News

Indian airlines could soon run out of cash, warns IATA while seeking immediate relief from government

The International Air Transport Association (IATA) has warned of serious job losses in the Indian aviation industry unless the government quickly comes to the aid of the battered travel sector. With airlines paying out more as refunds than getting as new booking revenues in recent weeks, they are depleting their reserves rapidly and “risk running out of cash in the very near future,” the global trade association of 300 member airlines worldwide said in a letter to Prime Minister Modi earlier this week. “Prior to the outbreak of covid-19, India‘s air transport industry’s economic contribution was estimated at $35 billion, supporting 6.2 million jobs and contributing 1.5% to GDP in India…. IATA estimates covid-19 could result in a 9% loss in passenger volumes and $2.1 billion loss in passenger revenues in India in 2020. The disruptions in air travel from covid-19 could reduce about 5,75,000 jobs and $3.2 billion in GDP supported by the air transport industry in India,” IATA DG and CEO Alexandre de Juniac said in a letter to the PM this Tuesday. Coronavirus impact on airlines is far greater and more widespread than 9/11, SARS or the global financial crisis. “India’s scheduled carriers are currently in grave and immediate danger of insolvency. A cessation of operations would trigger a host of serious consequences…. Unless government action is taken now, the post-pandemic economic recovery in India would be seriously impeded,” the letter adds. IATA has suggested immediate steps like “direct financial support… loans, loan guarantees and support for the corporate bond market.… Rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other government-imposed levies…. temporary reduction of excise duty on ATF… fuel credit to be offered to airlines and waiving of airport charges.”

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Parks Canada helps tourism businesses in national parks and historic sites deal with impacts

The Government of Canada is taking action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. To help mitigate the impacts of COVID-19 on Canada’s tourism industry, Parks Canada will work with tourism operators in national parks, historic sites, and marine conservation areas to defer payments on commercial leases and licences of occupation without interest until September 1, 2020. The Government of Canada is taking action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. To help mitigate the impacts of COVID-19 on Canada’s tourism industry, Parks Canada will work with tourism operators in national parks, historic sites, and marine conservation areas to defer payments on commercial leases and licences of occupation without interest until September 1, 2020. Every year, hundreds of tourism businesses and operators deliver a range of services and experiences to the millions of people who visit Parks Canada places across the country. These enterprises are valued partners to Parks Canada and are important contributors to Canada’s tourism industry and to local economies. But many of them are now facing financial challenges due to the impacts that the COVID-19 pandemic has had on travel and on Parks Canada operations. Parks Canada is now contacting all holders of commercial leases and licences of occupation in national parks, historic sites, and marine conservation areas to provide details on the deferral of regular payments without interest until September 1, 2020. Operators will be contacted directly by Parks Canada staff over the coming days. Information will also be made available soon on the Parks Canada website. Please visit pc.gc.ca regularly for updates.

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Singapore positions to support cruise tourism revival

New budget measures announced Thursday reinforced Singapore’s commitment to tourism-related industries, including cruising. Support for travel agencies, cruise terminals The supplementary budget provided support for workers’ wages in travel-related businesses, including travel agencies, cruise terminals and cruise terminal operators, and extended a 50% concession on port dues for passenger vessels until Dec. 31. It also pledged to 'set aside $90 million to help the tourism industry rebound strongly when the time is right,' said Deputy Prime Minister Heng Swee Keat during the budget announcement in Parliament. The measures are part of a $48bn Resilience Budget package that complements the government’s mid-February budget, which committed $6.4bn to bolster the island nation against the effects of COVID-19. Singapore Tourism Board confident in cruising's future Annie Chang, director, cruise, Singapore Tourism Board, said in an email: 'While it is still too early to determine the full extent of COVID-19’s impact on Singapore’s cruise industry, we remain committed to supporting our industry stakeholders and remain confident in the future outlook of our cruise industry.' Chang outlined efforts STB will undertake to help revive cruise tourism when the market rebounds, including supporting cruise lines that have invested in Singapore, strengthening consumer demand to sustain healthy occupancy and yields for ships, and building cruise agent skills to sell cruise packages effectively. Using this downtime to help agents skill up 'We are exploring how we can leverage on this downtime to ramp up training and accreditation for travel agents,' Chang said. 'Given that 80% of cruise packages in the region are sold through travel agents, and cruise is a nascent product, this would be a good opportunity for travel agents to skill up.' At home, STB will be ensuring operational and infrastructure readiness of terminal operators in preparation for recovery, while around the region the tourism board will focus on galvanizing regional governments towards restoring popular Southeast Asian itineraries in the recovery phase. As lead coordinator for the ASEAN Tourism Strategic Plan, Singapore collaborates with relevant authorities and industry stakeholders to develop and enhance cruise-related infrastructure so cruise lines can continue to offer new and exciting itineraries from Singapore, and promote Southeast Asia as a cruise destination. 'Southeast Asia has witnessed positive results with a growing presence of international cruise lines in the region,' Chang said. 'We believe this positive trend will continue for the cruise industry in the region as we bounce back from COVID-19.' Further measures In light of the impact that COVID-19 has had on the cruise industry, STB is providing enhanced support to cruise lines that have committed to Singapore deployment through Cruise Development Fund partnerships and a new reimbursement process to make it easier and faster for partners to receive these funds. CDF provides support for cruise lines, including those with ships homeporting in Singapore, and in-market travel agents in their cruise marketing efforts in Singapore and overseas. The tourism board will continue to support cruise vessels that require marine services such as bunkering, resupply and repairs in the Port of Singapore, at anchorage. STB is also working closely with Singapore’s National Environment Agency and other agencies to roll out an 'SG Clean' campaign to reassure the public that local businesses including cruise terminals maintain high standards of cleanliness and sanitation. Last month, a Tourism Recovery Task Force comprising tourism leaders from the private and public sectors was set up to help identify opportunities arising from the COVID-19 crisis, drive measures to co-create recovery plans and instill confidence in Singapore’s tourism sector, including helping homeport cruises.

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Central Bank of Egypt to grant 2-year loans to tourism facilities

The Central Bank of Egypt (CBE) announced it will grant 2-year loans to tourism establishments with a grace period of 6 months. CBE wants to help them pay the salaries of employees and their obligations towards suppliers and maintenance works on tourist activities, amid the current covid-19 pandemic. “This measure will not cover sale, travel agency services, reservations, tourist trips, land tourist transport, restaurants, recreational activities in tourist areas, and air transport for passengers,” CBE said. This measure aligns with that of President Abdel Fattah al-Sissi in providing the necessary support to the sectors most affected by the coronavirus pandemic, including an initiative for workers affected by losses in the tourism sector, by financing hotels up to EGP50 billion ($3.2 billion). Egypt is currently the second most affected country in Africa, from the coronavirus pandemic, with 456 confirmed cases of Covid-19 recorded to date.

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Swiss hotel offers 5-star quarantine package, including coronavirus testing

The luxury Swiss hotel is offering a new 5-star service package that includes in-room coronavirus testing, doctor visits and 24-hour nursing care to its guests amid a rapidly worsening coronavirus outbreak. Tourism and hotel management are among the sectors most affected by the new coronavirus that first appeared in China’s Wuhan and then spread to all European countries and beyond. The hospitality industry has experienced a significant drop in demand all around the world and particularly in Europe, which has now become the epicenter of the pandemic. A part-hotel, part-serviced apartments company, Le Bijou – which is operating its luxury accommodation across Switzerland in such cities as Zurich, Geneva and Basel – is now offering a new service with a daily price ranging from 400 pounds ($479.27) to 4,000 pounds in line with the customers' extra requests, according to the British Daily Mail newspaper. "We saw an opportunity and acted quickly to respond to the increasing demands,” the hotel’s management told local media. Le Bijou, in order to attract guests, has begun advertising quarantine-friendly perks including contactless check-in and medical services provided by Double Check, a Swizz private medical clinic. Before the new coronavirus outbreak, Le Bijou already catered for a very exclusive clientele, charging between 700 pounds and 1,700 pounds per night. The company has hosted celebrities and public figures such as Apple co-founder Steve Wozniak, Jordan Belford, the former stockbroker whose story inspired the "Wolf of Wall Street" film, and even the Saudi Royal Family. According to the British Daily Mail, even the most luxurious hotels were not protected from a sharp drop in demand, which has led to the co-founder and CEO of the hotel chain to take a creative approach. “In the beginning of March, revenues had dropped significantly. We said, OK, we need to react immediately to that,” said CEO Alexander Hübner. He said that the traditional reservations ceased after the disease reached Europe. However, he was receiving new requests from people who wanted a luxurious place to stay away from the outbreak and avoid hospitals, while still preparing their own food and having access to doctors and nursing care. But, the 5-star service is not cheap: Coronavirus testing is around 400 pounds and a twice-daily check-in from a nurse is 1,500 pounds, while the 24/7 nurse service costs 4,000 pounds. The company's offers represent the latest concerns that rich and famous people are more likely to be able to get tested and treated than others. Numerous celebrities, public figures and athletes have been tested for COVID-19, while others with symptoms have been called on to stay home, without testing for the virus. Switzerland is one of the countries most affected by the coronavirus, with almost 11,000 positive tests and 154 deaths.

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Tourism Federation appeals to government for incentive package

The Ghana Tourism Federation (GHATOF) has appealed to Government to grant members incentives to compensate for the negative impact of the Coronavirus pandemic (COVID-19) on the industry. The Federation is seeking for subsidy in water and electricity tariffs, suspension of taxes such as VAT, Tourism Levy, National Health Insurance Levy, Property rate and Business Operating Permit. A statement signed by Mrs Bella A Ahu, President of the Federation and copied the Ghana News Agency, expressed concern on the drastic effect of COVID-19, which is crippling various institutions across the globe more especially, the tourism and hospitality industry. It said GHATOF in the past two weeks engaged its trade associations across the country in all the 16 administrative regions of Ghana, adding that the impact of the disease on businesses of the trade associations' members was huge and scary. "The Federation is therefore appealing to the Government of Ghana and its implementing agency Ghana Tourism Authority (GTA) for support," it said. It also appealed to government to help with the supply of essential commodities such as washing detergents, sanitizers, dispensers, nose masks, hand gloves, thermometer guns, Veronica buckets, hand washing soaps, tissue towels and cleaning materials at highly subsidized prices. The Federation called on government for more stakeholder engagements during and after the crisis and urged its members to stay calm and to adhere to the directives of the World Health Organisation and Ghana Health Service.

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