News

Business travel platform Huilianyi raises $42M, aims for global expansion

As China embarks on a potential economic revival, Shanghai-based business travel platform Huilianyi has landed RMB 300 million (about $42 million) in funding. The Series C+ round was led by the Huaxing New Economic Fund, a subsidiary of Huaxing Capital. Previous investors SoftBank China, Blue Lake Capital and Zhonglin Capital also participated in the round. According to a translated announcement, a representative with Huaxing Capital praised Huilianyi as “an absolute leader in the industry.” “With profound and unique understanding, we are very optimistic about the future development prospects of Huilianyi.” Huilianyi, a SaaS-based travel expense reimbursement system, was founded in 2016. The company boasts millions of active users across thousands of enterprises, including Didi Chuxing and Tencent. Propelled by previous funding totaling more than $22 million, Huilianyi expanded into Singapore and Malaysia in 2018 and into Japan in 2019. Funds from the investment will be used to expand into new markets, including the United States. “In the connected era, we are optimistic that business travel and expense management platforms have become standard applications for enterprises,” a representative from Zhonglin Capital said.

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Organisers recommend postponing Dubai Expo 2020 to next year due to COVID-19

Dubai's Expo 2020 should be postponed to next year over the new coronavirus pandemic, local organizers recommended Monday, pushing back a world's fair that the sheikhdom has bet billions of dollars on to rejuvenate its troubled economy. The ultimate decision over the event will be made by Paris-based Bureau International des Expositions, which had awarded the fair to this skyscraper-studded city in 2014. That helped boost Dubai's crucial real-estate market and had officials hoping for more tourists in this city-state that is home to the world's busiest airport for international travel. Now, the pandemic has grounded flights by Dubai's long-haul carrier Emirates, jeopardized global tourism and caused further panic in a real-estate market already down by a third since the 2014 announcement. As confirmed cases worldwide now number 725,000, with 34,000 deaths, the expo's local organizers issued a statement via the state-run WAM news agency. It said they could postpone the event by a year under their contract with the Bureau International des Expositions. Already, the Tokyo Olympics and other major world events have been postponed over the virus. Expo 2020 officials did not immediately respond to a request for comment from The Associated Press. Already, construction costs around the event are estimated at USD 7 billion. The cost of the event had raised concerns given the economic outlook. Dubai will need to incorporate the new city they've built for Expo 2020 into its sprawling real estate market after the six-month event ends. Even before the pandemic, that market shows signs of trouble. Real estate speculation and the Great Recession helped drag down Dubai's economy in 2009. A sharp drop in oil prices in 2014 also hurt its economy, as has tension between the US and Iran and the war in Yemen. Dubai's real estate market, which has been a major economic driver since it allowed foreigners to own property beginning in 2002, has seen its value drop by a third since its 2014 peak. Apartments, villas and office space stand empty, and more properties are due to come onto the market in the coming years, sparking enough alarm for Dubai's government to set up a commission to come up with ways of heading off the problem. On Sunday, Dubai's largest, fully private real-estate developer DAMAC Properties announced its first yearly loss since becoming a publicly traded company. Late Saturday, global ratings agency S&P announced it lowered its rating for DAMAC from B+ to B over concerns about the economic fallout from the outbreak. It also lowered its ratings for the Dubai real estate juggernaut Emaar Properties, of which the sheikhdom's sovereign wealth fund owns about a third. The ratings agency said it expected the fall in residential prices in Dubai will be steeper than previously forecast, with adverse trends and stretching into 2021.

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Florida For Good Launches National B Tourism Network

Florida For Good (FFG), an organization that helps bolster the business for good movement in the state, has just launched the B Tourism resource platform for sustainable tourism businesses to connect, share best practices and during these trying times, provide free resources to those companies dealing with negative impacts from the COVID-19 pandemic. As part of the For Good Movement Inc., a 501(c)3 nonprofit, FFG was founded on the principles of helping businesses in Florida become more conscious, sustainable and focused on people and the planet instead of just profit while putting a strong sense of community at the core of all they do. Having been co-created in partnership with a hospitality company, Certified B Corporation Legacy Vacation Resorts, that sense of community is stronger than ever during this unprecedented time for an industry that has suffered devastating impacts and leadership felt a strong call to action to create the new B Tourism network to be of assistance to their industry partners. The new platform is a national network to convene the hospitality industry and tourism community for collective action to protect people’s livelihoods, facilitate business continuity and mobilize support for the COVID-19 response. Helpful links and resource pages geared toward employees and employers include things such as companies that are hiring, SBA loan information, best practices for times of crisis, COVID-19 prevention measures and suggestions for self-care in a time of uncertainty. These resources are intended to help companies find ways to show their stakeholders that they place value on the triple bottom line (people, planet, prosperity) as they do their best to ensure economic viability for the organization while minimizing consequential harm through compassion and well thought out decisions. “We know that all we can control is how we respond to these events,” said Legacy Vacation Resorts and Florida For Good co-founder Jared Meyers. “While the availability and timing of the CARES act is critical right now, it alone will not solve all of these problems so we wanted to create a platform to help bridge the gap. We have been so inspired by Florida B Corps and Hospitality B Corps in the past and they have remained excellent partners by sharing best practices and information during this crisis. We are very appreciative to be a part of the B Corp Community and wanted to give back in every way we could.” While the situation is temporary, no one knows for certain how long it will last. What FFG and LVR do know is that that these changes are significant, sudden and unprecedented for businesses in the travel space with a financial impact worse than the 2008 Financial Crisis and 9/11 combined. The American Hotel and Lodging Association reports that based on current occupancy estimates for the immediate future and historical employment impact rates, 1 million direct jobs, or nearly 3.9 million total jobs, have either been eliminated or will be eliminated in the next few weeks, and since mid-February in the U.S., hotels have already lost $2.4 billion in room revenue. B Tourism’s mission is to help mitigate these effects now, and help companies get back on their feet quickly in the future once the time does come. “We truly hope to be a resource and a ray of hope for hospitality businesses and impacted individuals during this unprecedented event in our collective history,” said Jennifer Moreau-Chick, Executive Director of Florida For Good. “Our network understands the immense strain that many companies are feeling at the moment in regard to their members’ financial strength and increasing stress. Florida For Good has always been driven by encouraging individuals and business owners to do the right thing, act with compassion and maintain care for a triple bottom line. Now more than ever, we are happy to be here for our network members and conscious tourism businesses around the country to assist, support, and provide access to free and discounted resources and services.” These times will not last forever. For now, both LVR and FFG encourage travelers to make memories with family and friends at home, stay safe and draw close to what matters most. When this challenging time passes, they know society will be stronger and more eager than ever to share in the human experience and explore the world together again. Travel is magical – it breaks down cultural differences, connects us to life and cultivates connections with our loved ones, all while reducing stress and enriching our lives. Until that time when explorers from around the world can enjoy the wonder of travel together again, B Tourism will continue to help all stakeholders in the industry get back on their feet.

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Singapore Airlines obtains $13 billion rescue package amid coronavirus shock

State investor Temasek Holdings and others put together a funding package of up to S$19 billion ($13.27 billion) for Singapore Airlines (SIA) in the single biggest rescue for an airline slammed by the coronavirus pandemic. The massive financing plan, which drove SIA shares down as much as 10.5% on Friday, underscores the depth of financial trouble for the global airline industry, with nearly one-third of the world's aircraft already grounded because of the pandemic, according to data provider Cirium. Many governments worldwide have already stepped in to help airlines amid the virus-induced travel slump, with the United States offering $58 billion in aid. Many carriers have grounded fleets and ordered thousands of workers on unpaid leave to keep afloat. The S$5.3 billion equity and up to S$9.7 billion convertible note portions of the Singapore Airlines fundraising are being underwritten by Temasek, which owns about 55% of the group. The carrier has also obtained a S$4 billion bridge loan facility with the country's biggest lender, DBS Group Holdings Ltd, to support near-term liquidity needs until the airline secures money from the rights issue. "This is an exceptional time for the SIA Group," SIA Chairman Peter Seah said in a statement late on Thursday. SIA's shares went into a rare trading halt earlier Thursday after plunging to their lowest in 22 years this week as investors feared the virus will have a deep impact on the company. "Under the current dire circumstances, the rights issue is the best tactical move for SIA. It underscores the carrier's strategic importance to Singapore and the island state's position as both a financial centre and aviation hub," Shukor Yusof, head of aviation consultancy Endau Analytics, said in a blog post. SIA has said it would cut capacity by 96%, ground almost its entire fleet and impose cost cuts affecting about 10,000 staff amid what it called the "greatest challenge" it had ever faced. The rights issue will be offered at S$3 per share, a 53.8% discount to SIA's last traded price of S$6.5. "While the raising looks earnings and valuation decretive, SIA now looks well positioned to ride out the storm with balance sheet concerns largely de-risked," BofA analysts told clients. Temasek International Chief Executive Dilhan Pillay Sandrasegara said the deal would not only tide SIA over a short-term liquidity challenge but would position it for growth beyond the pandemic. SIA said it would use the funding from the rights issues to beef up its capital and operational expenditure needs. On Thursday, the Singapore government announced more than $30 billion in new measures to help businesses and households brace against the pandemic. Finance minister Heng Swee Keat had also said that SIA would announce support from Temasek and that he welcomed Temasek's decision to support the airline. Qantas Airways this week secured A$1.05 billion ($636.1 million) against its aircraft fleet.

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Tax and duty relief likely in package for industry

NEW DELHI: India is close to finalising a second economic relief package that may include tax concessions for industry sectors hit hard by the disruption due to Covid-19, particularly micro, small and medium enterprises (MSMEs), services and exports. The government has also initiated talks with the World Bank for an unprecedented package from the multilateral lender to speed up the creation of healthcare infrastructure that’s urgently needed besides support for some key economic sectors to tackle Covid-19’s impact. “It is being worked out ... it will be announced shortly,” said a government official. Some of the steps that are being considered include a moratorium on select tax payments for some sectors, reduction in import and export duties, relaxation in payment of dues and fees and additional interest subvention for exports. Some Conditions may be Eased Conditions are also likely to be eased for performance-linked incentives for exports, said another government official. Exports, retail, consumer durables and most service sectors — aviation, hospitality, food, travel and tourism among others — have been hit by the 21-day lockdown that began on March 25. “This would be a targeted package for sectors most impacted... Discussions are going on between finance ministry and stakeholder ministries as also the Prime Minister’s Office,” said the official cited above. Finance minister Nirmala Sitharaman had announced a package worth Rs 1.7 lakh crore targeted at the poor and marginalised sections of society last week. The focus was on getting food and cash handouts to the needy and those who have no income to support themselves. The Reserve Bank of India (RBI) had unveiled several measures on Friday, including a repo rate cut of 75 basis points, a reduction of 100 basis points in the cash reserve ratio to free up liquidity and a three-month moratorium on loan repayments. The second economic relief package is aimed at making sure that the sectors worst hit by the lockdown are able to rebound quickly once the country reopens. Industry has called for a fiscal stimulus worth 1% of country’s GDP amounting to Rs 2 lakh crore to counter the economic impact of the Covid-19 outbreak. It has also sought the removal of long-term capital gains tax apart from incentives for the export sector. Most agencies have cut India’s growth forecast for FY21. Standard & Poor’s on Monday pared its growth estimate to 3.5% in the wake of the lockdown from 5.2% forecast earlier.

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Calling on Innovators and Entrepreneurs to Accelerate Tourism Recovery

In the face of an unprecedented challenge, the World Tourism Organization (UNWTO), with the support of the World Health Organization (WHO), calls on innovators and entrepreneurs to put forward new solutions to help the tourism sector recover from COVID-19. With millions of jobs at risk as the pandemic hits tourism harder than any other sector, the United Nations specialized tourism agency has included innovation in its wider response to the pandemic. That response has seen UNWTO work closely alongside WHO to mitigate the impact and place tourism at the centre of future recovery efforts and liaise closely with governments and the private sector to boost collaboration and international solidarity. The “Healing Solutions” challenge is launched in collaboration with WHO, further advancing the united response of the wider United Nations system to COVID-19. This global call for entrepreneurs and innovators asks them to submit ideas that can help the tourism sector mitigate the impact of the pandemic and kickstart recovery efforts. In particular, the challenge is aimed at finding ideas that can make a difference right away: for destinations, for businesses and for public health efforts. Ideas that are ready to implement Participants should be able to demonstrate how their ideas can help tourism in its response to COVID-19. Ideas must also have been piloted and be ready to scale-up, with a business plan in place and the potential to be implemented in several countries. UNWTO Secretary-General Zurab Pololikashvili explains: “Tourism is the sector that has been hit the hardest by COVID-19. Our response needs to be strong and united. We also need to embrace innovation. I call on all entrepreneurs and innovators with ideas that are developed and ready to be put into action to share them with us. In particular, we want to hear ideas that will help communities recover from this crisis, economically and socially, as well as ideas that can contribute to the public health response.” The competition is now live and applications close on 10 April 2020. The winners of the Healing Solutions for Tourism Challenge will be invited to pitch their ideas to representatives of more than 150 governments They will also enjoy access to the UNWTO Innovation Network, which includes hundreds of start-ups and leading businesses from across the tourism sector.

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