ICYMI: A few things impacting global mobility programs right now

Every two weeks, we've sent out one of our ICYMI updates to monitor the ongoing impact of Covid-19 on mobility. This week, we'll be expanding a little bit and diving into some other considerations that may be having an effect on relocating employees and administrating your mobility program.

Immigration: Many of our friends at industry immigration firms keep us updated on recent changes. Here are a few that are worth noting:

• New Zealand: Per Newland Chase, New Zealand has removed the requirement to be vaccinated to be able to travel to the country as of 12 September 2022. The country has also adjusted its application process to speed up processing times, with the goal of clearing their current backlog of applications. Sending of physical passports to a visa application center has been suspended temporarily to streamline the review of applications.
• Japan: As it continues to re-open, Japan has announced it will be easing border restrictions as of Oct 11. For short-term visitors, Japanese authorities plan to resume the visa exemption program for foreign nationals of 68 countries, matching their pre-COVID program. The list of countries qualifying for the visa exemption program may be revised by the authorities at any time. Newland Chase advises that travelers delay applications or travel to the country until after the restrictions have been lifted. Find more details here. 
• Canada: Canada has put a huge emphasis on immigration in recent years. In fact, immigration has been responsible for 95% of Canada's fast population growth! In Q2 of 2022, Canada allowed 3,100 people per day to come and live in the country. The latest estimates underscore Canada’s ambition in expanding its working-age population quickly by bringing in newcomers to replace aging workers who are leaving the labor force. Starting next year, the Canadian government plans to begin targeting newcomers in specific occupations to ensure better matching with industries suffering the most intense labor shortages.
• Ecuador: Per Fragomen, Ecuador has a new a two-year temporary residence visa for digital nomads, which offers foreign nationals who own a company or work for or provide services to a company or person outside Ecuador the option to reside in and work remotely from Ecuador without local sponsorship.  
• Malaysia: Per our friends at BAL, Malaysia has also introduced a Digital Nomad visa. As of Oct. 1, foreign nationals can apply for a remote work permit that is valid for three to 12 months and renewable for 12 months at a time. 
• Thailand: Also from BAL, Thailand has lifted its remaining Covid-19 entry requirements and as of October 1, individuals no longer have to obtain a "Thailand pass" or have proof of a negative departure test if they are already fully vaccinated. They also no longer need to take a test upon arrival or purchase Covid-19 health insurance.

Mobility cost impacts: 

• Hotels: Hotel prices around the world (particularly in Europe) are destined to keep rising next year, albeit at a slower pace than in 2022, according to American Express Global Business Travel’s (Amex BGT) ‘Hotel Prices 2023’ report.  This year’s data spotlights the hotel industry’s ongoing struggles that are expected to create price increases for corporate hotel programs. Some of the locations most impacted will be Buenos Aires (30% price increase), Paris (up 10% due to a substantial increase in both business and leisure travelers), and Stockholm, Dublin, and New York (all up nearly 9% each due to increased traffic for business and leisure travel). The Bay Area expects to see a 7.3% increase, which is projected to be 69% lower than 2019 pre-pandemic levels.
• Freight & shipping costs and delays: Per Freightos, there are a number of current shipping issues impacting freight costs and shipping delays. Seasonality, a drop in available exports, and inflation’s impact on consumer demand are lowering costs for sea shipments. The current rate is 61% lower than its level a year ago, though still 170% higher than before the pandemic. Transpacific prices to the US West Coast decreased 45% compared to the end of August to $2,978/FEU, 80% lower than at the start of the year and marking the first dip below $3,000/FEU since August of 2020 though still 128% higher than in September 2019.Improved congestion levels at the ports of LA and Long Beach translated to increased active capacity. Along with declining demand, Asia-US Coast routes are experiencing a steeper rate decrease compared to other lanes.
• Flight increases: Flight prices went way up over the summer. According to this CNBC article, holiday airfares will be the most expensive in 5 years as pandemic fears subside. Strong demand and limited capacity will keep fares aloft. Travel experts recommend flexibility and traveling outside of the busiest travel days. Average domestic airfare for trips over Thanksgiving is $350, and international round trips are going for an average of $795 — both mark a 22% increase compared to 2019. Domestic round-trip tickets over Christmas, which falls on a weekend this year, are nearly a third more expensive than 2019. Expect travel costs to rise for your mobility program, and be aware that lump sum funds used for travel won't go as far for many employees. 
• Rental cars: Car rental costs continue to run high as demand for rental cars is outpacing the supply of available vehicles. Per Forbes, both business and leisure travel are recovering faster than car rental companies’ abilities to expand rental fleets. Their prediction is to expect the current squeeze on rental car supply to last for at least the next year or two. At the same time, they offer numerous creative alternatives to traditional rental cars like ridesharing and taxi, public transit, renting outside the airport locations, tapping memberships like AAA, AARP and alumni associations, and looking at hourly (ZipCar) solutions and car sharing services (Turo).

Other disruptive events: here are a few things to know that could impact your mobility program

• Weather: by now you have tracked the damage and impact of Hurricane Ian in the U.S., but a brewing southwest monsoon will likely cause flooding and landslides across parts of South and Southeast Asia through October. In Australia there is a heavy rainfall forecast across the country through at least Oct. 10. Expect disruptions and travel delays in these areas.
• Fuel shortage in South Africa: Flights were canceled at Cape Town International Airport, South Africa, Oct. 2 and 3 due to an aviation fuel shortage.
• Train strikes in UK: The Telegraph reports that on October 1, 5 and 8 there will be train strikes happening that could impact travel, freight, and transportation for your mobility program and relocating employees. 
• Rental crisis in Canada: According to our friends at All Points Relocation, Canada’s rental housing market is bad and only getting worse. "Some markets are especially bad — Halifax, Vancouver and K-W/Guelph. Aside from a couple of prairie towns, Canada is starved for affordable housing. We anticipate the rental market to remain difficult through to spring of 2023 in most areas. Prices increased 25 – 30% in most Canadian cities year over last, and in many instances 5 – 10% month over month.  Vacancy rates are also at record lows in most centers, 1 – 2% is the national norm." U.S. rental markets are also having similar problems, as noted in this post.