The world travel industry, which was still reeling from the security fears sparked by the Sept. 11 terrorist attacks and the Iraq war when the deadly SARS virus delivered another punch, will gather in Portugal later this week to discuss the crisis pounding the sector.
Over 60 speakers from around the world, including a number of presidents of major airlines and hotel chains, are expected to flock to the southern seaside resort of Vilamoura on Thursday to attend a two-day conference organized by the World Travel and Tourism Council (WTTC), a grouping of travel industry chiefs.
It will be the first major global meeting of tourism heads since the outbreak of SARS -- which has claimed more than 500 lives in about 30 countries -- led to a sharp fall in hotel bookings and flight cancelations around the world.
"I can't remember when the travel and tourism sector has faced so many challenges," said Alex Kyriakidis, the head of travel, tourism and leisure at consultancy Deloitte and Touche who will take part in the conference.
While tour operators had hoped a quick end to the war in Iraq would lead to a release of pent-up travel demand, recent industry figures suggest the appearance of SARS has given travellers a new reason to stay put.
International travel reservations group Amadeus said last week worldwide bookings had fallen by 16 percent in the first three weeks of April compared to the same time last year because of concerns over the spread of the virus.
Bookings for destinations in Asia, the region worst affected by SARS, had fallen 60 percent according to the Madrid-based firm, which runs the world's second largest travel reservation system.
Airline industry group International Air Travel Association, which brings together some 280 airlines representing more than 95 percent of international air traffic, has said fear of travel will cause the deeply troubled industry to lose about US$10 billion this year.
Airlines in Asia have been especially hard-hit. Hong Kong's Cathay Pacific Airways' passenger numbers are down about 75 percent from the same period last year, while the number of flights has been cut by about 45 percent.
Singapore Airlines, the most profitable airline in the region, has reduced its flights by 20 percent while Australian flag carrier Qantas is due to sack 1,400 personnel by next month because of cuts in flights.
The industry has so far reacted to the crisis by slashing prices in a bid to tempt travellers back onto planes and into hotel rooms.
Vietnam Airlines has cut ticket prices by as much as 75 percent for tourists heading to and from Vietnam from Australia, France, Japan and South Korea to try to pump vitality into summer vacation travel bookings.
The offer, which was prepared in cooperation with the nation's national tourist board, lasts until the end of July.
But even though the World Health Organization has said Vietnam has gotten its SARS outbreak under control, government officials in Hanoi do not expect a full recovery in passenger arrivals until the next high season in November.
Germany's TUI meanwhile, the world's biggest tourism group, launched a new low-cost tour operator on Friday called Discount Travel which will offer reductions of up to 40 percent on packages that TUI's other operators are unable to move.
But industry analysts warn the travel and tourism sector, which accounts for over 200 million jobs and over 10 percent of global output according to the WTTC, will need to do more than cut prices to survive the current crises.
NO-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
STATE OF THE NATION: The legislature should invite the president to deliver an address every year, the TPP said, adding that Lai should also have to answer legislators’ questions The Chinese Nationalist Party (KMT) yesterday proposed inviting president-elect William Lai (賴清德) to make a historic first state of the nation address at the legislature following his inauguration on May 20. Lai is expected to face many domestic and international challenges, and should clarify his intended policies with the public’s representatives, KMT caucus secretary-general Hung Meng-kai (洪孟楷) said when making the proposal at a meeting of the legislature’s Procedure Committee. The committee voted to add the item to the agenda for Friday, along with another similar proposal put forward by the Taiwan People’s Party (TPP). The invitation is in line with Article 15-2