiencing food that can only be eaten there.
We believe that by offering these real experiences (unique to) each local area, we can meet the needs and trends for our luxury customers.
What are your growth plans in Japan?
We are trying out new initiatives such as operating a hotel near Kansai International Airport. (Surveys show that the) criteria for choosing an airport hotel were price, access and cleanliness, and airport hotels were mostly used only for sleeping. I want to create an airport hotel that can offer a fun stay as a hotel concept.
Also, we opened Risonare Osaka at Hyatt Regency Osaka in December 2022. This hotel is a new initiative for us as it is part of a “hotel-in-hotel” structure. When Hyatt Regency Osaka was built, it had a decent market size so 300 rooms were created to match that demand. However, due to the pandemic, market demand is changing. Tourists will become more numerous than business travellers. Osaka is oversupplied by accommodation and hotel competition is tough. Filling up 300 rooms became the issue, so we came up with the idea of two brands collaborating. While Hyatt Regency Osaka is strong in some markets, Risonare is strong in others, particularly among families with children. I wanted to try filling the entire 300 rooms by bringing together these two hotel brands.
How about your growth plans for overseas?
Our vision for the future is not only to operate in Japan, but also to become a globally competitive hotel management company. The Japanese are originally famous for their hospitality so I want to do something to change the fact that Japan cannot compete globally in the hospitality-focused industry of tourism. Now, we are targeting the US because it is the launching pad for the global hotel industry.
One of our ongoing plans is to open a Japanese-style hot spring inn (ryokan) within three to five years in the US. If we are recognised there, we will have more opportunities to expand in other regions. I believe the hot spring inn is a unique accommodation and has elements of a Japanese cultural theme park. There are about 1,200 hot spring spots in the US, such as (in) California and Colorado. As the number of foreign visitors to Japan from the US has increased in recent years, the level of understanding of (the) Japanese culture has also increased. Japanese-style hot spring inns in the US, therefore, are likely to be both desirable and successful.
Hoshino Resorts’ history goes back to 1914, when its first ryokan hot spring inn was established – so what is your secret to success?
In order to operate all Hoshino Resorts properties equally, the culture must be flat, and not the organisation itself. This is not an idea we came up with, but is based on American author Kenneth Blanchard’s theory of organisational management. This theory is the guiding principle for creating a flat culture and solving various onsite problems at Hoshino Resorts.
Our staff are always aware and discovering something new while serving customers, and without this awareness and discovery, it is difficult for hotels to function properly. Therefore, the most important element of management is that the employees think for themselves. Problems come up onsite and solutions should be decided immediately. Carrying out the decision-making process onsite, rather than at our headquarters in Tokyo, is our essence. Our job at the headquarters is to provide the right environment and invest in the system. It is important to create an organisation where each resort acts independently.
Despite tourism challenges, two Sri Lankan hotel players have remained firm in their efforts to uplift local communities as they rebuild their business.
Homegrown Teardrop Hotels, which has seven hotels across the country, maintains at least nine community projects, according to Manoj Devaraj, group head – sales and marketing.
Each hotel has an adopted charity organisation, while the head office supports two others – Teardrop Care Centre for Children with Disabilities, where the company is the main sponsor for Volunteers to Assist Children with Disabilities’ Welimada centre, scheduled to open this year; and a collaboration with the Tea Leaf Trust, where the company provides employment opportunities for impoverished young people raised on tea estates as well as organises field trips and workshops to expose these youths to personal growth opportunities in the tourism industry.
The team at Fort Bazaar, a hotel set within the historic port city of Galle, supports Sambodiya Home with regular infrastructural refurbishment and maintenance.
Recalling the progress of the hotel’s work with Sambodiya Home, Devaraj said efforts initially were not structured. It took a partnership with Travelife in 2020 to realise that a guided approach was needed for work to be meaningful.
“Travelife also led us to scrutinise our use of resources and cut down on imported items,” added Devaraj. As a result, Teardrop Hotels has improved the conditions of its four fruit and vegetable gardens across the country so that more produce could be harvested for use in hotel kitchens. Today, 30 per cent of its fruit and vegetable supplies are from these gardens.
Seafood, meats and other ingredients are also obtained from local producers “as much as possible”.
Close to 85 per cent of ingredients used in Teardrop Hotels kitchens are now locally sourced – up from about 60 per cent pre-pandemic.
“We have even looked at how suppliers work with us,” he added. To encourage local producers to deliver orders more sustainably, the company supplied reusable, stackable crates.
“The pandemic and import disruptions made us realise that relying on local producers is more reliable, offers greater value, and enables us to support our own people,” Devaraj said.
The slow return of tourism business has not dampened the company’s community commitment. Devaraj said: “Some of them were initiated during the pandemic, and we continue to do whatever we can with the manpower and resources we currently have.”
Over at Shangri-La’s Hambantota Golf Resort & Spa, efforts have been ongoing the past three months to raise the digital literacy of the teachers at a local village school. The effort is a long-term investment to build a more tech-savvy pool of young people that the hotel and other businesses could eventually hire.
General manager Refhan Razeen told TTG Asia: “Tourism will return to Sri Lanka, and we need to be prepared for that. One way is to work on local human resources.”
Next on Razeen’s to-do list is the establishment of a hotel school in Hambantota, “which will give locals a chance for employment at both Shangri-La hotels here and in Colombo”.
He said the “plans are drawn up” and awaiting approval from the top.
Besides investing in education, the hotel will soon launch the Green Passport, a hotel-wide sustainability programme with a goal of 15 Rs – Respect, Rethink, Responsible, Resource, Restore, Reduce, Reuse, Repair, Reclaim, Replace, Refill, Refocus, Recycle, Refuse and Reward.
Fleshing out the objectives of some of the Rs, he said Rethink would involve reviewing daily practices towards a sustainable future, while Restore would mean fixing damaged items so that they could continue to be used and not simply thrown away.
Razeen acknowledged that the Green Passport is “an ambitious project”, but it provides a clear structure for all staff to follow through on their sustainable journey.
A green champion will be appointed to lead topical efforts, such as water conservation, and come up with an action plan to bring ideas to fruition.
Razeen is hopeful that achievements could be used as case studies for other Shangri-La hotels as well as for local university students specialising in sustainability.
To further support the local community, Razeen is looking to engage a village near Yala to produce and supply the hotel with vegetables.
“This community is dependent on wildlife safari, which is seasonal. By having them grow and supply food to our hotel, they can earn income during the off-season,” he explained.