EGS Biweekly Global Business Newsletter Issue 6, Monday, June 15, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“The ultimate measure of a man is not where he stands in moments of comfort and convenience but where he stands in times of challenge and controversy.” Martin Luther King Jr.
“The Chinese word for “crisis” is frequently invoked in Western motivational speaking as being composed of two Chinese characters signifying “danger” and “opportunity” respectively.”, Wikipedia
Introduction
The goal of this newsletter is to provide an update on the economic and business situation around the world. 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.
Many of our newsletter readers send us their input and perspectives to help us publish a balanced view about the world every other week. Our contact information is at the bottom of this newsletter.
The Focus of This Issue
This issue focuses on what is happening in more than 30 countries that impact consumer spending, business investment and travel. The themes of this issue are the continuing reopening of businesses around the world, travel restarts and restrictions as well as government aid programs for businesses.
At the end of this newsletter are links to reports on how governments are spending US$10 trillion on pandemic projects, the future of work in Europe and what retailing will look like post-pandemic in Asia.
In Summary, Europe opens travel without isolation periods except from the United Kingdom and the USA. Business is coming back in mainland China. The United Kingdom continues to have a high number of virus cases and is very slowly reopening. Please go to the link to the International Air Transport Association (IATA), interactive Travel Regulations Map below to learn the details about travel between over 100 countries.
A Coronavirus Country Status Map for June 15, 2020
Based on our research and input from our Associates around the world for this issue of our newsletter, we created this map showing where countries are in the COVID-19 process. Since our June 8th map there have been several changes. Spain and Italy have gone from blue to green. Sweden has gone from red to blue and Peru has gone from blue back to yellow. Latin America remains the region with the fastest growing case, led by Brazil.
International Travel Updates
“The International Air Transport Association (IATA), an authoritative trade association for airlines around the world, has created an interactive Travel Regulations Map powered by Timatic solutions that allow both airlines and travelers to quickly see current COVID-19 travel restrictions for each country around the world. On the map, countries are color-coded based on their current travel restrictions (which will be continually updated by IATA) and are sorted into four categories: totally restrictive, partially restrictive, not restricted or under review.”, Travel & Leisure June 10, 2020
https://bit.ly/TLInteractiveTravelMap
“Delta has received approval from Shanghai government to resume flights: Delta Air Lines (DAL.N) has received approval from the Shanghai government to resume flights from June 18, a company spokeswoman said on Monday, paving the way for the carrier to resume services to China after months of suspension due to COVID-19.
It is still awaiting for the decision from the Civil Aviation Administration of China (CAAC) on how many flights it can resume and when it can do so, the airline said. Delta has filed an application to operate two weekly flights from Seattle to Shanghai via Seoul, it said.”, Reuters, June 15, 2020
“Virgin Atlantic to Resume Flights to the U.S. and Asia in July: The airline will once again start flying to New York City, Los Angeles, Orlando, Hong Kong and Shanghai, beginning either July 20 or 21.”, Travel And Leisure, June 5, 2020
“United plans to shutter three overseas flight attendant bases as international travel suffers. United is closing its flight attendant bases in Frankfurt, Tokyo and Hong Kong.”, CNBC, June 5, 2020
“China and Singapore’s Air-Travel Experiment: A ‘Fast Lane’ With Lots of Waiting: Rules for travel now include coronavirus tests before departure and on arrival, as well as some isolation. Travel between China and Singapore will require coronavirus tests on each end of the trip.”, The Wall Street Journal, June 4, 2020
“Iberia Express Resumes Flights To Six Major European Cities: n July and August, Iberia Express (I2) will gradually recover greater connectivity, both nationally and internationally. Within Spain, I2 will offer 5 weekly frequencies to Santiago de Compostela and Seville. For its part, from mid-July, the airline will resume flights to European cities such as Amsterdam (with 4 weekly flights), Dublin (with 3 weekly flights), Paris and London (with 4 weekly flights from the end of August.), Berlin (with 4 weekly flights from August 1st) and Manchester (with 2 weekly flights from the end of August. In any case, this flight schedule will be adapted to existing demand and may be increased if further positive signs of recovery are seen.”, Airways Magazine, June 6, 2020.
“Britons could be holidaying in Turkey by July 15 as officials hint deal for an ‘air bridge’ to spare tourists 14-day quarantine is close. An air bridge allows for quarantine-free travel between two countries to resume. If agreed, it means Britons could enjoy a holiday in Turkey within just six weeks. More than 2.5million Brits flocked to Turkey last year to enjoy their holidays.”, The Daily Mail.com, June 6, 2020
“On May 27, South Africa tourism minister Mmamoloko Kubayi-Ngubane said at a briefing that the country’s reopening date for international tourists would likely be early 2021. “Based on the COVID-19 epidemic expected trajectory, the first phase of the recovery for the sector will be driven by domestic tourism, followed by regional tourism and international tourism next year,’ Kubayi-Ngubane said, multiple international media outlets, including The Telegraph and the Evening Standard, reported.
Australia
“Australia is just opening up with restaurants able to have 50 patrons as long as social distancing of 4SqM per person. This has limited the numbers far below 50 in many smaller restaurants. Gym’s are opening with the same person/space restrictions but Australia is in recession. The government JobKeeper program is supporting almost 60% of the workforce here with a payment to businesses of $1500 per fortnight and this will continue to September 2020. Many here are concerned that when this is withdrawn we will be at an economic cliff. Franchising is recovering and our franchise lead generation has increased from March to May by over 60% and we will grant several new franchises in June. High unemployment is driving some of this demand as well as the realisation that being an employee is no longer secure.”, Rod Young, Chairman, DC Strategy, Sydney
Brazil
“The most active economic sectors in Brazil are agriculture, drugstores and supermarkets. The most hardly hurt are traditional education and entertainment. Retail is expected to restart operation in most states these next few days. President Jair Bolsonaro is a strong defender of the reinstatement of economic activities. Against all evidence, he minimizes the effect of the corona growth, defending the use of chloroquine. Because of states autonomy, the situation is not uniform over all regions.’”, Ursula Aleixo, Managing Director, Fastdezine Team, Bello Horizonte
“Brazil’s Sao Paulo, the country’s largest city and the first to report a coronavirus case, has authorized car dealers, law firms and accounting companies to resume activities as of Friday, the mayor’s office said, after approving health protocols they had developed. According to the protocols, car dealers will have to control customer traffic to avoid gatherings, adopt a rotating system for employees, and respect the use of face masks and hand sanitizer.”, Reuters, June 5, 2020
Canada
“Ontario to reopen restaurants, hair salons outside of virus hot spots. The reopenings will begin as of midnight on Friday in 24 of the 34 health regions in Canada’s most populous province and the country’s economic engine, as it moves into the second phase of slowly reopening its economy. The province will also increase the maximum of social groups to 10 people from five in permitted health regions, which include Ottawa, Canada’s capital city.”, Reuters, June 8, 2020
Mainland China
“China’s auto sales surged 14.5% in May, a second straight month of growth as the global industry’s biggest market gradually recovers from the coronavirus pandemic. The China Association of Automobile Manufacturers said Thursday that sales of passenger cars jumped 7% from a year earlier to 1.67 million, an improvement over April’s 2.6% contraction.”, Reuters, June 11, 2020
“On the comeback trail? Chinese consumers emerge from Covid-19”, The Economist Intelligence Unit, June 2020
https://bit.ly/ChineseConsumer0620
Recent development in the franchising sector in China: “The Ministry of Commerce of the People’s Republic of China (“MOFCOM”) released its most recent biweekly bulletin of franchise registration on June 3, 2020 (http://txjy.syggs.mofcom.gov.cn/). According to the data revealed in the bulletin, as of June 3, 2020, the total number of franchisors that have completed the MOFCOM franchise registration is 5,730. Beijing is still the top destination with 1,008 franchise registrations, leaving Shanghai with 608 franchise registrations as the second place, and Guangdong province with 470 franchise registrations as the third place. And the number of franchise registrations by foreign franchisors (excluding Hong Kong, Macau and Taiwan) is only 119, which is surprisingly smaller than the number of the domestic mainland registrations. Among all the industries, the number of the franchise registrations in the restaurant and catering industry is 2,260, accounting for almost 40% of all the registrations, leaving the retail trade with 1,699 registrations as the second place.”, Xu (Leo) Xin, Jones & Co., Toronto, Ontario. Canada
“Investors eye business opportunities as China focuses on convenience store development: Although a permanent fixture in mega cities like Shanghai, convenience stores are scarcely seen in smaller cities. “China’s convenience stores are at their fledgling stage of development,” Ouyang Jianyu, an analyst with Chuancai Securities, said. ‘They are mainly established in big cities, local brands are yet to be exploited and the scale of value-added services is relatively small.’ There are only 130,000 chain convenience stores in China, which is far from enough to satisfy people’s needs, Minister of Commerce Zhong Shan said at a press conference on May 18.”, Beijing Review, June 8, 2020. Compliments of Paul Jones, Barrister, Solicitor & Trade-mark Agent, Jones & Co., Toronto
“Chinese businesses adapt to post-lockdown reality. Deep cleaning, temperature checks and smartphone apps all deployed to stop a second wave. China’s big cities have started to come back to life but worries remain about a potential second wave and businesses are struggling with a shortage of customers. Most urban centres are free from the virus yet companies are implementing disease control measures, ranging from checking guests’ temperatures and having staff and customers wear masks to conducting regular deep cleans of facilities.”, The Financial Times, June 8, 2020
https://bit.ly/ChineseBusinessesPostLockDown
Czech Republic
“The Czech government agreed to fully open its borders with neighbours Austria and Germany and allow unrestricted travel to and from Hungary from noon on Friday, Prime Minister Andrej Babis said. It fully opened its border with Slovakia on Thursday. ‘People who visit these countries do not need any coronavirus test nor quarantine,’ Babis told a news conference shown live on television.”, Reuters, June 4, 2020
Denmark
“Denmark plans to lift the limit on public gatherings from 50 to 100 people in July and to 200 in August as it eases measures to curb the spread of coronavirus, the government said on Monday. Earlier on Monday, the government raised the limit on public gatherings from 10 to 50 and allowed fitness centres and public swimming pools to reopen.”, Reuters, June 7, 2020
The European Union and The United Kingdom
“Here are all the European countries reopening today – and who can actually visit
Nations including France, Greece and Iceland are relaxing border restrictions from this week.” Timeout, June 15, 2020
https://bit.ly/EUCountriesOpening
“Coronavirus infections haven’t spiked since Europe loosened lockdowns… In Italy and across most of Europe, countries have restarted their economies and resumed a degree of socializing without visible signs of the dire health consequences forecast by many… Europe’s experience, at least so far, suggests that sending children back to school, reopening restaurants and even making way for large outdoor protests does not lead to an inevitable resurgence of the virus.”, The Washington Post, June 5, 2020
“Cafe society returns to Europe – where two metres isn’t the social distancing rule – as Britain’s restaurants, bars and coffee shops remain closed. France opened restaurants partially in Paris and fully in the rest of the country. Germany has a 1.5 (metres) social distancing rule but all sized-shops are allowed to open. Italy has opened bars and restaurants with new social distancing measures,”, Daily Mail.com, June 14, 2020
France
“France will begin to lift travel restrictions on 15 June. As France continues to ease its lockdown measures, the government has announced it will lift border restrictions with European countries on 15 June.”, Lonely Planet, June 12, 2020
Greece
“Greek Prime Minister Promises Tourist Safety as Country Reopens to Foreign Visitors…. International flights to and from the country’s main airports will resume on June 15, after a nearly three-month lockdown. Accounting for about 20% of Greece’s economic output, tourism is vital for the Mediterranean nation, which emerged from a decade-long debt crisis in 2018.”, Skift, June 13, 2020
Ireland
“Irish hotels are set to be allowed to reopen at the end of the month, three weeks ahead of schedule, under a proposed speeding up of the government’s post-coronavirus reopening plan being discussed by cabinet on Friday, the Irish Times reported. It also reported that, instead of the planned extension of a travel limit to 20 km (12 miles) from 5 km (three miles) to keep the spread of the coronavirus under control, the cabinet were discussing allowing people to travel anywhere within their county.”, Reuters, June 5, 2020
India
“The future of restaurants and bars in India in the time of COVID-19The central government has given a nod for restaurants to open….You enter the restaurant; your temperature is checked and the smile of your server is hidden behind a mask. He will take you to your table but will he bring the menu or take your order? Probably not. You can’t sneak a glance to see what the next table has ordered because it is six feet away. Technology will rule, your table may have a QR code that will help you scan and browse the digital menu, the order will be placed and the bill paid via the app.”, Lonely Planet, June 13, 2020
Indonesia
“Indonesians in Jakarta returned to mosques on Friday for prayers after the city relaxed rules on attending places of worship as part of a loosening of restrictions in place since late March to contain the spread of the coronavirus. Jakarta’s governor on Thursday announced some easing of restrictions including attending mosques for communal prayers but warned the fight against the outbreak was far from over in southeast Asia’s biggest city.”, Reuters, June 5, 2020
Italy
“Italy was one of the first countries to adopt the joint Apple/Google API for its coronavirus contact tracing app, and early signs are that this is helping reassure people. Immuni contact tracing app downloads hit more than 25% of those given access in the first ten days.”, 9to5Mac, June 12, 2020
Japan
“Japan’s service sector sentiment index rose in May, a Cabinet Office survey showed on Monday, although the coronavirus pandemic continues to weigh on firms’ business confidence. The survey of workers such as taxi drivers, hotel workers and restaurant staff – called “economy watchers” for their proximity to consumer and retail trends – showed their confidence about current economic conditions rose 7.6 points to 15.5 from a record low marked in April.”, Reuters, June 7, 2020
Malaysia
“The new normal: Malaysia’s pandemic politics: Malaysians are ready to get moving again. From tomorrow the country will advance into a more relaxed phase of controls to combat covid-19. It will last until the end of August. A stringent lockdown began on March 18th, before easing somewhat on May 4th. Travel between Malaysian states now will be allowed (with a few exceptions), though the country’s international borders remain closed.”, The Economist Expresso, June 9, 2020
Middle East Region
“The Middle East is fighting a second wave of covid-19. Countries that thought they beat the coronavirus discover they have not…. Several countries have seen, if not yet a second wave, at least a worrying resurgence of cases…. However, governments are reluctant to shut down again just as their economies are sputtering back to life.”, The Economist, June 13, 2020
https://bit.ly/MiddleEastCasesRise
“For the business in the UAE, all malls, restaurants and cafés are currently operating in the UAE but of course, there are still restrictions in the number of people accessing restaurants. Business is still very low, malls are empty. Churches, mosques, and swimming pools at all hotels and compounds are still closed. For Egypt, malls are open but all restaurants, cafés, sport clubs, churches and mosques are still closed. Curfew is from 8:00 pm to 6:00 am. Number of cases in Egypt are on the rise, beds available at all private and public hospitals are very limited; if any. Expected that hotels at resorts at the North Coast, Hurghada, and Sharm El Sheikh start to operate beginning of July but no confirmation as of today. No business travel is allowed for Egypt and the UAE till now. Pharmaceutical companies in the UAE advised their employees that there will be no travel permitted till September.”, Manal El Masry, Genera; Manager, Ideate Project Management Services, Dubai
New Zealand
“New Zealand lifts all Covid restrictions, declaring the nation virus-free. Under new rules, social distancing is not required and there are no limits on public gatherings, but orders remain closed to foreigners.”, BBC.com, June 8, 2020
“Air New Zealand (NZ) will resume, from June 25, the Auckland (AKL) -Tokyo Narita (NRT) route. Quoting the Airline’s General Manager Networks Scott Carr, the announcement mentions that NZ will operate one return service per week from the 10 operated before the Coronvirus crisis.”, Airways Magazine, June 15, 2020
“New Zealand said on Friday that it was extending its wage subsidy scheme to help an additional 40,000 businesses keep staff employed as they recover from the impact of the coronavirus pandemic. After feedback from businesses, the government decided to change the required revenue drop threshold for firms to apply for wage subsidy to 40% from 50%, finance minister Grant Robertson said in a statement.”, Reuters, June 4, 2020
Norway
“Norway Opens Border To Most Nordic Countries, Sweden Restrictions Remain. New travel rules: Citizens from Denmark, Finland and Iceland will be welcome in Norway from June 15 without being subject to quarantine rules.”, Forbes, June 12, 2020
Panama
“Panama reinstated severe measures, including transit restrictions, due to an increase in infections. As of June7, personal movement is restricted to three days in each week with different days according to sex. At the same time, there is a gradual opening some businesses but buyer traffic is limited due to movement restrictions. Copa, a regional airline, will reopen in July with 10-15% of its previous flights.”, J. Enrique Tellez, Senior Franchise Consultant, Panama City
Russia
“Moscow, Center of Russia’s Coronavirus Crisis, Emerges From Lockdown…Residents of the Russian capital emerged Tuesday from a strict coronavirus lockdown, a day after Moscow authorities announced they would lift key restrictions in a move Kremlin critics say is meant to project safety and normalcy ahead of two key events—even as infections in the city remain high. Muscovites, who had been ordered to remain at home for more than 10 weeks, can now go outside without limitation, visit hair salons and take part in certain other activities—the beginning of what officials say will be a phased reopening of the city. By June 23, most businesses and other parts of ordinary life are expected to be fully up and running.”, The Wall Street Journal, June 9, 2020
“McDonald’s will open in Russia institutions with enhanced security measures: They will have divorced flows for couriers and guests, self-service kiosks, numbered tables and disinfectants. the restaurant will be marked, regulating the distance between people. McDonald’s employee in protective gloves will open the door for visitors. At the first stage of leaving the self-isolation regime, no more than 10 people will be allowed into the institution, at the second – no more than 20. But even after the complete removal of restrictive measures, the company promises to comply with increased safety rules. Flows of couriers and guests will be divided into different queues, as well as different entrances and exits. Upon entering McDonald’s, the guest will be asked to disinfect their hands and will be given a table number plate. It will be possible to make an order using the self-service kiosk. McDonald’s employees will bring the finished order.”, Vedomosti.ru, June 1, 2020. Translated for the EGS newsletter by Paul Jones & Co., Toronto
Saudi Arabia
“Saudi Arabia has reimposed a curfew in the Red Sea city of Jeddah 3 p.m. to 6 a.m. for two weeks starting on Saturday due to the spread of the coronavirus, and suspended work in offices, state news agency SPA reported. SPA said prayers in the city’s mosques had also been suspended.”, Reuters, June 5, 2020
Singapore
“Singapore will allow small gatherings and the reopening of restaurants and shops from June 19, its health ministry said on Monday, in a major easing of the city-state’s coronavirus restrictions. Social gatherings of up to five people will be permitted from Friday, when the majority of activities resume after more than two months of restrictions, dubbed “circuit breaker” measures. Social distancing requirements will remain in place.”, Reuters, June 15, 2020
South Africa
“Schools reopen in South Africa as parents worry about safeguards: Children began returning to classrooms in South Africa on Monday as part of a gradual loosening of COVID-19 restrictions, even as some parents worried not enough had been done to guard against infections.”, Reuters, June 7. 2020
Spain
“Back to school for some, clubbing for others as Spain loosens restrictions: Pupils returned to school in some areas of Spain on Monday and nightclubs opened in others in a further easing of the country’s coronavirus lockdown… Nightclubs reopened in much of Spain though a widely mocked ban on dancing will be enforced to prevent infections.”, Reuters, June 8, 2020.
“Spain after COVID-19: From resilience and reimgaination”, McKinsey & Company, June 4, 2020
https://bit.ly/SpainReimagined
Switzerland
“Switzerland plans to open its borders to European Union countries, EFTA members and Britain on June 15, the government said on Friday, bringing forward its timetable as cases of the novel coronavirus ebb.”, Reuters, June 5, 2020
Thailand
“Thailand eases more coronavirus restrictions, ends curfew…The new measures, which take effect Monday, were announced after more than six weeks in which the daily increase in cases was usually less than 10, and almost all new infections originated abroad.”, ABC News, June 12, 2020
Turkey
“As of June 2, Turkey has started testing the normalization process. Accordingly, intercity travel bans have been lifted. Parks and other recreational spaces are reopened (people are expected to continue social distancing though). Children under 20 can go outdoors on Wednesdays and Fridays (this used to be one day only) and restaurants are reopened. We will see the outcome of this normalization attempt in 10-15 days. Meanwhile, international flights of Turkish Airlines opened for domestic flights on June 4th.”, Enver Celikbas, Istanbul
From the Turkish Airlines website on June 14th: they will start flying to Chicago and Washington DC as of June 19, 2020, to Los Angeles as of June 24, 2020 and to Miami as of June 22, 2020. They will fly to Hong Kong and Seoul as of June 24th. Turkish Airlines will expand their Middle East flights between June 14-24. They started flying again to Europe June 11 and will expand these flights through June 21st. No date for flying to the United Kingdom has been set.
United Arab Emirates
“Punjab Grill is now open for dine-in business in Abu Dhabi. Reservations are mandatory!”
United Kingdom
“After Friday’s GDP number for April, which showed the economy crashed by an unprecedented 20% in a month, all eyes will be on the Bank of England. Jill Treanor, our City editor, reports that Governor Andrew Bailey is expected to unleash up to £150bn of extra stimulus into the system– on top of £645bn already carried out through money-printing, or quantitative easing. Meanwhile, jobs data is forecast to show the unemployment rate jumped from 3.9% to 4.5% in the three months to April.”, The Times of London, June 14, 2020
“Coronavirus: All shops can reopen from Monday if ‘Covid-secure’. Alok Sharma, the business secretary, confirmed that from June 15 non-essential retailers, such as clothes stores and bookshops, would be able to welcome customers for the first time since March 23 — but only if they had made their premises “Covid-secure”. Mr. Sharma said that other businesses, including pubs, restaurants, hairdressers and gyms, would remain shut until July 4 at the earliest. The announcement appeared to remove the idea that pubs with beer gardens would be allowed to open on June 22.”, The Sunday Times, June 10, 2020
“Apple will reopen a select number of its retail stores in the United Kingdom beginning June 15. All Apple Stores outside of Greater China closed on March 13 due to the COVID-19 pandemic and have been gradually reopening across the world since April.”, 9to5Mac, June 12, 2020
“Sunday trading laws will be suspended for a year and cafés and pubs will be given fast-track approval to serve food and drink outside under plans to boost the economy. Downing Street is drawing up a package of measures in response to mounting concern that Britain will face mass unemployment as it emerges from the coronavirus lockdown. The government is preparing legislation that will enable larger supermarkets to open for more than six hours on Sundays.”, The Times Of London, June 5, 2020
“Coronavirus in Scotland: Two hours to be served as McDonald’s opens again: Police were called to several branches of McDonald’s as the reopening of drive-throughs yesterday caused traffic congestion around the country. The fast-food giant opened 31 outlets for takeaway only in Scotland at 11am, triggering enormous queues. People waited in cars, on a day when temperatures reached 22C, for up to two hours to satisfy their cravings for burgers.”, The Times Of London, June 3, 2020
Articles About Doing Business in The Times Of COVID-19 and Beyond
“The $10 trillion rescue: How governments can deliver impact: Governments have announced the provision of trillions of dollars in crisis relief, but translating that into sustained recovery will not be easy.”, McKinsey report, June 4, 2020
“Beyond COVID-19: How Asia’s retailers can navigate the post-pandemic new normal.” A detailed report from Fung Business Intelligence, dated May 2020
https://bit.ly/FBICAsiaRetailUpdate
“The future of work in Europe”. A discussion paper by the McKinsey Global Institute, The future of work in Europe takes a longer-term view of the situation, to 2030. Through a detailed analysis of 1,095 local labor markets across Europe, including 285 metropolitan areas, it examines profound trends that have been playing out on the continent in recent years and will continue to do so in the future.”, McKinsey, June 10, 2020
https://bit.ly/FutureOfWorkInEurope
“Consumer sentiment is evolving as countries around the world begin to reopen. As restrictions lift and pockets of spending return, consumer behavior begins to adapt to the next normal. As the COVID-19 crisis continues and geographies around the world begin to reopen, consumer behavior has started to change.”, McKinsey, June 5, 2020
https://bit.ly/ConsumerBehaviorChange
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. EGS is known for our extensive country, cultural and sector research and publications, including our quarterly GlobalVue™ country ranking chart.
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. 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.
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.
EGS Biweekly Global Business Newsletter Issue 5, Monday, June 1, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“’I wish it need not have happened in my time,’ said Frodo. ‘So do I,’ said Gandalf, ‘and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us.’” —J.R.R. Tolkein
“You may not control all the events that happen to you, but you can decide not to be reduced by them.” —Maya Angelou
Introduction
The goal of this newsletter is to provide an update on the economic and business situation around the world. 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.
Many of our newsletter readers are sending us their input and perspectives to help us publish a balanced view about the world every other week. Our contact information is at the bottom of this newsletter.
The Focus of This Issue
This issue focuses on what is happening in 26 countries that impact consumer spending and travel. As with newsletter issue #4, the three themes of this issue are the continuing reopening of businesses around the world, travel restarts and restrictions.
In Summary, many more countries are starting or expanding reopening of businesses than the last report on May 20th. There is some progress in restarting business travel in the Asia Pacific and in Europe without 14-day isolation periods once a passenger arrives. The Americas and the Middle East remain largely closed down due to increasing virus cases, tight government restrictions or both.
A Coronavirus Country Status Map for June 1, 2020
Based on our research and input from our Associates around the world for this issue of our newsletter, we created this map showing where countries are in the COVID-19 process.
International Travel Updates
“How Travel Will Change: Airports will have more security and screening; hotels and homes rentals will prioritize cleaning but keep the personal touches; local travel is set to boom in the next year; we’ll be spreading out across bike lanes, buses, and public transportation; restaurants and bars will operate with distance, for now; and car rental pickups will get a lot more seamless. Conde Nast Traveler, May 29, 2020
https://bit.ly/HowTravelWillChange
“U.S. airlines continue to add back long-haul international routes, albeit at a snail’s pace. June is typically a banner month for international travel as schools are out and people take off on summer holidays the world over. Not this year as mandatory quarantines and travel restrictions will keep most would-be travelers near home. For June, these are the 40 long-haul routes to Africa, Asia-Pacific, Europe and far South America that U.S. carriers are flying with passengers.”, The Points Guy, May 27, 2020. See the U.S. carrier international flight adds at this link:
https://bit.ly/TPGUScarriersaddintlflights
“Singapore-China to open essential travel corridor in early June: Singapore and China plan to reopen essential travel for business and official purposes between the two countries early next month, they said in a joint statement on Friday. The so-called “Fast Lane arrangement” will be first applied between the Southeast Asian city-state and six Chinese provinces and municipalities – Shanghai, Tianjin, Chongqing, Guangdong, Jiangsu and Zhejiang – before being gradually expanded.”, Reuters, May 29, 2020
“Qatar Airways said on Twitter on Tuesday that it planned to fly a summer schedule to over 80 destinations worldwide.”, Reuters, May 26, 2020
“United Airlines to return to 11 cities in Asia, Europe and South America in July: United Airlines will resume flying a quarter of its schedule in July as the carrier builds back its route map from the depths of its coronavirus pandemic cuts. The Star Alliance carrier will return to 11 long-haul cities in Asia, Europe and South America, United said on May 29. Destinations include Brussels (BRU), Buenos Aires (EZE), Delhi (DEL), Dublin (DUB), Hong Kong (HKG), Lima (LIM), Munich (MUC), Seoul Incheon (ICN), Singapore (SIN), Tokyo Haneda (HND) and Zurich (ZRH).”, The Points Guy, May 30, 2020
“Ryanair has announced that it will ramp up flights to 40 per cent of its normal schedule to the ‘key holiday airports’ in Spain, Portugal, Italy, Greece and Cyprus.”, The Daily Mail, May 26, 2020
“Countries try ‘travel bubbles’ to save post-lockdown tourist season: Facing the loss of a significant part of their economies, some countries in Europe are banding together to ease travel restrictions and avoid quarantines. The European nations of Lithuania, Estonia and Latvia have already created what they are calling a “Baltic travel bubble,” allowing one another’s citizens to travel among the three states without having to self-isolate on arrival. Greece, a major beach destination for Europeans said Wednesday that citizens of Balkan and Baltic countries, Germany and regional neighbors such as Israel and Cyprus are expected to be in the first wave to be allowed to enter the country without going into quarantine, but could be subject to random testing. Some countries might be excluded depending on the situation with their coronavirus outbreaks, Greek officials said.”, NBC News, May 25, 2020
The various sources on travel to mainland China below seem to offer different views on when ‘normal’ business travel to that country will be possible. And at present there is a 14-day isolation period when you arrive before business meetings can be done.
Australia
“NSW Pubs, Cafes And Restaurants Will Be Able To Welcome 50 People By June 1: The New South Wales government has declared that bars and pubs in the state will be allowed to welcome up to 50 people by June 1. Premier Gladys Berejiklian said the latest round of coronavirus case figures prove it is becoming safer for people to reenter the community. Establishments have previously been restricted to just 10 people and the actual public bar sections have been shut, meaning people wanting a beer or wine would have to have it with a meal. Under the new guidelines, the bar section will be permitted to open and welcome five times the number of people previously allowed.”, LAD Bible, May 22, 2020
Canada
“While B.C. has succeeded in lowering its numbers, Ontario and Quebec, Canada’s first and largest provinces respectively, have stubbornly higher numbers and therefore no set date for re-opening. But with warmer weather it is becoming harder for the governments to hold people back. Still in Toronto, there are no restaurants (except for take-out), no hair salons, and no gyms. Other retail stores with street access (in other words no malls) have been allowed to re-open.”, Katya Logunov (Stepanishcheva), Barrister & Solicitor, Jones & Co., Toronto
“Quebec, Canada’s hardest-hit province, is also the most aggressive about reopening
It’s home to more than half of Canada’s coronavirus cases and more than 60 percent of its deaths. Retail businesses, manufacturing, construction and schools are all up and running.”, The Washington Post, May 23, 2020
Mainland China
“Chinese civil aviation authorities plan to extend until June 30 their curbs on international flights to contain the spread of the coronavirus, the U.S. embassy in Beijing said in a travel advisory on Friday. China has drastically cut such flights since March to allay concerns over infections brought by arriving passengers. A so-called “Five One” policy allows mainland carriers to fly just one flight a week on one route to any country and foreign airlines to operate just one flight a week to China.”, Skift, May 29, 2020
“Delta And United’s China Plans Get Lift As Chinese Airlines Propose More U.S. Flights If Coronavirus Curbs Ease: Delta Air Lines and United Airlines are frustrated they cannot add flights to China due to coronavirus-related restrictions. Those same curbs are holding back Chinese airlines, which are limited to one weekly flight each but propose a far larger summer schedule. China Eastern could fly 45 weekly China-U.S. flights, China Southern 38 and Xiamen Airlines nine, the carriers told the U.S. government. Under rules introduced March 29, foreign airlines have been allowed to fly just one flight a week to China while Chinese airlines have been limited to one flight a week to individual countries. Delta intends to fly daily to Shanghai from Detroit and Seattle. United told employees it wants to fly daily from its San Francisco hub to Beijing, Chengdu and Shanghai, and have a fourth flight from Newark to Shanghai. American Airlines has not disclosed plans.”, Forbes, May 29, 2020
“Global travel disruptions remain the top concern for American companies in China, with 90% of respondents to AmCham China’s new Flash Survey saying this has impacted their business operations, up from 77% last month. Meanwhile, both the short and long-term effects of the pandemic are now becoming clearer to companies, with 60% of respondents cutting costs (up 10pp from last month)…over one-third of respondents – rising to 53% in the Technology sector – are allowing managers to implement flexible work policies; just under one-third say they will not continue flexible work policies going forward. Nearly one-third of respondents say they are freezing or deferring internal promotions, while 28% of respondents say they will cancel or defer salary increases, and 18% say they will reduce or cancel bonuses in 2020.”, AmCham China, May 29, 2020
“Shanghai’s Hongqiao airport became the first airport in China to get an outlet of New York City-based fast-food chain Shake Shack. The burger brand opened for business at the airport’s T2 terminal on Thursday. Apart from its classic ShackBurger, the outlet sells cheeseburgers with pork and egg, juice, coffee and other breakfast choices to cater to business travelers. The outlet is decorated with elements of the city’s landmark Yuyuan Garden and air travel. Karina Lai, a retail management official at the airport, said the opening showed the airports ambition to restore business vitality and bring back customers to stores in the terminal buildings. They had been hit by the cancellation of flights due to the coronavirus pandemic. About 77 percent of the airport stores have reopened and the number of travelers has also been rising. The airport handled over 60,000 travelers in May, about 60 percent of the usual.”
https://www.shine.cn/news/metro/2005289077/
Colombia
“Colombia to begin easing restrictions from the start of June: Colombia will begin easing restrictions put in place to control the spread of the coronavirus starting from June, President Ivan Duque said Wednesday, though he asked the public to continue isolating at home and keep using measures to contain the disease.”, Reuters, May 27, 2020
Czech Republic
“The country’s state of emergency ended on 18 May. On 25 May, shops in shopping centres, business premises over 2,500 m2, restaurants and other services re-opened. Smaller retail units were partly or fully operational already prior to this. Wearing masks continues to be compulsory in inside public space, public transportation etc. Travel restrictions are being slowly being lifted with some “safe” countries (where the pandemic situation has improved / is comparable to that in the Czech Republic). It continues to be uncertain to which countries people will be able to travel for holiday, but popular near destinations such as Slovakia, Austria and Croatia are almost certain. The tourism industry, especially in Prague which is otherwise normally full of foreign tourists, of course critically suffers. Besides travel agencies, restaurants, hotels etc., also the real estate market is strongly affected because thousands of Airbnb apartments have been put out on the market for normal lease.”, Gabor Kaczmarczyk, Your Concierge, Budapest
Ecuador
The highest amount of virus cases and deaths have been in the region of Guayas (where the city of Guayaquil is located – the country’s largest). The stats have now stabilized and the country is beginning a phased reopening schedule. With 3108 deaths Ecuador’s situation has been similar to Peru’s, but worse than in Colombia where the virus was better controlled. Ecuador has indeed been quite impacted by Covid-19. As of right now, every city has its own protocol to go back to normal, as some cities have been more impacted than others. We have a red, yellow and green phase. Quito is in red, Guayaquil just moved to yellow. 30% of international flights will resume operations starting June 1st.”, Sandra Tinajero, U.S. State Department, U.S. Embassy in Quito
France
“Restaurants due to reopen across France: Édouard Philippe, the French prime minister, is expected to authorise restaurants outside Paris to open next week. Mr. Philippe may also allow the country’s 8,000 campsites to reopen as France prepares for the summer holidays. He is due to unveil the second stage of exiting lockdown this afternoon. Museums, cinemas and theatres are hoping that they will be given permission to open for the first time since March. The lockdown was imposed on March 17 and partially lifted on May 11.”, The Times Of London, May 28, 2020
“Paris cafes, bars and restaurants to reopen to outdoor space row: Temporary use of pavements or parking spots to be allowed for outdoor-only service, says mayor (Anne Hidalgo). ‘We have adopted a plan to help bars and restaurants for at least six months from March until the end of September,’ Hidalgo told Le Parisien. ‘One of these measures is the free occupation of a part of space in Paris. It could be pavements where possible or parking places. We could also close certain roads to traffic for some weekends to allow bars and restaurants to have more space.’”, The Guardian, May 31, 2020
Germany
“Germany to lift virus-related travel warning for EU countries from June 15: Germany will lift a warning against travel to 26 fellow EU countries from June 15, Foreign Minister Heiko Maas said on Wednesday, adding that Berlin would decide later on its travel guidelines for other countries, including Turkey.”, Reuters, May 27, 2020
Greece
“Greece is to open up to tourists from 29 countries in two weeks – but not those travelling from the UK. Tourists from EU countries including Germany, Austria, Denmark and Finland will be able to visit from 15 June, the tourism ministry said in a statement on Friday. But some of the world’s worst-affected countries – including the UK, France, Italy and Spain – are not on the list. More countries could be added before 1 July, the ministry added. Only airports in Athens and Thessaloniki will open on 15 June. Tourists from 16 EU countries will be allowed into the country, including the Czech Republic, Baltic countries, Cyprus and Malta.”, BBC.com, May 29, 2020
Hong Kong
“Travelers can transit through Hong Kong airport beginning in June: Hong Kong International Airport will reopen to transit travelers in June after a more than two-month closure to connecting passengers to stop the spread of the novel coronavirus. Beginning June 1, travelers can connect between flights on the “same airline group” at Hong Kong (HKG), according to the airport. Passengers must be checked in through to their final destination prior to landing in Hong Kong, and must wear a mask while they are in the airport. Non-residents are still barred from arriving in Hong Kong. In addition, travelers cannot transit to destinations in mainland China, reports the South China Morning Post.”, The Points Guy, May 30, 2020
“Hong Kong should form ‘travel bubbles’ with neighbours that have pandemic under control, tourism board chief says. Creating links with nations such as South Korea, Thailand and even mainland China could bring visitors back to city, according to Dane Cheng.”, South China Morning Post, May 22, 2020
Hungary
“The Hungarian government lifted most of the limitations on May 30: shops could re-open a couple of days earlier, and restaurants can receive guests even inside their premises if their ventilation doesn’t only circulate the air, but constantly adds fresh air from outside. Patients can now visit their doctors again for non-COVID-related examinations as well. Larger events, however, will most likely not be allowed before September. People must wear masks inside of public buildings (e.g. shopping malls, shops, government offices, etc.), as well as when using public transportation. The Hungarian government pays great attention to the recovery of the economy, and provides interest-free loans as well as non-refundable grants to companies to keep up the employment. The tourism industry suffered probably the most because of the epidemic, and it will take a while until the hotels recover, especially in Budapest. Restaurants are not in an easy situation either, although many of them started a delivery service, including fast food restaurants like Burger King and McDonalds. As far as travel is concerned, citizens from outside the European Economic Area (e.g. the U.S.) are still not allowed to enter the country, even if they reside here.”, Gabor Kaczmarczyk, Your Concierge, Budapest
India
“India is extending lockdown restrictions to June 30 in what the home ministry is calling “containment zones,” while allowing restaurants, malls and religious buildings to reopen in other parts of the country, Reuters reports. The order comes as India reported a record number of daily new Covid-19 cases a day before Prime Minister Narendra Modi’s initial lockdown order was set to lift, according to Reuters. India is allowing hospitality and retail businesses, along with places of worship, to open on June 8, while those buildings must keep social distancing rules in place, Reuters reported.”, CNBC, May 30, 2020
Japan
“After months of closures because of the coronavirus pandemic, some Apple Stores in Japan will reopen this week.”, iMore, May 25, 2020
Mexico
“New cases are still mounting each day in Mexico City, and there’s been a lot of chatter and criticism recently about the country’s handling and reporting of the virus. Some parts of the country are easing restrictions despite the increase in new cases because they cannot afford to be shut down economically. Most of these issues are taking place in and around Mexico City, one of the world’s most populated cities with about 21 million residents in its greater area. That said, other areas in Mexico are not as contaminated by the virus. In fact, Mexico’s plan calls for the country to reopen region-by-region, based on the number of local cases. Nearly 300 municipalities around the country, nicknamed “municipalities of hope,” have already begun to open.”, Forbes, May 26, 2020
New Zealand
“Small businesses and the self-employed have claimed almost $1 billion in ‘‘low or no interest’’ government loans offered to help them get through the Covid-19 crisis. Cinemas and restaurants can welcome up to 100 people, but they can take bookings for groups of no more than 10, while abiding by strict social distancing rules. From midday Friday, group sizes will increase from a maximum of 10 to 100, as part of revised gathering restrictions under alert level 2 – the change welcomed by religious groups and those involved in community sport. Until then, up to 50 people can attend tangi and funerals.”, extracted from a New Zealand government report on May 26, 2020 courtesy of Stewart Germann, Stewart Germann Law Office, Auckland
Panama
“Panama to relax coronavirus measures in second stage of re-opening; The Panama government said on Tuesday that in June it will start to relax some measures imposed to curb the spread of the novel coronavirus, permitting sectors such as construction, nonmetallic mining and pharmaceuticals to resume operations.”, Reuters, May 26, 2020
The Philippines
“Philippines capital emerges from lockdown into economic uncertainty, fears of second wave of infection. After 76 days of a coronavirus quarantine that shut down the Philippines’ economic heart and kept millions under virtual house arrest, Metro Manila will spring abruptly back to life on Monday with the easing of restrictions on transport and work. The change has been met with both relief and trepidation: businesses cheer the restarting of an economy on life support, but analysts worry that the rate of Covid-19 infection in the country is still too high and easing restrictions might lead to a spike in new cases.”, South China Morning Post, May 31, 2020
Poland
“Poland is still under lockdown due to the coronavirus, however the government consequently introduces new phases of its easing strategy launched in March (the restrictions have been gradually eased since late April). Since 30 May, under the new relaxed rules, Poles are no longer required to wear protection masks when outdoors in public places. On May 18 the government allowed consumer services, including hotels, food service, rehabilitation and beauty centers. The government maintained travel bans, school closures and a shutdown of Polish borders. Schools are expected to remain closed until the end of June when children also start the summer holidays, while borders will remain effectively closed until at least mid-June.”, Gabor Kaczmarczyk, Your Concierge, Budapest
Portugal
“Portugal to (Slightly) Delay Lisbon Malls Reopening as Virus Cases Increase: Malls in the area will remain closed until June 4, while they will reopen on June 1 in the rest of the country as planned, Prime Minister Antonio Costa said at a press conference on Friday. Portugal on Friday reported the biggest daily increase in coronavirus cases in three weeks due to new infections in the region”, Bloomberg, May 29, 2020
Saudi Arabia
“Saudi Arabia to end curfew on June 21, except in Mecca: state news agency
Saudi Arabia will revise curfew times this week, and lift it entirely across the Kingdom with the exception of the holy city of Mecca starting June 21, state news agency reported in a statement early on Tuesday.”, Reuters, May 25, 2020
Singapore
“If local virus transmission levels remain low and businesses put in place the necessary precautions, a second phase that includes the gradual resumption of social activities and dining out at eateries could start before the end of June, said Minister for National Development Lawrence Wong. The government will then render a decision after assessing the first two weeks of phase one, which begins June 2, Wong said at an online press conference on Thursday. Broadly speaking, phase two will entail the resumption of a wider range of activities and we expect almost the entire economy to reopen by the start of phase two,” he added. Higher-risk activities and venues such as religious congregations, large-scale events, bars and cinemas will require discussions with stakeholders and may not be able to start immediately. “We wanted to take a more cautious approach for activities in these areas to resume,” Wong said. In the second phase, households may be able to receive up to five visitors per day. Within hawker centers and restaurants, tables will have to be kept at least one meter apart and limited to no more than five people in phase two. Retail outlets, gyms and swimming pools and dining in at restaurants are included in the second phase, as are social activities and family gatherings in small groups.”, Bloomberg, May 28, 2020
South Korea
“More than 500 schools closed again Friday to students after briefly reopening, as South Korea moves to stamp out a resurgence of the coronavirus in the capital, Seoul, and its surrounding metropolitan area. Parks, art galleries, museums and theaters operated by the government in the Seoul metropolitan area — home to about half the country’s population of nearly 52 million — have also been closed to the public for the next two weeks. Government hosted events in the metropolitan area will be canceled or postponed as well, Health Minister Park Neung-hoo said Thursday. The authorities have recommended that private academies and internet cafes there close too until June 14.” CNN, May 29, 2020
“Bridging Culture Worldwide has announced the results of a targeted bilingual survey of how South Korean companies view opportunities for F&B growth and expansion in 2020 and 2021. The first of its kind survey was conducted by BCW and Tierra Advisors—both advocates, long engaged in South Korean business and market entry. BCW Founder and CEO Don Southerton noted, ‘The study was conducted to gauge the overall market mood and more specifically future F&B growth plans in response to the uncertainty and disruption of COVID-19.’ As background, BCW and Tierra point out that unlike most of the world, Korea appears to have reined in the outbreak without some of the strict lockdown strategies deployed by many other countries in the world. Still, the economy and businesses like restaurants and coffee shops have suffered. Although Korea never experienced mandated widespread closures, Koreans pro-actively stayed away from eateries and Starbucks. The restaurants did remain open, eagerly waiting for customers who seldom came. Fast forward, Korea’s everyday life today is now resembling something closer to normal. There are lines outside restaurants during lunchtime; malls are bustling, and the streets are busier. As a positive indicator, major Korean food brands like SPC have also recently announced plans to open new locations as well as add additional western fast-casual brands.
Sri Lanka
“Sri Lanka plans to reopen its tourism sector on Aug. 1 by allowing only small groups of visitors to begin with, a tourism official said on Sunday. A limited number of small groups from around the world would be allowed to visit from August and stay in approved five-star hotels that have put strict safety measures in place, Fernando told Reuters.
He confirmed that tourists will be required to carry a COVID-19-free certificate issued either by their governments or a reputed agency, as reported by the Sunday Times which quoted Sri Lanka’s Tourism Ministry Secretary S. Hettiaarachchi. Tourists would also need to wait on arrival at the airport for coronavirus testing.”, Reuters, May 31, 2020
Spain
“After ten weeks under one of the world’s strictest lockdowns Spain is opening up again. Residents of Madrid and Barcelona can this week meet socially as well as patronise non-essential shops and café terraces. Under the complicated three-stage deconfinement plan of Pedro Sánchez, the Socialist prime minister, much of the rest of the country is a step further on, with beaches and shopping centres opening. The relaxation reflects the virus’s retreat.”, The Economist, May 26, 2020
“The Spanish government has assured foreign tourists that they will not be forced to self-isolate for 14 days when the country throws open its doors to holidaymakers at the start of July. In an effort to urge visitors from abroad to plan a return to the country’s beaches, Arancha González Laya, the foreign minister, tweeted emojis of a bikini, sunglasses and a suitcase and the message: ‘In July we will gradually open Spain to international tourists, lift the quarantine, ensure the highest standards of health safety. We look forward to welcoming you!’ The news that quarantine measures would not apply followed an announcement on Sunday by Pedro Sánchez, the prime minister, that borders would reopen to foreign tourists in July.”, The Sunday Times, May 26, 2020
Thailand
“Many businesses in Thailand will re-open on June 1, including exhibition centers, amulet markets, massage parlors, childcare centers, fitness centers, sport complexes, beauty clinics, bowling alleys, dance halls, water sport centers, performance art and movie theaters, and zoos. The government still remains the curfew in place to prevent the drinking alcohol group but shortens the time to 11 pm – 3 am as the situation improved. So, I believe this re-opening period will help ease franchisees to be back on their businesses. However, each business has to provide hand sanitizer and practice social distancing in the store. There are some businesses that are still waiting to be reopened in the last phrase, in mid of June, including group steaming, bathing, and facial massages, and sport competitions. International air travel is allowed on June 30. Currently, only domestic flights are allowed to operate in Thailand.” Thanyathorn Voravongsatit (Nan), Commercial Specialist, U.S. Department of Commerce, Bangkok
“Thais took in a movie and enjoyed foot massages in a welcome return on Monday to some pampering and popular pastimes as coronavirus restrictions further eased and new infection numbers remained low. Shopping malls stayed open later, a curfew was shortened and more businesses reopened, among them fitness clubs, spas, traditional massage centres and cinemas.”, Reuters, June 1, 2020
United Kingdom
“Lockdown restrictions in the UK are being lifted gradually, but as you would expect there are those that think that the changes are too little and too slow – and others who think its too much, too quickly! One example which is a major issue for F&B brands is the requirement of 2m for social distancing – compared to 1m in a number of other countries – this has a huge impact on restaurant layouts, and potential revenue. Cleaning franchises are very popular currently!”, Iain Martin, QFP, International Franchise Consultant, The Franchising Centre, United Kingdom
“British stock markets soared this morning, with the retail sector leading the charge after Boris Johnson’s announcement last night. The prime minister confirmed that outdoor markets and car showrooms would be able to reopen next week and all other non-essential shops would follow suit on June 15.”, The Times of London, May 26, 2020
“760 reopenings this week for takeaway/delivery. The highest number of reopenings came from McDonald’s, followed by KFC UK & Ireland and Costa Coffee. New entries to the list include: Ottolenghi & NOPI & ROVI, Bewiched Coffee, Bar Douro and Brindisa Kitchens. Reopened sites to date account for 21% of the brands’ combined estates totalling 13,000 sites”, from a LinkedIn post by Peter Backman on May 28, 2020
“Wagamama aims to reopen 67 restaurants for deliveries by end of June: The pan-Asian restaurant chain launched a trial at five of its delivery kitchens earlier this month. It will reopen 24 sites this Thursday, with a further 20 reopening on Thursday May 28. The chain said it hopes to have 49 sites open for delivery by the start of June, with this expanding to 67 by the end of the month.” Belfast Telegraph, May 19, 2020
Articles on Moving Through and Past the COVIF-19 Crisis
Three game-changing ideas for our post-pandemic world, John Thornhill, The Financial Times, May 28, 2020
https://bit.ly/3GameChanginIdeas
“Coronavirus won’t kill globalisation – but a shakeup is inevitable”, new study by the World Economic Forum as reported by The Conversation on May 24, 2020 at this link:
https://bit.ly/ConversationGVCs
“Franchisor and Franchisee Crisis Management Post-CoV: The pandemic crisis of corona (Covid-19) has recently impacted the franchising industry in ways that have never been imagined and that brings up some very interesting questions that need to be answered by all companies in the franchising industry. How can franchisors and franchisees manage a crisis of this proportion?”, excellent article on managing businesses post COVID-19 by Sean Ngo, Co-Founder and CEO of VF Franchise Consulting, Ho Chi Minh City
https://bit.ly/VFCCOVIDCrisisMgmt
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 living experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries. EGS is also known for our extensive country, cultural and sector research and publications, including our quarterly GlobalVue™ country ranking chart.
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. 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.
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.
China and Global Supply Chain Update May 26, 2020
William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS), has been doing business in China for 38 years, starting with living in China from late 1982 through mid 1985. He has been the Master Franchisee for a U.S. franchise in China. EGS opened an office in Beijing in 2014 and we are currently helping four U.S. brands enter the Mainland China market. Our U.S. Clients are all consumer-faced franchise brands.
The following are extracts from a variety of information sources and our network inside China. This is bipartisan and does not reflect a point of view.
“China may become one of many hubs as companies diversify manufacturing after coronavirus shock: The coronavirus is ‘a wake-up call for pretty much every company,’ said Gerry Mattios, expert vice president at Bain. ‘The number one item on the agenda is, “how do I build resilience in my supply chain?’ ‘China is still a very attractive total supply chain solution,’ said How Jit Lim, a managing director with consulting firm Alvarez & Marsal. ‘There are very few countries in the world where you can find almost everything you need to build something.’” CNBC, May 25, 2020
“Coronavirus won’t kill globalisation – but a shakeup is inevitable: Globalisation relies on complex links – global value chains (GVCs) – that connect producers across multiple countries. These producers often use highly specialised intermediate goods, or “inputs”, produced by only one distant, overseas supplier. COVID-19 has severely disrupted these links…..But GVCs follow the principle of efficiency. They are the result of businesses sourcing the best possible inputs to meet their production needs at the lowest cost – wherever those inputs come from. This is good news for globalisation’s survival. While efficiency remains the main target, businesses will continue to shop globally.”, The Conversation, May 23,2020
https://bit.ly/ConversationGVCs
“European Luxury Is More Chinese Than Ever: Designer labels will need to contemplate a wave of European store closures as they become more dependent on China for sales. Chinese luxury consumers, who are almost two decades younger and less indebted than their Western counterparts, can afford to spend a larger chunk of their disposable income on designer baubles. Already there are signs of what stock analysts are calling “revenge spending” as lockdowns lift in Chinese cities and shoppers head to the mall. Consulting firm Bain estimates that by 2025, up to 49% of global luxury sales will be made to Chinese shoppers, an increase from the consulting firm’s earlier forecast of 46%.”, Wall Street Journal, May 22, 2020
https://bit.ly/EuropeanLuxuryChina
“Business travel showing signs of life in China: While the Chinese hotel industry saw a significant performance increase during the Labour Day holiday to start May, some urban markets saw continued demand after the holiday, fueled by a modest return for business travel. Business transient was also strong enough to maintain performance levels following the holiday in Shanghai, with occupancies hovering in the 30% range. While better than performance seen so far in 2020, it still lags well behind what was seen in previous years. ‘For perspective, midweek this time of year in a normal year (occupancy) is about 90%,’ said Jesper Palmqvist, area director for the Asia/Pacific region for STR.”, Hotel News Now, May 20, 2020
EGS Biweekly Global Business Newsletter
Issue 4, Monday, May 18, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“Worry is like a rocking chair: It gives you something to do but never gets you anywhere.” humorist Erma Bombeck.
“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.” Marie Curie
Introduction
The goal of this newsletter is to keep the reader up to date on the economic and business situation in key trading countries. 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.
Please send us your input and perspectives so that we can publish a balanced view about the world every other week. Our contact information is at the bottom of this newsletter. You may opt out from receiving this biweekly global business update at the bottom of this blog.
The Focus of This Issue
This issue focuses on what is happening in 28 countries that impact consumer spending. The three themes of this issue are the continuing reopening of businesses around the world, travel openings and restrictions and a new section at the end that has links to special reports from several global information sources such as McKinsey’s May 15th ‘Short List’ of global updates at this link:
https://bit.ly/May152020newletter
The Latest GlobalVue™ Country Ranking Charts
We just issued our first quarterly GlobalVue™ country ranking since the novel Coronavirus outbreak. We’ve added a dual ranking, which first ranks countries on all parameters and then ranks countries on how they are expected to emerge post pandemic. The GlobalVue™ country ranking chart has been issued quarterly since 2001.
https://bit.ly/EGSGlobalVue052020
International Travel Updates
“Countries and destinations are continuing to implement additional health screening maries at their borders, including temperature checks, COVID-19 tests, questions on itineraries and 14-day quarantine periods.” This includes Australia, Canada, China, Hong Kong, Ireland, Japan, Malaysia, Singapore, South Korea, Spain, Taiwan and the United Kingdom.” Lonely Planet, May 15, 2020.
https://apple.news/AGD9wpcNWQNadUjlTMchQzg
China, South Korea consult Japan on easing business-travel curbs: China and South Korea have consulted Japan about easing border controls on business travelers to help revive business activities, the Yomiuri newspaper reported on Sunday without citing sources.”, Reuters, May 20, 2020
“Disneyland Shanghai reopens in test case for recovery: Strong demand from Chinese consumers as park limits visitors to less than a third of capacity. Disneyland Shanghai has reopened to a limited number of visitors kept apart by strict social distancing rules, as the group searches for a global recovery blueprint. The resumption of business on Monday after three months of coronavirus-induced closure marks the first Disney park to attempt a comeback after closure due to the Covid-19 crisis. The success of the reopening will be closely monitored as a potential model for Disney’s other venues that span from California to Hong Kong, Paris to Tokyo, as well as for other large theme parks around the world.”, The Financial Times, May 11, 2020
Emirates is resuming flights to London, Frankfurt, Paris, Milan, Madrid, Chicago, Toronto, Sydney and Melbourne on May 21st
https://apple.news/A5sXdLD01RGW3zmWhrkpvQw
Very good news for global brands in airport locations: Lagardère, the global airport brand operator announce that it has reopened retail stores at Amsterdam Schiphol airport. They have also reopened 9 Relay stores in France. 16 Relay store have now reopened in Europe.
“Lufthansa plans 1,800 round trips a week by the end of June: German flagship carrier Lufthansa on Thursday said it would be offering 1,800 round trips a week to more than 130 destinations around the world by the end of June.”, Reuters, May 14, 2020
https://apple.news/AGUw7GMGDQPGyD_bR1tWxB
“Chinese carriers restart their engines: In the first week of May, a holiday in China, capacity was scheduled to be only 10% lower than in the same period a year ago, estimates the capa Centre for Aviation, a consultancy. In America, meanwhile, it was 73% lower. As Western rivals slash flights, China Eastern this month claimed the title of the world’s biggest airline by current seat capacity, according to oag, an aviation-data firm.” The Economist, May 7, 2020
“Summer Travel Europe: Many Countries Plan To Be Open” As European lockdowns start to lift across the continent and land borders reopen, tourism is set to rise from the COVID-19 ashes in time for summer holiday travel. Countries with similar corona infection levels plan to welcome tourists, guided by strict EU safety and hygiene recommendations.”, Forbes, May 14, 2020
https://apple.news/AFBZ4Dw08QDqRef0rub1nHg
“How the Coronavirus Pandemic Will Change the Way We Travel: Trips will return, but they won’t be the same.”, Architectural Digest, May 13, 2020.
https://apple.news/APuGJmbrVS3iNXqEmkKh2zA
“Ryanair is planning to reintroduce 1,000 flights a day by July 1, with passengers undergoing temperature checks at airports to combat the spread of coronavirus. Europe’s busiest airline said today that 40 per cent of its flight schedule would be restored within seven weeks, subject to government restrictions on travel across the Continent being lifted.”, The Times of London, May 12, 2020
“9 Aspects To Consider Before Traveling Overseas Again: While being grounded by the COVID-19 pandemic, this million-mile traveler considers what’s going to be needed before he will feel safe traveling again.”, Forbes, May 8, 2020
https://apple.news/A2BBJftP9SJWfvHFYeJVEoA
Argentina
“Argentina extends quarantine for capital, relaxes elsewhere: Argentina extended until May 24 a quarantine for its capital Buenos Aires but relaxed the restriction aimed at slowing the spread of the new coronavirus elsewhere in the country, President Alberto Fernandez said on Friday.”, Reuters, May 9, 2020
Australia
“The Federal government has unveiled a thee stage plan to ease COVID-19 social distancing restrictions over the next two months, with reviews to occur at three-week intervals to assess the plan’s progress, according to a media report. Each stage will open more facilities for business, pleasure, and recreation, and increases the number of people which may gather in one place provided COVID-19 protocols including 1.5-metre physical distancing and good hand hygiene are maintained. Employees will be encouraged to continue working from home if possible. Intra- and interstate travel restrictions will also be progressively eased, but international travel beyond New Zealand and some Pacific Islands is unlikely to resume anytime soon.” Jason Gehrke, Managing Director, Franchise Advisory Centre, Brisbane
“On 26 April 2020 the Australian Government launched the COVIDSafe app to assist with contact tracing of COVID-19 cases in the community. Since its release more than 5.3 million Australians have downloaded the app.”, MST Lawyers, mst.com.au
“Australia’s biggest beer drinkers prepare for the end of lockdown with 300,000 pints: Australia’s thirsty far north is preparing for the party of the decade as a convoy carrying 175,000 litres of beer — 300,000 pints — heads there for the reopening of pubs next week. The Northern Territory capital, Darwin, whose population of 132,000 are Australia’s biggest beer drinkers, is expected to be the first to emerge from the coronavirus lockdown. Michael Gunner, the territory’s chief minister, ordered his office to arrange a huge road convoy that is trucking beer the 1,600 miles from Adelaide to Darwin in readiness for the expected opening of pubs next week.”, The Times of London, May 8, 2020
Brazil
“Our president is allowing reopening flexibility, but not every city is making use of it. Today’s headlines say that contamination in our city, Belo Horizonte, is 10x slower than São Paulo due to social isolation.” Ursula Aleixo, Business Director, Fastdezine Team, Bello Horizonte
Cambodia
“Thailand’s CP Group will oversee the Cambodian debut of 7-Eleven convenience stores next year under a master franchise agreement with 7-Eleven Inc, the US subsidiary of 7-Eleven Japan Co. CP All Plc, the conglomerate’s SET-listed retail arm, has concluded a deal with the US firm to operate 7-Eleven stores through CP All (Cambodia) Co beginning in 2021. The first outlet will open in Phnom Penh, a spokeswoman for the Japanese retail group Seven & I Holdings Co said.”, Contributed by Paul Jones, Barrister, Solicitor & Trade-mark Agent, Jones & Co., Toronto, Ontario
Canada
For an excellent update on the status of the provincial reopening plans for restaurants, cafes and other food service establishments across Canada, please go to the link below for the Cassels Brock law firm update:
https://bit.ly/CBCanadaReopening
“McDonald’s will restart take-out services at 30 restaurants in Canada, weeks after shutting down all of its stores in the country due to the COVID-19 pandemic, the company’s Canadian unit said.”, Reuters, May 14, 2020
“Wage Subsidy extended to the end of August: The Canada Emergency Wage Subsidy program will be extended to the end of August. The program — which covers 75 per cent of an eligible company’s payroll, up to a maximum of $847 per week per employee — originally was set to expire next month. Companies that saw their revenues drop by 15 per cent in March or 30 per cent in April and May are eligible for the program.”, Canadian Franchise Association, May 15, 2020
Mainland China
“China’s 2020 economic growth target in focus as Beijing set to convene National People’s Congress: Speculation is mounting over whether China will announce a growth target for 2020 at its annual parliamentary gathering (this coming week), after the coronavirus outbreak delayed the event and lashed the economy.”, South China Morning Post, May 6, 2020
https://apple.news/AGwO8ki6xTXmADsRyAVPMhQ
“China starts exempting some foreign business executives from its coronavirus travel ban. It’s the latest sign that China is taking steps to reopen its borders for business.”, Fortune, May 12, 2020
https://apple.news/AVaEzrvVMR4yl4TTbUtf_aQ
“China’s recovery is on course: Despite external headwinds, UBS CIO expects China’s GDP growth to recover gradually from 2Q thanks to pent-up demand and stronger policy support. UBS CIO Global Wealth Management expects infrastructure investment to be the main growth driver from 2Q, buoyed by greater funding support from larger special local government bond issuance. In 1Q, up to CNY 1.08trn of special LGBs have been issued to fund qualified infrastructure projects, and the full-year quota could reach at least CNY 3trn.” UBS report compliments of Andrew Low, CEPA, CTFA, Senior Vice President – Wealth Management, Certified Exit Planning Advisor, UBS Financial Services, Inc
The global law firm, DLA Piper, recently released a very detailed China tax and legal slide update this past week which can be viewed and downloaded at the following link:
“McDonald’s China is hosting an online job-recruitment fair for the first time as the fast-food giant eyes the addition of 1,000 new locations over the next two years. A livestreaming job fair will be held today and aims to hire and train 1,700 additional store managers to oversee new outlets. A virtual tour of the quick service chain restaurant will also be offered for potential job applicants to learn about the company’s working environment. It operates 3,500 storefronts in China’s mainland as of February this year.” Also from Paul Jones, Barrister, Solicitor & Trade-mark Agent, Jones & Co., Toronto, Ontario
https://www.shine.cn/biz/company/2005158161/
“Fast-forward China: How COVID-19 is accelerating five key trends shaping the Chinese economy: Events expected to play out in the Chinese economy over the next several years have been compressed into a short few months. Over the last few months, COVID-19 has spread across the world, uniting humanity in a shared experience that has highlighted the vulnerability of our societies. As the first country to grapple with the crisis, China has been on the frontlines both of post-COVID-19 economic recovery, and of the societal changes the pandemic has precipitated.”, McKinsey Highlights, May 6, 2020
https://apple.news/AELPrgE6qPtyv8HFJOTWW7Q
Denmark
“Fast in, first out: Denmark leads lockdown exit: Four weeks after Denmark began easing its lockdown, Danes on Monday returned to cafes and restaurants, confident that the coronavirus outbreak is under control.”, Reuters, May 18, 2020
Dominican Republic
“An article in a DR publication which included an interview with the “Father of Tourism” in the DR – Frank Rainieri. Frank is the Founder & Chairman of Grupo Puntacana, which is the #1 tourist destination in the DR, and includes hotels, villas, residences, marinas, stores, restaurants, etc. Frank said he was optimistic about the recovery of the tourism sector in the DR and in the Caribbean overall. He noted just this week alone 21 different international airlines have contacted him requesting when they can resume flights into Punta Cana (Frank owns the private Punta Cana airport, which is the country’s busiest). He expects to resume the extensive operations of the Grupo in June. Source: “Mercado Daily” digital news publication for the DR, May 7, 2020. Bob Jones, Chief International Officer, Edwards Global Services, Inc.
Egypt
“IMF approves $2.77 billion in emergency pandemic aid for Egypt. The International Monetary Fund on Monday said its executive board approved $2.77 billion in emergency financing to help Egypt grapple with the new coronavirus pandemic that has brought tourism to a standstill and triggered major capital flight.”, Reuters, May 11, 2020
“Egypt extends nationwide nighttime curfew until end of Ramadan: Egypt extended a nationwide nighttime curfew until end of the holy month of Ramadan (May 23rd) to slow the spread of the new coronavirus, Prime Minister Mostafa Madbouly said on Thursday.”, Reuters, May 7, 2020
Germany
“Apple Stores in Germany next to begin reopening on May 11: Apple Stores in Germany will be among the next to reopen after extended closures in response to the coronavirus pandemic. Following reopenings across South Korea, Austria, and Australia in recent weeks, Germany’s 15 Apple Stores will all reopen on May 11 at 11:00 A.M. Germany hasn’t mitigated coronavirus infections to the extent of other regions.”, 9T05Mac, May 8, 2020
https://apple.news/ACT4rLu_eS1mLaD6LDy9V7w
“Germany to Reopen Most of Economy in Coming Weeks as Coronavirus Recedes: Germany announced a further phasing out of its lockdown, putting itself at the front of a group of large European countries feeling their way back toward economic normality after slowing the spread of the coronavirus.”, The Wall Street Journal, May 6, 2020
https://apple.news/AEHAv626wT9Oezv_eGP-nJw
Greece
“Greece reopened the Acropolis, museums and other major tourist attractions as the coronavirus lockdown eased in bright sunshine in Athens on Monday.”, Reuters, May 18, 2020
Hong Kong
On May 13, the global U.S.-based Snap Fitness® franchise group reopened its 6 Hong Kong gyms and announced the award of another franchise for Hong Kong.
“Hong Kong business travelers prioritised in economy relaunch once pandemic is defeated. Attracting business travelers will be the top priority when Hong Kong reopens its economy to the world as part of the city’s recovery from the coronavirus pandemic, the commerce minister has said.” South China Morning Post, May 14, 2020
India
“The current Lockdown will now end on May 31st. Some restrictions will be in place though. The Government has already opened offices and shops with restriction on number of people (Like 30-40%). Trains have started to run.”, Rajeev Manchanda, Inventure India, updated May 18, 2020
“Modi unveils $266bn stimulus package to revive Indian economy: The package is equivalent to about 10 per cent of India’s gross domestic product. “Coronavirus is going to be part of our lives for a long time, but we can’t let our lives revolve around it,” he said.”, The Financial Times, May 12, 2020
Italy
“Italy will welcome foreigners to save tourism industry: Italy will open its borders to European visitors on June 3 to lure back German holidaymakers and save its tourism industry despite the threat of another wave of contagion. It is the latest in a series of steps to roll back Italy’s lockdown, which was introduced on March 10 to quell an outbreak that has killed more than 31,000 people. “We’re facing a calculated risk, knowing that the epidemiological curve could rise again,” Giuseppe Conte, the prime minister, said.”, The Times of London, May 18, 2020
“Things are slowly coming back on-line. Restaurants & Bars are open for take-out and delivery, from the 18th they will be able to welcome customers as long as they stick to guidelines: ample space for social distancing, hygiene requirements and masks, plexiglass shields and behavior manuals for staff. Similar regs apply to other businesses where people work closely together; controls on building sites have also been increased. There are strict regulations on number of people present at any one time, how many people can travel together to work, disinfecting (2 times per day), masks worn at all times, social distances when working or using communal spaces. Anyone entering the site will have their temperature measured. All workers will need to follow a hygiene/guidelines course and all areas require appropriate signage. Schools will not be reopening before September. Under Phase 2, Italians are allowed to travel within the same region and visit relatives without showing special documentation, exercise outside, hold funerals with 15 or fewer attendees, and reopen bike and scooter shops to alleviate demand on public transportation.” Andrew Shearn, ADEA Group, Milan
Japan
“Japan Largely Lifts Coronavirus State of Emergency: Japan’s Prime Minister Shinzo Abe lifted a state of emergency in much of the country outside of the capital and credited voluntary restrictions for bringing down new coronavirus infections sharply, Wall Street Journal, May 14, 2020
Malaysia
“Malaysia on Sunday extended its conditional lockdown for a further four weeks to June 9.”, South China Morning Post, May 10, 2020
Mexico
“With the economy in freefall, the question facing Mexico’s central bankers is how much to cut interest rates. Analysts are expecting a reduction of half a percentage point, to 5.5%, a four-year low. That will do little to stem the bleeding. The peso is trading near an all-time low against the dollar. (Of 42 major, national economies tracked by the Economist Intelligence Unit, our sister company, Mexico is expected to fare the worst this year.).” The Economist, May 13, 2020.
https://apple.news/AlEF9C4q5S66fTCWz1RQLLA
New Zealand
May 13th was the first day at level 2 with all shops and restaurants open. Huge queues for haircuts. Malls are also open. Schools soon. Most people continue to work from home. Stewart Germann, Stewart Germann Law Office, Auckland Please go to this link for Stewart’s latest reopening advice:
https://bit.ly/StewartGermannNZReopening
Panama
“With a high increase in the number of COVID-19 cases, the situation in Panama is not good. Some restaurants are just delivering. Gyms are closed. Hopefully at the end of May we will see more businesses operating but with lots of restrictions.”, Jose Enrique Tellez, Business Consultant, Panama City
“Panama’s Copa Airlines expects to fly 40% of its usual flights by December: Panama’s Copa Airlines expects to resume 40% of its usual flights by December, the company said on Wednesday, the latest carrier to predict a slow recovery in traffic due to the coronavirus crisis.’, Reuters, May 6, 2020
Singapore
“Singapore partly reopens despite rise in cases: Singaporeans are able to get a haircut at the barber or pop in to their favorite bakery as the government loosened restrictions.”, ABC News, May 13, 2020
“Groomed but still grounded: Hairdressers reopen during Singapore lockdown: Long queues formed outside hairdressers in Singapore on Tuesday as the government eased some restrictions of a nationwide lockdown, although any styles beyond a trim would have to wait.”, Reuters, May 12, 2020
South Korea
“‘Smart Work’ and COVID-19 Transforming the Workplace in South Korea: In February and March government agencies and companies across South Korea opted to keep workers home in what can be seen as a mass experiment with the remote work system. One issue that did not hamper work from home was Korea’s Internet infrastructure robustness even as the demand for telecommuting solutions rapidly increased. As most of Korea has returned to working on-site, the big question remains open as to whether working remotely and adopting “smart work” systems will become an option and part of the new normal.”, Don Southerton, Branding In Asia, May 11, 2020
“South Korea’s Early Coronavirus Wins Dim After Rash of New Cases: South Korea, which largely succeeded in quelling the spread of the coronavirus, is back on the defensive, with Seoul’s bars and clubs ordered closed, as the country reported its biggest one-day increase in new infections in a month.”, Wall Street Journal, May 10, 2020
Spain
“Spain aims to reopen borders to tourism in late June: Tourism-dependent Spain aims to reopen borders to visitors around the end of June as its coronavirus lockdown fully unwinds, a minister said on Monday, in a much-needed boost for the ravaged travel sector.”, Reuters, May 18, 2020
https://apple.news/AnI2QxEozTlys8AbDn52jww
“From May 11, F&B places will be able to open for terrace service (with 50% occupancy reduction) and also will be allowed to continue with their home delivery and pick-up services. From last week, they have set 3 daily separate groups to go out of the house: 1) People over 14 till 69 yrs old doing sports or walking (6am to 10am and 20 to 23h); 2) Walking the kids under 14 (12 to 19h); and 3) over 70 yrs old (10-12am and 19 to 20h). From May 11, they will allow get togethers of a maximum 10 people. Unfortunately, no news about business travelling yet.”, Tarsicio Merin, CEO, Almanor International, Madrid
“Spain will require all arriving travelers to quarantine for 14 days: Traveling to Spain in the near-term will require a mandatory period in isolation. On May 12, Spain announced that it was set to impose a mandatory 14-day quarantine for international arrivals. Beginning May 15, Spain will require that all passengers arriving from international destinations self-quarantine for two weeks.” The Points Guy, May 12, 2020
Switzerland
“This week Switzerland became the first country in Europe to end restrictions on its hospitality sector — offering a peek, albeit through the lens of the wealthy alpine state’s relatively rarefied dining scene, of what future lies ahead for restaurants, cafés and bars in a post-Covid-19 world. Restarting the hospitality sector is a key priority for Bern as the country emerges from lockdown — a message the government has pushed hard this week. More than 260,000 people are employed in the hospitality sector. In many cantons, more people work in restaurants than in shops.”, Financial Times, May 14th, 2020
Thailand
“In Bangkok, street food and takeaway alcohol are back on the menu but nightlife stays on ice. Hair salons, restaurants and even street-food stalls in Bangkok’s Chinatown came back to life this week, albeit with social distancing in place, as Thailand eased its lockdown rules and an alcohol ban after making progress in controlling the spread of the virus.”, South China Morning Post, May 5, 2020
During a recent call with Stephen Anderson, Senior Commercial Officer, and Commercial Specialist Thanyathorn Voravongsatit at the U.S. Commercial Service post in Bangkok, they mentioned ‘Thailand 4.0’. This is the government program to go from Thailand 1.0 agriculture to Thailand 2.0 light industry to Thailand 3.0 heavy industry to Thailand 4.0 Prosperity, Security and Sustainability. You can download detailed information on Thailand 4.0 at this link:
https://thaiembdc.org/thailand-4-0-2/
Turkey
“Turkey’s reopening: malls before schools: Turkey has the ninth-highest number of confirmed covid-19 cases worldwide. But the country has managed to limit the spread of the virus over the past month and so is moving to ease its lockdown. The government has already lifted travel bans in some provinces. On May 10th the elderly, who were placed under a strict curfew at the start of the pandemic, were allowed to go out for a few hours for the first time in nearly two months. Everyone else was ordered to stay home.”, The Economist, May 10, 2020
United Arab Emirates
“Dubai businesses ask for more state help to survive coronavirus. Proposals include reduction of utility costs, customs duties and expats’ residency fees. Dubai’s private sector has proposed government interventions including state subsidised loans, assistance in covering salaries and lower taxes, to help businesses survive the fallout from coronavirus. Representatives of the Gulf hub’s family-owned business community called for the government to speed up payments to contractors and suppliers and to cut sales tax from 5 per cent to 2 per cent.” Financial Times, May 12, 2020
United Kingdom
“Rishi Sunak (UK Chancellor) has announced that the government’s wage-subsidy scheme will be extended until the end of October, but employers will have to help bear the cost. The chancellor announced that from August furloughed workers will be able to return to work part-time with their wages topped up by the government. The Treasury has decided not to cut the overall level of the wage subsidy scheme, which stands at 80 per cent of people’s wages up to £2,500 a month.”, The Times of London, May 12, 2020
“McDonald’s has announced plans to reopen a further 15 restaurants on May 20th which will offer drive-thru services. Each car will be limited to a £25 order and will be encouraged to pay by contactless payment methods.”, LAD Bible, May 12, 2020
https://apple.news/AgZ7OgIAGTGeR76oDKUWvJA
“Britain’s 5.8m small businesses are in the eye of the economic storm created by the coronavirus outbreak. Entrepreneurs pride themselves on resilience and adaptability, but the past two months have thrown up challenges few could have anticipated. The government has responded with support packages providing loans, grants and equity investments for businesses of all sizes. Under the job retention scheme, the state pays 80% of the wages of furloughed workers until the end of next month.”, The Times of London, May 9, 2020
https://apple.news/AgBhcD04WR-6ASsJYbPSTBQ
“No breakfast buffet and smartphones as keys: what London hotels will be like after lockdown: Guests arriving at London’s top hotels famed for their warm welcomes are likely to have to check in online in advance and go straight to their rooms unaccompanied to help keep face-to face contact to a minimum once they reopen after lockdown.”, The Evening Standard, May 7, 2020
Vietnam
“International tourists will come (to Vietnam) but clearly in much less numbers than before. Most if not all international flights are not allowed still though this may open up in the next few weeks hopefully. The main issue is where the planes go to and come from as some countries have been hit hard and Vietnam will limit or not allow flights to/from those countries. When international flights are allowed into Vietnam, it will come with extensive testing at the airports and also 14 day quarantines for some that come from specific countries (at this point do not know who they will require quarantining). Countries like the US, UK, Italy, and Spain are likely going to require some sort of quarantining if allowed to come for the foreseeable future and until these countries can get a handle on the coronavirus.”, Sean Ngo, CEO and Co-Founder, VF Franchise Consulting, Ho Chi Minh Coty
Articles on Moving Through the COVIF-19 Times
One of the most important things that people and businesses can be doing these days is maintaining relationships around the world through calls, video conferences and email messages. We like the article by Ernesto Zuniga with the Avantiis Group at the following link on the value of global relationships:
https://bit.ly/GlobalRelationships
Recently the International Monetary Fund (IMF) published their 2020 and 2021 Gross Domestic Product (GDP) growth projections for the world in the form of two interactive maps which you can access at the link below. 2020 is not good, of course. But 2021 is projected to show high GDP growth across almost all countries.
“The Great Unwinding: Covid-19 and the regionalisation of global supply chains: A report by The Economist Intelligence Unit The coronavirus pandemic will fundamentally reshape trade, accelerating the trend towards shortening supply chains. For many multinationals, regional supply chains offer resilience and the flexibility to shift production of key components from one location to another, making it a trend that is likely to endure post-pandemic. In a world of increasing uncertainty the pandemic also raises questions around the storage of final goods and critical components”. Download this important report at this link:
https://pages.eiu.com/May-20-Businesses-and-Covid19-registration-page.html
“The world’s food system has so far weathered the challenge of covid-19.” The report at the link below is a comprehensive look at how the world’s food supply chain is performing during the COVID-19 crisis.
https://bit.ly/FoodSupplyReport
“Charting the path to the next normal: A daily chart that helps explain a changing world—during the pandemic and beyond.”, McKinsey
In Summary
There is progress in reopening business in the Asia Pacific and in Europe. The Americas and the Middle East remain largely closed down. Air travel will continue to be problematic for the next couple of months at least.
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 living experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries. EGS is also known for our extensive country, cultural and sector research and publications, including the quarterly GlobalVue™ country ranking chart.
Find out more about the services we provide at: www.edwardsglobal.com
William Edwards is an executive with 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. 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.
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.
Asia Biweekly Business Update Blog – 4/27/2020
(This is an update of our March 9, 2020 China Blog which now will cover Asia)
Bill Edwards, CEO of Edwards Global Services, Inc. (EGS), has been doing business in China for 45 years, including living in China, Hong Kong and Indonesia. EGS is currently helping U.S. brands enter Cambodia, Mainland China, Hong Kong, Indonesia, Korea, the Philippines and Thailand. Our U.S. Clients are all consumer-faced franchise brands.
The following are extracts from a variety of information sources and our Associates across Asia on consumer-focused issues during the COVID emergency.
Introduction
Mainland China and South Korea are seeing businesses starting to reopen. Singapore and Malaysia remain shut down. Indonesia and the Philippines are allowing restaurants to do takeaway and delivery only. Japan is mixed. Vietnam has done a good job controlling the virus and will soon allow businesses to reopen. Thailand will start reopening the week of May 4th. Ramadan, which lasts until May 23rd, is a challenge for businesses in Indonesia and Malaysia.
Asia General
“From coffee in Hong Kong to burgers in Malaysia and Ramadan in Singapore – here’s how Asia’s small businesses cope with Covid-19. Asia’s SMEs are rising to the challenges posed by the coronavirus by adapting their business models and focusing on the positives. Here are five case studies, taken from across the region, of how SMEs are adapting to the challenges posed by Covid-19 – and proving that even the smallest of businesses can have the biggest of hearts.” South China Morning Post, 4/25/2020
“In Indonesia, the world’s most populous Muslim country, hundreds of millions are unable to congregate during the holy month of Ramadan. Muslims in neighbouring Singapore and Malaysia are also having a more solemn Ramadan as Covid-19 social distancing rules are enforced.” South China Morning Post, April 24, 2020
https://bit.ly/MelancholyRamadan
Mainland China
“Co-founder of Microsoft Bill Gates announced that stores of the company in China had resumed their operations that may be a concrete example of how society may return to ‘business as usual.’ Microsoft already sent thousands of its workers back to China, where they would resume their posts and comply with precautionary measures to prevent the spread of the pandemic.” Business Times, April 24th, 2020
AmCham China has released the results of a second Flash Survey that evaluates the impact of the COVID-19 outbreak on its member companies. Almost 120 companies responded to the survey. Roughly half of the surveyed members say they are experiencing significant revenue declines, compared with 28% last month. 39% of companies report a drop in demand for their products, up 6 percentage points from last month. 60% (up 10 percentage points month-on-month) said 2020 revenues will decline anywhere between 10% and 50% or more if business cannot return to normal before August 30. Read the full AmCham China Quarterly report at this link:
https://bit.ly/AmChamChinaQuarterly
Indonesia
“Indonesia to ban air, sea travel to end-May: officials. Indonesia will temporarily ban domestic and international air and sea travel, with some exceptions, starting this week to prevent a further spread of the coronavirus, the transport ministry said in a statement on Friday. The announcement came as the holy month of Ramadan began in the world’s largest Muslim majority country, and the government has already banned citizens’ traditional annual exodus from the cities to the provinces during the holiday period.” Reuters, April 23, 2020
“With most schools and universities in Jakarta (Indonesia) shut down even before official rules on social distancing went into effect, the transition has been sudden and uncertain for many. With Large Scale Physical Distancing extended in Jakarta until at least May 22, schools will continue to function online. AmCham (Indonesia) held a special forum on the situation on Thursday, April 23, to look at the challenges for schools, students and parents.” Learn more about the conference findings at this link:
https://bit.ly/AmChamIndonesiaSchools
Japan
“In recent weeks, the number of covid-19 cases has increased, and Prime Minister Shinzo Abe has called for an 80 percent reduction in person-to-person contact. Yet, some pachinko parlors refuse to close. Earlier this month, Tokyo Governor Yuriko Koike included pachinko parlors, along with bars and clubs, in the establishments she was requesting shut down to reduce the spread of the novel coronavirus. Many pachinko parlors followed the request, but some did not.” Kotaru, April 23, 2020. See pictures the lack of social distancing at this link:
“Japan’s new economic stimulus package in response to the coronavirus pandemic is estimated to boost real gross domestic product by about 4.4%, Economy Minister Yasutoshi Nishimura said on Friday. Japan has boosted its new economic stimulus package to a record $1.1 trillion to expand cash payouts to its citizens, as the fallout from the coronavirus pandemic threatens to push the world’s third-largest economy deeper into recession.: Reuters, April 23, 2020
Malaysia
Malaysia has one of the highest COVID cases and death counts in Asia. Essentially all business is closed. A major challenge for the Ramadan period.
“The (Malaysian) Prime Minister announced that the MCO (movement control order) which was first imposed on March 18 to 31 and later continued with a second phase from April 1 to 14, and a third phase from April 15 to 28 – would be on for a further two weeks. The government, said the Prime Minister, was considering allowing more specified sectors and sub-sectors to resume operations but subject to strict conditions to ensure the people’s health and safety.” The Star, April 23, 2020
https://bit.ly/MalaysiaShutDownExtended
Philippines
In the Philippines, the almost total business lock down is slightly easing. Some Chili’s® and Denny’s® restaurants have reopened for takeaway and delivery. But local sources say the Manila government has issued passes, only one selected member of each household is permitted to go out for food, groceries and to pharmacies.
“The coronavirus outbreak will likely send the Philippine economy into its first annual contraction in more than two decades this year, before it pulls back up for a U-shaped recovery in 2021, the central bank governor said on Saturday. Key cities in the Philippines, among the fastest growing economies in Asia during the pre-pandemic period, are under strict quarantine measures since mid-March. Philippine gross domestic product would likely shrink by 0.2% in 2020 before bouncing back to about 7.7% as policy support measures gain traction, central bank Governor Benjamin Diokno said in a statement.” Reuters, April 25, 2020
Singapore
Singapore has been under a partial lockdown since April 7 that may be extended past May 4 due to the recent jump in coronavirus cases in migrant workers. Many businesses, especially F&B, are suffering and may have to close for business due to the Covid-19 pandemic. The Singapore government has come out with a S$60 billion (US$40+ billion) budget to help businesses, employers, employees, & citizens.
South Korea
Churches, bars, gyms, restaurants are starting to reopen. Travel is not doing well. 400 McDonald’s are open for drive through. From 900 new COVID cases on February 29th, there were 8 new cases on April 23rd. “Amid the rapid changes caused by COVID-19, there is optimistic recovery progress of American businesses in Korea. Many companies are adapting quickly and finding success in unexpected ways amid these times of uncertainty.” James Kim, Chairman and CEO of AmCham Korea. This link is to a CNBC interview with Mr. Kim:
https://www.youtube.com/watch?v=0l3oVv2wJYo&t=2s
Early in the coronavirus timeline, Korea created an app that kept track of infected people. It prohibited large gatherings and required virtual church services. Key was wide spread testing. They even had an election.
Thailand
AMCHAM Thailand had a Video Conference on April 22. Here are some of takeaways: The ban on sale of alcohol beverages has been extended until the end of the month (April 30) to discourage further social gatherings. All foreigners have been granted automatic visa extension for another 3 months until July 31. It is estimated that Thailand will end the year with just over 16 million international tourists, far below the 40 million goal. However, they have stated that tourism activities in Thailand could resume as early as May. AmCham Thailand members remain vastly positive toward the measures taken by the Thai government to curb the spread of Covid-19. See the full results are the link below:
Although the number of new COVID-19 cases in Thailand had a sharp drop to 15 cases on 26 April 2020, the state of emergency is extended another month to end on May 31, 2020. The Centre for Covid-19 Situation Administration (CCSA) issued the guideline of the preparation to reopen the businesses under the Covid-19 situation. High-risk business such as bars, pubs, entertainment venues will remain closed. Medium-risk business such as barber shops, spa, restaurants, department stores and shopping malls would be allowed to reopen gradually. All airports in Thailand are expected to resume their services on the 1st of May after they have closed temporary for a month.
The Thai Cabinet approved a stimulus package for soft loans to help businesses. For example, a 6-month debt moratorium on principal and interest for SMEs. “Seth” Sethaphong Phadungpisuth, CFE, Managing Director of Gnosis Company Limited, Thailand.
Vietnam
Sean Ngo, CEO of VF Franchise Consulting based in Ho Chi Minh City, reports on LinkedIn that Vietnam will be one of the first, if not the first country, in Southeast Asia to cautiously lift the lockdown. Social distancing, temperature checks at businesses, and better hygiene practices will not change. See the full US News report at the following link:
In Summary
We keep our thumb on pulse of the Asia business market, monitoring daily changes and trends, and have insight on how you can protect and grow your brand in this critical market. We will update this Asia business climate blog about every other week.
Feel free to reach out to Bill Edwards, CEO of Edwards Global Services, Inc., (EGS) to ask questions or share best practices at +1 949 375 1896 or bedwards@edwardsglobal.com.
“It is not the strongest or the most intelligent who will survive but those who can best manage change”. Darwin
