Lotte Hotel Seoul

THE planned initial public offering (IPO) for Lotte Group’s hotel unit in South Korea has been delayed indefinitely as the conglomerate is currently embroiled in a bribery investigation.

Hotel Lotte Co. was scheduled to initiate discussions with potential investors on June 6 but the meeting was cancelled with no new date set.

Explaining the situation, Justin Kim, service industry analyst with Seoul-based Woori Investment & Securities, said: “The results have not been released yet, but the company has confirmed that it is under investigation. That means its filings will have to be revised, and then the stock exchange will have to reapprove those filings.”

The Lotte Group has a wide range of business interests and more than 100 trillion won (US$86.4 billion) in assets, but the conglomerate has been implicated in a series of scandals since last year when a power struggle broke out among the founding family.

“The Lotte Group has been involved with a lot of issues recently, with governance as one of the big problems. Nobody knows what is going to happen with the listing now. But I think it is clear that damage has been done to the brand image,” Kim told TTG Asia e-Daily.

In early June, prosecutors raided the offices of Hotel Lotte Co. in connection with allegations that executives took bribes in return for preferential treatment of a cosmetics company in Lotte’s duty-free shops.

These allegations are significant because the hotel unit’s duty free sales accounted for more than 85 per cent of total revenue in the last quarter.

As well as being the third-largest operator of duty free outlets in the world, Lotte is the largest hotel company in South Korea. The group also manages the Lotte World amusement parks.

STARWOOD Hotels & Resorts Worldwide is bringing Le Méridien back to Singapore, after leaving its shores for nearly a decade, with the brand set to take over management of the property formerly operated by Mövenpick Hotels & Resorts, TTG Asia has learnt.

The current site of Mövenpick Heritage Hotel Sentosa will undergo conversion works throughout the next few months before Le Méridien Singapore, Sentosa takes over operations of the building owned by Treasure Resort.

This also means Mövenpick will no longer have a managed property in Singapore. When contacted, Mövenpick said the decision was “amicable” and is “in line with our strategic portfolio realignment and accelerated growth plans for Asia”, said Andrew Langdon, senior vice president Asia at Mövenpick.

He further stated they will continue with their plan to double their portfolio in Asia by 2020, such as with the opening of the 312-room Mövenpick Resort & Spa Boracay this September.

Meanwhile, the new hotel under Le Méridien management will feature 191 rooms, including suites with private outdoor onsen pools, and a duplex penthouse suite with its own rooftop garden and infinity pool.

Other facilities include three F&B outlets, a swimming pool, a grand ballroom and multiple functions rooms totalling 243m² of meeting space. Design elements will reflect the brand’s Parisian heritage.

In other parts of Asia-Pacific, Le Méridien has plans to debut in Taiwan in the near future, as well as expanding its portfolio in gateway cities in China, India and Malaysia.

ITB Berlin exhibitor

ITB BERLIN has partnered with Cross Section Media to launch a co-branded travel trade show, Bharat International Tourism Bazaar (BITB) in India, to be held in New Delhi from October 3-6, 2016, and is touted as the first pure outbound show for the Indian market.

BITB will feature exhibitors from the online and technology space, as well as segments such as weddings, MICE and luxury, along with their corresponding buyers.

Traditional sellers such as destinations, airlines and hospitality will also be exhibiting.

In 1Q2016, India registered the fastest growth in air travel globally. Meanwhile, domestic air travel is expected to exceed 100 million movements, while outbound traffic exceeded 18 million last year, growing almost 15 to 20 per cent year-on-year.

BITB aims to bring in over 12,000 attendees from India and around the world at its inaugural show.

Phuket’s Patong Beach

A CHARM offensive to encourage Chinese tourists to spend more on local goods and services is about to start in Thailand, but businesses say it’s unlikely to lead to the end of zero-dollar tours.

At the forefront of the plan to capitalise on the growth of Chinese visitors to Thailand is Phuket, where provincial authorities were asked to work closely with tour operators to emphasise community tourism and promote local products. Chiang Mai will be the second province to adopt the approach before it is expanded elsewhere.

Chiangmai To Travel’s owner Peter Rungrod said he was sceptical about whether the approach would work given the number of Chinese tourists was “scaring other tourists away”.

He elaborated: “They act like it’s their home. They bring their own van, bring their own food, don’t spend much money – all they leave behind is a mess. I think the government should bring lesser tourists, but more high-quality ones.”

The government has since cracked down on cheap tours that are operated by companies using a nominee structure. Last month, the government suspended the licenses of 23 operators, and revoked six others, after a six-month investigation.

“I’d love the Chinese tourists to come into my shop more often, but so many of them are on these zero-baht tours,” Phuket silk retailer Narumol Thongcharoen said.

“They’re locked into a schedule and never explore. So this plan is a good start, but the government’s not tackling the problem at the root.”

TODD Arthur is replacing Brett Henry as vice president of sales and market development for Sabre Travel Network Asia-Pacific, effective since June 7.

Arthur will chiefly be responsible for sales performance and business growth across Asia-Pacific and will be based in Sabre’s regional headquarters in Singapore, reporting directly to senior vice president Roshan Mendis.

He will also work closely with Sabre’s Asia-Pacific product and technology teams to drive solutions development and deployment in the region, as well as be involved in identifying and championing growth opportunities for the company.

He was most recently managing director Asia-Pacific for HRS, and prior to that, had held senior management and business development positions for companies such as BCD Travel, Advito, Finnair and Malaysia Airlines.

Arthur also represents Asia on the board of directors of the Association of Corporate Travel Executives.

UWS’ opening in 1991

UNDERWATER World Singapore (UWS) will cease operations on June 26, 2016 after 25 years in operation, announced operator Haw Par Corporation yesterday.

Starting from today, prices at UWS will revert back to its 1991 opening ticket prices of S$9 (US$6.63) for adults and S$5 for children. Meanwhile, free admission will be given to beneficiaries from charity partners the group has worked with in the past.

The tourist attraction has also sent its pink dolphins, fur seals and otters to Chimelong Ocean Kingdom (COK) in Zhuhai, China.

The early closure, despite its Sentosa lease that will only expire in less than two years, is to facilitate the transfer of the marine animals to COK, stated Har Par Corporation in a media statement.

X2 (Crossto) Cruises boat

HOSPITALITY brand X2 has expanded into the cruising space with X2 Cruises, a luxury cruise offering on Bangkok’s Chao Phraya River.

Its two-hour tours feature heritage sites along the river that highlights the significance of Chao Phraya as a waterway in the country.

All tours will be operated aboard custom-designed Italian cruisers with features including leather furnishings, air-conditioning, fridges and a sliding targa-style roof for open-air sightseeing.

Anthony McDonald, CEO and founder of X2, said: “Most people think of Bangkok as a busy city with streets full of cars, tuk tuks, buildings and malls, but actually Bangkok has other interesting sights. We see the lives along Chao Phraya River and canals as one of them.”

X2 Cruises is also available for private tours, sunset cruises and boat rentals.

Hong Kong International Airport

HONG Kong International Airport will implement the controversial airport construction fee from August 1 despite earlier objection from the trade.

Airlines will tax departing passengers, including origin-destination and transit passengers, when air tickets are issued. The fee is being collected to fund the expansion of the airport, which includes a third runway.

Agents interviewed do not welcome the decision, although they predict the fee is unlikely to deter travel to and from Hong Kong.

Eastrip Travel general manager Jacky Chan said: “It’s not a good move but I think Hongkongers will get used to it eventually. We have no say anyway as it’s government policy. I also have reservations on whether we really need a third runway.”

Wing Wong, managing director of W Travel thinks it’s unfair for departing passengers to be taxed. “I think our government should bear part of the construction cost. It’s not fair for end-users to foot the bill,” he said.

Paul Leung, managing director of Holiday World Tours, is worried the fee will dent the city’s reputation as a destination.

He said: “The airport is perceived as an infrastructure funded and built by the government. Visitors may psychologically not feel good for paying for airport upgrades they can’t use now.

“Still, I personally support the idea of a third runway because of passenger saturation. Planes also have to queue longer before taking off and we need the infrastructure to fuel future growth.”