Swiss slopes buzz as those of neighbors sit idle in pandemic

The Swiss say they are taking reasonable action to fight the pandemic but have hardened their rules in response to criticism from neighbouring countries. (AFP)
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Updated 05 December 2020
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Swiss slopes buzz as those of neighbors sit idle in pandemic

  • France and Austria keep slopes closed as European ski industry is devastated

GENEVA: Two weeks after beating COVID-19, Thierry Salamin huffs as his ski boots crunch through Swiss snow near the Matterhorn peak, readying for a downhill run with his mood as bright as his blue and fluorescent yellow ski getup and the sun overhead.

The 31-year-old real estate agent from the southwestern Swiss region of Wallis can’t believe he is skiing during a pandemic, let alone one that he personally endured — and which has driven a wedge between his country and its Alpine neighbors over where people can ski, and where they can’t.

While the coronavirus resurgence has led Austria, France, and Italy to shut or severely restrict access to their ski stations this holiday season, Switzerland has kept its slopes open — a move that has fanned grumbling about an unlevel playing field when it comes to Alpine fun.

“It’s true, we’re privileged,” said Salamin, enthusing about the “paradise” of the Zermatt slopes and gesturing over the ridgeline toward Italy. “It’s too bad that people can’t go skiing on the Italian side, because those slopes are magnificent.”

The discord among countries during the worst pandemic in a century cuts across issues of health, business, economy, culture and wellbeing. But it also violates one of the key tenets that the World Health Organization promotes to help fight COVID-19: solidarity.

The Swiss say they’re taking reasonable action to fight the coronavirus. As across much of Europe, infection counts in Switzerland spiked in late October and peaked at more than 10,000 per day on two occasions about a month ago — a high tally for the country of 8.5 million.

The authorities require masks in ski lifts and queues, and recommend hand hygiene and physical distancing measures. These seem only minor concessions to the hundreds of faithful skiers who gleefully turned out for a weekday jaunt on the Swiss slopes near the Matterhorn on Thursday.

France’s government is all but taking aim at Switzerland, which is not a member of the EU, warning that any residents of France who come back from ski holidays could face virus tests and quarantine orders. The French move is aimed at limiting the spread of COVID-19, but it comes as some officials and business leaders in French Alpine towns have complained about unfair restrictions. 




Andorra is one of the European countries that will be hardest hit by the lack of ski tourists this winter on account of COVID-19 precautions. (AFP)

On Friday, amid such pressure, Swiss Health Minister Alain Berset announced a “hardening” of Switzerland’s rules governing ski stations. Ski areas must now receive authorizations by the cantonal, or regional, authorities by Dec. 22 to continue operating.

His ministry said trains, gondolas and cable cars in ski areas will be limited to two thirds of maximum capacity starting Wednesday. But the stepped-up restrictions are still fewer than in other countries.

Neighboring regions are seething. Just across the border from Zermatt, in Italy, the Valle d’Aosta regional council voted to defy the national government and open its ski lifts anyway, but the issue may get tied up in court.

Nicolas Rubin, mayor of the French town of Chatel, near the Swiss border, has had his city hall draped in Swiss flags to protest the directives from Paris. He told Swiss public television Wednesday he felt “no jealousy” toward Switzerland, saying Swiss officials had fully thought through their rules.

The EU — which counts Austria, France and Italy as members — has stopped short of recommending a holiday season travel ban. However, national authorities are taking precautions, leery of superspreading events such as those earlier this year at ski resorts in those three countries that helped seed devastating outbreaks in Europe.

On Thursday, Italian Prime Minister Giuseppe Conte confirmed Italian ski lifts will remain closed through Jan. 7. France is still undecided, but looking at a mid-January restart at best. Austria will allow skiing to start on Dec. 24, but will limit the capacity of ski lifts until early January.

In Zermatt, this weekend — around the time of the start of the typical high winter season — could well be pivotal to see just how much the warnings from foreign politicians, and laments from wintertime business owners abroad, will register with would-be skiers.

“Tourism is our only income, it’s our life,” said Zermatt mayor Romy Biner-Hauser in an interview.

“Nobody wants to be a hotspot, nobody wants to be a super spreader,” she said. “Where is the difference (between) doing outdoor activity ... (in) the sun, the fresh air, mountains, versus a shopping mall in a big city? And nobody has given me that answer so far.”

Zermatt tourism officials are projecting a minimum 20 percent drop in overnight stays this year. Traditionally, about half of all visitors come from Switzerland, the other half from abroad — many from far away, not just neighboring countries.

“We hope so much that the government will not lock down again and we hope that people from other countries will be able to cross the borders,” said Dave Preis, an Italian ski instructor at Zermatt. “It makes no sense to lock down the world. It means: ‘Let’s stop living’.”


GCC oil companies can maintain solid credit metrics in net-zero journey: S&P Global 

Updated 7 sec ago
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GCC oil companies can maintain solid credit metrics in net-zero journey: S&P Global 

RIYADH: National oil companies in Gulf Cooperation Council countries could absorb the additional investments needed to transition toward net-zero while maintaining robust credit metrics, said S&P Global. 

In its latest report, the credit rating agency noted that NOCs in the GCC face similar energy transition risks as their global counterparts, but their strong financial positions will help mitigate these impacts. 

Rawan Oueidat, credit analyst at S&P Global Ratings, said: “We expect that GCC NOCs will have sufficient financial buffers and competitive advantages to absorb the incremental investments that are necessary to catch up with global peers and that they can preserve their credit ratios over the next five years.”   

He added: “GCC NOCs’ average low-carbon investments would have to total $15 billion-$25 billion annually at least until 2026 to keep up with those of global listed peers. Even after factoring in these investments, the overall effect on NOCs’ debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) would be below 2.0x on average.”  

According to the report, these firms can fund most of their net zero projects without having to revert to external financing sources.  

S&P Global added that both banks and capital markets will play a role in funding the regional countries’ energy transition.  

“Given the size of the GCC banking systems and their capitalization, we expect they will have the capacity to cater for the funding needs of the NOCs’ low-carbon investments over the next few years if necessary,” stated the agency.  

It added: “However, we observe that NOCs, which are generally among the largest and internally-focused corporates in the GCC countries, are typically financed outside the local banking systems.”  

The report highlighted that while firms in the region benefit from strong balance sheets, they will need to carefully consider investment requirements in relation to dividend distributions. 

It further noted that the majority of NOCs in the GCC have already established net-zero targets, with Saudi Aramco aiming to achieve this by 2050 and Abu Dhabi National Oil Co. targeting a goal by 2045. 

S&P Global further noted that environmental, social, and governance disclosures among oil firms in the region have increased, particularly in disclosing scope 2 emissions, but still lag behind their global counterparts. 

However, the report highlighted that most NOCs in the GCC have not yet disclosed scope 3 emissions. 

Scope 2 refers to emissions released into the atmosphere from the use of purchased energy. 

On the other hand, scope 3 encompasses indirect emissions in a company’s value chain, and it is generally considered complex and challenging to report. 


GCC logistics sector set to expand as Saudi Cabinet approves regional transport law

Updated 20 min 59 sec ago
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GCC logistics sector set to expand as Saudi Cabinet approves regional transport law

RIYADH: The logistics sector across the Gulf Cooperation Council region is set to prosper following the Saudi Cabinet’s approval of a land transport law within the region.

Chaired by King Salman, a ministerial session was held in Jeddah, during which the Cabinet reached consensus on several key proposals. Among these was the endorsement of the unified law.

The system is crafted to enhance the organizational environment, simplify procedures, and foster unity. Moreover, it aims to boost road safety, elevate service quality, protect investments, and stimulate growth in the logistics sector throughout the GCC region.


Global airline body calls for release of $720 million in held revenues by Pakistan, Bangladesh

Updated 24 April 2024
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Global airline body calls for release of $720 million in held revenues by Pakistan, Bangladesh

  • IATA asks Pakistan in a statement to simplify the ‘onerous’ repatriation process causing ‘unnecessary delays’
  • The international organization says airlines are unable to repatriate $399 million from the Pakistani market alone

KARACHI: The International Air Transport Association (IATA) on Wednesday asked Pakistan and Bangladesh to release airline revenues amounting to $720 million, saying the two countries were holding it in contravention of international agreements.

IATA, an international organization representing the global airline industry, asked Pakistan to simplify the “onerous” repatriation process involving audit and tax exemption certificates in a statement, pointing out such procedures caused “unnecessary delays.”

Bangladesh, it said, had a more standardized system, though aviation needed to be a higher central bank priority to facilitate access to foreign exchange.

“The situation has become severe with airlines unable to repatriate over $720 million ($399 million in Pakistan and $323 million in Bangladesh) of revenues earned in these markets,” the statement informed.

IATA’s regional vice president for Asia-Pacific Philip Goh emphasized that the timely repatriation of revenues to different countries was critical for payment of dollar denominated expenses such as lease agreements, spare parts, overflight fees and fuel.

“Delaying repatriation contravenes international obligations written into bilateral agreements and increases exchange rate risks for airlines,” he said. “Pakistan and Bangladesh must release the more than $720 million that they are blocking with immediate effect so that airlines can continue to efficiently provide the air connectivity on which both these economies rely.”

Goh maintained that his organization recognized the two governments were facing difficult challenges, making it necessary for them to determine how to utilize foreign currencies strategically.

“Airlines operate on razor-thin margins,” he continued. “They need to prioritize the markets they serve based on the confidence they have in being able to pay their expenses with revenues that are remitted in a timely and efficient fashion.”

He pointed out reduced air connectivity limited the potential for economic growth, foreign investment and exports, adding such large sums of money involved in the Pakistani and Bangladeshi markets necessitated urgent solutions.


Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank 

Updated 24 April 2024
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Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank 

RIYADH: Saudi Arabia is gearing up to expand its hospitality sector by developing 320,000 new hotel rooms by 2030, according to an analysis by global property giant Knight Frank.

The consultancy’s study disclosed that as much as 67 percent of the planned hotel room supply in the Kingdom would fall in the “upscale” or “luxury” categories, referring to 4-star and 5-star accommodations, respectively. 

This move aims to cater to the projected surge in tourism, with 150 million domestic and international tourists expected by 2030.

“With a target of welcoming 150 million visitors by 2030—a 50 percent increase from its previous goal—the government is actively exploring various strategies to attract to international travelers,” Partner and Head of Hospitality at Tourism and Leisure Advisory in Middle East and Africa Turab Saleem said.

Saleem noted that this includes the development of cultural and entertainment offerings nationwide, which complement existing attractions like the Jeddah F1 Grand Prix and numerous entertainment seasons.

“Noteworthy additions include theme parks such as Boulevard World in Riyadh, alongside the licensing of 24 additional theme parks by the Saudi General Entertainment Authority over the past year,” he added.


Oil Updates – prices climb amid US stocks decline, Middle East conflict

Updated 24 April 2024
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Oil Updates – prices climb amid US stocks decline, Middle East conflict

TOKYO: Oil prices extended gains on Wednesday after industry data showed a surprise drop in US crude stocks last week, a positive sign for demand, though markets were also keeping a close eye on hostilities in the Middle East, according to Reuters

Brent crude futures rose 26 cents, or 0.29 percent, to $88.68 a barrel and US West Texas Intermediate crude futures climbed 26 cents, or 0.31 percent, to $83.62 a barrel at 9:34 a.m. Saudi time.

US crude inventories fell 3.237 million barrels in the week ended April 19, according to market sources citing American Petroleum Institute figures. In contrast, six analysts polled by Reuters had expected a rise of 800,000 barrels.

Traders will be watching for the official US data on oil and product stockpiles due at 5:30 p.m. Saudi time for confirmation of the big drawdown.

US business activity cooled in April to a four-month low, with S&P Global saying on Tuesday that its flash Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.

“This could help convince policy makers that rate cuts are required to support the economy,” ANZ analysts said in a note.

US interest rate cuts could bolster economic growth and, in turn, demand for oil from the world’s top consumer of the fuel.

Analysts were still bullish that any latest developments in conflicts in the Middle East will still support markets, though the impact on oil supplies remains limited for now.

“Overall, crude oil prices are well supported around current levels by on-going Middle East risk premium. On the topside, risk of possible renewed OPEC production increase from Jun will help limit any significant upside,” said head of markets strategy for United Overseas Bank in Singapore Heng Koon How.

“We maintain our forecast for Brent to consolidate at USD 90/bbl by end of this year,” Heng added.

Israeli strikes intensified across Gaza on Tuesday, in some of the heaviest shelling in weeks.

“Recent reports suggest that both Iran and Israel consider the current operations concluded against one another, with no follow-up action required for now,” ING analysts said in a note.

“The US and Europe are preparing for new sanctions against Iran – although these may not have a material impact on oil supply in the immediate term,” they added.