Eliana Willis

UKinbound has released its latest business barometer results, indicating that the recent government stimulus, designed to help businesses and the economy, falls short.
The trade body has found recent support will not help a significant number of valuable companies in the inbound tourism industry.
Over half (52 per cent) of businesses stated that the VAT reduction would not be beneficial to them, with just one in five stating the policy would positively impact on business.
When questioned on the merits of the job retention bonus, nearly two-thirds of businesses stated they hoped to be eligible, however one in ten companies said that they do not expect to bring anyone back from furlough.
Confidence levels about the impending 12 months also sit at a near-record low, with just 13 per cent of respondents stating they are confident about bookings/visitor revenue/customer orders in the next year.

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The survey also asked members about their bookings/visitor numbers/customer orders in quarter two, with 96 per cent confirming they were down on the same period last year, by an average of 92 per cent.
Just last month, July, the association expressed grave concerns that its tour operator and destination management company members will need to make around 10,000 job cuts, and over half will fail within the next six months if the government does not intervene.
Joss Croft, chief executive of UKinbound, commented: “Our latest business barometer results further confirm that many inbound tourism businesses are in critical need of specific support, and that the government’s ‘one size fits all approach’ leaves many out in the cold.
“Our members are hopeful that the international market will return from spring 2021, but this leaves a gaping hole in business finances until then, and although the VAT cut and job retention bonus is welcome, they alone will not help previously profitable inbound tourism businesses stay afloat.”
Image: VisitBritain
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TUI has secured an additional €1.2 billion in stabilisation funding from German state-owned development bank KfW.
The deal will see the holiday giant extend an existing credit line by €1.05 billion.
The drawing of this amount is subject to TUI issuing a convertible bond in the amount of €150 million to the Economic Stabilisation Fund and a waiver by the bondholders of the senior notes due in October next year.
Both conditions as well as other formal requirements need to be fulfilled by September 30th.
The company said the €1.2 billion stabilisation package strengthens its position and would provide sufficient liquidity in the current volatile market environment.
TUI chief executive, Fritz Joussen, said “The additional stabilisation package allows us to focus on the operations and at the same time to drive forward the realignment of the group.
“Already before the pandemic, we had initiated the next transformation of TUI: the transformation into a digital platform company.
“This transformation will now be significantly accelerated.
“Our integrated business model is intact. Summer holidays are taking place again in all markets.
“We introduced massive cost reductions early and implemented them quickly and consistently.

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“However, no one knows at present when a vaccine or medication will be available and what effects the pandemic will have in individual markets in the coming months.
“Therefore, it is right and important to take further precautions together with the German Federal government.”
Return to Market
Also today, TUI said it had successfully resumed travel activities in all European markets.
In mid-June, the company was the first travel company to bring German guests to Majorca in a pilot project.
After the official end of the travel warnings for most European destinations, holidays were also launched in the remaining TUI markets at the beginning of July.
In July, more than half a million customers across Europe travelled with TUI on their summer holidays.
Furthermore, demand for holidays remains “very high” – since the resumption of travel activities, 1.7 million new bookings have been received group-wide.
However, TUI reported added losses on an EBIT basis for the first nine months of year, including the impact of Covid-19, totalled €1.9 billion.
Joussen added: “Our integrated business model with aircraft, transfers, hotels and cruise ships is intact and has proved its worth in this difficult environment.
“During the crisis it has enabled us to be the first travel company to fly guests on holiday.
“The summer holidays are conducted responsibly and with the highest standards of hygiene in all markets.”
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The Global Business Travel Association, has reiterated the importance of cooperation between the European Union, Canada and the United States to restore safe travels and reboot the economy.
The body is urging the European Commission, EU governments, Ottawa, and the White House to pursue talks to find a resolution for transatlantic travel, based on reciprocity, proportionality, and the latest scientific advice.
“GBTA has repeatedly called on these governments to adopt a coordinated approach in responding to Covid-19 and the evolving situation.
“As a select number of countries recently chose to reinstate travel restrictions, we would like to stress the importance of closely following the recommendations of the

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European Centre for Disease Prevention and Control (ECDC), the United States Centres for Disease Control & Prevention (CDC), Public Health Agency of Canada and the World Health Organisation (WHO) to ensure consistency and restore consumer confidence in air travel,” said Dave Hilfman, executive director of the GBTA and a long-time senior airline leader.
“We encourage open conversations to continue, as well as appropriate communication to the general public. Maintaining transatlantic ties is in the best interest of citizens and the economies of the for all,” added Hilfman.
Any compromise on travel is, unlikely, until the United States reduces the number of Covid-19 cases it reports daily, with 53,000 new infections recorded yesterday.
This compares to 385 in Canada, and just a handful in many European countries.
“Safety is paramount and should weigh heavily in discussions of restarting travel.
“Contact-tracing applications can effectively help fight the pandemic but can only do so if they are subject to a common set of standards to enable rapid exchange of information and limit the risks of further outbreaks,” added Mark Cuschieri, chair of the European advisory board at the GBTA.
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Saga will become one of the first insurers in the UK market to extend the terms of its travel insurance policies to include some cover for cancellation due to Covid-19.
The policy update will apply to all new and renewing customers.
The cover means that any customer taking out a new policy from today will be able to claim up to £10,000 per person insured if they need to cancel a holiday because they receive a positive Covid-19 test in the 14 days before their trip departure date.
These changes have been introduced to provide customers with the confidence to travel in the coming weeks and months. 
It is also in response to increasing customer demand – cancellation cover was named as the second most important thing companies could do to make people more comfortable about travelling abroad in a recent Saga survey.

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As travel advice continues to change, Saga will review its policy terms to ensure customers receive significant value from the cover.
Saga will also introduce further elements of cover based on customer feedback.
Kevin McMullan, head of product, Saga Health and Travel Insurance, said: “With travel restrictions continually changing, many people may be worried that much-anticipated holiday plans could be cut short, or increasingly reluctant to go at all.
“Now more than ever people need to feel confident and reassured when planning to travel overseas.
“We’re continuing to review and update our products to ensure they reflect the needs of our customers.
“However, we know the impact of coronavirus is far-reaching.”
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Entertainment giant Disney lost $4.7 billion (£3.6 billion) in the three months to June, as the virus forced it to close theme parks and delay film releases and production.
The figure is a sharp fall from the nearly $1.8 billion profit the company reported in the same period last year.
Disney said the pandemic was largely responsible for a $3 billion hit to its operating income.
In turn, this was mostly due to the disruption to its theme parks, where revenues plunged 85 per cent compared to 2019, chief financial officer Christine McCarthy said.
Overall revenue fell 42 per cent compared with last year to $11.8 billion.
The company said in a statement to markets: “The impact of Covid-19 and measures to prevent its spread are affecting our segments in a number of ways, most significantly at parks, experiences and products where we closed our theme parks and retail stores, some of which have now re-opened, suspended cruise ship sailings and guided tours and have seen an adverse impact on our merchandise licensing business.

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“Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses and to a lesser extent, at our merchandise licensing and retail businesses.”
Disney said its domestic parks and resorts, cruise line business and Disneyland Paris were all closed for all of the three months to June.
Parks in Asia were closed for a portion of the quarter, with Shanghai Disney Resort re-opening in May and Hong Kong Disneyland Resort following in late June.
However, Hong Kong Disneyland Resort closed again in July.
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