THE KOREA MICE Expo (KME) 2011 will see 180 exhibitors, 300 international and domestic buyers and over 3,000 meetings industry professionals converge at the Coex Convention and Exhibiton Centre in Seoul, from June 28 to 30.

The annual event is the largest MICE industry trade show in South Korea. The 2010 edition experienced a two-fold increase in foreign buyers, a 73 per cent increase in business consultation sessions, and an additional 15 countries in attendance compared to the year before.

It is expected that this year’s KME, the second consecutive year that the event will be taking place in Seoul, will see its largest turnout to date.

The event is hosted by the Seoul Metropolitan Government and the Korea Tourism Organization, and is organised by the Seoul Tourism Organization and the Korea Convention Society.

PHILIPPINE budget carrier Zest Air is capitalising on two of the country’s top beach destinations, adding two new routes to China starting end of June to early July.

A Kalibo-Beijing service will be inaugurated on June 26, 2011, while a Cebu-Shanghai (Pudong) service will start operations on July 2.

Kalibo is one of two gateways to the resort island of Boracay. Flights on Zest Air’s Kalibo-Shanghai route, which have run twice-weekly since January 24, will also be increased to four times a week starting June 25.

Tour operators would not gain as much from this development as resort and hotel properties in these locations, said Felise Cruz, assistant marketing manager at T.R.I.P.S., a travel agency in Manila. Other outbound travel agencies added that the new routes merely add nominal commissions. They prefer to offer other value-added services instead.

Zest Air chairman Alfredo Yao also revealed this week that the carrier was in negotiations for a Puerto Princesa-Shanghai route with Chinese authorities. The route would support President Benigno Aquino III’s campaign to get Puerto Princesa international recognition as one of the New7Wonders of Nature. Puerto Princesa is one of 28 global finalists vying for a slot in November.

ZestAir, formerly known as Asian Spirit, has undergone rapid expansion since it changed ownership in 2008. The airline’s upcoming destinations include Taipei, Singapore and Palau. It is also in joint venture talks with a Saudi Arabian partner to launch routes to Bahrain and Dammam.

Zest Air has set aside 10 billion pesos (US$230 million) to acquire up to six new aircraft by yearend – four Airbus A320s, as well as two Boeing jets to handle its Middle Eastern flights once the entitlements are settled. The carrier projects that its passenger traffic will increase to three million this year from last year’s 1.2 million.

SINCE helping end the civil war in 2009, Sri Lanka’s military has taken on an active role in the country’s tourism industry, in addition to its normal duties.

The airforce operates return-passenger flights from Colombo to the northern city of Jaffna, while the army is involved in tourism development in the country’s north and east.

The navy, on the other hand, operates a short-distance cruise liner for corporate functions and weddings, and also recently launched whale-watching cruises using a passenger vessel.

Tour operators and special invitees were on board the inaugural cruise earlier this week. Whale-watching enthusiasts get the chance to observe these mammals in the blue waters off the eastern port city of Trincomalee.

Sri Lankan waters are well-known for its blue whales and sperm whales, particularly just off the coast in the east, south and north-west regions.

THE PHILIPPINES’ air panel, headed by its Civic Aeronautics Board (CAB), has increased seat entitlements between the country and Malaysia for the Manila-Kuala Lumpur route. The extra capacity will soon be distributed among local carriers.

CAB legal division head, Wyrlou Samodio, confirmed the agreement for 2,520 additional weekly seats between the two ASEAN countries. Samodio disclosed to TTG Asia e-Daily that talks on increasing entitlements on routes to Indonesia, Sri Lanka and Vietnam were also planned within the quarter.

Low-cost carrier Cebu Pacific immediately lodged a request to obtain an initial 720 of the allotted seats immediately following the agreement. Cebu Pacific is currently entitled to 1,800 seats on the Manila-Kuala Lumpur route, while 500 seats are allotted to Philippine Airlines in a codeshare agreement with Malaysia Airlines.

The Philippines has a total of 18,300 weekly seats to Malaysia, distributed across different airports, including the Diosdado Macapagal International Airport in Clark, Pampanga, which has a largely unutilized allocation of 9,000 seats. Zest Air and Air Philippines Express have reportedly agreed to take up part of the Clark airport allocation, while SEAir’s participation is yet to be determined.

Meanwhile, Samodio reiterated the opportunity offered to foreign airlines by the Philippines’ open skies policy, implemented in March this year, which gives foreign airlines third, fourth, and fifth freedoms of the air rights to airports outside Manila.

BEST Western International has opened its second hotel in the Philippine capital, Best Western Antel Spa Suites.

The newly-built property is situated in the financial centre of Makati, and joins the Best Western Hotel La Corona, located along Manila Bay.

Targeting both business and leisure travellers, the 144-suite hotel offers facilities that include an outdoor swimming pool, a spa, massage service, a children’s playground and concierge.

Best Western now has three properties in the Philippines, including Best Western Boracay Tropics Resort. Plans are underway to add more properties in Manila and Cebu.

JOHN Keells Holdings (JKH), Sri Lanka’s largest hotel operator, is looking to plug its Chaaya brand, with several rebrandings of the group’s properties in the country.

“Given the positive outlook for tourism, we expect to make substantial investments in the leisure industry in Sri Lanka,” said JKH chairman, Susantha Ratnayake.

The Coral Gardens Hikkaduwa, currently undergoing refurbishment, will be re-launched as Chaaya Tranz Hikkaduwa in November.

Yala Village, a hotel in a wildlife park in the south, was closed in May for expansion and refurbishment. It will be rebranded as Chaaya Wild Yala and open in November.

The brand new 200-room Chaaya Bey Beruwala in Sri Lanka’s south will be ready by May 2012.

Meanwhile, in the Maldives, JKH has divested its stake in Cinnamon Island Alidhoo and acquired (on lease) the Chaaya Island Dhonveli.

Ratnayake also revealed that the group’s leisure arm was working with its property group to explore the economic feasibility of establishing multi-functional, integrated developments in Sri Lanka.

TOURISM receipts for the year in the Maldives will be three to four times more than previous estimates because of the tourism goods and services tax (GST) instituted in January (TTG Asia e-Daily, May 26), according to President Mohamed Nasheed.

“Previously, we estimated that the Maldives’ tourism receipts for the year would be around US$700 million, but since we started collection in January of the 3.5 per cent tourism GST, it has come to light that the figure will be around US$2.5 to three billion,” Nasheed said last Friday, during a meeting with media and tourism industry leaders.

Secretary general of the Maldives Association of Tourism Industry, Sim Mohamed Ibrahim, suggested that the new figures were overly-optimistic, “as a lot of it is guesstimate”.

“Tourism income varies depending on season, occupancy and volume of business,” he explained.

“If they (the government) are projecting the figures from January to March (the Maldives high season) for the rest of 2011, the figure will be very rosy. It may be a few years before we can calculate this accurately.”

TAUZIA Hotel Management yesterday opened in Jakarta the 88-room Harris Suites fX Sudirman. This is the group’s seventh Harris-branded property and third in the Indonesian capital.

Tauzia Hotel Management president director, Marc Steinmeyer, said: “This hotel is important for us, as it marks Tauzia Hotel Management’s entry on Jalan Sudirman, the most elite area in Jakarta and even Indonesia.”

The hotel, located on top of the fX Lifestyle X’nter Mall complex in the heart of the CBD, has also taken over the management of 10 boardrooms in the mall known as fPods, with capacities ranging from six to 16 persons.

The entry of the mid-scale Harris is expected to fill the gap of such facilities in the area. With the exception of the mid-scale Hotel Atlet Century Jakarta, there are only five-star hotels in the vicinity.

The other Harris properties in the Jakarta are located in Tebet in the south, and Kelapa Gading in the north.

Meanwhile, Tauzia is expanding its Indonesian portfolio to reach 49 hotels by 2013.

The group currently has 35 hotels under development, the majority of which are in the mid-scale and budget categories. Four Harris-branded properties are scheduled to open this year in Bandung, Batam, Bali and Sentul.

When asked whether he thought the market would be able to absorb the openings, especially in view of other hotel chains also keen to get in the act for mid-scale and budget properties, Steinmeyer said: “There is a market, and big, but, yes, there could be an oversupply in the next few years if the development is not controlled.”