RISING concern in China about the MERS outbreak in South Korea has led to a surge in travel cancellations, even as MERS is suspected to have crossed into Hong Kong.

The Korea Tourism Organization (KTO) revealed that 20,600 tourists have abandoned holiday plans to South Korea as of June 5. On June 2 alone, 4,500 tourists – including 4,400 from China, Taiwan and Hong Kong – decided to give South Korea a miss.

And the worst is yet to be – cancellation rates for visitors from China is expected to rise from 15 to 20 per cent, amounting to some 70,000 visitors.

Chinese travel agencies, including Caissa Touristic and Beijing Utour International Travel Service, have offered unconditional full refunds for cancellations of their South Korean tours.

However, a Guangzhou agency commented that sales to South Korea appear normal and that scheduled tours are proceeding as usual.

Nevertheless, the agency noted that industry players would be wise to refund visitors sooner rather than later in order to maintain their reputations.

Ctrip Shenzhen’s public affairs manager, Wang Yi, commented that both its group tours and free-and-easy travels to South Korea have proceeded as usual, but sales of South Korea itineraries have dropped significantly in the past two weeks, with sales at its Wuhan office plummeting by more than 40 per cent.

The company has also launched a WeChat group to connect travellers who have not embarked on their trips with those currently in South Korea to facilitate information sharing.

As of press time, there are 122 confirmed cases of MERS in South Korea, where the disease has claimed nine lives.

Meanwhile, fears of MERS in Hong Kong have spiked as authorities test two people who had both recently travelled to South Korea for possible MERS, according to Reuters.

Thirty-one people in Hong Kong suspected of having caught the disease have tested negative so far.

The Travel Industry Council of Hong Kong axed all tours to South Korea until end-June, affecting some 20,000 travellers, once it received word of Hong Kong’s red alert advisory against South Korea on Tuesday.

Article by Yvonne Chang. Translated by Ong Yanchun; from the original TTG China e-Daily, June 8, 2015 

GERMAN carrier Lufthansa’s announcement of a 16 euro (US$18) surcharge on all bookings made through intermediaries is reigniting long-standing debates on the distribution model for travel.

The fee will take effect from September this year and applies to bookings on all airlines in the group, including Brussels Airlines and Swiss International Air Lines.

Distribution has been a bone of contention for traditional travel suppliers, including airlines and hotels, in an age where the Internet has spawned a raft of OTAs and price-comparison sites. GDSs have also been criticised for failing to live up to expectations.

Airlines and hotels have in turn pushed back and are now actively encouraging direct bookings.

The Wall Street Journal quoted Lufthansa chief executive, Carsten Spohr, as saying that despite shelling out more than US$100 million in annual fees to middlemen like Amadeus, the airline remains dissatisfied by the technology offered.

The same report said Lufthansa is not the first to implement such charges – US’ Spirit Airlines charges US$10 extra for tickets bought through third parties, while some carriers including Delta Air Lines are no longer selling on certain travel sites.

Air France-KLM is also mulling introducing a similar surcharge, said The Wall Street Journal.

GDSs Travelport and Sabre have meanwhile branded Lufthansa’s action as harmful towards the interests of the travelling public.

Indian travel consultants have also made clear their opposition to the new surcharge, with several intending to boycott sales of Lufthansa and other airlines belonging to the same group.

“Our managing committee is meeting this week to discuss the fallout of the Lufthansa move, which is very harsh on travel consultants. We are getting calls from large number of consultants,” said Travel Agents Association of India president Sunil Kumar in a press release.

STARWOOD Hotels and Resorts Worldwide yesterday announced the planting of its flag in South Australia with the signing of an Aloft property in the state capital.

Aloft Adelaide also marks the brand’s third property to enter the Australian market, following the recent signing of Aloft Sydney Pitt Street, slated to open in October 2016, and last year’s announcement of Aloft Perth Rivervale, set to open in early 2017.

The new-build hotel owned by local developer Sturt Land, a joint venture between local construction group Tagara and Melbourne-based developer Colvid, is slated to open in early 2018 as part of the phase two of mixed-use development New Mayfield.

Just 20 minutes away from Adelaide Airport, It will feature 200 guestrooms, an indoor glass bottom rooftop pool, a 24-hour fitness centre with a rooftop running track, and 500m² of flexible meeting space.

F&B offerings will include Aloft’s signature W XYZSM bar, grab & go outlet Re:fuel and a signature restaurant space.

Guests will also be able to use their smart phone as a key through Starwood’s SPG Keyless system, which will be available at select Aloft, Element and W Hotels worldwide by end-2015.

Andrew Taylor, director acquisitions and development, Starwood Hotels & Resorts Pacific, said: “Demand for Aloft is rapidly accelerating and the brand continues to aggressively expand as we near 100 hotels worldwide. We are experiencing growing interest from investors and developers in the Australian market, who are attracted to the brand’s DNA, which fills a void in the hospitality sector.”

David Bertram, director, Sturt Land, said: “The New Mayfield project will form a vibrant, social space in the heart of Adelaide creating an ideal platform to showcase Starwood’s design-led Aloft brand. With an overall injection of A$300 million, this development is going to take urban design and living to new levels and Aloft Adelaide will be the jewel in the crown.”

A NEW mixed-use development is coming to Ngwe Saung’s shores by end-2017, where it will raise luxury standards, room inventory and tourism infrastructure.

Developed by Karaweik Coast, a joint venture company by Hong Kong-based H&CO Real Estate Holdings and Myanmar’s Mya Bay Development Company, the project will come with 512ha of hotel space along 8km of beach in its first site.

The second phase will include 1,214ha south of Mya Bay for a mini city, jetty, golf course, hotels, restaurants, a private hospital and a playground.

Ngwe Saung, sitting on the Bay of Bengal, is a four-hour drive from Yangon and Myanmar’s second most popular beach destination after Ngapali Beach in Arakan state.

Ministry of Hotels and Tourism data showed that Ngwe Saung had 23 hotels with a total of 1,264 rooms as of end-2014.