THAILAND is upping its game to compete with regional shopping meccas Hong Kong and Singapore by dropping the tax levied on luxury items, in the hope of encouraging spending by travellers.

According to Bloomberg, the import duties on luxury watches, clothes and cosmetics will be cut from 30 per cent to zero by the end of the year, although it will initially be reduced to between zero and five per cent for certain items.

Somchai Sujapongse, head of the finance ministry’s fiscal policy office, was reported as saying that the hasty nature of the change was to “help boost the economy this year”.

“Apart from buying luxury products, (tourists) will also buy our local products. We also hope wealthy Thai people will buy luxury items in Thailand instead of flying to Europe to make purchases.”

Areepong Bhoocha-Oom, finance permanent secretary of Thailand, said in the Bloomberg report: “The government has a policy for Thailand to be a shopping paradise. So it will reduce the tax on luxury imports to a competitive level with other (markets) like Singapore and Hong Kong.”

Thailand expects tourist arrivals to grow 18 per cent to hit 26.4 million in 2013, up from last year’s 22.4 million visitors.

TOURISM in Uttarakhand, which slumped after flash floods devastated the northern Indian state in June, will receive a boost from local and national level governments through a slew of initiatives.

Speaking on the sidelines of the 29^th annual convention of the Indian Association of Tour Operators, Uttarakhand department of tourism’s secretary, Umakant Panwar, said that major changes in the state’s tourism policy would be announced in a month’s time.

The changes would “provide tax exemptions to private players looking to invest in Uttarahkand on medium- and short-term bases”.

Said Panwar: “We plan to invest around US$151.5 million in the tourism sector with assistance from the central government and the Asian Development Bank. The government of India and the state government plan to invest around US$909.1 million in the next three to four years for rebuilding infrastructure in the state, including roads, water supply and electricity.”

The state tourism department is also planning fam trips to assure tour operators that the state is safe for travelling.

At the same time, the Uttarakhand Tourism Development Board is inviting tenders for a US$757.6 million mega project around Tehri Lake, which is expected to be completed in five years. Modelled on Italy’s Lake Como, the development will comprise of adventure sports facilities, leisure activities and a township. The board also wants to promote MICE and film tourism.

According to trade sources, tourist arrivals plunged 85 per cent since the mid-June floods. The state welcomed 28.4 million tourists in 2012.

“Post-flash floods, tourists are scared to come to Uttarakhand even though only Kedarnath was affected by the natural calamity,” noted Panwar.

Commented Subhash Verma, president, Travel Plus: “There has been a misconception among travellers that the entire state is unsafe for travel. With the efforts of the government, I expect tourism in the state to revive completely in the next two years.”

THE Japan National Tourism Organization (JNTO) debuted its first-ever booth dedicated to Muslim travellers at this year’s MATTA Fair, where JNTO and Japanese suppliers were confident that the country’s Muslim-friendly facilities and recent visa waiver (TTG Asia e-Daily, June 26, 2013) would entice more Malaysians.

Susan Maria Ong, deputy director, JNTO Singapore Office, said the booth in the consumer show was meant to provide information on the Muslim facilities available in Japan. Staff manning the booth were equipped to answer questions from the Malaysian public and distributed travel guides for Muslim visitors that JNTO rolled out this year (TTG Asia e-Daily, March 19, 2013).

Japan’s tourism stakeholders are also beginning to invest in Muslim-friendly facilities to lure more visitors.

For instance, the New Kansai International Airport Company is in the midst of setting up three prayer rooms within Kansai International Airport’s Terminal 1, to be completed by March 2014. It will also ensure halal meals as well as pork- and alcohol-free menus at 16 restaurants within the airport from November 2013.

Atsuko Yamakawa, PR manager, tourism exchange division, tourism bureau, Wakayama Prefectural Government, said these initiatives would make Muslim visitors more comfortable travelling through Kansai International Airport and result in more of them visiting Wakayama, a 30-minute ride away by train or bus.

She also shared that the Wakayama government’s tourism bureau is promoting self-drive holidays as a new product for leisure visitors, and homestays to the youth market.

Likewise, Toshimune Suto, South-east Asia area manager, inbound marketing, Kamori Kanko Group, said the company’s four hotels are all equipped with prayer spaces and serve Muslim-friendly meals. The group manages Rusutsu Resort Hotel & Convention, Yubari Resort, Art Hotels Sapporo and Tokachi Sahoro Resort.

He is anticipating 30 per cent year-on-year growth in the number of Malaysian Muslim travellers to Japan over the year-end school holidays.

The first half of 2013 saw 71,500 arrivals from Malaysia, and JNTO is aiming to reach 160,000 Malaysian tourists for the full year.

LESS than one year after being invited to join global airline alliance Oneworld (TTG Asia e-Daily, October 9, 2012), Qatar Airways has announced that it will become a full member of Oneworld as of October 30.

British Airways, which is sponsoring Qatar Airways’ entrance into the alliance, successfully completed a thorough review of the latter’s readiness and paved the way for the clearance.

Beginning October 30, Qatar Airways passengers can avail of Oneworld’s full range of services and benefits, such as earning frequent flyer privileges when travelling with any Oneworld alliance member.

Privilege Club Platinum cardholders will have Emerald status in the Oneworld programme; Privilege Club Gold will be equivalent to Oneworld Sapphire; and Privilege Club Silver will be Oneworld Ruby.

Privilege Club Platinum and Gold members will also be able to access 550 airport lounges offered by alliance member airlines, while Qatar Airways’ First and Business Class passengers can also use Oneworld partner airline lounges.

Frequent flyers on Oneworld member airlines can also earn and redeem awards and tier status points on Qatar Airways, as well as other Oneworld benefits.

CARLSON Rezidor Hotel Group is ramping up its Asia-Pacific portfolio with seven new hotel signings in 2Q2013, including a management deal that will see the group’s entry into Indonesia.

Simon C Barlow, president, Asia-Pacific, Carlson Rezidor Hotel Group, said: “Carlson Rezidor Asia-Pacific closed the second quarter of 2013 on a strong note, especially in the key market of India, where 25 per cent of all the deals signed in Q2 were for Carlson Rezidor hotels, according to Horwarth’s Q2 Hotel Deal Signing Report.

“These seven new deals place us in good stead as we build our portfolio in Indonesia, grow our presence in China and reinforce our leadership position in India. We are continuing to take the lead in India and expect to open eight more new hotels in India before year-end.”

The group will add four new properties in India: the 200-key Radisson Blu Mumbai Essel World, expected to open in 4Q2014; the 84-key Country Inns & Suites By Carlson Kota in 2Q2016; the 87-key Country Inns & Suites By Carlson Raipur in 3Q2016; and the 100-key Country Inns & Suites By Carlson Noida Extension in 3Q2016.

Carlson Rezidor will also up its Shanghai presence with the 200-key Radisson Shanghai Qingpu and the 250-room Radisson Shanghai Pudong Jinqiao. Both are slated for opening in 3Q2013.

Meanwhile, Radisson Batam will usher in the company to the Indonesian market in 2H2015. The 222-key hotel is located within the Bukit Indah Sukajadi development comprising a golf course, residential units, offices, as well as commercial and retail spaces.

ROYAL Caribbean International has unveiled next year‘s summer itineraries for Voyager of the Seas and Mariner of the Seas, featuring sailings to the East Asian destinations of South Korea, Japan and Taiwan.

Between March and November 2014, Mariner of the Seas will offer roundtrip cruises from Shanghai (Baoshan) to South Korea on three- to six-night itineraries. Ports of call include Seoul (Incheon), Busan, Jeju Island or Yeosu (Gangyang).

The ship will then end the season with an eight-night trip from Shanghai (Baoshan) to Singapore, calling on Xiamen, Hong Kong and Ho Chi Minh City.

Sister vessel Voyager of the Seas kicks off the season on April 10 with a 10-night sailing out of Singapore to Tokyo, with stops at Hong Kong, Kaohsiung, Taipei (Keelung) and Nagasaki.

From Tokyo, Voyager will embark on a six-night roundtrip sailing from Tokyo to South Korea and Nagoya on April 20, followed by two Japan cruises, a four-night itinerary from Tokyo to Taipei (Keelung) on May 5, and a seven-night roundtrip itinerary from Taipei (Keelung) on May 9.

Between June and September, the ship will sail four- to six-night Korean itineraries roundtrip from Beijing (Tianjin), and call on Seoul (Incheon), Yeosu (Gangyang), Busan and Jeju Island.

It departs on September 10 for a seven-night Japan and South Korea cruise from Beijing (Tianjin) to Hong Kong. Out of Hong Kong, Voyager will depart on roundtrip four-, five- and seven-night Japan and Taiwan cruises throughout September and October.

Voyager of the Seas and Mariner of the Seas are two of six Royal Caribbean ships offering the DreamWorks Experience, and summer itineraries are now open for sale.

THAI Airways International (THAI) will launch an investigation into last night’s incident at Suvarnabhumi Airport, where one of the airline’s planes skidded off the runway upon landing.

The Airbus A330-300 aircraft had departed Guangzhou at 21.25 and arrived in the Thai capital at 23.20, carrying 288 passengers and 14 cabin crew members.

In an official statement, THAI said that the aircraft’s landing gear had malfunctioned after touchdown, causing the plane to skid off the runway. Sparks were also noticed near the right landing gear close to the engine.

After the plane came to a complete stop, passengers were evacuated via the aircraft’s emergency exits and the 13 passengers who suffered minor injuries were transferred to the hospital.

The Bangkok Post reported THAI president Sorajak Kasemsuvan as saying that the runway was closed to flights as the aircraft had not been moved, but there was no need to divert flights to Don Mueang Airport.

Nevertheless, delays are expected for both inbound and outbound flights today, he said.

DESPITE the decline in the rupiah against the US dollar and aggressive competition from Thailand, Indonesia’s travel trade stakeholders have said that lowering prices to further attract overseas visitors is not on their short-term agenda.

The rupiah last month dipped to Rp11,330 per US dollar on August 22, the lowest it has been since 2009, though it made a slight recovery by the end of the month.

Marintur Indonesia’s executive director, Ismail Ali, said: “Indonesia as a destination is becoming more affordable for travellers who come and spend their money here.

“However, as far as packaged tours by tour operators (from visitors’ countries of origin) are concerned, they will cost more or less the same, as the biggest price component is airfare.”

Before the stabilisation of the rupiah over the last few years, local inbound operators and hoteliers were asked by overseas travel partners to lower their prices in US dollars whenever there was a fall in the Indonesian currency.

While stakeholders TTG Asia e-Daily spoke to have not received any such requests as yet due to ongoing contracts, rates may become a point of debate when the next contracting season arrives.

Indonesia Hotel and Restaurant Association chairman, Yanti Sukamdani, explained: “In terms of operational costs, the impact (of a weaker rupiah) is much lower than that of the increase in oil prices, because the import component in hotel operations today is minimum.

“In terms of revenue, those who trade in the US dollar – such as hotels who have contracts with overseas tour operators or whose markets are international travellers – are gaining, but the majority of hotels in Indonesia today cater for the domestic market, and in rupiah.”

When asked if this was not a good time to reduce prices to compete with Thailand, Aneka Kartika Tours and Travel Services’ Surabaya operations manager, Adjie Wahjono, said: “The airfare component is around 60 per cent of the packaged tour price.

“With or without the weakening of the rupiah, airfares to Indonesia are always higher than to Thailand, so cutting the cost of the land component does not make much of a difference. Thailand can offer competitive prices with government support. Can we do the same?”