HongKong

Connexus Travel Hong Kong ends; Connexus Travel plans restructuring


Hong Kong’s prolonged travel and tourism disruption has resulted in another corporate casualty — 58-year-old Kangtai Tourism, whose parent company, Shenzhen-based Caesars Tongsheng Development Co Ltd, declared liquidation on Oct. 28.

Hong Thai Travel’s exit from the business follows another shocking collapse of Morning Star Travel earlier this year.

Hong Kong skyline from Victoria Peak 640
Hong Kong tourism industry fears more company closures could occur in coming months

On October 26, after the six branches of Kangtai Tourism suddenly closed down, this decision came to light. Caesars Tongsheng Development Co., Ltd. issued a notice stating that the company was unable to repay its debts due to a decrease in profits due to the epidemic.

As of June 30, 2022, Kangtai Tourism had negative equity of CNY 68 million (USD 9.3 million), compared to revenue of CNY 10 million in the first six months of 2022.

The closure of Hong Thai Travel has sparked panic in Hong Kong’s tourism industry, who fear more companies may fail in the coming months, as the government has no clear timetable for Hong Kong to lift all Covid-19 restrictions and reopen its borders with China.

Angela Ng, managing director of Blue Sky Travel, told TTG Asia: “It’s heartbreaking to see Kangtai Tour go away.”

Its closure was a warning to other institutions in Hong Kong, she added.

“It would be lucky if the agent is alive today,” she said, adding that Hong Kong’s 0+3 travel measure did not do much to stimulate arrivals.

The 0+3 arrangement requires inbound passengers to undergo daily medical monitoring within three days of arrival, including daily RAT/ART and PCR testing on the second day, followed by five days of self-monitoring, daily RAT/ART on the fourth day And the sixth day for PCR detection.

“Also, with the establishment of the TIA, agents have to follow more formalities and (regulations),” Ng said.

The industry is now eyeing Connexus Travel, another significant industry player that has laid off most of its staff and awaits restructuring.

In a letter sent to clients in September, TTG Asia Connexus Travel said the decision to “scale down our operations during these uncertain times” was due to “a series of quarantine and travel restrictions over the past few years” and a “remaining difficult” recovery.

A former Connexus Travel employee told TTG Asia A new CEO will take over in December to explore and set new business directions for the company.

Gloria Slethaug, former CEO of Connexus Travel, recently joined the Great Bay Airways as General Manager Marketing and Sales.

Connexus Travel was established in 2017 after Swire Travel was acquired by KWG Properties. It later took over another well-known agency, Jardine Travel, in 2020.

According to the Tourism Industry Authority, Connexus Travel’s license will expire after January 31, 2023.



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