UK’s crack down on travel: UK travelers will be interrogated at the border on their reasons for going abroad, Prime Minister Boris Johnson has said, as he confirmed that British citizens returning from high-risk countries must quarantine in hotels at their own expense. The government is facing criticism from the Scottish and Welsh governments, as well as scientists, for rejecting a more comprehensive hotel quarantine system. They are warning that it could allow as yet unknown new variants to slip through the gaps. The home secretary, Priti Patel, said police would be deployed to interrogate travelers at borders and ports. “People should be staying at home, unless they have a valid reason to leave,” she said. “Going on a holiday is not a valid reason.”
U.S. hotel profits fell 84.6%: Including a 100.6% decline in December, U.S. hotel profitability fell 84.6% in 2020, according to STR‘s latest monthly profit and loss data release. December gross operating profit per available room (GOPPAR) came in worse than any month since June in both absolute terms and year-over-year comparisons.
“Lower demand in December coupled with fixed expenses for hotels meant profit declines on par with early in the pandemic,” said Raquel Ortiz, assistant director of financial performance for STR. “That only worsened the overall 2020 figures, which showed an average profit level less than US$15 per room after coming in at almost US$95 in 2019. As noted in our revised forecast, this year is off to a slow start amid a worsening pandemic situation, so the pattern of dwindling profitability will likely continue in the coming months.”
U.S. occupancy flat: U.S. weekly hotel occupancy remained flat from the previous week, according to STR‘s latest data through January 23.
January 17-23 (percentage change from comparable week in 2020):
Occupancy: 40.0% (-30.6%)
ADR: US$90.13 (-28.1%)
RevPAR: US$36.07 (-50.1%)
Aggregate data for the top 25 markets showed lower occupancy (38.8%) but higher ADR (US$97.60) than all other markets. Thanks to a small lift from the presidential inauguration, Washington, D.C.-Maryland-Virginia (57.6%), reported the highest occupancy level among the Top 25 Markets. Top 25 markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (21.7%), and San Francisco/San Mateo, California (27.8%).
NYC hoteliers ask mayor for help: New York City hoteliers are calling on Mayor Bill de Blasio to give them a hand and suspend all interest payments on real estate tax debt until the pandemic comes to an end and tourists once again return. After up to 200 of the city’s 700 hotels have shuttered due to the ongoing to COVID-19 pandemic, the Hotel Association of New York City led by Vijay Dandapani is telling the city to give them until vaccines reach critical mass for the collections to begin.
What will become of China’s spring festival? China’s National Health Commission has stated that people returning to rural areas will need to produce a negative COVID-19 test issued up to seven days before their departure during the popular Spring Festival. Many on social media have been quick to point out that this will disproportionately affect migrant workers who work in cities and travel back to their homes in rural areas at this time. The measures would make it either too impractical or too costly — but officials say these are the precautions which need to be taken to keep China safe.
COVID-19 dashboard: Brand USA has compiled a set of indicators to provide a high-level dashboard of current COVID-19 related conditions. This dashboard summarizes how individual markets are performing in relation to recovery targets, which have been designed to help determine when recovery is sufficient for effective marketing activity.
Singapore workers vaccinated: About 3,000 workers in the hospitality industry received the COVID-19 vaccine as of January 25, after an inoculation program for the industry was rolled out on January 15. About two-thirds are staff in stay-home notice dedicated facilities. The vaccine will be offered to all workers in the hotel industry on a voluntary basis, including the association’s 160 member hotels, which employ about 40,000.
Band together, world: As the governments of the United States, Canada, United Kingdom and the European Union broaden or impose quarantine periods for international travelers, the Global Business Travel Association (GBTA) issued the following statement on COVID-19-related travel policies around the world:
“The business travel industry and its millions of jobs globally continue to support all necessary and practical measures to make travel safe again,” said Dave Hilfman, interim executive director of GBTA. “These measures, put in place to mitigate risk, protect travelers and prevent the spread of COVID-19 and its variants, should continue to be science-based and to strike the appropriate balance between public health and protecting the global economy.”
“However, the move towards quarantines despite multiple studies that question their effectiveness is a real problem. The science suggests that quarantines rank far down the list of effective COVID-19 mitigation measures,” said Hilfman. “Pre-departure testing can help ensure the safety of travelers and residents, while allowing essential international travel to take place without compromising public health. At a time when the business travel industry continues to fight for its existence, a comprehensive approach that does not embrace quarantines can help stop the pandemic and stop the further proliferation of job losses and financial ruin.”