Tourism hits 1.4 billion target ahead of forecast

January 23, 2019

International travellers — International tourist arrivals hit 1.4 billion last year

International tourist arrivals grew 6% in 2018, reaching the 1.4 billion target two years ahead of forecast, according to the latest UNWTO World Tourism Barometer, although more modest growth is expected for 2019.

UNWTO estimates that worldwide international tourist arrivals (overnight) increased 6% to 1.4 billion in 2018, surpassing the 3.7% growth registered in the global economy. The Middle East (+10%), Africa (+7%), Asia-Pacific and Europe (both at +6%) led growth in 2018, while arrivals to the Americas were below the world average (+3%).

International tourist arrivals hit 1.4 billion last year

UNWTO’s long-term forecast published in 2010 predicted the 1.4 billion mark of international tourist arrivals for 2020. Yet stronger economic growth, more affordable air travel, technological changes, new businesses models and greater visa facilitation around the word have accelerated growth in recent years.

Results by region
International tourist arrivals in Europe reached 713 million in 2018, a notable 6% increase over what UNWTO says was an exceptionally strong 2017. Growth was driven by Southern and Mediterranean Europe (+7%), Central and Eastern Europe (+6%) and Western Europe (+6%). Results in Northern Europe were flat due to the weakness of arrivals to the UK.

Asia-Pacific (+6%) recorded 343 million international tourist arrivals in 2018. Arrivals in South-east Asia grew 7%, followed by North-East Asia (+6%) and South Asia (+5%). Oceania showed more moderate growth at +3%.

The Americas (+3%) welcomed 217 million international arrivals in 2018, with mixed results across destinations. Growth was led by North America (+4%), and followed by South America (+3%), while Central America and the Caribbean (both -2%) reached very mixed results, the latter reflecting the impact of the September 2017 hurricanes Irma and Maria.

Data from Africa points to a 7% increase in 2018 (North Africa at +10% and Sub-Saharan +6%), reaching an estimated 67 million arrivals.

The Middle East (+10%) showed solid results last year consolidating its 2017 recovery, with international tourist arrivals reaching 64 million.

Growth expected to return to historical trends in 2019
Based on current trends, economic prospects and the UNWTO Confidence Index, UNWTO forecasts international arrivals to grow 3% to 4% next year, more in line with historic growth trends.

As a general backdrop, the stability of fuel prices tends to translate into affordable air travel while air connectivity continues to improve in many destinations, facilitating the diversification of source markets. Trends also show strong outbound travel from emerging markets, especially India and Russia but also from smaller Asian and Arab source markets.

At the same time, the global economic slowdown, the uncertainty related to the Brexit, as well as geopolitical and trade tensions may prompt a “wait and see” attitude among investors and travellers.

Overall, 2019 is expected to see the consolidation among consumers of emerging trends such as the quest for ‘travel to change and to show’, ‘the pursuit of healthy options’ such as walking, wellness and sports tourism, ‘multigenerational travel’ as a result of demographic changes and more responsible travel.

Tourism Australia rolls out second-tier of specialist training programme in HK

By TTG Asia

January 23, 2019

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Twenty agents have been inducted into the newly-launched Premier Aussie Specialist Program in Hong Kong, one tier up from its basic Aussie Specialist Program.

Membership in the Premier Aussie Specialist category is an acknowledgement of the destination expertise, insider knowledge and strong ties with the Australian travel industry of Aussie Specialist agents. The Premier Aussie Specialist Program also offers professional validation for retail agents selling Australian holidays to consumers.

John O’Sullivan posing with 20 of the newly-inducted agents who are now Premier Aussie Specialists

As part of the membership, Premier Aussie Specialists are invited to attend exclusive travel industry workshops, market updates and training events hosted by Tourism Australia and Australia’s states and territories.

John O’Sullivan, managing director, Tourism Australia said: “The Premier Aussie Specialist Program seeks to recognise the invaluable advocacy that travel advisors, who have been selling Australian holidays for many years, deliver for the destination.”

The programme has recruited more than 1,116 travel agents in Hong Kong.

Arrivals from Hong Kong to Australia grew by 11 per cent for the year (ending in October 2018) to 305,000 visitors, making Hong Kong the 10th largest inbound market for Australia.

Diethelm Travel Group moves into new Bangkok HQ

By TTG Asia

January 23, 2019

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Diethelm Travel Group has moved its headquarters to a new office location in Bangkok, which welcomed its first visitors last week.

Beginning with a morning blessing ceremony performed by Buddhist monks for staff and select guests from the media, the day continued with a hosted lunch followed by an afternoon open house.

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The Diethelm Travel team, dressed in traditional Thai attire, then met with clients and special attendees, including over 160 hoteliers, for a social afternoon tea.

In lieu of gifts or flowers, attendees contributed donations for the Saijaithai Foundation to help support regions of southern Thailand recently affected tropical storm Pabuk.

Commenting on the Bangkok headquarters’ new home, CEO Stephan Roemer said: “We’ve moved our headquarters to a new office space that better fits the company’s growth and commitment to operating at a high international standard… We (welcomed guests) to our new home and introduced them to the next era of Diethelm Travel in Bangkok.”

The new office is located at No. 140/7, ITF Tower, 8th Floor, Silom Road, Suriyawong, Bangrak. Its main line phone number is now (66) 2 782 7000.

Vienna House plots entry into Asia with Vietnam debut

By TTG Asia

January 23, 2019

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Vienna-House-Vung-Tau-Project — Concept art of Vienna House Vung Tau

Austrian hotel chain Vienna House is expanding into Asia, with a debut planned for Vung Tau, a beach resort about 175km from Ho Chi Minh City in southern Vietnam.

Currently operating close to 40 locations throughout Europe, Vienna House has unveiled the Vienna House Vung Tau as its first Asian location, set to open in 2021.

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“Vienna House Vung Tau is a great step in the first phase of an ambitious expansion plan to bring Vienna House throughout Asia,” said Jonathan Wigley, CEO of Vienna House Asia, pointing to Vietnam’s “vigorous” tourism growth in recent years.

Other Vienna House properties in Thailand and Indonesia will be announced shortly, he added.

The Vung Tau property will be an oceanfront resort offering 775 rooms, suites, penthouses and villas. Facilities include pools with pool bars, an onsen hot bath, a gym, tennis courts, a sports bar, an all-day dining restaurant, a fresh seafood market, a cafe and tea room, a 530m2 grand ballroom, flexible meeting rooms and retails areas.

Laos turns focus to China, SE Asia markets

By Marissa Carruthers

January 23, 2019

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Laos has set its sights on attracting one million Chinese visitors this year as part of the Visit Laos-China 2019 campaign, with a series of events, fam trips and seminars lined up to grow this key source market.

Sounh Manivong, director general of tourism marketing department, Laos’ Ministry of Information, Culture, and Tourism (MICT), said: “We want to collaborate with many countries in the future. China is a market with huge potential, so we will start with them and then expand to other nations.”

The two countries have signed an agreement to push tourism in both destinations, starting with a launch event in Vientiane on January 25, followed by a Laos tourism promotion seminar for Chinese business and tourism players.

Other activities include Laos hosting a large-scale promotional event in Beijing in April; a Laos festival in Hunan in July; a promotion seminar in Pakse in August; and a fam trip for Chinese media in southern Laos, before rounding out the year with a closing ceremony in Beijing in December.

With more than five daily flights connecting China and Laos, Sounh said work is underway to secure more direct flights with major Chinese cities this year.
Sounh added the government is working to secure more flights, including from Japan. Promotional activities will also be carried out in South Korea and Japan – two key target markets.

The country landed a recent coup in Scoot’s thrice-weekly flights from Singapore to Luang Prabang and Vientiane, which will begin in April.

China aside, Laos is putting South-east Asia on its radar. “A few years ago, our target markets were Europeans and Americans. This year we are changing this by focusing on attracting South-east Asians and Chinese,” said Somxay Chongheumoua from the tourism marketing research division of MICT’s tourism marketing department.

The increased focus on South-east Asian travellers is coming as good news for some tourism businesses in Laos, although they continue to see Europe and the US as their core markets.

A Laotian tour operator who declined to be named told TTG Asia that compared to the Chinese and some Europeans, South-east Asian travellers are more inclined to spending on local businesses.

He observed: “Tourists from Thailand or even Vietnam are different – they would rather use local services and consume local products. This is important to ensure locals get to benefit from tourism.”

Additional reporting by Yixin Ng

Accor welcomes Banyan Tree to Le Club with four times the points

By TTG Asia

January 23, 2019

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Banyan-Tree-Hotels-and-Resorts_DoublePool-Villas-by-Banyan-Tree-Phuket — DoublePool Villas by Banyan Tree, Phuket

With most of Banyan Tree Hotels & Resorts’ portfolio now part of the Le Club AccorHotels loyalty programme, members can enjoy a limited time rewards offer for stays at Banyan Tree, Angsana and Cassia properties.

There are currently 48 properties under the Banyan Tree Hotels & Resorts’ global network, of which 37 will take part in the Le Club AccorHotels loyalty programme.

DoublePool Villas by Banyan Tree, Phuket

As part of the launch promotion, members who make bookings by February 24, 2019 for stays until 14 April, 2019 are entitled to four times the Rewards Points. Elite members of Le Club Accorhotels will enjoy additional member benefits and privileges.

AccorHotels and Banyan Tree announced a strategic long-term partnership in December 2016 whereby both groups will collaborate to develop and manage Banyan Tree-branded hotels around the world. The partnership also gives Banyan Tree access to AccorHotels’ global reservation and sales networks as well as the renowned Le Club AccorHotels loyalty programme.

To seek new highs, Thailand tourism looks to ‘out of the box’ attractions

By Xinyi Liang-Pholsena

January 22, 2019

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_The-Emquartier-Shopping-Mall-with-the-view-of-Bangkok-Skyline-on-Sukhumvit — The Emquartier in Sukhumvit, Bangkok

With some 37 million and growing international arrivals into Thailand, industry players are now pondering what else is needed to raise the country’s competitive edge in the tourism game and remain a desired destination, especially as neighbours such as Vietnam are also emerging as strong contenders on the regional travel landscape.

What will be much needed will be “out of the box” thinking and “bold” leadership, urged prominent business leaders at Thailand Tourism Forum (TTF) in Bangkok yesterday.

For a country that has no lack of cultural and natural attractions, what’s needed for Thailand now are a more vibrant entertainment sector as well as more iconic attractions and events to bolster tourism spending and make the country the “playground of Asia”, stressed Supaluck Umpujh, chairwoman of The Mall Group.

For too long, Thailand was perceived as a “backpacker’s paradise” and a “value for money” destination, which resulted in low tourism revenue for the country, Supaluck posited. “People (used to) buy cameras in Singapore, but take photos in Thai temples,” she remarked. “They eat, they stay but they don’t spend; (the expenditure) doesn’t correspond with numbers (into the country).”

The Thai retail queen asserted that the arrival of luxury shopping and entertainment complexes such as The Emporium, Siam Paragon and The EmQuartier – which are owned by The Mall Group – has since changed the face of Bangkok’s Siam district and lower Sukhumvit Road into prime investment areas for real estate and hotels alike.

Looking ahead, she also wants Thailand to move past the “low entertainment” the country is known for, into one that encompasses family and immersive fun for everyone.

The mega developments that The Mall Group has in the pipeline could possibly redefine the business, retail and entertainment scene in Bangkok, said Supaluck.

The Mall Group has recently entered into a joint venture with AEG, the US-based sports and live entertainment company, to pump more than 10 billion baht (US$315 million) into two new world-class arenas, EM Live and Bangkok Arena, that are will anchor two new entertainment districts in the Bangna district when they open by 4Q2022.

Such mega developments also present future investment opportunities for hoteliers. “Sticking near a resort or whatever that excites” will be key considerations as hoteliers “think of different different ways” in hotel development, remarked Clarence Tan, managing director South-east Asia & Korea at InterContinental Hotels Group.

For instance, Holiday Inn Resort Vana Nava Hua Hin, which opened four years after the water park was in operation, has helped to open new segment for families for Hua Hin, Tan added.

Said IHG’s head of resorts in Thailand & Indonesia, Shantha de Silva: “It was uncharted territories when we went in to work with a water park, which became a strong attraction on its own in Thailand. The brands went well together to drive tourism into Hua Hin, which is reflected in Hua Hin’s performance.”

Tan added: “People used to go to resorts for sun, sand and sea. And then there’s shopping, which I don’t disagree. Another ‘s’ came up today, which is sustainability. And then you add the sixth one, which is sports and entertainment; these will be safe spots to invest in.”

Stephan Roemer, CEO of Diethelm Travel Group, sees merit in the development of such attractions in Thailand, especially if they help to better position the country in attracting the luxury or family market segments.

However, Thailand clearly is still struggling with the current number of arrivals, so Romer hopes that infrastructure and capacity issues are something the Thai government would address.

As well, real improvements in Thailand’s outdated railway network as well as mass transit lines in key cities like Bangkok will also help the country create new scenic routes and better value for experiences, said Nikhom Jensiriratanakorn, director, Horwath HTL.

Meanwhile, Rahul Mittal, director at Cistri (Urbus), sees “a natural asset” in Bangkok’s Chao Phraya River and urges both the public and private sectors to come together to regenerate and develop the the city’s iconic feature and its surrounds.

Vietnam an outbound market to watch

By TTG Asia

January 22, 2019

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George Town, Penang's capital — Destinations like the state of Penang are beginning to tap opportunities in the Vietnam outbound market

Reporting by Mimi Hudoyo, S Puvaneswary, Marissa Carruthers and Pamela Chow

Bolstered by growing intra-region connectivity and a strong economy, Vietnam is emerging as a source market, with regional NTOs and tour operators training their sights and developing strategies to woo more Vietnamese travellers to their shores.

The MasterCard Future of Outbound Travel in Asia Pacific Report, 2016-2021 revealed that Vietnam’s CAGR growth in outbound travel is expected to reach 7.5 million trips by 2021.

Destinations like Penang (pictured) are beginning to tap opportunities in the Vietnam outbound market

Abdul Hadi Che Man, director of Tourism Malaysia in Vietnam, told TTG Asia: “Vietnam is a very fast-growing market for Malaysia. Until September 2017, arrivals grew by 54 per cent and daily expenditure increased 49 per cent from RM399 (US$97) to RM594.

He added: “Last year set high expectations but we will push for continual growth this year. We will work closely with our travel agent partners to explore the possibility of working with OTAs to attract more FITs.”

Trade players in Malaysia attribute the growing air connections from Vietnam as a key factor to driving arrivals. Penang, for instance, is a key beneficiary of enhanced air links from Vietnam.

AirAsia began four-times-weekly flights between Penang and Hanoi from July 2018, in addition to stepping up frequencies between Ho Chi Minh City and Penang from four-times-weekly to daily since last March.

With improved air accessibility, Penang Global Tourism is working with AirAsia on joint tacticals to promote the state, and will also exhibit at the upcoming Viet Nam International Travel Mart in Hanoi this March and the 15th International Travel Expo in Ho Chi Minh City, according to Ooi Chok Yan, CEO, Penang Global Tourism.

For Indonesia, the average 10 per cent growth posted for Vietnam in recent years makes it a significant market for the archipelago, even as numbers are still small at present.

Visitor arrivals from Vietnam to Indonesia in 2017 totalled 77,466, and the number is expected to reach 100,000 in 2018 (full year statistics for 2018 not yet available at press time).

While Vietnamese outbound traffic to Malaysia has been aided by rising air links, Indonesia is hampered by the lack of direct connections. Currently, the only direct flight is operated by Vietnam Airlines between Ho Chi Minh City and Jakarta.

Heri Hermawan, head of marketing division – Indochina, Ministry of Tourism, Indonesia, said: “Vietnam has the potential to become a primary market (in South-east Asia). Vietnamese interest in Indonesia is high, but so far it is still Bali. The lack of direct flights is an issue.”

Vietnam has emerged as a promising market in Singapore too. In 2017, Vietnam broke into Singapore’s top 10 source markets with a year-on-year increase of 13 per cent, reaching 531,000 arrivals and rivalling arrival volume from Thailand.

More recently, from January-November 2018, the market posted the highest year-on-year percentage growth of all South-east Asian nations in arrival numbers to Singapore. It registered a 12.4 per cent increase, seconded by Brunei at 11.8 per cent.

Several ATF sellers that TTG Asia spoke with are keen to woo this emerging market, which is still largely characterised by groups.

Irwan Raman, director of business development, Panorama Destination Indonesia, shared: “We have a marketing representative in Vietnam who supports us to penetrate the market beyond Ho Chi Minh City and Hanoi, such as to Danang, and introduce new destinations.”

Adam Kamal, general manager, Tour East Malaysia, said: “While Kuala Lumpur and Penang are still main draws, this year we are trying to promote Johor Bahru with overland transfers to Singapore.”

The Saujana Hotel Kuala Lumpur, senior director of sales & marketing, M Manimaran, said: “At this show, we hope to connect with Vietnamese outbound agents selling golfing tours as we have two, 18-hole championship golf courses within the resort.

“Our property is a five-minute drive to Ara Damansara Medical Centre, so medical tourism is another market we are exploring with our local travel partners.”

IHG picks Bangkok to plant first voco hotel in SE Asia

By TTG Asia

January 22, 2019

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voco_BKK_signing_ceremony_2 — IHG's Clarence Tan and B&G Estate's Theprit Srichawla

Less than a year following its unveil of voco, the InterContinental Hotels Group (IHG) has signed a management agreement with Thailand’s B&G Estate to bring the new upscale brand into South-east Asia with a new-build voco in Bangkok.

Scheduled to open in 2021, voco Bangkok Sukhumvit 11 will offer 300 guest rooms, a rooftop restaurant and bar, a swimming pool and pool bar, as well as a fitness centre. The hotel will also be equipped with meeting facilities able to accommodate up to 400 guests, with the largest meeting room capacity of 200 guests. The property is located near Nana BTS station.

IHG’s Clarence Tan and B&G Estate’s Theprit Srichawla

Commenting on this signing, Clarence Tan, managing director, South-east Asia & Korea, IHG said: “As the world’s most visited destination, Bangkok represents an excellent launch market for one of the newest additions to our brand portfolio. This signing continues the accelerated growth of the voco brand since we launched it last June.”

The signing of voco Bangkok follows the recent debut of the first voco in the world, voco Gold Coast in Australia, which opened its doors last November.

The owner, B&G Estate, is a Bangkok-based company that owns and operates a retail and corporate property, Interchange 21, and has plans to grow its hospitality portfolio.

IHG has 24 hotels operating under five brands in Thailand, including: InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express and Hotel Indigo, with another 27 in the development pipeline for the next three to five years.

Norwegian orders new ship for Regent Seven Seas Cruises

By TTG Asia

January 22, 2019

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Norwegian Cruise Line Holdings (NCLH) has announced a new 750-pax ship order for Regent Seven Seas Cruises, with the vessel expected to debut in late 2023.

A sister ship to Seven Seas Explorer and Seven Seas Splendor, the new 475 million euros (US$540 million) vessel will be designed and built by Fincantieri.

Seven Seas Explorer (pictured), launched in 2016, will be joined by the new Seven Seas Splendor

More details regarding the new ship’s dining venues, amenities and onboard experiences will be revealed leading up to 2023. Voyages for the ship’s inaugural season will go on sale in 2021.

The first Seven Seas Explorer ship made its debut in 2016, and the next ship, Seven Seas Splendor, is set for delivery in early 2020.

With this announcement, NCLH has 11 ships on order for delivery through 2027 including seven ships on order for Norwegian Cruise Line, two for Oceania Cruises and two for Regent Seven Seas Cruises. The company will take delivery of its newest ship, Norwegian Encore, in fall 2019.

Tourism hits 1.4 billion target ahead of forecast

Tourism Australia rolls out second-tier of specialist training programme in HK

Diethelm Travel Group moves into new Bangkok HQ

Vienna House plots entry into Asia with Vietnam debut

Laos turns focus to China, SE Asia markets

Accor welcomes Banyan Tree to Le Club with four times the points

To seek new highs, Thailand tourism looks to ‘out of the box’ attractions

Vietnam an outbound market to watch

IHG picks Bangkok to plant first voco hotel in SE Asia

Norwegian orders new ship for Regent Seven Seas Cruises

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