The associations speak to a $10 billion industry made up of firms of changing sizes, counting numerous little and neighborhood businesses which contribute $2.5 billion to air terminal income streams.
The Airport Restaurant & Retail Association (ARRA) and Airport Minority Advisory Council (AMAC) urged airports and Congress to pass financial relief for airport restauranteurs and retailers given the business impact caused by the spread of the Coronavirus and resultant COVID-19 pandemic.
Members of both organizations have been seriously impacted given the decline in airline bookings/passenger counts, which are falling at unprecedented rates. A number of state/municipalities are closing restaurants, including at airports, to help contain the spread of COVID-19. All stakeholders in the industry are financially suffering.
These businesses employ more than 125,000 workers in U.S. airports. The restaurants and retail shops are a vital part of the passenger’s travel experience, and a major revenue source on which airports depend for their operations, development and bond financing.
John Clark, Chair of AMAC commented, “Our members are suffering tremendous sales losses exceeding 50% and in some cases as high as 90%. The industry is facing a financial crisis. Many businesses, including those classified as small and/or disadvantaged, may not be able to continue operations.”
Restauranteurs/retailers in the aviation sector are contracted by airports, airlines and third-party developers to provide passengers a full range of food, beverage and retail services. Pat Murray, Chair of the ARRA explained, “Our members’ ability to retain and pay employees, as well as pay rents to airports, has been seriously jeopardized. Some of our members will likely be unable to meet our debt obligations and will be forced out of business if quick action is not taken to provide relief.”
The associations urged airports to engage with their members quickly and adopt mitigating actions to save the businesses:
- Waive rent, other fees and the imposition of penalties for at least six months with the opportunity to extend depending on the extent/impact of the crisis.
- Suspend and defer concessionaires’ capital investment requirements.
- Provide operational flexibility including, but not limited to adjustments to operating hours, locations and menus/product selections as well as selective temporary closing of stores and restaurants in order to better align with passenger volumes and flows and reduce the impact on employees.
ARRA/AMAC strongly support the airports’ request for emergency financial assistance and flexibility to help sustain operations, preserve jobs and bonds, including assistance and flexibility for concessionaires during this critical time. ARRA/AMAC urged Congress and the Administration to provide financial relief/assistance to airport concessionaires to ensure business continuity, secure loans and make debt service payments. Specific measures ARRA/AMAC urge Congress and the Administration to act upon are:
- Provide grants/low-interest or interest-free loans to concessionaires to allow concessionaires to cover operating expenses.
- Provide loan guarantees to concessionaires to assure their ability to continue making debt service payments and secure loans for their ongoing capital investment requirements.
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
Boycotts are not new. Boycotts are not pretty. Boycotts are about creating fear. The question for business leaders is how to deal with this specific type of crisis before, during, and after a brand or a company has been targeted.
In the year since the change of government, hundreds of billions in bilateral investments have been announced. Beyond the media headlines, what are the opportunities for businesses to grow in Malaysia in 2024?
A series of networking sessions with various business associations and trade organisations exploring high-value opportunities for business leaders and entrepreneurs looking to build the relationships that matter.
This integrated event will include a forum, dedicated business matching, site visits, a gala dinner and a round of golf. Aptly themed, the focus will be on regional food security issues and trends in the context of the supply chain, agriculture technology and trade regulations and policies.
MGBF In The News
Last week SPM results came out, 373,974 aspirants who have been waiting patiently over the last few months would now know their fate. Some 10,109 have received all A’s, the golden standard of academic success and the ticket to those looking to study the “more advanced” subjects in university. Proudly, […]
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
