The long wait for pending bills could finally end after Cabinet Secretary Najib Balala assured travel agents that he was keenly following up on the refund of pending bills amounting to over Kes. 400 million.

Speaking at a webinar organised by the Kenya Tourism Federation on May 12, 2020, Mr. Balala assured travel agents that he is following up on the matter and hopes that the pending bills will be reimbursed in June.

Travel agents have fervently pursued the refund of the Kes 434 million owed by government as it is the crucial injection needed to boost businesses already failing due to the COVID-19 pandemic.

“We have been working closely with government ministries to ensure that these funds are remitted to agents in good time to allow the sustainability of our businesses during this COVID-19 period where the travel industry has ground to a stop. Currently travel agents are not operating as no travel is taking place. The only business we are handling right now is refunding our clients and this has led to closure of many agencies who are operating on negative right now” KATA Chairman Mr. Mohammed Wanyoike said in a previous interview.

He stated that he is hopeful that by the end of the first half of the year, travel agents will have received their refunds and will be able to work towards restoring their businesses post pandemic.

Other matters discussed during the webinar included the travellers changed habits post COVID-19. Mr. Balala noted that travellers would only be comfortable once a vaccine to contain the virus is found. He urged the industry to focus on attracting travellers especially the youth by putting special emphasis on their health, safety, price and providing a worthwhile experience.

Even as travel opens up eventually, he said, proper precaution and restrictions that has been put in place by the government have to be enforced in order to avoid the spread of the highly contagious disease.

Kenya Tourism Board CEO Ms. Betty Radier who was a panellist during the forum urged industry players to be COVID-19 ready in order to accommodate the needs of the traveller.

The webinar was hosted by KTF CEO Ms Susan Ongalo, moderated by KTF Chairman Mr. Mohammed Hersi. Mr Alex Avedi. The CEO Safarilink Aviation was a panellist at the forum.

The Kenya Association of Travel Agents (KATA) has decried the slow rate at which government and airlines are taking to remit pending bills and refunds owed to travel agents.

KATA Board Chairman Mr. Mohammed Wanyoike said that travel agents need these funds to cater for refunds to their clients.

“With the restricted movements in and out of the country occasioned by the highly contagious COVID-19, travellers have cancelled their scheduled flights. This means that no business is taking place and no revenue is coming in. Travel agents need these funds to refund travellers who have cancelled their flights,” he said.

Airlines, he further pointed out, have instructed passengers who had booked flights with travel agents to seek refunds from their travel advisors. “This puts agents in a bad position as the airlines have declined to refund tickets bought through agents,” Mr Wanyoike stated.

He noted that some airlines are issuing vouchers instead of cash refunds through agents therefore causing conflict for the agents, as customers are demanding full refunds in “cash” claiming that they have no immediate travel plans in the foreseeable future. Similarly, the travel agents cannot assign this voucher on other bookings owing to the issuing restrictions. This has also led to a bad stalemate between the customers and travel agents owing to the inflexibility demonstrated by the airlines issuing the refund vouchers.

On the other hand, Mr. Wanyoike further said, the government owes travel agents over Kes. 434 million in pending bills. “We have been working closely with government ministries to ensure that these funds are remitted to agents in good time to allow the sustainability of our businesses during this COVID-19 period where the travel industry has ground to a stop.

Currently, he added, travel agents are not operating as no travel is taking place. “the only business we are handling right now is refunding our clients and this has led to closure of many agencies who are operating on negative right now”.

He reiterated, “With COVID-19 disrupting life and business as we know it, we are bracing ourselves for a very difficult year. From a robust year where Kenya received over 2 million international guests, an increase of 37.7 percent as compared to 2018, this year we are down to zero. This has put millions of jobs at risk”.

Mr Wanyoike called upon clients and travellers owed to be calm and patient as travel agents strive to resolve the impasse. “KATA is founded on integrity, professionalism and transparency. We are pursuing the refunds and other monies owed persistently to ensure that each traveller receives their refunds,” he stated.

The third edition of the Africa Tourism Leadership Forum and Awards (ATLF) which was scheduled for 13^th to 15^th July, 2020 has been postponed due to the current Coronavirus pandemic. The event which will be held in Kigali, Rwanda is now scheduled for 19^th to 21^st October.

The move to the last quarter of the year is to allow the alignment of the content with Africa’s travel tourism sector post COVID-19 recovery strategies.

According to communication from the forum’s organisers, the new dates will allow the conveners and the host partners to re-design this year’s programme to focus on post-COVID-19 recovery and innovative business solutions through travel technology and digitalization, skills development, domestic tourism, intra-Africa travel and supporting policies.

The Africa Youth Innovation Summit aims to serve as a continental platform for youth in tourism, travel, hospitality, aviation, academia and all related industries to connect, engage, learn and grow. Interested participants are urged to enrol for the summit.

Africa Tourism Leadership Awards recognises the game-changers in the tourism sector. The awards focus on individuals and groups’ initiatives being pursued across the sector. Among the big winners in 2019 included the president of the Republic of Rwanda, Paul Kagame who won the Destination Africa Lifetime award. The public is urged to nominate gamechangers in the industry including selves and own companies for these awards.

Hahn Air has introduced a new department on Research and Development (R&D) with a new team that will be led by long standing Hahn Air Executive Mr. Mathieu Montmessin.

The new department is charged with analysing new technologies, fostering innovation and broadening Hahn Air’s product portfolio by generating new revenue streams and sales channels.

“We set up our new Research & Development department to meet the demands of a changing airline industry.  We are confident that our partner airlines and travel agency partners will benefit from our team’s innovative solutions and new distribution opportunities, especially in light of the current corona crises and the adjoining phase of recovery,” said the airline’s General Director Ms. Kirsten Rehmann.

Mathieu Montmessin who has been appointed Executive Vice President Research & Development has been previously in charge of the Hahn Air product portfolio and generating sales for Hahn Air’s partner airlines with the solutions HR-169, H1-Air, X1-Air, HR-EMD and HR-Corporate. He studied in France, UK, Spain and the Netherlands and holds a master’s degree in computer and network science. Before joining Hahn Air in 2010, he acquired in-depth GDS knowledge working with Amadeus for five years. 

“I am excited to be looking at the potential impacts of emerging technologies like NDC, virtual reality, artificial intelligence, machine learning, mobile and innovative payment options. We will also start an employee innovation programme where all Hahn Air colleagues can contribute their ideas. Innovation is all about team-work, creativity and courage and we expect to make significant impacts for our partners,” Mr. Montmessin said.

This is part of the State’s plan to gradually ease movement restrictions introduced when the country reported its first coronavirus (Covid-19) infection two months ago.

A-Zoom meeting scheduled yesterday by the Kenya Airports Authority (KAA) for the airline industry representatives, travel agents and stakeholders was cancelled at the last minute, after the login details and password were leaked on social media.

Tourism Cabinet Secretary Najib Balala yesterday said the sector remains the worst hit, observing that the Government was looking for ways to resume economic activity gradually starting with the restaurants and hotels.

 “It’s been two months since the economy was closed from Covid-19 and we want to balance between stopping the spread of the virus and saving the economy,” said CS Najib Balala.

“Players in the sector have reached out to the Government to ask for the measures to be lifted and the important thing is how we respect the protocols put in place, otherwise we’ll definitely see a spike in numbers,” he said.

JKIA Airport Manager Gilbert Gogo said the country was following the trends in the global aviation industry and putting in place measures to comply with safety and health standards once operations resume.

 “We have had consultations with the board, Transport ministry and stakeholders on how to be prepared to work post-Covid,” he said. “We have been taking advantage of the lull in the industry and in the airports to conduct maintenance and passengers will see a change once operations resume.”

However, re-opening the region’s busiest aviation hub is a daunting challenge for the Government. Kenya’s infection rates remain high with global industry trends remaining uncertain.

Some major airlines have resumed passenger flights to select countries with domestic flights resuming in others.

Emirates Airlines yesterday announced it was resuming flights to eight countries including London, Heathrow, Frankfurt, Paris, Toronto and Sydney while South Korean national carrier Korean Air said it would resume flights to 19 destinations.

This has raised speculation that JKIA’s status as a regional hub, will pile pressure on policymakers to re-open it in coming weeks.

Data from the Kenya National Bureau of Statistics indicates the country’s main airports recorded 375,499 aircraft movements in 2019 with overall passenger traffic hitting 12.1 million.

The International Aviation Transport Association last week released guidelines on measures the industry should adopt to resume operations.

“Each country will have to develop their own protocols for reopening depending on their circumstances,” said Yilma Goshu, area manager for Ethiopian Airlines.

Source: https://new.standardmedia.co.ke/article/2001371239/state-mulls-resumption-of-passenger-flights#

 

Introducing social-distancing measures in the aviation sector could see seat capacities reduce by 38 per cent and airfare increase by 43 per cent for airlines in Africa and the Middle East if they are to remain viable, warns the International Air Transport Association.

In its analysis of airfares once travel restrictions ease, the international airlines lobby sees a scenario where airlines will be caught between low demand, excess capacity and low fuel prices. This should translate to lower fares, but proposed social distancing measures that will require the middle seat be left unoccupied as well as an increase in turnaround times because of sanitization procedures will push unit costs up, making an increase in airfares necessary.

If airlines don’t increase ticket prices, many will fold, IATA chief economist Brian Pearce said in a briefing last week.

The measures sharply reduce the maximum load factor to 62 per cent, which is below the average industry break-even load factor of 77 per cent. With fewer seats to sell, unit costs would rise sharply, translating into fare increases of between 43-54 per cent compared with 2019, depending on the region.

“Airlines are fighting for their survival. Eliminating the middle seat will raise costs. If that can be offset with higher fares, the era of affordable travel will come to an end. On the other hand, if airlines can’t recoup the costs in higher fares, airlines will go bust. Neither is a good option when the world will need strong connectivity to help kick-start the recovery from Covid-19’s economic devastation,” says IATA’s director-general and chief executive Alexandre de Juniac.

The estimates in fare increases are based on the assumption that airlines will only have 85 per cent available seats occupied. That would translate into a load factors of 53 per cent of the 62 per cent weighted average of seats that will be available after when the middle seat is not occupied.

Airlines in Africa, North America and the Middle East required a load factor of 75 per cent to break even in 2019. That translated into an average fare of $181 in the Middle East and Africa, and $202 in North America. In Africa, fares would rise to $259 and $289 in North America, a 43 per cent increase in both cases. Comparable figures would be a 45 per cent increase fare in North Asia, 49 per cent in Europe, 50 per cent in Latin America, and 54 per cent Asia Pacific.

Source: https://www.theeastafrican.co.ke/business/Prepare-for-costly-air-travel/2560-5551314-thwuev/index.html

 

The Dubai Expo has been postponed for a year after two thirds majority of Bureau International Expositions (BIE) Member states voted for the move.

The Expo 2020 Dubai will now run from October 1, 2020 to March 31, 2022 to allow participants to safely navigate through the impact of the COVID-19 and also refocus World Expo towards identifying new solutions to some of the greatest emerging challenges.

However, the Expo 2020 Dubai will retain its name as a celebration of human resilience, creativity, culture and innovation – including major technological advances in the fields of medicine and science.

The Dubai Airports Chairman His Highness Sheikh Ahmed bin Saeed Al Maktoum who is also the President of the Dubai Civil Aviation Authority, Chairman and CEO of Emirates Group, and Chairman of the Expo 2020 Dubai Higher Committee, welcomed the move saying that it will help shape a post pandemic world.

“We welcome the decision of BIE Member States to support the delay Expo 2020 Dubai by one year. We are thankful to Member States for their continued commitment to contributing to a World Expo in Dubai that will play a pivotal role in shaping our post-pandemic world at a time when it will be most needed,” he said.

 He added, “over the last 50 years, we have sought to build bridges, connections, and partnerships around the world because we believe in genuine collaboration to safeguard the future of all. This swift and overwhelming vote reflects the strength of our international partnerships and truly reflects the positive role the UAE and Dubai play with all countries around the world. This affirmation by the international community of Dubai’s offering and its ability to deliver, further strengthens our commitment to matching ambition with achievement to hosting an event that will capture the world’s imagination, when the time is right”.

The BIE members voted remotely due to the COVID- 19 restrictions that have been put in place to contain the rapid spread.

The BIE Secretary General Mr. Dimitri S. Kerkentzes lauded the swift response by the members to postpone the international expo.

“In their support for the one-year postponement of Expo 2020 Dubai, Member States of the BIE are giving the world the opportunity to reconvene in 2021, when together, we can address the challenges facing humanity and celebrate the unity and solidarity that strengthen us. With its theme ‘Connecting Minds, Creating the Future’, Expo 2020 Dubai will offer the world a unique platform to share the lessons, solutions and ideas for a better tomorrow.”

The Kenya Tourism Board (KTB) has postponed the 10^th edition of the Magical Kenya Travel Expo (MKTE) over the COVID-19 pandemic.

KTB announced the postponement due to growing concerns to the safety of the participants over the highly contagious disease. Since the first case of COVID-19 was reported in March, the government has since put in place measures to contain the rapid spread of the virus which include travel restrictions in regions and international travel, a ban on all gatherings and emphasis on social distancing.

“Our top priority is the health and safety of everyone involved in MKTE. Due to the escalation of the COVID-19 epidemic around the world, KTB would like to inform you that the MKTE 2020 edition which was to be held from 07th to 09th October 2020 has been cancelled. An alternative date will be communicated. We appreciate all the exhibitors, hosted buyers, media, partners and stakeholders who have continued to support MKTE,” the board announced on their web page.

MKTE brings together tourism leaders and policy makers from the East African region to experience and sample leading tourism products and welcomes over 200 exhibitors.

Five international air transport and tourism bodies have launched an appeal to international financial institutions, country development partners and international donors to support Africa’s Travel & Tourism sector which employs some 24.6 million people on the African continent. Without urgent funding, the COVID-19 crisis could see a collapse of the sector in Africa, taking with it millions of jobs. The sector contributes $169 billion to Africa’s economy combined, representing 7.1% of the continent’s GDP. 

The request is being made by the International Air Transport Association (IATA), the World Tourism Organization (UNWTO) of the United Nations, the World Travel & Tourism Council (WTTC), the African Airlines Association (AFRAA) and the Airlines Association of Southern Africa (AASA).

These organizations are jointly calling on international financial institutions, country development partners and international donors to support the African Travel & Tourism sector through these tough times by providing:

• $10 billion in relief to support the Travel & Tourism industry and help protect the livelihoods of those it supports directly and indirectly;
• Access to as much grant-type financing and cash flow assistance as possible to inject liquidity and provide targeted support to severely impacted countries;
• Financial measures that can help minimize disruptions to much-needed credit and liquidity for businesses. This includes the deferral of existing financial obligations or loan repayments; and,
• Ensuring that all funds flow down immediately to save the businesses that need them urgently, with minimal application processes and without impediment from normal lending considerations such as creditworthiness.

Some African governments are trying to provide targeted and temporary support for hard-hit sectors such as Travel & Tourism. However, many countries lack the necessary resources to help the industry and the livelihoods it supports through this crisis. 

The situation is now critical. Airlines, hotels, guesthouses, lodges, restaurants, meeting venues and related businesses face mounting losses. Typically, tourism is comprised of 80% of small and medium-sized enterprises (SMEs). To preserve cash, many have already begun laying off or placing staff on unpaid leave.

“The impact of the COVID-19 pandemic is being felt across the whole tourism value chain. The sector and the millions of livelihoods it supports across the world, including vulnerable communities are particularly exposed. International financial support is key to ensuring that tourism can lead to wider economic and social recovery in these communities,” said UNWTO Secretary-General, Zurab Pololikashvili.

“Airlines are at the core of the Travel & Tourism value chain that has created quality jobs for 24.6 million people in Africa. Their livelihoods are at risk. Containing the pandemic is the top priority. But without a lifeline of funding to keep the Travel & Tourism sector alive, the economic devastation of COVID-19 could take Africa’s development back a decade or more. Financial relief today is a critical investment in Africa’s post-pandemic future for millions of Africans,” said IATA’s Director-General and CEO, Alexandre de Juniac.

“The Travel & Tourism sector is in a fight for survival, with over 100 million jobs losses globally and nearly eight million in Africa alone due to the COVID-19 crisis. Travel & Tourism is the backbone of many economies across Africa and its collapse will lead to hundreds of millions of livelihoods being impacted and enormous financial pressure for years to come. Now, more than ever, it is vital that governments work together on a global coordinated approach towards a swift recovery and ongoing support for Travel & Tourism. It is critical that the most vulnerable communities receive international help. The speed and strength with which the international community comes together and responds through international financial institutions, country development partners and international donors will be paramount to provide support to the many millions of people whose livelihoods are heavily dependent on our sector,” added Gloria Guevara, WTTC President & CEO.

“Air transport and tourism industries are among the worst impacted by the COVID-19 pandemic. Air transport is critical for the economic development and integration of the African continent. As such, support to the airline industry will aid in a faster economic recovery. An end of operations by African airlines would trigger a host of serious financial consequences, while replacing the air service provided by the airlines would be a challenging and costly process. Urgent, immediate and consistent measures need to be taken for the survival and rebound of the industry,” said AFRAA Secretary-General, Abdérahmane Berthé.  

“The impact of COVID-19 in Africa continues to be brutal. Air travel and tourism have essentially shut down. Now, more than ever, international countries need to come together to help those communities that are most vulnerable. The survival of our industry and its allied sectors has serious ramifications for Africa’s entire air transport system,” said AASA CEO, Chris Zweigenthal.

Source: https://www.iata.org/en/pressroom/pr/2020-05-06-01/