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Domestic travel to lead revival in tourism, hospitality sectors

The tourism and hospitality sectors, which depend on free movement of people, were the first to be affected by the travel restrictions, first on international and then domestic travel, followed by a lockdown across the country in late March. Some expect the sectors to bounce back once the lockdown ends and domestic travel restrictions ease, even with restrictions on international travel. This is because domestic travel has a higher share in the Indian tourism and hospitality industry compared to foreign arrivals. The hotel industry in India relies more on domestic demand compared to neighbouring countries such as Sri Lanka or Maldives. In other words, domestic demand is adequate to keep the sectors in business. According to government data, domestic tourist visits to all states and Union territories in India in 2018 were at over 1.8 bln compared to inbound international tourist arrivals at 17.4 mln. In 2018-19 (Apr-Mar), airlines carried 140 mln domestic passengers compared with 63.9 mln international passengers, while the railways carried 8.4 bln passengers during the same period. In February and March, when international flights to India were progressively restricted, the sector still showed buoyancy as domestic travel was strong. In a recent webinar, data analytics company STR said hotel occupancy fell 12% in the first week of March, 43% in the second week, and 67% in the third week, when all domestic flights were stopped. "Indian hospitality industry was comparatively less impacted in the earlier months of …(2020) because of the dominance of domestic travellers in the overall mix," the company said. In the last nine days of March, occupancies fell more than 80%. Tourism and hotel occupancy took a dive in cities such as Mumbai, Bengaluru, Hyderabad and Goa, as these are dependent on international travellers. Once travel restarts, it is likely to be mainly essential travel for work or family reasons, medical factors, and travel by those stranded at various places due to the lockdown. "I expect Mumbai to bounce back fast," said Subhadeep Datta, general manager at Goldfinch Hotels, which caters to business travellers. He expects domestic business travel to pick up three to six months after the lockdown ends. Tourism contributes 9% to the country's GDP and, directly and indirectly, employs 50 mln people. The government is also seeking ways and means to facilitate travel. In a release on Apr 10, the Ministry of Tourism said it would come out with guidelines soon for tourists to travel. CHALLENGES Despite the opportunities, the challenges are daunting. When flights resume, social distancing norms have to be followed and it is unclear how this will be carried out or how feasible it is. The government has indicated nothing about train services, long-distance or suburban, where things will be even more difficult. Domestic airlines, including Air India, were preparing to resume flights from May 4, after the current lockdown ends, and were taking advance bookings. That is, until the government stopped them, saying it was not certain if flights would be permitted from that date. SpiceJet chief Ajay Singh told a business channel on Monday that he and other airlines hoped to start flying from mid-May. Hotels, too, are preparing for changes in the way people will travel and stay. Check-in formalities might be automated to ensure no crowding in hotel lobbies. Anirban Chakraborty, managing director and chief executive officer of Tourism Finance Corp, told Cogencis in an interview recently that while he expected domestic travel to boost tourism, there were several obstacles. "One is social distancing, second is psychological impact, third is corporate discretionary spending will come down because a lot of people who travel, won't do so for six-nine months till things stabilise. Fourth, corporate seminars and nights won't happen as people will curtail costs as everybody is under pressure." June is the earliest when hoteliers expect rooms to start filling up slowly "It will take two-three months for it to take effect," said Jinesh Rajpara, senior analyst at India Ratings. He pointed out that the tourism sector would lose the summer months, when most domestic tourists plan their holidays. The next opportunity is the festival season that starts in October. Leisure travel looks distant due to cautiousness among domestic and overseas travellers. Uncertainty on income will also play a critical role. "Even if they want to travel, they should have the spending capacity. So, we expect leisure travel to resume by the end of this year to early next year," Rajpara said. Some companies have laid off employees, sent them on unpaid leave, or cut salaries in order to conserve cash. High-end hotels may see lower occupancy compared to mid-level hotels, which have the potential to fill up faster. Hotels in tier-II and tier-III cities, which depend on casual and contract labour, will find it hard to service travellers as migrant labourers are missing. Average room rates could see moderation and the average revenue per available room till June is expected to be 65-70% lower for 4-star and above hotels, and down 50-60% for mid-tier and below ones, Rajpara said. End

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Bali reopens for business: Holiday island plans to invite tourists to return in MAY

The resort island of Bali could reopen for holidaymakers next month as Indonesia tries to forge a path out of the coronavirus pandemic. Flights to Indonesia were suspended on April 2 as nations around the world closed their borders in an attempt to curb the rate of COVID-19 infections. Tourism businesses in Bali were among the hardest hit by the travel restrictions with more than 46,000 employees being furloughed last week. But the island's tourism boss is optimistic that the resort could open its doors to tourists again in May if the Balinese people are 'disciplined' about social distancing. 'The key is no more local transmissions. When we achieve that, not even until June, even May we can start welcoming Chinese tourists,' head of the Tourism Agency in Bali Putu Astawa told local publication Tribun on Thursday. While the Indonesian government was adamant it would focus on eliminating the virus before opening the borders, tourists from countries recovering from the outbreak will be the targets of tourism campaigns. Those countries include China, which recorded 12 new cases of the virus as of Tuesday morning, South Korea which had 13 cases, and Japan which had none. Indonesian president Joko Widodo is confident the pandemic will be resolved by the end of the year and expects tourism to flourish in 2021. 'Everyone is yearning to go out, people want to enjoy the beauty of tourism and so this is the optimism that we must continue to build on,' he said last week, according to Balinese publication Coconuts. But workers in Bali have been suffering financial losses in the face of the coronavirus economic downturn since last month - before flight restrictions were implemented. Eerie photos of Ngurah Rai International Airport emerged on March 12 of the once-bustling international airport almost devoid of people. The photos were posted on social media by a local tour guide accompanied by the caption: 'Bali Airport today at 9.30am. Very Empty. Bali very sad and hard life.' Despite Balinese tourism officials claiming the island could be back open for business next month, travel bans for Australians are expected to extend to 2021. Federal Tourism Minister Simon Birmingham told ABC's News Breakfast last week: 'I wouldn't put any guarantees that you could undertake that overseas trip in December.' 'This is a time where, unfortunately, people can't undertake holidays and they won't be able to go overseas for quite some time to come.'

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Trains and flights unlikely to resume after lockdown ends

Indians might have to wait longer after the lockdown to reach their desired destinations. Rail and air travel are unlikely to resume after lockdown 2.0 ends on May 3. Social distancing concerns might continue much longer for the travel industry. All the airlines have been told not to take bookings after May 3, sources said. On Saturday, a Group of Ministers attended a meeting at Defence Minister Rajnath Singh's residence. After the meeting these ministers expressed concern over resuming trains and flights. The government also clarified that no decision has been taken to allow domestic or international flights. The clarification came within hours after Air India posted on its website regarding bookings. Air India said that it is taking bookings for travel from May 4 on some domestic routes and from June 1 for international routes. "The Ministry of Civil Aviation clarifies that so far no decision has been taken to open any operations. Airlines are advised to wait until a decision is taken by the Government," Civil Aviation Minister Hardeep Singh Puri tweeted. As the Covid-19 cases reach more than 15,000, with more than 500 fatalities, restart for travel industry will be a challenge Air traffic and passenger trains were suspended last month to curb the spread of COVID-19. The aviation sector has been hit hard by the coronavirus pandemic. Airlines have either slashed salaries or asked employees to go on a sabbatical without pay. Lakhs of indirect workers of railways and airlines also face the wrath of lockdown. The central government will review the reports from health ministry regarding Covid-19 numbers before it decides to open rail and air travel Before starting the rail and air services, government will have to prepare for infection free travel. The railways and airlines being mass services might be a threat to contain the virus spread. So lockdown may end but your wait to travel by trains and flights might not end with the lockdown.

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Tourism industry should get 6 months relief in debt repayment, exemption in GST : ICC

The tourism industry, which contributes 9.2 percent to India’s GDP and employs 2.67 crore people, is near annihilation by Coronavirus today. A major industry association for the tourism and hospitality sector has demanded a six-month relief in debt repayment, one-year exemption in GST from the government and also release of a special fund for the sector. The Confederation of Commerce of India (ICC) has said that most tourism companies affected by the corona virus epidemic need interim relief from the government for at least six months in EMIs, taxes and staff salaries. ICC Director General Rajiv Singh said, “Due to the corona virus epidemic, bookings for the entire year have decreased by 18-20 percent in 2020, while the average daily fare has come down by 12-14 percent. Relief measures The industry association has sought a series of reliefs from the central government, including extending the loan repayment proposal by RBI from three months to six months and complete exemption in GST for one year for tourism, travel and hospitality sectors. “The ICC has suggested the creation of a Travel and Tourism Sustainability Fund, which transfers direct benefits to prevent financial loss and employment cuts,” the ICC said in a statement. The industry association said in the statement that the travel and tourism sector contributed 9.2 percent to India’s GDP in 2018 and provided 2.67 crore jobs that comes to 8.1% of India’s total employment. Indian tourism worst hit According to CII, Indian tourism has been worst hit by coronavirus in all geographical segments. With Indian government cancelling all visas and people cancelling all their pre bookings, CII said that the tourism sector “will be worse hit”. Also FTA(foreign tourist arrival) in march dropped 9.3% month -on -month basis and 7% year-on-year basis. World tourism also affected If the pandemic continues for more months, the World Travel and Tourism Council, the trade group representing major global travel companies, projects a global loss of 75 million jobs and $2.1 trillion in revenue. Number of corona virus patients reached 17,265 in the country, 543 deaths so far For the tourism industry summer is a propitious and profit making season. However, with the cases crossing 24lakh worldwide with 6 lakh above recoveries and 1 lakh above deaths, darkness will still hover upon the tourism industry. In India the total number of cases have reached 17,265 with 543 deaths. The number of people recovered has reached 2,547. According to the data released by the health ministry, 1324 people have tested positive in the last 24 hours.

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Goa to seek Centre's help to revive tourism industry

The Goa tourism department will seek financial help from the Centre for the industry stakeholders to overcome the crisis they are facing due to the coronavirus outbreak. State Tourism Minister Manohar Ajgaonkar, in an interview to PTI, said his department has written to Chief Minister Pramod Sawant, seeking help for the tourism industry from the Prime Minister's relief fund for COVID-19. "How much fund is required for it has to be decided by a panel of experts. We have formed a committee headed by state finance secretary Daulat Hawaldar to study it. We will have to work out a plan to get out of this crisis," he said. Goa already has a tourism policy. The state wants to introduce a financial package for hoteliers, vendors, shack owners and others dependent on tourism so that they can restart their business, he said. The minister further said the state government should not allow any tourists in the coastal state after the lockdown is lifted, unless they are certified negative for coronavirus. This practice should continue for next two years till the situation normalises at the global level, he said. Ajgaonkar said the coronavirus outbreak happened at a time when the coastal state had managed to get back its tourism industry on track after the global slump. "But, because of COVID-19, we will again have to start from zero. Till all airports and other routes are opened tourism cannot re-start in the state, he said. Nearly 80 lakh tourists visit Goa every year, he claimed, adding that till the situation does not normalise at the national level, the coastal state's borders will continue to remain sealed. He said the lockdown has come as a "blessing in disguise" for law enforcement agencies which can now work on removing all evils, including the menace of drugs in the tourism sector, before the industry resumes. The minister said the state tourism department had participated in a travel mart in China shortly before the coronavirus outbreak. We were expecting tourists here from China. But we are thankful it did not happen. We want tourists to come to Goa, but not from COVID-19 affected places," he said. "We should not allow them until they are certified coronavirus-free. And checking of tourists should continue for next two years, he added. PTI RPS GK GK.

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Asia’s Travel Players Look Beyond Just Virtual Tours to Jumpstart Demand for After Lockdown

Some three months since the coronavirus outbreak struck the region, Asia’s travel players are adjusting to a new normal and planning possible business strategies to ride out the current health crisis for the eventual recovery. Virtual tours have rapidly surfaced as one of the hottest digital commodities for the global travel and hospitality industry as the coronavirus outbreak grounds airplanes worldwide and saps travel demand worldwide. Eager to reach out a potential global audience with millions of people now isolated in their own homes, many travel brands from major hospitality chains to destination marketing organizations have also jumped onto the virtual experiences bandwagon. A NEW VIRTUAL REALITY? Viator has launched the #RoamFromHome project, which offers a mixture of more than 100 free and paid-for virtual experiences conducted by tour guides and hosts. Airbnb, in a similar move, has brought more than 50 experiences online, spanning meditation classes with Buddhist monks to virtual bike tours with an Olympic gold medalist. But whether such virtual experiences are able to capture traveler interest — not to mention getting enough paid sign-ups to become a fresh revenue generator — in an age of vast streaming content remains a major question for Ben Dolgoff, co-founder of Bali-based ForeverVacation. “How do you make the investment made worthwhile?” he questioned during a webinar hosted by Arival earlier this week. “We [tour operators] are in hibernation now and just surviving, as no form of marketing right now can get physical tours booked.” The sentiment is shared by Amornched Jinda-apiraksa, CEO and co-founder of Thailand’s biggest online travel activity marketplace TakeMeTour, who believes virtual tours are probably just but a marketing and branding tool for travel brands amid the global lockdown. “I would rather devote efforts to seeking out other revenue streams,” he said. “I’m not pushing to create online experiences or virtual tours as I don’t see them being a revenue generator in the long run.” ADVANCE PURCHASE, FLEXIBLE DEALS Great-value deals and packages, based on general industry sentiment in Asia, are much more likely to tempt travelers to pre-purchase travel as the region waits out the health crisis. Trip.com Group CEO Jane Sun, in an interview with Skift earlier this month, revealed that the company is finding new opportunities in advance purchases as China emerges from the coronavirus epidemic. With “very good deals” from attractions, hotels and travel suppliers, customers would be enticed to purchase the trips in advance and provide much-needed cash flow for the suppliers, Sun noted. Discounting is a tactic that Arigato Japan Food Tours General Manager and Partner Lauren Shannon is deploying to stoke travel interest and bookings for Japan next year, especially as Tokyo Olympics is now postponed to 2021. “We are selling tours to those who are dreaming of travel and sending the message to suppliers that we are freezing 2020 prices for 2021,” she shared during an online webinar. Hard-hit airlines, in their quest to get customers back on board, are offering generous and flexible terms that would be unimaginable prior to the crisis. Cathay Pacific, for instance, has just rolled out a new offer that allows travel consumers to make unlimited changes — up to a year — without extra charge to any new tickets purchased from now until June 30, 2020. POST-PANDEMIC TRAVEL How the economy will look like after the coronavirus pandemic is still a major unknown, but Indonesia-based MG Group President Director Brett Henry, in a webinar assessing the Covid-19 landscape in Southeast Asia, believes that the Y-shaped recovery trajectory to be most plausible future for most markets. In such a scenario, following a sharp decline the economy will split into two tracks – fast and slow – although most travel businesses are likely to be found on the low branch of the Y, he contended. The recovery model, according to Henry, can be broken down into four phrases, namely lockdown (2-4 months), restricted (4-9 months), returning (6-12 months) and recovery (12-18 months). Although revenue-making opportunities in the travel sector are currently limited with most Asian countries essentially still in some form of lockdown, Henry believes the restricted recovery period will bring more opportunities when travel restrictions start to loosen, particularly in the domestic leisure and corporate travel sectors. With testing and providing proof of health likely to become requirements for travelers to cross borders in the near future, Henry stated that travel players who can help corporates overcome the additional clearance hassles that will be imposed on international travel in the post-Covid world will find new business opportunities. Already, air passengers arriving into Hong Kong and South Korea’s Incheon airports are already required to go through coronavirus screening at a makeshift off-site testing centers. Emirates, in its bid to encourage travel, is giving passengers rapid coronavirus tests ahead of flights from its Dubai hub, with results available in 10 minutes.

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