LUXEMBOURG for Tourism made an inaugural stop in Hong Kong during its annual five-day trade mission to China.

Conducted last week, the roadshow drew more than 70 travel agencies to meet up with five partner suppliers over a workshop session.

“We hosted the workshop for tour operators in Hong Kong primarily to build awareness,” said Anne Hoffmann, director general, Luxembourg for Tourism.

The Luxembourgish government has in recent times put more effort into tourism as a means to diversify the economy.

Hoffman added: “We did a lot of research and saw that many Hong Kong-based tour operators send traffic to Europe. Therefore, it’s vital to work closer with them and help include Luxembourg into their programme, so we’ll come back on a yearly basis.”

According to her, the key target demographics are couples, especially older ones with no children, and high-spending travellers as Luxembourg is known for its high quality of living.

Adonis Wong, sales and business development manager, GEG Travel, said: “This roadshow was helpful, but I do hope to see more suppliers join next time,” adding that Luxembourg still has a ways to go to become a popular destination for Hong Kong travellers.

FOUR Seasons Hotels and Resorts has unveiled three new 2017 itineraries for its Four Seasons Private Jet journeys.

Headlining the offerings is the Culinary Discoveries package, a three-week trip for gourmands that brings guests to the best eating spots around the world, including to Noma in Copenhagen, ranked by many institutions as the best restaurant in the world.

Throughout the journey, emphasis will also be placed on how food intersects with culture and community, having guests participate in hosted talks and touring private kitchens.

Culinary Discoveries jets off on May 27 from Seoul, and will make stopovers in cities such as Tokyo, Hong Kong, Chiang Mai, Florence and Paris.

The second itinerary, Global Getaway, is a 24-day, 9-destination tour that will bring guests from Singapore through the Middle East, to the Caribbean and to its final stop in Miami.

Highlights include exploring Dubai’s deserts by camel, catching Formula 1 racing in Monaco and savouring a gala dinner at the National Palace of Queluz.

Global Getaway takes place on March 16.

The final International Intrigue itinerary is a package bringing guests on adventurous experiences and granting them insider access to cultural spots in north America, Asia and Europe.

It includes a private craft brewery tour in Seattle, a dinner and Shaolin performance on the Great Wall of China, night snorkeling in the Maldives, spending time with locals in the Atlas Mountains and many more activities.

International Intrigue spans 24 days and takes off from Seattle on September 3, making its final stop in Boston.

The 2017 Four Seasons Private Jet journeys start from US$135,000, inclusive of private jet air travel, ground transportation, planned excursions, all meals and beverages, and accommodations at Four Seasons properties.

THE Global Business Travel Association (GBTA) is calling for dialogue and clarification between corporate travel buyers and hotels after Chinese premier Li Keqiang’s recent announcement that Value Added Tax (VAT) will be expanded to China’s hospitality sector.

The new VAT policy has been in effect since May 1.

Prior to this announcement, most corporate hotel guests in China pay an added 15 per cent on their bill that comprise a 10 per cent service charge and five per cent business tax. The new rule means to transform the five per cent business tax to a six per cent VAT.

As a result, the added charges for corporate travellers should increase to 16 per cent.

However, some hotels have erroneously added the six per cent VAT onto the initial 15 per cent, resulting in an additional 21 per cent charge instead.

The GBTA, along with its China counterparts, are thus encouraging greater discussion among travel managers and hoteliers in order to ensure companies are being charged rightfully.

Urging for business practices to remain compliant, Michael McCormick, executive director at GBTA, said: “China is taking bold steps to transform their tax policy to foster a stronger economy. The industry must ensure it is meeting the spirit of the reform and encouraging increased travel and hotel occupancy.”

FIRST quarter earnings of Germany’s flag carrier has descended into red, but the airline is adamant it will still achieve its set targets by year-end.

Lufthansa said in a statement that it drew a net loss of 8 million euros (US$9.2 million) in Q1, a stark contrast to the 425 million euros in profit gained compared to the same period in 2015.

According to the company’s CFO Simone Menne, revenues for the first quarter slipped by 0.8 per cent to 6.9 billion euros as a result of “significant pricing pressures” faced by the group’s passenger airlines and the cargo businesses.

But Menne assured that “the substantial unit cost reduction at our passenger airlines has more than made up for the pricing declines.”

She adds: “We are not just benefiting from further fuel cost reductions and non-recurring effects. We have also improved our operating cost structure. This marks an important change in trend in our unit cost development.”

Hence, the group is keeping its full-year forecasts unchanged, predicting an adjusted EBIT (earnings before interest and tax) that is “slightly above” the previous year’s 1.8 billion euros.

The forecast does not, however, include the negative impacts of possible strike actions, the company stated.

Last year, the German carrier was hit by both pilots and cabin crew strikes. This consequently resulted in a “significant” amount of earnings lost for the first quarter of this year, admitted Heiko Brix, regional director South-east Asia at Lufthansa.

When asked about the suspension of the airline’s Kuala Lumpur-Frankfurt route in February, Brix said: “We did not like terminating the service but we are perfectly covering it with our Singapore Airlines codeshare now.”

Instead, Lufthansa will be directing their efforts, at least for the rest of this year, into improving their products and increasing their capacity with new aircrafts, added Brix.

“As soon as the joint venture (with Singapore Airlines) is on track, we will then have the opportunity to grow and improve our network, which is of course the goal of any airline,” he said.

TRAVEL agents in Sri Lanka are “overjoyed” as KLM Royal Dutch Airlines (KLM) is set to resume direct services to the once war-torn country after a near 20-year absence.

KLM this week announced that it will commence twice-weekly flights on October 31, departing from Amsterdam Airport Schiphol aboard a Boeing 787 Dreamliner with 30 seats in World Business Class, 48 seats in Economy Comfort and 216 seats in Economy Class.

After pulling out of Colombo in 1997 due to the escalating conflict on the island, the airline only had services to Sri Lanka via Abu Dhabi, until now.

“I am excited by the return of KLM. This is massive boost to Sri Lankan tourism particularly for the European and north American sector,” said Ahintha Amerasinghe, managing director at Worldlink Travels.

He added that the industry might also benefit from increased traffic from South America, where KLM has a strong presence in.

As well, Sunil Peiris, director at Jetwing Travels, pointed out that a strong carrier like KLM would be a tremendous boost for Europe as a source market given how SriLankan Airlines and Austrian Airlines are the only ones currently providing direct connections there from Sri Lanka.

“It will enhance the value of Sri Lanka and encourage more carriers to fly to Colombo,” he said.

KLM stated it expects positive demand, noting how Sri Lanka’s per capita income has doubled in the past 10 years and that the island is a popular tropical leisure destination for Europeans.

Jayson Westbury, CEO, AFTA

FOLLOWING the closure of Garuda Orient Holidays’ Australian operations this week and Creative Holidays Australia just six months ago, the CEO of the Australian Federation of Travel Agents (AFTA), Jayson Westbury, is dismissing any suggestions the industry is in trouble.

Speaking to TTG Asia e-Daily, Westbury insisted that Australian travel agencies are “doing very well and thriving” and that the closures could be attributed to brand rationalisation that “happens from time to time in any industry”.

In a statement issued on Monday, general manager of Garuda Orient Holidays, Beanca Daluz, said: “Online travel agents have permanently altered the business model and more people are making their own arrangements online, forcing traditional travel arrangers redundant”.

But statistics show the contrary, according to Westbury, saying that travel agents are “as relevant today as they were 10 years ago”.

“Australians are using travel agents more and more and in some cases are mixing their approach to booking a holiday or trip,” he said.

“Over 80 per cent of international airline tickets sold in Australia are still via a travel agent and around 80 per cent of people booking a cruise is via a travel agent.”