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      IATA calls for closer European coordination on border reopening

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      The International Air Transport Association has urged European governments to coordinate efforts to lift border restrictions and find alternatives to quarantine measures in order to avoid further economic damage.
      The call comes as part of an update on the impacts of the Covid-19 pandemic on air passenger numbers, employment and economies across the region.
      Although the European market has seen an increase in the number of flights in recent months, supported by the reopening of borders between countries of the Schengen area and the non-Schengen EU states, flights are still more than 50 per cent below the same period in 2019.
      Passenger numbers are currently forecast to fall by around 60 per cent in 2020, which represents about 705 million passenger journeys.
      The near-term outlook for recovery in Europe remains highly uncertain with respect to the second wave of the pandemic and the broader global economic impact it could have.

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      Passenger demand in Europe is expected to recover gradually and will not reach 2019 levels until 2024.
      With air travel not recovering as originally hoped, the negative impact on employment has increased.
      More than seven million jobs supported by aviation (including tourism) in Europe are now at risk (up from around six million estimated in June).
      “It is desperately worrying to see a further decline in prospects for air travel this year, and the knock-on impact for employment and prosperity.
      “It shows once again the terrible effect that is being felt by families across Europe as border restrictions and quarantine continue.
      “It is vital that governments and industry work together to create a harmonized plan for reopening borders,” said Rafael Schvartzman, IATA regional vice president for Europe.
      Governments must look at a coordinated way to lift travel restrictions and find alternatives to quarantine requirements, said IATA.
      International cooperation to isolate and precisely manage risks is critical to rebuilding confidence in travel.
      Of crucial importance is the layering of measures as an alternative to quarantine, including the universal implementation of the ICAO biosafety measures, comprehensive contract tracing, and the potential for testing regimes that are fast, accurate, scalable and affordable.
      A stop-go-stop approach to lifting restrictions cannot be the answer, the body added.
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      WTTC calls on UK to offer global tourism leadership

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      The World Travel & Tourism Council (WTTC) has called on the UK government to offer strong leadership to save the struggling tourism sector.
      Over 100 major travel and global business leaders – from airlines, airports, hotels, tour operators and travel companies – have backed the unprecedented move.
      The industry leaders signed a letter, which called for urgent coordinated action, to UK prime minister Boris Johnson and nine other heads of state.
      These include the members of the G7 group of countries, as well as Australia, South Korea and Spain, all of which are major source markets.
      If global leaders fail to come together, WTTC anticipates irreversible damage to the tourism sector.

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      Furthermore, as the crippling travel restrictions remain in place, the number of jobs losses around the world will continue to increase.
      Gloria Guevara, WTTC chief executive, said: “As the tourism sector buckles under mounting pressure, and the global economy struggles to survive, we have to ask – who is in charge of getting us out of this crisis and will lead the world to save the jobs and secure the futures of the many millions of people globally?
      “We have reached a stage where critical action is urgently needed.
      “While we recognise each country must protect their own citizens and the priority to date has been domestic matters, any measures taken in silos moving forward will only worsen the plight of millions of ordinary people.
      “We need to transcend politics and put the millions of livelihoods, which have been affected by Covid-19, front and centre.
      “From cabin crew to hotel staff, travel agents to call centre agents, waiters to housekeepers, and many more who are the unsung heroes who depend upon a thriving tourism sector.
      “The voices of ordinary people must be heard, and we are calling on them to let world leaders know, in no uncertain terms, that the time for action is now.”
      Among those backing the WTTC call were the business leaders of major airlines, such as British Airways, Emirates, Etihad, Jet2, WestJet and Virgin Atlantic.
      Business leaders from top international hotel groups, such as Accor, Best Western, Hilton, Hyatt, InterContinental, Mandarin Oriental, Marriott, Meliá Hotels and Radisson have also supported the initiative.
      Endorsement has also come from major tour operators and travel companies, such as Abercrombie & Kent, American Express, Carlson Wagonlit, Expedia, Travelport, TUI and Uber.
      Image:  Stefan Rousseau/PA Wire/PA Images
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      UKinbound urges tailored support for tourism sector

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      UKinbound urges tailored support for tourism sector

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      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 secures new government funding as losses mount

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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.”
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      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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      GBTA calls for transatlantic cooperation to reopen travel

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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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      ABTA annual conference moves online for first time

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      The ABTA annual conference, the Travel Convention, will take place as a virtual one-day event for the first time this year.
      The show will be held on Wednesday, October 14th.
      There will be thought provoking content around the future of travel and tourism, with keynote speakers, business sessions, a range of specialist workshops and networking opportunities delivered to delegates via a virtual event portal.
      The portal will allow delegates to access the business sessions and specialist workshops, either live or on demand for up to a month after the event, network and request one to one meetings with other attendees and receive live technical assistance throughout the day.
      The business sessions will be broadcast from a virtual studio in central London, with Chris Ship, the Royal Editor at ITV News, returning to moderate for the fifth time.

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      Confirmed keynote speakers include Gloria Guevara, chief executive of the WTTC; Yael Selfin, chief economist at KPMG; and John Bevan, chief executive of dnata Travel Europe.
      The list of confirmed speakers is available on the Convention website and the full speaker line up will be released in September.
      Mark Tanzer, chief executive of ABTA, said, “We took the difficult decision a few months ago to postpone this year’s Travel Convention in Marrakech to 2021, but we look forward to welcoming our delegates there in person next year.
      “In the meantime, with the start of the recovery presenting so many challenges to businesses, it has never been more important for us to come together to discuss the future of travel and how we can rebuild confidence in customers.
      “From our virtual studio, we’ll be delivering high-level business sessions, practical workshops and time for networking.
      “It will be unlike any other Convention before it – and we look forward to seeing our delegates there.”
      More Information
      For more info information and to register, visit the official website.
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      Saga to launch Covid-19 holiday insurance

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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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      US cruise lines extend suspension of sailing into October

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      Cruise Lines International Association has announced that its ocean-going members have agreed to suspend United States cruise operations until at least October 31st.
      Lines had hoped to return on September 15th, but the lingering impact of Covid-19 travel restrictions has made the date unfeasible.
      The United States Centres for Disease Control & Prevention also had a ‘no-sail’ order in place until the end of September, meaning no ship can sail in American waters.
      A CLIA statement said: “This is a difficult decision as we recognise the crushing impact that this pandemic has had on our community and every other industry.
      “However, we believe this proactive action further demonstrates the cruise industry’s commitment to public health and willingness to voluntarily suspend operations in the interest of public health and safety, as has occurred twice prior.

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      CLIA said it would continue to monitor the situation, and mooted the earlier restart of short, modified sailings.
      According to the most recent economic impact study from the body, cruise activity in the United States supports nearly half a million American jobs and generates $53 billion annually in economic activity throughout the country.
      Each day of the suspension of United States cruise operations results in a loss of up to $110 million in economic activity and 800 direct and indirect American jobs.
      The impact of the suspension is particularly profound in states that depend heavily on cruise tourism, including Florida, Texas, Alaska, Washington, New York and California.
      Confirming the cancellation, Royal Caribbean said in a statement: “The health and safety of our guests, crew, and the communities we visit is our top priority.
      “As we work with the CDC and others toward this shared goal, Royal Caribbean Group will be extending the suspension of sailings to include those departing on or before October 31st – excluding sailings from China and Australia.
      “We will be reaching out to our guests and travel partners to share further details and address any questions or concerns they may have.”
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