TOPHOTELNEWS Live Blog roundup: hard-hit regions, new safety standards & slowed growth
In times of crisis you should stay updated. Check TOPHOTELNEWS Live blog to do so. (Unsplash by Engin Akyurt)
A summary of developments shared on the TOPHOTELNEWS COVID-19 live blog: Tourism-dependent regions suffer amid travel restrictions, hotels prepare for a new focus on health and safety measures, and hotel development slows significantly.
By now it’s clear that the COVID-19 pandemic has had a serious impact on the global hotel industry and its effects will be felt long into the future – be it through new policies or delayed launches of new hotels and resorts.
We look at a summary of the most up-to-date information presented on the TOPHOTELNEWS COVID-19 live blog and see what experts think about changes we’ll see and how projects under development are doing.
Tourism-focused areas hit hardest
The more heavily a region depends on tourism, the harder its economy will be hit by the travel restrictions put in place to slow the spread of COVID-19.
In the Caribbean, for example, nearly a third of the region’s economic output depends on travel, and the industry employs around 2.5 million people in this area. A high number of these jobs have already been lost, many more are in danger given that the World Tourism Organisation (UNWTO) forecasts a plunge of 20-30% of arrivals for 2020.
According to the Caribbean Development Bank, these numbers are still optimistic. It projects a 50% drop if security measures continue until September and possibly even a 100% drop if they stay in place for the remainder of 2020.
While some countries are already supporting their travel and tourism sectors by paying furloughed employees or with tax breaks or emergency loans, this step is difficult for many Caribbean states whose tax revenues have plummeted due to the lack of tourism.
New health and safety standards
While lockdowns continue, local hotels in the Caribbean and around the world are preparing for post-crisis travel, when new health protocols will likely be necessary, and travellers will pay more attention to cleanliness and safety standards than ever before.
To create a level of standardisation hotels can aim for, Accor has partnered with Bureau Veritas to develop a label which certifies that a hotel or catering business has put sufficient safety standards and cleaning protocols in place to keep guests safe. This label will first be rolled out in France, then across Europe.
Franck Gervais, CEO Europe at Accor said this about the new label: “Welcoming, protecting and taking care of others is the very DNA of Accor and at the heart of what we do. Today, more than ever, our employees, customers and partners need to be reassured of our ability to offer them the best welcome possible.”
“As the European leader in hospitality, it is our duty to anticipate needs and respond to health and safety requirements by adhering to the highest standards. We are pleased to be pioneering this drive with Bureau Veritas and to extend it to all stakeholders,” he went on to say.
New hotel projects and renovations on hold
With governments urging people to stay home and restrictions being put into place on which businesses are even allowed to operate, work on many hotel construction and renovation sites has been temporarily suspended.
A noteworthy project placed on hold is Marriott International’s new headquarters in Bethesda. After two employees of a subcontractor were tested positive for the virus, the site was shut down and was deep-cleaned by a company specialising biohazard clean-up.
Jan Freitag, VP of lodging insights at benchmarking firm STR gave more background information about how the current crisis is impacting hotel construction, which reached a record high in March 2020, just before the crisis hit.
“The number of rooms in construction will likely remain high, just as it did during the pre-recession peak,” said Freitag. “Because of the coronavirus pandemic, the industry is no longer operating in a record-setting demand environment, so there isn’t the same rush to open hotels and tap into that business. In addition to a lack of guests awaiting new hotels, there are also limitations around building materials and potential labour limitations from social distancing. With all of that considered, projects are likely to remain under construction for a longer period.”
