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In Conversation With Berislav Čižmek, CEO CBBS - Management Consulting & Business Building Company

Weekly hotel occupancy rates in China were at 55 per cent in late July and at 48 per cent in the US, but STR is reporng other regions at barely 20 per cent. While hotels in the US tend to rely more on MICE business, the leisure market is more dominant in Asia Pacific. Without this group business, recovery in the US will plateau.

There are 87 countries currently managing large-scale travel. If they do so without a significant rise in cases, it will go a long way towards creang the consumer confidence needed for a genuine recovery. Conversely, a spike in cases risks a major setback. Corporate travel recovery has begun in some markets, but many small meengs will not return from the virtual plaorms adopted during the lockdown. Instead, hotel

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Rod Kamleshwaran, Partner and COO, GainingEdge

recovery would be led by nonluxury categories, with domesc leisure peaking on weekends.

MICE sector recovery will be led by domesc events with safety protocols with social distancing easier to operate at exhibions as opposed to conferences. Mainland China, Korea, Taiwan and Germany are leading the return of large-scale events with exhibions and government events.

Many events have turned to virtual or hybrid formats for the short term. The importance of digisaon and flexibility of venues has escalated, while mul-locaon events that form a larger online global event are growing. This appeals in the transion phase as aendees lack confidence for travel and large gatherings.

The ‘New Normal’

There is a strong relaonship between the unemployment rate and hotel demand. At some point consumer behaviour will depend on economic, not health factors. Aer borders are wide open and consumer confidence in safe travel has returned, economics will influence hotel demand.

Rod leads the Convenon and Exhibion Centre Development advisory team at GainingEdge, a specialist consulng firm.

His experse is in the development and asset management of hospitality assets – convenon & exhibion centres, arenas, hotels, and casino integrated resorts. Rod is a highly regarded specialist for mixeduse developments. He has advised government and private sector clients on projects with a compleon value exceeding US$ 20 billion.

Rod has over 20 years of experience in this industry starng with PwC where he was involved in hotel feasibility studies. Significant shis in the MICE industry are underway. In-person interacon remains powerful, but it’s unlikely to be replaced by virtual events in a dominant way. Inperson events are aracve for commercial and networking purposes, and most will return this way, but a high poron will be hybrid events.

Venue offers will include in-person, hybrid or virtual opons with enhanced technology infrastructure and flexible rooms. Virtual tours of venues will be the norm with meeng and event soware improving rapidly. Contactless operaons beyond check-in are also here to stay.

When a New Normal without Covid-19 begins is unclear. Even aer a vaccine is found, it may take a year or more before worldwide vaccinaon and the confidence for mass travel returns.

So a consensus is emerging that the world has to figure out how to live with Covid. Are we leng our high hopes for a vaccine deter us from finding soluons for an earlier return to some normality? People in the MICE sector have to ask whether we can do more right now, knowing the risks of second waves of infecons and re-imposion of lockdowns.

Later, at IHG he was involved in the development and asset management of hotels and venues. Rod has been at GaningEdge since 2013. He has been a speaker at UFI, ICCA & other industry events. With experience advising clients on 5 connents he brings a uniquely global perspecve.

Some of his past projects include Singapore, Tokyo, Kuala Lumpur, Colombo, Christchurch, Melbourne, Oslo, Cyprus, Bologna, Tbilisi, Los Cabos, Nairobi, and Jordan. He is currently advising mixed-use projects in Hong Kong, Japan and Thailand.

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