A growing number of destinations around the world have restarted their tourism industries while adapting to the new normal, with the latest analysis from UNWTO showing that 40 per cent of all destinations worldwide have now eased Covid-19 restrictions on international travel.
This latest outlook, recorded on July 19, is up from 22 per cent of destinations that had eased restrictions on travel by June 15 and the three per cent previously observed by May 15. It confirms the trend of a slow but continuous adaptation and responsible restart of international tourism.
UNWTO finds that destinations with a higher dependency on tourism are more likely to be easing restrictions on travel
However, of the 87 destinations that have now eased travel restrictions, just four have completely lifted all restrictions, while 83 have eased them while keeping some measures such as the partial closure of borders in place.
Destinations with a higher dependency on tourism are more likely to be easing restrictions on travel, according to the UNWTO report. Of the 87 destinations that have eased restrictions recently, 20 are small island developing states (SIDS), many of which depend on tourism as a central pillar of employment, economic growth and development. The report also shows that around half (41 per cent) of all those destinations that have eased restrictions are in Europe, confirming the leading role of the region for the responsible restart of tourism.
UNWTO secretary-general Zurab Pololikashvili said in a statement: “The restart of tourism can be undertaken responsibly and in a way that safeguards public health while also supporting businesses and livelihoods. As destinations continue to ease restrictions on travel, international cooperation is of paramount importance. This way, global tourism can gain people’s trust and confidence, essential foundations as we work together to adapt to the new reality we now face.”
In addition, this latest edition of the UNWTO Travel Restrictions Report shows that 115 destinations – 53 per cent of all destinations worldwide – continue to keep their borders completely closed to international tourism.
Of those 115 destinations, the majority (8 per cent) have kept their borders completely closed to international tourism for more than 12 weeks, found the report.
The cost related to the travel restrictions introduced in response to Covid-19 has historic dimensions. Last week, UNWTO released the data on the impact of the pandemic on tourism, both in terms of lost tourist arrivals and lost revenues. The data shows that already by end-May, the pandemic had led to US$320 billion in lost revenues – three times the cost of the 2009 global economic crisis.
The pandemic has blown open a wide window for event businesses to re-examine and overhaul their services, in order to exceed the evolving demands of customers.
In a session at the Virtual IT&CM China and CTW 2020 on Monday, industry experts from China shared that the rise of hybrid events has caused the usual customer satisfaction yardsticks to be outdated.
Clockwise from top left: CCPIT Commercial Sub-council’s Alicia Yao moderated the session that fielded speakers Marriott International’s Becky Cao, CCPIT Commercial Sub-council’s Jack Yao and Sourcing China’s Catty Yun
To guide companies and their staff towards the new standards of operations, the China Council for the Promotion of International Trade (CCPIT) Commercial Sub-council has espoused Surviving/Service, Preparation and Actualisation (SPA), a plan to enable MICE enterprises to survive and find opportunities in the current crisis.
Jack Yao, secretary general, elaborated that under this initiative, the Sub-council is urging businesses to “reconsider the services (they) provide in the MICE ecosystem” within two quarters of a year, before moving on to Preparation by the third quarter, and actualisation in the fourth quarter.
“In a pyramid of service excellence, most companies can currently reach levels one and two to achieve basic customer satisfaction. But how can they reach level three – individual service – and level four – surprising service? If they are able to achieve customer delight, it can translate into customer loyalty, and generate higher financial as well as non-financial results,” Yao stressed.
A company should not only launch a new product or service, but also seek to make it an industry standard, opined Yao.
Citing an example, he said the Sub-council had pushed for new industry standards due to the rise of contactless delivery services in the region. Within 26 days, it launched a set of association standards, and in some 100 days, it achieved global standardisation by the International Organization for Standardization.
China-based PCO 31 Events has adopted new structures and leaned into “forced innovation” to test a new model of hybrid events. These involve a “small but smart offline” mixed with “strong online presence”, described Tony Wan, its CEO and co-founder.
One event that used this model was the 2020 World AI Conference in Shanghai, which featured speakers in a physical panel on stage and no more than 300 people in the audience. While the offline scene was greatly downsized, the online programme was abuzz with strong participatory content, good channel design, and wide social media spread, said Wan.
“We need to consider the attendees’ patience since they can leave the online session at any time. We can no longer expect participants to sit and watch videos for two days. Instead, the content can be better spread out over three, five or even 10 days. We also have to create a more high-tech and fashionable environment with live-streaming to attract different decision makers,” he shared.
Seri Ramlan Ibrahim has been appointed as the chairman of Malaysia Tourism Promotion Board, effective August 3, 2020.
Ramlan entered the Administrative and Diplomatic Service of Malaysia in 1983. His first posting was as second secretary to the Embassy of Malaysia in Jakarta in 1988. Two years later, he was reassigned to the Embassy of Malaysia in the Netherlands, but as first secretary.
In 1994, Ramlan returned to the headquarters and was assigned to the Europe Division. Shortly after, he was posted to the Embassy of Malaysia in Zagreb, Croatia, to take on the role of the Chargé d’Affaires ad interim.
He returned three years later, in 2000, to become the principal assistant secretary at the Division of South-east Asia. The following year, Ramlan was appointed as deputy high commissioner to Singapore.
His first posting as ambassador was to Bosnia Herzegovina, in 2004. In 2009, Ramlan was again appointed ambassador of Malaysia – this time to the Republic of Korea. His return from Korea in 2013 saw him heading the Bilateral Department, the second-highest post in the Malaysian foreign service. In April 2015, Ramlan was appointed as Malaysia’s permanent representative to the United Nations in New York.
In 2017, Ramlan was elected as the secretary general of Ministry of Foreign Affairs. In February 2019, he was elected as the member of Election Commission of Malaysia until July 2020.
While online meetings and events have become the norm because of travel restrictions, corporate travel managers say more research is needed to determine if it is a long-term solution especially with T&E budgets remaining flat.
Those interviewed said they had expected cost savings going virtual but discovered that virtual platforms do not come cheap, with one commenting that the three-party cost for a local virtual meeting with about 20 attendees could be about 30 per cent higher compared to booking a venue and meeting package for a face-to-face instead.
Sim: surprised that a virtual event incurs costs that are similar to an in-person event
He continued: “Depending on whether or not a studio, producer, professional cameraman, etc are needed and the cost of the platform provider’s licence fee per meeting, we are looking at US$20,000 to US$30,000 to connect 1,000 participants in a conference.”
With T&E budgets remaining flat for 2021, he noted the likelihood of a 60/40 face-to-face/virtual meetings and events split next year, adding the only situation where the company’s clinical observation programmes and on-the-job training have to be face-to-face.
With a business critical only travel policy now in place, Jane Sim, commodity manager, ASEAN, Siemens, expects department heads to lower the budgets for T&E spend in 2021.
“Events and exhibitions are definitely a major spend in South-east Asia and Siemens has internal technology to hold events and partner meetings. But if the event content is too complex we need to work with event agencies. From first impressions, it is not going to be cheap, which also surprised me my colleagues.
“We started analysing our use of virtual meetings and events a year ago and are looking for capable partners to help us achieve total cost optimisation as constant cost-saving was the company direction even before Covid-19,” Sim shared.
Meanwhile, Adriana Nainggolan, travel programme manager, Asia-Pacific, Autodesk, commented many staff would prefer to meet in person, especially for important meetings where collaboration among team members is required.
“As soon as travel can return, I am sure our staff will start planning,” she opined.
Agreeing, Benson Tang, executive director, corporate travel, Informa Markets, believes once a vaccine is available confidence to resume corporate travel will be strong.
“We are social beings. Nothing can replace the benefit of meeting business associates, clients and colleagues (face-to-face). The question now is how we will value business travel post-Covid-19 when it can resume,” Nainggolan said.
Last week, Japan successfully held several exhibitions – the first few large-scale B2B trade fairs since the country lifted its national state of emergency – with numerous health and safety measures in place.
The 12th Kansai Hotel & Restaurant Show, and five other exhibitions (Maintenance & Resilience Osaka 2020; 12th Factory & Process Visualization Expo; 3rd Industrial Automation & Robo-Tech Expo; Weather & Climate Measures Business Week 2020 – Summer Edition Osaka; Plant Show Osaka 2020; and International Drone Expo 2020), were concurrently held at INTEX Osaka from July 29-31. A total of 460 companies at 830 booths utilised the entire INTEX Osaka complex.
Safety measures during a pandemic
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The event signified high hopes for the resumption of the MICE industry, and the recovery of economic activity, while ensuring infectious disease control measures were in place.
To prevent the spread of Covid-19, operational measures included implementing capacity limits; using a web pre-registration system to control date and time of attendance; installing thermographic cameras; setting up of a quarantine area; as well as placing social distancing markers within the venue. The venue layout was also changed to ensure at least three metres in width, and installing clear panels on speaker podiums.
Hiroshi Mizohata, president of the Osaka Convention & Tourism Bureau, expressed: “By holding Japan’s first major exhibition amid the coronavirus pandemic, we want to send a big, encouraging shout to those concerned about exhibitions and international meetings held across Japan.
As the world of brand experience saw major disruptions during the Covid-19 crisis, more brands have partnered with their agencies to create more online events and digital-based experiences.
This not only became an immediate response to a crisis, as it also helped accelerate the digitalisation of brand experience.
Going virtual will have its own set of challenges
However, every market has reacted differently to the pandemic, so as a business we have to work closely with our local clients to offer a bespoke hybrid solution that complies with local laws, while ensuring there are backup plans in place.
Here are some ideas as to what event planners can do in order to maximise all available tech for their virtual event.
1. Stay connected with live streaming
Uniplan has increased communications by introducing internal livestreaming for updates and inter-office knowledge sharing across different markets to grow our digital knowledge and skills and use this new expertise to ensure successful project delivery for our clients.
This innovative tech allows us to better communicate both internally and with clients. On an enterprise level, there are lots of tools available. They have the advantage of attendee experience, live event usage reports, while leveraging on content delivery network technologies. Live streaming and pre-filmed events using a green screen and/or physical build ensure you can reach a large audience fast, easily, safely and professionally.
2. Cloud-based solution
Planners should consider leveraging cloud-based solutions. Now the focus is more towards, small, consistent, incremental enhancements so learning is ongoing. There are a million articles on the advantages of moving to the Cloud but some quick advantages for planners are new collaboration tools, fast deployment, scalable, location agnostic, co-editing & enterprise security.
For virtual events, setup and delivery can be supported by distributed teams which is critical during Covid-19.
3. Change your mindset
Technology is here to stay and will continue to complement our human connection and experience potentially more than it ever has in the past. Consumers have evolved and adapted. Agencies and advertisers will need to follow suit in a creative integrated manner allowing for a more hybrid project delivery involving both digital and traditional elements.
4. Create an innovation culture
Culture comes from the top down. It’s up to the business to enable innovation. For example, Uniplan needed to invoke business continuity as Covid-19 hit, but on the other hand realised it was a chance to think creatively and build new ways of working and delivering for our clients.
We were able to drop the Covid-19 problem into ideation sessions to come up with new solutions/workarounds/options for our clients. The tools we have been using have all been cloud-based.
Virtual workspaces for preparation, both high and low fidelity wireframing, design tools, prototyping, plugins, combined with design thinking and a driven to win attitude have helped the business through this difficult period. Cloud allows our users to work from anywhere with Internet which is essential for our business continuity.
5. Cybersecurity
Planners have to be vigilant more than ever on cybersecurity to ensure that virtual events can be effectively carried out. For starters, for internal company data and security, your IT department should have an Information Security Management system. This will cover the very basics from user awareness through to high-end network security.
For planners, they should engage IT and DevOps to ensure solutions are secure and workable from day one. Creative technologists, who understand both sides of digital and creative, working with IT departments are key for creative agencies to deliver new types of secure hybrid work.
two whales swimming in calm blue water of Scarborough Beach, Perth, Western Australia
In a major win for Western Australia, Perth has been chosen – over China and Singapore – as the host destination of the 25th Biennial Conference on the Biology of Marine Mammals come December 2023.
As the largest conference of its kind, it is expected to attract more than 2,000 members of the Society for Marine Mammals to Western Australia over eight days, including pre- and post- touring to the regions, generating more than A$10 million (US$7.1 million) for the local economy in direct delegate expenditure.
Two whales swimming in the blue waters off Scarborough Beach, Perth
Business Events Perth chief executive Gareth Martin said: “This is welcome news for Western Australia and comes at a crucial time for the local business events industry, which has been impacted significantly by the coronavirus pandemic.”
“Lucrative business events such as these require significant planning and by securing them now we are not only looking to the long-term recovery of our tourism industry but ensuring Australia is kept front of mind for decision makers as a world-class events destination,” said the federal minister for tourism Simon Birmingham.
Raffles Hotels & Resorts have opened their 15th Raffles-branded property in the world in Bali, a half-hour drive away from Ngurah Rai International Airport by private limousine.
The property offers 32 private pool villas for top incentive winners, all of which are equipped with indoor and outdoor showers, a soaking tub, yoga mats, and beach accessories.
Sunset from a Raffles Bali private villa
There will also be Raffles Wellbeing Butlers to tend to a guest’s every need, as well as arrange for cultural experiences ranging from temple dance ceremonies to traditional cooking classes.
Raffles Bali will also be the first to launch the brand’s new wellbeing programme, Emotional Wellbeing by Raffles, an apt move in such pandemic times.
Aside from the programme, winners can also unwind at the Raffles Spa. There are three treatment suites, one of which – named The Sanctuary – is set apart from the others and hidden in nature.
Other facilities include the Rumari, a restaurant serving up Balinese cuisine; Loloan Beach Bar and Grill; Writers Bar and the adjoining Library which offers cocktails including the Raffles Bali Sling; and a 25-metre infinity pool.
There are activities that cannot be replaced by virtual alternatives, like hugs, handshakes and honeymoons. Incentive travel planners will not hesitate to add to that list reward trips for top achievers.
Interviews conducted for our cover feature this month show just that – they are unanimous in their belief that the motivational value of extraordinary travel experiences can’t be beat and will remain the preferred business tool for companies looking to drive performance.
As much as that is true, the painful reality is that with most international borders shut to non-essential travel, one cannot jet their top achievers off to somewhere impressive and exotic. The only destination that remains accessible is one’s very own backyard.
For many companies, an incentive trip at home packs a weak punch, so top performers of 2019 are taking home cold, hard cash rewards this year.
But is one’s own backyard truly that unworthy as a reward? This pandemic could well be a true test of incentive programmers’ creativity, especially if they have long built their fortune on whisking top achievers off to foreign lands that sell themselves. How will they fare turning inwards to identify gems at home? And can they convince their clients to trust them?
What I think could aid incentive programmers in their quest for an outstanding local experience now is the intensified marketing by hospitality players to the domestic audience – the only source of business they currently have.
At the same time, studies have found that consumers are desiring destination experiences that are authentic and enriching when they can resume their travels. But why wait till international borders reopen? There are authentic and enriching experiences to be found at home, to be discovered by residents who never thought to give what they perceived as familiar a second glance.
Could a fireside chat with the destination’s last-standing whoever be hosted, where guests would hear precious first-hand recollections of a bygone era that even their grandparents wouldn’t know to tell? Could a group access a local landmark that is reserved for the highest of foreign dignitaries? Could a feast be served, featuring rare recipes that are close to extinction because of cultural dilution?
I’m sure even a destination as small as Singapore would hold many hidden gems in her bosom, and I would love to rediscover my country myself.
At the start of 2020, the incentive travel industry’s future looked incredibly bright.
This was supported by results from the 2019 Incentive Travel Industry Index, a joint research effort from SITE (the Society for Incentive Travel Excellence), IRF (the Incentive Research Foundation) and FICP (Financial & Insurance Conference Professionals), which pointed to an uptick in incentive travel spend over the next few years.
Industry players believe incentives will still be key performance motivators which cannot be replaced
The survey showed that incentive travel was expected to grow at an average rate of nearly three per cent from 2020 to 2022, with budgets increasing over the next three years, while spending per person also looked set to increase by roughly two per cent.
However, the pandemic has altered the outlook, with many companies putting their travel and event plans on hold until it is safe and possible to get moving once more.
Health is wealth
When incentive travel demand returns, programme designers and specialists believe that health and safety factors will play a major role in the decision-making process. Travellers will want to know that they are safe, and be reassured that the trip has been planned carefully and tightly-managed.
SITE’s CEO, Didier Scaillet, pointed out: “We will see new standards and procedures – less people per room, more room between chairs, sanitisation procedures, new security protocol at airports, new rules on plane, etc.”
Niels Steeman, group director marketing and e-Commerce, Asian Trails, agree that health and safety matters will take a front row seat.
“The administrative side of assuring a clean and safe environment for participants will be of the utmost importance. I believe that this post-Covid wish for incentive travel will evolve around getting assurances that venues, hotels, transportation companies, and DMCs adhere to local and international health standards,” he elaborated.
Health and safety might even be taken to the next level, mused Jennifer Glynn, president, SITE Global. “After 9/11 we saw security measures at airports and within airlines increasing; (I think we’re) going to see incentive travel programmes travelling with nurses or doctors and (clients) asking more difficult questions about the health security of the area.”
Safe locations in focus
Incentive programmes of the future may also feature more time outdoors.
Alicia Yao, managing director of IME Consulting in China, predicts a leaning towards open-air venues for activities and dining, to allow planners to abide by social distancing requirements.
Yao also expects incentive programmes to feature healthier food options and wellness activities.
Anticipating this trend, DMC Asian Trails has taken a step in this direction by collating a list of open-air activities that can be done in Asia, ranging from candle-lit dinners for up to 80 pax in Bagan, to walking and dining on the iconic Great Wall of China for groups of up to 50.
Meanwhile, Sheikh Awadh Sheikh Abdullah, managing director of Malaysia-based Gotz Travel & Tours, believes that his clients will be more discerning in selecting a destination.
“They will do their own research into the destination and (ensure that) safeguards are in place at all the hotels and venues. They will also want to go to destinations and venues that are not crowded. Destinations that have stringent SOPs (standard operating procedures) in place will be favoured,” he remarked.
As companies avoid densely populated locations, Scaillet believes that second- and third-tier destinations will become more “attractive”.
“Incentive travel does not need massive infrastructure and major hubs, as these small groups can use other means of transportation. This represents a true opportunity for less MICE-developed destinations,” he posited.
Destinations with a good health system in place will also shine, opined Abdul Rahman Mohamed, general manager, Mayflower Holidays Malaysia.
Covid-19 fears, travel restrictions and budget limitations will also result in companies choosing destinations closer to home, say incentive travel specialists like Singapore-based MICE Matters’ director, Melvyn Nonis.
“Trans-continental travel will take some time to resume and incentive travel will stay national first, then progressively regional, and finally global,” said Scaillet.
Watch for contractions
Health and safety considerations, as well as poorer business performance among companies during the current economic downturn, are expected to impact the size of future incentive groups.
But there’s good news, for Sheikh foresees CVBs hungry for incentive groups will “come up with new subventions and lower the qualifying size of groups”.
A group size of 25 to 30 people is ideal for efficient social distancing and management, according to Alexander Wong, founder of MICE Hospitality Connections in Malaysia.
“Coaches will be travelling at half capacity as delegates are encouraged to sit apart. During mealtimes, we will see more space between individuals,” Wong added.
In fact, nothing more than 500 pax, opined Agustinus Pake Seko, president director of Indonesia-based Bayu Buana Travel. The downside to reduced group sizes is that prices could increase by 20 to 30 per cent, he said.
The only way is up
While the mood among incentive travel specialists is sombre now, many told TTGmice that they remain confident that business will rebound soon enough, with pent-up demand being the main driver.
There is no substitute for incentives, said Destination China’s general manager, Gunther Homerlein, as experiencing another country and its culture remains a key motivator for many.
Indonesian players are also optimistic that their clients will not replace trips with cash rewards.
Agustinus said: “Money cannot replace experiences and create engagement… Many companies still plan to travel next year with us.”
Bringing hope to the conversation, Vidya Hermanto, managing director of Orange Incentive House – the corporate incentive division under Panorama JTB Tour – revealed that she has been fielding some enquires from local companies.
She said: “Unlike meetings and exhibitions, incentive trips cannot be done virtually. The market will always be there regardless of the situation.”
Asian Trails’ Steeman has also seen new enquiries coming in for potential trips for 2021, and pointed out that programmes for 2020 were only postponed and not cancelled.
Meanwhile, Nonis expects possible movement to only begin from April 2021.
“I have no doubt that the fundamentals that fuelled the growth of incentive travel pre-pandemic will persist post-pandemic: motivating and rewarding top performers by extraordinary travel experiences is, and will be more than ever now that people have experienced confinement, one of the most powerful business tools (and more so with millenials),” Scaillet concluded.
Rachel AJ Lee, S Puvaneswary, Mimi Hudoyo, Anne Somanas, and Prudence Lui contributed to this article
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