A recovery dream yet fulfilled
Early predictions by industry observers that meaningful travel would come into favour as tourism recovers, inspired by reflections on life and responsibility to Mother Nature during the lockdown, are turning out to be a dream that is yet to be entirely fulfilled.
In the third article by TTG Asia Media for the PATA Crisis Resource Center, TTG Asia reporters hear from Asian travel and tourism professionals that domestic travel appetite today is being whetted by self-drive opportunities, accessible destinations, island resorts in particular, and attractive promotions. Desire for meaningful travel to support responsible tourism development has been weaker than predicted.
While sustainable tourism development may take a backseat to economic recovery for some industry stakeholders struggling with the current business fallout, leading travel and tourism organisations urge destinations and suppliers to look ahead and make the effort for a sustainable tourism reset.
Will sustainability really be the new tourism? is now available at the PATA Crisis Resource Center.
Singapore, Hong Kong top APAC countries in desire to travel more
Travel remains fundamental for many, and has taken on an even greater meaning in our lives due to the pandemic, according to insights from Booking.com’s annual global survey, The Future of Travel.
Booking.com has identified six predictions and trends for the year ahead, shining a light on the pandemic’s impact on travel habits and perspectives. In total, 20,934 respondents across 28 countries were polled globally.
Wandermust
Over half of (55%) Singapore travellers responded they won’t be comfortable travelling until an effective coronavirus vaccine or treatment is in place, echoing sentiments by Singapore’s transport minister, Ong Ye Kung, who recently stressed the importance of developing a widely available and effective vaccine to help countries open their borders.
However, amid new waves of travel hiatuses, restrictions and continued uncertainty, our innate human desire to travel has not dampened.
During recent lockdowns, two-thirds (63%) of Singapore travellers reported being excited about travelling again. Three-quarters (76%) also noted that they are especially appreciative of travel and wouldn’t take it for granted moving forward, vastly exceeding the global average of 61%. Our time at home has made us crave the world outside more than ever, with over half (53%) of Singapore respondents asserting a heightened desire to see even more of the world.
Notably, Singapore (41%) and Hong Kong (55%) are among the top countries in Asia-Pacific with the most respondents who plan to travel more in the future to make up for lost time in 2020, and this could be due to how both markets have traditionally been more reliant on international travel, given their small size and well-connected geographical location as key aviation hubs for the region.
With this, travel companies should get creative in 2021 with new itineraries and recommendations designed to capture the imaginations of travellers who missed out on trips in 2020, making their next trip more memorable and meaningful.
Vital Value
The economic impact of the coronavirus will inevitably see people demand more value for their bookings in the future. Seventy per cent of Singapore travellers will be more price-conscious when it comes to planning a trip in the future, above the global average of 62%. Fifty-nine per cent of Singaporeans are also more likely to hunt down promotions and savings – behaviours that Booking.com predicts will last years.
But the value Singapore consumers expect will go beyond price tags, with three-quarters (76%) stating they want travel booking platforms to increase their transparency about cancellation policies, refund processes and trip insurance options. Furthermore, 53% of Singapore respondents consider refundable accommodation a must-have for their next trip, exceeding the global average of 46%. Singapore travellers (42%) also value the flexibility to change dates without being charged, more than any other country in the Asia-Pacific region.
While value is crucial, Singapore travellers are also keen to support the industry in its recovery (71%), and most South-east Asian nations exceed the global average in this regard.
Thailand travellers overwhelmingly (82%) want to see how their money is going back into the local economy, exceeding the global average of 55%, and they are especially keen to support their travel destinations’ recovery efforts (84%). As the “Land of Smiles” has long been a popular destination among travellers, and now severely impacted by the lack of tourists in 2020, this may be a reason for their desire to contribute to the local economy and recovery efforts in future travel.
Overall, the industry will need to come together to respond inventively to offer deeper value, better choices, increased flexibility and transparency, as well as more thoughtful experiences for tomorrow’s travellers as they scrutinise spend in 2021 and beyond.
Safety Cleans Up
Echoing global trends, safety will be at the forefront of travellers’ minds moving forward, with 82% of Singapore travellers stating they will take more precautions when travelling in the future due to the coronavirus, slightly exceeding the global average of 79%. Governments, travel associations and providers will have to work cohesively to set consistent standards to help keep travellers safe, and with expectations heightened, some destinations and businesses will need to work harder to regain travellers’ trust.
Sixty-two per cent of Singapore travellers will avoid certain destinations, and 73% expect tourist attractions to adapt to allow for social distancing. At the same time, 73% will only book a particular accommodation if it’s clear what health and hygiene policies it has in place, with three quarters (75%) favouring accommodations that have antibacterial and sanitising products.
In the short-term, there will also be a change in transport preference and provisions, with almost half of global respondents (46%) opting to avoid public transport for fear of contracting the coronavirus. Contrasting global trends, only 18% of Singapore travellers surveyed will avoid public transport for fear of contracting the coronavirus. This reflects a degree of trust and safety that Singaporeans have in public infrastructure, as Singapore continues to handle the pandemic well, with the country’s fatality rate being one of the lowest in the world and new infections in the community kept down.
The ‘new normal’ will also see travellers prioritise and adhere to increased health and safety measures, with many becoming second nature sooner than we think. Just as we have become accustomed to travelling without liquids in our carry-on luggage and removing shoes to go through airport security, more than two-thirds of Singapore respondents (69%) will accept travelling to destinations that have health spot checks on arrival and 64% will accept wearing a mask in public. However, quarantine measures still remain the biggest deterrent, with far fewer (30%) Singapore travellers willing to accept these in order to travel to a particular destination.
Impact Awakening
With nearly half (47%) of Singapore travellers wanting to travel more sustainably in the future, we expect to see a more eco-conscious mindset in 2021 and beyond, as the coronavirus has amped people’s awareness about their impact on the environment and local communities.
More than two-thirds (73%) expect the travel industry to offer more sustainable travel options and travellers will consequently visit alternative destinations in a bid to avoid travelling during peak season (59%) and overcrowding (50%). Some 67% will also stay away from crowded tourist attractions, indicating that destinations will need to adopt new, smart crowd management measures to appease travellers visiting their country.
Furthermore, more Singapore travellers (47%) said they wanted to travel more sustainably, than those who noted they wanted to travel more in the future to make up for lost time (41%). Travellers in Thailand (68%) and Vietnam (59%) echoed the same sentiment, exceeding the global average of 53%. Singapore travellers believe that the industry must adapt to this sustainable mindset for the long-term by offering attractive off-season travel packages (51%) and proposing alternative destinations to prevent overcrowding (38%).
However, although most South-east Asia respondents noted the impact of Covid-19 had inspired them to consider reducing waste and/or recycling their plastic when travelling, they are still less willing to pay for carbon offsetting or avoid a destination because travelling there would be environmentally taxing.
Bye Bye 9-to-5
Working remotely has irreversibly entered the mainstream during the pandemic with the knock-on effect that people will look to take longer trips in the future that more effectively combine work and pleasure. No longer confined to five days a week in an office and desperate for a change of scene from home, we’ll see a significant rise in the “Workcation”, with travellers looking to extend their vacation experience in new locales by staying an extra week or two to work remotely – or conversely factoring holiday around a stint of remote working. Expect laptops to become even more of a mainstay in luggage than ever before.
Half (50%) of Singapore travellers have already considered booking somewhere to stay in order to work from a different destination, exceeding the global average of 37%. This comes as little surprise as Singapore workers are known to be among the hardest-working in the world, according to the number of hours clocked. Some 40% would also be willing to travel to a destination that forces them to self-isolate on arrival if they can work remotely while in quarantine.
While companies will undoubtedly reassess their approach to business travel in the future, workers will continue to maximise the trips they do take, with over half of Singapore travellers (59%) saying they would take the opportunity to extend any business trips to also enjoy leisure time at the destination. In contrast, Japan travellers are the least likely (29%) in the world to do so, and well below the global average of 52%.
Overall trends highlight a need for travel platforms and accommodations to prioritise showcasing home office facilities and Wi-Fi speed in an attempt to attract this new wave of digital nomads. Likewise, the world of corporate travel will see increasing demand for privacy, cleanliness and longer stays among those travelling for business, requiring alternative accommodations to seriously up their ‘work-friendly’ game.
Simple Pleasures
As we learn to live with the stressful consequences of the pandemic, travellers will be keen to embrace a new and stripped-back way of experiencing the world. So much time spent in our own homes with our loved ones has given birth to adjusted priorities and a desire to enjoy more of our natural resources.
Use of simple pleasure-related endorsements such as hiking (94%), clean air (50%), nature (44%) and relaxation (33%) on Booking.com have increased globally since the start of the pandemic, while research shows that over two-thirds of Singapore travellers (71%) will look to appreciate more simple experiences such as spending time outdoors or with the family while on vacation.
Taiwan, Hong Kong, and Thailand travellers are the most likely to seek out more rural, off-the-beaten-track experiences to immerse themselves in the outdoors than any other Asia-Pacific country, as well as the UK and the US. Relaxing trips will also be high on the travel agenda in the ‘new normal’, with more than half of global respondents (51%) saying it was their preferred type of trip, followed by beach breaks (40%) and city trips (29%).
Spain Tourism Board names new head of SE Asia, Australia and New Zealand
Spain Tourism Board has appointed Monica Sanchez to head its office in Singapore as the new director in charge of South-east Asia, Australia, and New Zealand.
Taking the reins in this time of pandemic, Sanchez shares that her focus at the moment is to maintain Spain’s positioning as one of the most popular tourist destinations worldwide, in addition to highlighting the measures taken by the Spanish tourism sector to adapt to the new normal.
She also aims to support and work closely with operators, agents and airlines within the market – all of whom play a key role in the gradual recovery of the tourism industry from the Covid-19 crisis.
With more than 25 years of experience in tourism, branding, market research and public management, Sanchez has held various leadership and cabinet level positions within the tourism board of Spain – both in America as well as in the Ministry of Industry, Trade and Tourism’s headquarters in Madrid.
She has also served as chief of staff for successive directors general of the Spanish government’s official tourism organisation, Turespaña, as well as for the secretary general for tourism.
Singapore Airlines resumes New York service
Singapore Airlines will return to New York, the US, on November 9 with thrice-weekly non-stop flights between Singapore Changi Airport and John F. Kennedy International Airport.
The service will be supported by the growing number of transfer passengers who can now transit via Singapore Changi Airport.
An Airbus A350-900 long-range aircraft will be utilised, configured with 42 Business Class, 24 Premium Economy Class and 187 Economy Class seats.
Singapore Airlines said it would continue to review its operations to the US, and assess demand for air travel amid the ongoing pandemic, before deciding whether to reinstate services to other points in the country.
Destination Capital, KTB Securities launch equity trust for hotel investment
Destination Capital and Thailand’s KTB Securities (KTBST SEC) have launched DESCAP 1 Private Equity Trust, which will aim to raise 2.5 billion baht (US$79.9 million) and offer an alternative asset class for investor portfolios.
The trust will acquire freehold four-star hotels of 150 to 250 rooms in prime destinations of Bangkok, Pattaya, Hua Hin and Phuket, which are viewed as destinations expected to rebound the quickest after Covid-19.
The investment strategy is to acquire urban and resort hotels, and then renovate, reposition, and rebrand them to increase their value in order to generate meaningful returns to investors.
Utilising the experience of Destination Group with its 24-year track record in Thailand of buying, managing, and selling hotels, particularly during times of distress, DESCAP1 targets a 15 per cent per annum returns with a five- to seven-year holding period.
James A Kaplan, CEO of Destination Capital, said in a statement: “We are pleased to play such an important role to support the rejuvenation of the Thai travel and tourism industry with the announcement of DESCAP 1 Private Equity Trust. This trust will invest in strategic hospitality assets to facilitate re-employment and hotel re-openings to re-launch Thailand as a preferred global travel destination. This could not have been done without the support of our Trustee (MFC Asset Management) and Trust Manager (KTBST SEC).”
RIU steps up CSR investments
RIU Hotels’ Sustainability Report has identified 1.2 million euros (US$1.4 million) in social and environmental investments in 2019, up 41.2 per cent on 2018.
The projects abided by a social innovation model, focusing on child protection, and the well-being of the local community. The hotel group has also taken a pathway towards a more environmentally responsible hospitality model.
Some of the outcomes of RIU’s work include the establishment of two playrooms in Quintana Roos, Mexico where children can acquire cognitive skills; reforestation of 450 trees and plants with Plant-for-the-Planet on the Canary Islands; and significant reduction in single-use plastics, consumption per guest per night and CO2 emissions across its properties.
CEO Carmen Riu noted that the company “has left behind charity to achieve a mature identity that is bound up with corporate social responsibility”.
The company expressed that “this experience has been vital in tackling the new social situation caused by Covid-19 in relation to CSR, because many projects running this year have been affected by the crisis, and the actions they involve have had to adapt to a new social reality”.
Some of the changes that had to be made this year included conversion of RIU’s face-to-face therapy for minors at risk of social exclusion and their families in Madrid to virtual retreats.
As a result of pandemic disruptions, RIU Hotels expects social and environmental investments to be lower this year compared with previous years. For 2020, it intends to focus on actions aimed at relieving the impact of Covid-19 on the destinations where its hotels are located.
Thailand welcomes first batch of foreign tourists
A group of 41 tourists from Shanghai will be the first foreign visitors to set foot in Thailand this evening since travel and border restrictions were imposed as a result of the Covid-19 pandemic.
Bearing a special tourist visa issued by the Thai government to individuals from countries deemed to be of low Covid-19 risks, these tourists will arrive at Bangkok’s Suvarnabhumi International Airport at about 17.00 today, according to Yutthasak Supasorn, governor of the Tourism Authority of Thailand.
Their visa will grant them entry to Thailand for up to 90 days.
Thai PBS World also reported that a second group of 100 visitors are due to arrive from China’s Guangdong province on Oct 26.
This evening’s arrival has been delayed for a month due to concerns by public health officials over a potential second wave of Covid-19 infections.
The Chinese tourists will undergo a Covid-19 screening upon arrival and remain in quarantine for 14 days, before they are allowed to proceed on their travel itinerary. They will be tracked by a tracing app on their smartphones.
While in quarantine, they will be given their first swab test on the third to fifth day after arrival, while the second test will be conducted on the 11th to 14th day.
Rally Investco to manage Bedsonline in Indonesia
Bedsonline has signed Rally Investco up as its General Sales Agent (GSA) in Indonesia, allowing the latter to establish a rewards programme for travel agents as well as a dedicated help desk for the locals.
The strategic partnership will see Indonesian travel agencies continuing to book their accommodation, activities, transfers and car-hire via bedsonline.com, while taking advantage of Galileo Club, a collaboration between Rally Investco and Galileo Indonesia, to earn points from their bookings – including flight bookings on the Galileo GDS.
Rally Investco will also set up a help desk in the country, operated in Bahasa Indonesia. This will include local phone lines which will help reduce costs for Bedsonline’s customers.
Hui-Wan Chua, regional sales director, APAC, Bedsonline, said the Indonesian market “is a top priority for us”.
“To excel in the ever-changing travel landscape, our Indonesian customers deserve a partner that is much more than just a booking engine. Therefore, we have chosen Rally Investco – who are collaborating with Galileo Indonesia – to operate our local Bedsonline business going forward, given their extensive local market knowledge, presence and relationships,” Chua added.
Raymond Setokusumo, president director, Galileo Indonesia, said: “We believe this partnership will bring a new extended variety of services and programs for all Bedsonline’s clients in Indonesia.”
Phuket establishes Green Day to inspire island clean-up
Phuket Hotels Association’s Environmental & Sustainability Working Group is encouraging locals and tourists to value the beauty of Phuket’s well-loved beaches and surrounding seas through Phuket Green Day, a clean-up event on October 21, 2020.
The Phuket Green Day initiative, which is backed by Phuket Hotels for Islands Sustaining Tourism (PHIST) and endorsed by the local government, Tourism Authority of Thailand, US Embassy Bangkok, Australia Consulate in Phuket and member hotels, will see thousands of volunteers across the island unite to fight ocean and land pollution.
Supporting organisers have sponsored equipment and supplies for volunteers.
Boon Yongsakul, chairman of Boat Pattana Co., said the clean-up focuses on three main areas: Phuket’s branding, local education and environmental protection.
“By cleaning up our beaches and land, we are promoting Phuket as a global beach destination brand. We are also educating local communities, tourists and island businesses on the need to take care of the island’s natural assets, and we are preserving the environmental health of the ocean,” added Boon.
Phuket Green Day will officially open at Karon Beach, and there will be various cleaning zone meeting points.
Radisson Hotel Group (RHG) has launched a new brand, Radisson Individuals, giving independent hotels and small chains the opportunity to join the global RHG platform.
Member hotels can expect to benefit from international exposure, while retaining their own styles and identities. Radisson Individuals also allows hotels to nurture customer confidence, and access a wider audience through multiple distribution channels and a global sales structure.
By joining the brand, hotels can also benefit from Radisson’s contracting power and economies of scale, as well as leverage the group’s integrated IT and revenue platforms, loyalty programme, and operational systems to increase profit margins.
RHG CEO Federico J. González said: “We created Radisson Individuals in response to the evolving demands of the modern market. Joining Radisson Individuals is an ideal first step for individual hotels with strong service scores who wish to remain independent or may be considering transitioning to one of our successful core brands in the future.
“The new brand is also a strong proposition for local and regional hotel brands seeking to explore additional distribution channels and co-branding options.”
Interested hotels will have to undergo a compliance assessment focusing on four key parameters: health and safety compliance, online rating, fire compliance, and their ability to connect to the group’s main operating systems. Member hotels will also receive training on the group’s “Yes I Can!” service philosophy.