Tourism recovery must be built on sustainability: UNWTO

June 9, 2020

In conjunction with World Environment Day, the UNWTO-led One Planet Sustainable Tourism Programme has unveiled its new vision for global tourism – and that is the need to build towards a more sustainable and resilient recovery.

The One Planet Vision for the Responsible Recovery of the Tourism Sector builds on the UNWTO Global Guidelines to Restart Tourism, with the aim to emerge stronger and more sustainable from the Covid-19 crisis.

UNWTO has unveiled its vision for the future of tourism, where sustainability will become the new normal

The Vision is structured around six lines of action to guide responsible tourism recovery for people, planet and prosperity, namely, public health, social inclusion, biodiversity conservation, climate action, circular economy, and governance and finance.

UNWTO’s call to sustainability action come as several destinations across the world start to loosen restrictions on travel and mobility, and the tourism sector readies to relaunch.

“Sustainability must no longer be a niche part of tourism, but must be the new norm for every part of our sector. This is one of the central elements of our Global Guidelines to Restart Tourism. It is in our hands to transform tourism and emerging from Covid-19 becomes a turning point for sustainability,” said UNWTO secretary-general Zurab Pololikashvili.

The One Planet Vision calls for a more sustainable recovery for the tourism sector, which will boost its resilience to better tackle future crises. The Vision will support the development and implementation of recovery plans, which contribute to the Sustainable Development Goals (SDGs) and to the Paris Agreement.

At a time when governments and the private sector are embarking on the path to recovery, the time is right to keep advancing towards a more economically, social and environmentally sustainable tourism model, said UNWTO in a press statement.

Sabina Fluxà, vice-chairman and CEO of Iberostar Group, said that the hotel group “has responded by integrating sustainability in elevated safety protocols and further committing to our circular economy policies to ensure any new waste is managed properly”.

Global destinations get WTTC safety nod

By TTG Asia

June 9, 2020

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WTTC-gives-global-destinations-stamp-of-approval-for-safety-protocols — Key destinations recognised by the world’s first ever global safety and hygiene stamp

Major destinations around the world have been awarded the world’s first global safety and hygiene stamp, launched recently by the WTTC.

The endorsements hail from many major holiday destinations worldwide, including Bulgaria, Turkey, Jamaica, and Mauritius.

Key destinations recognised by the world’s first ever global safety and hygiene stamp

WTTC designed the Safe Travels stamp to boost consumer confidence by enabling travellers to identify destinations and businesses around the world which have adopted its health and hygiene global standardised protocols.

Gloria Guevara, WTTC president & CEO, said that the number of global destinations signing up to be certified by the WTTC Safe Travels stamp is “growing at a rapid pace”.

Countries that have adopted WTTC’s new protocols include Turkey, Bulgaria, Jamaica, Mauritius, Canada’s Ontario, Portugal, Saudi Arabia and the Mexican destinations of Baja California Sur and Yucatan.

Popular city destinations for holidaymakers which have also been given the WTTC Safe Travels stamp of approval include Barcelona, Cancun, Madrid and Seville.

Malaysia Airlines restarts international flights in July

By TTG Asia

June 9, 2020

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MAS — Malaysia Airlines plans to resume some of its international flights from July

Malaysia Airlines (MAS) will resume some of its international flights in July to facilitate essential inter-state travel, allowing the reunion of families who have been separated due to travel restrictions across the the world.

However, Malaysians are still not allowed to travel abroad, and the border remains closed.

Malaysia Airlines plans to resume some of its international flights from July

The national carrier will adjust its network capacity from time to time to ensure passenger demands are met, prior to normalising the schedule in October for both domestic and international destinations, MAS said in a press statement.

For the months of June and July, the airline has scheduled twice-weekly flights between Kuala Lumpur and Alor Setar, Johor Baru, Kota Baru, Langkawi, Terengganu, Labuan, Miri, Sandakan and Tawau. Flights from Kuala Lumpur to Kuantan, Bintulu and Sibu will be once a week.

As well, there will be thrice-weekly flights between Kuala Lumpur and Penang and Kuching in June, while flights between Kuala Lumpur and Kuching will be increased to five times a week in July.

From July, MAS will recommence twice-weekly services between Kuala Lumpur and Dhaka, Kathmandu, London, Osaka, Narita, Incheon, Hong Kong, Melbourne, Sydney, Perth, Denpasar, Phuket and Cambodia.

However, services between Kuala Lumpur and Melbourne will be twice-weekly until July 18, and once a week from July 19 to July 31. Services between Kuala Lumpur and Sydney will be twice-weekly until July 5, and once a week from July 6 to 31.

On the international front, in July, MAS will resume flights to Singapore, Bangkok, Surabaya, Mumbai, Chennai, Hyderabad, Taipei and Guangzhou, among other cities. Full flight schedules are available on the airline’s website.

Passengers are urged to perform online or mobile check-in to reduce interaction and avoid the queues at the airport, especially those travelling on domestic and regional routes.

A finer way to fly

By TTG Asia

June 9, 2020

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Air New Zealand
Air New Zealand (Air NZ) is working on making lie-flat beds in economy class a reality, in what would be an industry-first move to shake up the base offering of rival airlines. A launch isn’t confirmed but Air NZ appears to be in the final stages of developing the Economy Skynest after three years of research and testing at their Hangar 22 innovation centre in Auckland.

The Skynest accommodates six full-length bookable sleeping pods, each equipped with a full-sized pillow, sheets and blanket, ear plugs, privacy curtains and lighting designed for sleep. Other features are also being explored, including a separate reading light, a USB outlet for personal devices, and an improved ventilation outlet.

“The scale of the challenge in developing the Economy Skynest and working through its certification with the necessary regulators is immense, but we believe it is a prize worth chasing and one that we think has the potential to
be a game changer for the industry,” said a spokesperson
at Air NZ.

“If successful, we expect other airlines to explore licensing the Economy Skynest from us just as they have with the Economy Skycouch,” he continued, referring to another innovation introduced in 2010 that effectively combined three economy seats and turning them into a couch.

Air NZ also prides itself in providing gate-to-gate inflight entertainment, the ability to order food and drinks from passenger touchscreens, and its own AI chatbot Oscar which can answer commonly asked questions about flight, baggage, lounge and Airpoints.

But would the Skynest cannibalise Air NZ’s business class offering? The airline doesn’t think so. “The Economy Skynest is tailored for economy travellers and clearly differentiated from our business class offerings,” said the spokesperson.

“It is envisaged to be an added option for economy passengers where they will be able to book a session in the pod and still have their seats for the remaining portions of the flight. A clear pain point for economy travellers on longhaul flights is the inability to stretch out, and the development of the Economy Skynest is a direct response to that feedback,” he concluded. – Adelaine Ng

ANA
Japan’s largest airline is boosting efficiency, comfort and barrier-free facilities on the ground. ANA rolled out the range of new offerings in March to improve passenger experience.

For international departures at Haneda Airport Terminal 2, self-service baggage drops with capability in seven languages have been installed. Smart lanes that allow four customers to use baggage screening lanes simultaneously are in place to reduce security waiting times.

There is also wheelchair-accessible counter and streamlined check-in for passengers who need special assistance.

Four new lounges have been opened, three at Haneda and one at Narita International Airport.

At Haneda, the 360-pax ANA Suite Lounge focuses on privacy and relaxation as well as made-to-order F&B. Its reception area features a Japanese garden and bamboo forest, designed to promote a calming atmosphere. The Napping Area features six beds and five reclining chairs as well as a private area with booths fitted with televisions.

In the Live Kitchen, chefs serve omelets in the morning and nigiri sushi in the evening, while the Bar prepares coffee by day and more than 20 kinds of cocktails at night.

The 900-pax ANA Lounge also has a Live Kitchen and Bar as well as 24 booths offering semi-seclusion and a kids’ room.

Open from 04.30 to 12.30, the ANA Arrival Lounge has a footbath with an ocean view and 18 shower rooms, two of which are barrier-free. It also serves light meals and beverages.

At Narita, the ANA Lounge is located in Satellite 2, catering to passengers departing from farther gates or taking a bus to their aircraft.

“Ensuring that passengers can easily access one of ANA’s lounges no matter where they are located in the airport exemplifies ANA’s commitment to Japanese hospitality and passenger convenience,” commented Hideki Kunugi, executive vice president of ANA, on the lounge’s location. – Kathryn Wortley

Emirates
One of Emirates’ most recent innovations is its biometric path at Terminal 3 of the Dubai International Airport.

Utilising the latest biometric technology, comprising a mix of facial and iris recognition, Emirates passengers will be able to check in for their flight, complete immigration formalities, enter the Emirates Lounge, and board their flights. Notably, this is a world-first for passport control, where passengers are “cleared” by immigration authorities without human intervention or the need for a physical passport stamp.

This technology can be found at select check-in counters, at the Emirates Lounge in Concourse B for premium passengers, and at select boarding gates. For instance, customers flying from Dubai to any of its 12 destinations in the US can benefit from this service, reducing the time taken for identity checks.

The Dubai-headquartered airline also adopts a customer-centric, technology-enabled approach to enhance a passenger’s travel experience through big data, predictive analytics, artificial intelligence, crowd sourcing and collaboration.

In 2018, Emirates introduced 3D seat models on emirates.com, becoming the first airline to introduce web virtual reality (VR) technology on its digital platform. In 2019, Emirates introduced a new function on its app to allow customers to create bespoke playlists ahead of their flight and sync it to their seats once on board.

Big data is also used to better understand an individual passenger’s needs and predict what they would want for a personalised flight experience. For example, flight attendants have access to tablets onboard filled with data gleaned from its website and the 25 million members of the frequent flyer programme, Emirates Skywards.

Regardless of cabin class, all customers can look forward to savouring regionally-inspired and diet-specific meals, to enjoying over 4,500 channels of on-demand audio and visual entertainment in multiple languages on its inflight entertainment system, ice.

On the ground, Emirates’ airport lounges are an integral part of the airline’s service and product offering for its premium and loyal customers.

The Emirates First and Business Class lounge at Changi Airport, for example, was designed with a focus on comfort and quality, offering facilities such as LED TVs, showers, a business centre as well as a dedicated dining area which features an extensive menu of complimentary hot and cold dishes.

First and Business Class passengers can enjoy complimentary chauffeur service the airline offers in over 75 cities worldwide, for a seamless journey from start to finish. Those travelling with young children meanwhile, will benefit from dedicated and faster check-ins, complimentary strollers, family baggage allowance and early bag drop-off when they travel via Dubai International Airport. – Rachel AJ Lee

The changing face of Thai luxury travel

By Anne Somanas

June 9, 2020

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“The word luxury is out; we’ve reached the age where it’s very unfashionable to be pretentious.” These words, uttered by Leanne Reddie Hucker, director of sales & marketing, Rosewood Bangkok, at the Thailand Tourism Forum in Bangkok on January 20, days before Wuhan shut itself down in a bid to contain the coronavirus, have taken on new meaning in the pandemic’s wake as the crisis has upended the luxury travel industry, and spurred greater demand for more targeted and personalised services.

“There is no question we have entered a new era of defining the traveller. The one-size-fits-all approach is not going to work anymore,” Hucker added. “Memory creation, personalised experiences are in. The key to the heart of a new luxury consumer is personal relevance.”

Little did she know how much weight her words, spoken before a thousand hoteliers and travel industry professionals in a ballroom at the Intercontinental Bangkok, would carry in the following months, as no one could have predicted how the burgeoning Covid-19 crisis would instantly transform how the world defines luxury.

But the crisis offers hotels themselves a luxury – the luxury of time to rethink themselves and refine essences and brand messages, said Laurel Tuohy, deputy content director at Bangkok-based hospitality brand consultation agency QUO.

“Although it’s a scary and uncertain time, I think that, looked at with a certain optimism, high-end hotels and brands can use this down time well. It’s the perfect chance for brands to reassess who they are, how they’ve changed and what differentiates them from the rest,” she stated.

QUO is hosting a series of podcasts titled the Future of Travel, in which themes of simplicity, radical localism and less crowding have emerged, with the new luxury defined by authentic local experiences, integration of technology and wellbeing as core components of a hotel’s offer.

These are themes that many of Bangkok’s luxury hotels are focusing on as they prepare to relaunch. As part of its efforts in stepping up sanitation to tackle the new normal, Rosewood Bangkok’s Hucker said the hotel “will heighten existing health and safety techniques, policies, and procedures”.

Elsewhere, at the opulent 285-room Sindhorn Kempinski Hotel Bangkok, whose scheduled May opening has been pushed to 3Q2020, Aaishah Bohari, director of sales and marketing told TTG Asia: “The pandemic has changed the world’s views and expectations of travel which directly impacts the choices people will make when they can travel again.”

Speaking of the hotel’s 4,000m² of wellness facilities and carefully designed health-centric programmes, she added: “At our hotel, well-being is at the heart of every guest experience. Sindhorn Kempinski Hotel Bangkok is designed in every sense with comfort and well-being in mind. Health or wellness has taken centre stage and this allows us to enter an already crowded market with a point of differentiation that is relevant and important – more so now – to discerning travellers.”

“We are now planning a series of campaigns leading to our opening later this year, from beautiful performances specific to various service touchpoints that are unique to the Kempinski DNA to inclusive dining experiences where every culinary ethos is embraced.”

Localisation is a strong theme at another long-awaited luxury opening: Capella Bangkok, situated in cultural hotspot Charoenkrung overlooking the Chao Phraya river. It is now slated for an end-of-year opening due to the coronavirus crisis. “By promising ‘Crafted Moments, Steeped in Tradition’, our new-age urban resort maintains a great connection with the local community,” said John Blanco, its general manager, of the hotel’s plans to draw luxury travellers.

“The hotel’s Capella Culturist team will assist to craft original and inspiring experiences around the neighbourhood’s highlights for food, wellness and culture, allowing guests to discover their inner selves with energising alfresco activities during their stay.”

Other luxury properties are making use of the downtime to upskill their staff. At the Hotel Villa De Pranakorn – Sam Yod district’s first five-star boutique hotel which opened in February – for instance, kitchen staff have been undergoing cooking courses, while accountants are brushing up their computer software skills.

“As we are a new hotel, this break gives us time for staff training and making sure we have more knowledge and experience, so we will be ready when we are back in business,” shared Erik Lannge, general manager of the luxury heritage hotel.

At the Grand Hyatt Erawan Bangkok, one of the city’s most established luxury fortresses, a special taskforce has been set up to reimagine the new normal after Covid-19, and adapt its services and products to meet evolving guest needs.

“This (crisis) is going to require us to rethink and redesign the way we operate and accelerate the green and sustainable transformations initiated in the past,” said its general manager Edouard Demptos.

“Additional precautionary measures such as social distancing capacity in event venues and restaurants are being developed so that guests are assured that it’s safe to meet and stay at Grand Hyatt Erawan Bangkok. To communicate all our efforts, we are preparing a holistic marketing communications plan that is digitally-driven and customer-centric.”

Indonesian travel agencies, hotels ally to fight travel slump

By Kurniawan Ulung

June 8, 2020

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As the Indonesian government starts to ease social restrictions in some cities, including Jakarta, a Covid-19 epicentre in Indonesia, hotels are partnering with travel companies to lure locals to travel again.

In a recent webinar, the Association of Indonesian Tours and Travel Agencies (ASITA) and the Indonesian Hotels and Restaurant Association (IHRA) agreed to an MoU to craft deals to stimulate domestic demand.

Travel agencies and hoteliers in Indonesia will work hand in hand to promote domestic tourism, as the country begins easing lockdown; tourists visiting Pura Besakih temple in Bali, Indonesia pictured

Quoting various sources, Hariyadi Sukamdani, chairman of IHRA, reported at the webinar that Indonesia’s tourism industry employs around 13 million people and 90 per cent have been sent home without pay due to the Covid-19 outbreak.

It has also forced more than 2,000 hotels and 8,000 restaurants to shut down, with potential revenue loss of 30 trillion rupiah (US$2 billion) for hotels and 40 trillion rupiah for restaurants from January through April. Meanwhile, the airlines and tour operators have lost US$812 million and four trillion rupiah, respectively.

Tourism recovery hinged upon not only the people, but also the government, said Hariyadi, raising the question of whether the government will allocate state budget to lift the accommodation and meetings industries.

He said that IHRA was now striving to get a work capital amounting to 21.3 trillion rupiah for the upcoming six months, but claimed that it was hard to secure the government funding when there was zero demand. Hence, he added, there was the need to stimulate domestic demand.

According to Hariyadi, IHRA, which has 28,230 hotel members and 17,862 restaurant members, is ready to collaborate with ASITA to roll out competitive prices for domestic travellers.

Rusmiati, head of ASITA, said both sides stand to benefit greatly from the collaboration. “ASITA has 7,000 members. If (IHRA) works with ASITA, our members can help sell and promote (the good deals),” she said.

The MoU stipulates that IHRA members would come up with competitive pricing for ASITA members. To make the good deals work, IHRA and ASITA will bolster digital marketing and promotional efforts through social media and make working groups in their regional chapters as well as approach airlines to roll out competitively-priced airfares for domestic travellers.

I Ketut Ardana, managing director of Bali Sunshine and head of ASITA Bali Chapter, hoped that after IHRA and ASITA sign the MoU, that local traditional players would enjoy lower rates from hotels, compared to that of overseas agents and OTAs. He also expected hotels to stop giving contract rates directly to overseas agents.

Herman Muchtar, head of IHRA West Java chapter, agreed that providing special prices was a must, revealing that his members would offer discounts of up to 50 per cent during the West Java Extravaganza Sale that will be held from July 1 to August 30 to lure domestic tourists to visit West Java.

However, he opined that the current priority of IHRA was not to dole out good deals, but to urge the central government to give industry players economic stimulus packages to prevent the shutting down of more hotels. Low interest rate and moratorium on loan repayments were also needed.

Herman said that for some of the hotels in West Java, if they fail to receive stimulus from the government, they will likely only “last until July”.

APTCO eases air ticket changes for airlines

By TTG Asia

June 8, 2020

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ATPCO has unveiled a new automated Emergency Flexibility tool that will be adopted by the airline industry from this week to enable them to automatically update flight changes and refunds for issued tickets.

Created within the framework of IATA and A4A supply chain resolutions, and in collaboration with airlines, GDSs and channels, the automated solution enables airlines to process the mounting travel changes stemming from the Covid-19 travel restrictions.

ATPCO rolls out new tool to allow automated flight changes and refunds for previously-issued tickets

The tool will help airline companies by automatically applying new changes and refunds in previously-issued tickets to reflect new policies such as longer validity periods and change fee waivers, providing passengers with greater flexibility for future travel.

In addition to supporting the needs of airlines, GDSs, and agencies, Emergency Flexibility also ensures that travellers can better understand new policies that have been put in place and the associated benefits.

“In these exceptional circumstances, there has been an increasing need for a consistent approach to ticketing changes for all players and across different channels,” said Hervé Prezet, vice president of Industry & Expertise at Amadeus.

“The solution that ATPCO has been able to create in a matter of weeks, and that Amadeus is enabling, will provide consistency in automated servicing for travel agents and airlines which will benefit the entire ecosystem.”

To date, over 60 airlines, including Air France-KLM, American Airlines, British Airways, Delta Air Lines, and Singapore Airlines, have been involved with the Emergency Flexibility solution. Additionally, all major GDSs, including Amadeus, Sabre, Travelport, and Travelsky have planned to go live with it.

Sustainable tourism development comes into TAT’s focus

By TTG Asia

June 8, 2020

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Mr. Renaud Meyer, the UNDP Resident Representative in Thailand and Mr. Yuthasak Supasorn, TAT Governor

The Tourism Authority of Thailand (TAT) has teamed up with the United Nations Development Programme (UNDP) to formulate a long-term sustainable tourism strategy for the Thai tourism industry.

A Memorandum of Understanding (MoU) between TAT and the UNDP was signed on June 5, by UNDP resident representative in Thailand, Renaud Meyer, and TAT governor, Yuthasak Supasorn.

UNDP’s Renaud Meyer and TAT governor Yuthasak Supasorn ink deal to strengthen sustainable tourism development in Thailand

The MoU provides a platform for collaboration to integrate sustainability as a fundamental principle for tourism in Thailand and share Thailand’s experience in sustainable tourism with other countries, building on UNDP’s presence in 170 countries and territories around the world. It is in line with TAT’s over-arching objective to strengthen confidence in the Thai tourism industry with a series of Restore and Reform measures.

Yuthasak said in a press statement: “TAT has always realised the importance of promoting sustainable tourism. Collaborating with the UNDP to align this objective with the SDGs (Sustainable Development Goals) will go a long way towards enhancing the overall quality of the tourism products and services nationwide. It will allow us to broaden our knowledge base and incorporate experiences in sustainable tourism from different angles at the national and international levels.”

He noted that it was especially significant to be advancing this agenda in the year marking the 60th anniversary of TAT, a day that has also been designated as the start of the Decade of Action, set to accelerate progress towards the SDGs by all UN member states.

“Thailand is known all over the world for its superb tourism products and services, and the friendliness and hospitality of its people. In future, however, we will have to better balance quantity versus quality, and marketing versus management,” added Yuthasak.

Meyer said the pandemic had reminded the world of the “vulnerability” of the tourism sector and “the need to define a new normal for tourism that has to be based on sustainability, inclusion and ensuring more benefits for the local communities”.

Collaboration between the two will involve updating the King’s Wisdom to Sustainable Tourism project to include a socio-economic impact assessment and recovery plan for the tourism sector from Covid-19 as well as work to promote biodiversity-based tourism.

TAT is undertaking a range of social and environmental initiatives in different industry and economic sectors as part of the strategy to promote responsible tourism. It is also focusing on the promotion of 55 emerging destinations to decongest well-known tourist spots, create jobs in the rural areas and reduce income disparities.

Ecotourism to flourish in the Philippines under new normal

By Rosa Ocampo

June 8, 2020

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Ecotourism, an alternative to mass tourism, is poised to reign supreme in the Philippines’ travel industry’s transition to the new normal post-Covid-19, according to experts at the Ecotourism Philippines webinar.

Organised by Masungi Georeserve, Visita, Eco Explorations and Andrew Tan Center for Tourism of the Asian Institute of Management, the webinar was held to discuss the country’s tourism recovery post-Covid.

Pandemic has led to higher demand for ecotourism activities as travellers look to the great outdoors for safer travels; tourists and locals enjoying bamboo raft riding along Peñaranda River at Minalungao National Park

John Roberts, Minor Hotels group director of sustainability and conservation, said that ecotourism already has a headstart with its outdoor-centric activities, offering itineraries in safer, low-risk environments. As such, he reckoned that ecotourism will rebound faster than mass tourism.

“Hotels and other operations are going to have to look at what we do in ecotourism – how we manage to make money with fewer guests, greater space, more personalised service, and smaller groups,” Roberts pointed out.

“For ecotourism, the new normal is actually the old normal and that is, ecotourism is run in a very different way by and large from many of the other mass tourism products,” said Tony Charters, board member of the Asian Ecotourism Network and vice-chair of Global Ecotourism Network.

“In some ways, ecotourism is the leader in what the new normal is,” Charters said, adding that this sector is “adopting practices that are probably much safer from environmental and health points of view than many other forms of tourism”.

He further elaborated: “The experiential side of ecotourism is very important and often, you will find that many different ecotourism activities like walking treks and canoe treks (are carried out in) quite remote areas where the risk (of virus infection) is very, very low.”

Boboi Costas, who organised the Bojo Aloguinsan Ecotourism Association in Cebu and developed the Aloguinsan River Eco-cultural Tour, underscored the need to look at product development in the new normal.

He suggested that the ecotourism market should be segmented into different product types, for example, health and wellness, culinary, and bird watching, with the addition of more private activities and groups. He added that ecotourism providers should establish contacts with local health practitioners.

On the other hand, Roberts advised industry players to start learning and training in ecotourism as it’s poised to be the most popular vacation type in the new normal.

He added that they should also step up efforts to woo the domestic market which will recover ahead of the international market, noting that Minor Hotels is strongly eyeing the domestic market in Bangkok once the Golden Triangle opens up in July.

Furthermore, Roberts also suggested for ecotourism providers in South-east Asia to share inspirational stories created around their destinations on social media, retrain the digital community, and start differentiating themselves from mass tourism by building on the region’s trademark friendliness and hospitality.

Roberts cited the case of him and his community hosting Facebook live sessions for Minor Hotels’ Anantara Golden Triangle Elephant Camp, connecting with their audience and telling them about the camp’s work so they remain top of mind, and raising awareness of their donation drive.

For destinations, Charters advised pushing for quality and sustainability, and marketing their merits, which in the Philippines’ case, is friendliness.

With global discussions about Boracay’s rehabilitation, Charters said the key is to keep the project at the forefront, emphasising that the Philippines is doing things in a sustainable manner.

During the webinar, the panelists also debunked ecotourism operations as very small-scale and expensive, claiming that it can be carried out on a large-scale if done correctly, and that the element of scale only comes into relevance when sustainability or the experience is threatened.

Large-scale ecotourism spots included A$10 billion which generates A$10 billion (US$6.9 billion) annually to Australia’s economy; Queensland’s Skyrail Rainforest Cableway, a long cableway that can carry hundreds of thousands of people yearly to the top of the rainforest; and English Bay Resort on the world heritage site Fraser Bay.

Malaysia’s trade says US$8.2 billion stimulus “insufficient” to buoy tourism sector

By TTG Asia

June 8, 2020

0

Malaysia-KLCC — Malaysia's fresh US$8.2 billion stimulus not enough to buoy the tourism sector, which is only poised to recover from the pandemic in 2021, says trade

Tourism players in Malaysia have criticised the RM35 billion (US$8.2 billion) stimulus package unveiled on Friday to boost the economy reeling from the impact of Covid-19 as inadequate to sustain the hard-hit sector.

The package was announced by the prime minister, Muhyiddin Mohd Yassin, on Friday, and encompasses 40 initiatives. Out of the total, RM10 billion will be used as direct fiscal injections.

Malaysia’s fresh US$8.2 billion stimulus not enough to buoy the tourism sector, which is only poised to recover from the pandemic in 2021, says trade

Among initiatives of the short-term economic recovery plan unveiled on Friday included a three-month extension of the wage subsidy programme which allocates RM600 per worker. Employers in the tourism and other sectors who are not allowed to operate during the conditional movement control order can apply for the subsidy.

To assist the tourism sector, various tax incentives will be rolled out. For starters, a RM1 billion Penjana tourism financing (PTF) scheme will soon be made available to finance the transformation initiatives by SMEs in order to boost their competitive position in the new normal. Details of this scheme will be announced in July.

Other initiatives that will benefit the tourism and hospitality sector include a three-month extension of the deferment of tax instalment payments to December 31, 2020; a one-year exemption of tourism tax from July 1, 2020; and further exemption of service tax on lodging and accommodation services until June 2021.

As well, the government will grant individual income tax relief of up to RM1,000 for domestic travel expenses until December 31, 2021.

Although the trade welcomes the initiatives, they were quick to point out inadequacies and shortcomings of the plan.

The Malaysian Association of Tour and Travel Agents president, Tan Kok Liang, said: “We seek details on the mechanism of the PTF facility where we are looking at extremely low-interest rates or interest-free loans for digitalisation under the new norm where most procedures and sales are contactless, and are also done extensively through e-marketing platforms.

“Also, in order to remain competitive, investment in health and safety protocols is necessary to boost travellers’ confidence and simultaneously safeguard both employees and tourists.”

However, Tan pointed out that to date, for the allocation of the special relief facility fund under the previous economic stimulus package, there has been no drawing down of the fund yet for tourism players.

He added that he has received complaints from members that they were either disqualified for the fund or the allocation had been fully used up, urging the government to “monitor and supervise this funding facility to ensure fairness to all”.

He added that the tourism tax and service tax exemptions will inject a booster to the tourism industry in 2021 when demand picks up, with the reopening of regional and international borders.

Extension of income tax relief for tourism expenses will also “rejuvenate the local tourism industry”, but Tan said that “the conditions should include spouse and children”. “The eligibility should also be limited to tour packages bought from licensed travel agents and tour operators which include hotels, tours and transfers to ensure effectiveness,” he added.

On the extension for deferment of tax instalment for the tourism sector, Tan pointed out that it would be more helpful if taxes made payable for year of assessment 2019 was set off against current period losses.

“As tourism companies are in a tax loss position, they will also not be able to enjoy tax relief or incentives for Covid-19 testing and purchase of PPE and thermal scanners, and renovation of business premises. Government grants or subsidies would be more appropriate under these circumstances.”

He also said that the three-month extension of the wage subsidy programme has to be reviewed again as the tourism industry will only recover by year-end. He also hoped that the government will continue with the staff retention programme.

Malaysian Association of Hotels CEO, Yap Lip Seng, said in a press statement that while the industry welcomes the new initiatives and extension of the wage subsidy programme, he deemed the amount of RM600 for another three months as “insufficient” to sustain the industry.

Yap elaborated: “The hotel industry has long proposed a 50 per cent wage subsidy for employees with monthly pay of RM4,000 or below, and 30 per cent for those between RM4,000 to RM8,000.”

He added that the government needs to develop a concrete plan to stimulate both domestic and international travel, ahead of the country’s reopening of borders.

Tourism recovery must be built on sustainability: UNWTO

Global destinations get WTTC safety nod

Malaysia Airlines restarts international flights in July

A finer way to fly

The changing face of Thai luxury travel

Indonesian travel agencies, hotels ally to fight travel slump

APTCO eases air ticket changes for airlines

Sustainable tourism development comes into TAT’s focus

Ecotourism to flourish in the Philippines under new normal

Malaysia’s trade says US$8.2 billion stimulus “insufficient” to buoy tourism sector

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Knai Bang Chatt by Kep West

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