As sprouts of recovery are being seen across Asia markets, as evidenced by the gradual return of domestic travel, there has been an air of cautious but significant optimism in the industry… a glimmer of light at the end of this long, dark tunnel.
Following the virus’ peak in mid-February in China, hospitality saw an almost immediate but steady rebound, evidenced by a clear uptick in bookings. According to an STR survey, roughly 87% of hotels across China reported being open as of late March.
Triptease also released data that highlighted a strong rebound in direct bookings in North Asia markets like Japan, South Korea and Hong Kong in particular. “Despite early panic and severe government lockdowns, Japan and South Korea have started showing green shoots… Hong Kong’s direct bookings grew 270% over the following thirty days [since its lowest point].”
Sojern attributed the quick recovery in Asia markets to the greater level of safety and confidence locals and residents feel with respect to how these countries handled the crisis. It shows that travel has come close to a standstill, but it has not halted. Demand is beginning to return, furtively perhaps but it is there nonetheless and it is good reason to have hope. But we are not out of the woods yet.
The evolution of the pandemic is rapid and early signs of recovery are still no guarantee that we are in the clear, whether as an industry or as a society. According to STR, while there are clear signs of travel activity across APAC markets, it is important to understand it may not yield the same kind of V-shaped recovery witnessed after the 2003 SARS outbreak.
“We have no idea yet what the timeframes are because until you have zero cases and you have it all under control, like China, you cannot move things back to a semi- or close to a normal reality,” said Jesper Palmqvist, area director, APAC, STR.
For example, Singapore has largely been credited for its rapid response to Covid-19 in early February, not only in containing the spread – by shutting its borders and effective contact tracing – but also for maintaining a strong level of normality for its residents and businesses. As it now faces its second wave of positive cases – from returning travellers and a surge in local cases – the city-state has had to rapidly change tack. On April 3, Singapore declared a ‘circuit breaker’ – the closure of all non-essential services, plus stricter social distancing measures, for a period of at least one month.
It comes at a crucial time, particularly as local cases have begun to surpass imported ones. On April 5, Singapore had a record number of cases, mainly linked to migrant worker dormitories that house over 20,000 people. The government has indicated its intent to convert more spaces to house some of these workers, who live in infamously close conditions, to further reduce the spread of infection.
As Singapore goes into its own version of a ‘lockdown’, it has demonstrated that early signs of recovery cannot be taken for granted; the situation remains very much in flux. As echoed by Palmqvist, recovery is “a constantly moving target.”
So, until those early sprouts of recovery really take root, players in travel must figure out how they can become a fundamental part of a bigger solution. Businesses will need to get creative about their approach to sustaining their workforce and keeping operations moving by whatever means necessary.
With filling hotel beds with ‘traditional’ guests currently out of the question, hospitality brands worldwide have to rethink what purpose they want to serve in this crisis, and how their assets can lends themselves to the world’s recovery.
Repurposing hotels for global recovery
In Singapore, hotels have pivoted to become a fundamental part of the nation’s recovery strategy by providing accommodation for all quarantined individuals. The Singapore government has reportedly block-booked over 7,500 rooms and services apartments for the next few months and they are strictly reserved for those serving 14-day stay home notices (SHN). Some of the major hotel chains involved include IHG, Park Hotel Group, Pan Pacific Hotels Group, and Accor.
Singapore’s national development Minister Lawrence Wong, described the measures as “not an indulgence… [nor] unnecessary spending by the government. It is an important and extremely critical public health measure.”
Its Ministry of Manpower (MOM) is also working with Singapore Hotel Association to retrain and recruit hotel employees as temporary staff to keep employment rates high and arm them with new skills applicable to different sectors.
“Many of them were just doing customer service, but now they’re learning data analysis, engaging the public and learning about new industries,” said Minister of State for manpower Zaqy Mohamed.
Meanwhile in the US, Hilton and American Express have pledged one million hotel room nights to frontline medical professionals who need to self-isolate from their families. Hilton is currently working with 10 associations currently representing over a million healthcare workers, to provide access to the programme. Hotel staff will have received additional training on health and safety measures to safeguard their own and their guests’ wellbeing.
In Australia, the Victorian government has committed $20m to pay for hotel rooms for healthcare workers who test positive for coronavirus or need to self-isolate for public safety, which could support up to 8,000 workers. New South Wales is spending $60m to do the same.
Airbnb has also launched a worldwide initiative to provide support for frontline workers and responders by calling for hosts to offer up their homes for free, at a discount or full price. To incentivise hosts to take part, it has promised to waive all Airbnb fees for the first 100,000 bookings. It has partnered with the International Medical Corps, International Rescue Committee, and International Federation of Red Cross and Red Crescent Societies
In collaboration with the public sector, hospitality players can repurpose themselves to become a critical component of each nations’ recovery, whilst still being able to protect and even upskill their own workforces. In doing so, they can become even stronger for when travel does, eventually, resume.
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