"Until a vaccine is widely distributed there are significant barriers to travel between countries which puts severe stress on economic recovery," says Professor Cather Simpson, an American-New Zealand physicist and chemist at the University of Auckland. "Rapid point-of-need testing for immunity can enable a return to safe and quarantine-free international travel," she adds.

Orbis Diagnostics, co-founded by Professor Simpson and Professor David Williams, a leading authority in electrochemistry and chemical sensors, has brought together an international team with significant depth in novel diagnostic development and deployment. Professor Williams, as Chief Scientist, led the development of Alere's globally leading Clearblue digital pregnancy and ovulation rapid strip tests and the first at-home fingerpick cardiac biomarker test.

The Orbis-designed platform will provide simultaneous and quantitative testing for large groups of peopleto deliver medical laboratory ELISA (enzyme-linked immunoassay)precision results in as few as 5-15 minutes. A small finger prick of blood is drawn from each traveler for on-the-spot testing. The goal is for COVID-immune individuals to bypass mandatory quarantine, with results authenticated to passports by identifying who is safe to travel without risk to themselves or others. The Orbis equipment is an automated centrifugal microfluidic system the size of a desktop printer. It can be deployed at entry points to key facilities such as airports, hospitals, and other locations critical to national and community infrastructure, and will provide a robust, portable, accurate immunoassay process. In addition, it was designed to be operated by non-technically qualified staff to allow its widespread deployment.

The WHO has expressed concern that the current rapid strip antibody tests are not able to reveal the extent of a person's immunity, because they only assess the presence of antibodies but do not quantify their levels. Quantitative determination of antibody levels is essential for assessing degree of immunity for an individual. Though accurate testing can be conducted in a medical lab, doing so is time consuming, expensive, requires experienced technicians, and is not scalable for use at locations such as airports, where timely mass testing is required. Furthermore, standards and methods can differ significantly from country to country

Orbis is seeking US$10 million to adapt its platform system for the quantitative detection of the COVID-19 virus and antibodies produced after infection, to productize its system, to conduct clinical studies and begin deployment. The system is expected to commence commercial manufacturing within 12 months.

The Orbis Diagnostics team has been joined by NYC-based Dr. Allan Goldberg who will serve as a Board member. He is a biotechnology CEO and entrepreneur, who is experienced in the foundation, management, financing, governance, and sale of start-up companies. Dr. Goldberg was a professor of virology at The Rockefeller University where his lab focused on viral oncology.

The scientific and management teams have been brought together by Pacific Channel, an early-stage investment and development firm focused on building successful deep-tech ventures from New Zealand. Pacific Channel is chaired by La Jolla, C.A.-based Dr. Gary Pace, an experienced serial entrepreneur in large-scale life sciences ventures in Australia, New Zealand, and the USA.

Orbis is working with D&K Engineering, a San Diego-based global leader in the development of products and instruments that have a high innovation content and complex manufacturing requirements, to productize and manufacture its system. Biometric companies which operate at airport gates throughout the world are informing Orbis on design and deployment requirements.

The Orbis team draws strongly from New Zealand's world-leading agritech industry to apply expertise to the COVID-19 recovery efforts. Professor Simpson led Pacific Channel's microfluidics and photonics company Engender Technologies that successfully developed a microfluidic cell sorting livestock technology that was sold in late 2018 for a significant return to its investors. In addition to his pioneering work at Alere, Professor Williams has experience developing robust diagnostic methods and equipment for measuring the health of cow herds during milking. "The sample collection process is time-sensitive, and is carried out in a difficult environment requiring minimal intervention and the need for fast and highly accurate results similar to the conditions in airports during a pandemic."

The tourism industry contributes approximately 10.3% of global gross domestic product and generates roughly one in fourof the world's new jobs during the past five years, according to World Travel and Tourism Council (WTTC), which represents private companies in the industry. An analysis by WTTC stated that the sudden halt in global travel due to the pandemic could result in more than 100 million job losses this year and an estimated $2.7 trillion decline in travel and tourism GDP in 2020.

"We all hope that vaccines are the long-term solution, however the first vaccines may only protect half of those who receive it, and for only 12 months," says Orbis CEO Brent Ogilvie, who also is managing partner of Pacific Channel. "Enabling freedom of movement is key to economic recovery, and we believe that the Orbis immunity testing platform can provide a solution for travel dependent industries desperate for a return to viability. Our platform system combines the accuracy, quantification, and robust repeatability of a medical laboratory with the speed and portability of a rapid test strip."

Brent Ogilvie added, "As an investor looking to create lasting impact, a key advantage of Orbis is the ease by which the system can be readily adapted to quantitatively measure the presence of the SARS-CoV-2 family of viruses, and in anticipation of further viral outbreaks, the presence of virtually any other virus and the antibodies it induces following infection."

Contact: Martin Elder Mobile 646-645-7108 Media Relations Director, SweeneyVesty New York [emailprotected]

SOURCE Orbis Diagnostics

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US and New Zealand Scientists from Orbis Diagnostics Collaborate on COVID-19 Mass Immunity Testing to Enable Quarantine-free International Travel -...

The Aeolian Islands are a UNESCO World Heritage Site located in northeastern Sicily.

Note: At the time of publishing, American travelers are not permitted to visit Italy and given the global health crisis, international travel is not currently advised. This piece is intended to serve as inspiration (and armchair travel) while we wait for the situation to improvefor more information, please consult the US Department of State for the latest travel advisories.

The Aeolian Islands, located off the coast of northeastern Sicily, are one of southern Italys greatest natural and cultural treasures. Formed by volcanic eruptions over time, the archipelago is made up of seven islands Lipari, Vulcano, Salina, Panarea, Stromboli, Filicudi and Alicudi each one with its own identity. Youll need at least two weeks to explore all seven islands but if youre short on time, heres an itinerary for a week with highlights of what to see, do and eat on four islands.

A view of Lipari town from Marina Corta.

Lipari

Lipari is the largest island in the archipelago and a good place to begin your trip. From scenic hiking paths and pebbled beaches to museums and a vibrant port, Lipari offers something for everyone. The island first attracted settlers thanks to its natural resources, including obsidian rock and pumice stone, so dont miss the chance to pay homage to Liparis geological heritage with a walk through the white-washed Cave di Pomice, a dramatic canyon made up of pumice stone.

The island is also home to an archeological museum that helps retrace the archipelagos importance as a trade route throughout history. Set within a historic fort above town, the museum houses hundreds of ancient amphorae and the worlds largest collection of miniature Greek masks. Nearby, you can pick up Aeolian-inspired gifts at the La Casa Eoliana, including jewelry, accessories and organic bath products.

The "Faraglioni di Lipari" are rocks formations located off the coast of Lipari.

High up in the hills of Quattropiani, Sangre Rojo serves some of the best food on the island in a terraced home overlooking the coastline: some stand-outs include pistachio-crusted tuna with red onions and eggplant rolls stuffed with spaghetti. Further south, Le Macine is a cozy trattoria that doubles as a quirky museum filled with historic farm supplies. Everything is made with locally milled wheat, including the restaurants specialty Maccheroni alle Macine with vegetable pesto and seasoned breadcrumbs. After dinner, stroll through Liparis elegant Marina Corta port and enjoy a nightcap in the romantic Giardino di Lipari cocktail bar set in a pretty garden.

The best way to enjoy the island is by land and sea. Rent a scooter with Pit Stop Noleggio and take a boat ride with Lipari Boat Experience the sunset tour of Liparis faraglioni makes for an unforgettable and romantic evening.

You can hike up to the Gran Cratere on the island of Vulcano.

Vulcano

Named after the Roman god of fire, Vulcan, the island of Vulcano is impressive for its dramatic craters with fuming fumaroles, which emit sulphurous gases. Vulcano is a popular destination thanks to its therapeutic mud baths and black sand beaches. With a tropical vibe and a bustling restaurant, Asino Beach is a great place to spend a day relaxing in the sun while enjoying a freshly baked schiacciata pizza stuffed with ingredients like mozzarella, capers and anchovies.

A volcano crater with fumaroles on the island of Vulcano.

Get up early to hike up to the Gran Cratere before the summer heat rolls in or take a taxi tour around the island with Taxi Santi to learn about Vulcanos history and enjoy its panoramic views. Vulcano is particularly stunning from the water thanks to its rocky formations and numerous coves and a boat ride with Tutta La Vita ensures youll sail in style. For a stand-out meal, head over to the Therasia Resort for Michelin-starred dining at Il Cappero or opt for a gourmet, vegetarian-style picnic dinner at the hotels creative I Tenerumi restaurant.

The quaint fishing village of Rinella on the "green island" of Salina.

Salina

With two twin peaks, verdant valleys and charming towns, Salina is considered by many to be the prettiest island in the archipelago. It is known as the Isola Verde (the green island) and boasts a number of vineyards that produce sweet Malvasia dessert wine. Hike up to Fossa delle Felci, a natural preserve set within an extinct volcano, for fantastic views of the island and nearby Panarea and Stromboli on the horizon.

The Bay of Pollara on the island of Salina is filled with interesting geological formations and sea ... [+] life.

You should also rent a scooter to reach the crescent-shaped bay of Pollara, one of the film locations for the 1994 romantic comedy Il Postino (The Postman). Dont miss an aperitivo and dinner at La Locanda del Postino, named for the film, while watching the sun set over the bay. Be sure to explore the island on a private boat tour with Blu Salina: Antonello, an Aeolian seafarer, captains the boat while his partner Elena, an archeologist, shares cultural insights on the island. If youre lucky, you might even spot dolphins during your ride.

If youre craving pizza, Franco Manca serves the best Neapolitan-style pies on the island, while next-door Da Alfredo makes excellent granita try specialties like gelsi (mulberry) and prickly pear. For a gourmet experience in a soulful setting, treat yourself at Ristorante Signum, helmed by Martina Caruso, one of Italys most notable young Michelin-starred chefs.

Stromboli

A view of Stromboli, an island with Europe's most active volcano.

Stromboli, home to an active volcano which erupts every 20-30 minutes, is a truly unique destination. The island features black sand beaches, bright white homes and an impressive Sciara del Fuoco a steep slope where lava descends from the crater. You can only admire it from the sea, so take a boat tour with Chez Peulo for a glimpse of this major tourist attraction before sailing over to Strombolicchio, a picturesque sea stack. Youll also venture over to Ginostra, a charming borgo accessible only by sea, followed by a long flight of stairs into town. Only a dozen locals live here but its a popular spot to watch the sunset.

The charming borgo of Ginostra is home to only a handful of residents year-round.

For a scenic lunch in town, grab a table at Bar Ingrid, named after Ingrid Bergmans famous film Stromboli which spurred tourism on the archipelago in the 1950s. Nearby, artist Salvatore Russo creates expressive sculptures with lava stone in his home workshop. In the evening, make your way over to La Marina del Gabbiano, a boho chic spot where you can enjoy a Spritz with your toes in the sand, before making your way over to lOsservatorio to admire Strombolis spectacular eruptions. Set on a panoramic terrace beneath the volcano, you can enjoy local specialties while Mount Stromboli erupts in the distance. Be sure to book ahead and secure a spot in the restaurants shuttle bus so you dont have to make the trek up to dinner on foot.

Mount Stromboli erupts every 20-30 minutes.

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Aeolian Islands Travel Guide: Everything You Need To See And Do - Forbes

Introduction

Tourism is an important metric of a countrys soft power potential, marked by an increase in movement of people and enabling people-to-people connectivity. Over the last two decades, South Asia has emerged as an attractive tourist destination due to its natural and cultural diversity, and price competitiveness.[2] The region is home to tourism-based economies such as Bhutan, Maldives, Nepal, and Sri Lanka that attract high spending per traveller.[3] In 2019, the World Economic Forums Travel and Tourism Competitiveness Index (TTCI) ranked South Asia as the most improved region since 2017.[4] Within this, India has shown the greatest improvement in rank among the top 25% countries, from 40th in 2017 to 34th in 2019.

India accounts for a majority of South Asias travel and tourism gross domestic product (GDP) and has also been the preferred destination for tourists from within the region. In the last decade, India has witnessed an increase in the share of South Asian tourist arrivals. While geographic proximity and cultural affiliations are the underlying factors for high cross-border mobility, the market size and the tourists spending capacity have also played an important role. Additionally, tourist spill-overs from India to the rest of the region contribute significantly to the regional tourism economy.

This policy brief highlights tourism connectivity between India and its neighbours, capturing the tourism trends within South Asia. Given Chinas increasing tourism imports and a growing presence in the region, the brief also offers a comparative analysis of reciprocal tourism trends between South Asia and China.

Methodology

The United Nations World Tourism Organization (UNWTO) defines tourism as the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.[5] Along similar lines, the Ministry of Tourism (MoT), Government of India, defines a foreign tourist as a person visiting India on a foreign passport, staying at least twenty-four hours in the country, the purpose of whose journey can be classified under one of the following headings: (a) leisure (recreation, holiday, health, study, religion, and support), and; (b) business, family mission, meeting.[6] The definition extends to transit passengers who stay overnight in India and are counted as tourists.

The data on inbound and outbound flows is from the Ministry of Tourisms India Tourism Statistics Reports and the United Nations World Tourism Organizations (UNWTO) e-library. The inbound statistics used in Figures 1 and 2 are equivalent to outbound tourism data from each neighbouring country to India. Qualitative inputs were collected through informal interviews with officials from the Ministry of Tourism and the Bureau of Immigration in India to understand the data collection methodology and various steps taken to promote tourism.

It should be noted that the Ministry of Tourism changed its methodology in 2014, standardising it with the UNWTO methodology, and added Non-Resident Indians (NRIs) to the Foreign Tourist Arrivals (FTA) category, which together formed the International Tourist Arrivals (ITA).[7] For the purpose of analysis and standardisation of data with the preceding years, Figures 1, 2 and 5 only focus on the FTAs. The mode of arrival data in Figure 4 is from the India Tourism Statistics reports, published annually between 2010 and 2019 by the Ministry of Tourism.

This policy brief covers tourism data between India and seven of its neighbouring countries: Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka, which are collectively referred to as South Asia or N7.

Growing share of tourist arrivals from South Asia to India

Figure 1

While India declared tourism as an industry in 1982, it adopted the National Tourism Policy two decades later in 2002.[8] Supporting this, the Ministry of Tourism launched the Incredible India campaign in 2002 targeting increased tourist inflows. The impact of these developments is seen since 2003, when India started witnessing a linear growth in the total number of foreign tourist arrivals (FTAs) (Figure 1). Despite this, Indias share of global tourist arrivals remains abysmally low at 1.2% (2018).[9]

However, India is growing as an attractive tourist destination for travellers from the South Asian region. Tourists from the neighbourhood account for roughly a third of the total FTAs (Figure 1) in India. In 2018, South Asia accounted for the highest percentage share of tourist arrivals (29%) among all the regions, followed by Western Europe (21%).[10]

From 2003 to 2013, the share of South Asian tourist arrivals dipped from 23.8% to 16.9%. This declining trend registered a shift in 2014, when the share increased for the first time in more than ten years, to 21.6%. Between 2003-2013, the cumulative annual growth rate (CAGR) of total FTAs was 10%, which increased to 22% between 2013-17. Much of this shift is attributed to the rise in the number of Bangladeshi tourists.

How tweaking rules can have a big impact: The case of Bangladesh

Figure 2

A country-wise breakdown of FTAs in India (Figure 2) reveals that the top four South Asian countries for inbound foreign tourists are Bangladesh, Sri Lanka, Nepal, and Afghanistan.

For years, Bangladesh has featured in Indias list of top ten tourist source countries due to its proximity and cultural linkages. However, figure 2 shows that there has been a sudden surge in the number of Bangladeshi tourist arrivals from 2014. Between 2003-2014, the growth of Bangladeshi tourist arrivals was 1%, whereas, in 2014, the arrival of Bangladeshi tourists to India increased by 80%. Since then, the number been growing at an average annual rate of 40%. In 2018, one in every four tourists from South Asia arriving in India was from Bangladesh.

A possible explanation for this upward trend could be the liberalisation of Revised Travel Arrangement (RTA) between India and Bangladesh in 2013 and 2018. The 2013 revision brought certain changes to the provisions of the 1972 Agreement on Passport and Visa System, to remove difficulties faced by the nationals of either country in obtaining a visa.[11] Some key revisions include extending the short-term visa on medical grounds for a year, allowing up to three accompanying attendants and similar extension facility, and relaxation in the issuance of multiple-entry permits. India and Bangladesh further liberalised the RTA in 2018, to include longer employment time, student visas and five-year multiple-entry permit for the elderly and freedom fighters. [12]

In 2013 and 2018, India liberalised the Revised Travel Arrangement with Bangladesh, resulting in an average 40% year-on-year growth of tourist arrivals.

Interviews with stakeholders revealed that as a result of ease of obtaining a visa, several informal cross-border movements have been converted to formal movements. This can be exemplified by tracking movement through the formal border-crossings such as the Integrated Check Posts (ICPs) or Land Customs Stations (LCS). For example, the total incoming and outgoing passenger movement from ICP Agartala increased by 51% in 2014-15 over the previous year, and movement through Petrapole has doubled in the last five years (2014-2019).[13] The increase in registered movements also reflects the efficiency of border infrastructure, including digitisation of immigration processes.

A detailed 2018 survey on Study on Visits of Nationals of Bangladesh in India by the Indian Institute of Tourism & Travel Management (IITTM), reveals the profile, purpose and expenditure pattern of tourists and visitors from Bangladesh.[14] It found that while a majority of the tourists visited India for religious and leisure purpose 37% and 26% respectively about 14% of Bangladeshi nationals visited India for medical treatment.

Owing to the cumbersome procedure or inability to obtain a medical visa, some of them were found to have entered India through regular tourist visas. Some Bangladeshi tourists were also repeat visitors to India, with about 24% visiting India six times or more for different purposes. Furthermore, the affordability of India is an important factor for Bangladeshi tourists. The survey shows that the majority of Bangladeshi tourists spend approximately INR 8,000 (approx. USD 115) on a 5-9 day visit to India, with many dependent on public buses for transportation within India.

In the last two years, India also focused on improving visa application processes, which could further explain the rise in Bangladeshi tourist arrivals. In 2018, India inaugurated a new integrated state-of-the-art Indian Visa Application Centre (IVAC) in Dhaka its largest visa centre in the world. Additionally, the Indian High Commissioner to Bangladesh also announced the withdrawal of the appointment system for submission of visa applications.[15]

Visa barriers to regional tourism

Indias bilateral visa policies and the resultant degree of ease of access for tourists have an instrumental bearing on the number of FTAs. Within South Asia, agreements with Nepal and Bhutan exempt all nationals of these countries from requiring a visa to travel to India and vice-versa, with only minimal exceptions. Similarly, Maldivian nationals travelling to India for tourism do not need a prior visa if their period of stay in India is less than 90 days in the preceding six months.

We developed an openness index, tracking the ease of access to visas for nationals from South Asian countries seeking to travel to other countries in the region (Figure 3). The index shows that Bhutan, Maldives, and Sri Lanka have the most open tourist visa policies towards citizens of the other South Asian countries. India ranks fifth in travel openness towards South Asia, with only three countries (Nepal, Bhutan and Maldives), eligible for visa-free travel to India. By contrast, Sri Lanka offers visa-on-arrival or e-Travel Authorisation to all South Asian countries and maintains an open border with the Maldives.

Figure 3

Transportation matters: Mode of arrival

Figure 4

The mode of arrival data in figure 4 is derived from the record of all passports stamped by the Bureau of Immigration at recognised ports of entry. Qualitative inputs reveal that not all land border arrivals from Nepal are stamped, as seen in figure 3, where the majority of the reported arrivals from countries sharing a land border with India, such as Nepal and Bhutan, are via air. Informal crossings are also frequent, especially on the India-Nepal border. Furthermore, it is interesting to note that the number of road arrivals from Sri Lanka to India has been increasing. This is possibly due to religious tourism along the Buddhist circuit, with Sri Lankan citizens crossing overland into India after visiting Nepal.

Apart from serving as an indicator of the possible rise in the income profile of Indias inbound tourists from South Asia with more tourists opting for air travel the data may also reflect improvement of Indias infrastructural connectivity with its South Asian neighbours. In the last few years, there has been an increase in investments on cross-border connectivity infrastructure such as Integrated Check Posts (ICPs), airports and sea connectivity. In January 2020, for example, India and Nepal inaugurated the ICP at Jogbani-Biratnagar to facilitate trade and peoples movement. This is the second ICP on the India-Nepal border the first one was built at Raxaul-Birgunj in 2018.[16]

Additionally, in 2018 India and Nepal agreed to open four new cross-border air routes connecting the provinces of Nepal directly to India and Bangladesh.[17] India and Sri Lanka also expanded flight connectivity with the resumption of flights to Jaffna from Chennai after more than four decades. Interestingly, to support such air connectivity, the Ministry of Civil Aviation, India, waived the 5/20 rule, requiring five years of experience and a minimum of 20 flights for an airline to operate international flights.[18] In March 2019, India and Bangladesh commenced a passenger cruise linking Kolkata and Dhaka as part of the Agreements for Enhancing Inland and Coastal Waterways Connectivity. [19]

Ni Hao! South Asia welcomes Chinese tourists

Figure 5:

Tourism is a lucrative source of foreign exchange earnings. As per the World Travel and Tourism Councils (WTTC), the sector contributed US$ 234 Billion or 6.6% to South Asias total GDP in 2019.[20] There was a 4.5% travel and tourism GDP growth vis-a-vis the 5% real GDP growth in the region. While foreign tourist arrivals to the region have increased over the years, there has also been a significant increase in the contribution of tourists from the two largest economies: India and China.

A comparison of Indian and Chinese tourist arrivals in four South Asian countries Bangladesh, Maldives, Nepal and Sri Lanka reveals that while more Indian tourists visit South Asia, the last decade has witnessed an unprecedented rise in the number of Chinese tourists, approximately by 753% (Figure 5). In 2007, few Chinese tourists were visiting South Asia, concentrated mainly in the Maldives and Nepal (42% and 32%, respectively). In the same year, the number of Indian tourists was significantly more in Bangladesh, Nepal, and Sri Lanka (Figure 5).

A decade later, the 2018 figures reflect a rather different reality, with a phenomenal rise in the number of Chinese tourists to the Maldives, Sri Lanka, and Nepal. Between 2007 and 2018, Chinese tourist arrivals rose by 687% in the Maldives, and 462% in Nepal. Sri Lanka registered the highest growth in tourist arrivals from China, from just about ten thousand in 2007 to almost two hundred and sixty thousand in 2018 (a rise of 2486%).

According to the UNWTO and the Chinese Tourism Academy, China has been the worlds largest tourism source market since 2012. The number of outbound travel departures increased from 4.5 million in 2000 to 150 million in 2018, with an average annual double-digit growth of 16%.[21] However, it is reported that the market is still in its infancy. Since only 7% of Chinese citizens currently own a passport, the number of trips could surge to over 400 million by 2030.[22]

This enormous expansion of the Chinese outbound tourism market can be attributed to reasons such as increased air connectivity and a rising middle-class with growing disposable income. Between 1990 and 2016, the number of international air travellers has increased from just one to 52 million.[23] Furthermore, a profile segmentation of Chinese outbound tourists shows that women and millennials (aged between 15-34 years) dominate the market with respectively 53% and 55% of the total outbound tourist share. [24]

Between 2007 and 2018, the number of Chinese tourist arrivals has increased five-fold in Nepal, seven-fold in the Maldives, and twenty-five-fold in Sri Lanka.

Countries in South Asia reportedly gain more from tourism exports to China than India. This is reflected in the average per capita spending capacity of Chinese and Indian tourists in 2018, at approximately US$ 1850 and US$ 960, respectively.[25] In the same year, the total Chinese tourist expenditure amounted to US$ 277 billion, registering a 5% increase from the previous year. By comparison, Indias total international tourist expenditure was US$ 26 billion after a 9% year-on-year increase.[26]

Chinas increasing investments in tourism and allied sectors in South Asia could have possibly led to the rise in Chinese tourist arrivals. For instance, in the Maldives, China has invested significantly in infrastructure, housing, hotels and airlines.[27] In 2011, the Sri Lankan government sold a strategically important site, the Colombo beachfront property, to a Hong-Kong based holding company for USD 125 million.[28] Nepal and China have established direct flights from Kathmandu to Beijing through Himalayan Airlines, a Nepal-China joint venture.[29] Furthermore, Chinas Northwest Civil Aviation Construction Group, with financial assistance from the Asian Development Bank (ADB), is constructing the new Gautam Buddha International Airport.[30] During his 2019 visit to Nepal, Chinas President Xi Jinping noted that Nepal is the first South Asian country to be designated an approved destination for Chinese tourists and that there now are about sixty weekly flights connecting both countries.[31]

Conclusion

India has been the preferred short-haul destination for tourists from its neighbourhood. Tourists visit India not only for leisure and medical reasons, but also use the country for transit to other regions. Bilaterally, there have been improvements in visa policies, for example, the relaxation of the India-Bangladesh visa policy in 2013 and with the Maldives in 2019. However, there are still significant challenges towards promoting free and open intra-regional tourism such as visa-openness, gaps in cross-border infrastructure, etc. China, on the other hand, has been increasing its presence in the region, with a growth of 753% in the last decade (2007-2018). It has also made significant investments in South Asias tourism and hospitality sectors.

Recently, the COVID-19 pandemic has presented unforeseen challenges to global tourism. With geography gaining significance and the importance of shorter distances becoming more pronounced, regional tourism is likely to grow. Governments must thus pivot to focus considerably more attention on regional tourism through investments in infrastructure and services, particularly digitisation to reduce human transactions. India, in particular, will have to leverage the wide range of cultural similarities with its neighbours such as the regional Buddhist trail and pilgrimage, etc. Such a push would also contribute locally through employment and revenue generation from foreign exchange earnings.

Policy Recommendations

Several steps can be taken to ensure a seamless flow of tourists in India and its neighbourhood:

Further Readings

Renton de Alwis, Promoting tourism in South Asia, in Sadiq Ahmed, Saman Kelegama & Ejaz Ghani (Eds.), Promoting economic cooperation in South Asia: Beyond SAFTA, (Washington, DC: The International Bank for Reconstruction and Development/The World Bank, 2010), P. 259276.

Annual Report 201718, Ministry of Tourism, Government of India, http://tourism.gov.in/sites/default/files/annualreports/Annual%20Report2017-18.pdf

Golam Rasul and Prem Manandhar, Prospects and Problems in Promoting Tourism in South Asia: A Regional Perspective, (South Asia Economic Journal, October 1, 2009) Volume: 10 issue: 1, page(s): 187-207, https://journals.sagepub.com/doi/abs/10.1177/139156140901000108?journalCode=saea

Guidelines for Success in the Chinese Outbound Tourism Market, (Spain: UNWTO and China Tourism Academy, 2019), https://www.e-unwto.org/doi/pdf/10.18111/9789284421138

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Travel South Asia: Indias tourism connectivity with the region - Brookings Institution

If you had the chance to travel to Barbados and work by the beach, would you?

Five months ago, working outside the office, even just temporarily, was a pipe dream for most employees. Then the coronavirus pandemic hit. Businesses remain shuttered around the globe to enforce social distancing, and working remotely has become the newand, for some, newly permanentnormal. Once encumbered by long and expensive commutes, employees now find themselves untethered from a traditional workplace, taking Zoom meetings from their living rooms instead. According to Global Workplace Analytics, an estimated 25 to 30 percent of the worlds workforce will be working from home multiple days a week by the end of 2021.

But if theres one takeaway from spending months quarantined at home, its that staring at the same four walls can grow old very quickly. More than ever, telecommuters are dreaming of shaking things up and escaping life for a little while. In fact, Barbados is banking on it.

On July 24, the country opened applications for its new 12-month Barbados Welcome Stampa special visa for remote workers who want to trade home for island life for up to a year at a time.

The visa program comes in direct response to current COVID-19 travel restrictions, in which lengthy, mandated quarantines restrict short-term travel. "[With the Welcome Stamp,] we have a mechanism that allows people who want to take advantage of being in a different part of the world, of the sun, sea, and sand, and a stable society; one that functions well," says Prime Minister Mia Mottley.

And the application to live and work in Barbados for up to a year? It's not that complicated.

To apply, you'll need to submit documents like passport photos and a copy of your birth certificate on the dedicated website, and answer questions about the work that you will be doing on the island. (As a reminder, you can do remote work for your existing company, but can't be employed in Barbados on this visa.) The program is open to anyone with an expected income of at least $50,000 in the next 12 months. If you're considering applying with your spouse or children, you'll have to pay $3,000 for the family bundle and submit the same paperwork mentioned above for them too, otherwise, it'll cost $2,000 if you're applying solo. And you won't have to wait long to find out if you can relocate beachside, as the government says it should take under seven days to get approval for the Welcome Stamp.

The prospect of working from a beach is more than tempting. Being by the ocean has been proven to boost your mood and your healthboth of which can suffer under self-isolation. At the same time, the stamp would also help jump-start the islands economy by bringing in additional tourism dollars for local businesses. Barbados is among the top 20 countries most dependent on travel and tourism as a source of GDP, according to the World Travel and Tourism Council.

Its worth noting that this new opportunity to work remotely has appeal beyond cabin fever. As the Black Lives Matter movement grows across the U.S., Black Americans are increasingly looking to move abroad to escape the institutional racism and discrimination still so persistent in America. It remains to be seen whether Barbados will market this opportunity specifically to Black Americans to capture a portion of their massive spending power, but theres no question that tourism boards play a large role in making travel more accessible and inclusive.

Barbados began welcoming international travelers back on July 12, with JetBlue and American Airlines are resuming commercial flights from the U.S. on July 25 and August 5, respectively.

This article was originally published on July 9, 2020. It has been updated with new information. Additional reporting by Meredith Carey.

We're reporting on how COVID-19 impacts travel on a daily basis. Find all of our coronavirus coverage and travel resources here.

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Applications for the Barbados Welcome Stamp Are Open - Cond Nast Traveler

NORTHFIELD Jul 29, 2020 (Thomson StreetEvents) -- Edited Transcript of Mondelez International Inc earnings conference call or presentation Tuesday, July 28, 2020 at 9:00:00pm GMT

Mondelez International, Inc. - Chairman & CEO

Mondelez International, Inc. - Executive VP & CFO

Mondelez International, Inc. - VP of IR

Sanford C. Bernstein & Co., LLC., Research Division - Senior Analyst

Evercore ISI Institutional Equities, Research Division - Senior MD & Fundamental Research Analyst

* Jason M. English

* Kenneth B. Goldman

Good day, and welcome to the Mondelez International Second Quarter 2020 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by Mondelez management and the question-and-answer session. (Operator Instructions) I'd now like to hand the call over to Mr. Shep Dunlap, Vice President, Investor Relations for Mondelez. Please go ahead, sir.

Shep Dunlap, Mondelez International, Inc. - VP of IR [2]

Good afternoon, and thanks for joining us. With me today are Dirk Van de Put, our Chairman and CEO; and Luca Zaramella, our CFO. Earlier today, we sent out our press release and presentation slides which are available on our website.

During this call, we'll make forward-looking statements about the company's performance. These statements are based on how we see things today. Actual results may differ materially due to risks and uncertainties. Please refer to the cautionary statements and risk factors contained in our 10-K, 10-Q and 8-K filings for more details on our forward-looking statements.

As we discuss our results today, unless noted as reported, we'll be referencing our non-GAAP financial measures which adjust for certain items included in our GAAP results. In addition, we provide our year-over-year growth on a constant currency basis unless otherwise noted. You can find the comparable GAAP measures and GAAP to non-GAAP reconciliations within our earnings release and at the back of our presentation.

In today's call, Dirk will provide a business update, then Luca will take you through the financials and our outlook. We'll then close with Q&A. With that, I'll now turn the call over to Dirk.

Dirk Van de Put, Mondelez International, Inc. - Chairman & CEO [3]

Thank you, Shep. Let me start off by sharing an overview of our Q2 performance on Slide 4. Overall, we are pleased with our results, our business has been resilient, and our execution has been strong. Our first priority remains the safety and well-being of our colleagues and our communities as we navigate COVID-19. Because there still are areas of high risk, we are preparing the reopening or already have opened some of our offices around the world. And it is clear that the situation will remain volatile for at least the remainder of the year.

Our second priority also remains business continuity. I'm very proud of what our colleagues have and are doing to keep our operations running well. Here also, we need to remain vigilant because with the growing number of cases, the risk of business disruption continues to exist around the world.

Our overall results for Q2 are good. Despite the fact that COVID has impacted various markets in quite different ways. Our portfolio of trusted brands as well as excellent execution have helped us to weather the high volatility reassuring us that our business fundamentals are solid. Particularly our execution in supply chain as well as our commercial operations have been superior in a very challenging environment. For instance, today, approximately 90% of our plants are running in line or above historical performance. Although we had already good market share momentum going into the crisis, this combination of the strength of our brands and our superior execution have helped to drive unprecedented gains.

While the business environment globally remains very volatile, our strategy has proven to be a strength in these difficult circumstances, so we don't see a need to make changes, but we do see opportunities to double down and accelerate certain areas. For instance, due to our current momentum, some overall cost savings and our market share momentum, we are increasing investments in our brands in H2. That virtuous cycle of investment in our brand is an anchor stone of our strategy.

Looking at the second half, we expect to see volatility continuing but we are well positioned for several reasons. Overall snacking tends to be a very resilient category, even in times of recession, meaning we are generally in the right categories. Our brands are some of the most preferred brands in our categories, both local and global. Our geographical footprint is diversified, meaning that while COVID might impact one location, others might be doing better. And finally, our people are responding very well with agility and resilience, and our local-first culture is an advantage in this environment where decision-making needs to be fast and made with the local consumers in mind.

Switching to Slide 5. Despite serious challenges caused by COVID effects on trade channels and consumers, we delivered solid results across the board, giving us confidence for sequential improvement in the second half as well as confidence to maintain the course of the strategy we announced almost 2 years ago. Our revenue growth was 0.7% in Q2 and is 3.7% for the first half. I consider this pretty good given that during the quarter, at one stage or another, every country and many trade channels were in lockdown.

There are parts of our business that have slowed down significantly, such as the gum category, world travel retail, away-from-home and the traditional trade channel in some key emerging markets. At the same time, the grocery business in most of the world is well above normal trend. The combination of these 2 extremes give an almost 1% growth as an average, which we feel good about given the circumstances.

Emerging markets were more affected than developed markets and declined in Q2. The good news is that they showed a sequential improvement during the quarter, and they exited the quarter with growth. We are maintaining or gaining share in markets, representing around 85% of our revenues in year-to-date 2020. This is driven by a number of key reasons. We are seeing consumers turning to brands and products they trust. We have many of these trusted brands around the world. Within our category, there is also a shift to segments that are better fit for at-home consumption. So we are stronger in these segments like tablets versus pralines or bars in chocolate. And our supply chain has kept functioning quite well throughout a shortage of labor or lockdowns providing us with a competitive advantage.

Our adjusted EPS grew 16.1% in Q2 or 8% for the first half. Luca will provide the details, but despite the extra COVID-related costs, our operating income fell only marginally. Thanks to some offsetting cost-containment activities. We generated very strong cash flow. In the first half, free cash flow was $1.1 billion, and we raised our quarterly dividend by 11%.

Transitioning to Slide 6, as mentioned, our long-term strategy does not change. But seeing our current momentum, we are accelerating some initiatives which will allow us to emerge even stronger from this crisis. As it relates to growth strategies, we are planning a significant increase in investments behind working media in the second half, capitalizing on the strength and demand for our brands and built on our increased market share. We are also making adjustment to some of our advertising copy and campaigns to make them more relevant in the current context.

Seeing the fact that the consumer is driven more to our core offerings, it is an ideal moment to simplify our portfolio as well as our innovation pipeline to focus on our value-driving core. So we are removing 25% of SKUs which will simplify our supply chain, reduce our cost and inventories and increase our sales in -- and our customer service. With the consumer probably focusing more on value, we are amplifying and accelerating our efforts on revenue growth management, and we believe there is significant potential to capitalize on the increase in e-commerce, particularly with many first timers buying their groceries online.

In execution, we were always very cost conscious, but we're taking a fresh look at cost opportunities, reducing in areas like travel and office costs. Costs also benefits from a smaller number of projects and initiatives as well as the reduction of our inventory levels. Out of an abundance of caution, we've decided to only invest CapEx this year in essential projects. And we are accelerating a number of key supply chain initiatives which are aimed at improving our efficiency.

Finally, all of these changes are enabled and underpinned by the continued evolution of our culture. Our local-first approach is enabling agile decision-making and adaptation in market. We also see we can evolve the way our people work, helping them with a better balance of life-work. For instance, going forward, we see more people working more time from home.

Some of the changes due to COVID will be permanent. So we're redeploying resources to the areas with the highest return opportunities and areas that will be critical post COVID, as an example, e-commerce.

Now moving to Slide 7. Despite the current volatile and unpredictable environment, we believe ESG is as important as ever, if not more so, and we remain committed to making progress in this space. In terms of social impact, we have now made cash and in-kind donations of more than $25 million related to COVID-19, through product donations but also cash support as actions by brands and teams to donate PPE and other essential items. Our responsibility, the communities we operate in has also been highlighted by the recent attention on the racial justice and equality movement. Without question, there is no place for racism in our company or in our society, and it's critically important that we, along with other companies, show measurable action in helping to redress some of the injustices that exist in our society.

My leadership colleagues and I have spent time listening to our employee resource groups and colleagues across the business. We've heard that colleagues want actions that are sustainable, impactful and generally make a difference. We want to build on our historical efforts in this area, and so we've organized ourselves across 3 pillars: colleagues, culture and communities.

In our supply chain, we continue to advance our work on creating a sustainable supply of critical ingredients. One of the biggest challenges in this space is deforestation, and the result impact -- or the resulting impact on CO2. This quarter, we have launched as part of the Consumer Goods Forum, the Forest Positive Coalition with other CPG companies encouraging our suppliers to be more transparent on the land used to grow our ingredients. And finally, we are on track to meet our 2025 goal of 100% recyclable-ready packaging.

I'm proud of the fact that we've been continuing to work on these critical long-term ESG topics throughout this crisis. And with that, I hand it over to Luca.

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Luca Zaramella, Mondelez International, Inc. - Executive VP & CFO [4]

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Thank you, Dirk, and good afternoon. Second quarter performance was solid in terms of growth, share gains, earnings and cash flow given the circumstances. We delivered positive revenue growth through a combination of resilient categories and superior execution despite facing significant disruptions and operating restrictions from the crisis.

Our developed market continued to perform well, with strength in North America and Europe mass retail, confirming elevated momentum as seen in Q1. Emerging markets were significantly impacted by broad lockdowns, especially during April and into May. Despite this dynamic, we are doing well on a relative basis compared to peers as we are gaining share.

I would like to unpack our top line cadence to give you some context of how we ended the quarter, as that might be more indicative than the pure Q2 number. Prior to COVID, we were seeing strong momentum in both developed and emerging markets, and that was both due to snacks categories, momentum and share gains. Once we move into late March and for the month of April, we saw significant divergence between developed and emerging.

In developed markets, we saw a spike in consumption. And despite some challenges, our ability to operate was still okay. On the flip side, we enforced lockdowns and curfews in emerging markets. We encountered significant operating restrictions. These markets were most impacted in April with double-digit top line declines as high percentage of outlets were inaccessible to consumers and to us. As a result, total revenue declined low single digits in April. As we moved into May, things began to improve. And in June, our emerging market turned positive and posted low single-digit growth. We expect this trend of improving growth to continue into July as the majority of these markets are on better footing. We also expect strong demand in North America and Europe mass retail, albeit not as elevated as in H1, but total company is trending better in July than in Q2.

Turning to Slide 11. You can see that Q2 revenue growth was driven by positive volume and pricing. This comes despite some significant mix headwinds presented by lower revenue from world travel retail and gum. Biscuits is seeing elevated demand and led growth at more than 9%. Chocolate declined slightly, but this includes 3 points of headwinds from world travel retail. In addition, chocolate was also impacted by lockdowns in emerging markets, mostly India. It is worth noting that India was nearly flat in May and posted positive growth in June. Gum and candy declined double digit, primarily driven by gum as it skews towards away-from-home consumption and convenience. This channel has seen significantly reduced traffic during the crisis.

Turning to category and share highlights on Page 12. Consistent execution, preferred brands and our investments in brands and capabilities continue to drive strong share results. Year-to-date, we have held or gained share in 85% of our revenue base, and our overall share is as high as it has ever been. Biscuits and chocolate drove the overall outcome. More specifically, we gained share in the latest 3-month period across a number of our biggest markets including U.S. biscuits, Europe, with U.K. and Russia and France standing out; in EMEA, China and Vietnam biscuits, but also Australia, New Zealand and India chocolate; in Latin America, we saw some improvement in Brazil chocolate and powder beverage share, along with Mexico.

Our categories held up relatively well with the exception of gum. However, it is important to note that year-to-date category growth of 4.5% doesn't reflect unmeasured channels, such as convenience and world travel retail or the lag effect of some emerging market readings.

Now let's review our profitability performance on Slide 13. As expected, our estimated COVID-related costs during the second quarter were more than $100 million, including over time, protective equipment, frontline bonuses, incremental logistics costs and lower cost absorption in emerging markets. Ex this cost, gross profit would have shown solid growth in line with last year's growth rate. In fact, volume leverage in both North America and Europe as well as cost containment efforts across the business enabled us to offset much of this on a gross profit basis as it declined less than $10 million versus previous year.

Operating income declined 3.8% for Q2 due to the decline in gross margin, which was partially offset by lower A&C and higher overhead due to COVID as well as the other line impacted by some legal accruals. We continue to expect COVID-related costs in the second half, however, we believe improved leverage and cost mitigation efforts will more than offset these dynamics as we progress through the second half. Especially in Q4, with Q3 still somewhat impacted.

Moving to regional performance on Slide 14. North America grew 11% driven by strong share gains and elevated biscuit consumption. Our DSD network continued to demonstrate its value in keeping shelf stock and enabling significant share gains. Gum was down double digits. North America operating income increased by more than 20%. North America will continue to grow above the historical rates, but we expect lower growth than Q2 as we move throughout the year.

Europe revenue declined 1.2% in the quarter. Headwinds from world travel retail, which was a drag of 2.5 percentage points as well as gum and the instant consumption channels drove this dynamic. We saw strength and good execution in several key markets, including mass retail which grew high single digits, and in chocolate, where we posted significant share gains in the U.K., in France, in Russia and Benelux. Although we expect continued challenges in world travel retail, we are more constructive on the state of convenience and traditional trade, which are expected to be much less of a headwind in the second half. We saw improved exit rate in June and good growth into July. Overall, we expect EU to return to growth in Q3, unless there is a material COVID relapse.

Adjusted OI dollars declined as a result of significant COVID costs and unfavorable mix. These results should improve as we progress through the second half of the year.

EMEA declined 3.1% with conditions that vary greatly by market. China continued to recover, growing double digits. Southeast Asia grew mid-single digits. India declined double digit due to significant lockdowns and store closures in April and May before it turning to mid single-digit growth in June. As we move into the second half, and based on the dynamics we see today, we are expecting this improvement to continue, unless there are additional shutdowns in key markets.

AMEA operating income dollars declined by approximately 5%, due primarily to lower-than-typical volume leverage and additional coverage-related expenses. AMEA executed well on cost containment actions.

Latin America decreased 11% due to traditional trade disruptions in most of the key markets, while Argentina posted growth due to inflation-driven pricing. Ex Argentina, Latin America declined by 15%. Mexico declined low double digits due to a significant decline in gum and candy. In Brazil, we declined high single digits due to significant disruptions in traditional trade. Our Western Andean countries, which were among the most impacted by COVID, also declined. We did see improving share trends in several notable markets.

Adjusted OI dollars in Latin America declined by 78%, primarily due to headwinds associated with negative mix, under absorption and an accrual for a legal-related matter that accounted for 1/3 of the decline versus previous year. We expect the environment in Latin America to remain challenging in the second half given the restrictions in place in most markets and the impact that those restrictions are having on economic growth. We remain focused on what we can control, which is executing our plans and driving better share performance.

Now turning to earnings per share on Slide 18. Q2 EPS grew 16%. Operating gains in the quarter were impacted by COVID costs, which were north of $100 million which means more than $0.07 impact.

I'll now move on to our free cash flow on Slide 19. We delivered free cash flow of $1.1 billion in the first half. Strong working capital discipline was a big driver as we improved our cash conversion cycle by eight days. We also had deferred tax payment for more than $200 million, which will mostly reverse in the second half as well as lower CapEx and cash restructuring. Our priorities for the remainder of the year stay clear, and we will continue to be disciplined.

I wanted to provide some thoughts on our joint ventures, specifically our participation in the successful IPO of JDE Peet's. Prior to transaction, we exchanged our JV investments for an investment in JDE Peet's. JDE Peet's then went public for EUR 31.50 per share at the end of May. The stock now trades at around EUR 38 per share, which places the value of our stake at approximately $5 billion. This was a great result as it provides more flexibility and a public bar for this financial investment.

Moving to Slide 22. As previously disclosed, due to the COVID pandemic, visibility remains limited at this time in a number of key markets. As a result, we are not providing a full year financial outlook. However, we continue to expect the following for 2020: an effective tax rate in the low to mid-20s; adjusted interest expense of approximately $380 million; and we now expect exchange translation to negatively impact our reported revenue by 3% and EPS by $0.05 based on current market rate. Although we're not providing full year guidance at this time, I wanted to share some thoughts regarding how the second half will play out.

We expect improving conditions in many markets that experienced significant store closures in late Q1 and Q2. In-home consumption is expected to be at elevated levels, which is helpful in developed markets such as North America. And we expect to make critical investments behind our brands to continue to drive momentum on a relative basis. On the flip side, we expect the negative impact to continue in some emerging markets, mostly in Latin America. World travel retail is expected to continue its negative trend. And although there is no way to know exactly how the pandemic will evolve, there will always be a potential for a second wave of shutdowns. In aggregate, we expect positive revenue and the sequential improvement in the third quarter based on what we see through month 1 of Q3.

With that, let's open it up for Q&A.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And your first question is from the line of Ken Goldman with JPMorgan.

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Kenneth B. Goldman, JPMorgan Chase & Co, Research Division - Senior Analyst [2]

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Two for me, if I can. I wanted to first touch on your share gains. Some of these gains, I think, are due to your North America supply chain, which obviously is quite advantaged and some perhaps due to your competitor struggles globally. But you did highlight some brand strength, other positive factors in your prepared remarks. So just as you think about your expectations for market share in the back half of the year, can you walk us through what you think some of the more sustainable drivers are. I'm guessing higher marketing spend is one of them. And maybe what drivers could back off a little bit versus the first half.

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Dirk Van de Put, Mondelez International, Inc. - Chairman & CEO [3]

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Ken. Yes, sure, with pleasure. If I maybe explain where are the share gains happening and then go a little bit into the drivers and then in what we think will happen. First of all, as we said in the presentation, we've gained share in 85% of our revenue base, so it's very broad-based. It is in biscuits. It's in chocolate. It's across the geographies, I would say, almost in every single market around the world and certainly not important markets. We see significant market share increase. For instance, biscuits China, biscuits U.S., biscuits in France, but also chocolate in the U.K., chocolate Australia, chocolate India. And we also see it across smaller categories. So it's very widespread. And on top of it, we see that it's our global and our local brands. It's not just one brand. It's across our brand. And one of the interesting factors that our penetration of our brand is increasing overall, and also that we see some very good repeat of those new users.

So what is the reason? I think fundamentally, during the COVID crisis there, there are 3. First of all, as you alluded to, we have had a very good performing supply chain around to market. You could sort of say that not only in the U.S., but in other markets, we increased our share of the distribution points. Not so much because we increased our distribution, but customer service level and our on-shelf availability was better than our competition. And so for instance, in the U.S. or in other markets around the world, DSD is a key advantage.

The other one is that we usually have sort of the strongest brands in our categories around the world. And consumers have been going back to the brands they know and trust. And so an Oreo, as an example, or a Milka or some of the other local brands that we have, have clear consumer trust. And we see -- that's why we see all of them increasing their share also.

And then within snacking, if you look at it sort of category by category, we are in those segments within the categories that are benefiting from at-home consumption. For instance, tablets in chocolate do better than bars or better than pralines. And in biscuits, it's your more traditional biscuits that is a segment where the consumer is going to.

I would say these are the 3 big drivers. When will they go away? Well, it's difficult to say. Supply chain, I assume that everybody is catching up on their supply chain. Although with what we are seeing in the U.S. and some other places around the world, having your supply chain perform is not as simple as it might sound. I do think that this trend to go to bigger brands and more known brands is here to stay for a while. And then the mix with the in-home consumption, I think that's going to last for a while, too. We are now clearly talking about this change to our lives continuing well into 2021.

I would also like to point out that we have momentum before the crisis. We were already increasing our market share before this started. And so underlying, there is a fundamental share increase that was taking place. I also think the repeat rates of our brands of the new users, that's important to notice. And then I talked about that increase in working media with significant increases in the second half of the year, which should also give a good pull on our brand.

And then I think what we're doing with our business, simplifying everything, eliminating SKUs, going to fewer innovations, all that will give us even more strength in execution. So overall, I'm pretty optimistic. I think that a big part of this market share will stick.

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Kenneth B. Goldman, JPMorgan Chase & Co, Research Division - Senior Analyst [4]

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That's helpful. And then quickly on my follow-up, speaking of the higher marketing spending, you talked about in the third quarter -- I know you're not giving guidance today, but I wanted to poke it a little bit into what you were talking about to make sure I understood. You talked about better revenue into the third quarter, and you've talked about some simplification of the business. But you've also talked about ramping up your marketing spending, like I said. So just trying to get a sense among all these factors and maybe some that I'm missing. Is it reasonable to expect improved operating income in the third quarter as well in addition to better revenue. And the reason I'm asking is The Street's modeling an increase year-on-year in your third quarter EBIT. Is this reasonable given what you know right now? Or is it really just too early to say?

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Luca Zaramella, Mondelez International, Inc. - Executive VP & CFO [5]

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I can maybe -- I'll...

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Dirk Van de Put, Mondelez International, Inc. - Chairman & CEO [6]

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Maybe, Luca, you want to take this one? Yes.

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Luca Zaramella, Mondelez International, Inc. - Executive VP & CFO [7]

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Yes. I'll -- welcome back, Ken. Nice to have you again on the line. Yes. Look, I believe it is a little bit premature to give you a precise number here, but we gave you a few indications in the prepared remarks for Q3 enough to -- simply said, we expect North America to continue with increased momentum. Certainly, we are not going to see as high of a number as we saw in Q2. Having 11% top line was fairly exceptional and 20-plus percent OI. Europe is expected to return to growth overall despite world travel retail. And I would expect, for sure, better profitability and better leverage. Some of the COVID costs will subside. AMEA as well is expected to return to growth in Q2 -- in Q3. And there should be, again, lower COVID cost and better volume outcomes.

Latin America is, quite frankly, expected to meaningfully improve, particularly on the OI line into Q3, but we are not going to see necessarily a positive year-on-year profit. So I would say that overall top line for Mondelez in Q3 is expected to be better than Q2. As we look at July, we see good numbers coming in at this point in time. But obviously, I have to make a disclosure here, which is -- that is absent a material relapse or issue in one of the biggest market or in more than one.

As far as bottom line is concerned, I think there will be a sequential improvement in Q3 from where we see today. Whether it will be all the way to bright, I am not sure as there will still be some COVID-related cost and all the actions we are putting in place actually will come into full fruition in Q4. So you will see some improvements in Q3, but you will see even more in Q4 from what we see today.

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Operator [8]

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And your next question is from the line of Andrew Lazar with Barclays.

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Edited Transcript of MDLZ.OQ earnings conference call or presentation 28-Jul-20 9:00pm GMT - Yahoo Finance