Asia Travel Re:Set #5 – Could Wearables Help Unlock Safer Travel?
Asia Travel Re:Set #5 – Could Wearables Help Unlock Safer Travel?
“We simply will not survive unless we adapt for the new travel market”
Hello. Welcome to the Sunday edition.
It’s a sign of the times that Asia’s top travel story this week raises as many questions as it answers.
Thailand leapfrogged from a plan to reopen Phuket for charter flights to extending the concept nationwide for long-stay visitors. A raft of inbuilt clauses, though, are unlikely to assuage a sceptical populace or provide clarity for potential visitors.
Elsewhere, I shine a light on Hong Kong following Cathay Pacific’s public admission that it is struggling to survive. Updates, too, from Australia, China, South Korea, Singapore and Vietnam.
An evident outcome of the pandemic has been the need to track body temperatures. New smart-sensor wearables are starting to hit the market, and today I have an exclusive interview with Ilya Kravtsov, CEO of Singapore-based PouchNATION.
Also this week, I was interviewed by CNN for a detailed article assessing the travel landscape in Asia as we enter the final stretch of 2020. It’s not pretty.
Thanks for jumping onboard.
Gary
The Weekend Itinerary
Airline Dashboard: Cathay Pacific
Travel Snapshots
Bali Turns to YouTube
Curated Self-Driving in South Korea
Landlines Through Laos
Levelling the Duty-Free Playing Field
Updates from Issues 3 & 4
Singapore
China
Vietnam
Australia
The Challenges Peak for Hong Kong
Asia’s Winter of Discontent?
What Can South East Asia Hope For in Q4?
Thailand Ties Itself in Tourism Knots
Reads of the Week
Flights to an Environmental Nowhere?
Why Can’t We Control the Pandemic
Do Lockdowns Actually Work?
Brighter Spot
Wearable Makers Take On COVID-19
Airline Dashboard
This week, Cathay Pacific Group revealed some brutal August traffic figures.
-98.8%: Volume of passengers carried by Cathay Pacific and Cathay Dragon in August 2020 versus August 2019 (35,733 vs 4,467,849).
1,157%: Total flights operated across its route network in August 2020, compared to 18,009 in August 2019.
HKD1.5-2 bn: The rate the group is burning through cash per month, despite making “decisive actions” to slash costs.
7.8%: The percentage of pre-pandemic monthly passenger capacity operated in August, up slightly from 7.1% in July.
10%: Forecast monthly passenger capacity for September and October (which includes the 8-day Golden Week holiday in China).
Cathay Pacific Group Chief Customer and Commercial Officer, Ronald Lam, said:
“It is clear that we are facing a long and uncertain road to recovery… the environment will continue to be extremely challenging for many years.”
He added:
“We are weathering the storm for now, but the fact remains that we simply will not survive unless we adapt our airlines for the new travel market. A restructuring will therefore be inevitable to protect the company, the Hong Kong aviation hub, and the livelihoods of as many people as possible.”
The group expects to be flying “just a fraction of services for the foreseeable future,” and has decided to park 40% of its fleet at dedicated airparks outside of Hong Kong.
Flashback:
Ronald Lam’s comments were fairly consistent with those he made on April, which saw a 99.6% passenger decrease from March as the pandemic impact intensified.
“At this stage, we still see no immediate signs of improvement. Overall, we do not anticipate we will see a meaningful recovery for an extended period.”
Travel Snapshots
Official figures show that Bali, which reopened for domestic travel on 31 July, received 172,721 visitors in August. Bali had proposed to reopen to international travellers on 11 September, but the Indonesian government shelved the plan. And while the number of infections rose sharply through August, the daily curve tapered in the past week. Meanwhile, Balinese tourism authorities are teaming with a Romanian YouTube influencer to promote tourism. The video campaign intends to “prepare for when the pandemic is over, and travellers think of Bali first when they can travel again.”
Curated Self-Driving in South Korea
A surge in popularity for self-drive short breaks is a notable feature of 2020. With travel bans in place, and tarnished trust in air travel, jumping in a car or campervan affords a freedom to explore within borders. South Korea and Expedia designed three self-drive routes for domestic trippers this Fall. The trips include curated in-car playlists, and a chance to explore secluded beaches, temples and fortresses, park up at sunset hotspots, and sample a cherished seasonal delicacy, snow crab. The Korea Tourism Organisation website has not, yet, promoted self-driving for inbound tourists.
A new highway linking the Laotian capital Vientiane with the resort town of Vang Vieng (infamous for its river tubing backpackers) will open in December. The 113km expressway has been constructed by Chinese investors, who will operate 95% of the road concession (with 5% owned by the government) on a 50-year lease. A second phase of development will extend the highway to the Chinese border. As reported in Wednesday’s newsletter, China also reported progress on its under-development railway connecting southwest Yunnan province with destinations throughout Laos.
Levelling the Duty-Free Playing Field
Retail outlets contribute 33% of airport revenues worldwide, and this week the Airports Council International called for “a temporary relaxation of travellers’ duty free limits and allowances for selected duty free products, and universal introduction of duty and tax-free shopping on arrival” to help airports generate revenues from their struggling retail outlets. Currently, more than 45 destinations worldwide permit duty free sales upon arrival, including Hong Kong, India, Indonesia, Malaysia and Thailand.
Updates from Issue 3 & 4
Although most Asian borders remain closed, travel activity behind the scenes is frenetic. So, each Sunday, I’ll provide updates on the previous week’s headline stories.
Singapore Sets a Progressive Opening Agenda: Singapore has published details of its 6th ‘fast track’ agreement with Asia Pacific nations. Japan joins Brunei Darussalam, China, Malaysia, New Zealand and South Korea. The Singapore-Japan Reciprocal Green Lane facilitates “essential short-term business and official travel” between Singapore Changi Airport and Tokyo Haneda and Narita Airports and Osaka Kansai Airport.
The New South Wales Treasurer compared Queensland’s border policy “to that of East Germany in the 1980s,” reports Sydney Morning Herald."
China’s Domestic Tourism “In Recovery”: The Ministry of Culture and Tourism will permit tourism attractions to operate at 75% capacity during the China National Day holiday week. The upper limit was previously 50%. An app reservation will be required for entry. Macao will launch a month-long Light Show to welcome back tourists from mainland China after the full lifting of the travel ban on 23 September.
Vietnam (Un)Postpones Asia Flights: The first regular flight by Vietnam Airlines since March took off from Hanoi Airport on 19 September destined for Tokyo Narita. The passengers were “Vietnamese trainees, workers, and experts heading back to Tokyo to continue their studies and work,” reports state media. Following days of confusion, the government approved flight resumptions to China, Taiwan, South Korea, Laos, Cambodia and Thailand.
Partial Progress on Australia’s State Border Stasis: On Friday, the National Cabinet meeting resulted in 4 states marginally upping their weekly cap on Australian returnees from overseas. Queensland will lift borders restrictions with Australian Capital Territory (ie., Canberra) on 28 September. The bitter political stand-off between Queensland and New South Wales continues. The NSW Treasurer compared Queensland’s border policy “to that of East Germany in the 1980s,” reports Sydney Morning Herald.
The Challenges Peak for Hong Kong
It’s been a torrid year for Asia’s World City. Months of street protests in 2019 segued into the coronavirus pandemic and fury over China’s national security law. Hong Kong adopted the Asia’s World City stage name in 2001, although the Hong Kong Tourism Board has rolled it back lately. The city’s international tourism status is suffering.
This week saw almost 1,300 bars and pubs reopened after stop-start closure orders in recent months, and a stringent shutdown since 15 July. Unlocking the city’s nightlife scene was facilitated by a mass COVID-19 testing campaign undertaken in early September. Around 1.78 million people volunteered for a free test.
Only 42 positive cases were recorded during the two-week cycle. However, yesterday, 13 infections were recorded, including arrivals from Argentina, India, Philippines and Ukraine. Today, Hong Kong postponed flights from Kuala Lumpur until 3 October, after 5 Cathay Dragon passengers transiting at KLIA tested positive on arrival.
“Today, Hong Kong postponed flights from Kuala Lumpur until 3 October, after 5 Cathay Dragon passengers transiting at KLIA tested positive on arrival.”
While the reopened bars raised some cheer, Hong Kong International Airport (HKIA) is a shadow of itself. This week, it became one of the region’s first airports accredited under the Airports Council International’s Airport Health Accreditation scheme. But salutary standards can’t mask the emptiness of a Grade A global hub.
August traffic figures show HKIA handled just 84,000 passengers and 10,000 flight movements, representing year-on-year decreases of 98.6% and 72.0%, respectively.
Over the first 8 months of 2020, HKIA – the world’s 10th most connected air hub in 2019, and second in Asia after Singapore Changi – handled 8.5 million passengers, a shortfall of 83.2% compared to the same 2019 period.
Adding to the gloom was a new US government advisory warning its citizens against visiting Hong Kong. This may not create the same impact as in a non-pandemic year. In 2019, 1.1 million US travellers visited Hong Kong, accounting for about 2% of overall arrivals, but a significant 28% of long-haul market visitors.
“Despite the turbulence, 31.7 million mainland Chinese visited Hong Kong during the first 8 months of 2019. This year? 2.7 million.”
Hong Kong Tourism Board hasn’t yet disclosed its August statistics, but from January-July 2020, it welcomed 3,536,648 visitors. This was an eye-watering drop from 40,068,825 in the same 2019 period – which was blighted by protests citywide.
Despite the turbulence, 31.7 million mainland Chinese visited Hong Kong during the first 8 months of 2019. This year? 2.7 million. Of course, it’s hard to know what would have happened to mainland visitation in 2020, given the fallout from the national security law, which was enacted on 30 June.
In an attempt to restore flight traffic, Hong Kong has publicly stated it is exploring travel corridors with 11 nations: Australia, France, Germany, Japan, Malaysia, New Zealand, Singapore, South Korea, Switzerland, Thailand, and Vietnam. No further details are being disclosed at present, but some of those countries – notably Australia, Malaysia and South Korea – have said their borders are unlikely to open yet.
Asia’s Winter of Travel Discontent?
I had an enjoyably long chat with Karla Cripps from CNN this week discussing the dark clouds hanging over Asia’s travel forecast. Inevitably, we debated the state of play for those ever-elusive travel bubbles. As we approach October, early May – when those bubbles first floated onto the radar via the Australian and New Zealand Prime Ministers – seems like a distant era. Most proposed bubbles have since evaporated.
Winter is traditionally a vibrant tourism season in Asia, combining strong intra-Asian travel with long-haul arrivals from Europe, Russia and North America. As the curtains come down on Europe’s downbeat summer season, lockdowns and social restrictions seem inevitable across the wintry map. So even if European travellers wished (and were able) to escape the cold snaps, would they be welcomed by Asian destinations?
Karla’s excellent report (published on Saturday) scrutinises the spiralling set of challenges confronting Asian governments, tourism boards, travel brands and, of course, travellers themselves from China to Vietnam, Bali to Thailand and Australia to Singapore.
Spoiler alert: Don’t book any flight tickets yet.
Well worth a read.
(and not just because I am in it!)
What Can South East Asia Hope for in Q4?
Surfing the same dispiriting thought wave, this week’s The South East Asia Travel Show podcast took a whistle-stop tour through the region.
With three-quarters of 2020 almost gone, South East Asia should be gearing up for an October Chinese National Holiday burst - followed by a final quarter tourism surge.
But, with Bali’s reopening busted, Thailand’s long-stay tourist visa scheme seems the only game in town (see below).
Meanwhile, Singapore is focused on opening essential business travel arteries and Malaysia’s border gates are bolted. Vietnam prevaricated on flight resumptions, but its cautious approach offers a hint of promise rather than plenty. Inbound arrivals to Indonesia and the Philippines seem far off given their struggles to contain COVID-19. Ditto Myanmar, which is experiencing an infection spike after months of reporting few cases.
So, realistically, what’s the most South East Asia can hope for in 2020?
Is there anything to be salvaged from the tourism year?
Listen to the podcast here.
Thailand Ties Itself in Tourism Knots
Thailand’s Special Tourist Visa Scheme has been, in almost equal parts, a subject of hype, confusion and dismay. Last Tuesday, it was provisionally approved by Thailand’s cabinet, but the exact scale and scope may yet be revised. As it currently stands, the scheme is predicated on 1,200 long-stay arrivals per month. Ordinarily, Bangkok airports alone would achieve that figure in about half an hour.
Whereas its now shelved precursor (“The Phuket Plan”) restricted visitors to the island of Phuket, that stipulation appears to have been removed (for now). Visitors arriving on approved charter flights (having self-quarantined and taken two COVID-19 tests before departure) will undertake a 14-day quarantine, and be permitted to stay in Thailand for up to 270 days.
The initial 90-day entry visa would (at present) cost THB2,000, which is extendable for two extra 90-day cycles. The scheme may, or may not, begin in October. There will likely be new bolt-on conditions.
At present, no other South East Asian government is laying similar cards on the table. So, are the region’s governments now planning ahead for the distribution of a vaccine in 2021 - or perhaps late 2020?
Either way, Thailand appears to be going it alone. For now.
Reads of the Week
Flights to nowhere raise bigger questions about Singapore Airlines’ future
Highly readable analysis by Eric Bea for CNA of the environmental impact of Singapore Airlines’ reported plan to offer Flight to Nowhere staycation packages for ‘air tourists’. Particularly liked this: “Young sustainability advocates launched a #SaveSingaporeAirlines initiative to gather more eco-friendly ideas to generate business. Suggestions include dining experiences inside grounded planes, or behind-the-scenes tours into airport operations.”
Why we couldn’t control the pandemic
I posted this provocative New York Times opinion piece on social media, and received mixed responses. Whatever our differing views about COVID-19, government approaches, vaccine development, travel bans, quarantines, border closures, this brings together various threads, strategies, successes and failings from Asia, Europe and North America. Merits a few moments.
From Australia to India and the Philippines, are coronavirus lockdowns working?
Challenging piece by John Power for the South China Morning Post addressing the short, medium and long-term consequences of locking down communities and countries. “As they battle new waves of infection and a vaccine remains up in the air, authorities are realising the need to untangle the health, economic and social impacts of their response to Covid-19 – a task that is technically difficult, if not impossible.”
Brighter Spot
Wearable Makers Take On COVID-19
The race is on for smart wearable developers to produce a “go to” product enabling users to regularly track whether they develop COVID-19 symptoms. Apple has joined the chase with a new blood oxygen sensor for version 6.0 of its watch. It plans to share the technology with researchers at three US health institutes to determine whether it can detect “early signs of respiratory conditions like influenza and COVID-19.”
Apple won’t be the only competitor. A slew of new wrist wearables is expected to hit the market later this year. A big factor will be price elasticity. Will Asian companies (and consumers) veer towards the cost-sensitive end of the market?
This week, Ilya Kravtsov, CEO of Singapore-based PouchNATION answers 4 key questions.
The firm, which describes itself as “South East Asia’s leader in crowd management technologies” launched PouchPASS, a wristband that enables users to monitor body temperature every minute. It uses “a sophisticated calibration algorithm” and a body temperature sensor, and synchronises the data with a real-time dashboard via a mobile phone or Bluetooth network. Alerts of a high temperature will pop up automatically.
How long did it take to develop the temperature tracking technology, and when did you launch PouchPASS?
We launched a Beta version in June. Then, after two months of testing across 11 countries, we launched the product in August. It took us more than six months to develop. The main part was developing the calibration algorithm, and making sure the results are precise across different individuals, countries and climates.
How has the response been? Which partners are you working with, and how are you selling to consumers?
The response has been phenomenal. We've got interest from all around the world, especially after we launched it on the Indiegogo platform. We work with many construction companies, healthcare providers and even professional sports teams such as the F1 Petronas Sepang Racing Team. We are selling both online and through distributors in many countries.
What is your competitive advantage to build market share?
Our main USP is our B2B product focus. We have an enterprise dashboard for organisations that most of the fitness bands don't have. Secondly, we believe our temperature measurements are extremely precise. The majority of devices either don't have temperature sensors, or their results are highly imprecise.
You are based in South East Asia, where consumers tend to be price sensitive. Is that a consideration for marketing PouchPASS?
Yes, for sure. Our B2B propositions are extremely competitive. With sufficient volumes, our prices can be as low as USD14-15 per band.
And, that’s a wrap for Issue 5.
Asia Travel Re:Set will return on Wednesday.
Until then, you can catch me on Twitter, LinkedIn and The South East Asia Travel Show.
Speak soon,
Gary