Vaccination needs to take center stage for a smooth Industry recovery
Due to the Covid-19 pandemic, Asset management Industry has been facing several issues in finance, liquidity, operations and supply chain.
According to the latest tourism data from World Tourism Organisation (UNWTO), with the global tourism arrival levels falling by more than 70 per cent, the industry has plummeted to levels last witnessed in the 1990s.
Among the most affected by the pandemic, Asset owners continue to bleed money. They have invested millions of dollars into building their dream projects and the situation continues to remain bad, and constant lockdowns and restrictions hamper any real chance for recovery. The expenses they have to meet towards property maintenance and staff salaries continue to make a dent in their pockets, with zero revenues to compensate.
Prospects for 2021
Amidst this situation, how do asset owners view the prospects for 2021, and what are their thoughts on holding on?
Adeeb Ahamed, Managing Director of Twenty14 Holdings, commented, “2021 will see the hospitality sector retain its status quo, with little new to offer, unless the situation improves drastically. Continuous lockdowns and uncertainty around border rules make it impossible for people to plan travel itineraries in advance. In this situation, international tourism will be most impacted, with traditional tourist-centric destinations taking longer to attract the kind of crowds they witnessed in the past.”
Feeling of safety
“People seek new experiences daily and travel offers this in a holistic way. There is for sure a pent-up demand in the market, and once people get a feeling of safety, we will witness a resurgence in the sector, including the opening up of new properties. The mass rollout and adoption of a vaccine will be critical to how fast we can witness this revival,” Ahamed said.
He further added that as asset owners they are using this period to assess their properties and closely monitor the changing trends of global travellers and make sound future investments based on these evolving patterns. “As asset owners, we invest for the long-term and remain bullish about the future.”
Opportunity in darkness
Ahamed also believes that the present situation is an opportunity of sorts for asset owners, who may want to place their bets on the increasing number of distressed properties up for sale in the market. “This is advantageous for asset owners, who view this sector for the potential it offers in the long-term. As for us, we continue to follow our core mission to create a balanced portfolio offering curated experiences for customers and maximum returns for investors,” he explained.
Staying positive about the sector’s future, he concluded, “The hospitality and travel market will eventually come out stronger. It is just a matter of when, and not if.”
Twenty14 Holdings is the hospitality investment arm of LuLu Group International. The company has already acquired a number of prestigious properties, spread across the UK, Europe, GCC, and India.
Around The World