Today’s Future of Travel blog looks at some of the countries that could be hit hardest by a tourism drop. I also have great news for Norwegian Cruise Line, which has received $2 billion US in financing, plus news about Canadian attractions being left behind by government aid programs, hotel cleanliness programs and news from both Royal Caribbean and Silversea cruises. Oh, and baseball, too!
COVID-19 And Tourism Impact
We all know from the headlines that Italy and Spain had a hard time with COVID-19, and that the UK and the US seem far worse off than Canada. But what impact will COVID-19 and travel restrictions have on tourism?
Nobody can say for sure, but Forbes.com has released a terrific study that looks at the total contribution that tourism makes to various world economies. By looking at that, one can extrapolate which countries would be hit hardest by a lack of world travel, at least in theory.
The Forbes story said Spain is the most tourism-reliant of the countries they studied, with 14.3% of GDP, followed by Italy at 13.0, China (11.3), Germany (9.1), the UK (9.0), USA (8.6), France (8.5) and Iran (6.8).
It’s interesting, but it’s a very narrow study looking at a very limited number of countries where COVID-19 has struck hardest. The study fails to look at the Caribbean, which is said to be the most tourism dependent region on earth.
In a recent interview with TravelPulse Canada’s John Kirk, the tourism minister of Barbados said tourism accounts for more than 40% of the country’s GDP. As I recall, the numbers are similar for other parts of the Caribbean, as well, I’m sure, for other countries in the world and for U.S. states such as Florida and Hawaii.
According to the stats I found, Canada is better off than most countries, with a tourism to GDP percentage of 6.4. That’s not bad, but there are still thousands of business across the country, from the Alberta Rockies to Ontario’s cottage country and small hotels in the Maritimes and Newfoundland that rely on tourism to keep them going; and at maybe a two or three-month window of visitation at that.
Even if Canadians feel they can start travelling in June, how many of us will have the money to plunk down at a resort on Prince Edward Island, let alone in Muskoka?
Things are obviously tough all over. According to a report I saw from CBC News in Los Angeles said tourism had been growing steadily in California for 10 years, but that the coronavirus outbreak has put a screeching halt to that trend.
Tourism Economics projects California will lose $72.1 billion in statewide travel-related spending in 2020. The study also found the pandemic will affect 613,000 California jobs by the end of May, more than half the tourism industry’s workforce.
Meanwhile, a report in The Economist said that data compiled by Sojern, an ad-tech firm, global online searches in April for flights departing in the summer have collapsed, but interest in flights scheduled for later in the year has held up better. Searches for international flights to New York City arriving in July, for example, are down by 89%; for flights landing in December, searches are 53% below where they were in 2019. Hotel searches show a similar trend. Foreign searches for lodging in Spain in July have tumbled by 94%; for December they are down by 74% from where they were a year ago.
Economist story here: https://www.economist.com/graphic-detail/2020/04/29/the-travel-industry-is-going-local
The Return of baseball?
It’s going to be a while before we see packed stands at a sporting event again.
I know this is a travel blog. It even says Jim Byers Travel on my site. But, hey, a lot of folks travel to see a ball game. And I spent six years (my wife says it felt like 15) covering the Blue Jays and traipsing all around North America covering games, so I’m going to veer off for a minute and talk about baseball.
CBS Sports on Wednesday published a story saying that Major League Baseball is expected to submit a plan to the players union in the next couple weeks in the hopes of starting the 2020 season.
There have been many trial balloons floated on the idea, including plans to have teams play all their games in Arizona (a plan that appears to have been dropped) and another that would re-organize the majors into three divisions and see games played at a limited number of stadiums, likely for now without fans.
The idea of a game without fans is weird, but if you grew up near Oakland in the 1970’s like I did you might have an idea what it was like. I attended games at the Oakland Coliseum as a kid with less than 2,000 fans in a stadium that fit 50,000. I often thought they should launch a marketing campaign with the slogan, “A foul ball for every fan.”
No, it wouldn’t be the same. But, as a sports fan, I’d give one of my kid’s right arms to be able to watch Bo Bichette and Vlady Guerrero walk up to the plate in a game sometime soon. I want to hear the crack of a bat and the “steeeeerrrriiiikkkkkke” call of an umpire and hear the soothing voice of my old friend Dan Shulman coming over the TV set.
Fingers crossed.
Canadian Attractions Need Help
Canada’s Wonderland
Attractions Ontario is calling for a large helping hand from government.
In a press release issued Wednesday, it was stated that nearly 100% of attractions in Canada – from your local bowling alley, family entertainment centre and movie theatre, to huge seasonal businesses like Canada’s Wonderland – have been shuttered since mid-March. In a report dated March 27th, Destination Canada, a Crown corporation owned by the government of Canada, predicted that within 60 days, 60% of attractions may close permanently.
“Attractions are an integral part of the fabric that makes the community a vibrant place to live, work and visit,” says Troy Young, CEO of Attractions Ontario He asks: “What are you going to do with your family and friends if everything around you is closed permanently? How is your hockey association going to host a tournament if there is nothing for teams to do in the evenings?” Attractions are a main influencer of peoples’ decisions to go somewhere; if these businesses no longer exist, other hospitality businesses in the community will suffer – restaurants, hotels, retail, etc.
Attractions are falling through the gaps of the current measures; seasonal businesses do not currently qualify. A 75% wage subsidy does not help attractions that have had to furlough their staff, and the new rent assistance is falling flat with landlords.
Attractions Ontario is calling upon the Federal Government to step up and save this vital industry through a new initiative they call Save Our Attractions (www.saveourattractions.ca). The goal is to draw attention to the unique challenges faced by attractions across the county; and to ensure Canadian Communities remain a vibrant place to live, work and visit. As a result, they are requesting the federal government to do the following:
- Provide a government grant made up of the HST earned by the business during the last two quarters of 2019
- Provide forgivable loans through banks but funded and guaranteed by the federal government, paid back through newly generated HST. With no revenues coming in, traditional bank rations won’t work
- Extend the CEWS to the end of the quarter following the re-opening of attractions
- Make adjustments to the Canada Emergency Commercial Rent Assistance Program
Norwegian Cruise Line: A Quick Turnaround
On Tuesday we saw headlines of financial trouble for Norwegian Cruise Line, the world’s third-largest cruise company. One of their security filings suggested they might not have enough cash to wait out the COVID-19 pandemic, and there was even a brief mention of bankruptcy proceedings.
But the company’s economic picture did a major U-turn overnight, and NCL Holdings said on Wednesday that it had secured $2 billion US in financing and was now in good shape.
Here’s the story from my friends at TravelPulse Canada: https://ca.travelpulse.com/news/cruise/nclh-successfully-secures-more-than-2-billion-of-additional-liquidity.html
Silversea Cruise Offer
In other cruise news, the Silversea cruise people sent some of its previous customer a note to say they’re offering a Double Bonus program. Folks who book now can get a Silversea voyage with “a very low deposit” and also get a $1,000 USD on-board credit.
Royal Caribbean Extends “Cruise With Confidence” Plan
A lovely cruise ship. JIM BYERS PHOTO
Royal Caribbean Group today said it’s extending “Cruise with Confidence” cancelation policy to sailings through April 2022 and introducing new rebooking options to make it that much easier for partners and guests.
“Vacation plans are proving a bit difficult to nail down lately, and this extension ensures our guests have the tools they need to feel confident and secure in their vacation planning, especially since we’re all dreaming of our next getaway now. Similar to the existing “Cruise with Confidence” policy, the extension provides guests the flexibility to cancel their cruise up to 48 hours prior to sailing, in exchange for a full future cruise credit, now applicable to all sailings through April 2022. There are also enhanced Cruise with Confidence rebooking options now available to travelers and their travel advisors, which include:
- Best Price Guarantee: Guests can choose to change the price and promotional offer on their reservation up to 48 hours before their cruise
- Lift and Shift: Vacationers have the option to simply “lift and shift” their cruise to the same itinerary for the following year as long as the booking is made on or before August 1, 2020.
More Hotels Boosting Cleanliness Programs
Radisson Hotel Group has joined the rush of hotel companies with new cleaning/sanitation programs to battle COVID-19 fears and boost consumer confidence.
Radisson Hotel Group today announces its Radisson Hotels Safety Protocol, a new program of in-depth cleanliness and disinfection procedures, in partnership with SGS, the world’s leading inspection, verification, testing and certification company.
One of Radisson Hotel Group’s highest priorities is the continued health, safety and security of its guests, team members, and business partners. The company has conducted a thorough review of all existing health and safety processes and worked with a team of experts to develop and validate additional protocols. These enhanced protocols, operational guidance and comprehensive health and safety procedures validated by SGS, will be adapted based on local requirements and recommendations, to ensure guests’ safety and peace of mind from check-in to check-out. Radisson Hotels Safety Protocol will further strengthen Radisson Hotel Group’s existing rigorous sanitation, cleanliness and disinfection guidelines at hotels globally.
These guidelines include hand sanitizing stations at all entrances, the use of Personal Protective Equipment (PPE) and protective screens, enhanced and recorded cleaning and disinfection frequency, social distancing in all areas of its hotels, including in the Meeting & Event facilities, training in local, Centers for Disease Control, or World Health Organization recommendations and health guidelines, reiteration of food safety standards and comprehensive staff training. Radisson Hotel Group’s enhanced cleaning and disinfection guidelines have been developed in collaboration with global hygiene solutions provider, Diversey, by uniting best-in-class cleaning and hygiene solutions with reinforced protocols and patented technology designed for healthcare.
Meanwhile, Marriott officials issued a new video with their CEO talking about the program they brought in a couple weeks ago. Here’s the link: https://news.marriott.com/news/2020/05/06/an-update-from-our-ceo-marriotts-commitment-to-cleanliness
