AIRLINE share prices fell 6.9 per cent in April, ending the month over eight per cent less than levels seen beginning this year, according to an IATA financial report.

The dip erased gains experienced from February and March with airline shares underperforming the wider equity market significantly last month. IATA attributes the lacklustre performance to investor concerns about declining yields and industry profitability.

The region that saw the biggest month-on-month slide was North America at 12.5 per cent, while airlines in Europe and Asia-Pacific saw more modest declines at 3.8 per cent and 3.1 per cent respectively.

Passenger load factors also gave no respite for airlines in 1Q2016, with numbers mirroring that of 1Q2015, while seasonally-adjusted loads slipped in February and March.

Despite the setbacks, overall year-on-year performance still indicate growth, with post-tax profits from 1Q2016 being 12 per cent higher compared to the same period in 2015, and global passenger traffic seven per cent higher.

A better picture of the aviation industry will emerge as more airlines reveal their first quarter financial results in the coming months, added IATA.

THE South Beach Consortium, holding company of Singapore’s The South Beach hotel, is in talks with Marriott International to hand over management of the property to them.

If successful, The South Beach will come under the JW Marriott brand, the first one in Singapore, alongside other Marriott-managed properties in the city-state, such as Marriott Singapore Tang Plaza and The Ritz-Carlton, Millenia Singapore.

It is unclear at this stage what will become of the office tower, part of the South Beach mixed-use development, that includes tenants such as Expedia, The Lego Group, and Facebook.

Other components of the development include F&B joints, nightclubs, retail outlets and serviced residences.

Ownership of the property jointly belongs to City Developments Limited and IOI Properties Group Berhad.

Lozano Travel office in Texas

MEXICO-BASED Lozano Travel, part of the Virtuoso travel agency network, has opened Lozano Travel Bali yesterday, its first DMC based in Asia.

Lozano Travel Bali is a joint venture between the company and Dewata Premajaya, an Indonesian travel company owned by Indonesian travel veterans Hanafi Sastrawinata and I Wayan Sukiana.

Sergio Lozano, owner and founder of Lozano Travel, said: “Our company focuses on the high-end honeymoon market from South America and in the last 15 years, Bali has been the top destination in Asia, followed by Thailand and Maldives.

“With the Bali office opening, we are going to create more experiential programmes to suit the market’s requirements and to double the business, from around 500 passengers annually to 1,000 within a year.”

Lozano also plans to open a second Asian office in Thailand later this year.

He said that Mexicans could spend between three weeks and a month when they take a longhaul honeymoon trip, which combines Bali, where they stay for around a week, and other countries like Thailand, Cambodia, Myanmar and India.

Quizzed on accessibility, Lozano said travellers usually take a flight from Mexico City to Los Angeles and connects to Bali via Hong Kong or Singapore. Alternatively, flights are available from Mexico City to Tokyo or Shanghai then to Bali.

Commenting on the new joint venture, Hanafi, who will lead the Bali office as managing director, said: “Sergio and I have known each other for a long time. I have been handling his clients (in the previous company), so we are looking forward to welcoming more South American travellers to Indonesia.”

Rodrigo Duterte

RODRIGO Duterte, the strongman of Davao whom Filipinos voted in as their new president on Monday’s election, may well foster a more robust tourism landscape in the Philippines, said those in the travel trade.

“He has a very good track record for promoting security, peace and order in Davao City. That’s very important for tourism and if he can bring that to the entire country, then it will positively impact inbound tourism,” said Edwin L Villanueva, general manager, Light Miles Travel.

Duterte, who had been Davao’s mayor for a long time, converted the city from one laden with drugs and killings into one that is now clean, safe and secure.

Concurring, Avelino Zapanta, president and CEO, Seair, said: “His avowed fight against criminality augurs well for tourism. It should add to tourists’ confidence in the peace and order of the country.”

Michelle Victoria, president, Philippine Travel Agencies Association (PTAA), said that Duterte was already “very supportive” of tourism and PTAA events even before his candidacy, and that “it would be very good for the industry if Duterte can make the Philippines safer”.

However, she notes that it’s too early to tell what Duterte’s presidency will mean for tourism. Angel Ramos Bognot, president and managing director, Afro Asian Travel and Tours, agrees that it is still early days.

“But when it comes to the culture of discipline that he is known for, it will help tourism,” said Ramos Bognot, pointing out how millennials who have recently entered the tourism industry lack the culture of discipline and Filipino hospitality.

Others interviewed say they hope Duterte will address daily issues Filipinos face that are also affecting tourists’ experiences, such as traffic and airport congestion, petty crime and rail faults.

Duterte’s plan for tourism is not yet known, but speculations indicate that he wants a woman to replace current tourism secretary Ramon Jimenez, Jr.

Meanwhile, Cynthia Ruano, president of the Davao Association of Tour Operators, noted that Duterte’s economic agenda, revealed yesterday, included plans to advance transportation infrastructure, reducing crime and corruption and promoting tourism in rural areas.