Hong Kong, Singapore bubble delay highlights hurdles to travel recovery

By Aradhana Aravindan and John Geddie

 

FILE PHOTO: Cathay Pacific employees, wearing masks against COVID-19, are seen behind counters with glass dividers at Hong Kong International Airport, China October 20, 2020. REUTERS/Lam Yik

 

SINGAPORE (Reuters) - A delay to Asia's first travel bubble between Hong Kong and Singapore has hit the shares of their flag carriers and highlighted the challenges facing the global travel industry as it tries to rebound from the pandemic.

 

The arrangement was postponed on Saturday, one day before it was due to launch, after Hong Kong reported a jump in coronavirus cases. Authorities and aviation experts have said the bubble would provide a blueprint for quarantine-free travel before a vaccine is widely available.

 

"There is no doubt that there are many challenges around it," said Singapore hotelier Marcus Hanna, who had taken bookings from Hong Kong tourists and hopes for similar arrangements with major markets like mainland China and Australia early next year.

 

"Let's hope that things improve in Hong Kong ... many countries would have been looking to see how it goes," said Hanna, general manager of Fairmont Singapore and Swissotel The Stamford.

 

Shares of Cathay Pacific fell as much as 6.6% in early Asian trade on Monday, their biggest intraday fall since Aug. 10, before paring some losses to trade 5% lower. Singapore Airlines shares traded 1% lower in a positive local market.

 

The two airlines have been harder hit by the pandemic than their global peers as they do not have domestic routes to fall back on.

 

The bubble would have only brought incremental traffic into both cities. But Jefferies analyst Andrew Lee, who covers Cathay Pacific, said for Hong Kong it could serve as a template that could be extended to 10 other countries next year.

 

Singapore and Hong Kong also set cautious conditions for the bubble, including a suspension if the seven-day moving average of the daily number of unlinked COVID-19 cases exceeded five in either place.

 

A mooted travel bubble between New Zealand and Australia has also failed to take off, while Europe's Baltic countries of Lithuania, Latvia and Estonia created a short-lived travel bubble in May that burst in September.

 

"It is important to not let this kill any momentum to open up safely in Asia," Brendan Sobie, an independent aviation analyst, said of the Singapore-Hong Kong setback. "It is hard to get things aligned given the various spikes."

 

-- © Copyright Reuters 2020-11-23

 

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the obvious answer is for a cert/pass when ones vaccinated then travel and leisure starts again,it may be unpalatable for some people but thats the reality of govt in many areas of the world.i just wish to leave go back to work ,earn a living at last.visit my family and girlfriend as they cant come here,weve been separated and i cant go there.its been difficult for everyone but a night mare for some.