Accor COVID-19 Update

Over the past three weeks, the crisis has severely deepened with over half the worldwide population either confined and/or under lock-down. This has resulted in a virtual standstill of travel, dining and entertainment, which is vastly affecting our industry. Today more than half Accor branded hotels worldwide are closed, likely over two thirds in the coming weeks. One piece of good news is the confirmation of initial recovery of the Chinese hotel market, with mild improvements in occupancy and F&B activity.

The abrupt deterioration in the situation has prompted the Group to take drastic actions across its global operations. These actions are indispensable to limit the impact on earnings and cash, and necessary to prepare for the post-crisis recovery. In these unprecedented times, the Group stands more than ever by its employees, partners and communities, providing time, resources and access to its local and global network.

Mitigation measures

Measures were implemented as early as February. Given the situation, the Group has decided to take aggressive, incremental actions. Collectively, these include:

-      Travel ban, hiring freeze, reduced schedules and /or furloughing for 75% of global head office teams for Q2, resulting in a minimum €60m reduction in G&A for 2020,

-      Reviewed recurring investment plan for 2020 resulting in a €60m reduction in capital expenditures.

The Group is further streamlining all other costs (e.g. sales, marketing, IT), in line with lower system wide revenues.

Balance sheet

Thanks to its recent asset-light transformation and cash preservation strategy, Accor can today rely on a strong balance sheet, with more than €2.5bn in cash on hand and an undrawn revolving credit facility of €1.2bn. While much uncertainty remains on the duration of this crisis, the Group expects a severe impact on its 2020 performance but remains bullish on the long-term perspective of the hospitality industry, for Accor, its employees, its owners and shareholders.

Dividend and solidarity measures

In these unchartered territories, Accor’s Board of Directors has decided today to complement management actions outlined above, by withdrawing its proposal for a 2019 dividend payment of c. €280m.

After consulting with the Group’s main shareholders, JinJiang International, Qatar Investment Authority, Kingdom Holding Company and Harris Associates, Accor has decided to allocate 25% of the planned dividend (€70m) to the launch of the “ ALL Heartist Fund”, a Covid-19 special purpose vehicle. This fund will typically assist:

-      the Group’s 300,000 employees, pledging to pay for their COVID-19-related hospital expenses, for those who do not have social security or medical insurance,

-      on a case by case basis, furloughed employees suffering great financial distress,

-      on a case by case basis, individual partners facing financial difficulty,

-      in addition, the Group will further deploy its solidarity initiatives to support front-line healthcare professionals and non-profit organizations.

This initiative reflects the ambition of the Group and its shareholders to provide a meaningful and significant contribution to global solidarity initiatives to address the current health crisis while planning for future needs. This decision has received unanimous support from the Board members, who collectively decided to reduce their attendance fees by 20% to the benefit of the “ALL Heartist Fund”. Additionally, Sebastien Bazin, Chairman and CEO of Accor, will forego 25% of its compensation during the crisis. The cash equivalent will also be contributed to the Fund.

Sébastien Bazin, Chairman and CEO of Accor, commented: “Welcoming, protecting and taking care of others is at the very heart of what we do. In light of the urgency and the scale of the situation, we have decided to act in an immediate and meaningful way, in the spirit of our values and commitments. Through this impactful gesture, we wish to express our solidarity and gratitude to all those demonstrating courage and selflessness during this crisis. On behalf of the Board, I would like to thank the Group’s main shareholders. Without them, the “ALL Heartist Fund” would not have been possible. I also want to pay a special tribute to the Accor teams around the world. They are facing the current crisis with admirable courage, dedication and professionalism. As our industry is going through tough times, we have to make tough decisions, but Accor has a strong balance sheet which will enable it to withstand this crisis and emerge with strength during the recovery period. I am confident that Accor will soon rediscover the road to growth.”

ATIC strongly backs $130 billion JobKeeper package

The Australian Tourism Industry Council (ATIC) has strongly backed the Morrison Government’s eye-watering $130 billion JobKeeper package.

ATIC represents thousands of local tourism enterprises, where a feature of our industry is over 90% of 300,000 still registered tourism businesses are small to medium enterprises and sole traders that collectively employ 1 million people.

ATIC Executive Director Simon Westaway

ATIC Executive Director Simon Westaway said today’s package, once passed by Federal Parliament, represented a genuine lifeline and offer of hope to Australian tourism enterprises, most already facing their darkest hour.

Mr Westaway said for tourism firms, from sole traders to small or larger enterprises, to be directly incentivised to retain valued personnel as our industry faces its greatest ever challenge, is strongly welcomed.

“We naturally urge for the return of Federal Parliament and address this package of major significance swiftly and with appropriate scrutiny but bipartisan backing,” Mr Westaway said.

“Nobody is kidding themselves. The road back for many Australian tourism businesses is going to be incredibly tough. Our international border still remains closed and a number of States and Territories have shut themselves off to interstate visitors.

“The solution is simple. For our industry to again prosper to its once lofty heights we need to get on top of COVID-19. But we also need a tourism industry still with oxygen in its veins to effectively pivot and seize the genuine future opportunity the visitor economy is for our nation and the 1 million people we employ.

“The public health, safety and well-being of our fellow Australians must always remain our number one national priority and none more so than at this time. Our industry has stood solidly as one behind the all-of-government decisions that are designed to ensure this remains the case in facing the headwinds of COVID-19.”

Shinju Matsuri’s 50th Anniversary event postponed to May 2021

In response to the COVID- 19 crisis we have made the decision to postpone the 50th Anniversary of Shinju Matsuri to May 2021.

The 50th Anniversary event next May It will still feature signature elements of the usual Shinju Matsuri Festival including the Sunset Long Table Dinner, Floating Lantern Matsuri, taste journey Makan Dulu and celebratory art installation.

To celebrate Shinju Matsuri’s 50th Anniversary event, local artists Jacky Cheng, Jody Loaring, Michael Torres and Tomoko Yamada will join forces with international artist, Lisa Foo, to create a largescale installation at Town Beach that explores the theme of ‘Home’.

“We are all really looking forward to the 50th Anniversary Celebrations. The artist group will keep collaborating and creating to ensure the work truly captures the spirit of our wonderful community and unites everyone after this very challenging time.” Jacky Cheng – Broome Artist

Shinju Matsuri President Chris Maher said, “Despite the postponement, we are still working hard to plan a fantastic 50th Anniversary celebration event for both visitors and the Broome community. Holding Shinju Matsuri in May will allow us to kick start our tourism season and showcase our beautiful town to holidaymakers once more.”

ATIC: Where to for Australian #tourism to stay in the game during #COVID19

The Australian Tourism Industry Council (ATIC) said the economic and social calamity bearing down on the Australian tourism industry and its predominant small to medium business structure, has been thrown financial ‘life support’ by the Morrison Government’ trying to counter COVID-19 impacts.

ATIC represents thousands of local tourism enterprises, where a feature of our industry is over 90% of 300,000 registered tourism businesses are small to medium enterprises and sole traders that collectively employ 1 million people.

ATIC Executive Director Simon Westaway

ATIC Executive Director Simon Westaway said the fresh series of Commonwealth subsidised measures for small business enterprise under the Coronavirus SME Guarantee Scheme is undeniably a package of major significance at a critical time that can practically support many tourism businesses and try to hold onto jobs.

Mr Westaway said industry will also need to rapidly absorb today’s Commonwealth declaration that all non-essential travel within Australia should be cancelled at this time. This is alongside the mass new series of financial and regulatory measures now on the table to help support our country, our people and seek to retain jobs and keep business doors open against this backdrop.

“The Australian tourism industry has and must walk in lock step with authorities as our nation best tackles the public health response and get on top of the spread of COVID-19,” Mr Westaway said.

“As individuals as much as single businesses and as a community we all now have our role to play. Without getting on top of COVID-19 future sustained confidence in travel will not fully return. These are the toughest of times and resilience alongside keeping doors open and our people in roles are our major priorities.

“The rapid and dramatic changes in travel advisories, to the recent closure of some state and territory borders would of course be seen as unfathomable just months ago. But in these times our industry, a genuine economic and social pillar in Australia, must take the appropriate resilience measures in order to push through to the other side.

“ATIC urges industry to absorb what is now before it, a myriad of information and hone in on elements of current financial and economic packages that can help keep individual businesses resiliently stay in business, keep their people and be positioned to provide a future quality tourism proposition.”

Mr Westaway said Australian tourism enterprises and participants of the visitor economy are amongst those most exposed to the public health led response to COVID-19 with free-falling domestic and international visitor numbers, a halt in spending and future bookings and collective travel bans and restrictions.

“This is well targeted government support that can directly appeal and benefit many Australian tourism SMEs at no more critical time and will provide a new buffer against the calamitous state our great industry and now much of our economy finds itself”, Mr Westaway said.

The COVID-19 SME Guarantee Scheme’s core elements included offering wage subsidies and the vital provision of underwriting of SME loans to a 50% level as a government guarantee with annual turnovers of up to $50 million and an upfront 6-months freeze on repayments. He said the measures would be embraced by industry.

It follows on the heels of Commonwealth and major banks and lenders implementing measures to back eligible SME including a 6-month deferral of loan repayments.

“We welcome and encourage the federal bureaucracy to urge along the rapid flow of this new direct tourism SME support to as many as businesses as possible from the Scheme’s full commencement,” Mr Westaway said.

He said the vast majority of Australian tourism enterprises can capture the wage-subsidy addressing SMEs in one of two welcome ways on initial reading. Firstly, those with annual turnovers up to $50 million, will be paid as a cash payment equivalent to 100 per cent of the withholding tax reported over 2 financial quarters and could now reach a maximum cash boost of $100000, a major step-up from the previous $25,000 ceiling.

“The predominance of tourism businesses are micro sized (5 employees or under) and have no withholding tax obligations. ATIC understands now a minimum payment of $20,000 provides the sought-after cash injection that thousands of tourism providers can chase,” Mr Westaway said,

“The public health, safety and well-being of our fellow Australians must always remain our number one national priority and none more so than at this time. Our industry has stood solidly as one behind the all-of-government decisions that are designed to ensure this remains the case in facing the headwinds of COVID-19.”

ATE 2020 CANCELLED

Tourism Australia has today (Wednesday 18 March) confirmed that it is cancelling its flagship trade event showcase, the Australian Tourism Exchange (ATE), due to take place in Melbourne in May.

The decision follow’s today’s announcement by Australia’s Prime Minister and Chief Medical Officer no longer permitting non-essential organised events of more than 100 people, in addition to recently introduced travel restrictions requiring that everyone arriving into Australia must self-isolate for 14 days.

“Whilst the decision to cancel this year’s ATE is obviously deeply disappointing, and a further blow to our industry, the health and welfare of attendees has to be our primary concern,” said Tourism Australia Managing Director Phillipa Harrison.

“We’ve been monitoring the evolving coronavirus situation very closely and our scenario planning has, of course, included our forthcoming program of trade and industry events.

“We have made the decision to cancel ATE20 due to the situation unfolding globally and the effect it is having on travel.

“We will be providing a full refund of registration fees to all buyer and seller delegates,” Ms Harrison said.

Tourism Australia will continue to review all future events on an ongoing basis.

A list of frequently asked questions can be found here.

TRENZ 2020 Cancelled

Tourism Industry Aotearoa (TIA) and the Tourism Industry New Zealand Trust (TINZT)
are deeply disappointed to announce the cancellation of TRENZ 2020.

Only a short time ago we felt optimistic that May was far enough away to confidently
proceed with TRENZ 2020, however, the New Zealand Government has made the call
that all large public events and gatherings should be cancelled as part of New Zealand’s
national response to COVID-19.

We have been working through the details with the host region and our insurers and can
now confirm that TRENZ 2020 is cancelled.

We know that this will come as an enormous disappointment both to the delegates who
were due to attend the show and the team who delivers it every year. However, the
health and welfare of New Zealanders and visitors must remain the priority for all.

The TRENZ team is working through next steps and will be in touch as soon as possible
with more details. Please be patient as we work through this process.

We are well aware of the forward impact cancelling TRENZ 2020 will have on tourism
operators. We are investigating ways to support the industry through this challenging
time.

We appreciate the uncertainty that the travel restrictions have had on our international
buyers and we greatly appreciate their patience and understanding. We look forward to
hosting them at TRENZ in New Zealand in 2021.

TIA and the TINZT are greatly appreciative of your understanding. Our thoughts are with
those affected by COVID-19 and we are thankful for the efforts of those working to
prevent and contain the spread of the virus.

We will be updating the TRENZ website regularly so please keep checking back for more
information. Please see our updated FAQs. The most up-to-date advice around COVID19 can be found through the Ministry of Health, the Ministry of Foreign Affairs and Trade
and TIA’s website.

AdventureELEVATE postponed

"Adventure Travel Trade Association, Eugene Cascades & Coast, and Travel Oregon have made the decision to postpone the AdventureELEVATE event originally scheduled on May 5-7th 2020 in Eugene, Oregon due to the growing public health and safety concerns associated with the Coronavirus 2019-nCoV outbreak. We are working to secure a date in September 2020 and will communicate this as soon as we have confirmed. Thank you for your patience."