Singapore, Japan join hands to drive mutual growth

January 19, 2016

THE Japan National Tourism Organization (JNTO) and the Singapore Tourism Board (STB) freshly inked a Memorandum of Cooperation (MOC) yesterday to drive greater tourism traffic between the two countries.

This marks the first MOC between both organisations, which also commemorates the 50th anniversary of diplomatic relations between the two countries.

To kickstart the Singapore-Japan 50 (SJ50) partnership, a local food fair will be organised in both countries. A tourism logo has also been jointly developed, featuring characters Hello Kitty and Dori-tan, which symbolises friendship.

Ryoichi Matsuyama, JNTO president, said: “We hope to establish a deeper mutual cooperation and in the end, promote stronger tourism bonds and partnerships between both nations.”

Markus Tan, regional director, north asia, STB, said: “Previously, when the Japanese thought of Singapore, Sentosa always came to mind, (but now) Singapore is gaining traction as a destination that offers cultural experiences and local cuisine.”

According to Chan Brothers Travel Singapore’s spokesperson, Rebecca Chia, the number of travellers headed for Japan last year showed a year-on-year increase of 30 per cent.

Similarly, Dynasty Travel Singapore’s spokesperson, Alicia Seah, said the company enjoyed a year-on-year increase of 25 per cent last year.

Both agencies agree that the favourable yen has helped stimulate travel to Japan.

Planning for ASEAN’s 50th birthday

By Xinyi Liang-Pholsena

January 19, 2016

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HAVING implemented the ASEAN Economic Community in December 2015, the regional bloc is now looking forward to commemorate yet another milestone – its 50th founding anniversary in 2017 – with plans being outlined for a major campaign to be launched next year.

Brunei, as the current chair of the ASEAN Tourism Marketing and Communication Working Group (MCWG), was tasked last year with drawing up a campaign proposal to mark the occasion.

During the 43rd meeting of the ASEAN NTOs at Sofitel Philippine Plaza Manila yesterday, Zulzalani Osman, special duties officer at Brunei Ministry of Primary Resources & Tourism, revealed that the campaign title is tentatively conceived as ASEAN@50 – one that is short and catchy.

One of the key objectives for the ASEAN@50 campaign identified at yesterday’s meeting is the 15 per cent increase in visitor arrivals and tourism receipts from 2014 to 2017, a more ambitious target than the original seven per cent.

The campaign, subject to ministerial endorsement at this year’s ATF, includes plans to pre-launch at the Thai pavilion during ITB in Berlin this March, in addition to being advertised and promoted at major tradeshows like China International Travel Mart in Shanghai before its official launch at ATF in Singapore next year.

An ad-hoc steering team comprising NTO representatives from each ASEAN member country will be set up by March this year to oversee the ASEAN@50 campaign, Zulzalani told TTG Asia e-Daily.

Campaign details, including its name, logo and budget, are expected to be firmed up by mid-2016, he added.

To commemorate the milestone, two product categories will be highlighted, namely ASEAN’s 50 most unforgettable travel experiences as well as ASEAN’s 50 best festivals and celebrations. Each ASEAN member country will spotlight five products to make up the group of 50, Zulzalani informed.

Various strategies have been outlined for the implementation of the campaign, including leveraging public-private partnerships, the preparation of official tour and travel packages as well as a list of highlighted products and calendar of major events and activities.

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

Cathay Pacific to lower agent’s commission

By Prudence Lui

January 19, 2016

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STARTING April 1, Cathay Pacific will cut ticketing commission from five to three percent. While the application is still pending approval, travel agents in Hong Kong have already been advised of the changes.

A spokesman from Cathay Pacific said: “Travel agents have long been and remain an important partner for airlines. We will continue to work closely with travel agents to explore new ways of generating business.

“We will continue to review the cost and effectiveness of each distribution channel to ensure the best way to reach out to customers, and one new business model is the introduction of a fee-based scheme.”

Dannia Cheung, general manager, Morning Star Travel Service, said: “As a national carrier, it sets an example for other carriers to follow. We can’t do anything (about it) but try to promote air tickets with hotels and tours rather than just selling tickets.”

Eastrip Travel’s managing director, George Ng, criticized the move as it would further undermine profit. He said: “Nearly half of all existing carriers, such as China Airlines, pay five percent. Cathay Pacific’s decision provides a good excuse for others to trim. I hope the industry will unite to exert pressure on them.”

According to IATA resolutions, airlines have the right to fix their own commission rates, as long as the rate is not zero, explained Joe Ng, general manager, Air Canada.

“Whenever a travel agent provides a service to the airlines, they should pay a fee to the agent. But there is no rule on the percentage, whether front-end or back-end,” he added.

ASEAN open skies impeded by limited landing slots

By Paige Lee Pei Qi

January 19, 2016

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THE ASEAN community’s dream of a single aviation market, which was expected to come true at the end of 2015, remains unfulfilled as not all signatures required to ratify the ASEAN Open Sky Policy are in.

Alan Tan, professor of aviation law at the National University of Singapore, told TTG Asia e-Daily in an interview: “Indonesia has not opened up its secondary cities, and the Philippines and Laos have not done so for their capitals. The industry as well as governments, through
the ASEAN Secretariat, should urge the remaining member states to complete the full ratification of the ASEAN instruments.”

Tan added: “Once these are fully open, we will have full and unlimited third, fourth and fifth freedom rights for ASEAN carriers to fly from points in their home countries to all points in the other countries.”
Two high-level industry personnel in the Philippines who spoke on the condition of anonymity, said the obstacle to obtaining Philippine support lies in protectionism sentiments.

One of the sources revealed that “Cebu Pacific is alright with (the) signing, but not Philippine Airlines which is protecting its turf”.

The Philippine flag carrier is also reluctant about opening up Ninoy Aquino International Airport in Manila on grounds that the facility’s runways and terminals are already congested and no more slots for flights are available, the two sources shared.

However, they pointed out that Indonesia, which has also run out of slots for foreign carriers at its airports, had gone ahead to ratify the agreement.

Commenting on the issue, Centre for Asia-Pacific Aviation’s chief analyst, Brendan Sobie, said further liberalisation would be meaningless if there were insufficient landing slots.

Sobie elaborated: “This is not a topic worth exploring at this point, given the limited or zero impact from the ASEAN Open Sky Policy on the South-east Asian market. Slot restrictions rather than traffic rights are the main impediment to further growth.

“The open skies policy means nothing unless you are able to secure a take-off or landing slot at both ends of the route.”

Sharing similar sentiments, Tan said: “This is something the respective governments must address through building new infrastructure. The ASEAN Open Sky Policy cannot resolve that problem.”

Additional reporting from Rosa Ocampo

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

ASEAN tourism heads consider next steps

By TTG Asia

January 19, 2016

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THE formal establishment of the ASEAN Economic Community (AEC) on December 31, 2015 marked a major milestone in the region, but several issues still need to be tackled for sustained growth for the 10 member states in the pursuit of a single market strategy in the decade ahead.

The ASEAN Tourism Strategic Plan (ATSP) 2016-2025 will be implemented as a continuation of the tourism road which started in 2011.

Assessing the performance of the ATSP 2011-2015, Benito C Bengzon, undersecretary for the Philippines’ Department of Tourism (DoT), who was chairing the meeting, revealed 79 out of 87 measures have been satisfied so far in the previous plan.

Outstanding measures that need further work under the new ATSP include working with global bodies such as UNESCO and Asian Development Bank for heritage tourism and community-based tourism respectively; the regional development of products for health and wellness tourism; monitoring and evaluating tourism activities related to climate change; developing a future work plan based on monitoring input; as well as developing and implementing a training tool box for travel agencies and tour operation.

Welcoming the progress achieved in the previous ATSP, Tint Thwin, director general of Myanmar’s Ministry of Hotels and Tourism, said: “It will take time to see results (of the ATSP 2011-2015) because different countries are at different stages of development in terms of service quality, capacity building and infrastructure development.

“I believe for ATSP 2016-2025, human resources development is the most important because tourism is a service industry. Training is important to ensure that all member countries are on the same level playing field.”

Eddy Krismeidi Soemawilaga, senior officer at ASEAN Secretariat, told TTG Asia e-Daily that detailed plans for every two years of ATSP 2016-2025 will be drawn up and discussed during the ministerial meetings on January 21 and 22.

Lawrence Leong, Singapore Tourism Board’s assistant chief executive, said: “With ATSP, we want to promote ASEAN as a single destination. ASEAN countries have been stepping up on their marketing over the last few years, and we see a lot more packages promoting ASEAN as a region. We aim for longer stays for these travellers, to have them spend at least six to seven days in the whole region.”

Meanwhile, I Gde Pitana, deputy minister for international tourism marketing development, Indonesia Ministry of Tourism, sees room for further quality improvement, especially in the competency of human resources.

Pitana also urged the trade to create multi-destination packages for travellers outside the region. “We can start with bilateral cooperation, like Thailand and Cambodia, or Indonesia, Singapore and Malaysia, and go on from there,” he said.

However, an ASEAN common visa remains a pipe dream. Said Tint Thwin: “To promote ASEAN as a single destination is to show the ASEAN spirit. The lack of a single visa is an obstacle.”

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

Carnival Corp welcomes Roger Chen as chairman

By TTG Asia

January 19, 2016

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CARNIVAL Corporation has appointed Roger Chen as its chairman in China. Based in Shanghai, China-born Chen will lead all government relations and port developments while also supporting the company’s joint ventures in China.

Roger Chen, Carnival Corporation’s chairman in China

As well, he will be responsible for representing all of Carnival’s brands in China to continue growing its presence and scale in the country.

Chen previously held several senior positions at MNCs including General Electric, Microsoft, Volvo Group and Alcatel. He was most recently the China president for Volvo Group.

Jumeirah Group welcomes new chief

By TTG Asia

January 19, 2016

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AFTER 18 years in Jumeirah Group, president and CEO Gerald Lawless will be transitioning into a new role at Jumeirah’s parent company Dubai Holding.

In his new capacity, Lawless will be responsible for tourism and hospitality, working from Dubai Holding’s corporate office.

As well, Stefan Leser has been appointed group chief executive of Jumeirah Group, effective from February 1, 2016.

Stefan Leser

Prior to this, he was with Swiss travel business Kuoni for 10 years, most recently as executive vice president of its outbound travel and inbound specialist businesses managing a team of 8,000 employees.

AirAsia’s new Guangzhou link fuels Malaysian interest in the Chinese MICE market

By S Puvaneswary

January 18, 2016

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SOME Malaysian MICE players are intensifying courtship of MICE operators in Guangzhou, encouraged by AirAsia’s new four weekly direct service between Langkawi and Guangzhou since January 24.

John Chan, business development director, Kris International Traveltours, said: “This new route had elevated the status of Langkawi as a premier destination for MICE alongside Penang and Kota Kinabalu.

“Chinese travellers have also become more culturally and environmentally conscious. Langkawi’s status as a UNESCO Geopark, coupled with its beautiful beaches and rainforests will appeal to them.”

Chan believes that the new low-cost air link comes at an opportune time, when the yuan is weak. Smaller Chinese companies will be able to find savings by flying with budget carriers.

He added: “We have (also) increased our promotional efforts in neighbouring cities in Southern China to take advantage of the new flights to get more MICE business to Langkawi.”

Another inbound MICE operator, Mint Leong, managing director of Sunflower Holidays, told TTGmice e-Weekly that she will introduce new incentive itineraries in Langkawi at the upcoming Incentive Travel & Conventions, Meetings China in Shanghai in April.

“With these direct flights, meeting planners and incentive houses can make Langkawi a mono destination, without having to twin it with Kuala Lumpur,” Leong opined.

“MICE hardware in Langkawi has expanded with the opening of Langkawi International Convention Centre last year while the upcoming The St. Regis Langkawi in April will provide more high-end inventory. There are also a number of new attractions that will appeal to the Chinese for post-show tours,” she added.

Christian Metzner, general manager at The Andaman Langkawi, said the resort will beef up its offerings of teambuilding activities this year.

Iskandar Zulkarnain, director of sales at the resort, revealed that the resort was eyeing the meetings and incentives market from China, especially during the resort’s low periods.

China is the largest foreign tourist market for Langkawi. Due to the direct flights, Langkawi Development Authority is planning to organise B2B promotions in Guangzhou and neighbouring cities in the 2Q2016 to attract more leisure and MICE business.

Frasers residence opens in Geneva

By TTG Asia

January 18, 2016

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SINGAPORE’s Frasers Hospitality has opened a new serviced residence, Fraser Suites Geneva, in Switzerland.

Sited within the shopping and business district of Rue Du Marche, the 67-unit property boasts fully-furnished contemporary serviced residences ranging from studio to one-bedroom units.

Amenities include complimentary high-speed Internet access, all-day gym, business facilities, as well as 24/7 reception and concierge services.

The opening brings Frasers Hospitality’s Europe portfolio to 4,300 units spread across 55 establishments in the region, including pipeline properties.

Second Radisson Red hotel in China confirmed

By TTG Asia

January 18, 2016

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Thorsten Kirsche (left), president of Asia-Pacific, Carlson Rezidor and Marco Li, chief executive, ROFO Real Estate Development.

CHINA will be expecting its second Radisson Red hotel with the opening of Radisson Red Guangzhou South Station in 1Q2018.

The 160-key new-build hotel will be sited across from Guangzhou South Railway Station, 40km away from Guangzhou International Airport.

Part of a mixed-used development which includes office space and a shopping mall, the new property features multi-functional design solutions, integrating separate places, such as the hotel’s lobby, restaurants, bars and meeting spaces, into one.

The hotel will also boast a sky lobby and infinity pool, as well as Red’s signature F&B outlets Ouibar and Ktchn, which serves locally-sourced ingredients alongside local coffee and beer.

The signing of Radisson Red Guangzhou South Station has brought Carlson Rezidor’s Asia Pacific pipeline to 91 hotels.

Singapore, Japan join hands to drive mutual growth

Planning for ASEAN’s 50th birthday

Cathay Pacific to lower agent’s commission

ASEAN open skies impeded by limited landing slots

ASEAN tourism heads consider next steps

Carnival Corp welcomes Roger Chen as chairman

Jumeirah Group welcomes new chief

AirAsia’s new Guangzhou link fuels Malaysian interest in the Chinese MICE market

Frasers residence opens in Geneva

Second Radisson Red hotel in China confirmed

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