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China’s economy rebounds after steep slump, weak demand, U.S. tensions raise risks

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4 years ago

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BEIJING (Reuters) – China’s economy returned to growth in the second quarter after a deep slump at the start of the year, but unexpected weakness in domestic consumption underscored the need for more policy support to bolster the recovery after the shock of the coronavirus crisis.

Asian share markets and the Chinese yuan CNY=CFXS fell, partly reflecting the broad challenges facing the world’s second-largest economy as it grapples with the double-whammy of the pandemic and heightened tensions with the United States over trade, technology and geopolitics.

Gross domestic product (GDP) rose 3.2% in the second-quarter from a year earlier, the National Bureau of Statistics said on Thursday, faster than the 2.5% forecast by analysts in a Reuters poll, as lockdown measures ended and policymakers ramped up stimulus to combat the virus-led downturn.

The bounce was still the weakest expansion on record, and followed a steep 6.8% slump in the first quarter, the worst downturn since at least the early 1990s.

“As we previously highlighted, policy support is still needed despite recovering growth momentum,” Betty Wang, ANZ bank’s senior China economist.

“The possibility of resurgences in local COVID-19 cases, global economic uncertainty and the deteriorating China-U.S. relationship all pose downside risks to China’s H2 growth outlook,” Wang said.

Those risks were partly reflected in separate retail data that showed Chinese consumers kept their wallets tightly shut, pointing to a bumpy outlook at home and overseas, as many countries continue to grapple with the COVID-19 pandemic – led by surging infections in the United States.

Though June indicators and GDP numbers largely beat expectations, Rodrigo Catril, a foreign exchange strategist at NAB in Sydney, said they also revealed “the China consumer remains behind in terms of the recovery story.”

“It’s very much a story of government stimulus-led recovery, which is very much focused on the industrial side. The consumer remains very cautious. That cautiousness is something the market is looking at in terms of countries where the consumer plays a bigger role, so that’s obviously relevant for the U.S. as well.”

Retail sales were down 1.8% on-year in June – the fifth straight month of decline and much worse than a predicted 0.3% growth, after a 2.8% drop in May.

Domestic job losses have been one of the worries for consumers, as many businesses struggled to stay in the black.

Wanda Film, for example, China’s largest cinema chain operator which has more than 600 cinemas, on Tuesday warned of a first half net loss of 1.5-1.6 billion yuan ($214-228 million), after the coronavirus kept its cinemas shut for almost the entire period.

U.S. tensions, structural issues

In the first half of the year, the economy contracted 1.6% from a year earlier, underscoring the sweeping impact of the virus which first emerged in China late last year and has killed over 583,000 people worldwide.

The rising tensions with the United States and the pandemic have added to structural issues that China has been facing for years, including demographic changes, over-investment, low industrial productivity and high debt levels.

On a quarter-on-quarter basis, GDP jumped 11.5% in April-June, the NBS said, compared with expectations for a 9.6% rise and a 10% decline in the previous quarter.

The government is expected to offer more support on top of a raft of measures already announced, including fiscal spending boost, tax relief and cuts in lending rates and banks’ reserve requirements.

But debt worries have kept a leash on China’s stimulus tap. Net fiscal stimulus unveiled so this year amounted to just over 4 trillion yuan ($571.76 billion), much restrained compared the spending burst in other major economies including the United States and Japan.

The Institute of International Finance estimates China’s total debt rose to 317% of gross domestic product in the first quarter of 2020, up from 300% in late 2019 and the largest quarterly increase on record.

The industrial economy offered some hope for the nation as it tries to regain its footing, with output in the vast sector rising 4.8% in June from a year earlier, the third straight month of growth, the data showed, quickening from a 4.4% rise in May.

Fixed asset investment fell a less-than-expected 3.1% in the first half from the same period in 2019, moderating from a 6.3% decline in the first five months, while real estate investment growth also quickened to 8.5% in June, thanks to the credit boost.

While the International Monetary Fund has forecast China to expand 1.0% for the full year, the only major economy expected to report growth in 2020, many analysts caution about the outlook.

“Domestic demand will drive China’s recovery ahead, but external demand could be a risk to the growth outlook given the possibility of large second round of coronavirus infections overseas,” said Oshimasa Maruyama, chief market economist at SMBC Nikko Securities in Tokyo.

Reporting and photo: Reuters

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Hotelier Maldives GM Forum 2024 to host panel on ‘Redefining the Luxury Travel Experience’

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15 hours ago

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September 14, 2024

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The Hotelier Maldives GM Forum 2024, scheduled to take place on September 19 at CROSSROADS Maldives, will include a panel discussion titled, ‘Redefining the Luxury Travel Experience.’ The session at the GM Forum, the largest gathering of hospitality professionals in Maldives, will explore the evolving landscape of luxury travel, examining how luxury experiences are being redefined to meet the changing expectations of travellers.

The panel will be moderated by Reena Abdul Wahid, Communications Strategist at the Maldives Association of Tourism Industry (MATI). The discussion will feature insights from key figures in the travel sector, including:

  • Solah Mohamed, Chief Operating Officer of Crown & Champa Resorts
  • Abdulla Ghiyas, Chairman of Visit Maldives and President of the Maldives Association of Travel Agents and Tour Operators (MATATO)
  • Ashwin Handa, Senior Vice President – Operations at Atmosphere Core
  • Enver Arslan, Area General Manager at JOALI Maldives and JOALI BEING

The panel will begin by addressing the definition of luxury in today’s travel industry, with a focus on the key elements that distinguish a luxury travel experience from a standard one. The discussion will also cover the latest trends in luxury travel, including how technological advancements are influencing the sector.

Personalisation will be a significant topic, with panellists sharing examples of how their resorts are personalising guest experiences. The discussion will also delve into the alignment of luxury travel with sustainable practices, including initiatives implemented by the resorts to promote sustainability without compromising on luxury.

The challenges in maintaining and enhancing luxury standards will be another critical focus area, particularly in the context of meeting diverse expectations from guests of different cultural backgrounds. The session will conclude with panellists sharing their vision for the future of luxury travel and discussing how the Maldives can continue to position itself as a top luxury travel destination.

In the closing segment, panellists will offer advice to emerging luxury travel destinations looking to establish themselves in the market. They will also explore how industry stakeholders can collaborate to elevate the overall luxury travel experience in the Maldives. The session will include a Q&A segment, allowing the audience to engage with the panellists.

This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.

Sponsors and partners of GM Forum 2024 include:

  • Ooredoo Maldives: Digital Partner (Title Sponsor)
  • Bestbuy Maldives (BBM): Silver Sponsor
  • Dhivehi Insurance: Silver Sponsor
  • Fuel Supplies Maldives: Silver Sponsor
  • Maldives Airports Company Limited (MACL): Silver Sponsor
  • Manta Air: Aviation Partner
  • Male’ Aerated Water Company: Beverage Partner
  • Atmosphere Wellness: Wellness Partner
  • Souvenir Marine: Transport Partner
  • Printlab: Printing Partner
  • CROSSROADS Maldives: Venue Partner
  • Lights Out: Coverage Partner
  • Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives

John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event.

Etienne Ng, Regional Director for Southeast Asia at Weixin Pay; Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts; Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT; and, Mohamed Mihad, Chief Commercial Officer at Maldives Airport Company Limited (MACL) will also be featured speakers.

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Rajesh Mehta of Ooredoo to speak on hospitality efficiency at Hotelier Maldives GM Forum 2024

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2 days ago

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September 13, 2024

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Rajesh Mehta, Chief Business Officer at Ooredoo Maldives, is set to deliver a presentation at the Hotelier Maldives GM Forum 2024, scheduled to take place on September 19 at CROSSROADS Maldives.

His presentation, titled ‘Managed Solutions: The Future of Hospitality Efficiency,’ will address the role of managed solutions in enhancing operational efficiency within the hospitality industry.

“As the digital partner of the GM Forum 2024, we are excited to share our insights on how managed services are transforming the hospitality industry. In today’s evolving luxury landscape, technology is at the heart of delivering personalised, seamless, and memorable guest experiences. I look forward to discussing how Ooredoo Maldives is empowering hotels and resorts with innovative ICT solutions that drive efficiency and enhance service delivery, setting new standards in luxury travel,” said Rajesh Mehta, Chief Business Officer at Ooredoo Maldives.

Ali Naafiz, Editor of Hotelier Maldives, commented on Mehta’s participation: “Rajesh Mehta’s presentation this year as well will provide valuable insights into how managed solutions can contribute to the efficiency and sustainability of the hospitality sector. The GM Forum continues to be a platform for such important discussions that impact the future of the industry.”

This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.

Sponsors and partners of GM Forum 2024 include:

  • Ooredoo Maldives: Digital Partner (Title Sponsor)
  • Bestbuy Maldives (BBM): Silver Sponsor
  • Dhivehi Insurance: Silver Sponsor
  • Fuel Supplies Maldives: Silver Sponsor
  • Maldives Airports Company Limited (MACL): Silver Sponsor
  • Manta Air: Aviation Partner
  • Male’ Aerated Water Company: Beverage Partner
  • Atmosphere Wellness: Wellness Partner
  • Souvenir Marine: Transport Partner
  • Printlab: Printing Partner
  • CROSSROADS Maldives: Venue Partner
  • Lights Out: Coverage Partner
  • Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives

John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event.

Etienne Ng, Regional Director for Southeast Asia at Weixin Pay; Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts; Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT; and, Mohamed Mihad, Chief Commercial Officer at Maldives Airport Company Limited (MACL) will also be featured speakers.

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MACL’s Mohamed Mihad to speak on airport developments at Hotelier Maldives GM Forum 2024

Published

3 days ago

on

September 12, 2024

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Mohamed Mihad, Chief Commercial Officer at Maldives Airport Company Limited (MACL), will deliver a presentation at the Hotelier Maldives GM Forum 2024. The GM Forum, the largest gathering of hospitality professionals in Maldives, will take place on September 19 at CROSSROADS Maldives.

Mihad’s presentation, titled ‘Velana International Airport (VIA) and Tourism Development,’ will focus on the role of the airport in supporting and enhancing tourism in the Maldives. The presentation is expected to cover key aspects of airport operations, infrastructure developments, and future plans that are pivotal to the growth of the tourism sector in the country.

Ali Naafiz, Editor of Hotelier Maldives, commented on the inclusion of Mihad in the forum, stating, “Mihad’s presentation will be highly relevant given the central role that Velana International Airport plays in the Maldivian tourism industry. We look forward to the valuable insights he will share with the participants.”

This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.

Sponsors and partners of GM Forum 2024 include:

  • Ooredoo Maldives: Digital Partner (Title Sponsor)
  • Bestbuy Maldives (BBM): Silver Sponsor
  • Dhivehi Insurance: Silver Sponsor
  • Fuel Supplies Maldives: Silver Sponsor
  • Maldives Airports Company Limited (MACL): Silver Sponsor
  • Manta Air: Aviation Partner
  • Male’ Aerated Water Company: Beverage Partner
  • Atmosphere Wellness: Wellness Partner
  • Souvenir Marine: Transport Partner
  • Printlab: Printing Partner
  • CROSSROADS Maldives: Venue Partner
  • Lights Out: Coverage Partner
  • Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives

With Mihad joining the lineup of speakers and presenters, the Hotelier Maldives GM Forum 2024 will offer attendees insights into the latest developments in digital payment technologies and their applications in the Maldivian hospitality sector.

John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event. Etienne Ng, Regional Director for Southeast Asia at Weixin Pay, Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts, and Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT, will also be featured speakers. Hotelier Maldives will soon announce additional speakers, presenters, and panel discussions, further shaping the forum’s agenda.

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