PRICE-FIXING in the travel industry will no longer have a place in Hong Kong as a new government rule kicks into effect, but travel consultants are not all happy about it.

The government’s Competition Ordinance will be implemented later this year and the Travel Industry Council (TIC) has started to amend or revoke certain directives to avoid contravening the new ruling.

TIC rescinded its Directive number 215 on June 1, which set a price ceiling for service charges on outbound package tours, including the service fee that tour guides receive at the end of a tour that is not included in published package prices.

Yet Michael Wu, TIC chairman, predicted: “Though the Ordinance aims to offer fair competition in the market, I reckon there will be more consumer complaints in future as it creates chaos when (the tour guide fee) varies between one travel agency to another.”

Travel consultants in small- to medium-size agencies, such as Sef Lam, director of Via Vai Travel, prefer the previous system that had a guiding rate as it was easier, while others questioned the need to remove the practice.

Blue Sky Travel’s managing director, Angela Ng, commented: “This means big players have the liberty to charge freely. Why don’t we have a fixed pricing system? Travel consultants can then win the hearts of consumers or set themselves apart from the rest by the quality of their services or products.”

But at least one travel agency is keeping the tour guide fee unchanged. Sunflower Travel Services’ managing director, Cindy Young, said: “Our fee remains the same as before but we removed the phrase ‘Recommended by TIC’.”

Young said she would take a wait-and-see approach, adding: “Our concern is that some travel consultants will use the fee price to compete for business or poach quality tour guides by lowering their rebate rate of the fee.”

The rebate rate is the percentage of the tour guide fee that the tour guide owes the travel agency.

INFRASTRUCTURE development is the Bali regional government’s focus in the next four years as it aims to link the different regencies on the island and upgrade its ports.

I Ketut Sudikerta, vice governor of Bali said: “We are currently doing a feasibility study to connect Badung and Buleleng with a toll road. We expect to open a tender next year and then we can start development.”

Speaking to the media during Bali and Beyond Travel Fair 2015, Sudikerta said good accessibility will attract investments in other tourism infrastructure such as hotels and tourist attractions in the north, where a new airport has also been planned.

The regional government is also developing a ring road between Denpasar and Badung and improving existing main roads in several areas in the north.

“It is useless to build an airport now without good access,” he said.

In the meantime, the regional government also wants to upgrade its ports. Tanah Ampo port in Karang Asem is envisioned as a port for cruises while Benoa harbour continues to be developed into a turn-around port, according to Sudikerta.

The vice governor also took the opportunity to appeal to potential investors. “We all know that the economy is slowing down, but please do not keep your money in the bank. Please, continue to invest and develop Bali and keep the economic wheel rolling,” said Sudikerta.

IF ARRIVALS continue to grow at current rates, Chinese tourists to the US could reach four million by 2018 to become the country’s biggest source market.

Jay Gray, vice president of global marketing development, Brand USA, told TTG Asia e-Daily the 6.1 per cent year-on-year growth in Asian arrivals last year was outpaced by China’s 20 per cent increase.

Assuming China maintains the current rate of increase, it will reach 2.1 million visitors for full-year 2015 and 2.6 million next year.

Brand USA’s primary focus is still leisure and FITs, and the NTO will work with wholesalers to create more products for the latter, said Gray. So far, Brand USA has chanelled most of its efforts on Hong Kong, South China and Taiwan.

In order to continue driving Asian arrivals, Brand USA will launch its online training programme for travel consultants in India and China in late 2015.

The USA Discovery Program is comprised of 10 top-tier modules with information on the different regions within the US, and in-depth information on specific areas such as skiing, golf, and national parks as the US prepares for the 100th anniversary of its National Park Service.

“Even US partners like Cirque du Soleil have come to us and want to add their show to the module as a lot of people don’t know what is available,” said Gray.

The USA Discovery Program is available in six languages including English and Chinese.

A GROUP of 112 islands in South-east Maluku last week made a debut at Bali and Beyond Travel Fair 2015 following a slew of infrastructure and facility developments in the last five years.

“Kei Islands are a hidden gem; very few people know where we are and what we have to offer,” said Andreas Rentanubun, regency head of South-east Maluku.

“We have many dive spots, and five of them are WWF-certified. Visitors can walk or cycle along our two-kilometre Ngur Tavur beach at low tide.”

Andreas added that seasonally, visitors would also be able to meet the pelicans migrating from Australia, and leatherback sea turtles swimming in the sea.

Other offerings include cave trekking, and learning about the history and culture of the locals who originated from Bali. The islands also cultivate pearls and are rich in seaweed and fishery.

They have an airport currently capable of accommodating ATR aircraft. Garuda Indonesia, Wings Air and Trigana offer 90-minute daily flights between Maluku province capital Ambon and South-east Maluku capital Langgur.

Andreas revealed: “We are planning to expand the runway to accommodate (Boeing 737 aircraft) next year and we are lobbying the airlines to connect Bali and Langgur.”

Alexander Wijono, board member of Maluku Tourism Board, said: “We expect the historic link between Bali and Kei Islands to help us promote the destination. We have been in touch with Bali Tourism Board for joint marketing and promotions in the future.”

He added that this year, Kei Islands would for the first time host the annual Darwin-Ambon Yacht Race.

RESURGENCE in visitor arrivals and the Tokyo Olympics on the horizon is placing the Japanese hospitality market in the spotlight.

Japan broke its tourist record last year with 13.4 million international arrivals and, according to a tourism white paper released by the Japanese government last week, spending by foreign visitors to Japan soared more than 43 per cent in 2014 from the year before.

The same paper said total income from the industry came to 2.03 trillion yen (US$16.4 billion), with most of the additional revenue from countries in the rest of Asia where incomes are rising.

Hotel operators here are saying they can already feel the lure of the 2020 Tokyo Olympic Games provoking interest in the destination.

“We have seen a noticeable increase in our occupancy rates over the last 18 months and we are very much hoping that will continue as we get closer to the Olympics in 2020,” said Akane Murakami, a spokeswoman for the Mandarin Oriental Hotel in Tokyo.

The games are still too far away for the hotel to be drawing up specific plans, she said, but given the notorious shortage of accommodation options in Tokyo it is unlikely that the Mandarin Oriental will have free rooms when the Olympics are on.

The Four Seasons Marunouchi is similarly unlikely to have vacancies, agreed Akiko Kikuchi, as “demand for high-end accommodation is always strong in Tokyo”.

Tokyo has seen new openings in recent months, including the Millennium Mitsui Garden Hotel and the Hotel Unizo, both in the Ginza district, and there have been suggestions that other international chains are also attempting to secure land in Tokyo for new developments.

Inbound tourism has also been boosted by the yen’s weakness against other currencies, relaxed visa regulations and expansion of Japan’s duty-free system.

FOR the first time, DreamWorks Animation is inviting the public to have a glimpse at what goes on in its studios, which churned out blockbuster animation films like Madagascar and Kung Fu Panda.

In a groundbreaking exhibition put together by the Australian Centre for the Moving Image (ACMI) and DreamWorks Animation, 31 films and more than 400 works including character designs, sculptures and will show visitors how ideas leap from initial sketches to the big screen.

The exhibition started last week at the ArtScience Museum in Marina Bay Sands, and is the first stop of a five-year international tour.

Chris Harris, senior manager, ACMI Exhibitions and Touring, said: “The line-up for the following months ahead is New Zealand, Korea, Taiwan and China, and each exhibition will last for around three to four months.”

Marina Bay Sands spokeswoman, Val Chua, said guided tours for corporate groups are available upon request with a minimum of 20 pax.

For groups larger than 30 pax, the museum will be able to provide an itinerary by breaking the group up accordingly, she told TTGmice e-Weekly.

Each 30-minute tour will give visitors first-hand insight into the creation of DreamWorks’ star characters such as Shrek and Po. While all tours are provided in English, Chua said there is a Mandarin option, at an additional cost of S$100 (US$74).

Visitors can also learn the basic principles of animation while creating their own short movie at The Animation Desk, using a simplified version of DreamWorks’ software.

Tickets to the exhibition, priced from S$21 for standard adults, are now on sale.