Weaker currencies make SE Asia hot for longhaul travellers

September 9, 2015

Credit: 123rf

THE appeal of South-east Asia continues to hold strong in the hearts of longhaul travellers, said buyers at this year’s PATA Travel Mart, who added that the region is now more enticing due to new products and cheaper rates resulting from weaker Asian currencies.

For longhaul travellers from countries whose economies have yet to recover from the global financial crisis, Indonesia, Malaysia and Thailand are top favourites.

Jorge Barbosa Elias, director of United Tours Brazil, told TTG Asia e-Daily that the Brazilian real has devalued drastically against the US dollar in the past year, forcing Brazilians to look for cheaper alternatives to the US for their holidays.

The real had fallen an astounding 62.7 per cent against the greenback from a year ago and 14 per cent over the past six months.

Elias said: “Hotel rates in Bangkok and Bali are very good. They are at least 40 per cent cheaper than rates of similar class hotels in the US. In addition, Qatar Airways and Emirates are also offering attractive rates.

“Next year we have three incentive groups combining Bangkok and Bali. Each group will have around 20 people.”

He added that Thailand, Indonesia and Malaysia hold particular appeal to his clients as they are “very new destinations”.

He urged the NTOs of these destinations to do more marketing in Brazil, especially in promoting their value-for-money packages.

Ben Gosman, managing director of Amsterdam-based FreeStyle Incentives, has observed a 10 per cent year-on-year increase in leisure traffic to Indonesia and Thailand, while the growth in corporate incentives to the two destinations is just under 10 per cent.

Gosman said both Thailand and Indonesia are seen as value-for-money destinations and the devaluation of the local currencies have helped drive demand.

“The euro had devalued earlier so Thailand and Indonesia were very expensive to us, but not anymore. Demand is good and the destinations are selling by themselves because the Dutch are well informed about what Thailand and Indonesia have to offer,” he added.

Ekaterina Milosh, deputy director of Tour Prestige Club, Russia also finds Asia becoming more attractive for rich Russians.

She said: “The weak rouble has affected the middle-income market. The upmarket travellers, however, are still travelling. For them, Asia is becoming more interesting because airfares to that region are sometimes cheaper than Europe.”

Milosh identified Thailand, Vietnam and Bali as being most popular among her travellers. These destinations have luxury hotels and coaches, private jet services, many attractions and excellent airlinks from Russia, she explained.

“Russians like to fly to destinations that require only two transits at most,” she added. As such, Bali is the best selling destination in Indonesia, while little attention is paid to other less accessible destinations in the country.

However, not all longhaul travellers are drawn to the South-east Asia because of the favourable currency exchange.

Although the Mexican peso had fallen in the past year, Reuven Sagi, president of RAS International Tours in Mexico, said demand for Bali is still good as “honeymooners are less price-sensitive because it is a special occasion (for them).”

Jeff Roberts, founder of Global Pursuits Services in the US, said young Americans who are travelling to Asia for the first time are keeping demand strong for Thailand.

Additional reporting by Mimi Hudoyo

In pursuit of high-end tourism

By Caroline Boey

September 9, 2015

Already a popular destination among domestic travellers attracted to its cultural heritage sites and scenic spots, what else does Leshan need to attract the international high-end clientele?

As Sichuan and its provincial capital Chengdu become increasingly popular destinations on the international travel circuit, the Chinese trade is also observing a marked interest in Leshan, a city located about a two-hour drive from Chengdu Shuangliu International Airport.

Close to Leshan are the UNESCO World Heritage Cultural and Natural Sites of Mount Emei Scenic Area, which includes the 3,099m Mount Emei and the 8th century Leshan Giant Buddha Scenic Area, as well as Mount Qingcheng.

Last year marked a turning point in Leshan’s tourism development with the opening of the Anantara Emei Resort & Spa in April and the launch of the inaugural Sichuan International Travel Expo in September. The city also hosted the PATA Annual Summit in April this year.

More buzz will be created for the region with the entry of Six Senses Qing Cheng Mountain, which soft-opened in mid-June and will officially open in September. It is one hour away from Chengdu and two hours away from Leshan.

Access to Leshan is easy as Chengdu Shuangliu International Airport is served by domestic carriers as well as international airlines like AirAsia, All Nippon Airways, Asiana Airlines, Cathay Pacific, Etihad Airways, KLM, SilkAir and Thai Airways International.

In addition, a high-speed train takes travellers from the Chengdu airport to Leshan in under an hour.

Bo Wu, PATA regional director – Greater China, said the availability of natural and man-made attractions in Leshan is a boon to developing high-end heritage and culture in the destination.

More work on the software is needed though, remarked several industry members.

Linda Wang, managing director, Destination Asia (China), said: “Sichuan is up-and-coming and Leshan definitely has the potential with Anantara Emei Resort & Spa and Six Senses Qing Cheng Mountain.

“There are good products for high-end heritage and culture tourism, and the infrastructure is in place. But when we propose a high-end programme, we have to send a tour director from Beijing or Chengdu who is fluent in English.”

Kris Van Goethem, Asian Trails China managing director, pointed out that Mount Emei is “busy with domestic tourists”, driven by a huge domestic demand for Leshan from Chengdu on weekends and during the national holidays.

However, Mount Emei is not a priority for Asian Trails China’s upmarket clientele. So far, the DMC has been promoting Leshan as a day trip from Chengdu for a 500-pax UK group series that contributes about 20 to 40 people per group.

The availability of better operational options will therefore make Leshan more appealing to high-end tourists from abroad, he said.

“Good buses are limited and the boats on the river to view the Giant Buddha in its entirety are old, while the entrance fee to Mount Emei – RMB300 (US$48) – and staying at Anantara are not cheap.

“Mount Emei and Leshan are significant (destinations) in China’s domestic tourism but still in the shadow as far as international visitors are concerned,” Van Goethem observed.

“To sell to high-end international tourists, we can plan a three-day programme with accommodation at Anantara or Hongzhu Shan Hotel, and take them hiking in the less crowded middle part of Mount Emei and visit Bifengxia Panda Center in Ya’an.”

Van Goethem said self-drive holidays are big with the domestic market and the influx of domestic incentives and meeting business is expected to be the next development for Leshan.

This article was first published in TTG Asia, August 7, 2015 issue, on page 20. To read more, please view our digital edition or click here to subscribe.

Ritz-Carlton Reserve lands in Bali with launch of Mandapa

By TTG Asia

September 8, 2015

Credit: Ritz-Carlton Reserve

THE third property to come under the Ritz-Carlton Reserve portfolio is now open in Ubud, Bali. Named Mandapa, the resort is located along the island’s Ayung River and set among traditional temples, padi fields and a jungle.

The luxurious resort houses only 60 rooms, comprising 35 spacious suites and 25 private pool villas, designed using contemporary Balinese interiors with every element being sustainably sourced.

Mandapa features the look and feel of an indigenous Balinese village with views of rice terraces visible from room balconies and nature being an accessible part of the decor. The center of the resort even contains a rice field where guests can plant, harvest and tend to the saplings.

F&B options include four restaurants and lounges, offering a range of Indonesian cuisine and Mediterranean food. Customised wellness and detox menus using fresh local ingredients are also available. Additionally, a special tailor-made programme called Dining Beyond allows guests to dine at offbeat locations around the property.

Credit: Ritz-Carlton Reserve

Other amenities include a spa complex, fitness centre, yoga studio and a vitality pool. An organic garden, farm and kids education area is also onsite, allowing young ones the chance to participate in nature-based enrichment activities in collaboration with The Green School in Bali.

Rates at Mandapa start from US$570 per night.

Jumeirah pens deal to run new hotel in US$1bn Dubai tower

By TTG Asia

September 8, 2015

JUMEIRAH Group has signed a management agreement with RP Global to operate the Jumeirah Business Bay, which is expected to open in time for the World Expo 2020.

The mixed-use development, located within RP Global’s US$1 billion iconic tower, will include a 200-room hotel, 350 serviced apartments and 290 residences managed under the Jumeirah brand.

Located in the heart of Business Bay and a stone’s throw away from the Dubai metro station, the tower will have a built-up area of over 278,709m2 and offer views of downtown Dubai and the Burj Khalifa.

The tower, designed by Atkins Global, will include various F&B outlets, a Talise Spa, health club, conference and banquet facilities, a rooftop bar as well as a thrilling sky attraction.

The Jumeirah Group currently operates 23 hotels in Europe, the Middle East and Asia with a further 25 properties in the pipeline.

More travellers from Spain heading to Thailand as economy picks up

By David Ing

September 8, 2015

THAILAND has seen a major resurgence in arrivals from Spain this summer, with the European country posting strong growth among the longhaul markets.

Figures released by the Tourism Authority of Thailand (TAT) show that arrival numbers from Spain climbed almost 40 per cent in June and 62 per cent in July, translating to 70,542 arrivals as of end-July. Total arrivals for 2014 stood at 116,414, according to TAT.

Francesc Escanez, managing director of Atlantida Viatges, added that Thailand’s success is being shared by other regional destinations such as Myanmar, Cambodia and Vietnam.

“Travel is slowly recuperating in Spain, and it is South-east Asia that is performing best for longhaul (travel),” said Escanez. “We thought Thailand would suffer after what has been happening there in recent months, but we haven’t had cancellations.”

India and China are also showing growth this year, but Thailand and Indochina are benefitting most because of the value they offer, explained Escanez.

He added: “There has been little increase in prices in these (South-east Asian) countries and with their standards of service they are seen as (offering) better value than elsewhere like Brazil.”

ANA to revive Skymark with 18 billion yen bailout deal

By Julian Ryall

September 8, 2015

Credit: 123rf

ALL Nippon Airways (ANA) has agreed to a bailout plan for Skymark Airlines that will see the ailing budget carrier receive a major injection of cash and a new management team.

Skymark Airlines, Japan’s third-largest carrier, filed for court protection from its creditors in January with estimated liabilities amounting to 71.1 billion yen (US$603 million).

The carrier’s ambitious expansion plans, including a fleet of new Airbus aircraft worth US$2 billion and longhaul routes to London and New York were dashed as the soaring cost of aviation fuel and the falling yen took its toll.
Now, a rehabilitation plan will be set in motion with a new management team starting work at the airline on September 29. Additionally, 18 billion yen in new capital will be injected from a private equity fund and ANA Holdings, the parent firm of the airline.

“We are considering the ways in which we will work together in the future,” Maho Ito, a press official for ANA, told TTG Asia e-Daily. “The details have yet to be decided but we anticipate this will mean codesharing on some routes, although it will take some time to coordinate ticketing and other systems.”

Ito admitted that the two airlines are “rivals” but added that ANA has a tradition of assisting fledgling airlines, including Air Do and Starflyer.

Skymark declined to comment on the agreement, but said in a statement: “Skymark will make repayments to creditors in accordance with the rehabilitation plan and will make every effort to implement it. We request your full support in this regard.”

TripAdvisor to bring instant booking feature to Indian travellers

By Rohit Kaul

September 8, 2015

INDIAN consumers will soon be able to book hotel stays on TripAdvisor, a feature that has all along been available in the US and UK markets.

The company is currently testing the instant booking feature and has refrained from confirming the launch date.

“We will launch instant booking in India when we are ready with the perfect product and system,” said Helena Egan, director of industry relations at TripAdvisor. “We are hoping to be live in more markets very soon and in most of the 48 domains we have across the globe.”

Egan added that the product is slated to be available on mobile, desktop, or both platforms, and are in talks with hotel chains in India for possible tie-ups.

“We have received positive responses and feedback from the hotels in India. We are studying the needs of Indian consumers and may customise the product to suit their requirements should there be a need,” added Nikhil Ganju, the company’s country manager in India.

About 70 per cent of the company’s revenue today comes from advertisements, while the instant booking feature is the company’s second revenue generator.

Commenting on the need to introduce instant booking to its users, Egan remarked: “(It) is a friction-less way for consumers to book (a hotel) in two clicks and it does away with the middleman.

“A lot of hotels in India are highlighting that owning the consumer is important for them as some platforms only provide the names of the consumers, and details such as their emails and physical addresses are not shared.”

TripAdvisor is also looking to roll out this instant booking feature to other Asian countries, especially key markets like China and Japan.

Indonesians plan shorter vacations closer to home as rupiah weakens

By Mimi Hudoyo

September 8, 2015

THE weakening rupiah has put a damper on Indonesian consumers’ travel desires, causing outbound tour operators in the country to report a 20 to 25 per cent dip in travel bookings so far this year.

Rudiana, WITA Tour’s director of sales and marketing, told TTG Asia e-Daily that recent travel offers by airlines and tourism boards had failed to elicit much interest from customers.

“Singapore Airlines and Garuda Indonesia will hold their travel fairs this month and they are the industry benchmark, so results from these shows will paint (for) us a clearer picture of how Indonesia’s outbound leisure market will perform for the rest of the year and during 2016’s low season,” commented Rudiana.

However, with the rupiah now valued at 14,000 to US$1, the lowest ever since 1998, Rudiana is bracing for poor outbound business, especially as consumers wait for the currency depreciation to stabilise.

Exacerbating the cautious buying sentiments among Indonesians is the new government regulation for all transactions and prices to be in rupiah.

“Travellers who are used to buying their trips in US dollars are taken aback by the number of digits represented in rupiah. It affects them psychologically,” he said.

Anthony Akili, president and CEO of Smailing , also observed a change in travelling patterns. “(The poor economic situation today) isn’t stopping travel altogether, as Indonesians regard travel as a need. There is however, a shift in travel patterns. Those who have budgeted for their trips will still travel, but they are choosing either to shorten the vacation or head to a destination closer to home,” Akili explained.

As such, Akili expects domestic and regional travel to do well while longhaul demand will languish.

But Rama Tirtawisata, group managing director of Panorama Leisure Group, has found a silver lining in the cloud.

Tirtawisata said: “The strengthening of the US dollar has affected many countries, and data from Bank Indonesia shows that there are many currencies that have dipped deeper than the rupiah.”

Bank Indonesia’s 52-week data compilation on currency performance since June 30, 2014 reflected a 49 per cent decline in the Russian rouble against the greenback, a 27 per cent dip in the Turkish lira, and a 22 per cent fall in the Australian dollar. Some European currencies like the Swedish krona and the Danish krone were down between 19 and 22 per cent.

“The rupiah was down 14 per cent so it is stronger (than these currencies), which makes travelling to these countries cheaper,” said an optimistic Tirtawisata, who revealed that Panorama Tours Indonesia will focus on promoting these destinations with special packages soon.

“We will also allocate more budget for promotions and educate the market which is currently in shock,” he added.

Reduced KL-Delhi links will dent Indian business: trade

By S Puvaneswary

September 8, 2015

MALAYSIA Airlines’ decision to halve frequencies of air services between Kuala Lumpur and Delhi from September 1 has travel consultants in Malaysia and India fretting over the possible loss of business.

The beleaguered flag carrier, which had on August 28 undergone a rebranding and is being restructured into a new company, now flies daily on this route, down from twice-daily services previously.

Nanda Kumar, managing director of Hidden Asia Travel & Tours Malaysia, said this would slow down corporate incentive and group travel segments because clients would not be able to get seats for the entire group.

“Clients can still travel to Malaysia on premium airlines, via Singapore and Bangkok, but they may cut short their time in Malaysia. For instance, they may choose to stay two to three nights, instead of four,” he said.

Ganneesh Ramaa, manager at Luxury Tours Malaysia, is bracing for a drop of at least 10 per cent in Indian arrivals from Delhi this coming travel season, which runs from mid-September to year-end.

He said: “If clients cannot get seats on Malaysia Airlines, they will simply go elsewhere. Singapore and Thailand will benefit.”

With capacity down, Rajesh Sethi, managing director of Carnation Holidays in Delhi, warned of likely fare hikes by Malaysia Airlines for this route.

There is, however, a spark of optimism in this situation, arising from Malindo Air’s plans to launch twice-weekly flights between Malaysia’s Penang and India’s Tiruchirapalli come September 26. As the only service that connects Penang with an Indian city, it is expected to boost Indian interest in Malaysia’s northern region and mitigate a major loss of Indian traffic to Malaysia.

Travel consultants from both countries told TTG Asia e-Daily that they are eager to create new itineraries that leverage the new airline.

Kumar said: “We will combine Penang with Bukit Merah Laketown Resort in Perak, and Penang with Langkawi.”

Arokia Das, senior manager at Luxury Tours Malaysia, said: “There are now options to do tours in the north or to sell Penang as a mono destination as it offers many attractions in the city, on the hills and along the beach that appeal to Indians.”

Meanwhile, Chennai-based Holiday 18 Leisure Services’ director & CEO, K Gia, is looking for Malaysian partners from Penang to work with him to build new programmes, as “suppliers from Kuala Lumpur charge more”.

Falling yuan does little to dampen mood of Chinese vacationers

By S Puvaneswary

September 8, 2015

Shenzhen Bao’an International Airport. Credit: 123rf

CHINESE consumers are not depriving themselves of overseas holidays despite reduced buying power as a result of a depreciating Chinese yuan and emerging cracks in their national economy.

Buyers from China at PATA Travel Mart 2015 said their customers are still booking travel packages in earnest and the weak Chinese yuan, which has fallen four per cent against the greenback since August, is having minimal impact on outbound business.

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.”

He added: “Sri Lanka, India and Nepal have also risen in popularity among smaller groups (of eight to 10 people) without a tour leader. Such groups comprise friends and family members who are keen on exploring different cultures together.”

Also observing a pick up 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.

Travel trade from South-east Asia also revealed that Chinese demand is holding strong.

Ronald Poe, managing director of Yangon-based Asia Global Travels & Tour, said the Chinese are drawn to Myanmar as it is a “newly opened destination”.

Hui Seila, deputy director of marketing & promotion department, Ministry of Tourism of Cambodia, told the TTG Asia e-Daily that “Chinese arrivals to Cambodia are still strong due to the close proximity (of the countries).”

Additional reporting from Mimi Hudoyo and Paige Lee Pei Qi