Emirates chief says Covid recovery could take four years

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

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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Business chiefs call on UK government to scrap 14-day quarantine

Industry News: 28th May 2020

Business leaders have called on UK government to scrap its 14-day quarantine on visitors and concentrate on ‘air bridges’ with countries deemed safe.

Low risk visitors would avoid the need for quarantine, due for introduction on June 8, otherwise they warn British business will suffer serious damage and it will be left out of other countries co-operation. 

Yesterday business groups wrote to Prime Minister Boris Johnson, saying the 14-day quarantine on all air passengers arriving in the UK will have “serious consequences” for the economy. 

In a letter to the prime minister, bosses of airlines including EasyJet, Tui, Jet2 and Virgin Atlantic, as well as industry bodies Airlines UK, the British Chambers of Commerce, UK Hospitality and manufacturing association Made UK said that while they fully support the government’s commitment to public health, they have “serious reservations” about a “blanket approach” to all arrivals into Britain.

So-called ‘air bridges’ would allow visitors from countries where coronavirus infection rates are low into the UK, without having to self-isolate for two weeks.

Instead, they are asking for a more “targeted, risk-based” approach when establishing air links with countries that have high infection rates from the pandemic.

“The alternative risks major damage to the arteries of UK trade with key industry supply chains, whilst pushing the UK to the back of the queue as states begin conversations for opening up their borders,” says the letter.

Home Secretary Pritti Patel announced quaratine plan details on Friday. She said: “We recognise how hard these changes will be for our travel and leisure sectors, who are already struggling in these unprecedented times.

“Across government, we continue to work with them and support what is an incredibly dynamic sector to find new ways to reopen international travel and tourism in a safe and responsible way.”

She added that the 14-day self-isolation rule will be reviewed every three weeks.

Some airlines have announced plans to increase flight numbers this summer after air travel ground to a virtual halt because of the coronavirus lockdowns imposed by many governments.

However, some have argued that the two-week-long quarantine will put people off travel and be difficult to enforce. 

 
 
 
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Haitham Mattar

ITSC 2019 Speaker
Haitham Mattar
Managing Director
IHG Hotels & Resorts, Middle East, Africa & India

Multi global awards winner in the Tourism & Hospitality fields, Haitham Mattar is currently Senior Advisor to the Saudi Ministry of Tourism Advising on structuring the Saudi Tourism Authority and delivering on the Saudi tourism promotion strategy.

This includes building capacity, market research and studies, delivering product development plans, tourism infrastructure plans, trade engagement and promotion plans, source market development and airlift.

As former CEO of the Ras Al Khaimah Tourism Development Authority from 2015 – 2019, where he successfully repositioned Ras Al Khaimah to become one of the fastest growing destinations in the world, exceeding the target of one million visitors in the first three years, droving economic growth and winning a number of global travel awards and personal accolades.

With more than 25 years of experience in global destination and hospitality management and marketing, Mattar has also held senior roles with leading global brands including Marriott, InterContinental Hotels Group (IHG), and Hilton Worldwide.

Mattar’s cross-continent experience and valuable global insights allowed him to effectively lead Ras Al Khaimah’s destination growth strategy, through capturing existing and emerging source market movements and international tourism trends. He was also instrumental in the concept and delivery of globally recognized tourism demand generators in the emirate including Jebel Jais Flight: the world’s longest zipline and the region’s first Via Ferrata.

In 2017, Mattar was elected as Vice Chair of the UNWTO Board of Affiliate Members as well as being appointed as a member of the steering committee for the UNWTO 2017 International Year for Sustainable Development in Tourism.

Mattar was also named a full-time advisory board member of the Global Thinkers Forum (GTF) in 2018, and an Advisory Board Member of Al Marjan Development. Mattar is also a member of the Steering Committee of the Ras Al Khaimah Department of Economy and was appointed in 2018 as a member of the Arabian Travel Market Advisory Board by Reed Travel Exhibitions. In August 2018 Ras Al Khaimah Tourism Development Authority joined WTTC as a member, being represented by Mattar

Named ‘Tourism Promotion CEO of the Year’ at the Global CEO Excellence Awards, Mattar was featured in the Arabian Business ‘most powerful Arabs’ list, in addition to being named ‘Leisure and Tourism CEO of the Year’ at the prestigious CEO Middle East Awards and ‘Business Leader of the Year’ at the Hospitality Excellence Awards in 2018.

A Lebanese-born American citizen and Arabic speaker, Mattar holds a Batchelor’s degree in Marketing from the University of Central Florida, USA, and a MBA in Marketing from the University of Liverpool, UK.

Why Germans are optimistic about foreign holidays this year

Industry News: 27th May 2020

Germany is planning to lift a travel warning for its 26 fellow EU countries plus Britain, Iceland, Norway, Switzerland and Liechtenstein from June 15 providing infection rates remain under control, according to a government source in Berlin speaking to Reuters 

Under the new proposal, the general travel warning that has been in place since March 17 would be replaced by individual advice tailored to the spread of the pandemic in each country, potentially allowing Germans to holiday abroad this summer.

In another positive move, people living in Norway, Sweden, Finland and Germany can now visit partners in Denmark by signing a simple declaration rather than having to provide photos, phone records and other proof of a relationship, the Danish justice minister, Nick Hækkerup, said.

The premiers of Germany’s 16 states are due to discuss with the chancellor, Angela Merkel, on Wednesday how to further relax restrictions aimed at containing Covid-19 after its initial relaxation, two weeks ago, showed no significant impact on infections.

More German federal states have announced unilateral steps to loosen restrictions, creating a patchwork of wildly varying rules on physical distancing within Germany and moving control away from Chancellor Merkel.

Winfried Kretschmann, the premier of Baden-Württemberg, said on Tuesday his state would allow seated public events with up to 100 people from 1 June. Other states
made similar announcements, with the mayor of Hamburg saying the the city state would soon reopen cinemas, open-air swimming pools and gyms.

According to The Guardian in the UK, there was no official confirmation of a report, citing a draft document, in the Bild tabloid that Merkel, under pressure from state premiers, had already agreed to ease some remaining rules – including on the numbers of visitors allowed in people’s homes – by June 29 instead of July 5, as originally planned.

 
 

 

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German government gives Lufthansa €9 billion bailout

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

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

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’

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

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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