Tourists are opting for other Philippine destinations like Cebu and Bohol; pictured, Sumilon island beach near Oslob, Cebu
The impact of Boracay’s temporary closure is not as widespread as anticipated, with foreign arrivals to the Philippines still increasing and filling up other resort destinations in the country, according to tourism stakeholders interviewed.
Philippine tourism undersecretary Benito Bengzon Jr said that despite the island’s closure in late April, foreign visitor arrivals into the country managed to grow slightly by 0.9 per cent in May and by 10.2 per cent to 3.2 million in January-May.
Tourists are opting for other Philippine destinations like Cebu, Palawan and Bohol; pictured, Sumilon island beach near Oslob, Cebu
One notable brights spot is the 43.8 per cent uptick in arrivals from China – displacing the US as destination’s second biggest market after South Korea – and the diversion of tourists to other destinations including Cebu, Bohol and Palawan, Bengzon pointed out in a presentation during the Hotel Sales and Marketing Association (HSMA) general membership meeting.
HSMA chair Margie Munsayac, who is also vice president of sales and marketing of Bluewater Resorts in Cebu and Bohol, said that while the South Koreans and Chinese were affected by Boracay’s closure, many of them rebooked to other destinations like Cebu and Bohol which are currently “enjoying very good occupancy”, including for city hotels.
Amiable Intertours general manager Bernadette de Leon said that as a result of these rebookings, even smaller hotels in aforementioned destinations are “full” and “expensive”. Some foreign tourists were also diverted to destinations in Luzon such as Batanes, Ilocos and Las Casas Filipinas de Acuzar in Bataan.
“Airswift Airlines’ services to Batanes are fully booked. (It is) enjoying a good slice of the foreign market and (capturing the rebookings from) Boracay tourists”, she said.
“While airlines suffered cancellations to Kalibo and Aklan (going to Boracay), they have to add flights to other cities like Tagbilaran in Bohol, Mactan in Cebu and Puerto Princesa in Palawan,” de Leon added.
While Bengzon declined to confirm if Boracay would reopen on October 26 after the six-month rehabilitation, hotels there are already taking measures in preparation of a possible reopening.
The director of sales and marketing at a five-star resort in Boracay told TTG Asia that the hotel is already accepting reservations for late October onwards, subject to confirmation as the date approaches.
De Leon added that resorts in Boracay are hopeful that the island will reopen before Christmas, and some are accepting reservations without finalising the deal until official confirmation of the island’s reopening from the government.
Liu: for Chinese, local specialities in South-east Asia serve both as a new gastronomic experience as well as a way to better understand the destination
Gastronomy has been identified as a key focus for the Tourism of Thailand (TAT) as part of its Open to the New Shades campaign, with the NTO spearheading more efforts in this area with the launch of the first Michelin Guide in Bangkok last year and hosting the 4th UNWTO World Forum on Gastronomy Tourism in Thailand this year.
At the recent Thailand Travel Mart Plus (TTM+) in Pattaya, TAT’s deputy governor for marketing communications Tanes Petsuwan revealed to TTG Asia that TAT plans to continue the Michelin Guide for another four years, and will expand the coverage of the guide to Phuket and Phang Nga in 2019 and to Chiang Mai by 2020.
But for all its efforts made on the gastronomy front, dining is still an area where Thailand has room to grow, particularly for the Chinese market, say industry members.
Ctrip Gourmet List’s Liu: for Chinese, South-east Asian delicacies represent a new gastronomic experience as well as a way to better understand the destination
“China’s mobile-savvy generation, in particular, has a penchant for checking out local restaurants and making restaurant reservations on apps ahead of their visits. However, such reservation service is lacking for many Thai restaurants on Chinese apps,” Fang Yaqin, Beijing-based product manager for Alibaba Group Holding, a B2B travel wholesaler in Thailand, told TTG Asia at TTM+.
She noted that many restaurants in Thailand, even those listed on Michelin Guide Bangkok, are either not aware of this pre-booking characteristic among Chinese travellers or are perhaps not keen to work with agents for seat bookings.
“I see immense opportunities in Bangkok, but we have only few contracts signed with popular outlets like Blue Elephant and hotel restaurants,” Fang said, sharing that her company would like to seek more partnerships with high-end dining outlets in Thailand to better serve inbound tourists from China.
Even though consumer review service Dianping.com – which Fang calls the “equivalent to TripAdvisor for the Chinese” – already covers restaurants in Thailand, most dining establishments in the country remain unbookable through the app, she claimed.
The voracious Chinese appetite for gourmet experiences has gotten Ctrip launching its own gourmet appraisal system in 2016 to provide local food and restaurant recommendations and convenient online table bookings for Chinese travellers.
Ctrip Gourmet List, which some liken to the Chinese equivalent of the Michelin Guide, has covered approximately 15,000 restaurants in 120 popular destinations both in China and around the world by end-2017.
In Thailand – where one-fifth of all Chinese outbound travellers visited last year, according to Ctrip’s 2017 Outbound Travel Report – the Chinese OTA giant sees a burgeoning food scene that is ripe to grow for Chinese travellers.
“Chinese are great food lovers and are willing to try local delicacies and cuisines. Dining is relatively untapped and there remain lots of opportunities to explore in South-east Asia to see which markets would attract more food lovers,” said Kimi Liu, CEO of Ctrip Gourmet List.
“As more Chinese travel to South-east Asia, local specialties and well-known local restaurants will offer them the perfect entry point into not just a wonderful gastronomical experience but a greater understanding and respect for their host countries,” said Liu.
Last month, Ctrip Gourmet List released its 2018 Taste the City Food List of Bangkok with a selection of 303 top ranked restaurants that reflect Chinese travellers’ tastes and preferences.
Besides Thailand, Ctrip Gourmet List is also available in the Philippines, Indonesia, Malaysia, Vietnam, Cambodia and Singapore.
Amadeus says it is one of the first providers to have achieved level three certification both as an aggregator and IT provider
Amadeus has received IATA’s level three New Distribution Capability (NDC) certification as an aggregator, adding to its existing level three NDC certification as an IT provider.
Level three, the highest NDC certification, is awarded to companies that can demonstrate the ability to execute Offer and Order Management. This means that Amadeus is able to consume NDC offers from airlines and distribute them to travel sellers.
Amadeus says it is one of the first providers to have achieved level three certification both as an aggregator and IT provider
Amadeus received the level three NDC certification as an IT provider in 2016 , and was the first to renew this certification on version 18.1, the most up-to-date, released in March this year.
Through its NDC-X programme, Amadeus is connecting airlines and travel sellers using the NDC standard. This certification has been achieved through Amadeus’ work with Travix, an OTA that joined the programme earlier this year.
“The NDC-X programme is in full execution mode and this is the latest example of Amadeus enabling the reality of NDC for the industry,” said Gianni Pisanello, vice president, NDC-X program, Amadeus. “We’re making great progress on our mission to enable our airline customers to make their new NDC content available to our global travel sellers network – at scale.”
John Mangelaars, CEO, Travix, further shared: “Later this year, our teams will be using this NDC-enabled solution to ‘shop, order and pay’ through Amadeus. The latest certification shows the strength of our partnership and capabilities using IATA’s NDC standard.”
HATA members may opt for post-show tours in Abu Dhabi (pictured)
The Hong Kong Association of Travel Agents (HATA) is adding a new package for its Annual Overseas Convention after “overwhelming response” that saw the post-show tour packages sold out ahead of the event in October.
The 45th edition of the annual event will take place in Dubai, with two- to four-day options available to HATA members.
HATA members may opt for post-show tours in Abu Dhabi (pictured)
The sold-out package, priced at HK$7,968 (US$1,015), includes the convention on October 13, as well as a two days in Abu Dhabi (October 14, 15) before the return to Hong Kong on October 16.
HATA is now introducing a separate package with a one-day tour to Abu Dhabi (October 14) followed by a return home on October 15. This is priced at HK$6,438.
Slots on the two-day convention package (without post-show tour) are still available at HK$4,988. Themed How Artificial Intelligence (AI) impacts on the future of travel, the convention component will comprise a welcome address by HATA convention chairman Edmund Tsang; keynote speeches; coffee break; panel discussion; and an open forum moderated by HATA vice chairman Richard Willis; and concluding remarks by HATA chairman Ronald Wu.
The two-day package would also include an afternoon tour to visit Desert Safari or Dhow Cruise on the day of the convention (October 13).
Clockwise from top: Japanese war memorial near Mandalay, Taukkyan War Cemetery, Yaiphaba Kangjam and remnants of Sittang Bridge
Specialist WWII battlefield tour operator Battle of Imphal Tours has expanded its tour options beyond Imphal, where it is based, and Kohima in North-east India, with the launch of itineraries in neighbouring Myanmar.
Founded in 2012 to commemorate the 70th anniversary of the 1944 Battle of Imphal in Manipur, India, the company now hopes to give tourists a fuller picture of the decisive Burma Campaign which started the downfall of Japanese imperial ambitions in Asia.
Clockwise from top: Japanese war memorial near Mandalay; Taukkyan War Cemetery; Imphal-based Yaiphaba Kangjam, who will lead all tours in Myanmar; and remnants of Sittang Bridge
“Myanmar and North-east India are bound together by their shared experience of the Second World War,” said Hemant Singh Katoch, founder of the tour company and publisher of two books about wartime Imphal.
“That’s why we now link the battlefield sites of Imphal and Kohima with those across Myanmar, which has dozens of historically significant locations. Only by covering both sides of the India-Myanmar frontier do you get a proper feel for the full drama and terrain of the Burma Campaign,” he said.
The company has launched the seven-day Essential Burma WWII Tour, the eight-day Chindits Tour, the 17-day Leisurely Burma WWII Tour and the 14-day Full Burma Campaign Tour.
Participants of the full trip may opt for a three-day extension in which they can cross from Manipur in North-east India to Myanmar using the Moreh-Tamu crossing, a route rich in strategic significance during the Burma Campaign.
Battle of Imphal Tours has linked up with Khiri Travel Myanmar, which will handle the logistics, transport and hotels often in remote areas of the country.
Thailand is the 20th most populous country in the world, but is believed to be among the top six plastic polluters
The Phuket Hotels Association (PHA) has joined forces with the US Embassy Science Fellowship Program to tackle the critical issue of waste management in Phuket, with the aim of eliminating single-use plastics at the island’s hotels.
Once the recommendations of the embassy’s appointed fellow are implemented at all the association’s 70-plus member properties, Phuket is set to become one of the first tourism destinations in the world to eliminate single-use plastics across such a large number of hotels and resorts.
Under the project, Marissa Jablonski, an appointed fellow of the programme, will conduct a 60-day research project investigating plastic use and waste management at hotels and resorts in Phuket, beginning July 2, 2018. At the end of her assignment, Jablonski will create a final report detailing recommendations for the elimination of single-use plastics at all Phuket hotels and resorts.
Thailand is the 20th most populous country in the world, but is believed to be among the top six plastic polluters
While Thailand is only the 20th most populous country in the world, it is believed to be among the top six plastic polluters, according to a statement from the partners. If urgent action isn’t taken, there could be more plastic than fish in the world’s oceans by 2050.
President of PHA Anthony Lark commented: “Plastic pollution is one of the most critical issues facing the planet today. The world’s oceans and the creatures that depend on them are choking on plastic and it is our duty to tackle this problem.”
PHA says it has already made reducing plastic is one of its primary goals, having set up a working group dedicated to eliminating plastic water bottles in hotel rooms and reducing other single-use plastics within the hotels, such as drinking straws.
The association also conducts regular beach clean-up events and hosts staff training and education workshops on the negative impact of plastic on the environment. To facilitate this, it has translated and created Thai subtitles for the documentary A Plastic Ocean, in partnership with the Plastic Oceans Foundation.
Anuradha Venkatachalam has joined Holiday Inn Singapore Atrium as director of sales & marketing.
Reporting to the hotel’s general manager, Tuncay Bockin, she will be responsible for growing key corporate accounts and manage all aspects of sales & marketing, including customer relationship management, segmentation marketing, digital marketing, and brand & communication strategies.
Anuradha has spent almost a decade of her work experience in sales & marketing management. She has been with InterContinental Hotels Group for the past eight years, first starting her career with the group at Crowne Plaza Bahrain.
Prior to her Singapore move, she was director of sales & marketing with Crowne Plaza Sohar in Oman.
Exo Travel recently celebrated its 25th anniversary with a company party at the Grand West Sands Hotel in Phuket.
The party brought together 540 employees from across Exo’s 10 destinations in Asia as well as sales managers from its worldwide offices. The Bangkok-based DMC also recognised long-serving and outstanding employees at the event.
The highlight of the three-day celebrations saw all employees come together on Rang Yai Island beach to form the EXO25 logo.
Dream Cruises' Thatcher Brown (left) and Kepulauan Riau Province governor Nurdin Basirun
Genting Cruise Lines has entered into an MoU with Bintan Resort Cakrawala to collaborate on developing Bintan’s cruise tourism sector, as the company’s Genting Dream made her maiden call at the Indonesian island on July 7.
Thatcher Brown, president of Dream Cruises, said in a statement the company is “committed in developing Indonesia’s tourism industry, along with the regional cruise industry as a whole”, as the 150,000 GRT Genting Dream now sails to numerous destinations in the country such as Jakarta, Surabaya and North Bali.
Dream Cruises’ Thatcher Brown (left) and Kepulauan Riau Province governor Nurdin Basirun
“Together with the continued support of the local government and the various partners, we will continue to work closely to develop and accelerate the cruise tourism potential of Bintan Island,” he added.
I Gede Ngurah Swajaya, Indonesia’s ambassador to Singapore, said: “The maiden voyage of Dream Cruises’ Genting Dream from Singapore to Bintan is the beginning of a wider exposure of Bintan Islands as a world-class tourism destination. Therefore, it is essential that Bintan should prepare itself to welcome more foreign tourists and make their stay in the islands convenient, enjoyable and memorable.”
The two-night Weekend Getaway cruise with optional Bintan Island shore excursions is part of Genting Dream’s collection of round trip itineraries year-round from Singapore across the South-east Asian region. Around 3,000 to 5,000 international visitors are expected with every trip.
With a 12-hour stopover at Bintan Island, vacationers can choose from a variety of pre-planned shore excursions from sampling local cuisines and shopping to massages and adventure activities.
For golf enthusiasts, shore excursions range from S$50 (US$37) to S$70 per person while golf packages range from S$150 to S$190 per adult (prices include return ferry ticket from the ship to Bintan). Guests who prefer to explore Bintan Island on their own can also arrange a Free and Easy Expedition (S$30/guest) with inclusive ferry service and coach transfers to and from Plaza Lagoi Bay.
Poh: transformation involves shutting unprofitable business units, e.g. transportation and tour operations, but this has led to speculation in the market
Asiatravel.com Holdings (Asiatravel) believes there is a turnaround opportunity for the company and assures creditors it is committed to settling its debts when the sources of funds it is actively sourcing materialise.
Executive chairman and CEO Boh Tuang Poh, addressing trade concerns exclusively with TTG Asia, said: “Other than managing existing business, our other biggest activity is on deep discussions with our controlling shareholder on their payment schedule and retrieving our various funds locked in deposits and security with payment gateways and suppliers as quickly as possible. We truly thank those who have been most supportive during this most difficult time of our 23 years of operations and will endeavour to keep all parties concerned updated.”
Asiatravel was forced to suspend trading on the Singapore Stock Exchange when its controlling shareholder, China-based ZhongHong Holdings, missed a scheduled payment of S$7.4 million (US$5.4 million) on June 30, which the company said was critical to its continuing operations and payment of its debts.
Poh: transformation at AsiaTravel involves shutting unprofitable business units, e.g. transportation and tour operations, but this has led to speculation in the market
The news generally took agents and suppliers TTG Asia interviewed by surprise, fuelling uncertainty about the company and confusion whether it was still operating.
It is, though at present on a scaled-back mode. Said Boh: “All our offices are still in operation (albeit with) only leaner staff strength because we have already scaled back on B2C operations and focusing mainly on B2B online business. Plans to resume full-scale business are in place once we start receiving our funds.”
A pioneer in the Asian online travel sector, the group started in 1995 as a B2C player with Asiatravel.com, but started to pivot to B2B in 2012 as more OTAs entered the sector. In an interview with this editor in October 2012, Boh said: “We did well in the first 10-15 years on room reservations. But in the last two years (2010-2012), the business dynamics changed. As Europe faced difficulties and growth continued in Asia, more players started coming in here and, to gain a foothold, they are willing to spend massive amounts of marketing dollars. Asia is now their core and they want it fast.”
Competition has only increased since, with the likes of Expedia, Booking.com and Agoda putting even greater focus on the region. Its B2B pivot proved a saviour for Asiatravel. In its Annual Report FY2017 filed on the Singapore Stock Exchange on July 9, the group’s revenue from sale of services was S$168.6 million, a 72.7 per cent increase compared to FY2016, mainly due to its online B2B business, TAcentre.com, which rose 142.8 per cent to S$80.9 million in FY2017. “The increase was mainly due to contribution from the PRC market,” said the company.
But despite the increase in revenue, Asiatravel incurred a net loss of S$34.6 million in FY2017. Answering TTG Asia’s query on the loss, Boh said: “Much of our losses last year is attributed to our China startup operations, to become a major OTA in China, as mandated by the same controlling shareholder whose business was under a transformation from a traditional property developer into a tourism-based developer and operator. This is evident in their subsequent acquisitions of other major travel companies after investing into Asiatravel.”
Boh said Asiatravel had every reason to believe the balance amount (S$7.4 million) of the bond, which was signed a year ago, would be paid up by June 30 as ZhongHong Holdings had already funded a total of S$34 million over the course of last three years though there have been some delays due to the Chinese government’s restriction on foreign remittances.
“Up to as recently as a couple months ago, we were still assured that they were working on the remittance of funds to us and there wasn’t any indication that it could be further delayed,” Boh said. “But as fluid as how matters such as regulations and the economic situation can be in China, we have been actively engaging potential investors from more of a business strategic angle than for the funds. Unfortunately these discussions are still ongoing and couldn’t buffer the delay of ZhongHong’s funds.
“In our contingency plan for such a delay which is in place now, our operating priority becomes managing existing business already booked by our clients and to cease accepting new bookings. Although we had accumulated outstanding invoices with some suppliers such as hotels, we had been forefront in explaining that once our shareholder’s funds are on hand, we will make settlements as a first order. In this outturn of event, we seek these suppliers’ understanding that it will be further delayed,” said Boh.
Boh also allayed rumours in the trade that Asiatravel was in trouble. He said: “From beginning of this year, we had announced a major transformation internally to focus only on profitable lines and to expand our B2B business which now has supply partnerships with major agencies around the world. In the course of transformation, we had shut unprofitable business units such as transportation and tour operations and terminated offline wholesale subsidiaries, but unfortunately this created various speculations in the marketplace.
“We understand the concerns and uncertainty in the marketplace and especially when we had to announce (last Friday) our external auditor’s note regarding going concerns and we have accordingly prepared our financial statement using going concern assumption. Hence in the same announcement we had listed seven reasons why the company believes there is a turnaround opportunity. With this, we are assuring creditors that we are still committed to settling the debts when these few sources of funds materialise.
Meanwhile, in the Annual Report FY2017, Boh reiterated the group would expand its B2B platform, TAcentre.com, and would develop augmented reality digital tours in Asian destinations with its technology partner, Yaturu, following the launch of its first ‘digital theatrical tour’ to Israel recently which he said had “received very positive responses”.
Asiatravel had also completed the placement of S$1 million with the partner on April 6 to develop these tours.
With its online B2C channel, Boh said it would focus only on destinations where it had leading position. For other emerging online markets which it had previously not covered, it would work with strategic partners with sizeable customer base to undertake marketing of its system and inventory.
“These corporate actions will stabilise the group as it undertakes a major restructuring exercise to strengthen its cashflow for the next financial year,” said Boh.
Additional reporting by Pamela Chow in Singapore and Rosa Ocampo in Manila
