HONG KONG - Hong Kong’s travel industry has been one of the most severely affected sectors, due initially to the social unrest in 2019 and then, before any recovery was possible, the Covid-19 outbreak.
They will make use of this period to enhance product and service qualities, redefine strategies, upgrade our website, improve IT and marketing efficiencies to prepare for the market rebound in the later part of the year.– Ronnie Ho, chairman of the long-established Jetour Holding Ltd travel agency
With both inbound and outbound sectors hard hit by travel restrictions, travel agents and associations are seeing cancellations of tours across the board.
“Over the past month we have been actively monitoring travel risk assessments advisories, conscientiously tracking all travel transactions and enabling technology for clients to access traveller locations, reservations and relevant travel alerts,” says Bertrand Saillet, managing director FCM Travel Solutions, Asia at Flight Centre.
“The well-being of employees and clients will take absolute precedence.”
The FCM team is working closely to keep up with airline penalty waivers and route changes, visa and consulate information changes plus immigration updates, and government health ministry information with a daily bilingual travel advisory, FCM Hub, and app.
Tommy Tam, chairman of SIPA (Society of IATA Passenger Agents) and owner of Arrow Travel Agency Ltd, says he sees business, leisure, package tours and MICE travel affected. He adds that due to the severity of the situation there is “really no comparison with SARS”.
At TICHK (Travel Industry Council of Hong Kong) Alice Chan, executive director, cites the average of 10,000 visitors a day during the worst months of SARS, compared with as little as 3,000 during the first two weeks of February 2020.
“For the outbound tour market, SARS did not affect the Chinese New Year peak season in 2003, but over 3,400 tour groups to the mainland were cancelled this Chinese New Year holiday period,” she said.
Focusing within the business, Ronnie Ho, chairman of the long-established Jetour Holding Ltd travel agency, says he has been negotiating for rent reductions, suspending promotions and advertising, cutting all unnecessary spending, and joining forces with key travel agents and tour operators to petition for a profit tax wavier for the fiscal year 2019.
Most believe the government’s one-off subsidy of HK$80,000 (US$10,261) will help smaller agents rather than the bigger ones.
Says Ms Chan, “The industry had expected the government to act faster and do more in alleviating travel agents’ hardship, such as helping them to get rental reductions, providing free parking spaces for tour coaches and granting tax concessions.”
Mr Ho says the Jetour team “remains fully vigilant, and spirit remains high”.
“They will make use of this period to enhance product and service qualities, redefine strategies, upgrade our website, improve IT and marketing efficiencies to prepare for the market rebound in the later part of the year.
“We are confident that once the crisis is settled, the pent-up demand shall stir up a dynamic market rebound,” Mr Ho adds.
“The present measures on travel restrictions are responsible and wise,” says Mr Saillet. “Although it can hurt in the short term, these collaborative efforts will ultimately help to restore market equilibrium at a much quicker pace so that industries become commercially viable again.”