Skift Travel News Blog

A day after China announced some major changes to its controversial zero-Covid policy, Hong Kong on Thursday announced that inbound arrivals would need to undergo daily rapid antigen tests for five days, instead of seven days.

However, international travelers coming into the city would still need to take a polymerase chain reaction test on landing and on the third day and remain in home isolation for three days with limited movement.

Hong Kong has also shortened the isolation period for Covid-19 patients and their close contacts to five days from seven days, provided they test negative on the fourth and fifth day.

This rule would also be applicable for unvaccinated people, who were earlier required to spend 14 days in quarantine.

However, the outdoor mask mandate and other anti-epidemic measures will continue to stay for the next two weeks till December 28.

“Over the last week the number of daily infections has still been increasing and Wednesday’s figure of 14,373 has been a record high,” Hong Kong authorities said in a press briefing.

With Christmas and New year round the corner, health undersecretary, Dr Libby Lee Ha-yun, said there will be immense pressure on healthcare facilities as result of which the government does not look to relax the anti-epidemic measures further for now.

“We are reviewing our strategies based on science, targeted anti-epidemic measures, proper management of risks as well as citizen-focused facilitation,” authorities said during the press briefing.

Southwest Airlines will pay a dividend to its shareholders of record as of January 10, 2023. This may not seem like a notable move for a carrier that has paid dividends for most of 50-plus year existence but it is: Southwest will be the first U.S. airline to resume shareholder returns since the pandemic.

Shareholder returns, including dividends and stock buybacks, were barred at any airline that took federal aid under the U.S. CARES Act until this September. Most carriers have also returned to profitability on the back of strong travel demand. Dallas-based Southwest made a $277 million net profit in the third quarter.

Other U.S. carriers may not be far behind Southwest. Alaska Airlines Chief Financial Officer Shane Tackett said in October that the carrier’s management would discuss the possibility of resuming “potential shareholder returns” with Alaska’s board in November. There is no word yet on any decision from the Seattle-based carrier.

U.S. airlines, including Southwest and Alaska, are seeing strong travel demand into the new year. Delta Air Lines CEO Ed Bastian in October went as far as to claim that travel is “countercyclical” to the macroeconomic trends of high inflation and a potential U.S. recession.

Airlines practice of giving some cash back to shareholders was in the spotlight when the industry was pushing for federal relief in the CARES Act. Some noted that, had the industry not paid dividends our bought back shares in the years prior to the crisis, they may not need the government hand out. Airlines pushed back on this claim, rightly arguing that such returns were standard practice across businesses and not just airlines.

Southwest will pay its investors an $0.18 per share dividend for the fourth quarter on January 31, it said Tuesday. The carrier estimates the dividends will total roughly $428 million.

The Japanese government announced on Friday it’s planning to resume its domestic travel discount program in the new year.

Tourism Minister Tetsuo Saito said the government will decide when exactly to relaunch the program, which was initially expected to conclude on December 28, after monitoring Covid cases in the country. Participants in the program, a campaign the government hopes will resurrect a tourism industry battered by the pandemic, are required to have received at least three Covid vaccine doses or test negative for the virus. The Japanese government relaunched the travel discount program in October after pausing it during the heart of the pandemic.

Meanwhile, discounts offered in the program will be reduced next year, with the discount rate to drop to 20 percent from the current 40 percent. The maximum discount amount available for travelers in tour packages, including public transportation services, will also decrease from $58 (8,000 yen) to $36 (5,000 yen).

Cathay Pacific Airways, after worries that Hong Kong’s strict Covid rules could doom the airline, is beginning its post-pandemic bounce back as the Chinese special administrative region eases its border rules.

The Oneworld alliance carrier will resume a third of its 2019 capacity by the end of the year, Cathay said Monday. That means resuming about 3,000 daily flights between the end of October and year end. And, as travel is expected to surge back, 70 percent of its pre-crisis capacity by the end of 2023. The carrier anticipates a full recovery to 2019 levels in 2024.

“Our recovery trajectory is in line with other carriers that don’t benefit from a domestic market in terms of the time taken since borders began to open,” Cathay CEO Augustus Tang said. He added, citing the recovery challenges other airlines have experienced, that Cathay has “sufficient pilots, cabin crew and operational employees” to support its capacity recovery plans.

Cathay will return to Bali, Bangalore, Fukuoka, Sapporo, Tokyo Haneda, Xi’an, and Zurich, and add back flights in other markets, in the fourth quarter, according to Diio by Cirium schedules.

Cathay Pacific announced on Wednesday that CEO Augustus Tan would be stepping down on December 31 and chief customer and commercial officer, Ronald Lam would succeed him.

Even after appointed the CEO of Catahay Pacific, the airline has said Lam would continue to serve as chair of HK Express, Cathay’s low-cost subsidiary.

Lam was appointed chief customer and commercial officer in 2019. He joined the Cathay Pacific Group as a management trainee in 1996 and has since held a number of senior leadership roles in Hong Kong and overseas, including CEO of HK Express.

As the airline looks to increase its passenger flight capacity and strengthen connectivity, Lam would lead the airline through its post-Covid recovery and the introduction of the three-runway system at Hong Kong International Airport, Patrick Healy, chair of Cathay Pacific Group, said in a press statement.

“The company’s dual-brand strategy comprising Cathay Pacific as a premium full-service airline and HK Express as a wholly owned low-cost carrier have positioned it well to take advantage of the recovery and continue contributing to the long-term success of the Hong Kong hub,” Healy said.

Healy also spoke of Tang’s critical role in the airline’s restructuring in 2020 and its handling of the Covid-19 pandemic

Releasing its September figures, the airline has said that it would continue to add more flights in the coming months.

In addition to the flight sectors previously scheduled for November and December, the airline had announced that it would be adding more than half a million seats with an increase of around 700 sectors in November and 1,200 in December.

Japan and London Heathrow sectors would be witnessing a substantial increase in passenger flights in November and December, the airline had said.

In another board reshuffle announced Wednesday, Lavinia Lau will replace Lam as the chief customer and commercial officer from January 1 and Alexander McGowan will replace Gregory Hughes as chief operations and service delivery officer, effective April 1.

Ireland’s overseas inbound tourism level for the year is set to hit 75 percent of 2019 levels, CEO of Tourism Ireland Niall Gibbons told The Sunday Times (London).

Tourism Ireland forecasts the sector will fully recover by 2025. In 2019 Ireland welcomed 11.3 million tourists, generating approximately $6.1 billion (€5.9 billion) in revenue.

The strong U.S. dollar has benefited Irish tourism. But the strong euro relative to the British pound has dampened inbound tourism to the Republic of Ireland from the UK. (Tourism Ireland does marketing for the full island.)

Hotel supply is a top headwind for Irish tourism, Gibbons said.

“Latest official figures show that more than 20 percent of hotel rooms are being used for non-tourism-related reasons, including housing Ukrainian refugees and the homeless,” The Times reported.

“This year Tourism Ireland has a budget of about $69.8 million (€70 million) to spend on marketing Ireland,’ The Times reported. “The majority will go on television advertising.”

The marketing project he is most proud of since Gibbons became CEO in 2009 is the annual Global Greening, where hundreds of landmarks worldwide light up in green to honor St Patrick’s Day.

Qatar will be dropping its requirement of a pre-arrival negative polymerase chain reaction test from November 1, just in time for the FIFA World Cup that kicks off from November 20.

Qatari citizens and residents coming into the country will also not be required to undergo a rapid antigen or polymerase chain reaction test within 24 hours of arrival.

Visitors entering Qatar from November 1 onwards would also not be required to pre-register on the Ehteraz health application. Registration on the Ehteraz app would only be needed to enter healthcare facilities.

The Ministry of Public Health made the announcement on Wednesday, in light of the continuing decline in the number of Covid-19 cases throughout the world and in Qatar. 

Last month, the government had said in a statement that Covid vaccination would not be mandatory football fans coming in to the country for the World Cup.

From this month onwards, masks are also not mandatory while travelling on public transport in Qatar and it was announced that masks would be optional at the eight World Cup stadiums.

However, all visitors would need a Hayya Card to enter Qatar from November 1. The Hayya Card is a mandatory document given to anyone attending the World Cup that serves as an entry permit to the Qatar and also provides stadium access along with the match tickets.

The U.S. dollar has appreciated relative to major currencies such as the euro, pound, and yen, and that dynamic has been changing travel patterns. American tourists enjoy enhanced buying power in Europe and Japan, while many foreign visitors find the U.S. off-puttingly expensive.

Look at U.S. government data to see the pattern. September data from the International Trade Administration (sourced here) shows a 2 percent increase in Americans going abroad compared to September 2019 before the pandemic, while there was a 27 percent drop in inbound international visitors in the same period.

Jan Freitag, Senior Vice President of Lodging Insights for STR and National Director, Hospitality Analytics for CoStar Group, summed things up in a tweet on Thursday.

Here’s that slide from CoStar a bit bigger:

The Asia Pacific region will no longer be the world’s largest travel region by the end of 2022, ceding the title to Europe. That’s according to a new report from international travel industry analysts at CAPA –Centre for Aviation.

The organization discussed how aviation in the region remains down by 45 percent compared to pre-pandemic levels while European air travel has recovered to roughly 85 percent of pre-pandemic levels. That being said, we believe the reason is that China is still locked up/locked down.

In 2019, 3.38 billion passengers transited through Asia Pacific airports. CAPA reported current predictions that only 1.84 billion passengers would pass through Asia Pacific hubs by the end of this year. Most travel in Asia Pacific destinations remains at 50 percent or more below 2019 levels.

India is the standout at only 11 percent below 2019. CAPA predicts Asia Pacific will not see a full return to pre-pandemic travel figures until the end of 2023 or early 2024.

China’s international share of Asia Pacific seats fell from 26.2 percent in 2019 to an estimated 5 percent in 2022, as this chart underscores: 

In the latest round of easing travel restrictions, tourists coming in to Taiwan will not be asked to undergo mandatory Covid-19 quarantine from October 13, the ministry of health and welfare announced on Thursday.

From October 13, inbound arrivals to Taiwan would require to self-monitor for seven days instead of undergoing mandatory quarantine.

While the government has scrapped the requirement for polymerase chain reaction tests for inbound travelers, passengers aged two and above would receive four rapid test kits on arrival and are advised to test on the day of arrival or the next day.

Travelers seeking to step out during the seven-day self-monitoring period would be required to take a rapid antigen test.

While opening borders to travelers from all countries, the government has also raised the weekly limit for international visitors from 60,000 to 150,000, and announced the resumption of group tours.

On September 12, Taiwan restored visa-free entry for visitors from 54 countries, including the U.S., Canada, Europe, Australia, New Zealand, and diplomatic allies. From Thursday onwards, 11 more countries were included in the visa exemption list, which includes Japan, South Korea, Singapore, Malaysia, Thailand and the Philippines.

Following last week’s announcement of the Mainland Affairs Council, entry requirements for select categories of Chinese, Hong Kong, and Macau nationals have also been relaxed from Thursday onwards.

Even as many Asian destinations have scrapped most of the Covid-19 related entry restrictions, Taiwan had resorted to a strong zero-Covid policy for more than two years, where arrivals were still required to undergo a mandatory three-day quarantine at home or at a hotel, followed by four days of self-monitoring.

Taiwan had also banned inbound and outbound tour groups for more than two years.