Tag Archives: COVID-19

ILTM has commissioned a white paper to underpin the true value of luxury travel to small, medium sized and large businesses across the world. The report by Barton Consulting brings clarity to the numbers of people employed – 90 per cent of whom are working within small businesses or individual operations – and the contribution high net worth (HNW) travellers make to every sector. The report is further explained in a podcast entitled ‘Luxury Travel’s true impact on business and employment.’ Alison Gilmore, Portfolio Director, ILTM, says, “The challenge of COVID-19 has brought the realities of our world into sharp focus and none more so than our international inter-connectivity and dependence on the freedom to travel. The travel industry is one of the greatest catalysts for this globally-linked system and is also a far greater mechanism for the dispersal of wealth to local economies than has been recognised until now.” In the podcast, the report’s author, Barton’s Winston Chesterfield, explains how so few can make such a big economic impact by spreading their wealth to benefit local economies, communities, individuals and businesses. He explores how these individuals will be the first to kick start the industry post COVID-19 and why the wealth they control is vital to #keeptheworldmoving. “We wanted to contribute to the luxury travel sector and provide some new insight, facts and figures that we hope will give comfort to those whose livelihood has suffered as a result of the COVID-19 shutdown of this industry. When the time is right, we believe a new future will emerge and ILTM will be here as a catalyst, however long this journey takes,” added Gilmore.

The International Air Transport Association (IATA) called for governments to work with the industry on confidence-boosting measures in the face of an anticipated slow recovery in demand for air travel. “Passenger confidence will suffer a double whammy even after the pandemic is contained—hit by personal economic concerns in the face of a looming recession on top of lingering concerns about the safety of travel. Governments and industry must be quick and coordinated with confidence-boosting measures,” said Alexandre de Juniac, IATA’s Director General and CEO. An IATA-commissioned survey of recent travelers found that 6 per cent anticipate a return to travel within one to two months of containment of the COVID-19 pandemic but 40 per cent indicate that they could wait six months or more; and 69 per cent indicated that they could delay a return to travel until their personal financial situation stabilises. Early indications of this cautious return-to-travel behaviour are seen in the domestic markets of China and Australia, where new coronavirus infection rates have fallen to very low levels: China- Domestic demand began to recover when the rate of new COVID-19 infections in China fell into single digits and rapidly headed towards zero (measured by new infections as a percentage of the seven-day moving average of total COVID-19 cases). While there was an early upswing from mid-February into the first week of March, the number of domestic flights plateaued at just over 40 per cent of pre-COVID-19 levels. Actual demand is expected to be significantly weaker as load factors on these flights are reported to be low. China accounts for some 24 per cent of all domestic passengers. Australia- Domestic demand continued to deteriorate even after the rate …

Etihad plans to operate a reduced network of scheduled passenger services from May 1 to June 30, with the aim of gradually returning to a fuller schedule as and when the global situation improves; subject to UAE government imposed travel restrictions being lifted on passenger travel. Etihad is also continuing to operate a growing schedule of special passenger flights allowing foreign nationals in the UAE the opportunity to travel out of the country, and to carry essential belly-hold cargo such as perishables, pharmaceuticals, and medical supplies. To date, the airline has also repatriated almost 600 UAE nationals on return services. Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group, said, “We remain cautiously optimistic and will push ahead with our plans to resume normal flying, while striving to better serve and support our customers and our employees. While the intention is to assume a ‘business as usual’ approach to the restart of our operations, the aviation landscape has changed, and how it will look month by month is difficult to predict. This has necessitated a fundamental shift in focus for us. However, the cumulative gains achieved by our ongoing transformation, and the unwavering support of our shareholder, has left us in a relatively strong position to withstand any instability. We will pivot on this and act with agility to seize opportunities we may not have previously considered. “We are implementing a series of network-wide route and fleet efficiencies, while conducting an extensive brand study and trialing new service concepts in our guest experience proposition. We are also using this time to drive further internal improvements in the efficient use of automation and technology across all areas of the business, while …

The World Tourism Organization (UNWTO) has released a set of recommendations calling for urgent and strong support to help the global tourism sector not only recover from the unprecedented challenge of COVID-19 but to ‘grow back better’. The recommendations are the first output of the Global Tourism Crisis Committee, established by UNWTO with high-level representatives from across the tourism and from within the wider United Nations system. Recognising that tourism and transport has been among the hardest hit of all sectors, the recommendations are designed to support governments, the private sector and the international community in navigating the unparalleled social and economic emergency that is COVID-19. “These specific recommendations give countries a check-list of possible measures to help our sector sustain the jobs and support the companies at risk at this very moment. Mitigating the impact on employment and liquidity, protecting the most vulnerable and preparing for recovery, must be our key priorities,” said Zurab Pololikashvili, Secretary-General, UNWTO.

Etihad Airways has announced a series of special passenger flights from Abu Dhabi to Brussels, Dublin, London Heathrow, Tokyo Narita and Zurich, in addition to those previously published. The airline has been operating special flights which have allowed passengers stranded in the UAE due to COVID-19 restrictions, the opportunity to return home. The flights also support the ‘UAE Food Security Program’ by utilising belly-hold capacity of passenger aircraft for cargo. The airline continues to repatriate UAE citizens on return sectors, wherever possible, and carry fresh produce as belly-hold cargo back to Abu Dhabi. In addition to these newly announced destinations, Etihad continues to operate special passenger flights from Abu Dhabi to several destinations including Amsterdam, Jakarta, Manila, Melbourne, Seoul Incheon, and Singapore.

The world’s largest annual airport industry B2B platform has been rescheduled to take place from October 26-28, 2020 at the Dubai World Trade Centre (DWTC) where it was scheduled earlier for June. The new dates reflect the aviation industry’s confidence of normalcy returning to global markets by then and the lifting of extensive travel restrictions around the world following the COVID-19 pandemic. Organised by Reed Exhibitions Middle East under the patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, the event is supported by Dubai Civil Aviation Authority (DCAA), Dubai Airports, Dubai Aviation Engineering Projects (DAEP) and dnata, amongst a host of global and regional aviation bodies, suppliers’ associations and working groups. His Excellency Mohammed Abdulla Ahli, Director General of Dubai Civil Aviation Authority and CEO of Dubai Air Navigation Services (dans) said, “Every industry has come to a standstill due to the unforeseen circumstances we are faced with. Our past experiences of handling crises will help us to bounce back into the aviation business, once the crisis is contained.” Airport Show is expected to attract 375 exhibiting companies and over 8,500 visitors coming from almost 100 countries. Now in its 20th edition, the event showcases the most advanced global aviation technologies and allows attendees to participate in a series of conferences, matchmaking programmes and workshops. The collocated Global Airport Leaders Forum (GALF) and women in Aviation General Assembly will host over 1,500 delegates and 100 speakers, covering the latest industry developments across 4 key themes of Air Traffic Control, Airport Security, Airport Passenger Experience and Ground Handling. Last …

UAE Minister of State H.E. Zaki Nusseibeh will be sending a message of unity and solidarity in response to global challenges presented by COVID-19 by hosting a live social media event on April 16. The Ministry of Foreign Affairs and International Cooperation will be holding the online cultural marathon symposium to be attended by UAE Ambassadors representing the USA, Canada, UK, Germany, Belgium, France, Italy, Spain, India, Singapore, China, and Australia. With the participation of museum directors, artists, design specialists, and cultural institutions discussing the impact of the COVID-19 pandemic and offering solutions and insights, the event will last for over 24 hours. As the UAE intensifies its efforts to support art, the online symposium will serve as a meeting point for arts professionals around the world to explore ways to emerge from this crisis as a global community.

Abu Dhabi National Hotels (ADNH) requested all hotel groups to be considerate towards their staff members in time of COVID-19 outbreak, when hospitality industry is at a standstill. Giant hotel groups operate in different countries, some with strong social security systems while others offering weak or totally inexistent support, leaving employees at risk when forced out of work. Khalid Anib – Chief Executive Officer – Abu Dhabi National Hotels (ADNH), said “I urge operators to act responsibly and share a tiny portion of their generous fees collected during the previous years to support the staff across all levels, particularly associates at the properties; and to seriously consider creating some sort of solidarity fund dedicated to preserve the dignity of employees should something like this arise in the future.” The hospitality industry all over the world has been dramatically disrupted by the ongoing drastic measures imposed yet critical to preserve life. The main focus facing every hotel owner today is how to deal with this unprecedented challenge of occupancies having reached unbearable levels in a very short period of time with growing uncertainties around the rebound and related timing. Forcing employees to be on paid / unpaid leaves is unfortunately necessary to partially reduce payroll costs; owners will continue to bear in full all other employee benefits: accommodation, food, insurance etc. along with other massive fixed liabilities such as loans and interest repayments / building maintenance and insurances / necessary capital expenditures and others. Anib added, “I have recommended the release of a portion of each employee’s accrued end of service benefit to financially help them to support their loved ones’ back home during such difficult times. I would like to …

Further to the previously announced schedule of special passenger flights, Etihad Airways will add additional flights from Abu Dhabi to Melbourne and Amsterdam. The airline has been operating special flights which have allowed passengers stranded in the UAE due to COVID-19 restrictions, the opportunity to return home. The flights also support the ‘UAE Food Security Program’ by utilising belly-hold capacity of passenger aircraft for cargo. The airline continues to repatriate UAE citizens on return sectors, where possible, and carry fresh produce as belly-hold cargo, on the return segments back to Abu Dhabi. In addition to Melbourne and Amsterdam, Etihad continues to operate special passenger flights from Abu Dhabi to several destinations including Seoul Incheon, Singapore, Manila, and Jakarta.

Today more than half Accor branded hotels worldwide are closed, likely over two thirds in the coming weeks. The abrupt deterioration in the situation has prompted the Group to take drastic actions across its global operations; hence it has launched ‘ALL Heartist Fund’, a COVID-19 special financial program. In these unprecedented times, the Group stands more than ever by its employees, partners and communities, providing time, resources and access to its local and global network. Given the situation, the Group has decided to take aggressive, incremental actions. Collectively, these include: travel ban, hiring freeze, reduced schedules and /or furloughing for 75 per cent of global head office teams for Q2, resulting in a minimum €60m reduction in G&A for 2020; reviewed recurring investment plan for 2020 resulting in a €60m reduction in capital expenditures; the Group is further streamlining all other costs (e.g. sales, marketing, IT), in line with lower system wide revenues. In these unchartered territories, Accor’s Board of Directors has decided to complement management actions outlined above, by withdrawing its proposal for a 2019 dividend payment of c. €280m. After consulting with the Group’s main shareholders, JinJiang International, Qatar Investment Authority, Kingdom Holding Company and Harris Associates, Accor has decided to allocate 25 per cent of the planned dividend (€70m) to the launch of the ‘ALL Heartist Fund’, a COVID-19 special purpose vehicle. This fund will typically assist: Group’s 300,000 employees, pledging to pay for their COVID-19-related hospital expenses, for those who do not have social security or medical insurance; on a case by case basis, furloughed employees suffering great financial distress; on a case by case basis, individual partners facing financial difficulty This fund reflects the ambition …