Indonesia’s entry ban on foreign travellers stokes demand recovery fears
The Indonesian government’s decision to ban all international arrivals for two weeks starting January 1 amid concerns over the new Covid-19 strain has triggered fears among trade players on the ensuring hit to demand recovery for the country’s tourism.
Foreign affairs minister Retno Marsudi, who announced the temporary ban on December 28, said foreign officials at ministerial level and above were exempted from the ban, but they had to go through strict health protocols.
Businesses like Pegasus Indonesia Travel have taken a hit from the entry ban. Its CEO, Jimmy Saputra, said December to February was traditionally the peak season for travellers from Russia and other CIS countries to visit Bali. He said the ban had prompted 10 Russians who had planned to visit Indonesia in January to cancel their business trip, and another 15 to reschedule.
Daniel Nugraha, director of Exotic Java Trails, was concerned that the temporary ban would be extended. Covid-19 had forced his inbound clients to push their 2020 travel plans to 2021, and he feared a second postponement could spark a wave of cancellations.
With the entry ban in place, travel companies are pinning their hopes on domestic tourism to revive business, according to Wisnu Arimbawa, managing director of GD Tour Bali.
He, therefore, expects the government to create conducive policies to support the recovery of businesses. He cited the case of the government’s last-minute announcement made just before the Christmas holiday requiring domestic tourists to present a negative polymerase chain reaction (PCR) or antigen test result, instead of rapid test, when entering Bali. The additional costs incurred, especially significant for family travellers, had led to some guests cancelling their holidays.
Bali was at risk of losing up to 967 billion rupiah (US$68 million) due to airfare refund demands from domestic tourists following the sudden announcement of the test result requirement, according to Hariyadi Sukamdani, chairman of Indonesia Hotel and Restaurant Association.
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Shangri-La offers free Covid-19 coverage in Singapore
The Shangri-La Group is now offering free Covid-19 insurance coverage to international guests staying in any of the brand’s four hotels in Singapore from now through June 30, 2021.
Underwritten by AIG, the insurance will cover up to S$250,000 (US$189,860) in emergency medical expenses, should the guest test positive for Covid-19 during their stay. The policy also covers additional accommodation (room only) and travel expenses, should the guest need to extend their stay for medical reasons.
Guests can also contact a dedicated AIG customer service team for assistance if they are diagnosed with Covid-19 during their stay in Singapore. They will also have access to round-the-clock emergency travel assistance during their trip.
Currently, the Covid-19 medical coverage is only available to international guests entering Singapore under the reciprocal green lane or on the air travel pass scheme.
Chan Kong Leong, regional CEO for the Shangri-La Group in Southeast Asia & Australasia, said: “We have chosen to start with the Singapore market as the Singapore government has been proactively relaxing travel restrictions in a gradual and calibrated manner and has highlighted Covid-19 insurance coverage as a key enabler to rebuilding traveller confidence.”
To qualify for the Covid-19 coverage, guests have to book their stays through the hotel’s official website or mobile app. They can also do so via the reservations hotline and email directly to the hotel group.
Vietravel Airlines set for maiden flight
Vietravel Airlines has been given the green light by the country’s aviation authority to begin operating commercial flights, with plans to take to the skies in mid-January.
The airline has begun selling tickets since January 1. With a hub in Phu Bai International Airport near Hue, Vietravel Airlines will initially operate services to Hanoi and Ho Chi Minh City, before expanding to major tourist destinations like Nha Trang, Danang and Dalat, reported VnExpress. It also plans to fly to South-east Asia, North-east Asia and the Middle East.
The airline has taken delivery of its first 220-seat Airbus A321 plane and is due to receive two more before the peak Lunar New Year travel season, according to the report. As well, it has hired some 200 pilots and flight attendants, and plans to expand its fleet to 30 for international operations.
Joining Vietnam Airlines, Vietjet Air, Pacific Airlines, Vietnam Air Services Company and the Bamboo Airways, Vietravel Airlines is the sixth air carrier in launch in the country, amid the ongoing Covid-19 pandemic that has posed unprecedented challenges to the aviation industry.
Thailand maintains focus on health and wellness tourism
The Tourism Authority of Thailand (TAT) has successfully concluded the Amazing Thailand Health and Wellness Virtual Trade Meet 2020, aimed at promoting the country’s health and wellness sector amid ongoing pandemic-induced travel restrictions.
The three-day event, which ran from December 15 to 17, was attended by 49 Thai suppliers and 82 buyers hailing from 27 countries.
Yuthasak Supasorn, TAT governor, said: “Due to the current challenging conditions during the Covid-19 pandemic, TAT has taken this opportunity to promote Thailand’s health and wellness industry. People are now more health-conscious that ever before, and Thailand is among the world’s top destinations that international tourists want to visit once the situation improves. (It also helps that) the country is globally recognised for its effective Covid-19 preventive control measures.”
The Amazing Thailand Health and Wellness Virtual Trade Meet 2020 allowed Thai health and beauty tour operators to highlight new products and services in Thailand, and connect with potential international partners.
The event boasted two main activities: a virtual trade meet with pre-scheduled appointments in three time zones, plus informative webinars including The Future Trends of Health and Wellbeing Economy: Wellness Tourism Trend 2021 session led by the director of Baramizi Lab.
TAT offices in Moscow, New Delhi and Chengdu also provided market insight updates on health and wellness pertaining to the Russian, South Asian and Chinese markets. Elsewhere, the president and CEO of the Wellness Tourism Association of Canada, in conjunction with the TAT Toronto Office, shared market insights on the North American wellness traveller.
The Department of Disease Control provided updates on key measures taken to tackle Covid-19, while the Department of Health Service Support shed light on the state of wellness quarantine in Thailand. As well, TAT provided further details on the Amazing Thailand Safety and Health Administration.
Destination updates from Phuket, Samui, and Krabi, alongside presentations from the Spa Association and the Private Hospital Association of Thailand, formed the rest of the event content.
Singapore, Malaysia abort High Speed Rail project
The High Speed Rail (HSR) project between Singapore and Malaysia has been terminated, after both countries failed to reach an agreement on changes sought by Malaysia due to the economic fallout from the pandemic.
The announcement was made in a joint statement by the prime ministers of both countries on Friday (January 1), following their meeting via videoconference on December 2, 2020 to review the status of the HSR project, including changes proposed by Malaysia.
“In light of the impact of Covid-19 pandemic on the Malaysian economy, the government of Malaysia had proposed several changes to the HSR project,” read the joint statement by the leaders.
“Both governments had conducted several discussions with regard to these changes and had not been able to reach an agreement.”
Following the termination, Malaysia has to compensate Singapore for costs already incurred, said Singapore’s Transport Ministry.
Singapore and Malaysia had signed the Kuala Lumpur-Singapore HSR Bilateral Agreement in 2016. In September 2018, both parties agreed to postpone the construction of the HSR until May 2019.
In June 2020, Singapore’s then-transport minister, Khaw Boon Wan, announced that Malaysia had requested for another seven-month extension to allow both countries to discuss Malaysia’s proposed changes to the project. Both parties had also agreed then to a final extension of the suspension period to December 31.
The proposed rail link would have cut travel time between Singapore and Kuala Lumpur to 90 minutes, as compared to over four hours by car.
Sri Lanka reopens to tourists under pilot project
Following a nine-month-long travel ban imposed due to the pandemic, Sri Lanka reopened its borders to international visitors on December 28, with the first arrivals being a group of Ukrainians in a series of charters initially under a pilot project before the country opens fully for commercial travellers.
Under the pilot project, nearly 3,000 tourists from Ukraine will visit the country, coming in batches of around 200 per flight onboard Ukrainian Budget Carrier SkyUp Airlines which is operating flights to Mattala Rajapaksa International Airport, the country’s second international airport located on the southern tip of Sri Lanka.
The 12 flights will operate till January 19, after which the authorities will review the progress of the scheme before deciding when to reopen the borders for visitors from other countries.
The first flight landed on December 28 with 180 passengers, the second the following day with 204 passengers, and the third on January 2 with 172 passengers. The visitors are travelling under a bio-bubble with limited contact with the local community to avoid Covid-19 infections. Five visitors, arriving on the first flight, had tested positive for Covid-19 and were transferred to treatment centres.
Sri Lankan tourism authorities have been pushing to reopen the country to tourism, a key sector in the country’s economy, but the process has been repeatedly delayed in the absence of a go-ahead from health officials.
Tourism minister Prasanna Ranatunga told a local newspaper that stringent measures were being taken to prevent the tourists from coming into contact with the local community. “They travel as a group wherever they go and will not be exposed to any civilians,” he said, adding: “They are always under supervision.”
The charters from Ukraine had been arranged through the business contacts of Udayanga Weeratunga, a former Sri Lankan ambassador to Russia, who is a cousin of prime minister Mahinda Rajapaksa and an influential member of the current administration. Local media have accused the former ambassador of ignoring health protocols by arranging accommodation in hotels, which have not yet been given the Covid-19 certified status by the state’s tourism agency Sri Lanka Tourism Development Authority. Visits to national parks and other places of interest are also allegedly violating health protocols, the local Sunday Times reported.
According to earlier health guidelines issued pursuant to the opening of the Mattala airport for tourism, every tourist must produce a negative Covid-19 report taken 72 hours before arrival. They will also need to take a polymerase chain reaction (PCR) test at the hotel upon check-in, and another PCR test five to six days later if they are staying for over a week.
Tourists will also be required to stay in one resort for one week before being allowed to move to another resort or hotel if their stay extends beyond that period. They will be allowed to move around in restricted areas which have been cleared by the authorities.
As of January 3, Sri Lanka has reported 44,371 Covid-19 cases and 211 deaths.
Thailand: a health and wellness powerhouse
Brought to you by Tourism Authority of Thailand
In promoting Thailand as a health and wellness destination, the inaugural Amazing Thailand Health and Wellness Virtual Trade Meet held from 15-17 December, 2020, saw 49 Thai suppliers and 82 buyers hailing from 27 countries congregate on the TTVM platform.
The virtual trade meet also provided an opportunity for Thai health and wellness related businesses to update and share best practices, trends, and new products and services in the country with potential international partners.
Two key activities evolved from this format were pre-scheduled appointments with three time durations tailored to different time zones, and informational webinars. Webinar topics presented ranged from wellness forecasts in 2021, to market insights on global travellers, to anticipated updates by the Department of Disease Control regarding the tackling Covid-19 and new norms; alongside TAT updates on Amazing Thailand Safety and Health Administration (SHA).
Destination updates from Phuket, Samui, and Krabi, along with presentations from the Spa Association and the Private Hospital Association of Thailand also provided both market specific and association updates.
Yuthasak Supasorn, TAT Governor, observed the existing challenging conditions during the pandemic is all the more reason to promote Thailand’s health and wellness industry.
He added: “People are now more health conscious than ever before, and Thailand is among the world’s top destinations that international tourists want to visit once the situation improves. This is helped because the country is globally recognised for its effective Covid-19 preventive control measures.”
In 2017 and 2018, medical, and health and wellness tourists to Thailand amounted to more than 300,000 annually. East Asian countries constituted the largest number of visitors, followed by ASEAN, South Asia, South Pacific countries, EMEA and the Americas, respectively.
The country’s growing health care industry has been supported by more than 370 hospitals, 61 of which are accredited with Joint Commission International (JCI) standards.
TAT’s overseas offices also market health-related packages to the following two segments: medical tourists, and health and wellness tourists – with the latter combining gastronomy and sport tourism products into their stays. Preferred destinations for wellness-related travels include Bangkok, Phuket, Krabi, Chiang Mai and Koh Samui.
The annual Amazing Thailand Health and Wellness Trade Meet will take place again in 3Q2021 with the event format advised closer to date, pending developments from the pandemic. Please stay tuned!
HK quarantine hotels selection draws questions
- 36 hotels across Hong Kong picked for initial phase of scheme
- Scheme is expected to boost business for struggling hotels
- Hoteliers claim inconsistency in selection process
Hong Kong has established a quarantine hotels scheme to support her intensified infection control measures against a surge in Covid-19 community cases. Since December 22, all travellers arriving in Hong Kong from countries outside of China must undergo a 14-day compulsory quarantine at designated quarantine hotels.
Designated quarantine hotels will only receive quarantined travellers who will arrive in appointed transportation provided by the government.
According to Hong Kong’s Food and Health Bureau, invitations to join the scheme were issued to more than 2,000 hotels and guesthouses with valid hotel licences or guesthouse licenses. Some 100 applications were received, and 36 from nine different districts were eventually qualified to form the first batch of designated quarantine hotels.
A bureau spokesperson told TTG Asia that the government sought participation from different hotel groups and properties with varied price ranges.
“We primarily consider whether the design, facilities and operations of the hotels meet the government’s infection control requirements. Other factors include location, room rate, number of rooms offered by the hotels; they must also pass the inspection conducted by the Department of Health and other relevant departments…”, the spokesperson further explained.
A copy of the invitation letter provided to TTG Asia by hoteliers showed other requirements – the hotel has to be in a standalone building, centrally managed and have individual rooms with toilet/bathroom without the need to share daily-use facilities; and the hotel operator must close all ancillary guest facilities (such as gym, spa and restaurant), and reject appointments or bookings for facilities for purposes other than lodging for quarantine guests.
Commenting on the first batch of designated quarantine hotels, the spokesperson said room rates ranged from HK$300 (US$38.70) for non-suite room types to several thousands for suites, with 80 per cent of rooms offering rates of under HK$1,000.
“We will consider allowing more hotels to join the scheme if situation warrants,” the spokesperson added.
Business booster and disruptor
As wage subsidies for the travel and tourism industry have concluded end-November 2020, the quarantine hotels scheme is seen as a lifeline for hotels struggling to cope with severely reduced business due to the ongoing pandemic and travel restrictions.
Hotels contracted under the scheme will obtain quarantine travellers for 60 calendar days, with rates set on a full-board basis. The government is committed to a minimum guarantee of 50 per cent room nights during the contracted period and at the rate of 70 per cent of the hotel’s non-suite rate per room night or HK$600, whichever is lower.
However, the scheme is not palatable to all hoteliers.
Local chain Tang’s Living Group, which owns 15 hotels across the destination, has chosen to skip programme due to a desire to protect its guests and employees. “With long-stay being one of our key pillars of business, ensuring a safe, healthy and comfortable environment for all perpetually is of paramount importance,” explained the company spokesperson.
Likewise, Hyatt Centric Victoria Harbour Hong Kong has also chosen to prioritise its staff and existing guests. Long-stay residents account for 20 to 30 per cent of the hotel’s occupancy each month, revealed general manager Andy Chang. Being in the quarantine hotels scheme would mean inconveniencing these guests as they would have to find alternative accommodation, he said.
Confusion abound
Despite the published selection guidelines, some Hong Kong hoteliers said the process had been anything but clear.
A hotelier who asked for anonymity, said that although her property had experience in serving voluntary quarantine guests earlier in 2020, her application to be a designated quarantine hotel was rejected.
She said the rejection was due to a failure to meet certain requirements, such as not being in a standalone building. “The result made me so frustrated and confused, as some of the designated quarantine hotels (do not meet the criteria). The Landmark Mandarin Oriental Hong Kong, for instance, is approved but it is attached to a mall. Another approved hotel, Four Points by Sheraton Hong Kong Tung Chung, was not even opened (at the point of selection), and has no experience in handling (quarantine cases),” the hotelier said.
In the case of Four Points by Sheraton Hong Kong Tung Chung, the hotel expressed in a press statement that it has “passed the infection control inspection by the Department of Health and other relevant departments including the Electrical and Mechanical Services Department and the Buildings Department” and that it is compliant with all health guidelines. Precautions are also in place to protect its staff, such as by way of providing protective gear to all associates and have them undergo Covid-19 tests every 14 days.
Girish Jhunjhnuwala, founder and chief executive of Hong Kong-based Ovolo Hotels, told TTG Asia: “Although Mojo Nomad Aberdeen owned by the group has been included (in the scheme), it is the one least suited (for quarantine).”
He explained that Ovolo Hotels was among the first hotel chains to provide quarantine stays for returning residents since March 2020, chalking up more than 1,500 quarantine stays and 21,000 quarantine room nights of experience. The properties have earned numerous positive feedback from guests for their “gold standard quarantine service”.
Despite this, none of the experienced quarantine hotels in the group were qualified for the quarantine hotels scheme. The government decision has cost Ovolo Hotels about 8,000 room nights of quarantine stays between December and March 2021. The company has launched a petition seeking support to be included on the quarantine list, and has received high-profile support including from the Australian Chamber of Commerce in Hong Kong.
Similarly, OZO Wesley Hong Kong, which also accommodated quarantine travellers earlier in the year, has been left out of the approved list of hotels. ONYX Hospitality Group, area general manager Hong Kong, Annie Shum, commented: “With many hotels already offering quarantine services, we are on the government’s reserve list and are ready to be at service at short notice.”
Yet another gripe arising from the scheme, according to another Ovolo spokesperson, is the government’s failure to abide by its earlier indication that only one hotel per group would be appointed.
It was pointed out that Magnificent Hotel Investments, which operates Best Westerns, Ramada and Grand City properties, has six hotels qualified for the programme. Far East Consortium, which operates Dorsett properties and the Lan Kwai Fong Hotel @ Kau U Fong, has four qualified hotels. Three of Regal Hotel Group’s properties are also qualified. Altogether, the three hotel groups supply 5,366 rooms to the programme, making up almost half of the total inventory.
Jhunjhnuwala also highlighted cases of price gauging by certain designated quarantine hotels. Local Chinese-language newspaper, Ming Pao, had on December 22 reported on such incidents, citing a family that had their booking rates revised from HK$12,180 prior to the announcement of the scheme, to HK$23,800 after the hotel had made it to the list.
With these many concerns around the selection and enforcement process, Jhunjhnuwala said a review was necessary.
Agoda has partnered with Singapore-headquartered “buy now, pay later” technology company Atome to offer flexible instalment payment options for accommodation bookings across the region.
The scheme has initially been made available in Singapore and Malaysia since December 21, and will be expanded to include eight additional markets in South-east Asia and Asia-Pacific this year.
Under the partnership, travellers can pay for their accommodation bookings on the Agoda website or mobile app in three interest-free instalments by selecting Atome at checkout.
Agoda vice president of commercial finance, Darren Makarem, said the new tie-up allows travellers “who might have previously found it inconvenient to pay for their booking in one lump sum to spread the costs over multiple payments”.
Launched in December 2019, Atome now partners over 2,000 online and offline retailers across verticals such as fashion, beauty, lifestyle, homeware and travel.