An open letter to the ambassadors of nations represented in Thailand and the international media

June 13, 2014

In the wake of recent political developments in Thailand, I feel compelled to write to address what I believe to be gross misinterpretations of the current situation in Thailand by certain Western nations and elements of the international media. As a naturalised Thai citizen born in America – and who have lived in Thailand for over 51 years without forgetting my Western roots – I feel that I have a unique perspective on recent events and the reactions to them.

I am distressed by the interpretations made of both the coup that recently took place in Thailand and the situation that led to it. Put succinctly, many of the Western nations and international media have gotten it wrong. From where we sit in Thailand today, it is not an issue of which political party was right and which was wrong. All Thais will pull together to work within a system that is acceptable and sustainable to the Thai majority. Vilifying one party or politician will not lead to constructive reconciliation moving forward.

A coup d’état is not a positive event by any means. I do not believe that the Thai military considered it to be positive, but rather a necessary step that was taken reluctantly. I cannot think of one Western country that has in recent memory experienced the social and political gridlock that Thailand suffered through for the past six months, resulting in government and political paralysis against a background of increasing violence and needless loss of lives. As the situation escalated, it became painfully clear that there would be no resolution as neither side of the political divide offered any reasonable compromise or demonstrated any inclination to compromise. The military showed great restraint as it stood by watching the situation deteriorate, allowing ample time and opportunity for the politicians to resolve the crisis. The price for that period was paid for by the Thai people, in blood, stress and economic sacrifice and only when it was clear that that there was no other reasonable solution did the Thai military step in.

It is easy for people far away to have characterised events in Thailand as a clash between ‘pro’ and ‘anti’ democracy protestors. This is not correct. There are very few people on either side of the political debate who oppose the idea of a functional democratic system for Thailand. I believe the Thai military, the majority of political parties in Thailand and the Thai people all want democracy, and a stable and functioning democracy that represents the will of the Thai majority.

I believe the current environment provides the platform for an effective ‘reboot’ of Thai democracy that will meet the needs and aspirations of the Thai people. Thailand is a relatively young democracy and as every Western democracy has gone through periods of great change and reform, this is precisely what Thailand is experiencing as part of the maturation of its political system. Recent developments are an important step towards the establishment of a strong and stable political structure that will underpin Thailand’s success going forward.

However, Thailand is not only facing political challenges, but also the compounding effects of exaggerated media reports which paint a distorted and unrealistic picture of the situation. While such reporting may sell newspapers and draw TV audiences, it is fear-mongering which promotes a misunderstanding of the situation — this in turn influences government travel warnings worldwide and has a disastrous effect on tourism. There are no concerns whatsoever for personal safety within Bangkok’s large expatriate community or the millions of tourists still enjoying their holidays in Thailand, yet this is not mentioned in the international media reports or travel warnings. Life goes on very much as usual in Thailand but this is far from the impression that one gets when watching the international news channels.

Hospitality has a huge impact on the Thai economy, generating millions of jobs and billions of dollars in revenue for a country that is known throughout the world for its charm, safety and hospitality. However, 62 countries have issued travel advisories for Thailand, 18 of which contain a red alert advising citizens to defer all travel to Thailand, according to the Foreign Affairs Ministry. These travel warnings are baffling to those of us who understand Thailand and fly in the face of the fact that Thailand continues to peacefully welcome millions of travellers from all over the world. It is the responsibility of all parties, and the media in particular, to present the situation accurately and in proper context to promote understanding, rather than misunderstanding, of the situation. All parties involved need to think hard about the detrimental effect that their words and actions are having on the people of Thailand.

Today’s travellers are savvier than they have ever been and with many countries around the world facing economic challenges, political difficulties and natural disasters, our globetrotting community understands how to take these factors into account when making their travel plans. Increasingly, travellers are relying on first-hand advice from people at ground zero who understand that this is simply part of the international travel landscape. If the media continues to promote sensationalistic and simplistic viewpoints of the situation in Thailand, they not only do a disservice to the viewing public but also run a very real risk of making themselves irrelevant.

Thailand remains a peaceful and welcoming country, with unique natural and cultural attractions for travellers to experience and is very much open for business — this is the reality and this is the message that is NOT being sent by most major international media outlets and embassies.

Despite my deep concerns regarding the media’s portrayal of the current situation in Thailand, I have great respect and appreciation for the positive role that the media can play in promoting understanding of countries and cultures. I am hopeful that all parties concerned, the media and foreign missions to Thailand included, can pull together for the greater good of the Thailand that we know and love. I urge the media to exercise its persuasive power with principle and integrity, to promote an honest and clear understanding of the current situation. I urge foreign governments to reassess the severity of their travel warnings and to revise and update prior statements to reflect the reality that Thailand is completely safe for travel. I applaud those nations and media outlets already portraying news of the coup and the security situation in Thailand in a balanced manner — your integrity is appreciated.

We all agree that the tourism industry is critical to the growth of Thailand and its economy, and it should not become a casualty of misunderstanding, misrepresentation and hyperbole. Thailand very much remains open for business and is as safe, friendly and welcoming for tourists as it has always been.

I know that my letter is only one voice, but without voices there can be no conversation. I hope that my thoughts will at least cause some reflection, and generate informed dialogue, on the realities of Thailand today.

Your sincerely,
William E Heinecke
CEO and chairman
Minor International

By William E Heinecke, CEO and chairman, Minor International

Decoding a coup

By Raini Hamdi

June 13, 2014

Clearly, there’s a wide gap between how Thai sellers and buyers perceive a military intervention in Thailand. The former sees it as a measure towards certainty. For the latter it has uncertainty written all over it.

When the Thai army invoked martial law on May 20, followed by a military coup two days later, many Thai hoteliers, DMCs and PCOs described the move as being “actually good” in as far as its intention to restore peace and order in the country, which has been embroiled in a political stand-off for seven months, goes.

They were at pains to explain there is nothing sinister about a coup in Thailand, that its people are going about working, dining, shopping as normally as ever. Thai sellers interviewed at IMEX in Frankfurt the day martial law was imposed – the same day the show opened – said they were not surprised at all, although they thought it might be imposed a bit later.

Buyers, on the other hand, were shocked.

Clearly, there’s a wide gap between how Thai sellers and buyers perceive a military intervention in Thailand. The former sees it as a measure towards certainty, and something that is so normal in Thailand – after all it’s the 19th coup. For the latter, a coup has the word uncertainty written all over it and is anything but normal.

Fact is, words like ‘coup d’etat’, ‘martial law’, ‘curfew’, ‘banned’, ‘black-out’ are all negative, despite their impositions in Thailand bringing some positive effects for the industry (for example, at writing time, the protests had stopped). Can we blame any tourist for hesitating to visit when he sees that there’s a curfew from midnight to 04.00, that he can’t gather with a group of five friends as there’s a ban on that, that it is strongly recommended he allocates at least three hours of travel time to the airport and stay updated with traffic news to avoid missing his flights, that International SOS has advised to defer non-essential travel to Bangkok, that several countries have also issued travel advisories for Thailand, including Malaysia, India, Singapore and Ireland? Too hard.

In today’s world of travel being a click and low-cost air seat away, recovery is irrelevant. As Bill Barnett, managing director of C9 Hotelworks, said: “Cycles are gone, and there is now only action and reaction.”

The military intervention will hurt leisure and MICE arrivals further in the next few months. What the Thai industry needs to do is swallow this bitter pill and focus its energies on positive actions that will enable it to compete effectively in the long term.

Use the time, for example, to rally the government to ease visa restrictions on markets such as China – look at how destinations such as Japan and the US are reaping rewards of easing entry requirements. Invest on training and raising the professionalism and morale of service staff. Clean up and beautify Bangkok. Review Thailand’s brand image to see if it speaks to a wider audience, not just tourists but investors. Be creative with marketing – how about an attractive rate for airline staff, hoteliers, travel agencies and other industry members in ASEAN to holiday in Thailand?

Oh yes, make people laugh too, to defuse the tension. I simply love Swissôtel Le Concorde Bangkok’s Curfew Rate which came out the day after the coup.

Bintan’s Treasure Bay signs on US brands, Chiva-Som

By TTG Asia

June 13, 2014

BINTAN will see the Phase 1 opening of mega integrated resort, Treasure Bay Bintan, in 4Q2014, whose pioneering development will be an adventure hotel offering guests proximity to nature.

Malaysia-based Landmarks, which also owns The Andaman in Langkawi, announced that Phase 1 is anticipated to add 1,500 room keys to the island.

Spanning 90ha, it will feature Chill Cove, which boasts the largest Crystal Lagoon in Asia, as well as entertainment areas, bars, restaurants, aquatic sports facilities, retail areas and locations for at least eight hotels. To date, 60 per cent of these hotels have been committed to by renowned international and boutique operators.

Targeting nature and wellness visitors, Phase 1 will also include a destination health resort helmed by Canyon Ranch; a 40-hectare natural discovery centre with a mangrove enclave; river canoeing and other eco-themed activities; and a 20-hectare organic farm producing fruits and vegetables.

Phase 1 is fully planned and ready for implementation, and forms part of a 20-year master development to be rolled out in three phases, across the whole 338ha that is Treasure Bay Bintan.

In Phase 2, boutique health and wellness brand Chiva-Som will manage a resort under a new brand.

Changi Airport extends financial aid to airlines amid challenging environment

By TTG Asia

June 13, 2014

CHANGI Airport Group yesterday announced the rolling out of a wide-ranging Growth and Assistance Incentive (GAIN) programme to be implemented over the coming year.

In a press statement, the Group said with GAIN, a total of S$100 million (US$80.1 million) will be committed through various initiatives aimed at lowering costs for airlines, boosting passenger traffic and improving operational efficiency at Changi Airport.

From July 1, 2014 to June 30, 2015, all airlines operating at Changi Airport will enjoy an across-the-board reduction in operating costs, including rebates of 50 per cent on aircraft parking fees and 15 per cent on aerobridge fees.

A new package rewarding airlines for growing transfer traffic at the airport will also be introduced.

Airlines are also being encouraged to leverage the FAST@Changi initiative, which covers a range of self-service options for departing passengers. More details on FAST@Changi will be provided in due course.

Lee Seow Hiang, the Group’s CEO, said: “While we cannot iron out the volatilities of the industry cycle, we believe that GAIN will provide helpful temporary cost relief as airlines implement the necessary measures needed to adjust to the evolving market environment.”

According to Singapore’s broadsheet The Straits Times, the programme is a lifeline thrown in the wake of the Group’s year-on-year passenger traffic decline recorded in February and March this year, likely due to Malaysia Airlines’ MH370 incident and the Thai political instability, which have hit demand from its biggest markets China and Thailand.

AIBTM reinvents tradeshow format

By Xinyi Liang-Pholsena

June 13, 2014

THE Americas Incentive, Business Travel & Meetings Exhibition (AIBTM) will take on a new name and show format to become an exclusive, invitation-only event come 2015.

To be rebranded as IBTM America, the 2015 show will feature a unique turnkey, plug-and-play solution where a 2.4m by 2.4m standard pod will be provided to exhibitors on arrival, reducing exhibiting hassles and removing additional costs associated with set-up or tear-down, freight or drayage.

A flat, all-inclusive price of US$9,500 will be charged for each modular booth design.
The new format is a result of consultation and feedback from the industry, according to Michael Lyons, exhibition director of AIBTM at Reed Travel Exhibitions.

“Exhibitors have told us that it’s getting more expensive to come to a show because the booths and spaces are expensive – shipping, building and taking down the booth, plus labour and extras,” he said.

“(Exhibitors) only have so much budget and corporate budgets are being squeezed, but there are many more events to attend every year, so they have to make a choice on the best event for their ROI,” he continued.

“It’s not just about taking the money of those willing to pay to be here. This will level the playing field so it doesn’t matter if an exhibitor has a bigger booth. What’s relevant is dialogue and conversation.”

IBTM America will also boast a 1:1 buyer-seller ratio limited to 250 suppliers and buyers respectively. Hosted buyers are pre-qualified and selected for their interest in placing US business, and exhibitors will be from all sectors of the MICE market, comprising 60 per cent from the US and 40, international.

Both exhibitors and buyers will take part in a mutual match system for their appointment diary.
At the same time, IBTM America will do away with hosted buyer functions. In place will be meals, events and networking functions that include both buyers and suppliers, said the event organiser.

Said Lyons: “We realised that sometimes the exhibitors felt excluded and they weren’t getting enough access to the hosted buyers. By making the ability to bring the buyers and sellers together multiple times throughout the course of three days, we will create a community with more touchpoints and bring this down to a smaller, more intimate event.”

Reed Travel Exhibitions, however, will not be introducing this “hybrid solution” to other shows under its IBTM portfolio.

Said Sallie Coventry, portfolio director, IBTM Global Events Portfolio: “Our two table-tops in India and South Africa have been incredibly successful and are an absolute fit for those markets, but EIBTM is our flagship and that’s about ground presence – it’s a different proposition. Every show is tailored to the market.”

AIBTM 2014, which took place in Orlando from June 10 to 12, drew 1,200 buyers and 508 exhibitors this year. IBTM America will take place in Chicago in 2015 and Orlando in 2016.

Lombok trade rallies for Jetstar’s Perth services to continue

By Mimi Hudoyo

June 13, 2014

JETSTAR’S impending cessation of its four-weekly Perth-Lombok services on October 17 is a blow to the travel industry on the island.

Lombok has enjoyed significant growth in arrivals from Australia since the services commenced last October, but in less than a year, Jetstar had on June 5 announced it is making changes to the Perth network due to weak demand.

“Despite our best efforts to promote Lombok as a destination, we are just not seeing enough demand to sustain services at this time,” said the airline’s spokesperson.

Jetstar will up its Perth-Denpasar service to thrice daily and offer passengers who have booked to fly (Perth-Lombok) after October 16 a flight to Denpasar, or a full refund, plus a voucher of A$50 (US$47).

Stevan Servin, chairman, Lombok Hotel Association, said: “We are sad to hear this. Even without much promotion, Jetstar’s average load factor is 63 per cent. Just last week we (the travel industry) met with Australian wholesalers to create promotional programmes to boost (Jetstar’s load factor) further.”

Speaking to TTG Asia e-Daily, Servin said West Nusa Tenggara vice governor would travel to Australia next Tuesday to meet with Jetstar executives to explore ways to continue the service.

Sheraton Senggigi Beach Resort Lombok director of sales, Jelantik Suharta, who attended the Bali & Beyond Travel Fair, said: “It will be a big loss for us. Our Australia market has been up from five to 25 per cent since Jetstar started direct flights.

“Australian visitors have stayed up to six nights with us, which means the flight has (helped) Lombok to become a mono destination.”

Judy Anglim, product manager, Specialist Infinity Australia, said the development of new hotels, especially upmarket villas, has given Lombok something to offer high-end travellers.

She added: “What the direct flight has done is increase much awareness of the destination. We are going to push for it to stay.

“Besides, Garuda Indonesia has been offering an add-on between Bali and Lombok for A$50 (for travellers) from Australia. As long as Garuda continues to do so, I think Lombok will continue to be attractive to the Australians.”

Travelport’s new itinerary product to drive ancillary sales

By Hannah Koh

June 13, 2014

TRAVELPORT expects to roll out a B2B2C product later this year, by which agencies can send a detailed itinerary containing images, information and live links, allowing customers to access and purchase add-ons during the rest of the travel cycle.

Aimed at making ancillary purchases hassle-free, the itinerary product supports social media integration, and will also come in a white-label version for branding.

Damian Hickey, vice president, distribution sales & services, Travelport, said: “(The product) is driven by the travel consultants’ and airlines’ desire to serve customers; airlines want to effectively continue the selling experience with passengers the whole way through, until they get home.”

Meanwhile, the sale of ancillary products is still a major topic of debate among airlines, travel consultants and GDS providers.

Ian Heywood, vice president, global supplier strategy, GDSs, Travelport, told TTG Asia e-Daily: “Travel consultants are starting to book ancillaries on the GDS. This is one area in which the industry needs to work together on. Travel consultants need to be able to book ancillaries in a very efficient manner or the customer will go to another travel consultant or the airline direct.

“One thing that often comes up from travel consultants is that they are not getting paid (for the extra effort). That’s a discussion they and airlines need to have, but that’s a little of a chicken-and-egg situation.

“If travel consultants can demonstrate that they can generate that sort of additional value to the airlines, then airlines would be more willing to enter the discussion. At the moment the ancillary industry is in its infancy, so there’s got to be trust on both sides.”

Travelport currently has 24 airlines selling 50 different ancillary types across 178 countries. Within the last eight months it has signed on major LCCs Ryanair, AirAsia and Tigerair.

He added: “Ancillary revenues are very important to airlines – which don’t make a lot of money – and are estimated to reach US$45 billion next year. If you take them away from the airlines they would be making losses everywhere.”

Asked what is the weirdest ancillary item within the Travelport inventory, Heywood quipped: “(Space to transport a) hang-glider is a weird ancillary. That, and pets.”

Separately, Travelport yesterday announced its acquisition of Hotelzon, a B2B hotel distribution provider, as part of its Beyond Air offering.

Hotelzon will continue to operate under its existing brand and be led by incumbent CEO, Jani Kaskinen, who will report to Niklas Andréen, head of Travelport’s global hospitality, car and advertising business.

With the acquisition, there will be expanded hotel content in both Travelport’s and Hotelzon’s booking platforms and new technology, including Hotelzon’s corporate self-booking tool.

IATA, UNWTO collaborate on innovation, talent development

By TTG Asia

June 13, 2014

UNWTO and IATA have signed an MoU for joint innovation and talent development in the public and private sectors to promote competitive and sustainable tourism development, with a focus on the air transport industry.

Under the agreement, IATA will support the creation of a new category within the UNWTO Awards for Excellence and Innovation in Tourism, which will recognise innovation in marketing and product development with the objective to enhance connectivity and increase travel accessibility by airlines, travel agencies and other travel and tourism companies.

IATA will also be a leading implementing partner in the UNWTO Knowledge Network Talent Development initiative, which aims to support young talents in the tourism sector through internships, knowledge transfer and research.

Carlos Vogeler, UNWTO executive-secretary of member relations, said: “Air travel is a key driver of tourism development around the world and we are looking forward to joining forces with IATA in promoting the important innovations spurred by travel companies and further fostering young talents in the tourism and air transport sectors.”

Ismail Albaidhani, head of IATA Global Partnership and Travel & Tourism Unit, said: “We are now working very closely with UNWTO to strengthen the collaboration between the various travel and tourism value-chain partners, and today’s (June 10) important agreement establishes a solid platform to launch crucial joint-industry initiatives worldwide.”

Additionally, UNWTO and IATA agreed to co-organise an event on air travel and tourism value chains next January, in the framework of the UNWTO Awards taking place in Madrid.

BBTF seeks more funding, non-Bali sellers for next edition

By Mimi Hudoyo

June 12, 2014

BALI’S first B2B/B2C travel event kicked off yesterday, with sellers mostly from the island for a start.

Bali & Beyond Travel Fair (BBTF) attracted 361 sellers, the majority of which come from Bali, and some from West Sumatra, East Nusa Tenggara, South Sulawesi, Jogjakarta, Papua, Riau Islands and South Kalimantan.

I Ketut Ardana BBTF steering committee chairman, who is also chairman of the Association of the Indonesian Tours and Travel Agencies (ASITA) Bali Chapter, said: “We all know that Bali is the (major) gateway to Indonesia, and through this travel mart, we hope other destinations in Indonesia will be able to leverage the presence of international buyers to promote their destinations.”

In his opening speech, Ardana revealed 460 buyers from more than 50 countries had registered online and 233 had confirmed attendance.

“The response from buyers was overwhelming. We received 640 buyer applications, while we originally targeted only 150,” he said.

Bali vice governor I Ketut Sudikerta said: “Bali needs such a show, so the provincial government has submitted its budget for the show next year.

“I cannot tell you how much it is until we get approval (from the parliament), but we expect there will be budget from the regional and central governments. The event will be publicly and privately funded, so the industry will need to chip in too.”

Esthy Reko Astuti, director general of marketing, Ministry of Tourism and Creative Economy, said: “What we will do next year is to try and get more participants from more destinations beyond Bali.”

Waka Hotels & Resorts vice president sales & marketing, Dewi Trisnawati, told TTG Asia e-Daily: “As a first-time event, I think this show is quite good. We have seen old and new buyers, as well as some new interest (both for the properties and Bali in general).”

However, a buyer who declined to be named told TTG Asia e-Daily: “While I appreciate the event, I hope the next show would be better organised. It takes a (more) professional organiser to run a travel mart, and see to the appointment matching and scheduling etc.”

Unlike Tourism Indonesia Mart and Expo (TIME), a B2B event that rotates in developing destinations, BBTF is both a B2B and B2C event that will always be held in Bali.

No more shark fin at Marina Bay Sands events, restaurants

By TTG Asia

June 12, 2014

MARINA Bay Sands yesterday announced it no longer serves shark fin in restaurants it owns and operates, nor offers it at MICE events at Sands Expo and Convention Centre.

This initiative, which was piloted in October 2013, is aligned to the integrated resort’s global sustainability strategy – Sands Eco360°, which drives the stewardship of responsible business operations in the areas of green buildings, environmentally responsible operations, green meetings and sustainability education and outreach.

MBS’ MICE clients can choose from the Green Harvest Menu that features ingredients sourced locally to reduce food miles. Additionally, selected seafood served at MICE events as well as restaurants owned and operated by the resort are sourced from suppliers that fish or farm responsibly.

MBS is showcasing its sustainable seafood offerings from June 8 to 15 at its international buffet restaurant, Rise, in conjunction with Singapore’s first Sustainable Seafood Festival organised by WWF. Rise will serve 13 dishes in its special sustainable seafood menu alongside daily buffet menu.

The resort will also work with its tenants to encourage sustainable practices, including recycling, reducing food wastage and removing shark fin from their menus.