Australia
Australia’s event planners are returning to international meetings with some anxiety, having seen border rules at home change on the fly.

This is despite the Australian government opening travel lanes with Singapore, Japan and South Korea recently, with more travel bubble arrangements planned for 2022.
Some of Australia’s most prominent event planners said they would first like to see a number of things happen domestically before they could become confident about doing events abroad.

“I think we’ve got a little way to go yet… just to show that normal business can be undertaken safely and effectively before they take that commercial risk of taking people offshore,” said Kate Smith, managing director at PCO Waldron Smith Management, and immediate past chair of Meetings & Events Australia.

“The first step is ensuring we can travel around nationally, easily and effectively to attend business events without any great risk. Then I think we’ll start to look at outbound business. That confidence piece is really crucial across the board and the ability to bring people back together in any situation is really important,” continued Smith.

Australia’s domestic borders have been a case of sliding doors, opening and closing to selected states depending on the perceived risk of visitors bringing the Covid-19 virus and its variants into their state.

Of all the states, Western Australia has the strictest border controls and has announced that the earliest date it would welcome visitors would be in February 2022, causing frustration among event planners.

“I think people are ready to travel overseas,” opined Renee Bennett, managing director of Encanta and a board director at Business Events Perth.

“But I believe domestic events will be king for a while, and I personally feel that Western Australia is going to struggle with that because the majority of the population is on the east coast. We’ve lost so much because of uncertainties, with so many events being cancelled or postponed for 2022 because the shutdowns happen very swiftly. That has made it challenging for any of our clients,” she added.

Bennett also said convention bureaus could provide more advocacy around protecting and underwriting events that are on the books at the moment.

“By just cancelling an event 48 hours beforehand when so much has been outlaid (financially), it just makes it not feasible for many to instil that confidence. We’ve got people whose livelihoods and homes are on their line when they invest in events and therefore cancelling an event where we have to refund people and absorb incurred costs isn’t good enough,” lamented Bennet.

Bennett applauded New South Wales, which has offered to underwrite events over the summer period but underscored that this was needed as a national scheme for an industry that contributes A$36 billion (US$26 million) to the economy.

On a positive note, Smith said despite the many challenges, everything is heading in the right direction, and confidence about commercial risks for events is growing quickly. – Adelaine Ng

“Corporate incentives used to mix leisure with teambuilding or motivational sessions. But with additional travel costs, itineraries will need to be simplified to offer mainly leisure (elements).”
Vidya Hermanto, Chief experience officer, Panorama, Indonesia

India
A rebound in business events in 2021 has sparked expectations for a stronger year come 2022, although industry stakeholders predict that domestic gatherings will remain dominant.

S D Nandakumar, president & country head – B2B at SOTC Travel, noted that while corporates are enquiring on international travel, ongoing Covid situation and restrictions will prompt events to stay on home ground.

Subhash Goyal, chairman of STIC Travel & Air Charter Group, agrees and explains that more international scheduled flights need to resume for international travel and events to return.

Despite the prevailing sense of caution, some overseas business events have occurred.
SOTC Travel delivered two “mega groups” to Dubai recently. More than 600 attendees were involved, and the programme featured a cricket tournament and the Expo 2020.
The company also organised a corporate gathering in the Maldives, and Nandakumar expects demand for business events in Switzerland to soar in 2022.

Thomas Cook India is attending to strong interest in overseas events from Indian companies, with destinations such as Dubai, Russia, South Africa, Switzerland and the Czech Republic all earmarked by clients for 2022.

“Outbound demand will grow significantly in 2022, considering that vaccination rates are improving in India and overseas, creating a sense of confidence among corporate event groups,” opined Naveen Manchanda, president, Indian Association of Travel & Tourism Experts.

Goyal echoed the optimism, saying that “things will start coming back to normal” in 2022, and that pre-Covid outbound MICE demand will return by 2023.

Indian PCOs applauded several active tourism boards, such as those in Singapore, South Africa and Dubai, that have continued to engage them during the travel freeze, keeping them updated on the various business events offerings in their destinations.
Going forward, Nandakumar said CVBs and MICE vendors would need to continue to assure the marketplace of hygiene and safety.

“(Valuable information) includes the implementation of health, safety and sanitisation protocols; entry/exit requirements; and optimal group sizes,” remarked Nandakumar, adding that the provision of contactless services and flexible booking options were just as important for rebuilding travel confidence. – Rohit Kaul

“Companies don’t feel comfortable with planning an overseas incentive trip while Covid-19 is still not tamed.”
Adam Kamal, Head of procurement & domestic market, 
ICE Holidays, Malaysia

Indonesia
Interest in conducting overseas business events is growing among local companies but actual conversion in 2022 will depend on the pandemic situation, government restrictions, visa and airline policies as well as company budgets.

According to Indonesian event organisers, the government’s 10-day quarantine requirement presents the steepest obstacle.

Vidya Hermanto, chief experience officer of Panorama, said: “When the government reduced the quarantine period from eight to three days, we had incentive groups travelling to Switzerland and Turkey. When it was increased to seven days and then to 10, a number of clients decided to postpone their plans.”

Yento Chen, CEO of Destination Tour, said lengthy quarantines would make an incentive programme impractical.

“A trip to Europe usually takes up to 14 days,” Chen explained. “When (the return quarantine) is for 10 days, participants will have to be out of office for almost a month.”

Fluid government regulations are not the only issue, according to Agustinus Pake Seko, president director of Bayu Buana Travel Services. Technology companies in Indonesia that have replaced business travel with virtual meetings will continue to meet online, while multinational companies in Indonesia are still putting their overseas trips on hold.

On the bright side, he expects NGOs that have postponed their trips over the last two years to finally resume plans in 2022 – barring yet another wave of infections.

For now, corporate incentive programmes are changing as travel continues to face restrictions. Agustinus said clients have been gifting their staff Bayu Buana membership cards, which allows them to choose their individual reward trips at their own pace.

He expects small incentive group travel to also trend strongly in 2022, evidenced by recent client events for 15 to 30 top achievers at “exotic places” such as Amanwana, Nihi Sumba and Lelewatu Resort Sumba.

Budget constraints will also hamper outbound events recovery, warned Pauline Suharno, president director of Elok Tour and chairman of the Indonesian Travel Agents Association.

“Many companies are facing budget constraints. With Covid-19 tests, increased insurance coverage requirements and pricier airfares, travelling has become more expensive. As such, some companies will hold back outbound travel plans,” she said.

Another change in post-lockdown events structure, according to Vidya, is the simplification of itineraries.

“Corporate incentives used to mix leisure with teambuilding or motivational sessions. But with additional travel costs, itineraries will need to be simplified to offer mainly leisure (elements),” she said. – Mimi Hudoyo

Malaysia
The Malaysian government may have relaxed border restrictions, allowing Malaysians to travel overseas for leisure or business events, but corporate demand for overseas activities has yet to return.

Event planners blame the compulsory seven-day quarantine upon return as well as pricey airfares.

Zahira Tahir, founder and CEO of Universal Holidays, told TTGmice that reduced flight frequencies to overseas destinations have driven up airfares, making them “ridiculously expensive”.

Scant interest in resuming overseas events is also a result of reduced destination promotions by overseas CVBs in Malaysia throughout the travel freeze.

While destinations such as Thailand, Dubai and Turkey have reopened to travellers, destination promotions to lure business events from Malaysia have been dull compared to pre-pandemic times, Zahira said.

The high number of Covid-19 infections in Malaysia as well as worries over new variants are also keeping Malaysian companies from planning any overseas events, observed Mint Leong, managing director at Sunflower Holidays.

To safeguard their staff, companies are choosing to reward their top performers with cash or domestic holidays. And with the pandemic affecting many people financially over the past two years, cash rewards have risen in popularity.

Leong elaborated: “Frequent and long lockdowns in Malaysia have affected many businesses, while those employed have to accept pay cuts and reduced work hours.”

With overseas travel bookings still elusive for her company, Leong thinks that any return in events outside of Malaysia would only be possible at the end of 2022, she said.

Malaysia’s lacking outbound confidence has been further dented by Omicron worries, opined Adam Kamal, head of procurement & domestic market, ICE Holidays. The new variant has led many countries to close their borders or create new restrictions to contain potential spread. Such unpredictable government policies are causing companies to think twice about planning overseas events and sending staff of trips.

In response to travel uncertainties, Malaysian companies are choosing to take their events to domestic destinations such as Desaru, Penang and Langkawi.

Adam said: “These are destinations that are good for both leisure and business, and are easily accessible by road and air from Kuala Lumpur.

“We are also proposing to clients to consider cruising as an option for MICE, especially as Star Pisces has just started operating from Penang to Langkawi in December,” he said. – S Puvaneswary

“Mass corporate event travelling will be kept to a minimum for the time being to mitigate corporate risk.”
Nelson Khoo, Head of events – Singapore & Indonesia, 
CWT Meetings & Events

Singapore
Strong travel sentiments dominate Singapore companies, as borders begin to gradually open across the world, but new Covid-19 variants are again threatening confidence.

Alexis Lhoyer, co-founder & chief business officer of Chab Events, told TTGmice that travel interest hinges on companies’ travel policies and risk appetite. Some conservative clients have not allowed any resumption of corporate travel despite Singapore’s Vaccinated Travel Lane (VTL) arrangements with select countries.

On the flipside, more adventurous clients have gone ahead to Phuket for events in late December, while there has been an uptick in queries for outbound travel, in particular to European destinations with a VTL arrangement with Singapore.

With VTLs still in its “infancy stage”, Nelson Khoo, head of events – Singapore & Indonesia, CWT Meetings & Events, expects domestic events to continue to reign supreme in 2022.

“Mass corporate event travelling will be kept to a minimum for the time being to mitigate corporate risk,” he added.

Travel regulations that can change at a drop of a hat are spooking CWT clients, many of whom are in a “wait-and-see mode” when it comes to travel. Khoo added that companies have had to deal with “steep learning curves on safe management measures and planning processes”.

Khoo expects demand for overseas events to pick up when clients are able to access destinations with a repertoire of successful in-person events, and when VTLs “reach a point of stabilisation and confidence is strengthened (with) minimal changes to travel plans”.

This would likely happen in 3Q2022, he offered.

Also seeing clients taking a wait-and-see approach is Melvyn C Nonis, director of M.I.C.E Matters. He pointed to possible movements in 2H2022, albeit with smaller groups of 80 to 120 pax instead the 250 to 500 attendees seen pre-pandemic. Domestic meetings, conferences and teambuilding events will be a mainstay for 1H2022. Nonis is hopeful that Singapore’s restrictions will be further eased by then.

For outbound events to truly rebound, events specialists in the city-state say consistency in travel policies must first be established.

“We will need accurate, real-time information and updates, especially on SOPs (standard operating procedures), so that there will be minimal inconvenience to organise and manage an event, and keep costs down,” said Nonis.

Lhoyer agrees, saying: “At least a visibility of three to four months to ensure planning won’t get wiped out by new measures would be great. Right now, it is the lack of clarity and visibility that keeps projects in limbo.”

When asked about Omicron’s impact on business events’ recovery, Lhoyer said it presented just another challenge, as Delta has, and expressed confidence in overcoming it.

Meanwhile, Khoo said the new variant would extend decision-making processes and add more caution to event planning. – Rachel AJ Lee

Asia-Pacific governments have been loosening their steel grip on international borders since 2H2021, but at your November AAPA Assembly of Presidents meeting, you noted that international passenger volumes across the region remain deeply depressed, at just six per cent of pre-pandemic levels compared to an average of 40 per cent in other regions. What is causing this recovery crawl?
There is modest pick-up in demand in November 2021, coinciding with the easing of restrictions in several Asia-Pacific markets. (Singapore’s) Vaccinated Travel Lanes (VTLs) and travel corridors are (resulting in) a surge in bookings as soon as they are launched, which is indicative of the pent-up (travel) demand.

Such travel lanes and corridors are still too few and far between but should provide the momentum for recovery in 2022 if expanded as planned. Big markets like China and India also need to open up for recovery to commence in earnest.

Is the fear of travel – stemming from a fear of infection and death so widespread throughout this pandemic – among consumers a factor too?
The main factor is travel restrictions, especially quarantine. Quarantine, as well as the plethora of regulations with each government keeping its own counsel, dampen consumer sentiment and travel confidence as potential travellers are confused and (doubtful).

The Omicron variant is making plenty of headlines, and causing border restrictions to be tightened once more and disrupting travel rebound. What should governments learn from this as they attempt to live with Covid?
The knee-jerk reaction is understandable as governments are wary of the new variant of which very little is known. As long as the re-imposition of restrictions is temporary and short-lived to buy time or fine-tune risk-based measures, there should not be too much delay to recovery.

The reality is that governments will have to base their decisions on evidence and science, which require data to be gathered and evaluated.

Hopefully, Omicron is only a fly in the ointment and not a spanner in the works. It is heartening to see several governments in the region sticking to their recovery roadmap and reintroducing only some restrictions to address the immediate risks that have been identified.

In AAPA’s opinion, what ingredients are critical for a more stable travel and tourism recovery, and what can AAPA and its Assembly of Presidents do to move regional governments down the right track?
Living with the virus means we have to take its evolution in our stride. Governments that have adopted a Covid-normal strategy and are adopting risk-based policies and practices are laying the path to recovery.

The association is calling on governments to collaborate across borders, work with the industry in applying risk-based measures and restore international quarantine-free travel progressively.

Sticking or reverting to hard borders and onerous quarantine rules would not only harm travel and tourism but also the economy and livelihoods of the people. Travel corridors and VTLs once started should be sustained so as not to undermine the demand for cross-border travel.

Generally speaking, governments should redouble efforts to spread the access to vaccines as prolonged vaccine inequity will only delay the timeline to recovery.

Besides travel recovery, AAPA has another important commitment for 2022, and that is to cut carbon emissions to net zero by 2050. Will you tell us more about this goal and how aligned Asia-Pacific airlines and authorities are with this mission?
AAPA airlines committed to the net zero emissions goal by 2050 on September 13, 2021. The focus for the industry at the moment is on ICAO CORSIA (Carbon Offsetting and Reduction Scheme in International Aviation), which is a market-based measure already available for international airline operators to reduce their carbon emissions.

The longer term focus is SAF (Sustainable Aviation Fuels), for which the airlines will collaborate with other stakeholders, namely governments, fuel suppliers, airports as well as manufacturers of aircraft and engines.

Government support to uphold CORSIA as well as to invest and incentivise SAF production will be crucial as contribution for emissions reduction from SAF use is expected to be up to 75 per cent. Generally speaking, taxes and charges increase cost without benefit to the environment, while support and incentives help the efforts to reduce emissions.

Domestic tourism has been the saving grace in the Philippines’ post-pandemic travel recovery, given its estimated 110 million population – the second-largest in South-east Asia – who are eager to travel.

This goldmine is an anchor of hope in dire times like this when international tourism dries up.

Consider this: In 2019, the Philippines recorded a whopping 109.75 million domestic trips that generated 3.14 trillion pesos (US$62.7 billion) in tourism revenue, dwarfing the US$9.5 billion in foreign exchange receipts from 8.26 million foreign arrivals.

It plunged to 24.35 million domestic trips in 2020, stymied and stunted by pandemic lockdowns starting March of that year.

“Bringing in just half of the 2019 domestic tourism revenue would be “more than enough” for tourism to recover, quipped Philippine Tour Operators Association (Philtoa) president, Cesar Cruz.

Tourism is already beginning to coast along. “It’s still not as great, but moving, especially due to the fact that there are areas with fully vaccinated workers and population,” said Aileen Clemente, chairman and president, Rajah Travel Corp.

Concurring, Hotel Sales and Marketing Association (HSMA) chair, Margie Munsayac, observed that “local government units (LGUs) are slowly opening borders, restrictions are easing, and new products are being offered in each LGUs – and these make Filipinos consider exploring the various attractions of the Philippines once again”.

“We believe our patriotism will kick in. Filipinos will support local tourism which drives economic activities as well as employment in 
the tourism industry,” Munsayac shared.

Prospects are indeed sanguine to the extent that since several months ago, travel consultants have started offering tour packages locally and abroad. One of them, Ritchie Tuano, head of Asiareps Travel, has formed a consortium with seven other travel agencies to sell attractive packages in collaboration with airline partners, hotels and local tour operators to “jumpstart tourism”.

“We provide travellers well-priced packages as much as 30 per cent off, while helping destinations slowly rebuild their business,” Tuano said.

While the Omicron variant has prompted the country to delay the reopening of its international borders, initially targeted for December 2021, hotels in destinations like metro Manila and nearby Tagaytay have reported a pick up in domestic bookings and reservations, ahead of the peak holiday season.

A good sign is that HSMA’s September Online Sale “had doubled its 2022 sales compared to 2021, with metro Manila, Tagaytay, Boracay, Bohol and Cebu (emerging) as top preferred destinations,” Munsayac said, adding that triple the number of vouchers were sold as dining and banquet offers were also up for sale in addition to accommodation.

Industry recovery has also been buoyed by balikbayans or returning Filipinos residing abroad – mainly from the US, which is the country’s third biggest source market – who escape winter to visit relatives and friends back home. Another boon for the sector are overseas Filipino workers (OFWs) who go on regular home visits, bringing friends and colleagues from their country base.

Returning and departing OFWs have proven a lifeline for quarantine hotels which would otherwise have scant revenue amid the pandemic.

As well, the pause in tourism gave overcrowded destinations including Boracay some much-needed rest and regeneration. Certainly, the carrying capacity for Boracay and other destinations will have to be implemented as part of the safe travel protocols drawn up by the Department of Tourism (DoT) and the destinations’ respective LGUs.

Clemente said that “because of the lockdowns, one thing that badly needed attention is research. A lot of this is happening now, as well as taking stock of tourism asset inventory, measuring sustainability and carrying capacity”.

The lull in travel was also an opportune time to build and improve infrastructure, among them the new high-tech terminal of Clark International Airport, Camiguin’s domestic airport, and the soft opening of luxe Hotel Okura Manila.

This also paves the way to enhancing Philippine tourism products and developing new ones to adapt to changing traveller preferences. A DoT domestic travel survey showed that travellers favour outdoor spaces and activities, leaning towards eco-tourism, rural and farm tourism.

Clemente saw further rural developments that are open air – a trend which she predicts will grow, alongside the spread of greater utilisation of the country’s coastlines for tours.

She expressed hope that operators will develop more farm tours which promote farm produce that are indigenous to the Philippines and cannot be found anywhere else.

Along this line, Cruz said Philtoa has created several tour packages with outdoor activities; and developed farm, nature-based and gastronomy tour packages, mostly interzonal, within the island of Luzon.

Alas, just as the Philippines’ tourism recovery is gaining momentum, the industry faces yet another blow, with typhoon Odette thwarting travel rebound in parts of the country.

But if there’s one thing the pandemic has shed light on, it is the resiliency of the tourism industry. Looking ahead, the Philippines plans to build a more sustainable and resilient tourism economy.

Tourism secretary Bernadette Romulo-Puyat said the Philippines has already “shifted to high-value, low-impact, low-density travel that offers more meaningful and immersive experiences between a tourist and the local communities”.

Romulo-Puyat plans to continue empowering rural communities in tandem with LGUs to manage their own attractions while practising responsible and sustainable tourism.

The pandemic has taught us that “it is no longer enough to have the best destinations because we must also ensure first and foremost that they are safe”, she said, adding that the country’s tourism recovery plan is anchored on sustainability which the DoT has long advocated for.

She opined: “What good is spurring recovery when it benefits us only short-term?… The socio-economic benefits must be enjoyed also by future generations.”