coronavirus

Emirates chief says Covid recovery could take four years

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Industry News: 1st June 2020

Emirates Airline President Tim Clark said on Monday it could take the airline four years to rebuild its network that has been decimated by the coronavirus pandemic.

He was speaking during the opening session of three days of webinars and conferences organised by Arabian Travel Market, which went virtual after pandemic restrictions in Dubai. 

“I think probably by the year 2022/23, 2023/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was,” he said in the webcast interview.

His interview came less than 24 hours after his airline announced it plans to cut jobs due to the COVID-19 pandemic, but had not given numbers.

Emirates issued a statement yesterday saying: “We have looked at all of the possible scenarios in order to maintain our business operations, but have come to the conclusion that unfortunately we have to say goodbye to some of the wonderful people who have worked for us.”

Emirates employs more than 100,000 people and operates a fleet of 270 wide-body aircraft. In March it confirmed salaries would be cut between 25 and 50 per cent after the fleet was grounded.

“The current pandemic has impacted many industries around the world,” said Emirates in its release.

Emirates had already said on May 10 that it would take at least 18 months for travel demand to return to “a semblance of normalcy”, even after reporting windfall profits before the pandemic.

The carrier had suspended flights on March 22 before resuming certain services two weeks later.

Last week, it began operating scheduled, but partial, services to a number of airports, mostly European

The International Air Transport Association (IATA) forecast in April that air traffic in the Middle East and North Africa (Mena) will fall by more than half this year.

 
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Final list of speakers revealed for the future of travel & tourism Middle East conference

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Industry News 29th May, 2020

This week HE Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce, has confirmed his attendance at a conference considering the future of travel and tourism in the Middle East.

The event – part of Arabian Travel Market’s three-days of webinars and conferences – will discuss sustainable investment measures for the region’s travel & tourism sector alongside strategies to restore travellers’ confidence and move forward post-pandemic.

He will talk about his vision for Dubai’s success alongside leaders from across the region:

Panel Discussion: Initiatives to revive the travel and tourism industry and secure sustainable investment in the region?

Moderator: Rajan Datar, Presenter and Broadcaster BBC

Speakers: 

  • HE Marwan Bin Jassim Al Sarkal, Executive Chairman Sharjah Investment and Development Authority
  • His Excellency Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority (SCTDA)
  • HE Saleh Al Gezeiry, Director General for Ajman Tourism
  • Mr. Majed M. Alghanim Tourism & Quality of Life Managing Director, Ministry of Investment, Saudi Arabia 
  • Mr. Nicolas Mayer, PWC Industry Leader Hospitality and Tourism EMEA & Managing Partner Global Center of Excellence Tourism & Hospitality

This is one of three sessions on the day and you can be part of the event with free registration.

Restructuring to Attract Sustainable Investment and Customers in the New World Order.

Register HERE

READ MORE ABOUT OUR CONFERENCE HERE

READ MORE ABOUT Arabian Travel Market’s Virtual Programme 1 – 3 June , 2020 HERE

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Europe: flight searches online go up as governments relax Covid lockdowns

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Industry News 28th May 2020

Flight searches in Europe have plummeted by more than 90 per cent but there are signs that as lockdown restrictions are relaxed, people are preparing to fly again.

And Greece – which escaped the worst of the virus – has becomre a key target for people researching holidays online, according to digital audience analyst Sojern. 

It examines and reports travel intent by internet use, as measured by searches on airline websites, online travel agencies and metasearch.

This week Sojern reported that while bookings in Europe are down by more than 90 per cent in most countries, Greece is a front runner in the recovery forecast.

Sojern has released its latest findings on how travel trends in Europe are being impacted by the COVID-19 outbreak. The most recent insights, from data collected on Tuesday (26 May), are based on over 350 million traveller profiles and billions of travel intent signals.

Flight searches and bookings remain down overall, however we are beginning to see positive signals that travel intent is improving in some markets that have announced an easing of travel restrictions. We will look deeper into these countries in the next section.

 

Global flight searches to key European markets

 

Global flight bookings to key European markets

 

European travellers itching to get away to newly-opened markets

In particular, Greece stands out with a major uptick in global flight searches and bookings in the last week, after announcing that Athens will be open to tourists on 15 June, and that the Greek islands will be open as of 1 July.

But there are other countries hoping to attract European travellers for their usually-busy summer season. In addition to the re-opening of Greece, we know that Italy will mostly reopen on 3 June (with some staggered re-openings in places like Sardinia), while Cyprus and Poland will reopen from 15 June. At present, these countries do not appear to have any self-isolation restrictions from arriving travellers.

When looking at future departure months, while we see longer term recovery nearer the end of the year, we are seeing spikes in regional flight searches to these countries in June.

 

European flight searches to reopening markets

And when we look at bookings to these countries made in the last 14 days, we see that many Europeans have booked travel in July, in line with the reopening of borders. While these spikes are still well down when compared year-over-year, it is a positive sign that we see these upticks in travel searches and bookings so quickly after government announcements. Europeans remain eager to enjoy a summer holiday abroad.

 

European flight bookings to reopening markets

 

Government policies impact European travel intent to the UK, but domestic intent is strong

Last week, the UK announced that starting 8 June, arrivals into the UK will need to go into a 14-day self-isolation, which could be a deterrent to those looking to travel to the UK in the coming months. As a result, with the exception of a small spike in June, European travel intent to the UK remains well below that of the European countries who are opening their borders without any self-isolation rules. For example, the small spike in June is still 86% down YOY, whereas for Greece in the same month, travel intent is only down 31% YOY.

 

European flight searches to UK, future departure months

On a positive note, it does appear that domestic travel within the UK is really starting to improve. We’ve indexed to the first week in April, when Europe was perhaps in the worst phase of the virus, lockdowns were strictest, and travel intent was at its lowest. We now see that searches for travel within the UK are up over 70% from the first week in April. While the government has not lifted restrictions on non-essential travel, it appears that staycations and ‘near-cations’ will be the name of the game once travel is allowed in the UK.

 

Travel intent to the UK, indexed to 5 April

 

 

We will continue to share more insights as we monitor the situation. At the moment, we see that European countries that are starting to reopen their borders without any restrictions are reaping the benefits of growing travel intent, opposed to those countries who are implementing self-isolation restrictions on arrivals. These forward-looking insights will hopefully help travel marketers shape their strategies when the industry starts to recover from this outbreak.

 

 
 
 
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German government gives Lufthansa €9 billion bailout

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Industry News: 26th May 2020 The German government threw Lufthansa (LHAG.DE) a 9 billion euro ($9.8 billion) lifeline on Monday (25 May), agreeing a bailout which gives Berlin a veto in the event of a hostile bid for the airline. The largest German corporate rescue since the coronavirus crisis struck will see the government get a 20 per cent stake, which could rise to 25 per cent plus one share in the event of a takeover attempt, as it seeks to protect thousands of jobs, according to a report by the Reuters news agency. Lufthansa has been locked in talks with Berlin for weeks over aid it needs to survive an expected protracted travel slump, with the airline wrangling over how much control to yield in return for financial support. Germany’s central government has spent decades offloading stakes in companies, but remains a large shareholder in former state monopolies such as Deutsche Post and Deutsche Telekom. Berlin also still has a 15 per cent holding in Commerzbank (CBKG.DE), which it took on during the global financial crisis. Other airlines including Franco-Dutch Air France-KLM (AIRF.PA) and U.S. carriers American Airlines (AAL.O), United Airlines (UAL.O) and Delta Air Lines (DAL.N) have also sought state aid after the coronavirus hit global travel. Germany’s Finance and Economy Ministries said on Monday that Lufthansa, whose shares closed up 7.5 per cent at 8.64 euros, had been operationally healthy and profitable with good prospects, but had run into trouble because of the pandemic.

 

 
 
 

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Saudi Arabia begins releasing lockdown with end in four weeks

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Industry News: 26th May 2020

Saudi Arabia will begin easing its coronavirus curfew from Thursday, it has been announced.

Health Minister Tawfiq Al Rabiah said the easing of restrictions will be undertaken in phases and will depend on how the spread of the virus pans out this week. 

The first phase will begin with expanding capacity to serve “critical patients” and the second will include intensifying Covid-19 tests and early detection.

Speaking a a press conference on Monday, the health minister said the Saudi people had displayed a “high amount of responsibility in practising social distancing.” 

“After five months since this pandemic started, where the global health systems faced great difficulties in dealing with it, our society has become today more aware of this virus and implementing the measures of the social distancing, as it is a new experience for all of us,” he said in remarks quoted by the Saudi Press Agency. 

Restrictions in place due to coronavirus, including bans on domestic travel, holding prayers in mosques, and workplace attendance in both government and private sector will be lifted, starting May 31, the statement added.

The Kingdom will reopen all mosques outside Mecca from May 31 until June 20 in one of a number of measures announced by the SPA.

From June 21, the Kingdom expects to lift the lockdown entirely and return to normal life, according to SPA.

Al Rabiah said that people should continue taking precautionary measures while leaving their homes by using face masks and hand gloves.

The Health Ministry recorded nine new deaths and 2,235 new cases of coronavirus in the Kingdom on Monday.

The new deaths have increased the Covid-19-related toll in Saudi Arabia to 399 and the total number of confirmed cases to 74,795. 

The number of recoveries has risen to 2,148, taking the total number of recovered cases to 45,668.

The Covid-19 pandemic has severely damaged the Kingdom’s plan to boost its tourism income and create new jobs. In October 2019, the Kingdom of Saudi Arabia revealed its 2030 plan aiming for 10 per cent of GDP to come from tourism within 10 years, up from 3 per cent, building on its enormous annual religious pilgrimage visitors. The Kingdom also set a target of international and domestic visits of 100 million a year by 2030, attracting significant foreign and domestic investment and creating a million jobs.

 
 

 

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Dubai tourism leaders meet key stakeholders to plan for the future

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Industry News: 26th May 2020

ABU DHABI, 25th May 2020 (WAM): Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) held a virtual meeting with key aviation and hospitality partners to discuss current and post-pandemic strategies and joint initiatives aimed at ensuring the tourism industry’s gradual return to normalcy.

The meeting also discussed global efforts to minimise the transmission of COVID-19 and precautionary measures deployed to safeguard the health of communities across the UAE.

On the same day the UAE Government announced that the number of COVID-19 tests has broken the two million mark, reaching 2,044,493 screenings as part of the national plan to intensify coronavirus detection. Three deaths on Sunday due to COVID-19 complications, took the total number of deaths to 248, and 601 individuals have fully recovered from the virus, bringing the total number of recoveries to 15,657. There are 14,402 patients from different nationalities are currently receiving the necessary treatment.

Attendees the meeting hosted by the Director General of Dubai Tourism, included key executives of hospitality groups including Jumeirah, Emaar Hospitality Group, Marriott International, Millennium, Accor, JA Resorts and Hotels, Kerzner International, Al Habtoor Group, Wasl and Rotana, in addition to aviation sector players like Emirates, Flydubai and Dubai International Airport.

The report released by state newsagency WAM said partners were briefed on the phased approach being adopted to reopen the tourism sector in Dubai, and the marketing communications and activities in progress across key markets to reinforce Dubai’s high global profile including the ongoing #TillWeMeetAgain digital activation.

With the hospitality sector being a key pillar of Dubai’s economy, the discussions between Dubai Tourism and partners focused on the steps being taken to pave the way for the reopening of hotels and other tourism facilities across the city, while ensuring adherence to the strictest guidelines and providing opportunities to revive domestic market demand.

As part of overall efforts to create a positive perception and a conducive environment aimed at instilling confidence among travellers who plan to visit Dubai, the meeting also looked at precautionary measures that have been implemented, both at a citywide level and across specific sectors including tourism, which represent critical touchpoints for visitors and residents during their stay.

One of the key priorities from a marketing perspective, the meeting heard, is to emphasise the safety and security that Dubai provides, and the clear stringent health and safety protocols issued by the Dubai Health Authority based on international standards and best practices aimed at containing the contagion. The meeting also discussed the mechanism to ensure adherence to the guidelines, practical solutions to scan and monitor passengers at Dubai International Airport and the effective management of contact tracing in compliance with privacy standards, following the resumption of air travel.

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All participants at the meeting expressed their appreciation for the way in which government – both at the Dubai and UAE level – have dealt with the threat of COVID-19 including the rational policy decisions that have allowed robust management of the health crisis and mitigation of the economic repercussions by allowing for the gradual reopening of vital sectors like tourism.

Industry executives at the meeting also agreed that the postponement of Expo 2020 was prudent and well-received. It provides the opportunity to hold the event in a more normalised global environment where all countries can actively participate, making it a more representative Expo for the world in 2021. The businesses also reiterated their support to Dubai Tourism to kick-start the sector with collaborative development of promotional programmes and strong customised packages that take into account the current realities of the global market. The stakeholders were unanimous that there was positive sentiment surrounding Dubai as a key destination in the international circuit thanks to the city’s world class health infrastructure, and protocols and processes deployed during the management of this pandemic.

Helal Saeed Almarri, Director General, Dubai Tourism, said: “It must be emphasised that the health and safety of our residents and guests will always remain our top priority as we continue to work with the industry and our government partners not just during this critical period but beyond, to develop innovative approaches, real-time responses, and proactive yet prudent initiatives to ensure that Dubai remains at the forefront of the world’s leading destinations in line with our strategy.

“As we look ahead to a gradual reopening of tourism, we will focus on the key elements that have ensured the industry’s success over the past decade – creating unique value and delivering an uncompromised guest experience. To achieve this, we rely on the solidarity of our stakeholders who have always played a pivotal role. We hope they will continue to lead from the front in positioning Dubai as a must-visit destination.”

Paul Griffiths, CEO of Dubai Airports, said: “Dubai International Airport is prepared to welcome visitors as soon as airports around the word start reopening and pave the way for a phased resumption of air services. As health and hygiene standards will play an influential role in encouraging people to travel, we have put in place a set of health and safety protocols at our airports including all necessary quarantine arrangements and the implementation of sanitisation and disinfection measures to reassure tourists that Dubai is one of the safest destinations to visit. We will also continue to receive incoming flights from select destinations, operate cargo flights, as well as flights to repatriate expatriates and guests to their home destinations.”

Adnan Kazim, Chief Commercial Officer at Emirates Airline, said: “The health and safety of our customers and employees remain our top priorities across our operations, and Emirates has implemented comprehensive measures at every step of the customer journey. This includes thermal temperature scanning before check-in, the mandatory use of masks and gloves for everyone at the airport, protective suits for our crew and ground employees, physical distancing protocols, modified services to reduce contact, enhanced cleaning of all our touch points, and much more.”

Ghaith Al Ghaith, CEO of flydubai, said: “Since the flight restrictions came into effect, we have operated more than 100 repatriation flights to 19 different countries enabling 14,000 citizens to return home. flydubai will continue to work closely with its strategic partners to ensure that all safety measures are in place in line with international standards when flight restrictions are lifted.”

Mohammed Al Habtoor, Vice Chairman and CEO, Al Habtoor Group, said: “Dubai with its wide experience in successfully dealing with challenging situations is capable of restoring tourism momentum and paving the way for the hospitality sector to returns to its previous state. This is also a view shared by our international hospitality partners who have placed great faith in Dubai’s resilience during tough times, as well as in its world-class healthcare system and the range of preventive measures taken across the city such as the effective and regular sanitisation and sterilisation programmes, that will help highlight Dubai as one of the world’s safest destinations.”

Mark Willis, CEO Middle East and Africa at Accor, praised the government’s efforts in reopening the markets and supporting the tourism sector: “Accor is committed to coordinating with Dubai Tourism and all related entities, from both government and private sectors, to ensure we are aligned in making the safety and well-being of our guests and team members our key priority”

Neal Jones, Chief Sales & Marketing Officer, Europe, Middle East and Africa (EMEA), Marriott International, said: “As an international chain that enjoys a longstanding relationship with Dubai, Marriott is committed to supporting the industry’s efforts to regain momentum by rolling out our own initiatives and packages to attract visitors to Dubai when the time is safe for travel.”

 

 

‘Ski resorts were Covid-19 breeding ground in Europe’

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Industry News: 23rd May 2020

Dr Andrea Ammon blames the return of skiers and snowboarders from Alpine skiing breaks in the first week of March was a pivotal moment in the spread of Covid-19 into Europe.

And in her interview with The Guardian newspaper in the UK last week she warned that Europe should brace for a serious second wave.

“The question is when and how big, that is the question in my view,” said Dr Ammon (pictured above), director of the European Centre for Disease Prevention and Control (ECDC), a former advisor to the German government..

In her Guardian interview she said: “Looking at the characteristics of the virus, looking at what now emerges from the different countries in terms of population immunity – which isn’t all that exciting, between 2 per cent and 14 per cent, that leaves still 85 per cent to 90 per cent of the population susceptible – the virus is around us, circulating much more than January and February.

“I don’t want to draw a doomsday picture but I think we have to be realistic. That it’s not the time now to completely relax.”

And she was believes that Alpine resorts were the breeding ground and first point of arrival for much of the pandemic in Europe in Janury.

“Because at that time we saw new cases all over Europe and actually they had been in the skiing places in the Alps, in Italy, Austria,” she said.

“I mean this is a crowded place, the ski resorts, and then you have these cabins that you go up the mountain and these are really crammed.

“Yeah, it’s just perfect for such a virus. I mean I am pretty sure that this contributed to the wide spread in Europe.”

The case of the ski resort of Ischgl in Austria has a reputation as a virus-spreader. The village had the highest concentrations of covid-19 in the whole of Austria.

It remained in full lockdown and along with the other Austrian resorts of St Anton and Soelden long after other areas saw their restrictions lifted.

It is interesting to see this has now been confirmed by the medical experts, but it was obvious for anyone to see with a modicum of knowledge and common sense.

Perhaps the more worrying aspect at this moment in time is that Andrea Ammon believes a second wave is coming.

She advises that the prospect of a second wave of coronavirus infection across Europe is no longer a distant theory.

“The question is when and how big, that is the question in my view,” said Dr Andrea Ammon.

READ FULL GUARDIAN INTERVIEW HERE

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Turkish Airlines further extends flight suspensions until June

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Industry News: 23rd May 2020 Turkish Airlines has extended the suspension of its domestic flights until June 4 due to coronavirus (Covid-19) with international flights scheduled to resume on June 10. According to a statement issued by the company, the suspension of domestic and international flights will be extended due to the pandemic. It had previously given a deadline of May 28, 2020. The airline has a fleet of 350 aircraft serving 300 international destinations. Currently, the Republic of Turkey’s Prime Ministry Privatization Administration owns a 49.12 per cent interest in THY, while 50.88 per cent of shares are publicly traded. Turkish Airlines claims to have one of the best Business Class products in the world, , flies just about everywhere, offers several unique amenities, and promises bargain prices. It is part of the Star Alliance is the world’s largest airline community, consisting of 26 members from leading companies in the global aviation sector.  It has said that in response to the pandemic, cabin baggage will now be placed in the hold, with luggage allowances increased by 8kg.
 

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Hard hit Dubai hotels prepare for September recovery

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Industry News: 21st May 2020

About 30 per cent of jobs in Dubai’s hotel industry are likely to be lost over the summer until demand recovers from the pandemic, according to research firm STR.

In an updated Bloomberg report today (May 21, 2020) the news outlet said more than a third of the city’s 120,000 hotel rooms will ‘probably remain closed through the typically slow summer months’.

Bloomberg spoke with Philip Wooller, Middle East and Africa director at STR Global. The industry employs about 40,000 people, he estimated.

The job-loss estimate is a “minimum,” Wooller said. “Otherwise you’re asking the owners to reach into their own pockets and, while some might do that, others won’t be able to afford it.”

Almost 17 million tourists visited the city last year, contributing about 12 per cent to economic output.

Hotel occupancy slumped to 23 per cent since the pandemic hit from about 80 per cent one of the highest in the world, according to STR. Average occupancy globally is around 20 per cent and has been mostly held up by demand for accommodation for medical staff and quarantines.

“Dubai’s Hospitality businesses are resuming operations based on issued government reopening guidelines during this pandemic,” the emirate’s media office said in a tweet. “Dubai’s hotel sector is healthy and this prudent approach prepares the industry for an even stronger resurgence post Covid.”

Occupancy is expected to recover to between 50 and 60 per cent by September as demand improves and hotels reopen, Wooller said. Some operators, especially beach hotels, may see demand from residents unable to travel abroad seeking local vacations instead.

Bloomberg reported that closures have hit most hotels in the rest of the Gulf, with nearly 43 per cent of rooms in the Omani capital being shuttered. In Mecca, more than 80 per cent of rooms were closed as the city that hosts Islam’s holiest site, which had the worst outbreak in Saudi Arabia.

Some hotel owners in Qatar are benefiting from the government leasing nearly 30 properties. Qatar, which is set to host the soccer World Cup in 2022, is still benefiting from demand as infrastructure preparation continues. In Dubai’s Emirati neighbour, Abu Dhabi says just 17 per cent of the city’s 29,000 rooms closed. Occupancy is hovering around 50 per cent as the government leases rooms for essential staff and for quarantines, according to STR Global.

READ FULL UPDATED BLOOMBERG NEWS REPORT HERE

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Why Brits plan to spend up to £3.8bn on hospitality in first week after lockdown ends

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Industry News: 21st May 2020

In the UK the public’s wish to dine out or get a way for a family break is worth £3.8billion (US$4.6bn) to the economy…within just one week of lockdown ending.

New research from Caterer.com this week survey more than 2,000 Brits and revealed 63 per cent want to support local hospitalty businesses as soon as possible, as long as sfety measures are in place.

And it revealed that almost half the people across the country have a new found apprecaition and recognition of the hospitality sector and more than half were eager for it to ‘get back to normal’.

Almost a third (31 per cent) say they will go to the pub within a week of being allowed and in London it was more than half (51 per cent) and 30 per cent will be dining out within the first week.

The insights from Caterer.com show that 62 per cent of Brits would feel comfortable eating in restaurants that occupied every other table only and 55 per cent agreed that maximum group size on a table should be four.

But it was another blow for buffet-style dining with seven in 10 of those surveyed said that was not an option until a vaccine is discovered.

Caterer.com concluded the results support the call from the sector for additional support from the Government, in order to make operation financially viable with 67 per cent supporting Government cash to ensure survival. Even though this money would have to come from central funds, the survey found around 40 per cent say they would pay more in return for better cleaning and social distacing measures.

The survey included suggestions from customers to help make them feel comfortable going out:

  • 54% think hand sanitiser should be provided for all customers and staff
  • 47% would like all staff to be trained on a new cleaning protocol
  • 36% think Social Distancing Managers should be implemented
  • 22% think that all staff should wear PPE
  • 18% think they should be able to order their meals digitally

Neil Pattison, director at Caterer.com, said: “While this has been an incredibly painful time for the sector, it’s encouraging to see the public have a huge appreciation for what the hospitality sector provides to communities. There is strong appetite to support these businesses and workers in getting back on their feet.

“While measures like having more hand sanitiser available and training staff to introduce new cleaning regimes may be more simply implemented, social distancing measures will mean far fewer customers can be served at one time.

“As a result, there is deep concern about how hospitality businesses will survive economically in the short and long term.

“We are grateful for the Government’s support to date, however, there is still much more work to be done and it’s vital that this continues.”

 

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