Africa Tourism Leadership Forum announces new dates due to pandemic

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

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.

State mulls resumption of passenger flights

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#

 

Prepare for costly air travel, IATA warns

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

 

Re-establishing standards for safe air travel is vital for the future

Consumer confidence in the air travel industry has taken a dramatic hit due to Covid-19. For international travel to resume, the need for internationally recognized standards that are safe for both passengers and staff is crucial.

Heathrow Airport is the first airport in the UK to begin the trial of health screening initiatives such as facial recognition thermal screening technology (to track body temperature), UV sanitation (to sanitize security trays) and contact-free security screening equipment (to reduce close contact). If testing at Heathrow Airport proves successful, similar procedures will be rolled out across the remaining UK airports, offering a glimpse in to what travel may look like in the future.

For the prospect of international travel to be deliberated, there is a crucial need for common international screening standards to be recognized worldwide.

For air travel to resume, reassurance must be guaranteed

Over 50% of global international travel trips have been cancelled or changed due to travel restrictions, according to GlobalData’s latest Covid-19 consumer survey. As the impact on travel plans is stark, this highlights that pent-up demand is likely to have occurred during lockdown periods, creating a surge in international travel when restrictions are lifted.

Although, the same survey also found that 49% of the population are still extremely concerned about the global outbreak of Covid-19. It is unknown how much the ‘fear factor’ will impact the confidence of travelers to venture to outbound destinations.

Consumer confidence will return but it is clear that there is still a long, winding road ahead. For travel to resume, health standards of airlines must be standardized across the board.

Common international standards need to be set

Most countries around the world were testing inbound travelers once arriving in their destination before the pandemic reached its peak. However, these measures have not been standardized and the need for collaboration between countries is vital for future travel.

CEO of Heathrow Airport, John Holland Kaye, announced that governments should be taking the lead in agreeing a common international standard in the approach to health and safety in airports. The priority should be to minimize the transmission of Covid-19 across borders. The technological developments currently being trialed at Heathrow could soon offer a global solution.

The airline industry has suffered greatly due to Covid-19 related impacts and has encountered dramatic losses. Q1 financial results for airlines have illustrated a substantial hit due to tumultuous decline in demand. The sooner health standards are reestablished; the sooner confidence in travelers can be restored, meaning that airlines and airports can begin to recover.

Source: https://www.airport-technology.com/comment/air-travel-standards-future-covid-19/

 

Dubai Expo postponed for a year due to COVID-19

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.”

Magical Kenya postpones 2020 Travel Expo after escalation of COVID-19 globally

The Kenya Tourism Board (KTB) has postponed the 10th 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.

Urgent Appeal to International Community to Support African Travel and Tourism Sector

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/

 

ICAO issues new guidance on COVID-19 aviation safety risks

ICAO has developed a new publication aimed at helping countries to address the aviation safety risks arising due to the global effects of the COVID-19 pandemic.

 

Produced specifically for national aviation regulators and civil aviation authorities (CAAs), the new Handbook for CAAs on the Management of Aviation Safety Risks related to COVID-19 (ICAO Doc 10144) was developed with the support of aviation experts serving on the ICAO Safety Management Panel. An ICAO State letter will be issued to encourage Member States to take advantage of this new handbook.

 

“COVID-19 has presented the entire world with many new types of challenges, and the need to adjust how we conduct ourselves in our day-to-day lives,” commented ICAO Secretary General Dr. Fang Liu.

 

“As a highly integrated and complex network, international aviation has not been immune to these effects, some of which pose new challenges in managing risks which were never before considered in traditional safety management practices.”

 

“ICAO therefore considered it essential to provide new guidance in this area as quickly as possible, so that the countries we support can continue to effectively coordinate, collaborate, and communicate to uphold the highest possible levels of aviation safety while they maintain the continuity of critical operations.”

 

The new ICAO handbook is available compliments of the Organization on the ICAO COVID-19 Safety Risk Management website, which will shortly contain additional links to practical information and tools which States are encouraged to stay actively updated on.

 

ICAO will be hosting a free ICAOTV interactive webinar to introduce the new handbook, on 14 May.

 

Source: https://www.icao.int/Newsroom/Pages/ICAO-issues-new-guidance-on-COVID-19-aviation-safety-risks-.aspx

 

KQ pays the price for heavy reliance on passenger revenue

The Covid-19 pandemic has exposed the weak points of global airlines, which are now struggling to stay afloat. Airlines such as Kenya airways, which were already in financial mess, have seen their situations worsen as the virus scourge continues to wreak havoc to key sectors of local and global economy.

KQ has now realised that its overreliance on passenger services is its undoing. The national carrier has thus been compelled to think harder to broaden its revenue streams in a bid to cushion itself against such global crises as the current Coronavirus.

The airline is already planning to diversify 40 percent of its business to other revenue streams and cut overreliance on passenger services, which forms the bulk of its revenue.

At the moment, 90 percent of the Kenya Airways revenue comes from passenger services with a paltry 10 percent from cargo.

KQ chief executive officer Allan Kilavuka says the carrier has been heavily reliant on passengers but it’s now time they diversified their business, having learned from the Coronavirus havoc.

“We have been heavily reliant on passengers but we now need to spread out our business. We are working on how to diversify to other revenue streams,” said Mr Kilavuka.

Source: https://www.nation.co.ke/business/KQ-pays-the-price-for-heavy-reliance-on-passenger-revenue/996-5544142-10hj5xyz/index.html