Breaking Travel News interview: Morten Andersen, general manager, Signiel Seoul

With the Evian Spa at Signiel Seoul having been recognised as one of the best in Asia by voters at the World Spa Awards, Breaking Travel News chats to hotel general manager, Morten Andersen, to find out more

Breaking Travel News: Congratulations - Signiel Seoul Evian Spa has been honoured with the title of South Korea’s Best Hotel Spa at the World Spa Awards. How does it feel to have taken the prestigious title?

Morten Andersen: It is a great pleasure and honour for Signiel Seoul’s Evian Spa to be named South Korea’s Best Hotel Spa at World Spa Awards.

Our executives and employees of each department have made great efforts to win this award and thus, we are very proud of what we have accomplished altogether.

We also believe it is because customers who experienced Evian Spa were fully satisfied with the facilities and services that we were able to achieve this valuable result.

BTN: Can you tell me a little about the brand – what is on offer to the wellness traveller there in the capital of South Korea?

MA: Signiel is a premium landmark hotel brand introduced by Korea’s largest hotel group, Lotte Hotels & Resorts.

Signiel Seoul is the first hotel under the Signiel brand, and is the highest-rise hotel in Korea.

Its rooms are individually designed to reflect Korean aesthetics along with panoramic skyline and river views of the city.

In sync with such world-class facilities, Signiel Seoul’s dining is a paradise for epicures as a gourmet hotel. Signiel Seoul is the one and only hotel in South Korea which obtained a Michelin star for two of its restaurants - “Stay, Modern Restaurant” by chef Yannick Alléno and “Bicena”.

Evian Spa is also in Signiel Seoul - the third branch in Asia.

Signiel is defining the dimension of luxury, service, and value associated with excellence beyond imagination.

The hotel seeks to become the place where one dreams of staying at least once in one’s lifetime, a chance to live beyond expectations.

BTN: How useful are the World Spa Awards when it comes to promoting the brand in the global hospitality space?

MA: Signiel Seoul actively participates in travel industries all around the world, and the award has given us another chance to enhance our brand awareness on a global scale.

We are confident that visits to Signiel Seoul through Evian Spa will increase more in the future.

BTN: This has been a challenging year for hospitality everywhere – what ambitions do you have for a revival as we move into 2021?

MA: Currently, domestic travel is more active than ever in South Korea, and the demand for premium brands such as Signiel has highly increased to meet the trend referred to as ‘hocance’ - (a portmanteau of hotel and vacation).

We will do our best to satisfy all guests visiting Signiel Seoul with more diverse and unique promotions and services.

Furthermore, as a premium landmark hotel brand representing South Korea, Signiel Seoul will faithfully serve as a venue for VIP events.

It goes without saying that by 2021, global situation concerning Covid-19 is hoped to improve so that guests outside the country are able to have more opportunities of experiencing Signiel Seoul.

More Information

Conceived as a living multi-sensory entity entirely dedicated to wellness, Evian Spa Seoul offers a unique experience of premium hydration in a relaxing environment.

Mimicking the cycle of water, the course of treatments explores all states of water to stimulate every senses.

Find out more on the official website.

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Accor reopens hotels as Covid-19 peak passes

Hotel giant Accor has seen revenue fall by 52 per cent in the first six months of financial 2020.

In total the company took in £826 million over the period, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell into -£204 million.

Sébastien Bazin, chief executive of Accor, said: “The shock that our industry is experiencing is both violent and unprecedented.

“Against this backdrop, we have managed to limit the impact of the crisis: on our performance by taking immediate steps to protect our resources and, thanks to the group recent years transformation and our sound financial structure; on our employees by implementing concrete and immediate support measures.

“The peak of the crisis is undoubtedly behind us, but the recovery will be gradual.”

In response to the crisis, the biggest hotel group in Europe plans to cut 1,000 jobs as part of a £180 million per year cost saving plan.

Accor hopes to reduce costs by 17 per cent compared with 2019.

“Having taken these emergency steps, we must now finish the job from an asset-light model to a full asset-light company,” added Bazin.

“Beyond Covid-19, this is essential.

“Accor must become simpler, leaner, more agile and even closer to the field.

“These initiatives will enable us to extend our leadership, make our decision process more efficient and boost our recovery.”

Accor runs high-end chains such as Raffles and Sofitel, as well as budget brands such as Ibis.

In more positive news, the company said that 81 per cent of its hotels were now open and that it had a solid liquidity position of more than £3.6 billion at the end of June.

Bulgari Resort Dubai to open in December

Bulgari Hotels & Resorts will welcome the opening of Bulgari Resort Dubai on December 7th; an urban oasis on Jumeira Bay.

An ultimate urban resort, Bulgari Resort Dubai is part of The Bulgari Resort & Residences Dubai, developed by Meraas, a leading Dubai-based holding company.

Located on the magical seahorse shaped island, it is set to become the destination of choice for visitors seeking the solitude of an island escape, the residential feeling of a private house, yet situated just minutes from the heart of the vibrant city and its cultural attractions.

“The Bulgari Resort & Residences Dubai is another milestone for the Bulgari Hotels & Resorts collection and represents a tribute to the importance of the Middle East market for the Bulgari brand.

“It is an honour for us to partner with Meraas on this extraordinary project, which brings the best of the Italian design and lifestyle culture to one of the most modern and future oriented city in the world,” said Jean-Christophe Babin, chief executive, Bulgari.

This newest addition to the Bulgari Hotels & Resorts collection is the fifth in the group, following on from the most recently launched Bulgari Hotel Beijing, which opened in September 2017.

As with all Bulgari Hotels & Resorts, Bulgari Resort Dubai was designed by renowned Italian architectural firm Antonio Citterio Patricia Viel.

Both the interiors and exteriors have been created with the same detail and precision of a Bulgari jewel: pairing rare, raw materials according to colour, texture and feel, and sculpting them into objects of enduring beauty. 

The resort includes 101 hotel rooms and suites and 20 hotel villas, all exquisitely furnished with the highest quality Italian luxury furniture brands such as Maxalto, Flos, Fexform and others, in an expression of the quality of Made in Italy.

All rooms and suites have expansive views over the breathtaking Dubai skyline or the Arabian Gulf, with large balconies to truly soak up the magnificent scenery.

Commenting on the completion of Bulgari Resort Dubai, Abdulla Al Habbai, Meraas Group chairman, said: “We are proud to deliver The Bulgari Resort & Residences Dubai, a first-of-its-kind master development in scale and magnitude for Bulgari.

“Our partnership stems from shared values and a common objective to offer unique and exquisite experiences in Dubai and the region. 

“We are confident this project will contribute and will add a new dimension to the tourism and hospitality landscape in-line with the Dubai Vision 2020 for tourism and strengthen Dubai’s global position as a leading tourism destination.”

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Germany and Sweden removed from UK quarantine safe list

Passengers arriving in the UK from Germany and Sweden will need to self-isolate for two weeks before then following domestic rules after changes in government Covid-19 restrictions.

Arrivals from the two countries will need to self-isolate from 04:00 on Saturday.

Germany and Sweden have been removed from the travel corridor list following an increase in confirmed cases of coronavirus.

Data from the Joint Biosecurity Centre and Public Health England has indicated a significant change in both the level and pace of confirmed cases of coronavirus in both destinations, leading to ministers removing these from the current list of travel corridors.

There has been a consistent increase in Covid-19 cases per 100,000 of the population in Germany over the past four weeks, with a 75 per cent increase in total cases over this time period.

In Sweden, new cases per week have increased by 34 per cent over the same time period.

People currently in Germany and Sweden are encouraged to finish their trip as usual, following the local rules and checking the Foreign, Commonwealth & Development Office (FCDO) travel advice pages for further information.

In England, everyone must currently stay at home, and may leave only for a very limited set of reasons, including for work or education.

This means people can no longer travel to take holidays, or travel internationally – unless for work or other legally permitted reasons.

The FCDO has updated its travel advice to reflect this.

At the same time, Denmark has been immediately added to the quarantine list, with passengers arriving from the country expected to stay at home for two weeks from today.

“I understand that this will be concerning for both people currently in Denmark and the wider UK public, which is why we have moved quickly to protect our country and prevent the spread of the virus to the UK,” explained minister for transport, Grant Shapps.

“Health authorities in Denmark have reported widespread outbreaks of coronavirus (Covid-19) in mink farms, with a variant strain of the virus spreading to some local communities.

“The chief medical officer has therefore recommended that, as precautionary measure, all those returning from Denmark should self-isolate for 14 days.”

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ABTA offers Brexit guidance on Tour Operator Margin Scheme

Following discussions with ABTA, HMRC has confirmed that once the transition period ceases on January 1st, the VAT charged on holidays through the Tour Operator Margin Scheme (TOMS) on travel outside of the UK will be zero rated.

This will remove an area of uncertainty on a crucial issue for many ABTA members and has been agreed by HMRC on the assumption of a possible no deal with the EU on TOMS.

In the event of a no deal being reached with the EU on TOMS, a new UK version will be introduced which will require payment of TOMS VAT only on UK holidays but not on package holidays within the EU.

A guidance note for ABTA Members has been agreed with HMRC, which provides further information and details in respect of transitional issues.

The information is available to ABTA members here.

One area of uncertainty remains, that in the longer term there might be a requirement to register for VAT with individual EU states.

The note will be updated as and when there is more clarity in this area and members will be informed through ABTA Today and the trade press if there any other further developments.

Carolyn Watson, ABTA director of finance and operations, said: “The confirmation by HMRC that post Brexit packages within the EU will be zero rated for TOMS is great news for many of our members.

“We were pleased to be able to work closely with HMRC on this important matter and I thank HMRC for its understanding of how serious this issue is for many travel companies and its action to remove this area of uncertainty.

“This will greatly assist Members as they look to rebuild travel with our most important holiday destinations, the majority of which are within the EU.”

She added: “However, I would stress that one area of uncertainty still remains; in the longer term the possible need to register for VAT purposes within individual EU state.

“We will let members know when the position on this becomes clearer.”

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TUI Group secures a further €1.8 billion in emergency funding

Holiday giant TUI has reached an agreement with various partners on a further financial rescue package of €1.8 billion.

The deal includes the German Economic Support Fund (WSF), KfW Entwicklungsbank (KfW), commercial banks and the company’s largest single shareholder Unifirm.

TUI said it was taking further precautions in view of the rising number of infections since autumn, strict travel restrictions in many countries and the resulting shorter booking times of customers.

The financial package is intended to ensure that the company can bridge the gap if the pandemic persists in 2021.

Following the first reports of vaccine successes, TUI added it expects the pandemic situation to improve in the course of the first half of 2021, leading to a greater return of holiday travel.

Fritz Joussen, chief executive of TUI, explained: “Before the Covid-19 pandemic, TUI was a very healthy company.

“The market is intact; the demand is there.

“But we have not been able to generate any significant revenues since March.

“Our integrated business model allows us to react very flexibly to short-term changes in the pandemic situation, just as we successfully ramped up our travel programme for a few weeks in July after the first wave.

“People want to travel; tourism remains a growth industry and an important sector for stabilising the southern euro area.”

The package consists of silent participations of the WSF, a further credit line of the KfW, guarantees and a capital increase with subscription rights, which is to be resolved at an extraordinary general meeting of TUI in January.

The Mordashov family, owners of Unifirm, have made a long-term strategic investment in TUI and has agreed to participate in the capital increase with its company.

Joussen added: “The financial package provides the security to look consistently ahead and to prepare the group strategically and structurally for the time after the pandemic.

“With these measures, the group is securing liquidity for a continuing pandemic in 2021, while at the same time improving our balance sheet structures in the long term.

“The overall package of different financing from various partners shows the broad confidence of all parties involved in the future of tourism and the TUI Group”.

Including the additionally agreed financial package, TUI AG had financial resources and credit facilities of €2.5 billion as of November 30th.

Earlier in the year, TUI Group secured €3 billion in funding in two separate tranches from the German government.

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Airbnb seeks $35bn valuation for stock market flotation

Home rental giant Airbnb is hoping to raise $2.5 billion in a long-awaited initial public offering.

The company had toyed with going public earlier in the year, but the plans were derailed by the Covid-19 pandemic.

Airbnb was forced to cut its workforce by a quarter and raise additional capital to get through the downturn.

However, with confidence returning to the hospitality market, chief executive Brian Chesky has decided the time is now right.

The company is expected to be valued at almost $35 billion in a New York stock exchange listing on December 9th.

The business has set the price range of its float at between $44 and $50 per share as it gears up to sell almost 52 million shares.

The San Francisco-based accommodation booking service recorded losses of almost $700 million on revenues of $2.5 billion in the first nine months the year, widening from losses of $323 million in the same period in 2019.

Airbnb suffered a $576 million loss in the second quarter as the Covid-19 pandemic hit the travel industry.

However, the company rebounded to a profit of $219 million in the third quarter covering the summer period, helped by a rise in US domestic travel.

For comparison, rival Marriott International currently has a market capitalisation of around $41 billion.

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Lufthansa grows leisure focus for summer 2021

Lufthansa has expanded its summer schedule for next year, with 15 new European destinations, including Greece and Spain available to book.

Departing from Frankfurt Airport the new services include the beautiful Greek islands of Corfu, Crete, Mykonos and Kos in the Aegean Sea.

In addition, services to under the radar cities such as Jerez de la Frontera in Spain, Djerba in Tunisia and Varna in Bulgaria are available.

Lufthansa is currently able to offer travellers a total of 61 weekly hub services to Frankfurt Airport from the UK with convenient travel times allowing holidaymakers to enjoy a smooth connection in Germany and maximum time in the destination.

“Never before have we included so many new vacation destinations in our programme.

“This is our response to the wishes of our customers.

“The demand for vacation and leisure trips is recovering much faster than that for business trips.

“With Lufthansa, we already have a great and longstanding deal of expertise in tourist offers and we are now resolutely expanding this as part of our strategy,” Harry Hohmeister, member of the executive board of Lufthansa.

The increase in destinations available will result in the deployment of up to five additional aircraft and enable Lufthansa to offer approximately 70 weekly connections to 29 popular tourist destinations, 15 more than in the same period last year.

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Hospitality Tomorrow: India currently in ‘eye of the storm’

The Indian hospitality market is currently in the “eye of the storm” when it comes to the Covid-19 outbreak according to Neeraj Govil, senior vice president for south-Asia at Marriott International.

While offering his support to the local government and its efforts to limit the spread of the coronavirus, he said the peak of cases was not expected until mid-July.

Any recovery of the hotel market would not be possible before then, Govil said.

“From July and moving forward, we expect occupancy to grow from the single digits we see today to around 20-30 per cent aggregated across our portfolio in India.

“But things are volatile, we make take steps forward and then back, it will be a tentative approach.”

Speaking during the Hospitality Tomorrow event organised by Bench Events, he added: “In the third quarter of the year we will then be hit by the monsoons, which may slow us again.

“However, by the end of the year we might see occupancy return to around 50 per cent across the country.”

Govil said around a third of the Marriott International portfolio in India had currently suspended operations, while the vast majority of properties were only partially open.

“We are currently in a deep contingency, survival mode – we are in for a rough ride for 12-18 months, and maybe even longer than that,” he explained.

As to where the recovery might come from, Govil said he expected to see domestic demand return first.

“We expect to see people get into their cars, drive out of the cities and spend some time with their families,” he explained.

“This will be followed by short-haul flights within the country, then, as borders reopen, some shorter international flights.

“Strong brands, international brands which people trust to have taken the steps necessary to protect their safety, will benefit.”

These sentiments were echoed by Puneet Chhatwal, chief executive of the Indian Hotels Company.

He explained, similar to the situation in China, domestic travel would be vital for any recovery.

Chhatwal said: “Domestic travel will be first, as people begin to drive for a break.

“As flights resume, toward the end of this month, the train stations and highways reopen, we will see a step-by-step return of demand.

“We were already seeing Indian guests take trips in the same city, as they are bored with locked within their own houses, and this will continue.”

Chhatwal added hotels needed to be open new opportunities as they struggled.

“Opportunistic business is going to be important in the short-term, we did not know repatriation guests were segment, for example, and something else will come up as we move forward,” he said.

“Usually hope is not a strategy, but in times like this, when we have seen hotels touching zero revenue, it is all we have.

“Coming from an exceptionally low base, we have seen extremely limited green shoots during in May – outside of health workers and repatriation guests.

“Our Ginger brand, in the mid-market, has led the way, ahead of Taj, and much of the growth has really come in the past 48-72 hours as we approach the end of lockdown.”

Vijay Thacker, managing director of Horwath in India who moderated a session between Chhatwal and Govil, emphasised any recovery would not be quick.

He said some 64 per cent of respondents to a survey carried out by Horwath this week felt the impact of the Covid-19 outbreak would last longer than six-to-12 months.

Thacker added the hotel sector had been hit hard by the shutdown of the local economy over the past 50 days, despite a relatively small number of coronavirus deaths in India.

More Information

Powered by Bench Events, Hospitality Tomorrow was launched to support the hard-hit international hotel community during Covid-19, by offering a virtual conference platform that provides knowledge, facilitates information sharing and connects the industry.

Find out more about the event on the official website, or check out all the latest Breaking Travel News here.

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Insight Vacations launches new women-only India trip

Hot on the heels of International Women’s Day, Insight Vacations has launched a new women’s only trip – Inspirational India, A Wander Women Journey.

As the first itinerary in Insight’s new ‘Wander Women’ journey programme, it will take place in India in 2021 and will offer immersive learning opportunities, wellness experiences and deliciously authentic dining.

It is also designed to demonstrate the impact tourism can have on women’s economic empowerment.

Insight continues its efforts to champion a gender equal world, with its latest effort being the launch of this wholly new programme of journeys created and led by women.

Just like all Insight journeys, clients who embark on this experience will get all of the sights and the insights, up close and personal, in comfort and in style.

“With 57 per cent of our guests being female, along with the rise of women’s only travel, our new ‘Wander Women’ journey is a perfect fit for those who want to get below the surface and experience India as a culturally immersive destination.

“Designed and run by women, this new journey provides myriad opportunities to give back and empower women in the local communities while learning about their day-to-day lives,” said Rachel Coffey, director of sales and business development for Insight Vacations.

“This journey is also a great opportunity to connect and travel with other fabulous women from around the world.”

The journey is only available on a limited departure date, so clients are encouraged to book early to secure their space.

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Air Astana takes delivery of first Airbus A321LR

Air Astana has taken delivery of the first of seven Airbus A321LR (long-range) aircraft under an operating lease agreement with Air Lease Corporation of the United States.

The remaining six aircraft scheduled for delivery over the next 12 to 18 months, depending on Airbus’ production capacity in Hamburg.

Air Astana is first operator of the aircraft type in the CIS.

The new A321LRs will gradually replace the airline’s Boeing 757 aircraft on long-haul services to European and Asia destinations, with greatly enhanced cabin comforts and facilities for passengers.

The Airbus A321LR is a long-range version of A321neo, with increased maximum take-off weight and associated design modifications.

The aircraft is configured with 16 business class seats and 150 economy class seats.

The lie-flat business class seats are equipped with individual 16-inch screens, with four of 16 seats offering additional personal space.

In the economy class, the Recaro seats provide increased comfort for long flights and are equipped with individual ten-inch screens.

The design of the interior trim, curtains and seat covers for both business and economy classes have been specially developed for Air Astana, with a combination of elegance and sophistication that embraces a clear national identity.

The aircraft is equipped with the latest generation Pratt & Whitney engines, which reduce fuel consumption by 20 per cent, maintenance costs by five per cent, carbon emissions by 20 per cent and noise levels by 50 per cent compared with current generation of aircraft.

Air Astana currently operates 19 Airbus aircraft in the fleet, including eight A320s, four A321s, three A320neo, three A321neo and one A321LR, with another ten Airbus aircraft scheduled for delivery by the end of 2020.

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Airbus seeks to end World Trade Organisation dispute

Airbus has agreed with the governments of France and Spain to make amendments to A350 repayable launch investment contracts.

After 16 years of litigation at the World Trade Organisation, the manufacturer said it hopes this would be the final step to stop the long-standing dispute and removes any justification for United States tariffs.

The tariffs imposed by the United States Trade Representative are currently harming all targeted industry sectors, including US airlines, Airbus said, and are adding to a very difficult environment as a consequence of the Covid-19 crisis.

As a result, Airbus has decided to make a final step to remove the last contentious point and amend the French and Spanish contracts to what the WTO considers the appropriate interest rate and risk assessment benchmarks.

The WTO has already ruled that RLI is a valid instrument for governments to partner with industry by sharing investment risks.

With this final move, Airbus considers itself in complete compliance with all WTO rulings.

“We have fully complied with all the WTO requirements.

“These additional amendments to the A350 RLIs demonstrate that Airbus has left no stone unturned to find a way towards a solution,” said Airbus chief executive, Guillaume Faury.

“This is a clear signal of support to those who are suffering from the severe impact of the tariffs imposed by the USTR, especially at a time when industries are hard hit by the consequences of the Covid-19 crisis.”

The government loans are among European measures the World Trade Organisation previously deemed illegal subsidies as part of a pair of cases also targeting United States support for Boeing.

The failure of the European Union to completely withdraw the subsidies led to approval by the WTO for United States sanctions starting from late last year on up to US$7.5 billion of European goods ranging from wine to whisky.

Trade groups are bracing for an escalation of the row in the autumn when the EU is expected to win WTO approval to hit back with its own tariffs on US goods in retaliation for subsidies for Boeing, which the Geneva trade body also found illegal.

In a record dispute dating back to 2004, the WTO has ruled the EU and United States awarded subsidies to their respective plane makers.

For the last eight years, the argument has mainly been about whether each side has obeyed those rulings.

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Breaking Travel News interview: Nаtalia Lipets, advisor to the vice president, Academservice

Having been recognised as one of the best in the business by the World Travel Awards, Breaking Travel News here chats with Nаtalia Lipets of Academservice to find out more

Breaking Travel News: Congratulations on your recognition as the World’s Leading Entertainment Travel Management Company by voters at the World Travel Awards. How does it feel to have won?

Nаtalia Lipets: Great! We had serious competitors, and the more honourable the award is thus for us.

They are all big names in the sports and culture service industry.

Our company celebrated its 30th anniversary this year and this win is especially important for us.

Certainly, it encourages us to develop further and move beyond expectations.

BTN: This is the second year in succession you have taken this title – how useful are the World Travel Awards when it comes to promoting the brand around the world?

NL: To get World Travel Awards is a weighty confirmation that you are the best and the most decent in the market.

However, to promote brand successfully you need variety of factors.

One of them is transformations, changes to surprise in a good way partners and customers.

Breaking Travel News: Can you tell our readers just a little about the company and what it brings to the hospitality market in Russia?

NL: Academservice is a group of companies that deals with several areas of activity.

This includes not only travel services in the field of culture, sports, and music – major events, regular contracts.

We also organise MICE events, business trips, group tours in Russia and CIS.

Our company is also the biggest consolidator and distributor of individual hotel bookings on the Russian market with our own online sales system.

BTN: How would you describe the mood in Russian tourism as we look ahead to 2021? Is there a hope a vaccine for Covid-19 can lead to a return of something like normality?

NL: Russia has experienced more crises than many other countries in its history.

We have strong-minded people who do not lose hope for the future and able to adapt for new business opportunities.

We sincerely wish everyone health and energy for new achievements!

More Information

For three decades Academservice has allowed travellers from all over the world to book more than 5,000 hotels across Russia and CIS.

Today, more than 10,000 companies rely on its services.

Find out more on the official website.

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Faroe Islands to get new London flight this summer

Atlantic Airways has announced it will be launching a new direct flight from London Gatwick to Vágar Airport in the Faroe Islands from June 23rd. 

The first direct flight from London since 2014 (when Atlantic Airways flew from London Stansted), the new weekly Tuesday route will offer a shorter journey time to the Faroe Islands - with a flight time of just two hours 10 minutes.

The Faroese national carrier also argues it will be a greener alternative, saving on the emissions of the additional take-off and landing (in Copenhagen) that is always involved with connecting flights.

With tickets going on sale on Wednesday, the new schedule will run until August 11th and will be in addition to the current daily Atlantic Airways’ flights to the Faroes via Denmark and the twice-weekly direct Edinburgh flights.

Commenting on the news, Guðrið Højgaard, director at Visit Faroe Islands, said: “We’re really pleased to hear that Atlantic Airways will be starting to fly directly from London again this summer.

“With steady growth in visitor numbers to the Faroe Islands - around ten per cent last year - there is certainly demand for a London flight.

“We look forward to welcoming more visitors who enjoy remote destinations, birdwatching, sailing, hiking, rappelling, photography and other low-impact ways of exploring their way around our beautiful islands this year.”

The announcement of the new direct flight comes at an exciting time for the Nordic nation.

The Faroe Islands’ renowned restaurant, KOKS, has not only retained its two Michelin stars, but the remotely-located establishment has also just been presented with the new Green Clover award by the Michelin Guide team in recognition of its efforts to promote sustainability.

This spring, the Faroe Islands will also see the opening of a new independent four-star hotel, Hotel Brandan, in its modestly-sized capital, Tórshavn, with the islands’ first international hotel brand – Hilton Garden Inn – set to open a new four-star hotel in July.

Jóhanna á Bergi, chief executive of Atlantic Airways, added: “We’re so excited to again be able offer a direct flight from London to the Faroe Islands – not only does this make our beautiful islands more accessible to travellers in and around London, it’s also great news for travellers using Gatwick as a hub from other destinations all around the world.”

Image: Kate Chapman

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MGM resorts sells two more Las Vegas casinos

MGM Resorts International has sold the MGM Grand and Mandalay Bay casinos on the Las Vegas Strip for $2.5 billion.

The properties have been acquired by a new joint venture formed by MGM Growth Properties and Blackstone Real Estate Income Trust.

The venture will be owned 50.1 per cent by MGM Growth Properties and 49.9 per cent by Blackstone

MGM Resorts expects to receive net cash proceeds of approximately $2.4 billion and approximately $85 million in MGP operating partnership units.

MGM Resorts announced in October that it was selling the real estate of Bellagio to a joint venture with Blackstone for about $4.25 billion.

Last month the company said it closed on the sale of Circus Circus Las Vegas and 37 adjacent acres for $825 million.

“These announcements represent a key milestone in executing the company’s previously communicated asset-light strategy, one that enables a best-in-class balance sheet and strong free cash flow generation to provide MGM Resorts with meaningful strategic flexibility to create continued value for our shareholders,” said Jim Murren, chief executive of MGM Resorts.

“As such, we remain determined to prudently pursue accretive opportunities related to our remaining owned real estate assets including MGM Springfield, our 50 per cent stake in CityCenter and our 55 per cent economic ownership in MGM Growth Properties.

“Our corporate objective remains crystal clear, we will continue to monetise our owned real estate assets, which facilitates our strong focus on returning capital to our shareholders, while also retaining significant flexibility to pursue our visible growth initiatives, including Japan and sports betting.”

Funds from the Bellagio and Circus Circus transactions have been used to deleverage the company.

The latest transaction is expected to close in the first quarter of 2020, subject to certain conditions.

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Mandarin Oriental moves into Saudi Arabia with Al Faisaliah Hotel deal

Mandarin Oriental Hotel Group has signed an agreement with the Al Khozama Company to manage and ultimately brand the Al Faisaliah Hotel, Riyadh. 

The group will take over the management in the first quarter of 2021.

The hotel is undergoing an extensive guestroom and public area renovation which will be completed at the end of 2021, after which it will be rebranded Mandarin Oriental Al Faisaliah, Riyadh.

The Al Faisaliah Hotel is in the heart of the central business district of Riyadh, providing easy access to corporate offices, government buildings, high end shopping, restaurants and cafés.

It forms an integral part of the mixed-use Al Faisaliah Centre, designed by Foster & Partners.

“The Al Faisaliah Hotel has been a leading light in Saudi Arabia’s hospitality sector since opening its doors 20 years ago.

“We are pleased to be partnering with Mandarin Oriental to further develop the hotel and to create the most luxurious and sophisticated property in the region,” said Khalid Abuhaimed, chief executive of Al Khozama.

The hotel comprises 321 guestrooms and suites, with new interiors designed by Adam Tihany Design, New York.

Also featured are a variety of refreshed restaurants, lounges and bars, including the popular top floor venue which commands outstanding views of the city.

Revitalised function spaces will cater to social events and business meetings, while an indoor swimming pool, male and female spa areas and a fitness centre complete the leisure facilities.

“We are delighted to further strengthen Mandarin Oriental’s presence in the Middle East by introducing the brand to Saudi Arabia and bringing the Group’s legendary service to Riyadh,” said James Riley, group chief executive of Mandarin Oriental Hotel Group.

“We look forward to collaborating with the Al Khozama Company in transforming the hotel into the city’s most exclusive luxury property,” he added.

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Abu Dhabi celebrates World Tourism Day

Mohamed Khalifa Al Mubarak, chairman of the Department of Culture and Tourism – Abu Dhabi, has said the emirate will focus on rural development in the coming year.

In remarks celebrating World Tourism Day, the industry leader said: “Tourism is one of the cornerstones of economic development.

“This is why, over the past few years, we have developed the tourism infrastructure in the emirate of Abu Dhabi, in line with the knowledge economy strategies implemented by the government.

“This includes enhancing the tourism workforce and encouraging more talent to contribute to the growth of the sector.”

He continued: “This year, World Tourism Day will be held under the theme of ‘Tourism and Rural Development’, emphasising the role tourism plays in creating social and economic unity and cohesion, especially in developing areas.

“This comes during a challenging year for the worldwide tourism sector, as the Covid-19 pandemic has undoubtedly had its impact on the industry, presenting us with a number of unprecedented challenges.

“We have had to approach these challenges with innovative solutions and strategies to revive the sector while maintaining the safety and well-being of our local community, which has always been our utmost priority.

“We also took this time to develop a number of cultural and heritage programmes, which incorporate a wealth of talent from various backgrounds and age groups.

“Additionally, we have worked on creating a number of ground-breaking virtual experiences to enable travellers to appreciate the best of Abu Dhabi, amidst a number of closures and travel restrictions imposed by the pandemic.”

While Abu Dhabi is currently closed to international tourism, the emirate has been working to keep itself in the international spotlight by hosting a series of top-level sporting events.

Find out more here.

Al Mubarak added: “Through this innovation and commitment, the United Arab Emirates has succeeded in setting a shining example in crisis management with its globally acclaimed Covid-19 response.

“We have worked relentlessly alongside other government entities to launch a number of initiatives to support the tourism sector during this period and elevate the level of trust amongst our consumers to position Abu Dhabi as one of the safest destinations in the world.

“And today, as we prepare to welcome visitors once again, we are doubling our efforts in ensuring the safety of our destinations to guarantee our guests a safe and unforgettable experience.”

The sentiments were echoed by Saood Al Hosani, undersecretary of the Department of Culture and Tourism – Abu Dhabi.

He said: “This year’s World Tourism Day coincides with a challenging period for the sector, unlike anything previously witnessed.

“The biggest challenge for us was to support and revitalise the tourism sector in the emirate of Abu Dhabi, while also ensuring the health and safety of residents and visitors.

“Abu Dhabi has been recognised and highly praised for its efficient, persistent and rapid response to managing and containing the spread of Covid-19 through a series of initiatives developed by local government and the relevant authorities, including DCT Abu Dhabi.

“The implementation of stringent measures and safety guidelines helped boost consumers’ confidence towards our destination, while simultaneously revitalising the tourism sector.”

He continued: “The success behind this revitalisation is largely due to the close collaboration between the private and public sectors, as well as the commitment showcased by DCT Abu Dhabi’s stakeholders to ensure the implementation of all precautionary guidelines issued by the government of Abu Dhabi across various establishments.

“With the reopening of tourism in the UAE, we hope to promote Abu Dhabi as the safe destination it truly is by enhancing our efforts to ensure the safety and well-being of visitors and residents.

“We are especially focused on enhancing the safety measures to protect all employees within the culture and tourism sectors, who play a key role in making our destination experience an exceptional one by creating a sustainable creative environment.

“Abu Dhabi is a diverse destination with a variety of landscapes and environments, from which a multitude of unique cultural communities have grown to create a vibrant scene.

“We are currently working to develop the destinations within these communities to reflect our rich heritage, enabling creativity to thrive and spurring significant economic growth.”

More Information

Abu Dhabi is considered the World’s Leading Sports Tourism Destination by voters at the World Travel Awards.

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Mandarin Oriental to manage Savoy Baur en Ville from 2024

In a busy day for luxury tourism in Switzerland, Mandarin Oriental has announced that it will manage and re-brand the historic Savoy Baur en Ville hotel in Zurich.

The property will join the portfolio from 2024.

The hotel, which first opened in 1838, is a landmark property on Paradeplatz, the main square in the city centre.

It is located in the heart of the old town, within the main business centre, close to the leisure attractions and a short walk from the shores of Lake Zurich. 

The hotel is currently managed by Credit Suisse.

In 2022, the hotel will close and undergo a comprehensive two-year renovation to reposition the property as the market leader in the city.

The hotel will have 80 guestrooms and suites and three dining outlets, comprising an all-day dining venue, a speciality restaurant and a lobby lounge.

The property is ideally placed for meetings and gatherings, and the renovation will enhance conference and event facilities, including a grand historic ballroom.

In addition, a state-of-the-art fitness centre will be installed.

French interior designer, Tristan Auer, Paris has been appointed to oversee the full design.

As a key global financial centre, Zurich is well known as a business destination, whilst also having significant appeal to leisure guests wishing to explore Switzerland.

“We are delighted to have the opportunity to bring Mandarin Oriental to this important European destination and to rebrand a well-established landmark,” said James Riley, group chief executive of Mandarin Oriental Hotel Group.

“This is a strategic city for the Group, which consolidates and complements our regional presence in central Europe, including upcoming projects in Vienna and Lucerne.”

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IATA implores passengers to wear face masks

The International Air Transport Association (IATA) is appealing to all travellers to wear a face covering during a journey for the safety of all passengers and crew during the Covid-19 pandemic.

Wearing face coverings is a key recommendation of the International Civil Aviation Organisation’s (ICAO) guidance for safe operations during the pandemic, as developed jointly with the World Health Organisation and governments.

IATA is emphasising the need for passengers to comply with the recommendation following recent reports of travellers refusing to wear a face covering during a flight.

While this is confined to a very small number of individuals, some on-board incidents have become violent, resulting in costly and extremely inconvenient diversions to offload these passengers.

“This is a call for common sense and taking responsibility.

“The vast majority of travellers understand the importance of face covering both for themselves as well as for their fellow passengers, and airlines appreciate this collective effort.

“But a small minority create problems.

“Safety is at the core of aviation, and compliance with crew safety instructions is the law.

“Failure to comply can jeopardise a flight’s safety, disrupt the travel experience of other passengers and impact the work environment for crew,” said Alexandre de Juniac, IATA chief executive.

IATA said a plane ticket is a contract under which the passenger agrees to the airline’s terms and conditions of carriage.

Those conditions can include the airline’s right to refuse carriage to a person whose behaviour interferes with a flight, violates government regulations or causes other passengers to feel unsafe. 

Airlines also highlight the need to wear a face covering during the booking process, at check-in, at the gate and in onboard announcements.

Failure to comply means that a passenger faces the risk of being offloaded from their flight, restrictions on future carriage or penalties under national laws.

“The research we have seen to date, and our own investigations with the world’s airlines, tell us that the risk of catching COVID-19 on a flight remains very low.

“There appears to be a number of factors supporting that.

“The high flow rate of cabin air from top to bottom, constant filtering of air through state-of-the-art HEPA filters, the fact that all seats face the same direction and of course wearing a face covering and sanitisation of the aircraft all play a part,” said IATA medical advisor, David Powell.

“This is not just about protecting yourself. 

It’s about protecting everyone else on the flight,” he concluded.

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New next-generation cruise terminal unveiled at Southampton

Associated British Ports (ABP) is to open a new next-generation-ready and open access cruise terminal for the 2021 cruise season in Southampton.

The fifth dedicated cruise terminal at the port will benefit from roof-mounted solar power and will also have Shore Power connectivity installed.

This further commitment to sustainable operations at the port will enable cruise ships, with the right onboard technology, to ‘plug in’ while they are alongside. 

Alastair Welch, director of ABP Southampton, said: “We’re very pleased to announce this major advance in our cruise infrastructure at the port, delivering further access to Southampton for the industry, whilst supporting our commitment to accelerate improvements in local air quality.

“This investment is a huge vote of confidence in the future of cruise in Southampton and we’re excited to be at the forefront of a growing industry.”

This investment of more than £55 million into the long-term future of cruise will strengthen the Port of Southampton’s position as the leading cruise turn-around port in Europe and the number one departure port in the UK.

Robert Courts, minister for maritime, department for transport, said: “Southampton is the heart of UK’s cruising industry and a new terminal will create even more jobs and boost the area’s economy.

“As we continue to support the cruise sector in its restart and recovery, it’s great to see government funding being used to help deliver better services for passengers.

“This next-generation facility also showcases to ports around the world how we’re pioneering the use of green technology right here in the UK.”

In strategic partnership with MSC Cruises and Norwegian Cruise Line Holdings, the Port of Southampton’s newest terminal will support a developing industry welcoming the next generation of ships in terms of size, capacity and technology.

Steve Moeller, senior vice president of commercial development at Norwegian Cruise Line Holdings, said: “This agreement marks the continuation of the strong partnership between Norwegian Cruise Line Holdings and the Port of Southampton and demonstrates our commitment to the region.

“Consistent with our commitment to driving a positive impact on society and the environment, we are pleased to further promote environmental conservancy by partnering with Associated British Ports for the new terminal that will feature Shore Power and Roof-Mounted Solar Power.”

The project has received support from the Solent Local Enterprise Partnership (LEP) through the government’s Getting Building Fund with an £8 million grant.

Gianni Onorato, MSC Cruises chief executive, said: “We are really proud to be further supporting the UK cruise industry at this incredibly important time for both the industry and the UK economy.

“At MSC Cruises we really believe in the potential of the UK cruise market and making this long-term commitment is evidence of that.

“Over the last five years MSC Cruises has increased our presence in the UK & Irish markets and following a positive response from travel agents and our guests we feel now is the right time to make a more substantial commitment.

“We are in a unique position that not only will we be committing to having an MSC Cruises’ ship home port from Southampton every year, but several of our ships will be visiting Southampton as a destination as part of our wider cruise programme.”

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