Multiple new air links to lift Cebu’s tourism business

January 22, 2016

INBOUND tour operators from Cebu are looking forward to the launch of several new regional and longhaul flights that will enable the resort destination to further grow arrivals from Asia, the Middle East and Europe.

Eva Air will commence four weekly flights between Taipei and Cebu on March 27; Emirates will fly between Dubai and Cebu via Clark from March 30; Philippine Airlines will add a link between Los Angeles and Cebu in March.

Matt Poonin, manager, sales and marketing at Travelite Travel & Tours in Cebu, said his company is developing the Taiwanese market further by joining a roadshow being planned by the Central Visayas Department of Tourism to Taipei later this year.

Poonin anticipates the new flights by Emirates will also result in increased arrivals from Central Europe, especially from France, Germany and the Netherlands.

He said Travelite had developed new tours combining Cebu and Bohol as well as Cebu, Bohol and Siquijor for the European markets. Water activities will be highlighted in these packages.

Poonin has also just received a request from an automotive distributor in Paris for an incentive trip to Cebu, flying via Emirates from Paris to Dubai then to Clark and ultimately to Cebu.

Destination Specialists inbound manager, Marlyn Ebora, said: “Currently, most Europeans to Cebu like to travel by Singapore Airlines to Manila and then take a connecting flight to Cebu. Emirates has now provided another option and competition is good for consumers as it may result in more competitive airfares.

“We expect the new flights to draw more Europeans and we are working with hoteliers and ground transportation companies to offer better rates for European visitors.”

Emirates’ new services to Cebu come hot on the heels of the Philippines’ push to attract more Muslim tourists. One of the challenges Cebu currently faces in the pursuit of Muslim travellers is the lack of Muslim-friendly restaurants and facilities, but these issues are being addressed.

Rowena Lu Mentecillo, regional director of the Department of Tourism (DoT), Bohol and Cebu, said the DoT Central Office together with the National Commission of Muslim Filipinos had recently conducted a halal project briefing to 10 hoteliers in Cebu.

This will eventually lead to accreditation of Muslim-friendly restaurants and facilities.

Alice Queblatin, managing director, Southwind Travel & Tours (Cebu), told TTG Asia e-Daily that Qatar Airways is considering coming back to Cebu which used to serve from Doha five years ago. Should that happen, Cebu will get a further boost in arrivals from new markets in the Middle East and Europe.

Queblatin added that the forthcoming service from Los Angeles, operated by Philippine Airlines, will be targeted at mainstream Americans rather than Filipinos residing there. The Cebu travel trade will join a DoT roadshow to the US at the end of this month.

Mary Grace Paulino, tourism officer with the Cebu Provincial Government, said the province is getting an increasing number of arrivals, flights and investors.

In preparation for this, the province has started building a second terminal at the Mactan International Airport which will be operational in 2018.

Additional reporting from S Puvaneswary

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

Love for SE Asia grows as Aussie dollar slips

By Paige Lee Pei Qi

January 22, 2016

A WEAKER Australian dollar may work in the favour of South-east Asia as travellers from Down Under are now more likely to choose the region over longhaul destinations for their holidays, said Australian buyers at ATF.

Nick Page, managing director of Oasis Travel in Brisbane, said: “We have not seen any ill effects of the falling Aussie dollar, and this works well in our favour as the Asian destinations are relatively cheaper than Europe, the Americas and Africa.”

Tim Lim, general manager of Brisbane-based EC Travel, agreed: “There are a lot of cheap airfares and promotions in South-east Asia that will attract our travellers so the currency issue does not affect them much.”

With Australia comprising 20 per cent of his clientele, Henry Llames, operation manager of Borneo Rainforest Lodge, is optimistic that Borneo’s allure will remain strong.

“Borneo has always been cheaper for travel and they will probably think of us first if they want to find cheaper holidays,” he commented.

As Australian travellers shift their travel choices “closer to home”, Handy Events & Conferences Queensland director, Tony Handy, predicts a 10 per cent rise in demand for South-east Asia in the next two years, as it is “still good value” for Australians to visit countries like Malaysia, Thailand and Vietnam.

CEO & founding director of Victoria-based Adventure Travel, Anthony Hill, said: “Apart from the affordability, South-east Asia is also very attractive because of new attractions opening up in many countries.”

While Thailand remains his top-selling destination, Hill sees the biggest growth in travel bookings to Myanmar as the country is still a novel destination for many Australians.

Vivian Lucero, senior sales manager of Henann Resort in Bohol, the Philippines, said Australia, which is among the property’s top five visitor source markets, has shown a steady year-on-year growth of about 10 per cent and the momentum is likely to continue.

An Australian-based global tours and activities provider, who declined to be named, predicts that in addition to South-east Asia, travel interest will be observed for domestic destinations in Australia and nearby countries like New Zealand and Fiji.

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

European tourists changing travel habits

By Dannon Har

January 22, 2016

CRACKS showing up in the European economy have started to impact longhaul travel into South-east Asia, ATF 2016 delegates told TTG Asia e-Daily.

Although most have not yet seen worrisome dips in demand and forward bookings, trade players have observed changes in the way Europeans are booking their trips and choosing travel products.

European travellers, once loved by suppliers for their tendency to book months in advance, are increasingly confirming their trips much later in hopes of scoring attractive last-minute discounts.

A top level hotelier with an international chain added that the rising number of late bookings was also a result of “too many hotel options” available in Asia, allowing the increasingly budget conscious Europeans to “shop around” for best rates.

Yves Van Kerrebroeck, deputy managing director with Asian Trails in Bangkok, said: “(The climate in Europe) is not very encouraging at the moment, economically and politically, for people to feel secure about spending on longhaul travel.

“It is very difficult to predict (how bookings will fare nowadays) because (Europeans) are more geared towards short-notice bookings even for markets where you traditionally get very long lead times.”

Pande Sutawan, corporate general manager, The Royal Pita Maha in Bali, has also noticed shorter booking lead times of up to 30 days, compared to a minimum of two months in better times.

Although Merlyn Ebora, inbound manager with Cebu-based Destination Specialists, expects good European arrivals in 2016 due to new air links commencing this year, she said uncertainties in the European economy could result in travellers becoming more thrifty.

As a result, her company is working with local suppliers such as accommodation and transport providers as well as restaurants to offer competitive packages which are about 10 to 15 per cent cheaper than what was offered last year.

“The stay period remains the same but Europeans are now finding ways to get more value-for-money options,” remarked Pande. Citing examples, he said European travellers are turning to LCCs and Middle Eastern airlines which are more affordable than South-east Asian carriers.

Describing the European market as being more price sensitive now, Ray Clark, general manager of The Royal Collection, Bali, said they are shopping around for cheaper flights and even best rates for business class seats.

“Whereas my guests used to just book without much concern about rates, they are now asking for discounts or value added perks. Travel consultants are doing the same,” said Clark, adding that the market was down by 15 to 18 per cent in 2015.

European incentive clients are spending more carefully too, noted I Made Budiutama, assistant sales manager, Ayodya Resort Bali. “A particular incentive organiser has asked us to create a package of activities for five days. I suspect he will ask the same from DMCs and then do a price comparison,” he said.

To continue drawing the Europeans, Asian Trails has gotten creative with its programming.

Kerrebroeck said: “We can offer amazing experiences that don’t necessarily cost a lot, by upgrading programmes and adding a lot of value for very little extra cost.

“We have a product range called Explore, where we offer something off the beaten track. It is adventurous but nothing too extreme, yet different enough that people can perceive it as something new at the same price point as a standard programme.”

Additional reporting from Mimi Hudoyo and S Puvaneswary

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

ASEANTA to develop Visit ASEAN@50 offers

By Rosa Ocampo

January 21, 2016

ASEAN NTOs have asked ASEANTA to take on the responsibility of creating special offers and value added tours and packages for the Visit ASEAN@50 promotions in 2017.

The region’s tourism boards believe that ASEANTA members, who are travel agencies, tour operators, hotels and airlines, can bring their expertise into this area and market the region as a single destination.

ASEANTA president Aileen Clemente said the planned tour packages should promote South-east Asia as a single destination, not the individual member countries.

She said that six airlines had turned up for ASEANTA’s meeting this week in a show of full support for Visit ASEAN@50, unlike before when there were only one or two in attendance.

Cebu Pacific has for the first time attended ASEANTA’s quarterly meeting although it is not yet a member. Member airlines who attended were Singapore Airlines, Thai Airways, Philippine Airlines and AirAsia.

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

Alliance formed among four LCCs

By TTG Asia

January 21, 2016

CHINA’S HNA Group has formed an airline alliance with Lucky Air, Urumqi Air, West Air and HK Express as its founding members.

Headquartered in Hong Kong, the U-FLY Alliance aims to offer passengers access to over 85 destinations with 168 city-pair options in the Asia-Pacific region.

HK Express will serve China, South Korea, Thailand, Vietnam, Japan, Cambodia, Myanmar, and Taiwan from its Hong Kong Chek Lap Kok hub while Lucky Air will primarily oversee mainland China with additional flights to Japan, Thailand, Vietnam, South Korea, Taiwan, Cambodia and Myanmar from bases in Kunming Changshui, Lijiang, and Chengdu.

Urumqi Air will be in charge of destinations throughout Xinjiang province in China from its Urumqi hub, and West Air will mainly cover China with regional flights to Singapore.

“Network alignment is underway to facilitate interline connections between many exciting city pairs across Asia,” said HNA in a statement.

“As each LCC’s network expands and becomes more interlinked, the number of travel opportunities will multiply giving a huge range of options to visit the places that our guests have always wanted to fly to.”

International arrivals reach new heights in 2015

By TTG Asia

January 21, 2016

INTERNATIONAL tourist arrivals jumped 4.4 per cent last year and brought the total to more than 1.1 billion, making 2015 the sixth consecutive year of above-average growth, according to the latest UNWTO World Tourism Barometer report.

By region, Europe, the Americas, Asia and the Pacific recorded around five per cent growth in 2015.

Europe, supported mainly by a weaker euro, saw arrivals reaching 609 million. Central and eastern Europe grew 6 per cent from 2014’s decrease in arrivals while northern Europe, southern Mediterranean Europe and western Europe recorded six, five and four per cent growth respectively.

Asia and the Pacific recorded 13 million more international tourist arrivals, touching 277 million, with Oceania and South-east Asia leading growth at seven and five per cent each, while south Asia and north-east Asia recorded a growth of four per cent.

Meanwhile, international tourist arrivals reached 191 million in the Caribbean and central America which recorded seven per cent growth, while south and north America both grew by 4 per cent, close to average.

Arrivals to the Middle East increased by 3 per cent, totalling 54 million, while Africa, although with limited available data, recorded a decrease of about 3 per cent to 53 million arrivals.

Overall, advanced economy destinations grew five per cent, exceeding the growth of emerging economies that is marked at four per cent, boosted by solid results from Europe.

“2015 results were influenced by exchange rates, oil prices and natural and manmade crises in many parts of the world,” said Taleb Rifai, secretary-general, UNWTO.

“As the current environment highlights in a particular manner the issues of safety and security, we should recall that tourism development greatly depends upon our collective capacity to promote safe, secure and seamless travel.”

Travel to Indonesia kept calm and carried on

By Mimi Hudoyo

January 21, 2016

THE recent attacks in Jakarta appears to have marginal impact on travel sentiments to Indonesia, if going by the muted reaction of international buyers at ATF 2016 to the tragic event.

S Rajan, president & CEO of US-based Air Safety Equipment, sees no impact on his company’s business travel to Jakarta. “We are organising a Boeing aircraft equipment product launch in Jakarta in September 2016 and there have not been any concern from participants regarding their safety and well-being in the destination.”

Likewise, Muhamad Zaki, president of RZ Travels US, has not received any cancellations. “Terrorism does not stop people from travelling,” he said. “Our clients still travel as we all realise that there are risks everywhere you go.”

Iris Bloedorn-Millotou of Sunhotels Group and Incentive Travel Spain concurred: “I think nowadays people realise (terrorism) could happen anywhere. People do not want to be intimidated.

Even though tourism matters less to Jakarta, other destinations in Indonesia have not been much affected too.

“We are not doing much of Jakarta but even bookings for Bali are still the same with no drop,” noted Bloedorn-Millotou. Daily updates from her Indonesian tour operator partners were “a relief” and kept her abreast of the ground situation in Jakarta.

Eric Sinnaya, managing director of Morahols Travel Malaysia said the Jakarta attacks had not caused a slowdown to holiday destinations in Indonesia such as Medan and Bukit Lawang, in North Sumatera, which is also the gateway to Leuser National Park.

Tim Lim, general manager of Australia-based EC Travel: “Our clients usually go to Bali and not Jakarta but they will definitely still be more cautious. I will emphasise the importance of getting insurance to protect them.”

Jonathan Tran, executive director of Lac Hong Voyages in Vietnam, has not received any cancellations for Bali and still have several groups of 20 to 30 pax visiting the destination during the coming Lunar New Year period.

“There is definitely worry from our travallers, even though they are going to Bali because it is the same country (as Jakarta),” he commented. “As travel agents, what we are doing now is to assure them of the safety and security in Bali so they are less worried about the situation.”

However, the January bombing has caused anxiety for a group of 12 from the US which had cancelled the Jakarta portion from their culinary and leisure tour originally planned for Jakarta, Bali and Komodo Island.

“As a result, the itinerary has been reduced from two weeks to 10 days,” said Cheryl Yamashita, vice president of Washington-based Ampac Tours.

Reza Novaldy, director of Tama Tour Indonesia, has received concerns from a 1,500 pax incentive group from the US intending to visit Jakarta, Yogyakarta, Bandung and

Bali in the coming months. He said: “We will have to tell them what the ground situation is because they are feeling very uncertain.”

There could be broader implications on long-term travel demand for the region, as Jay Serrano, general manager of US-based JJB Travel, foresees a 20 per cent decline in travel demand to Indonesia and South-east Asia.

Malaysia’s IMR Group director, BP Tan, said: “There used to be more concern about the crime and accident rate when we conduct a risk assessment about a country, but now we have to also take into consideration terrorism.”

Additional reporting from S Puvaneswary and Paige Lee Pei Qi

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

Single ASEAN visa more benefits than risks: PATA CEO

By Rosa Ocampo

January 21, 2016

RECENT security tensions are not helping the discussion in moving forward the ASEAN single visa scheme, but PATA CEO Mario Hardy maintains his support for it, saying the economic and social benefits of such a move far outweigh the security risk.

PATA, together with WTTC, UNWTO and five other international bodies, are of one mind in wanting the world to be visa-free, for everyone to be able to travel with ease.

Saying that the absence of an ASEAN common visa is “one of the greatest barriers to tourism”, Hardy remarked that the region’s tourism would have grown much more should tourists from outside of South-east Asia be allowed to travel here on a single visa similar to Schengen.

European travellers, for instance, want to explore multiple destinations here – not just a single country – but the complexity of multiple visa requirements is a deterrent.

A single visa scheme does not mean no visa at all, Hardy pointed out, because technology can be harnessed for an e-visa facility which is “alright to implement” and will not make it difficult for people to travel.

Hardy acknowledges that it is not the tourism office that makes the decision but the immigration and other government offices.

And as the influence of the tourism sector rises, “what we’re hoping to do is to offer and provide tools and enough information to tourism ministers so they can share that and put pressure on their governments” to accede to the single visa scheme.

He believes the ASEAN single visa scheme will happen but is unsure when. In the meantime, bilateral agreements on a single visa scheme between countries can provide temporary relief.

The usual dilemma against the single visa scheme is security concerns and immigration laws, the question of who will control and who to trust.

But Hardy reiterates that the benefits of having a simplified visa facility are huge. For example, Vietnam saw its arrivals improve when visa restrictions were eased.

He also expressed admiration for Indonesia which had unilaterally opened its doors to more foreign nationals.

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

There’s no stopping the Chinese traveller

By Paige Lee Pei Qi

January 21, 2016

CHINA’S stock markets may have crashed dramatically twice in the first week of 2016 and its economy showing continued signs of weakness, but Chinese nationals are proving to be a resilient lot when it comes to travel consumption.

Wang Suqi, president of Total Travel International Travel Service in Beijing, said that the weakened Chinese yuan was hardly an issue.

“I do not see any impact on travel because the Chinese are very rich. They will continue to travel and spend money,” Wang said.

Tony Li, managing director of Beijing-based Deluxe MICE Tour and Luxury Travel, shares the same observation: “There are many first-time travellers in China and they are all eager to see the world. Their concern isn’t about the cost because they can afford it, rather they are worried about the safety and security of the destination.”

As a result, Singapore is a popular choice among Li’s travellers. According to him, at least 50 per cent of his travellers favour South-east Asian destinations like Singapore, Thailand and the Philippines.

“One of the good things about these countries is the climate. The Chinese like to travel to warm countries especially during winter,” he said.

Ding Hai Yang, general manager of Suzhou CITS, has also noticed Chinese travellers’ preference for Asia.

“Asia is considered safe and comfortable for the Chinese and its close proximity is attractive too,” Ding reasoned.

“Chinese outbound (volume) has been growing so much and I foresee it will continue to rise even more,” he said, brushing off any threats to travel demand posed by the depreciating Chinese yuan.

Maintaining the continued thirst for travel among the Chinese is a plethora of travel deals targeting the market, said Xu Jili, general manager of strategy development department of MICE projects with Silvermoon Advertising Beijing.

“In fact, if the Chinese were to travel within (China), it might be more expensive than going to a country in South-east Asia,” Xu said.

According to both Wang and Xu, the liberalisation of tourist visas for the Chinese in recent years has been a huge contributing factor to the growing outbound volume as Chinese travellers value convenience.

Sellers interviewed at ATF 2016 have also reported resilience in Chinese bookings and spend.

Hannah Paula Yulo, director of sales & marketing at Paradise Garden Resort Hotel & Convention Center in Boracay, Philippines, told TTG Asia e-Daily: “Our 292-room property is fully booked for the Chinese New Year holiday period, mostly by Chinese tourists. Still, we have inbound agents handling the Chinese market requesting for more rooms.

“The market is still healthy. We have forward bookings right up to September and we have not seen a drop in Chinese tourist spend.”

Mint Leong, managing director of Sunflower Holidays, whose company specialises in the Chinese inbound market to Malaysia, has seen a 30 per cent year-on-year increase in Chinese arrivals from 2014 to 2015.

She intends to intensify her marketing and promotional efforts to secondary Chinese destinations that have new air links deeper into Malaysia such as Langkawi and Kota Kinabalu.

New services soon to be introduced include AirAsia’s daily Kota Kinabalu-Wuhan flights from January 22 and Langkawi-Guangzhou two days after.

She said: “The Chinese economy may have slowed down, but the disposable income of middle and upper class travellers have not been impacted.”

Additional reporting from S Puvaneswary

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

New SIA direct flights to Canberra, Wellington a game changer for MICE in Aussie capital

By TTG Asia

January 21, 2016

SINGAPORE Airlines upcoming scheduled flights linking Canberra with Singapore and Wellington is expected to help build the local visitor economy and attract more business and leisure travellers, conferences and meetings to the capital region.

Canberra Convention Bureau CEO, Michael Matthews, said: “A number of high calibre conferences organised from Australia that have regional and international members have previously indicated that direct flights from Asia and New Zealand are a must for them to consider Canberra.”

“Direct air access changes the state of play for meeting in Canberra and opens the door for many conferences and incentive groups that previously found the added connections and associated costs in time and money prohibitive.”

Matthews also added that the new flights to Canberra would be a platform to “foster new relationships between Canberra’s innovation and knowledge industries, and the international meetings sector”.

Andrew Hiebl, CEO of Association of Australian Convention Bureaux, also agrees that direct international flights will boost delegate attendance from the fast-growing Asia region for business events already locked in to Canberra’s calendar.

“Australia’s convention bureaux are significant to the growth and competitiveness of the business events sector through their marketing campaigns and bidding strategies – and therefore the achievement of Tourism 2020. This new service by Singapore Airlines provides Canberra Convention Bureau with more ammunition to win international bids,” Hiebl added.