EGS Biweekly Global Business Newsletter Issue 8, Monday, July 13, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“Risk comes from not knowing what you are doing.” – Warren Buffett
“I don’t think of all the misery, but of the beauty that still remains.” – Anne Frank
“Hope is a renewable option: If you run out of it at the end of the day, you get to start over in the morning.” – Barbara Kingsolver, Novelist
Introduction
The goal of this biweekly newsletter is to update the economic and business situation in key trading countries across the world. In our business, we monitor 30+ countries, 25 daily international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries.
Although we search for pertinent articles for this newsletter every day, this edition is mainly made of very recent articles due to the very rapidly changing COVID-19 case and travel situation worldwide.
Many of our newsletter readers send us their input and perspectives to help us publish a balanced overview about the world every other week. Our contact information is at the bottom of this newsletter.
Highlights In This Issue
This issue focuses on what is happening in 20 countries that impact consumer spending, business investment and travel. A few highlights:
⦁ COVID-19 has re-emerged in several countries causing governments to curtail business openings and add travel restrictions
⦁ “COVID-19 Travel and Tourism Reopening and Recovery Guidelines”, The U.S. Commercial Services has provided us with an extensive and detailed 44 Greater Europe country and territory reopening and recovery guidelines document
⦁ Disneyworld in Orlando, Florida and LEGOLAND near San Diego, California reopened
⦁ The UK government is investing £500 million next month to give diners 50% off meals at local restaurants
⦁ Melbourne, Australis is back on a 6 week lockdown
⦁ “Accelerating Recovery With Innovation – 5 Things to Keep in Mind’, there is link to this important coming out of COVID-19 article on by innovating efficiently and effectively near the end of this newsletter.
How Will the Global Economy be Different After COVID-19?
“Many trends already underway in the global economy are being accelerated by COVID-19, and even after the pandemic, may never fully return to their previous trajectories.” This excellent webinar brings together, Gillian Tett, Chair of Editorial Board and Editor-at-Large, US, Financial Times, Mohamed El-Erian, Chief Economic Advisor, Allianz and James Manyika, Senior Partner, McKinsey & Company and Chairman and Director, McKinsey Global Institute. Click on the link below to access this timely YouTube webinar.
https://bit.ly/WAGlobalEconomy
International Travel Updates
“COVID-19 Travel and Tourism Reopening and Recovery Guidelines”, The U.S. Commercial Service posts in Greater Europe have produced an extensive and detailed 44 Greater Europe country and territory reopening and recovery guidelines document as of early July which can be accessed at this link:
“United Airlines adding about 25,000 flights in August, including Denver routes: United Airlines is adding nearly 25,000 domestic and international flights in August as travel demand slowly starts to pick up, although the number of flights is down 40% from where it was last year. The Chicago-based airline said its schedule for August is triple the number of flights it had in June, but travel demand remains “a fraction” of what it was at the end of 2019.”, Denver Business Journal July 1, 2020
“Why I believe we need to start traveling internationally again: A few days ago, in an interview on Irish radio, I made an argument in favor of renewing foreign travel. I talked about how the travel industry had cranked the gears and was cautiously coming back to life after months of mothballed inactivity. How Europe was open to visitors from other European countries. How Ryanair, Europe’s largest airline, had ramped up its schedule from July 1 and was now flying 1000 flights a day – less than half of the 2400 flights it operates normally but still a combative expression of optimism in the face of a crisis without parallel in our lifetimes.”, Lonely Planet, July 10, 2020 Read the full article at this link:
https://bit.ly/LPTravelInternationallyAgain
“American Airlines Delays Resuming Hong Kong Flights Over Mandatory Coronavirus Testing: American Airlines Group Inc said on Thursday it delayed flights to Hong Kong, a day after the city introduced mandatory virus tests for all arriving crew members. Airline crew were previously exempted from tests and quarantine obligations in Hong Kong, but a recent surge in COVID-19 cases in the city prompted its health chiefs to introduce stricter measures to combat rising concerns of a community outbreak. “Starting July 8, crew members of aircrafts entering Hong Kong via the Hong Kong International Airport will be subject to mandatory COVID-19 testing…in addition to a 14-day medical surveillance,” a spokesman for Hong Kong’s Department of Health said in an email to Reuters.”, Skift, July 9, 2020
“Emirates Adds Covid-19 Testing Requirement For 12 Countries: If you’re hoping to jet off on Emirates, you may soon need a negative covid-19 PCR test, or risk denied boarding, wherever your final destination may be. In fact, if you’re traveling from one of 12 countries, you absolutely will, and it’ll be at your own expense. Travelers originating from 12 countries will be subject to the new rules effective July 10th, 2020 in an effort to keep active covid-19 cases off of planes, and restore confidence to the skies. Recent negative covid-19 tests taken within 96 hours of departure will be mandatory.”, godsavethepoints.com, July 12, 2020
“EU travel unity unravels into confusion of border controls: European Union countries and their open border neighbours were supposed to ease restrictions in unison in mid-June and then start allowing non-EU visitors in this month. However, the coordinated opening agreed by ambassadors last week has started to unravel, with a patchwork of widely differing rules and countries going it alone with new controls. One senior EU diplomat said the issue was extremely difficult because the situation was unprecedented and dynamic, saying: “It’s learning by doing, and it is a moving target.”, Reuters, July 10, 2020
“Lufthansa, Austrian and Qatar announce more flights: For Lufthansa, that means thrice-weekly service between Frankfurt and both Boston and Los Angeles beginning Thursday. Frequencies on those routes will increase to five times weekly in August and to daily flights in September. Austrian, for its part, resumed three-times weekly service from Vienna to Washington, Chicago and Newark on July 1 according to Tal Mescal, a Lufthansa Group spokesman. Meanwhile in the Middle East, Qatar announced a resumption of service to 11 destinations beginning Wednesday, including Boston, Los Angeles and Washington. On July 4, the airline will also begin flying to Toronto for the first time with thrice-weekly service.”, The Points Guy, July 1, 2020
The Americas
“The continued shutdown of Latin America and Caribbean is hurting regional airlines: With COVID-19 infections accelerating, the majority of Latin America and Caribbean countries still closed to commercial travel, and Europe imposing travel restrictions, the tourism and aviation industry risks losing millions of jobs and seeing more airlines filing bankruptcy, two leading industry organizations say. On Thursday, the International Air Transport Association and the World Travel & Tourism Council called on regional governments not to abandon the airline industry in the midst of the global coronavirus pandemic. They also reiterated demands for financial support for regional carriers, and clear restart dates for commercial travel from regional governments. ‘We need governments to support and strengthen the restart by quickly implementing the International Civil Aviation Organization’s global guidelines for restoring air connectivity,’ said Alexandre de Juniac, director general and CEO of International Air Transport Association.”, Miami Herald, July 10, 2020
Australia
“Westfield owner Scentre Group said it has seen a lift in customer visitation across its shopping centres. Over the weekend, despite some businesses still being restricted from operating as usual, customer visitation in Westfield shopping centres across the country returned to 86 per cent of what it was at the same time last year. In some centres, daytime visitation, which is 10am to 4pm, was back to 90 per cent of what it was compared with the same period last year. Night-time visitation is expected to lift throughout July as entertainment and leisure options open up.”, Inside Retail Australia, June 30, 2020. Contribute by Jason Gehrke, Managing Director, The Franchise Advisory Centre, Brisbane.
“Australia places Melbourne under 6-week coronavirus lockdown: Authorities to reimpose measures after rise in new Covid-19 cases: Australian authorities will reimpose a lockdown on Melbourne to contain a rise in coronavirus cases, reversing recent measures to relax restrictions in a country that was seen a leader in managing the pandemic….People will be allowed to leave their homes to buy essential items, such as groceries, or for exercise, medical care or work. Restaurants and cafés, which had begun to reopen with social distancing measures in place, will now only be allowed to service takeaway food and drinks.”, The Financial Times, July 7, 2020
“Qantas Halts International Service Until 2021: In the past few days, QF has removed inventory on all international flights [aside from New Zealand] through March 28, 2021. While the flights have not yet been formally canceled, a removal of inventory is almost always followed by a cancelation.”, Airwaysmag.com, July 11, 2020
Brazil
“Rio de Janeiro Beaches Will Remain Closed Until There’s a Vaccine: Rio’s mayor has rolled back June reopenings. This announcement follows a series of reopening measures—and subsequent rollbacks—that have taken place in a matter of weeks within the city. In June, Rio de Janeiro beaches opened after months during which residents were completely forbidden from stepping on the sand. But the quick amassing of crowds, as reported by the Financial Times, led to a July 2 move in which the local government forbade citizens from sunbathing and restricted beach activity to exercise.:, CNN Traveler, July 10, 2020
Croatia
“Croatia makes face masks compulsory in public indoor spaces: Croatia said on Saturday that wearing face masks will be obligatory in most closed public spaces from next week as the number of COVID-19 cases keeps rising. The number of new infections reached 140 on Saturday, the highest recorded so far in a single day. Most cases are in the capital Zagreb and in east of the country.”, Reuters, July 11, 2020
Mainland China
“Coronavirus: Beijing’s economic recovery from June outbreak offers hope ahead of China GDP release: The sight of more than a dozen patrons sitting on stools outside a popular barbecue restaurant on Beijing’s famous Gui Jie food street waiting to be seated is not only good for China’s services industry, but also offers hopes that it can maintain a delicate balance between containing the coronavirus and growing its economy. This typical scene on a normal Wednesday evening would have been unthinkable last month when the street lived up to the literal translation of its name, ghost street, after an outbreak of coronavirus originating from the Xinfadi wholesale food market sprang up in Beijing.”, South China Morning Post, July 10, 2020
France
“Eiffel Tower’s terrace reopens for post-pandemic partying: Visitors to the Eiffel Tower can once more enjoy a drink and even dance on its summer terrace, which opened this week to stunning views of Paris under a warm, blue sky. The tower shut in mid-March due to the coronavirus outbreak, its longest period out of action since World War Two, but re-opened to the public on June 25.”, Reuters, July 10, 2020
Germany
“German experience gives hope for pub reopening, says Mitchells & Butlers: Mitchells & Butlers is hoping that its business in Germany provides a pointer to how trading will be in the UK as it prepares to reopen the majority of its pubs and restaurants to paying customers this weekend. The All Bar One and Harvester operator has about 44 bar-restaurants across Germany under the Alex brand and it reported that sales levels had grown each week since reopening in mid to late May.”, The Times Of London, July 2, 2020
Hungary
“Hungary Imposes Quarantines on Arriving Citizens and Other Travelers: Hungary has imposed new restrictions on cross-border travel as of next Wednesday in order to prevent the spread of the coronavirus after a surge in new cases in several countries, Prime Minister Viktor Orban’s chief of staff said on Sunday. Hungary lifted most of its lockdown restrictions in May and opened its borders to travellers from European Union states and neighbouring non-EU members. On Sunday, Gergely Gulyas told an online news conference that new restrictions were needed to keep the coronavirus ‘outside the borders’ in order to avoid the re-introduction of domestic lockdown measures.”, Skift, July 12, 2020
India
“India reimposes lockdowns as coronavirus cases soar: India is set to reinstate mandatory lockdowns for cities as medical facilities across the country are strained due to a recent surge in new coronavirus infections, The New York Times reports. India’s total case count rose to the third highest in the world this week, with more than 820,000 confirmed infections and 22,123 deaths, according to Johns Hopkins University data.”, Axios, July 11, 2020
“India Extends Blanket Ban for International Flights: DGCA, the Indian Directorate of Civil Aviation, announced today the renewal of the blanket ban of all international flights to and from India. The ban is valid until 23:59 on July 31; however, according to DGCA, there is some talking regarding the possibility of “bubble flights” taking place from Europe, Canada, the US, and the Gulf States.”, Airways Magazine, July 3, 2020
Indonesia
“Garuda Indonesia Set to Launch Nonstop Flight to Bali from U.S., France and India: The Indonesian flag carrier Garuda Indonesia is slated to launch nonstop flights from Los Angeles, San Francisco, Paris, New Delhi and Mumbai to the country’s tourism hotspot Bali. The plan was unveiled after the Governor of Bali announced on Monday that the island would open its doors to international tourists as of Sept. 11, 2020.”, Airline Geeks, July 8, 2020
Ireland
“Ireland launches COVID-19 app using Apple and Google’s technology: Ireland is the latest country to use Apple and Google’s Exposure Notification API. Users who download the app will be able to track symptoms, anonymously warn others if they have tested positive, and be alerted if they have been exposed to someone with the virus.”, iMore.com, July 6, 2020
Japan
“Tokyo shopkeepers brace for another slowdown as coronavirus flares: Two straight days of record novel coronavirus infections in the Japanese capital have dashed shopkeepers’ hopes that business can get back to normal any time soon.”. Reuters, July 10, 2020
“Government statistics shows 85 percent of companies in the Japanese retail industry stated that they experienced some level of setback from COVID 19 – pandemic on their activities and if include those companies who thinks they may have some impact in the future, close to 97 percent of the companies have been impacted. In June, the government allowed Vietnam and Taiwan to resume flights between the two countries.
Japan has started negotiations to relaunch business travel between ten additional Asian countries including China and South Korea as first step followed by Brunei, Cambodia, Laos, Malaysia , Myanmar and Singapore.
Tokyo Disneyland reopened with social distancing as has Professional Baseball with fans admitted on a limited basis. Theaters, Professional Soccer League, Sumo Wrestling are also reopening. The majority of restaurants are re-opening while emphasizing the social distancing measures. The government has allowed bars to open. Many restaurants are reopening with caution and with limiting seating and opening hours as customers retain wary.”, Ichiro (Roy)Fujita, President, I. Fujita International, Tokyo and Torrance, California
“Japan Domestic Demand Increases, Full Recovery Expected by October: According to local media, Japan Airlines is expecting a full recovery of its domestic demand as early as this October following the diminished demand caused by the coronavirus crisis. ‘We expect to recover to 80 percent in August and fully operate in line with our normal schedule around October,’ Shunsuke Honda, an executive officer of Japan Airline said. He mentioned that the country is seeing a surge in travel demand since recent travel restrictions were lifted. In response to a slight uptick in COVID-19 cases in Tokyo in recent weeks, Honda believes the airline can increase the number of flights it operates or use larger aircraft to avoid fully booked flights.”, Airline Geeks, July 7, 2020
“Tokyo Disney reopens, sending Mickey Mouse fans ‘over the moon: Tokyo Disney Resort welcomed visitors on Wednesday for the first time in four months after being closed due to the coronavirus, with fans practicing social distance as they returned to see Mickey Mouse and other beloved characters. Visitors in face masks queuing on floor marks clapped as the gates of the Magic Kingdom reopened, and were encouraged to clean hands, pay without cash and avoid screaming while enjoying one of Japan’s largest theme parks. The resort will operate at a 50% capacity for the foreseeable future, while parades and shows remain suspended. “, Fox Business, July 1, 2020
New Zealand
“Air New Zealand Pauses New Bookings to Ease Burden on Quarantine Facilities: New Zealand said on Tuesday its national airline will not take new bookings for three weeks as the country looks to limit the number of citizens returning home to reduce the burden on overflowing quarantine facilities. As the Covid-19 pandemic worsens globally, thousands of New Zealanders are returning to South Pacific nation, which is among a handful of countries to have contained the coronavirus, reopened its economy and restored pre-pandemic normalcy. Bookings on Air New Zealand flights will be managed to ensure the government can safely place citizens into managed isolation facilities, Housing Minister Megan Woods said in a statement.”, Skift, July 7, 2020
Norway
“Norway lifts many European travel curbs, including parts of Sweden: Norway will lift travel restrictions to and from more than 20 European countries from July 15, including France, Germany and Britain as well as three of the 21 provinces of neighbouring Sweden, the government said on Friday. Norway, which is not a member of the European Union but belongs to the passport-free Schengen Area travel zone, currently has some of Europe’s strictest limitations on travel due to the coronavirus pandemic.”, Reuters, July 10, 2020
Sweden
“As Swedish Travel Impossible, Passports Exchanged for Burgers: Sweden’s passport was considered one of the world’s most powerful, but since its handling of Covid-19, Swedish travelers–unlike their neighbours–face severe travel restrictions, rendering passports ineffective. Now Burger King has seized the opportunity and is offering Swedish citizens the chance to exchange a stamp in their passports for up to five free burgers per person.”, Forbes, July 10, 2020
Thailand
“What an amazing time for the SSP Thailand team, with 14 restaurants opened in the past 14 days throughout Thailand. Suvarnabhumi Airport – Camden Foods, Don Mueang Airport – Burger King, Camden Foods, Bill Bentley, Dairy Queen, Noodle Express, Yentafo, Chang Mai – Dairy Queen, Had Yai – Ritazza Café.”, Shane Beyer, Managing Director, South East Asia, SSP, in a LinkedIn post on July 9,2020
https://bit.ly/LagardereThailand
“Thailand plans to set up an centre to help revitalise an economy hit by the coronavirus outbreak and is considering more relief measures for small businesses, government officials said on Friday. The government plans to extend debt moratoria for small-and medium sized enterprises (SMEs) from October as the pandemic is likely to continue for a while…”, Reuters, July 10, 2020
Turkey
“Turkey is open for tourists: Everything you need to know: s of June 11, Turkey’s international borders are open for travelers from a number of countries, including the U.S. All travelers must wear masks in the airport and onboard flights inbound for Turkey, according to the Directorate General of Civil Aviation. Travelers who show signs of COVID-19 including but not limited to fever, runny nose, cough or respiratory distress will not be allowed to board flights or enter the country. Upon arrival, travelers will be asked to fill out a passenger information form and undergo medical screenings for infection, and anyone showing symptoms upon arrival will be tested for coronavirus. Anyone who tests positive will be referred to a Turkish hospital for quarantine and treatment.”, The Points Guy, July 3, 2020
United Kingdom
“Britain’s coronavirus quarantine rules end for many destinations: Quarantine measures for those travelling to Britain from around 70 countries and overseas territories, including France and Italy, no longer apply from Friday in a boost to the ailing aviation and travel industries hit by COVID-19. Those arriving from higher-risk countries will still have to self-quarantine for 14 days but many popular destinations are now exempt, meaning millions of Britons are able to take summer holidays without having to stay at home when they return.”, Reuters, July 10, 2020
“Gyms, pools and beauty salons to start reopening in days: Gyms, swimming pools and leisure centres will reopen from July 25 and nail bars and beauty salons from Monday, the government has announced. “Normal life is slowly returning,” Oliver Dowden, the culture secretary, said as he disclosed that outdoor swimming pools would be allowed to reopen from tomorrow and indoor gyms, pools and leisure facilities a fortnight later.”, The Times Of London, July 10, 2020
“Diners to get half-price discounts on eating out: Diners are to be given half-price discounts on eating out through an innovative government scheme to fill up restaurants. An estimated £500 million of taxpayers’ money will be used to subsidise food next month, with pubs, cafés and other venues also covered.”, The Sunday Times, July 9, 2020
“London Heathrow Airport Could Start Offering COVID-19 Testing Upon Arrival — What to Know: Testing would especially be helpful for travelers coming from a country not in the UK’s “travel corridor. The test would be the same type of saliva swab test currently used by the National Health Service (NHS) and would be the first testing trial at a UK airport, pending government approval. It would be especially available for travelers coming from countries that are not the UK’s “travel corridor” that was established last week. If approved by the government, testing would be available as a private service for anyone with a flight landing in Heathrow’s Terminal 2, according to a press release. The program, entitled “Test-on-Arrival,” was developed by Swissport International, a ground and cargo handling service, and Collinson Group, which owns Priority Pass.”, Gravel and Leisure Magazine, July 7, 2020
United States
“Disney World Reopens With Masks and Without Lines: Hugging Mickey Mouse and Goofy is off limits; instead they wave from afar. Other Disney characters moseyed through Walt Disney World mounted on horses, guided by masked escorts on foot. Disney World’s two main parks, Magic Kingdom and Animal Kingdom, officially reopened Saturday at a significantly reduced capacity following a sneak peek for some annual passholders Thursday and Friday.”, The Wall Street Journal, July 11, 2020
CNBC has published 5 charts showing U.S. economic trends during the coronavirus pandemic. CNBC, July 12, 2020
“New York City’s Restaurants Are All In on Outdoors: Pandemic keeps clamps on indoor dining, so restaurant owners make the most of sidewalks, streets and parking lots. Outdoor seating is proving to be a critical but tenuous lifeline for New York City restaurants since Gov. Andrew Cuomo indefinitely postponed the reopening of indoor dining in the city over coronavirus concerns. More than 7,900 restaurants across the five boroughs have been approved for the city’s Open Restaurants program, which began June 22 and temporarily allows more expansive sidewalk and roadway seating than was permitted before the pandemic.”. The Wall Street Journal, July 12, 2020
“Legoland CA Hotel to officially reopen on July 17, 2020: As guests and employees’ health and safety remain the top priority at LEGOLAND California Resort, guests will experience some differences at the Hotel including reduced capacity, cashless payments, social distancing practices and enhanced cleaning regimes. Face coverings will be required for all guests three years of age and up as well as all hotel staff members.’, socalthrills.com, July 11, 2020
“Last call: Las Vegas to shut bars down again Friday night to thwart coronavirus spike: Bars are returning to Phase 1 restrictions under the state’s reopening plans at 11:59 p.m., PDT meaning those without food have to close except for curbside pick up where applicable. Nevada is the latest in a series of states to pause or rollback reopening plans. Restaurants must close their bar areas, even if they have tabletop video gaming machines, and can no longer serve parties larger than six people inside. Restaurants can still serve alcohol but for now, you can’t grab a drink at the bar while you wait for your table.”, USA Today, July 10, 2020
“Starbucks Latest Retailer Requiring Customers To Wear Masks: Coffee behemoth Starbucks said Thursday that it will require customers to wear masks inside their stores beginning next week, becoming the latest retailer to require the face coverings that have become a political hot button as the coronavirus pandemic rages through the U.S.”, Forbes, July 9, 2020
“The Latest Consumer Restaurant Trends & Insights from Black Box Consumer Intelligence: Black Box Intelligence continues to provide its regular updates detailing the current impact of the Covid-19 pandemic on the restaurant industry. Here are some key consumer insights from the company as of the end of June can be found at this link to the Franchising.com website:
https://bit.ly/LatestRestuarantTrends
Vietnam
“Emerging from the pandemic, Vietnam must position itself for recovery: Hailed as one of the 11 outperformers among emerging economies, Vietnam is among the first countries to fully reopen its domestic economy.”, McKinsey & Co, July 1, 2020
https://bit.ly/VietnamEmerging
Articles About Doing Business in The Times Of COVID-19 and Beyond
Accelerating Recovery With Innovation – 5 Things to Keep in Mind by The EdgeDweller innovation group.
https://bit.ly/EDRecoveryInnovation
“What Does 1GB of Mobile Data Cost in Every Country?”, Visual Capitalist, July 3, 2020. This is important for when we can travel internationally again.
“What’s Next: The Future of Retail After Covid-19” by Pat Harriman, Franchising.com, July 3, 2020 at this link:
https://bit.ly/FranhisingcomFutureRetail
About US
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
EGS is known for our extensive country, cultural and sector research and publications, including our quarterly GlobalVue™ country ranking chart which can be found at the following link.
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
William Edwards has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East.
Mr. Edwards was named to the District Export Council of Southern California by the U.S. Secretary of Commerce in 2016 and again in 2019.
William Edwards, CFE, is CEO and Global Advisor to Chief Executives, of Edwards Global Services (EGS). Contact Bill at bedwards@edwardsglobal.com or +1 949 224 3896.
