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Quest Means Business
LATAM, Latin America's Biggest Airline Goes Bankrupt; Finnair Secures More Than $650 Million in Rescue Loans; Macau's Casino Magnate Stanley Ho Dies Aged 98. Aired 3-4p ET
Aired May 26, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:31]
RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS: A very good evening to you. I'm Richard Quest coming from New York on a spectacularly
beautiful late spring day here in New York.
It's the perfect day for us to be not only outdoors in one of the world's leading tourist destinations for our special edition tonight of QUEST MEANS
BUSINESS, tourism in crisis, and we're looking at the tourism and travel industry, which as you know, we look at so often on this program, a vitally
important part of QUEST MEANS BUSINESS because of the significance to the global economy.
And now, of course, tourism has to make difficult and hard decisions around reopening, whether it's the Caribbean, the European Mediterranean beaches,
the long-haul destinations in Asia.
Tonight, countries dependent on tourism for survival will be talking to us and we look at the restrictions in place.
So, where do we stand? Well, the European Commission wants external borders closed until mid-June. That seems to be the date everyone is looking at,
mid-June. Also Schengen Zone countries are opening earlier.
Travel from Europe to the U.S. is blocked and vice-versa. For example, U.S. has suspended entry as of tonight from Brazil.
Nonessential border travel with Mexico and Canada to the U.S., NAFTA travel is blocked and banned.
And in Asia, Japan's ban foreign travelers will now expand to 11 countries. While in Hong Kong, most non-residents are not allowed.
We start with that over picture, because as long as the quarantines are in place, it begs the question why bother opening your tourism industry?
Well, as you'll hear tonight, domestic tourism promises to be the savior of the industry in many countries.
And so, Europe is now preparing for the next step in relaxing the lockdown. In Greece, cafes have been reopened, social distancing is involved. The
island ferries and the hotels are soon to follow.
Spain has set the date for tourists to return, July the 1st. Spain, July the 1st. The Prime Minister said it's vital for tourists to return safely.
(BEGIN VIDEO CLIP)
PEDRO SANCHEZ, SPANISH PRIME MINISTER (through translator): Spain needs tourism and tourism needs safety. Safety in origin and in destination.
Therefore, we will guarantee that tourists won't take any risks and they won't be of any risks for our country.
(END VIDEO CLIP)
QUEST: Think about it. For Spain, it's more than just your holiday that's at stake, the economy, too. Jobs -- 15 E.U. member states have roughly 10
percent, I think it's higher, but the official number is 10 percent tied to employment and tourism that is at risk.
Portugal, Greece, Croatia and Cypress, each 20 percent employment. The WTTC says 100 million tourism jobs lost this year, five times greater than the
financial crisis. Atika Shubert is in Majorca, Spain preparing to reopen.
(BEGIN VIDEOTAPE)
ATIKA SHUBERT, JOURNALIST (voice over): German golfers on Spanish greens, more than four million German visitors come here to Majorca every year.
Tourism is the bedrock of Majorca's economy and officials say 97 percent of the island's tourism relies on visitors from Europe, particularly Germans.
But like so many holiday destinations, the pandemic threatens to destroy Majorca's summer season. Even if travel restrictions are eased, says course
owner, Dirk Duenkler.
(BEGIN VIDEO CLIP)
DIRK DUENKLER, OWNER GOLF DE ANDRATX: The fear is there and people stay -- the other day I was talking to a couple which are members in our club and
they said to me, well, we would like to go -- we want to go on holidays, but we prefer to go to a place where we can get by car, because when
something happens we just take our car and we drive home.
(END VIDEO CLIP)
SHUBERT (voice over): COVID-19 has killed nearly 30,000 in Spain, but mostly in the big cities of Madrid and Barcelona. Majorca is relatively
unscathed with far fewer infections.
[15:05:10]
SHUBERT (voice over): Restrictions are easing up and in coronavirus terms, the island is similar, in fact, to the low infection rates in Germany.
SHUBERT (on camera): Majorca is the second homes for many Germans. Celebrities, including supermodel Claudia Schiffer has her villa on this
side of the island, and in fact, more than a hundred German holiday homeowners have demanded the right to return here, but is there a way to do
that safely?
SHUBERT (voice over): Yes, says Miquel Oliu Barton, co-author of a new proposal that he says would work in the E.U. and beyond.
(BEGIN VIDEO CLIP)
MIQUEL OLIU BARTON, ASSOCIATE PROFESSOR, PARIS-DAUPHINE UNIVERSITY: We all like beautiful beaches, but we all want to be safe if there is a cluster of
infections, just a new outbreak while we're having our vacation at the beach.
(END VIDEO CLIP)
SHUBERT (voice over): Here is what that might look like. Verified green zones that have the virus under control would allow free travel between
them.
A Bavarian visitors could fly directly to Majorca, even if international borders are closed. Testing and tracing, hospital capacity and other strict
criteria would need to be E.U. certified and countries have to prove they can keep green zones safe and isolated from red zones where the virus may
still be spreading.
Tourism official Rosana Morillo hopes the plan will work.
(BEGIN VIDEO CLIP)
TOURISM MORILLO, BALEARIC ISLANDS DIRECTOR GENERAL FOR TOURISM: If we receive tourists that are in the same situation as we are, we think it's
safe for us and it is safe for them.
(END VIDEO CLIP)
SHUBERT (voice over); Beaches across Spain are keen to show they can ensure visitor safety, devising apps to book blanket space on the beach,
laying sand grits to enforce social distancing.
Travel restrictions are still in effect, however, until the plan is approved, the beaches will have to wait a little longer.
Atika Shubert, CNN, Majorca, Spain.
(END VIDEOTAPE)
QUEST: Let's go to Greece which is also reopening. It's got its Restart Tourism, a comprehensive package, which is designed practical grounds to
reopen tourism.
Harry Theoharis is the Greek Tourism Minister, he joins me now. Harry, I am looking at the schedule. First of all, thank you as always, for coming on
the program.
Looking at the proposal that you've put forward, you're wanting to do, for instance -- on Monday, yachting restrictions were lifted; on June 1st, camp
sites will be lifted. Then you move forward to the time we get to July the 15th, the gradual lifting of all restrictions. How do you expect it will
all go?
HARRY THEOHARIS, GREEK TOURISM MINISTER: Well, it's always a pleasure, Richard, to be here. Thanks for the invite. Of course, we continue in the
same vein, but we -- as up to now. We lift gradually the internal restrictions, cafes, as you mentioned. Ferries have already started
operating, albeit at 50 percent capacity, and we're removing restrictions in schools, et cetera.
The same thing applies with internal tourism, yachting, camping and for hotels, and then finally everything will be open.
And on the 15th of June, we're starting the gradual lifting of the external border restrictions, so we will start with two main airports in Athens and
Thessaloniki from 15th of June in a restricted list of countries, and finally, most of the countries in all of our airports from July 1st.
QUEST: Now, we showed you a second ago. Let's show it again. Just bearing in mind what you've said, as you're preparing, so you have these air
bridges which are somewhat important, from approved countries and how these will take effect.
Now, these are the bilateral travel links that will allow the free flow of passengers from countries like Spain, the U.K., Germany are considered.
Those coming from the air bridges could avoid mandatory 14-day self- quarantine. Is this wise?
Because I noticed as part of your plan, you have no mandatory testing and no mandatory quarantining from those passengers arriving.
THEOHARIS: Well, you know, Richard that from day one, our Prime Minister and the whole of the government asked the health experts to guide us
through this process. This is what we're still doing.
So, the Restart Tourism plan is comprehensive in what it does and through the guidance of those health experts, we have a full plan on ensuring that
there is risk-free traveling.
So, what that means? That means, A, that we use -- we only allow from specific countries that our health experts tell us that we should allow,
because that limits the risk.
Number two, we do comprehensive, but random tests to ensure that we monitor the situation.
[15:10:10]
THEOHARIS: Number three, we put resources in the places where tourists are so that our health system can cope with any eventuality.
And number four, we have very strict hygienic protocols on the operation of every step of the way, traveling, hotels, et cetera, yachting to ensure
that there is no spread of the disease.
QUEST: Okay. Those are great policies if they are executed and work. However, the country has done such a good job with all these -- with the
crisis so far. Are you not risking that? Because basically the way you're opening up shows that your main plan is social distancing and testing.
THEOHARIS: Well, I think what is the recipe of our success? Three parts, if you like. The decisiveness of the Prime Minister who took the difficult
decisions early on, the effectiveness of the rest of the government and of the public sector, the frontline people that had the task of dealing with
the situation, and the responsibility of the people to ensure that we all adhere to the rules.
Now, those three elements will be there from the next phase as well. So, this is not just about the past. This is about the future.
The way that we've proven that we respect the health of our people, the same way we'll continue doing so. So, we will have cooperation from the
hotels and every part, every component in the system will work to ensure the health of our citizens and of the travelers.
QUEST: Minister, thank you. We'll talk again as the summer goes on. As your suntan gets better, we will keep talking.
THEOHARIS: And you have the invitation, don't forget that invitation, Richard.
QUEST: Well, yes, as soon as one can in terms of quarantines and restrictions, I promise you, we will. Thank you. Good to have you.
THEOHARIS: Thank you.
QUEST: When you finally get to your destination, you have to have somewhere to stay. The hotels may be closed to ordinary guests at the
moment, but they have been busy over the coronavirus pandemic.
We'll hear from the CEOs of Four Seasons and Best Western. Two sides of the argument after the break.
It is our holiday special on QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[15:15:14]
QUEST: Welcome back to QUEST MEANS BUSINESS with our holiday special. Now, we're down town here in Manhattan, but a few dozen blocks north towards
Midtown and you have the Four Seasons Hotel in New York. It's one of the world's most expensive hotels.
At the moment, it has no checked-in guests as such. There's a very different type of guest for the Four Seasons at the moment.
(BEGIN VIDEOTAPE)
QUEST (voice over): No buffets, no mini bars, no frenetic power lunches. In this unprecedented crisis, hospitality is being reinvented. COVID-19 has
changed everything.
On Manhattan's billionaire's row, we now find a barracks for those fighting on the front lines.
QUEST (on camera): The Four Seasons is one of New York's poshest hotels in midtown Manhattan on 57th Street.
The hotel is closed, of course, to the general public. Instead, half of it is being used to house medical staff. The art deco details are here. That's
just about the only thing that hasn't changed.
The grand foyer is closed as part of a plan designed in consultation with doctors at Johns Hopkins.
QUEST (on camera): Mask on, as I'm now meeting other people.
QUEST (voice over): There's an alternate entrance where I'm greeted not by a concierge or a porter, rather a nurse in PPE.
A temperature check, a few medical questions, and the ubiquitous hand sanitizer. Only then am I admitted to the green zone and follow the arrows.
Near a makeshift front desk, fine dining and room service has been swapped for bottled water and boxed meals.
RUDY TAUSCHER, GENERAL MANAGER, FOUR SEASONS HOTEL, NEW YORK: Difficult for us right now. Service is in our DNA. We love to connect with human
beings and we cannot. We have to keep distance and we are providing without a human touch.
QUEST (voice over): Rudy Tauscher, the hotel's General Manager recognizes this is hospitality in the era of COVID-19, but it goes against every fiber
of his my host being.
This Four Seasons is housing frontline workers so their precautions are extreme.
Now, that plan is being adapted for the general public.
TAUSCHER: The hotels will need to operate different. We are very fortunate here. We have a huge spatial layout. We have two entrances. We can design
the hotel.
But if you don't have this opportunity and you have a small lobby and you have crammed restaurants, then you have to look at it differently.
QUEST (voice over): The world is starting to move. There's a glimmer of increasing demand for hotel bookings.
According to hospitality analysis from STR, occupancy last week hit 32 percent in the United States. That's up from last month, but let's be
blunt, it's less than half of what it was this time last year.
QUEST (on camera): All hotels are now working out the logistics of how do you reopen in COVID world? Should room service be allowed in? How often do
you clean? Guests who don't want their rooms cleaned, sanitizing all these rooms on a daily basis. Should gyms be allowed? Spas? The list goes on and
on.
Can you imagine a situation whereby guests say to you, I don't want you to come in the room, don't worry about room service. Leave the sheets or the
new fresh towels, I'll do it myself.
TAUSCHER: Yes, we expect the guests to tell us to not service our rooms today, come back tomorrow.
QUEST: But you never thought you would have to deal with these -- this sort of thing in your career?
TAUSCHER: No, never. That's a new one. I've gone through financial crisis and 9/11 here in New York and now COVID-19. It will reshape us. It will
reshape this industry.
QUEST: The great advantage of a hotel is it is a refuge from home life. So said George Bernard Shaw. Now grand hotels like the Four Seasons have to
redefine what it means to be my host.
(END VIDEOTAPE)
QUEST: Now, the Global President of Four Seasons, Christian Clerc told me that the secret to hotels getting back in business is to build confidence
in the customer.
(BEGIN VIDEOTAPE)
CHRISTIAN CLERC, GLOBAL PRESIDENT OF FOUR SEASONS: You know, Richard, there's so much background noise here, and so this scare is about being
founded in facts and in science, and keeping in mind there is so much we don't know about this virus, as you know very well.
[15:20:11]
QUEST: When you reopen, and as you do, and I appreciate it is gradual and one business, one restaurant in Georgia said when they reopen, it's not
about being profitable, it's about being sustainable. It's about getting the business going again and being sustainable. Would you agree with that?
CLERC: In the hospitality industry and travel industry, I believe, we expect this recovery to be gradual. It's about doing the right things and
about ensuring that we can provide the same level of quality, excellence and the same level of thoughtful and genuine service.
But through, you know, the new lens of COVID, we believe that we need to give the guests control of their experience.
Our smartphone is how we control our lives today and as an extension, when you come to Four Seasons, you will be able to decide the level of
interactions you want to have with the employees, from check-in to check- out, you can basically have control of your experience, get access to every single services through digital technology.
So, we're fortunate to have a very strong platform. We believe that this will be something that is here to stay, where more services will be
delivered through technology and leveraging those platforms is really important.
QUEST: I guess one would sum it up, we're doing the best we can, but we don't really know.
CLERC: That's absolutely right. That is absolutely right. This is not going to be a smooth ride. My sense is that every part of the world, every
region, is going to move at a different pace. You see it already around the world.
Different parts of the world, different regions, applying different approaches to this.
So I couldn't agree more with you, which is why we picked the best in class partners to be able to collaborate with so that we are relying on facts and
science as we evolve our approach to the situation.
(END VIDEOTAPE)
QUEST: The Four Seasons has one set of problems at the luxury end of the market. The Best Western Group has the same set of problems in terms of how
to create a safe environment and build customer confidence in a different sector of the market.
David Kong is with me, CEO of Best Western Hotels and Resorts. He joins me from Chicago.
You were listening to what Christian was saying. You have the same problem, but you're much bigger in a sense. You have many more properties, a
different price point, and different expectations, and therefore I suppose different margins.
How are you doing at the moment in terms of reopening the global portfolio?
DAVID KONG, CEO, BEST WESTERN HOTELS: Well, you're right. We are actually a company with almost 5,000 hotels around the world. We are in over a
hundred countries. And so when you think about the industry, how it is performing, Best Western basically mirrors that in every single segment. We
are in many different locations.
And in Asia, where it all began, it is showing signs of recovery. I just talked to our partner there and he was talking about filling the cities
again, which means that manufacturing is back, and hotel occupancy is picking up. But many parts of Asia are still closed down.
And if you look at Europe and the Middle East and Africa region, it's spotty. I was very encouraged today to hear many of our hotels in France
and Germany reopen today, which was very encouraging.
In the States, as we know, we have about 10 percent of the hotels that are still closed primarily because of orders from the government.
QUEST: So assume, as we look to the summer and we know that the summer is the reopening, what is your best guess for what you would expect occupancy
to be over the summer? Are we in the low teens, the mid-20s, the high 30s?
KONG: I think as an industry and certainly for our company, I hope that it would surpass 50 percent, maybe even 60 percent occupancy. And the reason
I'm not allowed to be more optimistic is because I recognize that in urban locations that return of business is going to be very, very slow.
You can look at New York City, for example. What offices are open right now? Who is going to want to take public transportation to work and
therefore, the offices are not open and the ones that are open don't allow visitors.
So, the hotel business is going to be impacted tremendously.
QUEST: David, in terms of a company, if 2020 is the year of on hold and who knows what, at what stage do you put back some of your plans of
expansion, renovation and capital expenditure, most of which have been stripped out of corporate plans as you've had to draw down credit lines?
[15:25:21]
KONG: You're right in saying that. We'll have to worry about liquidity. It's not just us. It's all the franchisees that we work with. Many of them
are in survival mode, so they think about being able to maintain operations first before expanding.
But having said that, I think this is actually a very good time to do renovation or to do new construction, because let's face it, construction
costs have dropped by 20 percent and you have much more people, many more people who are willing to work on a hotel project now than just four months
ago.
And you can afford to take rooms out of inventory right now. So, this is actually a very good time to do renovation or new construction, if you can
afford it.
QUEST: David, that's a classic example, rightly expressed example of never waste a crisis. David, thank you. We'll talk more, please, over the summer
as things move on and we get a better view.
And of course when you're in New York, hopefully, eventually, we'll talk at a Best Western. I'm grateful for you, sir. Thank you.
KONG; Thank you.
QUEST: On QUEST MEANS BUSINESS in a moment after the break, we've talked about the hotels where we lay our heads. We've talked about the
destinations where we'd go to.
We do need to talk about airlines and we will do so on the day that Latin America's largest carrier also declared protective bankruptcy.
It's QUEST MEANS BUSINESS live from New York.
(COMMERCIAL BREAK)
[15:30:00]
QUEST: Welcome back. QUEST MEANS BUSINESS from New York. We now turn to look at airlines. LATAM, the Latin American carrier, the largest in the
region, has joined the list of bankrupt carriers based in Chile, but obviously, across the continent. LATAM was filed for Chapter 11 in the
United States. Some of you might find that unusual.
Under the law, any company with U.S. operations can seek bankruptcy protection in the U.S. courts, of course, that can create some difficulties
with their home domestic jurisdiction, but they can do it. Colombia's Avianca, the second largest carrier in the region, did so last month. And
the other carriers are squabbling over state-sponsored bailouts.
Ryanair's top executive says he lost the European Court of Justice to block Lufthansa's 9 billion Euro rescue by the German government that was
announced yesterday. On this program, over the past few weeks, we've heard from numerous airline CEOs who have retrenched, cut back, cut costs, and
say that the airline industry is at a pivotal moment.
(BEGIN VIDEOTAPE)
GARY KELLY, CEO, SOUTHWEST AIRLINES: We'll lose $900 million in cash in the month of April. And obviously, that's just not sustainable. So, if that is
the new reality, we'll have to radically restructure.
TEWOLDE GEBREMARIAM, CEO, ETHIOPIAN AIRLINES: The current global crisis is unprecedented. By June 30, we are expecting to lose around a billion U.S.
dollars' worth of gross revenue.
ALAN JOYCE, CEO, QANTAS: Qantas of 2022 won't be the Qantas of 2019. And this was going to take a number of years to rebuild.
TONY DOUGLAS, CEO, ETIHAD AIRWAYS: Flows in aviation, it's absolutely heartbreaking to see a large proportion of our fleet parked up.
GARY KELLY, CEO, SOUTHWEST AIRLINES: There will need to be a shared sacrifice. We'll all need to work together, we'll do the best job we can to
preserve jobs, preserve pay, but we just don't know what the future holds here.
(END VIDEOTAPE)
QUEST: Now, Finland's flag carrier, Finnair, recently given a lifeline in the form of a $650-million loan guarantee from the government. It's also
receiving up to $66 million from commercial banks. The Finnair CEO is Topi Manner, he joins me from Vantaa in Finland, and he joins me now via Skype.
Sir, good to have you. I noticed that you're slowly but surely rebuilding your schedule and, of course the focus, because you are the quickest way
from Europe to Asia, is with those crucial Asia routes. Is it going to be a case of you waiting for demand to come back over you supply and hope that
they come?
TOPI MANNER, CEO, FINNAIR (via Skype): Well, as stated, I mean, during the past weeks, we, as many other airlines in the world, we have been crowning
the majority of our fleet. But we see the demand gradually come coming back as many countries in Europe are lifting their lockdown measures and opening
their societies.
And we will come back to more meaningful level of flying from beginning of July onwards, when we will be flying roughly 30 percent of our normal
amount of flights, and that includes something both short haul flights as well as long haul destinations because as you correctly stated, we as an
airline, we are all about connecting Europe and Asia.
QUEST: So, sir, let's get to brass knuckles. how angry or just annoyed are you, frustrated, that Lufthansa got 9 billion euros? France got 8 billion
euros, even -- I mean, you've only got a draw down loan facility by a bank guarantee. You're now competing on a completely unequal field.
MANNER: Yes, I think that we will need to remember that this is, by far, the worst crisis in the 10-year history of commercial aviation during
peacetime. And therefore, I think that when borders are closed, it is also somewhat understandable that governments are stepping in to support clearly
healthy carriers during normal times.
So, I think that we will need to remember that backdrop, but of course, going forward, it is extremely important to maintain a level playing field
in aviation. And I think that what is most important in this is, that those kinds of carriers, the ailing carriers already before the crisis, are not
given a lifeline, not given life support, so that they would be distorting competition going forward.
QUEST: But OK. But -- on this point, I mean, is it time now for you, for Finnair, which is a -- has an excellent reputation, a niche carrier at one
level, start looking at consolidation.
[15:35:08]
You've been asked a million times, so this is the million and first about whether you should be looking to merge with, say, an IAG?
MANNER: Well, I mean, we develop our company as an independent company, connecting Europe and Asia, as stated, and we have a plan. We are
progressing with that plan, well. And that plan is all about coming out strong from this crisis, and as the strongest airline in Northern Europe.
QUEST: OK. So, Norwegian, just about went bust and then managed to get a bailout. We're not quite sure the depth and range of the -- of sasses
issues in the region. As you look at Finnair and positioning, you're all going to have to restructure, reduce your cost base. Just how drastic, do
you think, that's going to have to be for you?
MANNER: Well, all of us, I mean, all the airlines will need to improve their cost efficiency, significantly. All of us, I guess, we'll be
adjusting capacity. But the best airlines, those that have stand -- financial standing for it, will be also investing to customer experience
potentially, in re-fleeting the operation, taking home efficiencies with that one, and we want to capture those kinds of opportunities. And that is
really part of our plan to come out strong from this crisis.
QUEST: Topi, thank you. Good to have you, and always good to see you, sir. Thank you for joining us from Vantaa in Finland, and we appreciate it.
Thank you.
Now, you've found your accommodation, you've got your airline, and of course, the airline can only rely if there is an airport from which it can
fly to and from. After steep declines, numbers in the United States to show improvement, admittedly, from appallingly low levels, the TSA, you're
familiar with that, of course, process more than 300,000 people in a single day.
Admittedly, it was a holiday weekend in the United States, but that 300,000 is only 12 percent of the 2.8 million that was said last year, as states
and local governments relax, stay at home policies, so the numbers will improve. LAX, Los Angeles International saw more than 88 million passengers
last year. Its fourth on ACI's world's busiest airports list.
Justin Erbacci is the interim chief executive at LAX World Airports. He joins me now. Justin, good to have you, sir. The numbers are getting
better. You, of course, at LAX have a large domestic. But you also have in your -- the U.S.'s Asia Pacific along with San Francisco during rivalry
there. So, where do you expect to see passengers coming back from and when?
JUSTIN ERBACCI, INTERIM CEO, LOS ANGELES WORLD AIRPORTS: So, Richard, we're hoping that in June, we're going to start seeing a big increase. We've seen
the schedules that are filed for June, and we see the number of seats that are going to be coming to LAX almost triple. We just hope that the
passengers are going to follow. We expect a big resurgence for both Europe and from Asia, as well as Mexico.
QUEST: The numbers -- the governor of New York said recently, that the reason New York is so bad is because of the number of people before the
close down, who are coming through JFK and Newark. Same issue in Los Angeles, California's problems are given a lot of it did come or partially
came from the key hubs, how are you going to ensure that you have the strictest, strictest measures in place for those people coming from other
countries?
Hello? I think -- I do -- I think -- we may -- we may have lost. Let's take a moment to break, while we just work out what went on there. We'll be back
after the break.
(COMMERCIAL BREAK)
[15:40:00]
(COMMERCIAL BREAK)
QUEST: As we consider the what happened in the tourism industry, it's worth taking a moment today to remember one of the greats of tourism in Asia.
Stanley Ho passed away in his late 90s. Stanley Ho was more than just a builder, or an entrepreneur, he invented tourism and the gambling industry
in Macau.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN CORRESPONDENT: He was one of Hong Kong's original tycoons and one of Asia's richest men, but Stanley Ho made his fortune on
the nearby enclave of Macau, the only place in China where casinos are legal. For four decades, Ho held the only gaming concession in the
territory. The boundary came to be known as the godfather of gambling always said he never indulged himself.
STANLEY HO, BILLIONAIRE BUSINESSMAN: I know nothing of gambling. I still don't gamble. I've got this franchise, because it was a challenge for me.
STOUT: And he says he fought to keep a clean image and what some consider a murky business.
HO: Some people still think that Stanley Ho knows too many triads and connected with the triads. This is very unfair, real misconception.
STOUT: But he was a flamboyant man who loved ballroom dancing. And not only did his casino monopoly make him a very rich man. Today, the people of
Macau more or less live off the rattle of Roulette wheels, and the clinking of chips from the empire he founded. Ho's substantial influence around Asia
was underlined when he took a seat on the political advisory body to China, bringing him close to key figures in Beijing.
In 2002, Macau opened its casino industry to foreign competition and big rollers such as Wynn resorts and the Las Vegas Sands entered the market. At
the same time, China eased travel restrictions and tourists headed straight for the casinos just over the border.
[15:45:09]
This was the start of a decade of explosive growth that would see Macau's gaming scene become many times the size of the Las Vegas Strip. Ho's
fortunes grew as well. And by 2008, Forbes estimated his net worth at $9 billion. But that wealth was threatened to tear his family apart. Ho was
famously polygamist, having 17 children with four women. In 2009, he suffered a fall and underwent brain surgery. Frail and in poor health, he
stepped back from running his business.
And members of his family engaged in a very public battle for his fortune. A resolution came two years later, with Ho giving up nearly his entire
stake in the gambling empire he built, divided among his family. He would also live to witness a reversal of fortune in Macau, as a corruption
crackdown and slowing growth in China hit gaming revenue hard. But despite the uncertainty ahead, Stanley Ho's legacy endures. Macau itself and how
far it has come remains a testament to his vision and his life's work.
(END VIDEOTAPE)
QUEST: Stanley Ho, who died recently. Now, as we -- in a moment, after the break, Fiji tourism is essential to the country's economy, the tourism
minister on how they can restart their tourism industry after the break.
(COMMERCIAL BREAK)
QUEST: At the moment, Fiji doesn't really have a tourism industry to speak of, which is a shame, because last year was a bumper record year for
tourists visiting the idyllic destination. 77,000 people went to Fiji last year, in April, 770 odd went just in last month. It leads the new tourism
minister to say that it will be no return to tourism as normal anytime soon. The minister is Faiyaz Koya, he joins me now from Fiji. Minister, we
had earlier in our program today, the plan of the Greek tourism minister to reopen the country. It's very detailed. Does Fiji have a plan to reopen
tourism in the near future?
FAIYAZ KOYA, MINISTER, FIJAN TOURISM (via Skype): Well, Richard, yes, yes, it does. We've actually been doing a lot of work on our reentry with
respect to tourism. We act the entire tourism department.
[15:50:10]
Active ministry has been focused on doing a recovery paper which is really essential for us. The tourism Fiji has prepared a four-stage market
reentry. And one of the most important things to us, Richard, is our visitors that come from our neighbors, Australia or New Zealand, because
they form a substantial part of our market. And we currently are in negotiations with Australia and New Zealand with respect to joining a
(INAUDIBLE) So, that's one of the most important things for us.
QUEST: That's crucial. I mean, that is absolutely crucial that you become part of a bubble that would include the Anzac countries, the existing ANZAC
countries. But the problem of course, again is, who wants to sit on a plane for 8 to 10 hours in this environment?
KOYA: I, as I said, what -- one -- for us, it's the trans Tasman thing that is extremely important. People who travel longer distances to come to Fiji
for a smaller part of it. So, the first stage of our reentry is targeted towards the Australia and New Zealand market. Effectively it is about 70 or
70 to 80 percent of our (INAUDIBLE) it's a first point of reentry --
QUEST: I just got to ask --
KOYA: -- and that we're actually --
QUEST: My apologies. I just got to ask you, Minister, you're quoted as saying COVID-19 could be a way of bhagwan, God or Allah's way of stopping
what had become routine for most people. Did you say that? And if so, what did you mean by that?
KOYA: Yes, I did. It was actually a statement made in Parliament and, you know, on reflection, it's something that everybody around the world needs
to rethink about. It was relative to how we need to not just reset, but reinvent how businesses done. And even with us, with tourism forming such a
huge part of our GDP, it's about almost 40 percent.
Everything needs to be reengineered into -- with how we're actually going to do all of this after COVID has stopped. And it's that's all it was. It
was just relative to that. And, you know, our recovery --
QUEST: Good to have you. So --
KOYA: -- document that we're actually --
QUEST: We will -- we will talk more in the future, sir, I'll promise you. We'll talk again about Fiji and how you are progressing in your recovery
plan. I'm glad to have you on the program. If you look at the number of funny tonight, if you look at the number of Americans who are planning to
travel, research from the Points Guy shows that roughly a third of Americans are still planning to take a vacation.
Already half already for a road trip, and only a fifth will consider a domestic flight. Less than 10 percent would go on an international flight.
Brian Kelly is the Points Guy himself. He joins me now from New York, Brian, pull the strands together, we talked to you before over this whole
crisis, but now we are where we are.
So, what should any of us who are thinking of traveling? I mean, what should we do with our miles? What should we be concerned about with our
frequent flyer trips? And should we be looking at flights, cruises or getting on the road?
BRIAN KELLY, FOUNDER AND CEO, THE POINTS GUY (via Skype): Yes, well, first thing with your miles, you know, I actually just tried redeeming my Virgin
Atlantic miles recently, because not that they're going to go under probably, but you know, there are some airlines in trouble out there. So, I
would say recommend using your miles when possible.
But the biggest thing is, you know, for Americans, especially as figuring out where you can even go. I actually just booked my first trip post COVID,
June 4, I'll be going to Antigua, which is opening up to Americans and having a test on arrival. But there are very few destinations you can even
go, so that domestic trip planning is probably the best advice for most people right now.
QUEST: The fear, look, let's nail this one once and for all, the air on planes is bad they say. You can -- you can receive -- get all sorts of
nasty things. That is simply not true. It's my understanding, because of filters and the way the whole thing works from the roof to the floor.
KELLY: Exactly. Yes, I mean, flying on an airplane, it's the same filters that they use in COVID isolation rooms. So, the filters themselves are
great. It's, you know, the proximity. So, if someone sneezes directly on you, and they're a super spreader. you know, we're learning more and more
about the virus every day. But most people are not super spreaders.
And you know, simple things like washing your hands and having a mask do wonders. So, I do still believe that air travel is among the safest ways to
travel, but it's going to take a lot to convince the flying public of that.
QUEST: As a travel expert, let's just look at the two major components, the flight and the hotel. Now, on this program tonight, we've heard from CEOs
of both of those segments about what they are doing. For you, Brian, which is the -- which segment gives you most pause for concern, the hotel or the
flight?
[15:55:13]
KELLY: You know, I would say the hotel, just because there's more square footage to cover. You know, on a plane, you can wipe down your area pretty
quickly. And the CDC just revised guidance saying that, you know, the virus doesn't really stick on services as much as they thought it was or
transmissible. So, I would say a hotel room. But in general, you know, most of the hotel chains have up their cleaning game.
I think most travelers will bring their own supplies to make sure it's clean. But you know, I think in general, it's still pretty safe to be in an
airport these days because there's hardly anyone in them.
QUEST: LATAM's gone bust. It's protective bankruptcy. But LATAM and Avianca, the two leading carriers in the region, have both gone into
bankruptcy protection. It's becoming clear that the only thing that really saved the U.S. giants and many of the European giants, was the government
bailouts.
KELLY: Absolutely. Yes, and the fact that the airlines are selling billions of dollars' worth of frequent flyer miles to the government. In fact,
American Airlines is putting up their advantage program as part of a collateral for another government loan. So, you know, government
intervention is needed no matter how quickly.
You know, we saw 16 percent more passengers go through the TSA this past week, but we're still down almost 90 percent from a year ago. So, for the
airline, for the global airline community to survive, there will need to be more bailouts.
QUEST: In a word, which would you take, road, rail or sea? One word.
KELLY: Air. You still got pilots who are, you know, highly qualified and it's the safest way.
QUEST: Not surprised the Points Guy decides to add some more points by getting back on a plane. Good to see you, Brian, as always. I'm very
grateful. This is QUEST MEANS BUSINESS, coming to you from the Big Apple. Every time I see that trillion-dollar view, by the way, that's the Empire
State Building, the big one in the middle. It's the Chrysler Building over to the right. And the rest of them, you have to wait until next week when
I'll try and find out to remember.
(COMMERCIAL BREAK)
QUEST: Tonight's profitable moment, we spend so much time talking about travel and tourism on this program and for very good reason. The fact is,
10 percent, I think it's a little more, I think it's up to 12 or 15 percent of the world's population is, in some shape or form, involved in travel and
tourism, from the -- those who run the airlines and hotels, to its people to sell your souvenirs, to those who sell cakes.
The reality is, we are all going to travel again, but we will only do so when we feel it is safe. It is this -- it is this linkage between being
assured that the plane you go on won't give you COVID, the hotel you stay in, will keep you safe. And that caring has taken on a new meaning, a new
destination, a new word. That's what travel and tourism is all about.
So, I will see you on the road. We'll cross paths in airports. We'll wave at each other's in hotels, and we'll still make sure that we travel and see
the world. That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it is
profitable. The closing bell and we're in New York.
END
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