S Puvaneswary, Kuala Lumpur (2010-09-30)

THE DEVELOPMENT of Terengganu's Lake Kenyir into a duty-free area has attracted concerns from inbound tour operators.

Said to be the largest man-made lake in South-east Asia, Kenyir had been recently declared a Duty Free Zone and there are plans to turn the area into a top holiday destination over the next two years.

The state government will inject RM100 million (US$32.4 million) into infrastructure such as a duty-free complex, and it wants to woo investors of branded attire and other consumer products to set up outlets.

Ping Anchorage Travel & Tours' CEO Alex Lee acknowledged that the move could attract more international tourists to Kenyir, which is still relatively unknown. However, building materials used and products sold should be eco-friendly, he added.

Asian Overland Services Tourism & Hospitality Group's group managing director Anthony Wong was also worried that the aim to turn Kenyir into a shopping paradise may jeopardise its natural attractions.

Said Wong: “Nature is its selling point. We don’t want to turn Kenyir into a township at the expense of its natural charms. Tourists come here to see what is natural. A better place for a Duty Free Zone is in a city or town where there is already good accessibility.”

Sim Kok Chwee, Singapore (2010-09-30)

SINGAPORE Airlines (SIA) will make its first foray into the South American market when it launches thrice-weekly B777-300ER flights to Sao Paulo via Barcelona from March 2011.

It joins Malaysia Airlines – which has direct services to Buenos Aires in Argentina – as the only South-east Asian carriers with direct services to South America.

SIA will operate the Barcelona-Sao Paulo sector on a codeshare with its Star Alliance partner Spanair, adding to codeshare services to Spanish cities such as Bilbao, Madrid and Palma Mallorca.

Permission was granted by the Spanish Ministry of Public Works on September 8 on condition that the Barcelona-Sao Paulo route would be operated in cooperation with a Spanish carrier.

The airline's senior executive vice president of marketing and corporate services, Bey Soo Khiang, said: “This new service will help boost ties between Singapore and Brazil and pave the way for enhanced trade, tourism and travel links between Asia and South America.”

SIA currently operates daily services to Barcelona via Milan. As a result of the new services to Sao Paulo, Barcelona will be served by thrice-weekly non-stop services from Singapore and four times weekly via Milan. Three new non-stop Singapore-Milan services will be added to ensure this city continues to be served daily.

Raini Hamdi, reporting for TTGmice, Singapore (2010-09-30)

PERTH Convention Bureau (PCB) has appointed its first full-fledged marketing representative overseas – in Singapore – a huge step for the Australian state which competes with aggressive Melbourne and Sydney for Asian corporate and association meetings.

There is just one other representation overseas, but in the form of an “agent general”, in London.

A team of three from Singapore company Xzodus will work out of the Tourism Australia office in Singapore, generating business events leads from the Singapore and Malaysia markets.

“The bureau is coming of age (established in 1972). It has to showcase why and how it does things and has gained acceptance of the public,” PCB chairman Ian Laurance told TTGmice at a function yesterday evening to mark the expansion.

“The last financial year 2009/2010 also saw the bureau achieving the highest delegate spend ever in its history, A$93 million (US$89.9 million) (through secured bids to be held over the next four years), an increase of about 14 per cent. If you've done well, you need to look at new areas of growth.”

Currently, less than half of its MICE business is international. PCB managing director Christine McLean said the business from Asia was predominantly incentives and conferences, but there was potential for Asian association meetings.

McLean unveiled last evening The Menu Campaign where planners were guaranteed special perks, including an audience with Lord Mayor of Perth Lisa Scaffidi, who was also present last evening.

- Full report, TTGmice, November issue

Mimi Hudoyo, Jakarta (2010-09-30)

IN response to growing MICE demand for Indonesia, the Tourism Indonesia Mart and Expo (TIME) will see corporate buyers attending for the first time.

Its PCO Pacto Convex project manager, Tiara Hasibuan, said: “We have had some incentive planners before, but this year we are inviting corporates as well. We expect MICE buyers to comprise 20 per cent of the total buyers.”

The B2B tourism event, which will be held from October 12 to 15 at Sentosa Villas & Resort, is being held in Lombok for the second time.

TIME host committee chairman, Awan Aswinabawa, said: “MICE has been a growing market for Lombok in the last couple of years. Last year, the market segment grew by 20 per cent over 2008.

“We hope TIME will be a platform for further growth of this market besides the leisure market.”

The event is expected to attract 150 buyers and 150 sellers this year.

Bangkok (2010-09-30)

AMADEUS has signed a long-term content agreement with the Cathay Pacific Group, granting travel agents access to an extensive range of Cathay Pacific and Dragonair fares, schedules and availability.

The new agreement offers Amadeus subscribers in Asia access to the same level of fares, availability and functionality – under the same conditions – as any other travel agent content channel.

"Travel agencies remain a key sales channel for Cathay Pacific," said Clarence Tai, general manager of sales and distribution for the airline. "It is critical that our travel agency partners have access to a broad range of fare products of Cathay Pacific and Dragonair.”

Gurgaon (2010-09-30)

EXPEDIA, Inc.'s corporate travel unit Egencia is expanding its Egencia Global Alliance (EGA) by partnering TMCs in Denmark, Finland, Greece, Norway, Philippines, Poland, South Africa, Sweden and Thailand.

This brings its network to 25 countries in less than a year, and Egencia plans to continue breaking into new markets to support its growing service of multinational clients.

Sirima Eamtako, Bangkok (2010-09-29)

A PROPOSED green tax levied on flights departing from Germany from January 1 could cause a backlash of reduced bookings for long-haul destinations, especially with the tax collection coming into effect from September 1.

Under the proposed law, a tax rate of 45 euros (US$61) will apply to flights farther than 6,000km, such as Asia-Pacific and North and South America, 25 euros to medium-haul flights to Middle East and Africa, and eight euros to domestic and European cities.

Transorient Asia general manager Andre van der Marck said the new tax, along with higher prices from the appreciating Asian currency, may well keep German travellers within Europe.

- Full report in TTG Asia, October 1

Esther Lew, Singapore (2010-09-29)

SEYCHELLES Tourism Board opened its regional office in Singapore this week, with the aim of repositioning the destination among travellers.

Myrna Michel, director of Asia and Australasia, said Seychelles had been perceived primarily as a honeymoon and high-end luxury destination, and her office was keen to showcase the diverse attractions that set it apart from the Indian Ocean islands of Mauritius and Maldives.

Michel said: “We will be exploring the potential of niche tours such as ecotourism, photography tourism, cultural tourism and adventure trips to widen the appeal of Seychelles to Singapore travellers.”

Besides equipping travel agents with marketing material such as posters, brochures and videos, the NTO also wants to host fam trips.

However, local agents said the limited air access into Seychelles was still a huge hindrance to growth. There is only one direct weekly service operated by Air Seychelles and from November, the flight will make a stop in Chennai.

A spokesman from Air Seychelles said that flight frequency of the current service, which was operating at 80 to 90 per cent load capacity, might be increased if there was sufficient demand.

The NTO said it hoped to approach other carriers to launch Seychelles flights, naming Singapore Airlines as a possibility.

Sirima Eamtako, Bangkok (2010-09-29)

BANGKOK-BASED Asia World, which expanded into Indonesia in August, has secured another outfit in Sri Lanka and is expected to announce offices in five more countries in South-east Asia next week.

Asia World Sri Lanka, slated to kick off end-October, will be a newly established entity, replacing Lanka World Travel, which Asia World managing director Stephen McEvoy holds a sizeable share in.

He and a local Sri Lankan partner will equally own the new set-up, which will remain a member of Asian Connections, the regional marketing alliance co-founded by Asia World.

McEvoy said he was also in talks with two other partners to form Asia World in five more countries in South-east Asia.

- Full report in TTG Asia, October 15

Raini Hamdi, Singapore (2010-09-29)

THE SEARCH for a new PATA CEO begins this week with PATA inviting applicants from its membership and outside to fill the spot that will be vacated by Gregory Duffell in February.

Hiran Cooray, PATA chairman, said three executive board members, Richard Beere, Bill Calderwood and Anthony Wong, would “walk alongside Greg” in carrying on PATA strategic directions and programmes while a four-man recruitment committee headed by him searched for a new CEO.

Asked if he would relook the list of the applicants who applied for the job in 2008, a couple of them veteran PATA players and two from within the association, he said: “It’s better to start afresh. Some of them might have moved on to other jobs.”

_ Full report in TTG Asia, October 1

S Puvaneswary, Kuala Lumpur (2010-09-29)

ASIAN Overland Services (AOS) Tourism & Hospitality Group is expanding its wellness arm overseas with an Anti-Oxidant Centre to open in Singapore this December.

AOS currently operates a 14-bed Anti-Oxidant Centre in Kuala Lumpur. 

Working with a Singapore-based partner, its 19-bed facility at Upper Thomson Road will provide antioxidant sauna treatments using far-infrared rays.

Group managing director, Anthony Wong, said he was also in talks with an Indonesian beauty operator to open a similar centre in Jakarta. “We want to start a franchise next year and eventually have centres across Asia.”

AOS' 118-room, four-star beach resort Frangipani Langkawi Resort & Spa will also offer such treatments once its hotel spa opens, scheduled for year-end.

Singapore (2010-09-29)

THE NUMBER of tourists to Singapore jumped 18 per cent to reach 996,000 in August, marking the ninth consecutive month of record visitor arrivals to the city-state.

This is its highest number of arrivals recorded for the month of August, and the Singapore Tourism Board said yesterday this was partly due to the draw of the two Integrated Resorts, the inaugural Youth Olympic Games and the continuing strength of the Asian economy.

Fourteen out of Singapore's top 15 markets registered positive year-on-year growth in August, with China, Thailand and Vietnam seeing the highest growth. Indonesia, China, Malaysia, Australia and India were the country's top five visitor-generating markets in August.

Hotels also saw average room rate rise by 24.7 per cent over August 2009, translating into a 37.1 increase in hotel room revenue compared to a year ago.

Karen Yue, Singapore (2010-09-28)

SINGAPORE-BASED CTC Tourism Holdings now wants to go beyond being an outbound player and compete as a DMC and event planner.

Speaking to TTG e-Daily at the opening of its new office at One Commonwealth, CEO Wee Hee Ling said CTC was looking to handle overseas MICE groups in Singapore and intra-region. CTC already handles some Singapore-based incentive groups.

“That is our direction for 2011. And we are supporting that with a 100 per cent increase in our current MICE team of 10 people by next year,” she said.

Wee also revealed plans to develop an event management specialisation. Its new theme restaurant and theatre Yu Shanghai, which its subsidiary Connections Restaurant Management (Shanghai) opened earlier this year, is fast rising as an event venue.

It is looking to add another venue to its Shanghai portfolio next year, which it will market. Connections Hotel & Resort Management's managing director, Calvin Tay, said the new venue would feature a restaurant, a club, a karaoke lounge and VIP guestrooms with on-demand spa services. It will open progressively from next March.

Further, the company will open its second hotel, Paramount@Gallery, in Shanghai this December, and is planning to open a restaurant specialising in Hong Kong favourites.

“Our products will flow like (the body of) a dragon. We will be able to provide various products a MICE client would need,” Tay said.

Prudence Lui, Hong Kong (2010-09-28)

THE UPCOMING National Day holiday will likely see a total of 5.89 million passengers passing through land, sea and air control points, 15 per cent more than during the same period last year.

Land travel is expected to be the popular choice, with Hong Kong’s Lo Wu border bracing for 2.25 million entries and exits, an average of 282,000 a day, between September 30 and October 7.

United China Travel's general manager Lester Hui said short-haul trips to China were in demand. “Since this month, traffic to long-haul destinations has not amounted to a lot and this is probably due to the hostage incident in the Philippines.”

Outbound traffic will be heavy on October 1, with 174,000 people leaving Hong Kong, while the busiest day for inbound traffic is expected to be on October 3 when 178,000 passengers arrive.

Despite strong inbound Chinese traffic, Hong Kong hotels are not seeing an increase in numbers. This is due to the sharp fall in cheap shopping tours after a local tour guide was recently caught on video berating a group of mainland visitors for not spending enough. The clip, which was circulated online in July, was an embarrassment to Hong Kong.

Mexan Harbour Hotel's general manager Ronnie Yuen said he was not expecting full occupancy at his property. “Both the Hong Kong Tourism Board and government are continuing to work with China to curb these low-cost shopping tours and push Honest and Quality Hong Kong Tours which have significantly higher rates. The cost is comparable to a trip to Australia for China travellers. So why would they come to Hong Kong?”

S Puvaneswary, Kuala Lumpur (2010-09-28)

AN improved bid success rate and a growing number of leads have prompted the Sarawak Convention Bureau (SCB) to increase its manpower strength.

Fully operational since September 2006, SCB has seen its bid success rate increase from 70 per cent last year to 80 per cent.

It plans to hire four more staff in the coming months. The new staff, comprising two business development executives and two support staff, will be based in Kuala Lumpur as the majority of the bureau’s clients are based in the Klang Valley, said its CEO, Jill Henry.

SCB will also launch a programme in the first quarter of 2011 aimed at immersing visiting delegates in Sarawak's indigenous culture. As part of this, it has been training local speakers to share tribal wisdoms.

Bangkok (2010-09-28)

THAILAND'S megamall CentralWorld is re-opening today after being set ablaze during riots in May.

The giant 550,000m² complex is re-launching with 80 per cent of its retail space open for business,  following a 2,800 million baht (US$91.5 million) reconstruction and renovation. The remainder will be completed in December and its neighbouring Zen Department Store will re-open in August 2011.

Improved facilities include Thailand’s first open-air ice-skating rink inside a shopping centre and a ‘ladies only’ parking zone. The mall will also add new-to-market brands such as Fred Perry and   Berskha. 

Utilities have been completely overhauled or replaced, including air-conditioning systems and ducting as well as escalators and lifts.

Located in Bangkok's central business district, CentralWorld is connected to the Bangkok Convention Centre at CentralWorld, where the double-bill event IT&CMA (Incentive Travel & Conventions, Meetings Asia) and CTW (Corporate Travel World) Asia-Pacific will be held from October 5 to 7 next week.

Singapore (2010-09-28)

AGENTS sending groups to Hokkaido have a new accommodation choice when YTL Hotels Group’s 200-room Green Leaf Niseko Village, currently undergoing renovations, re-opens in time for the ski season end-October.

The renovation is the first of YTL’s multi-phased redevelopment plans for Niseko Village. It aims to transform the hotel with unparalleled views of Mount Yotei and natural onsen into “a modern social space attractive to a youthful and global clientele”. An extensive collection of original artwork by celebrated Japanese artist Soichoro Tomioka is a highlight.

Clients have a vast array of activities to enjoy, from paragliding and trekking to horseback riding, kayaking, river-rafting and skiing. The hotel has a purpose-designed skier services building.

Mimi Hudoyo, Jakarta (2010-09-27)

THE ASSOCIATION of the Indonesian Ticketing Agencies (ASTINDO) is renewing its demand on owners of bankrupt AdamAir to return its agents’ deposit in full, following an Indonesian bank's public announcement to put AdamAir’s assets on auction.

AdamAir went bankrupt in 2008, with an unclaimed agency deposit of 15 billion rupiah (US$1.67 million). The case has been brought to court with little success so far.

ASTINDO's board member Rudiana said: “The court has ruled that the airline should return the deposit, however, (the airline’s curator) could not do it all at once because the airline still has liabilities to other parties including its own staff.”

He added: “The deposit is the agents' money which they can use to cover a loss if an agent can’t pay its dues. In this case, it’s the airline which is in default, so returning our money should be the top priority. It is our money and not the airline’s asset after all.”

Rudiana said with the bank putting the airline's assets on auction, ASTINDO wanted to push the owners to return the agents’ money in full. A consultation with its lawyer will take place on October 3.

“The case has set a bad precedence for airlines to be so stringent when setting rules to protect themselves but to wash their hands off so quickly when they are in trouble.”

Separately, ASTINDO is petitioning the transport ministry for a regulation that airlines should put the agent’s deposit in an escrow account.

“If the airline were to default, it will be easier for the agents to get their money back,” Rudiana said.

- More in TTG Asia, October 15

Kuala Lumpur (2010-09-27)

AIRLINES in the Asia-Pacific region continue to record solid growth in passenger and air freight demand for the month of August, on the back of a 14.9 per cent increase in the number of international passengers carried and a 32.1 per cent rebound in the volume of international air cargo for the first eight months of the year.

Preliminary figures released by the Association of Asia Pacific Airlines (AAPA) showed that Asia-Pacific-based airlines carried a total of 16.8 million international passengers in August, reflecting a 12.4 per cent increase compared to the same month last year.

International passenger traffic grew by a slightly more conservative 8.4 per cent in revenue passenger kilometre, indicating particularly strong demand on regional short-haul routes. International air cargo traffic also registered 25 per cent growth compared to the same month last year.

Andrew Herdman, AAPA's director general, said: “The outlook for the remainder of the year remains broadly positive, although reported growth rates are expected to stabilise as the recovery phase is completed.”

An earlier forecast by the International Air Transport Association (IATA) also predicted that growth would slow (TTG Asia e-Daily, September 21). IATA expects the world's airlines to post profits of US$5.3 billion in 2011, down from US$8.9 billion this year, with Asia-Pacific leading the growth.

Mimi Hudoyo, Jakarta (2010-09-27)

THE ARRIVAL of three new Boeing 737-900Ers from the US this week is expected to strengthen  the domestic network of Indonesian LCC Lion Air.

With the additions, the airline would have received 43 of the 178 aircraft it had placed on order. It is expecting 12 more planes to arrive in 2011.

Its new Jogjakarta-Banjarmasin daily service will commence next month and it is planning to add direct services such as Balikpapan-Makassar and Balikpapan-Batam.

Lion Air's general affairs director, Edward Sirait, said that the opportunity for growth in domestic traffic was huge for the airline.

“The number of domestic passengers in Indonesia is still growing and Lion Air’s network currently covers only 50 per cent of the available routes.”

While the economic crisis had thrown a spanner into Lion Air's plans to expand internationally, Sirait said the airline was still “continuing to study the best possible route”.

He added that the airline had set its sights on India, Australia and China, but would first ensure that the route is “sustainable”. It has no plans to fly to Europe yet.

S Puvaneswary, Kuala Lumpur (2010-09-27)

FRENCH cruise company, Rivages du Monde, has appointed Malaysia-based cruise consolidator, Jebsen Travel & Tours Services, as a partner to promote its Arion ship in the Asia-Pacific and the Middle East from October 1.

Arion is the only cruise ship that sails the entire Adriatic Coast route, and a complete eight-day/seven-night itinerary starts and ends in Koper, Slovenia.

Jebsen Travel's managing director, Lim Chee Tong, said the company would promote Arion through its global sales network. He has already received an enquiry for 15 passengers next year.

With this latest appointment, the biggest cruise consolidator in the Asia-Pacific region now has a total of 40 cruise line partners.

Karen Yue, Singapore, reporting for TTGmice (2010-09-27)

THE TAIWAN Bureau of Foreign Trade (BOFT), Taiwan's Environmental Protection Administration (EPA) and Taiwanese MICE industry players are still trying – after six months – to agree on a set of standards with which to measure an event's level of environmental impact.

BOFT chief secretary, Cynthia Kiang, told TTG Asia e-Daily: “There are no such standards available in the world now. We need to have a way to determine how green an event is, so we can then see how we can improve on the event's environmental impact.”

Kiang explained that the dialogue had taken “a little longer” because it was necessary to get a consensus on the green standards from the trade, as these standards would eventually affect them.

Kiang said: “Taiwan cannot compete with other MICE destinations on space, so we have to sharpen our green edge.”

Gracia Chiang, Singapore (2010-09-24)

ONLINE travel agent Asiatravel.com is now turning to an unlikely source – offline consumers – to grow its business.

It opened its first hybrid online/offline retail store in Singapore today, offering self-service terminals that allow walk-in customers to make bookings on the spot, or if they prefer, with the help of travel consultants.

The 15-year-old Singapore-based company started out as an online hotel reservation service provider and now provides instant confirmation for flights and tour packages, the latter being its newest addition this year.

“We are targeting those who may browse Asiatravel.com but have no confidence to book... We want to show them that it's actually so simple,” said Magdalene Yeo, executive vice president of Asiatravel.com.

She added that while Internet penetration might be growing, the number of people who actually make travel bookings online was still few.

With the cost of Internet advertising on the rise, Asiatravel.com also sees its physical presence as part of its branding strategy for its online booking platform.

Yeo expects the store to serve anywhere between 600 and 800 walk-ins a month. While 70 per cent of these would probably be locals, the store's central location would also draw tourists looking to book last-minute jaunts to nearby destinations, she added.

The company intends to roll out at least 10 of such stores in each of the eight countries where it has offices. They can be 100 per cent owned, franchises or joint ventures.

- Full report in TTG Asia, October 15

S Puvaneswary, Kuala Lumpur (2010-09-24)

INBOUND agents in Malaysia are diversifying their markets in the face of stiff competition and reduced volumes from their core markets.

World Avenues, a wholesaler for the Middle East market, is seeing positive results from venturing into South Africa and Europe last year, with bookings coming in for this winter season.

Its executive director Ally Bhoonee said the company decided to diversify as it could no longer depend on big volumes from the Middle East during the peak summer period. Up to 2015, the peak summer travel period will coincide with Ramadan, the Muslim fasting month.

Tina Travel & Agencies, with strengths in the Indian and Iranian markets, has also diversified to Australia, South Africa, Mauritius and Indochina due to increased competition from new players. 

However, its managing director Adam Kamal said results of laying the foundation this year through sales calls and hosting fam trips for agents would only be seen next year as contracting for the year had been done earlier.

Karen Yue, Singapore (2010-09-24)

SINGAPOREANS are opting for longer cruise trips or incorporating cruising into travel itineraries.

"While two-night to five-night cruises are still most popular among Singaporeans because of shorter vacation days, we are seeing a growing demand for longer North Asian cruises," said Royal Caribbean Cruises (Asia) managing director Jennifer Yap.

She added that a "significant increase" in repeat customers had helped to boost fly-cruise bookings. "Most of our customers start off with short Asian cruises. As they gain cruise experience, they want something more and they turn to fly-cruise vacations."

Citystate Travel executive director Albert Ho agreed that cruise holidays were gaining stronger acceptance in Singapore, especially among younger travellers who would combine honeymoon cruises along the Alaskan route with pre- and post-cruise tours.

Leisure cruise specialist ACE Cruise Holidays director of sales and marketing Peter Wong also recognised a stronger growth potential in corporate incentive cruises out of Singapore. The agency may build a dedicated MICE division next year to service this segment.

New Delhi (2010-09-24)

THE INTERNATIONAL Air Transport Association (IATA) has called on the Indian government to shore up the gains made in the country's aviation industry by addressing issues such as foreign investment and operating cost.

IATA's director general and CEO Giovanni Bisignani noted that while some of India's carriers were now reporting profits, the Indian sector as a whole was still expected to post a loss of US$400 million in 2010, indicating that “structural weaknesses must be dealt with”.

At an industry dialogue hosted by the Confederation of Indian Industry this week, restriction on foreign investment was one of the issues highlighted by Bisignani.

Indian airlines should not be “compromised by an archaic investment policy that isolates them from global trends” said Bisignani, noting recent trends of consolidation.

He added that airline FDI was capped at 49 per cent, while foreign airlines were not allowed to invest in an Indian airline.

Bisignani also said that the costs of operating in India had to be reduced. In particular, he pointed out that India’s extension of a 10.3 per cent service tax from international premium tickets to economy and domestic travel was in contravention of the International Civil Aviation Organization (ICAO) rules.

“It is an embarrassing situation for such a relevant country as India – which is a member of the ICAO Council – to be ignoring rules that it has helped to develop,” said Bisignani.

Other key areas that India would have to address are safety, infrastructure, security and environment, he added. 

Mimi Hudoyo, Jakarta (2010-09-24)

GARUDA Indonesia has delayed its plan to go public until next February, as it needs more time to consolidate its financial report.

Minister of State-owned Enterprises Mustafa Abubakar told the media after a parliament hearing this week that more time was needed to audit the airline’s financial statement before IPO.

Until last month, the minister was still upbeat that Garuda would be able to go public before year-end despite the airline's drop in first-half profit from 400 billion rupiah (US$44.4 million) last year to 175 billion rupiah, which the minister said was “due to increasing costs”.

Garuda issued a statement yesterday, explaining that the delay was due to the pre-listing process.

Its corporate secretary Pujobroto said the Ministry of State-owned Enterprises appointed the underwriters in August, and in order to get listed in December, the financial audit had to be ready by mid-September. However, the auditors needed two months to do their job because of the company's many branches and subsidiary offices.

He added: “With a new schedule, the underwriters consider that January 2011 is not the right time as overseas investors are still on holiday, therefore, they suggested February as a better time.”

S Puvaneswary, Kuala Lumpur (2010-09-23)

MALAYSIA needs to tackle manpower issues and relook sales tactics to meet its goal of attracting more high-yield tourists, said the local travel trade.

The country this week unveiled a 10-year plan to move out of the middle-income tourist trap and double tourism receipts by 2020 (TTG Asia e-Daily, September 22).

James Wan, Planet Borneo Tours' executive director, said the country needed to increase the number of its foreign-speaking guides and frontliners before pursuing more tourists from its medium-haul target markets – South Korea, Japan and China. “We must be prepared with enough manpower to handle higher volumes of foreign-speaking tourists before we go into aggressive destination marketing.”

World Avenues' executive director Ally Bhoonee said a new body should be created to re-train current service industry players and train new entrants. “The way of selling Malaysia must change, in line with the needs and expectations of high-yield tourists.”

Red Apple Travel & Tours' managing director Arokia Das Anthony urged the tourism ministry to brief the private sector on initiatives it would undertake to meet this ambitious target. “Everyone has to be on the same page and there must be strong political will to bring about change.”

Sirima Eamtako, Bangkok (2010-09-23)

KOH Samui will welcome three direct charter flights from Kunming and Chengdu in the first week of October, during China’s Golden Week holiday.

Vorasit Pongkumpunt, adviser to the president of Koh Samui Tourism Business Association, said: “This marks the first time we – the island’s travel trade, Bangkok Airways and Chinese tour operators – are working hand in hand to promote Koh Samui.”

The flights will be operated by Bangkok Airways, using its 144-seat Airbus A319, and 80 per cent of the seats have already been booked. Vorasit expects the flights to be full once operations begin.

Chinese tourists to Koh Samui are a high-end, not zero-dollar, market, he said. Shops on the island do not offer commissions to guides.

“They book accommodation from 3,000 baht (US$98) a night in a deluxe hotel room to more than 10,000 baht in a luxury pool villa.”

Koh Samui's travel trade is planning to stage roadshows in Chongqing, Kunming and Chengdu later this year to create awareness. They are also hoping to encourage Chinese tour operators to introduce charter flights into Koh Samui during the Chinese New Year season in February.

Mimi Hudoyo, Jakarta (2010-09-23)

SANTIKA Indonesia Hotels & Resorts is embarking on an expansion into Asia, with its first overseas property to open in Singapore in mid-2012.

The 39-room budget hotel will be located at Middle Road, near Bugis Junction, where Santika has bought over a multi-purpose building.

Santika Indonesia Hotels & Resorts corporate director of marketing Donny Tisnantoro said: “The area is suitable for our budget hotel concept, which targets travellers on business who are looking for a comfortable room at a budget price.”

The hotel group operates 26 properties in Indonesia to date, and is eyeing Kuala Lumpur and Brunei Darussalam for its next properties in the region.

This year alone, Santika has opened nine hotels with a total of 854 rooms across its Amaris budget brand and three-star Hotel Santika portfolio in Indonesia. Four more Amaris hotels will open between October and year-end.

The group's expansion will continue next year with four Amaris properties opening in Jakarta and four Hotel Santika properties in Surabaya, Jogjakarta, Bogor and Tasikmalaya (West Java).

Sirima Eamtako, Bangkok (2010-09-23)

THAILAND plans to introduce a host of tax incentives and stimulus measures to entice more foreign productions to be filmed in the kingdom.

Wanasiri Morakul, director of the Department of Tourism's Thailand Film Office, said the cabinet had approved a 100 per cent VAT refund in cash as well as a tax credit of 20 to 25 per cent for production companies. Foreign actors would also be exempted from income tax. 

The Excise Department has been tasked to come up with rules and regulations this month.

The Thailand Film Office has also lobbied for foreign production crew to be granted investor work permits, which exempt them from income tax, and has secured for them a special fast-track on-arrival, 15-day non-immigrant visa at Suvarnabhumi Airport.

Wanasiri said receipts from foreign productions were expected to reach 2.1 billion baht (US$68.5 million) this year, up from 900 million baht in 2009. From January to August, Thailand earned 1.42 billion baht in revenue, a 150 per cent growth over the same period last year, from a total of 377 productions.

The Department of Tourism was rebranded earlier this month from the former Office of Tourism Development. Its responsibilities, however, remain largely unchanged.

Bangkok (2010-09-23)

ACCOR has bagged the contract for two more Pullmans in Vietnam, bringing this brand's portfolio to five in the country.

Newly-signed 207-room Pullman Danang Beach and 300-room Pullman Hai Phong Flamboyant Island Resort joins the brand's Vietnam inventory, which already includes 360-room Pullman Vung Tau, 250-room Pullman Hanoi Horison and 290-room Pullman Saigon Centre.

Pullman Danang Beach and Pullman Vung Tau will open next year while Pullman Hanoi Horison will rebrand in mid-2011 after a complete renovation. The remaining two are slated to open in 2013.

Patrick Basset, Accor’s vice president of operations for Vietnam, the Philippines, Japan and South Korea, said there continued to be opportunities for quality upscale hotel developments in Vietnam.

The country’s sustained economic growth and significant investment in infrastructure has led to increased volumes for business and leisure travel, he said.

•  Finnair will launch a direct service to Singapore in May next year, even as it increases its number of direct flights to Seoul, Nagoya, Osaka and Delhi from the end of this year, and Hong Kong from next June. 
  
•  Japan Airlines and Cathay Pacific Airways will expand their codeshare agreement from October 31 to cover all routes connecting Japan and Hong Kong.

S Puvaneswary, Kuala Lumpur (2010-09-22)

MALAYSIA unveiled an ambitious 10-year plan to attract more high-yield tourists yesterday, aiming to double tourism receipts to RM103.5 billion (US$33.5 billion) by 2020.

It is looking to tap into medium-haul markets which currently constitute 15 per cent of total arrivals, with a goal is to expand this to 43 per cent by 2020. Countries earmarked for more intensive marketing efforts were China, India, South Korea, Australia and Japan, and barriers such as connectivity and visa policy would be addressed.

Twelve entry point projects have also been identified to grow the tourism industry in order to raise its Gross National Income contribution by RM67 billion to reach RM104 billion. These include developing the world’s first eco-nature integrated resort in Sabah and building three premium outlets across the country.

The above were recommendations proposed by the private and public sector at a recent tourism lab initiated by the government’s Performance Management and Delivery Unit. The two-month lab that started in June was helmed by the chairman of Tourism Malaysia.

- More in TTG Asia, October 1

Las Vegas (2010-09-22)

WYNDHAM Hotel Group yesterday announced a licence agreement with Planet Hollywood Resorts International, LLC to franchise the Planet Hollywood Hotels brand and provide management services globally.

Known for its extensive Hollywood memorabilia collection, Planet Hollywood restaurants are located in top tourist destinations around the world.

“The addition of an entertainment-based hotel offering will complement Wyndham Hotel Group’s strong global portfolio by expanding its appeal to a much wider audience,” said Eric Danziger, Wyndham Hotel Group president and CEO.

Wyndham Hotel Group will offer developers the choice of various levels of entertainment-based concepts based on property size and geographic location.

As part of the agreement, Planet Hollywood International, Inc. will continue to own Planet Hollywood brand trademarks and intellectual property.

Ollie Quiniquini, Singapore (2010-09-22)

SINGAPOREANS top the list of visitors to India who have availed of the country's visa-on-arrival (VOA) facility for tourists.

Farmosa Holiday Tour sales and marketing manager James Wong noted that India was indeed rising in popularity among Singaporeans. “In the last few years, Indochina has been the destination for people looking for alternatives to the usual Hong Kong, Thailand holidays. India could very well be the next alternative destination.”

India introduced VOA services on an experimental basis for a year on January 1, 2010 for nationals of Singapore, Japan, Finland, Luxembourg and New Zealand. The mandatory two-month gap between visits by tourist visa holders, however, still applied to VOA applicants.

V K Singh, first secretary of the Indian High Commission in Singapore, explained that tourist visa holders could re-enter India once or twice within two months if they engaged in “neighbourhood tourism”. He defined this as “using India as a hub to visit one or two countries in the area”, provided supporting itineraries and documents were presented.

Singh, however, declined to specify what fell under the “neighbouring countries” tag, saying only that the matter would be determined on a case-to-case basis.

Bangkok (2010-09-22)

THE 59th Indian Travel Congress 2010, to be held in Phuket this weekend, is expected to result in direct flights between India and Southern Thailand.

More than 800 top Indian travel agents are expected to attend the event, organised by the Travel Agents Association of India. Formed in 1951, it is said to be India’s largest travel association with more than 2,400 members.

Tourism Authority of Thailand (TAT) governor Suraphon Svetasreni said: “We hope the increased exposure will pave the way for direct flights between our second largest point of entry and various Indian cities, which are less than four hours flying time away.”

There are currently 125 direct weekly flights between Bangkok and India but none for Phuket.

TAT’s data showed arrivals from India have nearly doubled from 300,163 in 2004 to 596,529 in 2009. From January to July this year, Indian visitor arrivals totalled 405,389, a 20 per cent growth over the same period last year. The Thai NTO projected that Indian arrivals would cross the one million mark by 2013 if this growth rate continued.

Singapore (2010-09-22)

DESPITE new competition across the street in the form of Marina Bay Sands Singapore, Suntec Singapore has managed to keep ITB Asia at its venue for the next three years.

Messe Berlin (Singapore), the organiser of ITB Asia, has extended a new three-year deal with Suntec Singapore International Convention and Exhibition Centre to host the trade show from 2011 to 2013.

Messe Berlin CEO Raimund Hosch said that the Suntec was the right choice due to its logistics, access, facilities and a ‘can-do’ mindset. He added that some exhibitors had already committed to ITB Asia 2011 based on the decision to stay in Singapore.

Since 2008, ITB Asia has attracted over 6,000 participants from the leisure, meetings, and corporate travel sectors. It will run from October 20 to 22 this year and some 21,000 buyer-seller meetings are expected. 

• Malaysia-based long-haul LCC AirAsia X will commence services from Kuala Lumpur to Tokyo on December 9, with three non-stop weekly flights. This is the 12th destination for the airline.
• 
  Cathay Pacific has inked a deal with Airbus for the delivery of 30 new A350-900 aircraft, representing the airline's biggest-ever single aircraft purchase. Deliveries will begin in 2016 and are scheduled to stretch over a three-year period.
  

Raini Hamdi, Singapore (2010-09-21)

THE TRAVEL trade may get a reprieve from fast-rising air fares next year when 1,400 new aircraft will be delivered.

IATA’s full forecast for 2010 and outlook for 2011, released this afternoon, confirms a trend of rising air fares: Smart capacity management by airlines following the global recession and a stronger than expected increase in demand are benefiting airlines, with IATA now forecasting a yield improvement of 7.3 per cent for passenger for 2010, from a previous forecast of 4.5 per cent.

The world’s airlines are now expected to show a profit of US$8.9 billion this year, thanks to an estimated demand growth of 11 per cent and capacity expansion of seven per cent. In June, IATA had expected them to rope in a profit of only US$2.5 billion.

But IATA director-general and CEO Giovanni Bisignani, at a media conference in Singapore this afternoon, expects the yield improvements to be nipped in the bud next year. Next year, yields would be flat, he said, predicting capacity growth would outstrip demand growth, the latter to be stymied by government’s "austerity measures", including travel taxes to "pay the bill" of fiscal stimulus they implemented following the recession.

IATA forecasts airline profitability to drop to US$5.3 billion next year on the back of a five per cent increase in demand and six per cent growth in capacity.

For 2010 and 2011, Asia-Pacific - in particular China and India - is the key driver of airline profit growth.

New Delhi (2010-09-21)

CONDEMNING the attack on two Taiwanese tourists in New Dehli on Sunday, India's minister for tourism, Kumari Selja, reiterated that India was a safe destination.

In an official statement, she said the shooting incident involving motorcycle gunmen showed “desperation of those elements who want to create panic in the society by attacking innocent people”.?

She urged the public not to get carried away by such “stray incidents”, pledging that the safety and security of tourists was of utmost importance to the government.

The Straits Times in Singapore reported today that the Delhi government is beefing up security for the upcoming Commonwealth Games in the wake of the shooting.

It is deploying some 100,000 policemen for the Games, and commandos will accompany every tour bus travelling between the airport and the Games Village as well as between the Village and competition venues.

Other measures under consideration include a ban on motorcycles within 100m of the village and venues, as well as a complete ban on pillion-riding in the city during the Games.

Karen Yue, Macau (2010-09-21)

CHINA'S Hunan province will soon gain direct air links with the US for the first time, following an agreement inked between the Hunan provincial government and China Eastern Airlines to launch direct flights between Changsha and Los Angeles.

Hunan Provincial Tourism Bureau deputy director-general Liu Miansong and a representative of the Shanghai-based carrier said it had not been determined when the flight would be launched.

But Liu said the direct US-bound flight would give the province a boost in its efforts to grow American arrivals.

Meanwhile, Changsha Huanghua International Airport in the provincial capital is now in its final phase of renovations to refresh and enlarge its passenger halls and add longer, larger runways suited for the new generation of passenger aircraft.

Sim Kok Chwee, Singapore (2010-09-21)

AIRPHIL Express, an LCC from the Philippines, has confirmed plans to operate daily flights between Cebu and Singapore starting December 1.

The airline’s previously announced daily flights between Manila and Singapore is scheduled to commence on October 27 (TTG Asia e-Daily, September 1), marking the first of its international routes.

Both flights will use the 177-seat Airbus A320 and four of these are being delivered in the next few months.

The airline hopes to expand its network to include Hong Kong and South Korea by year-end.

Macau (2010-09-21)

VIETNAM’s Heritage Line is building a new boutique-style luxury liner, The Jahan, slated for completion in October 2011.

Targeting FITs, the Mekong River cruise ship will offer bi-weekly departures for an eight-day Lost Civilisation package, visiting Ho Chi Minh City, Cai Be, Chau Doc, Phnom Penh, Kampong Cham, Kampong Chhnang and Siem Reap. A four-day trip between Ho Chi Minh City and Phnom Penh will also be available.

Heritage Line currently operates on those routes using The Jayavarman, its first new-built boutique-style ship which was launched last year.

Taking luxury up a notch, managing director Thomas Peter said The Jahan would feature the largest balcony staterooms on Indochina’s waterways.

It will have 12 superior cabins, eight deluxe staterooms, four signature staterooms and two themed jacuzzi suites. Facilities include a Wi-Fi library with laptops, iPods and DVD players, an observatory, a pool deck, and a gym and steam bath.

Singapore (2010-09-21)

IATA has signed an MOU with Singapore’s Nanyang Technological University to develop aviation leaders for Asia and the world.

They will explore launching a joint executive MBA in aviation management. NTU faculty will also lecture in IATA Training and Development Institute courses, while senior instructors from IATA will teach in NTU programmes.

An International Aviation Human Resource Summit in Singapore is also being planned.

“Asia is the future of the air transport industry... (and) Singapore at the crossroads between the aviation giants of China and India,” said IATA director-general and CEO, Giovanni Bisignani.

This is the first time IATA has entered into an agreement with an Asian university.

Anand & Madhura Katti, Mumbai (2010-09-21)

THE SIXTH Kerala Travel Mart (KTM) 2010 will open this week in Cochin with new entrants and a surge in participation compared to the previous edition.

Held at Bolgatty Palace hotel from September 23 to 26, the biennial event has attracted a total of 2,172 buyers, more than twice the number of buyers who attended KTM 2008.

KTM Society CEO Mathew Philip told TTG Asia e-Daily that there would be 551 international delegates from 54 countries. “New buyers include delegates from Peru, Scandinavia, Chile and Poland.”

Some 370 sellers from Kerala will be present, showcasing new products such as the eco-friendly beach destination of Bekal, the Holiday Inn Cochin, The Park on Vembanad Lake and luxury cruise Apsara.

Prudence Lui, Macau (2010-09-20)

AN EASIER visa process for residents from Hong Kong and Macau looks set to further stimulate traffic to Taiwan.

Since September 1, travellers from the two SARs have been able to apply for a visa to Taiwan online for free.

After receiving approval for their online applications, travellers can print the approval statements and give them to customs officers when entering Taiwan. The approval statement is in effect a 30-day visa.

According to China Airlines' general manager, Hong Kong, Johnson Sun, more than 10,000 applications have been received so far.

He said: “We have already added one more daily flight from Hong Kong to Taipei in the upcoming winter schedule, making it a total of 14 flights per day.

“Moreover, I also reckon another new travel pattern to come – weekend travel to Taiwan during long weekends.”

Arrivals from Macau and Hong Kong rose 5.89 per cent to 450,927 for the first seven months of this year.

Rahul Khanna, Yangon (2010-09-20)

A LOCAL travel agency is riding on the online booking trend with a new real-time accommodation booking website, slated to begin later this month.

As real-time credit card usage is not available in Myanmar, www.epgtravel.com will allow users to book hotels around the world using a specially created account.

EPG Travel managing director Aung Naing said: “Most foreign booking websites require the user to have a credit card but EPG Travel will instead create an account that customers add credit to.” Users will be provided with an agent ID, user name and password when they register.

Naing added that the website would target marketing representatives in Myanmar, especially those who travel out of the country frequently.

The booking engine is jointly created by Hotel Club 88, a B2B hotel booking service division of Bangkok-based tour operator, CBS Travel Asia.

New Delhi (2010-09-20)

TWO Taiwanese were injured in a shooting that occurred outside a New Delhi mosque yesterday, sparking security concerns ahead of the Commonwealth Games hosted by the city.

A pair of motorcycle gunmen opened fire on a tourist bus near the popular Jama Masjid mosque, grazing the head of one foreigner and seriously wounding the abdomen of another. No fatalities were reported. Authorities appealed for calm as investigations were ongoing.

New Delhi-based DMC Creative Travel said it did not have any guests in the affected area. Its joint managing director Rajeev Kohli added: “Indian media has given very little airtime to the incident showing that it is not as major as one would expect.”

Anand & Madhura Katti, Mumbai (2010-09-20)

CENTRAL European neighbours Croatia and Slovenia are targeting upmarket Indian tourists through a series of roadshows.

A 21-member delegation (14 from Croatia and seven from Slovenia) met the Indian trade in Mumbai and Delhi last week, and the NTOs of the two countries plan to make regular visits over the next two years. Fam trips are also in the pipeline. 

Croatian National Tourist Board director Niko Bulic told TTG Asia e-Daily: “It’s the beginning of a long journey with India. Arrivals from India are negligible at the moment. We want to change that and make India a  mainstream market for Croatia.”

The NTO wants Indians to discover Croatia’s attractions including its 14 UNESCO World Heritage listings.

Slovenia, on the other hand, presented itself as a small country with one of the highest concentrations of forest in Europe, boasting rich thermal and mineral waters.

Slovenian Tourist Board director Maja Pak said: “We’re trying to explore markets other than our European neighbours. India has a lot of potential and we are convinced that we have the perfect product for the Indian market.”

Prudence Lui, Macau (2010-09-20)

AIR Macau is expanding its network in the region, but officials declined to comment whether it would take over the routes vacated by VIVA Macau which stopped operations in March due to financial difficulties.

Joy Gong, Air Macau general manager for public relations and advertising, said: “We will explore more destinations in China such as Ningbo, Hefei, Chongqing, Zhengzhou.” The airline is also considering a new service to Singapore.

It has already increased frequencies to Japan and South Korea, having launched three weekly flights between Macau and Tokyo on March 28 and entered into a codeshare agreement with All Nippon Airways in July.

Air Macau intends to increase overall seat capacity by 15 to 20 per cent annually between 2011 and 2013.

Despite Air Macau’s expansion plans, limited air access to Macau International Airport remains an issue.

Macau-based China International Travel Service deputy general manager Lu Fang wants to see more intercontinental flights to the destination.

Lu noted that most of his European and American clients travel to Hong Kong and turn Macau into an optional daytour from the neighbouring city. This trend, he said, would not be beneficial to Macau in the long run.

Rahul Khanna, Yangon (2010-09-20)

AIR Bagan will launch a new service between Yangon and Phuket in December, the airline’s second route between Myanmar and Thailand.

The twice-weekly flight will use a 100-seat Fokker aircraft.

The airline currently operates a twice-weekly Yangon-Chiang Mai flight, which it will increase to thrice weekly from November.

It also plans to introduce services from Yangon to key regional tourist cities like Siem Reap, Bangkok, Kunming, Kuala Lumpur and Singapore in the near future.

• Chaweng Regent Beach Resort in Thailand is investing 100 million baht (US$3.25 million) to convert 16 bungalows into spa villa suites, scheduled to re-open in December. General manager Nick Bauer said the new suites would target the wedding and honeymoon markets, and hoped the increase in inventory of high-end units would help raise the average daily rate.
• Marina Bay Sands and SATS have introduced a new service that allows hotel guests and customers departing on Singapore Airlines and SilkAir flights to check-in their luggage and receive their boarding passes at least three hours before heading to Singapore Changi Airport. This service will be extended to cover more airlines in the coming months.
• The Ritz-Carlton Hotel Company has launched its worldwide loyalty programme, The Ritz-Carlton Rewards. Points can  be earned from and spent on hotel stays as well as for meetings within properties. They can also be used to redeem for complimentary flights and purchase of travel and retail products.

Duffell quits as PATA CEO

By Raini Hamdi

PATA CEO Gregory Duffell has thrown in the towel, less than two years of joining and ahead of the association’s 60th anniversary in April next year.

TTG Asia understands Duffell gave a six-month notice to PATA two weeks ago. PATA chairman Hiran Cooray refused to comment. Duffell said he could not comment. He is believed to be going back to the commercial world, where he was CEO of Indochina Services before joining PATA.

Board members approached by TTG Asia for comment expressed dismay that the association was thrown into a quandary by the resignation ahead of PATA's milestone year. Duffell came in all gung-ho and ready to bring back stability, transparency and leadership to a divided PATA, as he said in an interview with TTG Asia in March 2009. PATA is now left with the changes he has instituted, along with many new faces at the PATA office in Bangkok.

“It is deeply disappointing that PATA has to go through all these sporadic changes. This lack of continuity will undoubtedly result in PATA not being able to progress with its programmes effectively and in bringing solidarity to the membership at a time when it needs it. Everything we do is for the longterm and he was put in place to drive the plans. Now we’ve lost a driver in midstream,” said PATA board member and past president Tunku Iskandar.

“We are in a bit of a situation,” admitted PATA treasurer/secretary Anthony Wong. “I guess it has been challenging for him with so many changes and the loss of key staff. And managing an association is different from managing a company, which is less complicated and where you are the boss. Here, you have many bosses (60 to 70 in the board and 12 in the executive board) and we all have our own idea of how PATA should work.”

Said PATA Industry Council chairman/board member Luzi Matzig: “It does not come at a good time. PATA needs stability.”

The search for a new PATA CEO starts all over again and it is understood PATA is looking for someone who is a PATA member and who understands the workings of the association. Tunku Iskandar said it did not matter if the CEO was a PATA member or not; what matters is a “people” person with strong business acumen as the two key issues that will face him are “a divided membership” and “the need to build up reserves”.

Matzig agrees. “We need a diplomatic person who is also a leader who can motivate staff with clear directions and who is transparent.”

Allotments shift to OTAs

By Ollie Quiniquini

WHILE acknowledging that hotels needed to have a healthy mix of offline and online business, at least one hotel, Bali Rani, has gone on record to say it would reduce room allotments to wholesalers next year to make room for more online bookings.

Many more properties of 100 or so rooms are mulling to adopt this in the next two to three years.

A Bangkok hotelier who declined to be named said many hotels in the Thai capital were planning to rely fully on online channels, and more hotels in Asia would eventually consider reducing allotments for wholesalers but not remove these entirely as “they need support for groups”.

Nusa Dua Beach Hotel and Spa director of sales Gede Parmita noted that his wholesale business had shrunk from 75 per cent to just 55 per cent, as “20 per cent now comes from online sources”.  He hopes to increase his online share to 25 per cent, particularly because OTAs allow hotels to control allocation and rates.

“Wholesalers have to be more realistic and not squeeze the market for rates,” said Parmita.

Bali Garden Beach Resort, which is adding 50 rooms to its inventory next year, also intends to allocate more of these new rooms for online agents.

Muang Samui group director of sales Anucha Soontornpak said online bookings, mainly through OTAs, grew 60 per cent this year over 2009. And more than half of the 75 per cent business gained from the trade comes from the OTA channel.

Europe operators press for currency agreement in contracts

By Sirima Eamtako

SOME European tour operators are requesting groundhandlers to sign a currency agreement in the contract.

Many inbound agents interviewed are dismissing the request. One is considering it, and another, Happy Trails Indonesia and Malaysia, has agreed.

Happy Trails managing director Gerald van Amerongen said that as of now, he had included a currency agreement in contracts with 10 out of 30 partners in the UK, the Netherlands, Germany and Canada.

Based on contract rates, the agreement will see both parties administering the gains and losses from currency exchange fluctuations throughout the year. At the end of the year, the losses and gains will be shared equally by both parties.

“This has never happened before, as it was not necessary,” said van Amerongen.

But as Asian currencies gain strength against the euro and the UK pound, more European operators are asking for the agreement. Asian Trails said it had received similar requests from partners but managing director Jacques Guichandut said Asian Trails would not accede.

“Currency exchanges have been up and down for many years. If you win, you win, and if you lose, you lose. It’s part of the game,” he said.

Sri Lanka struggles with lack of rooms

By Karen Yue

FRESH concerns have emerged over a lack of hotel rooms in Sri Lanka, following the country’s renewed stability.

Walkers Tours assistant vice president Prabath Harshakumar said: “Now that more travel advisories have been lifted, more travellers want to visit Sri Lanka.”

Since the defeat of the Liberation Tigers of Tamil Eelam in May last year, several countries have lifted their travel advisories against Sri Lanka. The British government lifted its travel restriction in August for the first time in 30 years and Canada is doing so this month.

“Between this November and March 2011, there will be three to four charters from Scandinavian markets such as Sweden and Finland,”  Harshakumar said.

Walkers Tours also saw higher traffic from the rest of Europe and Canada. Harshakumar noted a 30 to 40 per cent increase in inbound volume so far this year compared to the same period last year, prompting it to grow its fleet of cars used for transfers.

He added there were only 14,500 rooms in Sri Lanka, barely enough during the peak season.

Sands China targets US$1 billion profit

By Raini Hamdi and Gracia Chiang

SANDS China is on track to make a US$1 billion profit this year, according to president and COO Edward Tracy.

The company invested US$2.8 billion in The Venetian, US$1.4 billion in The Plaza (including the Four Seasons), US$500 million in Sands Macao and is investing US$4.1 billion on Parcels 5 and 6, which will add some 6,000 rooms in the fourth quarter of 2011.

Tracy's optimism in achieving US$1 billion comes on the back of Sands' first-half interim results ended June 30, which saw an EBITDA of US$554.6 million, a 64.2 per cent increase over the same period last year.

Despite new competition such as City of Dreams and Galaxy Macau, Tracy said Macau could sustain all projects that had been planned and scheduled.

"With a world-class facility sitting next to the biggest market in the world, there is nothing that makes us believe growth cannot be sustained, unless there is a global economic slowdown."

Tracy said the entry of new players would further help change perception of Macau as a gaming destination and increase its pie of MICE and leisure travel. Eighty per cent of the revenue at The Venetian is still from gaming and Sands is trying to shift the mix by trumpeting non-gaming amenities to mainland Chinese.

The Venetian's fastest-growing MICE and leisure market is India, according to Wolfram Diener, its vice president of conventions and exhibitions, even though there are no direct flights between India and Macau.

More direct air access between neighbouring Hong Kong and India is the catalyst, said New Delhi-based Astral Travels' Sangeeta Berera. "Hong Kong and Macau are rocking. Demand has really picked up and everyone wants to go to Hong Kong and Macau." She said Indian travel to popular tourist hotspot Thailand had "reached saturation point" as most had "already been there".

January to July figures showed arrivals from India to Macau having the largest jump among countries in Asia over the same period last year. India's increase was 73.8 per cent, far exceeding the 18.7 per cent growth for overall visitor arrivals.

Longhaul markets still fragile

By Gracia Chiang, Macau

OUTBOUND travel out of the US and Europe is still in its early stages of recovery, as agents report a slow pick-up in demand.

Gilbert Whelan, president and CEO of ATM Travel Marketing based in San Francisco and Singapore, reported that his company had seen a 100 per cent cancellation on trips to Asia over the last two years. ATM Travel Marketing specialises in golf and incentive tours to Asia and the South Pacific, with group sizes ranging from 30 to 300.

“Americans are afraid to leave their office at this point,” he said, referring to lingering fears of more layoffs. He added that the US was “going to take a long time to recover” and that business was being “saved by Mexico”.

Tours to the nearby country had relatively low cancellation rates of 10 per cent, a stark contrast to cancellations for countries like Cambodia and Vietnam. “That’s the only place that people are willing to go to,” he said.

Whelan said while interest in longhaul tours had started coming back, no plans had been firmed up yet for groups to Asia.

Asia set for rise of economy hotels

By Raini Hamdi

ASIA is set to see a rise of budget and economy hotels in the coming years as two global hotel chains, Accor and InterContinental Hotels Group (IHG) battle it out for dominance of the sector in the region.

IHG is making headway with its Holiday Inn Express brand in the region, signing today its first Express in Singapore in Orchard Road no less which will open by 2013. It is redeveloping the Wellington Building at Bideford Road into a 220-room Express.

IHG is only starting to develop the Express in Asia/Australasia, where none has opened save for 26 Express hotels in Greater China. In the pipeline are three Express in Bangkok and 27 more in Greater China.

Accor will have 100 Ibis manchises a combination of management and franchise in China alone by 2013.

New competitors, big and small, are also emerging in Asia-Pacific. Golden Tulip Hotels/Lourve Hotels Group France CEO and svp operations Olivier Derycke aims to be a key economy hotel player in India in three years. Indonesia's Panorama Leisure Group CEO Budi Tirtawisata is launching a three-star line in Indonesia called The 101. The first is opening in Legian in early 2011 and he is eyeing other Indonesia areas such as Bandung,Bogor, Jogyakarta and Jakarta.

Rising stars of Asia

By Ollie Quiniquini, Macau

VIETNAM, India and China are among the Asian destinations coming up roses for wholesalers seeking to spice up their options for clients.

Wendy Goutier, product and contract executive for Far East and India of Thompsons Holidays South Africa, said while her company?s top Asian destinations were Thailand and Bali, clients were now looking at Vietnam and China.

Estonia's Fiesta Reisid Travel Agency is also seeing growing demand for Vietnam and India as alternatives to traditional cash cow, Thailand. Chairman Heldur Allese revealed he would be introducing Thailand-Vietnam (Ho Chi Minh City) and Thailand-Cambodia (Siem Reap) itineraries for the next season.

Sunshine Direct Holidays UK is likewise getting more requests for Vietnam, but often in combination with Thailand, according to managing director Steve Gouldby.

Greater China, South Korea and the Philippines are showing promise for Kanoo Holidays Saudi Arabia operations manager K Muralidharan.

 Full report in TTG Asia, October 1

Mimi Hudoyo, Jakarta (2010-09-16)

AEROWISATA Hotels and Resorts, Garuda Indonesia's hospitality arm, is developing eight new properties up to 2012 to support the airline's domestic network.

General manager marketing, Imam Syafii, said: The strategy is to concentrate hotel development in the cities where Garuda is flying and to provide guests with three- and four-star (with five-star facility) accommodations.

Villa Alam Ubud in Bali will be the first to open in November. It will feature 24
Balinese luxury villas.

The other seven properties are targeted to open between next year and 2012. They are Aerotel Biliton Beach in Biliton Island with 88 rooms, including 24 bungalows; Aero Batam with 110 rooms; and the 130-room Aerotel Balikpapan in Balikpapan, East Kalimantan.

In Central Java, Aerowisata will manage the 80-room Aerotel Semarang; and in Jogjakarta, Aerotel Yogyakarta will open with 40 suites. It will also have its first Jakarta property with the development of 150-room Aerowisata Jakarta.

Aerowisata will also manage Aerotel Praya, making it the second property in Lombok after Senggigi Beach Resort and Pool Villa Club.

Aerowisata  now manages 11 properties in Bali, Lombok, Bandung, Pekanbaru, Surabaya and Biak.

Anand & Madhura Katti, Mumbai (2010-09-16)

TAJ HOTELS Resorts & Palaces has launched a new signature brand Vivanta.

Sixteen Taj hotels are being repositioned as Vivanta hotels. This includes Vivanta by Taj-President, Mumbai and Fort Aguada Beach Resort, Goa.

Taj expects the Vivanta brand to grow to more than 30 hotels with over 5,000 rooms within the next two years.

Taj had tested the market with Vivanta by rebranding three Taj hotels in Bengaluru, Goa and Maldives in the last 20 months.

Vivanta is positioned as a high-end brand, together with Taj and The Gateway. The Gateway brand was launched two years ago.

IREIFS invests in two resorts in Chiang Mai
Sirima Eamtako, Bangkok (2010-09-16)

PARIS-BASED IREIFS Investment Group is investing more than one billion baht (US$32.50 million) on joint ventures for two new resort projects in Chiang Mai, northern Thailand.

The joint-venture deals, brokered by Bangkok-based Mai-BS (Thailand) property consultant, will see IREIFS developing a 50-key ecotourism resort in Chiang Mai?s countryside and an 88-unit condominium in the downtown area.

Construction of the ecotourism property, which occupies a four-hectare plot of land in Mae Rim, will start "shortly" and is due for completion in December 2011, according to Pat Collins, IREIFS regional director for Asia.

The resort, which will have 30 villas and a 20-suite lodge, overlooks a mountain valley, on-property waterfall and two freshwater streams.

The condominium project, comprising 88 residential units, retail shops and restaurants,is slated for completion in 2012. It is located on the bank of the Ping River in downtown Chiang Mai.

Collins said the project would provide daily accommodation for visitors and long-term owners.

Hong Kong (2010-09-16)

LANGHAM has signed an agreement to manage Langham Place, Ningbo Culture Plaza with Ningbo
Culture Plaza Investment & Development.

Set to open in late 2011, Langham Place, Ningbo Culture Plaza will be a 140-room property.

The Ningbo Culture Plaza has been designated as a key development for the arts, fashion and retail industries. The multi-purpose complex will include commercial, educational,recreational, retail, gallery, exhibition and theatre space.

Langham Place will be positioned as an 'arts hotel'.

Macau turns off VOA tap

MACAU'S decision to suspend visa-on-arrival (VOA) arrangements for nationals of Bangladesh, Nepal, Nigeria, Pakistan, Sri Lanka and Vietnam has had an immediate impact on arrivals from these countries.

Arrivals from Vietnam plummeted to a mere 752 in July, an 88.8 per cent drop over the same period last year.

Signatures of Asia managing director Anh Nguyen said a lot of Vietnamese had diverted their Macau travel plans to destinations such as Singapore or Malaysia instead.

It now takes 21 working days to process a visa to Macau. It is far easier to travel to the US and the UK nowadays. What makes it worse is the air connection. There have been no direct services to Macau since April, Anh said.

Traffic from Bangladesh to Macau has also come to a screeching halt since the VOA facility was revoked, according to Travel House consultant Monzur Morshed Chowdhury.

He said: Perhaps Bangladesh is a not yet a mature market for Macau. Our clients have switched to Nepal, India, Thailand, Singapore and Malaysia as people need to present an invitation letter when applying for a visa to Macau and (processing) could take from four to six weeks.

Strong baht weakens Thailand's appeal

Despite a surging baht that could deter tourists from the UK and Europe (TTG Asia e-Daily, September 6), the Thai travel trade has yet to respond with good offers to attract arrivals.

Buyers at the Thailand Travel Mart Plus the Greater Mekong Sub-region in Bangkok last week said Thailand needed to respond more aggressively with deals and image campaigns.

Travco hotel department general manager Andrew Moore said the stronger baht had pushed the cost up and the margin down.

The UK's £300 (US$460.89) Air Passenger Duty had also doubled expenses as a return flight would already cost around £300, said Jasmine Holidays director Phil Hodges.

Funway Holidays product director for Far East, Melissa Tilling, said a 14-night package to Thailand, which cost £739 in the last 18 months to two years, had risen to £939 this year. We are worried about the high season in Thailand as normally, between now and next month, people would be making bookings from November onwards, but we dont see (the same trend).

Tilling said the Thai trade needed to put out early-bird deals for bookings before October 31 for the November to March holiday period.

Mimi Hudoyo, Jakarta (2010-09-15)

INDONESIA'S Ministry of Transportation is offering a private-sector investment scheme to develop and expand seven airports to support the country's growing airline industry.

The ministry estimated that development plans would need a total investment of 7.5 trillion rupiah (US$833.3 million). All plans were expected to be finalised within four years.

Ministry of Transportation director of airports, Bambang Tjahjono, said:   This is a huge investment; therefore, we are offering the private-public partnership scheme to help with development plans. The whole project is expected to be finalised by 2014. 

Bali's new airport, targeted for completion in 2013, would require the biggest investment of 5.1 trillion rupiah.

Other airport projects include Tjilik Riwut, Palangkaraya, Central Kalimantan (113.23 billion rupiah); Kertajati, Majalengka, West Java (21.64 billion rupiah); Dewandaru, Karimun Jawa, Central Java (10 billion rupiah); Singkawang, West Kalimantan (420 billion rupiah), South Banten, Pandeglang, Banten (850 billion rupiah); Samarinda, East Kalimantan (995 billion rupiah).

The current Ngurah Rai International Airport would also be expanded with a two trillion rupiah investment from its airport authority, Angkasa Pura I.

Meanwhile, Angkasa Pura II, which manages Soekarno-Hatta International Airport will spend two trillion rupiah to develop Jakarta's Terminal Three and a railway that would connect the airport to a Jakarta station.

Singapore (2010-09-15)

SINGAPOREANS spent the most for hotel rooms in their own country, as compared to the rest of Asia, according to the Hotels.com Hotel Price Index.

With an average spend of S$230 (US$172) per room per night in their own country in the second quarter of 2010, the figure reflected a significant 22 per cent increase from the same period last year.

Tokyo and Sydney are next on the index, reflecting average spend of S$209 and S$198 respectively.

 The index reconfirms the general growth in the Asia-Pacific region and the increased demand for hotels in the region... Large business and convention hubs, like Singapore and Hong Kong, have seen rates go up on the back of returning corporate travel demand,   said Johan Svanstrom, managing director, Asia-Pacific for Hotels.com.

London (2010-09-15)

THE SLOWDOWN in corporate travel is prompting hoteliers to relook ways to target the leisure market.

The increasing importance of leisure travellers was highlighted during a think-tank session held in September ahead of the World Travel Market.

A hotelier said that with tighter travel budgets, companies were asking for free transfers, free phone calls, F&B discounts and more, all of which affected a hotel's margins.   It is possible that leisure travellers might now be more profitable than corporate guests. 

Another luxury hotelier said many companies now mandated that its travellers could not stay in five-star hotels.

Some panellists at the session pointed out that luxury hotels were now expected to offer all-inclusive rates to tour operators, as bigger-spending leisure clients were starting to see the appeal of all-inclusive holidays.

A mid-market operator said that some of its properties in France were no longer taking bookings from the MICE sector because of strong demand from US-based leisure travellers, while another said that it was benefitting from business travellers who were downgrading.

By Raini Hamdi, Hong Kong

HONG KONG Disneyland Resort, which turned five last Sunday, will strengthen its travel trade distribution by signing up contracted wholesalers in new areas such as secondary cities in China and key cities in India which have direct air access to Hong Kong.

The travel trade accounts for 71 per cent of business, with 40 per cent of the resort’s market mix comprising mainland China, 30 per cent Hong Kong and 30 per cent international (South-east Asia, Australia, India, etc).

In a show of how the resort has become an agent’s best friend – a change from frustrations aired by agents when it first opened - it marked its fifth anniversary last
weekend with just the trade and more than 200 contracted wholesalers turned up.

Aliana Ho, vice prsident sales and distribution marketing, expects more business from them in the year ahead as Hong Kong Disneyland turns on the tap of anniversary promotions. These include a limited edition lithograph only for bookings made by contracted wholesalers, and an extended two-year free admission pass for tour guides, from one year previously.

New attractions being built will also help the park compete with newcomers such as Singapore’s Universal Studios. The park will be 23 per cent bigger when Toy Story Land opens end-2011, followed by Grizzly Gulch and Mystic Point (2014).

Hong Kong Disneyland is also out to increase its pie of the MICE market. Five exclusive offers for MICE groups in 2011.

– Full report in TTG Asia, TTGmice next issue

Gracia Chiang, Singapore (2010-09-14)

HAINAN Airlines has hit a high note with its twice-weekly Singapore-Dalian service launched last month, with its GSA Maple Aviation, pushing for an additional flight.

“The numbers over the first two weeks have been very promising,” said P S Tan, managing director of Maple Aviation, at a welcome dinner reception for the airline last week. “In fact, we are pushing to have another flight because two weekly flights are not enough to
cater to the demand.”

He noted that the route, which uses the Boeing B737-800, had a good mix of leisure and business travellers. Dalian is known for being a business destination, while Hefei has a cultural appeal that draws tourists.

Changi Airport Group's director of market development, Lim Ching Kiat, said that with Hefei being a new link for the airport, the route offered a new destination for
Singaporeans, who were already seasoned travellers to popular Chinese cities like Shanghai. He added that rising incomes in China's secondary cities also meant that more Chinese were starting to venture out, with many visiting Singapore for the first time.

Lim added that the airport was keen to bring together travel agents from Singapore and China, through networking sessions for example, to grow traffic between the two countries.

S Puvaneswary, Kuala Lumpur (2010-09-14)

IN RESPONSE to a rebound in outbound travel, at least one Malaysian tour operator is beefing up its workforce.

Apple Vacations & Conventions' group managing director, Desmond Lee, said the company had seen demand for medium- and longhaul travel return in the first quarter of this year. As a result, the company is intending to increase sales staff by 50 per cent before October
1.

Lee also wanted to ride on the stronger demand for travel during the year-end school holidays by promoting the company's in-depth tour packages to the Middle East, South Africa, North and South America, Europe, Antarctica, Australia and New Zealand. The company will double its advertising and promotional budget to these destinations this year.

He said the goal was to see sales turnover double from RM3 million (US$963,855) in 2008.

Apple is also building its second boutique hotel in Kuala Lumpur. Le Apple Boutique Hotel in Jalan Sultan Ismail is scheduled to open its doors in March 2011 with 60 keys.

– Full report in TTG Asia, September 17

Singapore (2010-09-14)

THE Garden Cliff Resort & Spa will be converted into a Radisson Resort & Spa Pattaya Bay in the first quarter of 2011.

The hotel is owned by Garden Cliff Park, an inbound and outbound tour operator which handles the China market.

Carlson has two other Radisson hotels in Bangkok and Phuket. Its latest addition is part of its strategy to grow the portfolio by at least 50 per cent by 2015 to more than 1,500 hotels in international gateway cities and major resort locations, said Jean-Marc Busato,
managing director of Carlson Hotels, Asia-Pacific.

Rahul Khanna, Yangon (2010-09-14)

STATE-RUN Myanma Airways, which turns 62 years tomorrow, is acquiring three new aircraft, which will be delivered in time for the upcoming peak season from October to March.

The three 50-seat turboprops from China will replace its five existing Fokker aircraft.

An airline spokesperson said: “We are planning to provide better services for passengers with new aircraft… to meet international standards.”

The spokesperson added that the airline planned to fly to regional destinations “in the near future” after a 17-year hiatus but did not elaborate.

Myanma Airways stopped international services on August 15, 1993 following the establishment of Myanmar Airways International, which it has a 20 per cent stake in.

Current flights to 26 domestic destinations are serviced by eight aircraft – two ATR-72s, one ATR-42, three Fokker F-28s and two Fokker F-27s.

Mimi Hudoyo, Jakarta (2010-09-14)

A WORLD-CLASS performing theatre opening on December 17 in Jakarta is giving the capital city new hopes of attracting top international acts.

Teater Jakarta has a proscenium stage, two balconies and a seating capacity of 1,200. It is supported by modern sound and lighting equipment and audio-visual broadcast.

Jakarta City Government Tourism Office director, Arie Budhiman, said: “With this theatre, I hope there will be more quality shows, both local and international, staged here.”

The theatre, which is part of the Ismail Marzuki Park arts centre, will open with the Laskar Pelangi musical by Indonesia’s prominent Miles Production and Etcetera
Entertainment, which will run for three weeks.

Laskar Pelangi producer, Mira Lesmana, said: “We have been planning to stage the musical in the same way as international theatres like West End and Broadway ever since the Laskar Pelangi film was launched in 2008, but we just didn’t have the right theatre until now. This theatre can support such performances.”

Raini Hamdi, Singapore (2010-09-13)

A YEAR after they retired from Pacific World, Bob and Gillian Guy are going to compete with their former DMC by setting up Destination Asia in Singapore and Malaysia in a joint venture with Destination Asia’s CEO/group managing director Jim Reed and managing director of Thailand Addie Samerton.

Destination Asia Singapore and Malaysia will service MICE, wholesale/tour operator and cruise accounts – businesses Bob Guy had diversified into in his years at Pacific World. The Guys are the majority shareholder of Destination Asia in the two destinations, which complete the regional network for the 14-year-old DMC headquartered in Thailand.

Destination Asia currently has offices in Thailand, China, Vietnam, Hong Kong, Cambodia, Indonesia, Laos and Myanmar. Both Reed and Bob Guy said Singapore was spewing new MICE, wholesale and cruise potential as a result of its new IRs and other infrastructure development. Malaysia has become equally important as more clients seek “participatory” and CSR programmes, which destinations such as Borneo and Langkawi lend themselves to.

An office in Singapore has been set up at Windstedt Road. The Malaysian office will be in Penang. Guy expects to have full operational capability by December if not sooner.

Reed said the network was now completed and he would use 2011 to consolidate the 10 companies before looking at other opportunities in late 2011 or 2012 for expansion.

Full report in TTG Asia, September 17, 2010

TAT adopts a balancing act to sustain tourism growth

THE TOURISM Authority of Thailand (TAT) has developed a “balanced strategy” based on economy, environment and society to ensure long-term, sustainable tourism marketing for the future.

Governor Suraphon Svetasreni said even with the strong Thailand brand, TAT must be ready for challenges that could arise during 2011.

He said while the economies of Asian countries and the US showed signs of recovery, the impact of the debt crisis among European countries remained unclear. Natural events such as climate change and the effect it has on travel habits is another potential challenge, he added.

TAT’s balanced strategy will cover five tourism elements – monetary value and emotional value, domestic tourism and international tourism, short-term market recovery and long-term market expansion, peak season and low season, and gaining revenue and preserving tourism assets.

TAT is targeting 15.5 million foreign arrivals (nine per cent growth) and 600 billion baht (US$18.5 billion) tourism revenue in 2011. It is eyeing a three per cent increase on domestic tourism to 91 million trips and 432 billion baht revenue.

From January to July, Thailand welcomed more than 8.7 million visitor arrivals, a 13.8 per cent increase over the same period last year. In August, more than 860,000 international tourists arrived at Suvarnabhumi International Airport, a seven per cent growth.

Australian bookings on the rise for Thailand

BOOKINGS from the Australian market have started to pick up again after some months of slowdown, but more promotions are needed to further boost interests, according to Australian buyers.

WebSource Pacific’s data showed Thailand was back on the search engine after disappearing from the screen in May and June. Its managing director Mark Luckey expected the enquiries to turn into bookings for the coming months with “a big increase” forecasted from next January.

World Travel Group managing director Jean Kouriel agreed in part that increases for next year would be “huge” for Thailand, but this year would remain slow due to concerns over the Thai political problem and the travel advisory on Thailand.

“We are looking to see bookings rebound by February or March. But if there is any further crisis, Thailand can easily suffer a 20 to 25 per cent drop,” he said.

“Stability is the key,” said Specialist Holidays general manager for Asia, Jim McCoy.

He added that the Thai travel trade should be more aggressive in restoring market confidence and Thailand’s image. “Yes, the Tourism Authority of Thailand is doing something, but we need more involvement from the trade.

“We need Thai Airways International to get airfares for April 2011 ready now…to be aggressive in the market.”

Sirima Eamtako, Bangkok (2010-09-13)

TRANSORIENT Asia will launch a new summer brochure on the Indian Ocean in December and a real-time online booking system in January.

General manager Andre van der Marck said the brochure would tentatively comprise 58 or 64 pages on Sri Lanka, the Maldives, the UAE and Oman. It would feature culture, nature, beaches, country trips and open-tour products.

This new summer product, and Transorient’s existing products on the Far East, will be bookable online via the Transorient reservation system (TRS), which is slated to be activated from January 1.

The booking engine will allow real-time booking ability for retailers from Germany, Transorient’s predominant source of market.

The Siam is set to make a splash in Bangkok

THE SIAM, located on the bank of the Chao Phraya River, is set to debut its pool villas in Bangkok when it opens in June next year.

The 39-key, all-suite hotel will feature 10 pool villas, 28 suites and one Thai House. Other facilities include four F&B outlets, a gym, a spa, an infinity pool, a kid’s pool and a salon. Its functions venue can hold small meetings and events that seat 15 to 50 people.

Conceptualised by Thai rock singer, film actor and antique collector, Krissada Sukosol Clapp, and architect and designer, Bill Bensley, the hotel’s design will feature Thai architectural influences of the King Rama V period with its art deco accents.

The 800-million-baht (US$26 million) hotel occupies a 1.4-hectare riverfront plot at the base of Bangkok’s Krung Thon Bridge, about 45-minutes by car from Suvarnabhumi Airport and within an short driving distance to the old Bangkok quarters or Rattanakosin Island.

The Siam executive vice president Marisa Sukosol Nunbhakdi said the hotel would cater to the high-end market. “We will work with luxury agents, and we have received a lot of interests from buyers attending the TTM plus.”

Singapore (2010-09-13)

SHANGRI-LA Hotels and Resorts will open a new city resort, the Shangri-La Hotel, Diqing in Shangri-La County in early 2013.

The low-rise urban resort will feature 230 rooms averaging 450m². Facilities include an all-day dining venue, Chinese and speciality restaurants, a grand ballroom, meeting
facilities and a VIP room. There will also be a health club, a spa with beauty salon and an indoor lap pool.

Diqing and Shangri-La County are popular destinations with travellers who want to
experience the beauty of Padacuo National Park and the famed Tiger-leaping Gorge and Meili Snow Mountains.

Located in the north-east of Yunnan Province, Diqing can be accessed via Diqing
Xiangelila Airport, which has direct flights from Lhasa and Kunming. Flights from other cities transit through Kunming.

Anand & Madhura Katti, Mumbai (2010-09-09)

THE US Travel Association's (USTA) fourth annual trade mission to India saw double the number of travel suppliers from last year, including some newcomers.

While the 20-member delegation included usual representation from New York and California, some like Texas Tourism and Orlando/Orange County Convention & Visitors Bureau, were in India for the first time. Delegates from Disney Destinations, Universal Orlando Resort and Macy’s were also present.

The contingent met with the Mumbai travel trade earlier this week and will be doing the same in Delhi today.

They noted that in general, Indian business visitors to the US had decreased last year, while leisure traffic increased.

USTA chief of staff and general counsel Bryan L G Lewis told TTG Asia e-Daily: “Travel is a renewed area of interest to the US... We are here to introduce our variety of members that includes cities, states, attractions and other tour operators to the trade in India.”

Lewis also added that when the new Corporation for Travel Promotion started its research next year, there would “much more activity in India” by end 2011.

The US announced earlier this year that the non-profit CTP would be set up, comprising 11 members from various segments of the travel community. Its aim is to attract more international visitors to the US and explain changing travel security policies.

Thais urged to go lower with pricing

Sirima Eamtako (2010-09-09)

DESPITE already-low package rates, Indian agents say that the Thai travel trade should do more for the destination to remain attractive to Indian travellers.

Fantasy Travels and Tours managing director Shailendra Kumar said Thai suppliers would need to keep their rates down as the stronger baht had hiked prices by 50 per cent for Indian visitors.

Although a package tour to Thailand's main competitors – Singapore and Malaysia – would normally cost about 10 to 15 per cent more, factors like a direct AirAsia Malaysia-Indian connection have brought down the price for a package tour to Malaysia.

Kumar suggested that the Tourism Authority of Thailand work with more agents in India and not just a handful of major players. "Being small or big agents, we are promoting Thailand all the same. Why only pick the bigger ones for co-promotions?"

Om Holidays managing director Deepak Rupani also urged the Thai travel trade to be more proactive in promoting to the Indian market, especially in smaller cities.

A three- to four-night tour package to Thailand, including return airfare and mid-range accommodation, currently costs between 20,000 rupees (US$429) and 25,000 rupees, according to Indian agents and tour operators.

Honolulu (2010-09-09)

TICKET sales for Hawaiian Airlines' inaugural flight to Seoul kicked off last month, marking the carrier's second major expansion into Asia in recent months.

Hawaiian Airlines will launch four-times weekly services between Honolulu Airport and Seoul Incheon Airport on January 12, 2011, adding 54,000 seats annually between Honolulu and Seoul.

The airline had earlier also announced plans to fly to Tokyo’s Haneda Airport, starting November 17, with a daily service. This will boost 100,000 seats annually.

Both routes will initially use a 264-seat Boeing 767-300ER, but delivery of a 294-seat Airbus A330-200 has been accelerated and will eventually be introduced to passengers. Bilingual cabin crew will also be onboard.

Over the last month, Hawaiian Airlines also launched Japanese and Korean versions of its website, allowing passengers to book tickets for the Incheon-Honolulu and Haneda-Honolulu flights, as well as other destinations that it serves in Hawaii, Western USA and internationally.

Ollie Quiniquini, Mumbai (2010-09-09)

BUSINESS travel in India is on the mend, following a year that saw budget slashes and travel downgrades.

BCD Travel India managing director Ajay Bali said while the market was now back, numbers had been outstripping spend. Last year, the TMC saw a 10 per cent drop in the number of corporates travelling but spend fell 35 per cent as companies downgraded classes of travel and hotel categories.

Bali noted that managed travel in India would continue to grow in the next three to five years as more Indian companies turn into MNCs.

“The first half of the year was good and the third quarter is shaping out well. Values are up but not at 2007 levels. Companies have realised there are ways of keeping costs down. Besides, the market saw a 40 per cent drop in the price of travel products last year,” said Bali.

BCD Travel India is expecting a 50 per cent growth in business this year, albeit from 2009's low base.

Christchurch (2010-09-09)

IN less than a week after a major earthquake hit Christchurch and its surrounding areas, 98 per cent of tourism operators in the city are up and running again.

Travellers who have bookings for future travel to Christchurch and Canterbury are advised to keep their bookings, said the Christchurch and Canterbury Tourism.

Christchurch Airport is open to both domestic and international flights, and bus and rail services are operating largely as usual.

The cordon in the city centre will be lifted tomorrow morning.

Tune firms up six hotels in India

FOLLOWING a joint venture signed last year with India’s Apodis Hospitality, budget brand Tune Hotels has firmed up six properties in South India, the first of which is expected to open by end-2011 or March 2012.

The six locations – Bangalore, Calcutta, Hyderabad, Chennai, Cochin and Trivandrum – are all in the network of low-cost carrier AirAsia, whose head honcho, Tony Fernandes, owns Tune Hotels.

Apodis Hospitality's chief investment officer, Umesh Luthria, said the joint venture – a management company – was on track to have 20 Tune Hotels in three years.

He said the properties kept to the model of Tune Hotels except for room sizes, which must conform to Indian regulations of a minimum of 13m² for a single room and 15m² for a double.

Luthria brushed aside skeptics who did not believe Indian guests would pay for extras such as towels, air-conditioning and TV.

He believed that his decision to partner Tune and not a global hotel player with a budget brand was the right one.

“We picked Tune Hotels because it is an Asian company and thus understands the Asian guest psyche better, because it came out of an airline company, which understands the concept of limited service better than hotels, and because it came from a budget carrier, whose customers understand that they will get what they pay for,” he said.

He expected an ARR of US$30 for Tune Hotels in India. This is probably the lowest hotel rate travel agents can get in India. A new economy hotel brand, Peppermint, by India's Royal Orchid Hotels, expected a rate of US$80 for a 20-22m² room. According to chairman and managing director, Chender Baljee, that is lower than what he believed an Ibis in India fetches, US$100 in general.

– Full report, TTG India, November/December issue

Louvre Hotels to open budget hotels in India

FRENCH hotel chain Louvre Hotels, the world's eighth-largest hotel group, is ready to penetrate the budget segment in India, citing the country as its “top priority” in Asia.

Vice president of international operations, Olivier Derycke, said Louvre Hotels would bring its one- and two-star brands, Premiere Classe and Campanile respectively, to the top 10 cities in India in the medium term.

It has already secured a few projects and aims to have at least 50 properties within the next three years.

“We see India, with its fast-growing economy and high numbers of young people, as the country of the future,” said Derycke.

Louvre Hotels surveyed both domestic and international travellers to India as early as a year ago to understand consumer tastes.

Derycke said there was a good match between what the brands could offer and what Indian consumers valued.

For instance, India's strong food culture meant its Campanile hotel-restaurant would resonate among locals. The tech-savvy country would also appreciate touches like free Wi-Fi and smartphone check-ins offered by the brand.

Derycke added that Louvre Hotels would further “Indianise” their budget brands by adapting to local preferences such as bigger public spaces within the hotels and higher levels of service.

S Puvaneswary, Kuala Lumpur (2010-09-08)

INBOUND tour operator, Morahols Travel, opened its first overseas representation office last month in Mulhouse, France.

The office, known as Travel Definition, will cover sales in France, Switzerland and Germany for both MICE and leisure travel.

Morahols Travel's managing director, Eric Sinnaya said he hoped to triple sales turnover from the three countries next year, from last year’s turnover of RM1.2 million (US$385,173).

Singapore (2010-09-08)

THE ASEAN Tourism Forum (ATF) 2011, which will run from January 19 to 21 at Phnom Penh’s Diamond Island Convention and Exhibition Center, is seeing excellent response early in its registration drive.

At press time, more than 70 per cent of the 450 available booth space had been secured by 240 exhibiting companies across the 10 ASEAN countries. 

More than 600 applications had also been received from buyers across the world. Only 400 of the best buyers will be selected to attend the event under a privileged hosting programme.

STA beefs up Thailand pages in new brochure

AUSTRALIA’S STA Travel is looking to feature four- to five-star beach accommodations in Thailand for its new “Beach Escape” brochure.

Product manager Natasha McLaughlin said of the 100 pages, 24 pages would be dedicated to Thai beach hotels and resorts. “Thai beaches are our best-selling destinations,” she added.

The first-time visitor to TTM plus GMS was on the lookout for beach accommodation in new destinations like Koh Chang, Koh Lanta, Koh Phi Phi and Krabi, on top of the popular Phuket and Koh Samui.

Several Bangkok accommodations will also be highlighted, along with other stopover cities.

The brochure is expected to be launched in October/November.

TTM plus GMS kicks off in Bangkok

THE THAILAND Travel Mart plus Amazing Gateway to the Greater Mekong Subregion (TTM plus GMS) 2010 opened today, meeting its target for registered buyers despite its earlier cancellation.

Held at the IMPACT Convention Center in Greater Bangkok, the three-day show was rescheduled from its original date in June, as Bangkok reeled from what the travel trade described as one of the worst political crisis in the modern-day Thai capital.

Running until Friday, TTM plus GMS 2010 will be a trading platform for 335 registered buyers from 49 countries, and 388 sellers and organisations in 425 booths. The 10 per cent of buyers that had earlier pulled out had been replaced by new participants. About 60 trade visitors from South Korea, China and Japan will also be present.

“We have reached our target for registered buyers and have managed to attract participants from new markets,” said Sansern Ngaorungsi, Tourism Authority of Thailand's deputy governor for international marketing (Asia and South Pacific).

Of the 335 buyers, 70 were from India, 25 from the UK, 23 from the US and 21 from Russia. New markets that were represented include Brazil, Mexico, the UAE, Turkey, Lithuania and Kazakhstan.

Gracia Chiang, Singapore (2010-09-08)

TOURISM Australia (TA) rolled out its There's Nothing Like Australia global campaign in Singapore yesterday, even as it hoped to push full-year arrivals from Singapore above the 300,000 mark for the first time.

TA is targeting 306,000 visitors from Singapore this year, up from 285,300 in 2009.
With 86 per cent repeat visitation from Singapore arrivals, the campaign aims to offer a fresh look at Australia through the eyes of Singaporeans, said Maggie White, TA’s general manager, South/South-east Asia and Gulf Countries.
From September 15 to October 8, the NTO is inviting Singapore residents to submit their favourite Australian holiday experiences through online platforms such as Facebook, in the hope that this will inspire their friends to visit the destination.
Such focus on user-generated content for a TA campaign is new, and its launch in Australia in March saw more than 29,000 entries by Australians. Some 3,500 entries were compiled into an online interactive image map and all Singaporean entries will be added to this.
The campaign will run across multiple media platforms including broadcast, print and outdoor media. A new television ad has also been created.
- Read more in TTG Asia, September 17 and PATA Travel Mart daily next week

Raini Hamdi, Singapore (2010-09-07)

AS travel agents worldwide fight tooth and nail for bookings and customer loyalty in the Internet era, Hong Kong-based Langham Hotels International is launching next month a new travel agent incentive programme designed to make agents look good in their customers’ eyes.

Every guest booked into Langham by an agent who is part of the new programme, Langham Couture, will be upgraded, earn six hours of free stay that can go towards early check-in or late check-out, and receive a welcome amenity from the agent arranged by Langham, among other 'bespoke' add-ons.

“By focusing on taking good care of their guests, we’re incentivising the guests to go back to the travel agent for their bookings, and to us for their stay. Everybody wins,” said Langham Hotels International vice president sales and marketing, Bob Van Den Oord.

He said agent focus groups showed this was the way to go, and Langham Couture was designed with the help of the US travel agent advisory board.

Langham Couture will be by-invitation-only. Agents will be selected based on their current loyalty to Langham and/or ability to bring new business from Langham’s competitor set.

Langham also operates a Travel Agent University where agents are certified following an online test and earn points when booking Langham which they can redeem for free stays, meals or other rewards.

The hotel group is adding more agent programmes as it expands rapidly in the region. It has 12 hotels in operation, another 12 in construction and 20 in various stages of negotiation.

“We’re confident of growing to 50 hotels in the next five years,” said Van Den Oord during a media luncheon in Singapore today.

- Full report of Langham's expansion and marketing plans, TTG Asia, September 17

Accor starts 'manchising' Ibis in China

ACCOR Asia-Pacific has started a new model, 'manchising' – franchising with some degree of control such as appointing the GM for the franchised property – to grow its economy brand Ibis in China.

Ten new Ibis manchises have been secured since May and chairman/COO Michael Issenberg said there would be 100 Ibis hotels in the mainland by 2013, citing strong demand from developers for the product.

Most of the 40 Ibis hotels which opened in the past two years were in China, with Accor having equity in the properties as part of the brand’s development strategy. This gave it insights into adapting the brand to local market conditions, to the point it is now ready to manchise the brand.

“The China market is ferocious and the competition is domestic, so it is important to lift ourselves up in terms of service levels and to adapt, for example, the distribution strategy, to the market needs. But we get higher RevPARs from it,” he said.

Issenberg said in 2000, economy hotels in China did not even exist. With only 19 per cent of the hotel market in China being branded properties, the opportunities were huge.

He said in 2000, the majority of Accor Asia-Pacific’s development was in upscale and midscale. This year, 40 per cent is in economy and he expects “the largest part” of Accor’s development in the region by 2013 to be in the economy sector.

Accor will open 40-45 hotels in Asia-Pacific this year and 60 new hotels in the region next year.

- Full report in TTG Asia, September 17

Ollie Quiniquini, Udaipur (2010-09-07)

INDIAN themed tour specialist, Kesari, will open an office in the UK by the end of the month. K Universal UK will be the company's first office overseas.

Director Sudhir Patil told TTG Asia e-Daily the office will initially target the large Indian resident community in the UK before branching out to mainstream UK nationals.

“We already had people booking with us from the UK so we thought of establishing our first overseas presence there. The market is already familiar with our brand,” said Patil.

He added that Kesari would eventually look at opening offices in the US, Singapore, Australia, South Africa and Dubai.

Virginia (2010-09-07)

THE INTERNATIONAL Association of Amusement Parks and Attractions (IAAPA) is expanding its presence in the region with a new home in Hong Kong for its Asia-Pacific operations.

Its Singaporean executive director, Andrew Lee, will start work on September 16.

“Asia has the fastest-growing attractions industry in the world so it is only natural for IAAPA to open an office in the region,” said IAAPA chairman Chip Cleary. The association has two other regional offices in Europe and Latin America.

Lee most recently served as director, business ventures for a joint alliance between AsiaWorld-Expo, Global Sources and Pico Global Services. He was also the former executive director of the World Events Organisation.

He will report directly to Charles Bray, president and CEO of IAAPA, and will work closely with the IAAPA Asian Advisory Committee.