ACCORDING to the annual Economic Impact Report 2016 by the World Travel & Tourism Council (WTTC), the tourism sector added 7.2 million jobs to the global economy and contributed over US$ 7.2 trillion to worldwide GDP last year, or 9.8 per cent of global GDP.

David Scowsill, president and CEO, WTTC, noted the sector’s significant 3.7 per cent growth and resilience despite uncertainty in the global economy and challenges to the sector last year, including “terror attacks, disease outbreaks, currency fluctuations and geopolitical challenges”.

He added: “Travel and tourism also supported a total of 284 million jobs in 2015, an increase of 7.2 million, which means it now supports, directly and indirectly, one in 11 jobs on the planet.”

The sector’s direct contribution to GDP growth outpaced overall GDP country growth in 127 of the 184 countries covered by the research. This trend was most marked in countries including Iceland, Japan, Mexico, New Zealand, Qatar, Saudi Arabia, Thailand, and Uganda.

The growth of the sector has been attributed to a worldwide increase in middle-class households, an ageing population, which tends to travel more, and growing connectivity between destinations, making travel more accessible and affordable.

While all regions of the world showed growth in GDP contribution, South-east Asia was the fastest growing with a 7.9 per cent increase followed by South Asia, which grew 7.4 per cent.

Meanwhile, the Middle East grew 5.9 per cent, the Caribbean 5.1 per cent, Sub-Saharan Africa 3.3 per cent, North America 3.1 per cent, Europe 2.5 per cent, North-east Asia 2.1 per cent, Latin America 1.5 per cent and North Africa 1.4 per cent.

In 2016, the sector is forecasted to grow by 3.5 per cent in total contribution to GDP, and is again expected to outpace global economic growth for the sixth consecutive year.

INDONESIA has finally decided to grant Australia’s travellers visa-free facilities despite the unlikelihood Indonesian passport holders will get the same treatment from the Australian government.

Australians were previously granted visa-free access into Indonesia, but got dropped from the list because Indonesian law stipulates the rights have to be given on a reciprocal basis.

The Indonesian Ministry of Tourism is currently requesting that Australia give its citizens visa-free access since Indonesia is one of the biggest source markets for Australia, with the potential to grow even further.

Even if unsuccessful, the new policy remains a boon for Indonesia’s arrival numbers, according to Arief Yahya, Indonesia’s minister of tourism, who expects some 20 per cent growth in arrivals from Australia with the change.

Citizens from a total of 168 countries are now granted the right to enter Indonesia visa-free for 30 days via selected major entry and exit points in the country.

Exterior of Brussels Airport after the bombing. Credit: @News_Executive

TOURISM organisations worldwide have swiftly shown their support for those affected by the bombings in Brussels yesterday, while at the same time condemning the attack and urging governments to work together to fight the global terrorism threat.

The bombings, which ISIS has claimed responsibility for, had resulted in at least 34 dead and more than 200 injured. Citizens of the US, Spain, and Sweden are among the injured.

Transportation hubs in Brussels were the targets in this attack, with Brussels Airport in Zaventem and Maelbeek station in the city center hit.

Two bombs first struck the airport at around 8.00 local time, killing 11. Both went off in the departure hall area, shattering window glass and sending ceiling tiles falling to the ground. The airport was shut down immediately and remains closed today, with flights either being cancelled or diverted.

After the attack on the airport, a third bomb later exploded at Maelbeek metro station at around 9.10, killing more than 20. Trains will remain running but at reduced frequencies.

The UNWTO expressed in an official statement its condolences to the families and friends of the victims soon after news of the attack, saying they are in “full solidarity with the people and the government of Belgium”.

Taleb Rifai, UNWTO secretary-general, added: “This is not an attack on Belgium, it is an attack on us all and sadly these tragic events remind us again that we are facing a global threat that needs to be addressed globally.”

David Scowsill, president and CEO, WTTC, also expressed his condolences, and went on to urge governments worldwide to work more closely to combat terrorism, to increase security measures on the ground, and to expand intelligence sharing.

“Enhancing security does not mean closing down borders. We encourage governments to make policy decisions that balance safety of their citizens with continuing to facilitate travel for business and leisure purposes,” he pointed out.

As well, Greeley Koch, executive director, Association of Corporate Travel Executives (ACTE), conveyed his sympathies, adding that “the best way to fight fear and intimidation is through duty of care programmes that protect and reassure travellers in proximity to senseless acts of terror.”

According to him, ACTE members, which consist of travel managers, in Europe and around the world, activated security programmes that located travellers and provided them with information critical to their safety as soon as they realised the danger.

Meanwhile, travel booking platforms such as Cologne-headquartered HRS have announced free cancellations for booked trips to Brussels as a service to their clients.

The situation in Brussels remain tense with the Belgian government having raised the security threat level in the country to its maximum. The US embassy in Brussels has also urged US citizens to avoid public places and mass transportation there, while warning of further attacks in Europe.

A perpetrator of the attack remain on the loose but local authorities have identified the man as 25-year-old Najim Laachraoui, and are on the hunt for him. Two other attackers seem to have committed suicide attacks.

SHANGRI-LA International in partnership with Malaysia’s Concorde Arch will be developing the first Hotel Jen in Kuala Lumpur, the second property under the brand to open in Malaysia following the signing of Hotel Jen Kota Kinabalu in September 2015.

Opening in 2019, the 200-room Hotel Jen Kuala Lumpur will be strategically located in Kuala Lumpur at the intersection of Jalan Sultan Ismail and Jalan P Ramlee, 800 metres from the city’s landmark Petronas Twin Towers and 300 metres from the KL Tower.

The hotel will cater to both business and leisure travellers, being in close proximity to the central business district and Kuala Lumpur City Centre (KLCC), as well as being close to shopping malls, street markets and a range of restaurants and entertainment options.

Facilities at the 36-stories tall property include all-day dining restaurant Jen’s Kitchen, the Rooftop Sky Bar, an infinity lap pool, various meeting rooms and a club lounge.

The Ferrari World Abu Dhabi

ICONIC Italian automotive company Ferrari has announced plans to build a branded theme park in China.

According to a statement released by Ferrari last week, they have entered into a non-binding MoU with Beijing Automotive Group and BAIC Eternaland Property “for the licensing of the design, construction and operation of a new Ferrari theme park to be located in one of the primary cities in mainland China.” No other details were given.

This isn’t the first Ferrari-branded theme park in the world. The Ferrari World Abu Dhabi, located on Yas Island in the UAE, has been in operation since November 2010 and is currently the only Ferrari theme park worldwide.

Fiorano GT Challenge

The amusement park in Abu Dhabi features rides for both adults and children. Highlights include the world’s fastest roller coaster, the Formula Rossa; a duelling roller coaster, the Fiorano GT Challenge; and a Driving Experience where you get to drive around in an actual Ferrari sports car.

NORWEGIAN Cruise Line Holdings (NCL) is expanding quickly into Asia with the opening of its Singapore and Tokyo offices this month to support the continuing penetration of its three brands – Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises into the region.

It first opened its Asian head office in Sydney in November 2015, followed by offices in Hong Kong, Shanghai and Beijing. It also has plans to enter Mumbai and Delhi.

Even though they are late to market, NCL’s senior vice president and managing director for Asia-Pacific, Steve Odell, said they are looking to quickly expand their trade distribution channels.

“While making sure to protect our past relationships with big partners Jetour and Miramar Travel, we would also grow our distribution by expanding the number of partners,” he explained, adding that a call centre has recently been established in Hong Kong to support the travel trade.

He continued: “In 2016, events and trade initiatives like educational seminars and training are planned. This ranges from classroom training to familiarisation trips. A 40 pax fam tour to Hawaii will set off this week and travel agents from Japan, Taiwan, South Korea and Hong Kong are invited.”

The group had also announced the NCL Joy late last year, a purpose-built cruise liner for the Chinese market that will launch by 2Q2017 from its homeport in Shanghai. The new ship will be the second of NCL’s Breakaway Plus class ships.

Other plans include Regent Seven Seas Cruises having WiFi available onboard its vessels in April, and the inaugural launch of the 56,000-tonne Seven Seas Explorer which features the largest suite rooms available at sea.

The Sheraton Adana Hotel, part of Starwood’s portfolio

STARWOOD Hotels & Resorts Worldwide has tentatively ended the tussle between Marriott International and a consortium led by Anbang Insurance Group for ownership of the international hospitality chain, with Starwood yesterday agreeing to a new deal with Marriott under amended merger terms.

Under the new agreement, Starwood shareholders will receive US$21 in cash and 0.8 shares of Marriott’s Class A common stock for each share of Starwood’s common stock, valuing Starwood at approximately US$13.6 billion or US$79.53 per share, consisting of US$10 billion of Marriott stock, based on the closing price of US$73.16 on March 18, and US$3.6 billion of cash, based on approximately 170 million outstanding Starwood shares. This excludes Starwood’s timeshare business.

Starwood shareholders will own approximately 34 per cent of the combined company’s common stock after completion of the merger, based on current shares outstanding.

In addition, Starwood stockholders are expected to receive separate consideration in the form of Interval Leisure Group (ILG) common stock from the spin-off of Starwood’s timeshare business and subsequent merger with ILG, currently valued at US$5.83 per Starwood share, based on ILG’s share price as of market close on March 18.

Commenting on the renegotiated deal, Bruce Duncan, chairman of the board of directors of Starwood, said: “We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.”

The transaction, which will result in the world’s largest hospitality chain with 1.1 million rooms spread throughout 5,500 properties, is still subject to Marriott and Starwood stockholder approvals, completion of Starwood’s planned disposition of its timeshare business, obtaining remaining regulatory approvals and the satisfaction of other customary closing conditions.

According to a joint statement released by Marriott and Starwood, some regulatory consents have already been completed, such as pre-merger antitrust reviews in the US and Canada.

“After five months of extensive due diligence and joint integration planning with Starwood, including a careful analysis of the brand architecture and future development prospects, we are even more excited about the power of the combined companies and the upside growth opportunities,” said Arne Sorenson, president and CEO, Marriott International.

“We are also more confident of achieving our updated target of US$250 million of cost synergies. With a higher cash component in the purchase price, we have improved the transaction’s financial structure as well.”

Assuming receipt of the necessary approvals, the transaction is expected to close by mid-2016. Termination fees payable by Starwood has also been increased to US$450 million from US$400 million. In circumstances in which the break-up fee is payable, Starwood would also be required to reimburse Marriott for up to US$18 million of actual costs incurred by Marriott in connection with the financing of the transaction.

But analysts Baird Equity Research expects the Anbang-led group to remain aggressive and return with a higher all-cash counteroffer. “Overall, we believe Marriott will remain disciplined, and we continue to expect that the company will not engage in a protracted bidding war for Starwood,” it added in a statement.

“Additionally, we believe the US$450 million termination fees makes Marriott much more indifferent between acquiring Starwood and walking away if the Anbang consortium counters with a superior proposal.”

Starwood had last week considered a rival bid made by a group led by China’s Anbang along with its partners Primavera Capital Group and J.C. Flowers & Co., calling the estimated US$13 billion offer a “superior proposal” to Marriott’s initial one made in November 2015.