Mobile terminals to cut waiting times at Japan’s airports

September 16, 2015

Kansai International Airport. Credit: 123rf

JAPAN’s Justice Ministry is looking into equipping immigration officers with a “biocart” that will enable them to process visitors waiting in line to present their passports.

The mobile terminal seeks to help airport authorities shorten processing times by taking facial photographs and fingerprints of those waiting in line, then transmitting the data to the officer at the counter so that it is immediately available to them.

Currently, passengers get identified by immigration officers only when they reach the counter.

According to Kenji Tamai from the FIT sales section of JTB Global Marketing & Travel, the requirement to provide fingerprints was introduced by the Japanese government after the 9-11 attacks in the US.

“Lots of our customers have complained in the past that it has taken them one or even two hours to complete immigration procedures, so we feel this is a very good initiative,” he said.

According to the Justice Ministry, the mobile terminals will be provided at all airports that operate international flights. Funding for the initiative will be requested at Japan’s fiscal 2016 budget.

On average, the longest waiting time for immigration procedures was 36 minutes at Kansai International Airport. At Tokyo’s Haneda International Airport, the maximum wait stands at 24 minutes, while Narita International Airport keeps waiting times at 20 minutes, according to the Justice Ministry.

Travellers return to the Philippines as China ‘quietly lifts’ advisory

By Rosa Ocampo

September 16, 2015

Ninoy Aquino International Airport. Credit: 123rf

CHINESE group tours and chartered flights are making a comeback to the Philippines after China ‘quietly lifted’ the travel advisory against the South-east Asian nation in May.

TTG Asia e-Daily learned that while China made no official announcement, it finally allowed the Philippine embassy to issue group visas to Chinese travellers eight months after it had issued the travel advisory in September 2014 over safety concerns.

Ramon De Veyra Jr, officer in charge, North Asia division, International Promotions Department of the Tourism Promotions Board (TPB), noted that from five chartered flights from China in April, there are now 20 chartered flights in operation and the number is still increasing.

From various points in China, these charters bring group tours to destinations including Kalibo, Legazpi City in Bicol and Laoag in Ilocos Norte.

De Veyra said that the TPB now hosts two to three fam trips monthly for the Chinese media and travel trade. TPB also plans to tap the luxury market, with consumer outreach plans already in the works.

With the travel advisory lifted, Cesar Cruz, president, Philippine Tour Operators Association, said that the Philippines “can now market and promote openly” in China.

He commented: “Chinese tourists can really compensate for the decreasing arrivals from certain countries including Russia and South Korea, the country’s biggest source markets, which for the first time posted decreases last year.

“They are a boost to Boracay, their main destination, and Cebu and hopefully, Manila,” he said, adding that the return of the Chinese tourists is likely to be felt more during the high season between December and February.

GHM victor, awarded damages in The Chedi Chiang Mai scuffle

By TTG Asia

September 16, 2015

FOLLOWING proceedings lasting 20 months, the ICC International Court of Arbitration has ruled in favor of General Hotel Management (GHM) over their unjustified ousting as operators over The Chedi Chiang Mai.

Owning company of the hotel, Pacific Hotel Chiang Mai, had on November 4, 2013, attempted to terminate GHM’s management of the property and bring in a new operator, Minor Hotel Group (MHG), rebranding the hotel as Anantara Chiang Mai Resort & Spa in the process.

GHM argues that the takeover was wrongful and in violation of key contractual terms. Through the course of the court proceedings, GHM substantiated its rightful standing as operators of The Chedi Chiang Mai by stating how they have obliged to the initial agreement and performed well as managers by obtaining awards such as being first on Asia’s Best Resort list by Condé Nast Traveler in its Readers’ Choice Awards for 2013.

The resolution saw GHM awarded substantial damages as Pacific Hotel Chiang Mai’s allegations against them were found to be without merit. Due to confidentiality clauses, the amount of damages cannot be disclosed.

“With respect to The Chedi Chiang Mai, the favourable ruling by the tribunal clearly vindicates GHM and affirms our commitment to delivering excellent results with a team that demonstrates the highest level of integrity and management,” said Hans R. Jenni, president of GHM, in a statement.

GHM is no longer the operator of The Chedi Chiang Mai and MHG now operates the rebranded Anantara Chiang Mai Resort & Spa.

Cash injection to boost medical tourism, attractions in Malaysia

By S Puvaneswary

September 16, 2015

THE Malaysian government has unveiled several measures to boost arrivals into the country and to maintain the economic growth momentum in the wake of a global slowdown.

Prime minister Najib Abdul Razak announced on September 14 that an additional RM80 million (US$18.6 million) will be set aside to launch medical tourism campaigns in selected markets, such as China and India.

Malaysian authorities earlier announced that group tours from China are exempted from having to obtain a visa between October 1, 2015 and May 31, 2016.

These announcements come in the wake of an earlier move made this year to cut Tourism Malaysia’s advertising and promotional budget by 25 per cent, or RM50 million.

The government has also committed to the development of two key projects amounting to RM5.6 billion to further enhance the National Museum, National Monument, Perdana Lake Gardens and to improve ground links to KL Sentral.

Ally Bhoonee, executive director at World Avenues, said: “This is a very good time to promote medical tourism especially with the devaluation of the ringgit. We have world-class medical facilities but awareness is still lacking.”

Meanwhile, Mint Leong, managing director of Sunflower Holidays, added that the government should not impose a duration limit for the Chinese group visa exemptions and that it should cover FITs as well.

“The high-end Chinese tourists don’t take group tours. We should also make it easier for them by removing visa requirements,” she said.

Lean in and step forward, ladies

By Xinyi Liang-Pholsena

September 16, 2015

I firmly believe that success is not defined by gender but by the concerted effort we make to be the best that we can be. And having more women leaders to look up to in the travel sector does not hurt one bit.

A recent lunch with the female chief of an established DMC left me inspired and buzzing with excitement long after the meal has concluded.

Motherhood was one big challenge, admitted my lunch companion, a successful career woman who had to overcome obstacles along the way to reach the top of the travel agency industry. But backed by strong work ethics, tenacity and a supportive partner willing to tag-team in parenting duties, she surmounted the initial difficult years during her kids’ younger days to nurture a family, manage a career and get to where she is today.

Her honesty and encouragement meant a lot to me, a new first-time mother who is now trying to juggle the rigours of work with the demands of a new baby. However, seeing how other women have successfully navigated the delicate work-family balance gave me more confidence, helping me to abolish any self-doubt that holds me back from leading a full life that includes a rewarding career and a happy family.

Of course that lunch was not just about mothering and kids – that would have been such a bore, honestly! The group of us, two men including, also got into a passionate discussion on the growing prominence of women in Asia’s travel sector, whether it’s females taking on leadership roles such as hotel GMs or ladies venturing into predominantly-male worlds like tech startups

It is hence with delight that I read about another high-flying female in Asian hospitality, Rainy Chan, regional VP and GM of The Peninsula Hong Kong (see View From The Top, page 10), who scaled the odds and smashed the glass ceiling in a male- and western-dominated industry. (Coincidentally, the Bangkok hotel where we enjoyed our lunch was headed by a female GM, an affable lady who dropped in and checked if we were happy with our meal.)

In Lean In: Women, Work and the Will to Lead, Facebook COO Sheryl Sandberg challenged women to “lean in” rather than “pull back” in the face of obstacles in their careers. While she may appear superhuman to many and some may question if Sandberg, in her privileged and highly compensated position, is the best person to offer workplace advice to women, for me the takeaway from her Lean In campaign is about putting our hearts, bodies and minds to achieve something we really want.

At the end of the day, I firmly believe that success is not defined by gender but by the concerted effort we make to be the best that we can be. And having more women leaders as role models in the travel sector does not hurt one bit, especially for the legions of young women – and men – who are just starting their careers in the industry.

This article was first published in TTG Asia, September 18, 2015 issue, on page 2. To read more, please view our digital edition or click here to subscribe

Sense of a woman

By Raini Hamdi

September 16, 2015

Four of the 10 Peninsula hotels in operation today are run by a female general manager. Is this a deliberate effort?
We don’t deliberately look at gender. It’s about the right timing. We look for talent through headhunters and people we know. Unfortunately there aren’t a lot of female GM CVs out there – many don’t make it to that level.

Still today – why?
Women are still expected to get married and take care of the kids. But in this industry, we have to travel and work long hours. If you tell your husband I’m moving every two years, he’s going to look at you and say, ‘Huh? Excuse me?’ Hence, many women don’t make it to the top, not because they are not capable or wanted, but because they have to make choices. Women just have it tougher in having to make a choice in certain stages of their career.

Your advice to young people, when it comes to making choices?
Don’t overthink it. Women think too much. When I talk to students, they say, ‘I don’t want to be in hotels because I won’t have a life.’ How do you know? How do you know what kind of life you want to have? You start, then see what comes.

In general, women will intuitively know how to make a decision. If you are lucky enough to find a job you love, nothing should matter, until something else matters a lot more, and then you will intuitively make the choice.

What choices did you have to make?
I was working in the hotel industry and had moved to the US when the Peninsula Hong Kong, which was looking for a front office manager, called me. I could not believe it. I asked did they know I’m a woman? In 60 years, they’ve never hired a female FOM. Did they know I’m Chinese? They said yes they know (laughs).

I was engaged. But as a Hong Kong Chinese girl looking at the Peninsula, there was no way I would say no. So I asked my ex-fiancee, ‘Can I just go for one year?’ He said, ‘I guess the best way to keep you is to let you go.’ Except of course he had let me go forever. It’s meant to be. If we were meant to be together he would have moved to Hong Kong with me. I’m Chinese and I believe in serendipity. When it’s meant to be yours, it will come.

Did you imagine you’d be heading The Peninsula Hong Kong one day?
Never! I was lucky to be discovered by my mentor, our COO, Peter Borer. He was a pioneer in thinking, ‘Enough of this expat business, I want to hire a local, but someone with enough international perspective and training, who can balance the new and the old, the west and the east.’

Then there was this unconditional giving – the opportunity to learn, to improve myself but, importantly, he knew that the key area where I needed the most support was confidence. I did not go to college or hotel school; I learnt everything at work. He let me do it, he believes if you do something with the intention of benefiting the hotel or the company, you will always make the right decision and even if it’s wrong it can’t be that bad because your intention is good.

What mistakes do you see young people make in their career?
They give up too quickly. They think they’re bored, they think they have learnt everything. But they have not; no, in the service industry you can’t possibly graduate from learning how to care for, or manage people, too quickly.

I think they just don’t want to face the challenge. They give themselves new challenges without overcoming the old ones, not realising that eventually the old challenges will come back, no matter what company or field they are in. That kind of attitude will prohibit them from building a solid portfolio for themselves.

I’ve a solid portfolio. I’ve managed people in different countries and gone through earth-shattering events – 9/11 in New York, tsunami in Bangkok and SARS in Hong Kong – as a senior executive of this company. Sticking with the same company, you grasp its DNA – that’s why the company trusts me to run its flagship hotel. What’s wrong today is if you stick around for so long, people say what’s wrong with you!

Loyalty goes a long way. In my tenure with the company, I’ve established so many friendships and these form my rock. In hard times, I reach out for them; we open hotels together, go through crises such as 9/11 together. These relationships would never happen if I didn’t stay put.

But what made you stay?
It’s a unique hotel company, and quite wonderful. There are other wonderful hotel companies but because their model is management contracts, they are not in a position to keep all of their hotels consistent in quality and reinvestment. Most of our hotels, on the other hand, are undergoing some kind of upgrade – no other hotel company can say that. The Peninsula Chicago, for instance, is renovating its rooms and suites, which are in great condition still. We don’t wait to renovate. It is all about consistency: the renovation in Chicago and Beijing will put the hotels in line with those in Hong Kong and Paris, which now field the best technology.

The fact we own our hotels gives us that freedom to reinvest to ensure our quality is maintained. Also, it enables us to keep the hospitality tradition. It’s different when you are just managing; you have different owners, some are short-term thinking, others a bit more long term. That model still works, but I look for a company like Peninsula, where I know I am working for the chairman and that I would not have a hotel that I’m managing today having a different name tomorrow!

There’s a strong sense young people aren’t loyal. What’s an industry to do?
I run a hotel with people of four generations. When I started as a GM, I knew I had to build a hotel for the son of Sir Michael (Kadoorie), not for Sir Michael, so that when he takes over, the hotel will have people who have served for 40 years.

So how do I do that? First, we have to change our expectations. Long service today is five to 10 years, not 25 years. We launched a five-day work week two years ago so we can compete with other industries. We find out what young people want, just as we learn what our guest needs are, and we create the environment for them.

I also meet all long-service staff who are leaving – I give them my phone number. Many call when they want to come home.

This article was first published in TTG Asia, September 18, 2015 issue, on page 10. To read more, please view our digital edition or click here to subscribe.

Riding out the yuan storm

By S Puvaneswary

September 16, 2015

China’s sudden currency devaluation has rattled stock and financial markets worldwide, but the Asian travel sector appears to weather the economic turbulence well – at least for the time being.

When China sneezes, the world catches a cold. And when China’s series of surprise yuan devaluations comes on top of a steep slowdown in the world’s second-largest economy, destinations from South Korea to Singapore are bracing for the potential fallout as China has become an important source of growth in recent years.

A weaker yuan has caused ripples in the Maldives, a popular destination for Chinese travellers and where China represents the largest inbound market. An immediate impact was felt in July when arrivals from China dropped four per cent to 41,527, which the trade attributes to the yuan devaluation and stock market crash.

Yoosuf Riffath, CEO of Capital Travel, believes the depreciation could result in a possible drop in arrivals in August too. “We hope the situation will ease in the next few months,” he said.

However, Hussain Lirar, Maldives deputy minister of tourism, is optimistic that a recovery from the Chinese market will be seen in the coming months. “(There’s) no cause for alarm,” he opined.

Among the most vulnerable are attractions like Ocean Park Hong Kong, which is highly dependent on the mainland China market. Said executive director of sales and marketing, Vivian Lee: “The renminbi’s slight depreciation may dampen travel sentiment for (Chinese) consumers and could modestly reduce the spending power of mainland visitors.”

The Chinese are still coming
Despite the market reaction, the potential currency effects are mixed for the travel industry. The regional trade played down the immediate impacts of the renminbi woes on tourism, although there are concerns about the after-effects in the months ahead.

Ng Hi-on, director of CTS International Science-Technology & Culture Exchange in Hong Kong, said: “The two per cent depreciation poses no significant effect unless it devaluates by double digits. In fact, we (consultants) and hotels settle bill in Hong Kong dollars so there is no negative impact to us so far.”

The Langham Hong Kong, director of sales and marketing, David Fung, said: “We have not noticed any direct booking impact on our business. It’s too early to say what will happen.”

The Tourism Authority of Thailand (TAT) believes the reminbi devaluation will have an “insignificant impact” on Chinese tourist arrivals to Thailand, according to an official TTG Asia spoke to.

Thailand has seen good growth from China to date, with Chinese arrivals surging 112 per cent year-on-year to reach 4.7 million from January to July 2015, based on preliminary figures from TAT.

Chinese visitors are also spending more as TAT reported tourism revenue of 229 billion baht (US$6.3 billion) so far, a growth of 139 per cent from the same period in 2014.

The devalued yuan has “not yet affected outbound travel (from China)”, said Patrick Bassett, COO for Accor, who added that the company is expecting “double-digit growth” in the Chinese market to Thailand for the next decade.

Likewise, South Korea and Japan will retain their appeal for the increasingly salaried Chinese. Chinese make up 50 per cent of the customers at Accor’s ibis properties in Seoul, where shopping and cheap plastic surgery are top attractions, while Japan has become even more accessible following a 40 per cent depreciation of the yen, Bassett added.

“At the moment, we are not too worried,” JTB Corp spokesman Motohisa Tachikawa told TTG Asia, adding that some 2.8 million Chinese visited Japan in the January-to-July period, up from 1.3 million in the same period last year.

“That increase has been very large and very fast, so even if numbers do fall back, that is still a large number of Chinese coming to Japan,” he said. “Even if the numbers fall back later in the year, we expect to see stable growth in the number of inbound travellers from China over the longer-term future.”

For the coming months, travellers who have already booked their holidays are unlikely to cancel now, but the real test of Chinese consumers’ sentiment might come at Chinese New Year when more Chinese may opt to stay at home rather than travel overseas, Tachikawa remarked.

Maho Ito, a spokeswoman for All Nippon Airways, agreed: “At this point, we do not see any effect on our business. Chinese consumers are still very keen to come to Japan and they enjoy shopping here; we expect that to continue.”

Alicia Seah, director of marketing communications at Dynasty Travel Singapore, added: “If the lower yuan exchange rate continues in the next two to three months, it will result in travel (consultants) having to make adjustments to their rates to remain competitive and attractive to the China markets.”

More bang for yuan for some
Buyers from China at the recent PATA Travel Mart 2015 in Bengaluru said their customers are still booking travel packages in earnest despite the weak yuan.

Shanghai-based outbound specialist, Alex Zhang, regional manager for Thailand and South Asia department at Spring Tour, said: “My company has seen a year-on-year increase in bookings to popular destinations such as Thailand, India and Sri Lanka. These destinations are inexpensive for the Chinese.”

Also observing an uptick in Chinese demand for Sri Lanka is Romeo Luo, FIT specialist with Spring Airlines Chongqing business office & Chongqing International Travel Service.

“The demand is up especially from honeymooners who are drawn to beach resorts (which Sri Lanka has aplenty),” Luo said.

And thanks to the yuan’s relative strength against the ringgit, which has slumped significantly against the US dollar by nearly 30 per cent at press time, Chinese inbound growth still look robust for Malaysia for the time being.

Kem Siew, vice president sales & marketing, Swiss-Garden International Hotels, Resorts & Inns, said: “The drop in yuan is insignificant compared with the drop in ringgit over the last year. The Chinese still enjoy better value in Malaysia.”

According to Mint Leong, managing director of Sunflower Holidays and secretary-general of the Malaysian Inbound Tourism Association, ground arrangement costs have reduced by six to 10 per cent from a year ago due to currency conversions for the Chinese inbound market.

“With the lower ringgit, we’ve seen a definite increase in shopping especially for branded clothes, watches and bags. While imported goods may cost more because of the devalued ringgit, it is still a good buy as many items are duty-free in Malaysia.”

From October 1, the Malaysian government will grant temporary social pass of 15 days for group sizes of at least 20 people from China travelling with tour operators registered with the Ministry of Tourism and Culture.

“However, this move is too late to capitalise on the Chinese Golden Week Holiday (starting on October 1),” said Leong.

A boost in inbound travel?
Conversely, a weaker yuan has worked in favour for outbound tour operators like Dynasty Travel in Singapore, which saw a 20 per cent spike in enquiries and bookings to China for travel during the September-December 2015 period, said Seah.

“China is a very popular and economically priced destination, thus with (the) lower yuan, Singaporeans being a travel-savvy lot, will latch on especially quickly to currency fluctuations to save on shopping and dining,” she commented.

“If the low exchange rate continues, this will definitely push forward some bookings for 4Q2015 and the upward trend will continue to surge with greater demand from visitors to China.”

Ocean Park’s Vivian Lee concurred: “The weaker renminbi may increase China’s appeal as a travel destination, thereby benefiting Hong Kong as a stopover en-route to China.”

This article was first published in TTG Asia, September 18, 2015 issue, on page 4. To read more, please view our digital edition or click here to subscribe

Additional reporting from Paige Lee Pei Qi, Julian Ryall, Michael Mackey, Prudence Lui, Feizal Samath

Jean-Michel Gathy to design Four Seasons Hotel Bangkok

By TTG Asia

September 15, 2015

Credit: Four Season Hotels & Resorts

DESIGNER studio Denniston, led by award-winning architectural and interior designer Jean-Michel Gathy, will be partnering with Four Seasons Hotels and Resorts to design the interiors of the new Four Seasons Hotel Bangkok at Chao Phraya River.

Expected to open in 2018, the property will be a low-rise, urban resort hotel built upon the entire southern span of the Chao Phraya Estate, offering over 300 rooms and suites, restaurants and other facilities, while a separate residence will consist of more than 350 all-corner units in a 73-storey building.
While Denniston is assigned to work on the interiors and landscapes of the hotel, Bamo will be designing the interiors of the adjoining Four Seasons Private Residences Bangkok at Chao Phraya River.

Both consultants will work alongside the internally acclaimed masterplan and design consultants Hamiltons International.

Amsterdam Light Festival to shine on Thailand’s MICE sector

By TTG Asia

September 15, 2015

THAILAND Convention and Exhibition Bureau (TCEB) has signed a partnership agreement with Amsterdam Light Festival to bring artworks from the renowned light show to Bangkok later this year.

In a statement from TCEB, the festival, to be held in Bangkok’s Ratchaprasong area, is done in hopes to invigorate the Thai economy, restore faith in Thailand as a safe destination, as well as to draw more event organisers to the country.

Nopparat Mathaveekulchai, director of TCEB, said: “We are focused on pooling in events from our bidding targets and increasing arrivals of international visitors by hosting international events and mega events.

“By positioning Thailand as Asia’s premier destination for international events within our strategic direction to drive Thailand as the hub of mega events, we are paving way for more arrivals of quality visitors and event-goers,” he said.

The light festival is expected to entice over one million international MICE delegates and to generate an estimated turnover of 106.7 billion baht (US$2.9 billion).

Flights cancelled, tourists evacuated as Mount Aso erupts

By Julian Ryall

September 15, 2015

mount-aso
Credit: 123rf

TRAVEL companies featuring Japan’s Mount Aso on their itineraries are swiftly rethinking their plans after the volcano rumbled violently to life on Monday, September 14.

Tourists were on the mountain when the first major eruption occurred at 09.43, with volcanic debris being launched from the crater and a pall of ash rising several kilometres into the air above the caldera.

Authorities quickly evacuated the mountain of tourists and staff of local businesses there, which includes those from a museum, cable car service and a number of souvenir shops.

The eruption has affected flights to and from Kumamoto Airport, which is roughly 20 km to the west of the peak of Mount Aso. So far, 20 flights have been cancelled and others diverted to other airports in the region in order to avoid the ash plume.

The Japan Meteorological Agency has raised the alert level on the nation’s largest volcano to three on the five-point scale and issued warnings that the mountain should not be approached. There is danger of rocks ejected from the crater falling as far as two km from the peak, the agency said.

“In the coming week we were meant to have a group of 11 cyclists taking the road that crosses the mountain, but we will now take an alternative route,” Thomas Holvoet, founder of Japan Biking, told TTG Asia e-Daily.

Access restrictions were placed on some parts of the mountain a year ago, he added, after the first indications that an eruption might occur.

Llewelyn Thomas, managing director of Kyushu-based Walk Japan, said a group of hikers are scheduled to climb the mountain later this year.

“It is very possible that everything will have calmed down again by then, but we are contacting our clients to keep them informed of the situation and to let them know that we will be providing an alternative walk if the restrictions are still in place,” he said.