TTG Asia
Asia/Singapore Monday, 9th February 2026
Page 2218

Rate growth poses challenge to Indonesia hotels

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INDONESIA is fertile ground for hotel investment, but pushing rates up will remain a challenge for investors and hotel operators.

Speaking at the Second Annual Indonesia Hotel Investment Conference in Bali last Friday, Yanti Sukamdani, chairman of Indonesia Hotel and Restaurant Association shared that within the hotel investment space, Indonesia will welcome 288 new hotels by 2016 including 17 projects in Jakarta, 12 in Bogor, 12 in Jogjakarta, 15 in Cirebon, 19 in Surabaya, 15 in Makassar, and 67 in Bali.

She urged hoteliers and industry stakeholders to consider the challenges that continue to plague the industry. “When we build more hotels, we need more water, electricity, food and beverage, (things that the tourism stakeholders) need to consider about.”

She pointed out obstacles such as increasing land costs, not only in Bali but other Indonesian major destinations as well.

“Hotel rates in Indonesia remain low compared to other countries and this adds to the challenge both investors and hotel operators are facing,” she said.

The average room rate of four- and five-star hotels in Indonesia is about US$100 with RevPAR of US$70, while one- to three-star hotel rates stand at US$50 with RevPAR of US$38.

“While the tourism authority, the Indonesia Tourism Promotion Board (of which Yanti is chairman) and the tourism industry need to work harder to improve the product and services of our hotels, it is important for investors to calculate well the pay-back period,” Yanti said.

Nevertheless, the country’s tourism sector is doing well according to statistics from the Ministry of Tourism and Creative Economy.

Yanti said: “Tourist arrivals to the country up to April showed a (10.6 per cent) increase from 2.7 million in 2013 to 2.9 million.”

Domestic tourism is also rising. “The number of movements during this period was 55.9 million and the target for the whole year this year is 255 million,” she added.

Tourism receipts grew 6.9 per cent in 1Q2014, outstripping national GDP growth of 5.2 per cent, while investment in tourism during the same period soared 256.4 per cent from US$36.5 million to US$130.1 million.

Hong Kong, Bangkok are hottest June holiday destinations for Singaporeans

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SINGAPORE’S travellers appear unfazed by political tensions in Bangkok, with the Thai capital emerging the second most-searched destination after Hong Kong in the run-up to the peak June holiday period.

According to TripAdvisor’s aggregated results of searches made by Singapore’s travellers on TripAdvisor during March and April 2014, Singaporeans prefer to travel to short- to medium-haul destinations, stay in four- and five-star hotels, and are interested in outdoor and cultural activities as well as shopping.

Said Jean Ow-Yeong, spokesperson for Asia-Pacific, TripAdvisor: “With the increase in supply of low-cost airlines serving the local market, many of the top searched destinations by Singaporeans are just a short flight away.

“Given Singaporeans’ love for food and shopping, it is no wonder Hong Kong, Bangkok and Taipei are among the favourite destinations of Singaporeans.”

Hong Kong was the most searched destination by Singapore travellers, followed by Bangkok, Taipei, Seoul, Kuala Lumpur, Bali, Batam, Johor Bahru, London and Malacca.

London was the sole longhaul and non-Asian destination in the list.

New PTM Talks open engagement opportunities at PATA Travel Mart

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ORGANISATIONS that want to engage with delegates attending this year’s PATA Travel Mart can take part in PTM Talks, a series of power seminars making its debut at the annual tradeshow.

A new initiative by PATA, PTM Talks gives organisatons two 20-minute slots over the course of the two-day programme to conduct power workshops for between 35 and 40 delegates.

Sessions can be used for exposure, PR, brand positioning and lead generation, and held either in theatre style or workshop style. They will be held in a small seminar area within the main trade hall.

Companies interested in this sponsorship opportunity can download the PTM Talks Sponsorship Brochure.

PATA Travel Mart 2014 will run from September 17 to 19 in Phnom Penh and is poised to attract over 1,000 delegates from about 60 countries around the world.

Separately, PATA has also released the Annual Tourism Monitor 2014 Early Edition that provides readers with a five-year perspective on travel flows into and around the Asia-Pacific region.

The report’s findings cover 42 destinations across 11 sub-regions in the Asia-Pacific, and show that annual growth in international visitor arrivals averaged 6.3 per cent yearly from 2009 to 2013, before moderating to 5.3 per cent in 2013.

Destinations receiving the most Asia-Pacific travellers are China, the US and Hong Kong, while those that saw the highest annual growth in percentage of arrivals are Myanmar, Niue and Sri Lanka.

Hong Kong, China and the US were the biggest source markets for inbound traffic into Asia-Pacific, while China, Russia and Vietnam boasted the greatest annual increase in volume between 2012 and 2013.

Fore more information on the report, contact publications@PATA.org.

Outrigger eyes China market

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OUTRIGGER Hotels & Resorts is intensifying its sales and marketing efforts in China and Australia, with new properties coming up in China and Vietnam.

China is an increasingly important market for Outrigger, both as a source of guests for its properties and as a new development market, said Mark Simmons, vice president sales and marketing Asia-Pacific.

“We’ve been making moves in China,” he said. “We opened a sales and marketing office in Beijing in March with satellite offices in Shanghai and Guangzhou. Our team there will be driving our social media strategy for China through all the local channels, such as Weibo. We’ll also be launching a new Chinese-language website, which will be hosted in China, by the year-end.”

One of the company’s two live projects in the region is in China. Outrigger Clearwater Bay Resort and Spa will add 499 keys to a cluster of five-star hotels on Hainan by end-2016.

Outrigger Vinh Hoi Resort & Spa in Vietnam will come online in 2017, bringing 256 rooms, a golf course and residences to the resort town located between Danang and Nha Trang. Both properties will be managed by the hotelier.

Simmons revealed that the group had also undergone internal restructuring. “This included expanding our Sydney office as Australia is among the top three markets across all of our properties. We also opened a sales and marketing office in Paris in January, and this has especially benefited our Phuket properties. Plans are to open an office in Russia by the beginning of next year.”

The Hawaii-based hotelier inaugurated its first 100 per cent owned property in the region, Outrigger Laguna Phuket Beach Resort, outside of its traditional footprint in the US and South Pacific. It also purchased three properties earlier this year: Outrigger on the Lagoon Fiji, Castaway Island Fiji and Outrigger Mauritius Resort and Spa.

Air India’s Rome and Milan services to fuel outbound travel

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AIR India last Friday started daily flights to Rome and Milan with its Boeing 787 aircraft in a two-class arrangement.

The flight will operate four days a week on the triangular New Delhi-Rome-Milan-New Delhi route, and the New Delhi-Milan-Rome-New Delhi route for the other three days.

Ankur Khanna, managing director of the New Delhi-based Tristar Holidays, said that the direct flights are “huge accelerators”, given Italy’s popularity among Indian travellers.

“Arrivals in Rome cover excursions to southern Italy, and Milan is the gateway for Lake Como and northern Italy. The region has excellent shopping and gastronomic offerings that Indians are attracted to. This direct flight will increase arrivals from India to Italy and southern Switzerland,” said Khanna.

Rajendra Churiwala, director-eastern region, IATA Agents Association of India, said: “If the fares are kept at competitive levels then this flight will be a success and increase outbound travel to southern Europe, as it cuts down the transit time wasted when travellers fly other carriers to Italy.

“It is possible that outbound travellers from Nepal, Bhutan and Bangladesh going to Europe may transit at New Delhi to use this flight.”

TTM Plus could become WTM Thailand next year

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RUMOURS that Thailand Travel Mart Plus could be rebranded as World Travel Market (WTM) Thailand next year received a mixed response from the trade floor at last week’s show.

The move hinges on a deal being brokered between Reed Travel Exhibitions and the Tourism Authority of Thailand, which organises the tradeshow. An official from the NTO toldTTG Asia e-Daily that negotiations with WTM were ongoing but that no final agreement had been reached.

One Thailand-based travel specialist who preferred to remain anonymous said he would not have a problem if the event is rebranded, “as long as it brings the volume (of buyers)”.

However, he expects any deal with Reed, which owns and operates WTM and its four satellite events, would benefit hotels more than other sellers.

Ray Aucott, owner of Pack Ya Bags Travel Wholesale from New Zealand, said: “I’m not convinced it would work,” he said. “WTM events are very well organised, but the problem is that Reed’s list of buyers is very Eurocentric, so I’m not sure that it would work for the Thai exhibitors. (The organisers) have to be very careful not to lose the local connections that have been built up over the years.”

Speculation arose when buyer and seller questionnaires were circulated at last week’s trade fair.

Exhibitors said they were asked if they thought changing the annual event to WTM Thailand would be a positive move. On a separate questionnaire, buyers were asked if they would object to changes in the event’s current format, though there was no mention of either WTM or Reed Travel Exhibitions.

Philippine MICE traffic to Thailand takes a beating

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PHILIPPINE MICE planners are reporting cancellations for Thailand in the wake of a coup d’état and imposition of martial law, though the lifting of curfews in tourist destinations may help ease concerns.

Maricel Delfin, sales representative for Bangkok-based tour operator Trikaya that deals with Philippine businesses, said: “When the coup took place, our clients disappeared.”

Delfin observed that martial law itself was not a main worry. “What clients are worried about is if the airport in Bangkok will close.”

Maria Michelle Victoria, president, Golden Eagle Travel & Tours, who flew to Phuket via Bangkok in May, said that the situation had since stabilised. “But of course for tourism, it doesn’t look as good, publicity-wise…(and) because the situation isn’t so stable yet, it’s hard to market Thailand.”

However Bong Goyenechea, corporate sales officer at Ark Travel Express, said that even before news of the curfew being lifted had spread widely, he received a booking for 10 pax via KBS Travel last week. “People are still confident about doing business in Bangkok.”

On the other hand, Thailand Convention & Exhibition Bureau (TCEB) is beefing up support for planners. Vichaya Soonthomsaratoon, director for meetings, incentives, and conventions department, said that the CVB prepares Letters of Assurance to explain the country’s political situation to planners’ prospective clients and coordinates with tourism and police authorities to assist affected groups.

Vichaya remarked: “Normally we will urge the meeting planner to postpone – not to cancel – or to maybe to change (their activity to) another destination.”

Meanwhile, MICE traffic continues in Thailand with a 6,200-delegate Infinitus China trip in May having pushed through, a 15,000-pax Unicity Global Convention in Bangkok scheduled for October, and an L G Hausys incentive to Phuket for 850 in Dcember.

NATAS elects new executive committee

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A NEW batch of leaders has taken the helm at NATAS for 2014-2016 after its 35th annual general meeting last month.

Devinder Ohri, director of G C Nanda & Sons, succeeds William Tan as president of NATAS after the latter’s five-term tenure as president. Ohri has accumulated more than 30 years’ experience within the industry, handling inbound tours and corporate travel.

Chung Kek Yoong, managing director of Pacific Arena, was nominated deputy president. He brings more than 15 years of experience within industry and previously served as NATAS’ chairman air transport from 2000 to 2004. He was also a member of Singapore’s WDA’s Industry Skills & Training Council for the tour and travel sector.

The full listing of NATAS’ new executive committee can be viewed on the NATAS Executive Committee webpage.

Myanmar promotes alternative destinations to ease strain

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MYANMAR is ramping up efforts to develop new destinations within the country as well as promote travel during rainy season in a bid to make its tourism industry more sustainable.

While the plans fall short of offering incentives to hoteliers and travel companies to develop destinations outside of key hubs – namely Yangon, Mandalay, Inle and Bagan – authorities hope they will help resolve some of the capacity issues affecting the industry.

Said Kyi Thein Ko, secretary-general of Myanmar Tourism Federation: “People can arrive in Yangon, spend some time sightseeing then move on to destinations such as Pha-an (in Kayin state), which has lovely hot springs and some unique local hotels. The (tourism) ministry is now also promoting Min Tak in Chin state, which is excellent for trekking.”

Tin Nwe Wynt, marketing manager at the federation, said they are also marketing travel during the so-called “green season”, or rainy season when tourists can enjoy room rates at discounts ranging from 20 to 50 per cent.

The South-east Asian nation has seen its tourism industry boom since international sanctions were lifted two years ago, putting increasing strain on key destinations, especially Yangon which has limited hotel capacity and where room rates are now some of the highest in the region (TTG Asia e-Daily, March 13, 2014).

ASEAN Tourism Forum will be held in Naypyidaw next January, the first time the event has been held in Myanmar. The country hopes to be able to offer visa-free travel to more ASEAN member states by that time, especially neighbouring Thailand.

Said Kyi Thein Ko: “(Thailand and Myanmar) have agreed on it at a government-to-government level, but there are some difficulties. Thailand only wants to grant visa-free travel through its airports, but our government wants to include visa-free travel via the borders too, so they are currently discussing this point.”

Buyers pull out of TTM Plus, Thailand slashes arrivals target for 2014

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THE Tourism Authority of Thailand (TAT) has cut its arrivals target for this year by 2.6 million with a corresponding 96 billion baht (US$2.9 billion) drop in revenue projected due to the country’s protracted political crisis.

Governor Thawatchai Arunyik said the NTO was forced to revise down its original target of 28 million arrivals and revenue of 1.4 trillion baht, but remained bullish that tourism would bounce back. He said: “We are planning a number of special festivals and events to attract tourists.”

Thawatchai said TAT has arranged for a major international singer to perform in Thailand, is bringing 1,000 top travel buyers for a major fam trip, and pushing for an additional undisclosed marketing budget that should help it net 25.9 million arrivals.

The governor will also work with local specialist groundhandlers to strengthen ties with China. He was unfazed by a group of 20 buyers pulling out of Thailand Travel Mart Plus at the last minute. “I’m not too bothered by that; we’ll be looking for higher quality buyers and also hold talks at a government-to-government level,” he told TTG Asia e-Daily.

Plans to develop an insurance fund for tourists are also underway.

On the trade front, DMCs said it was still too early to assess the full extent of the damage to the tourism industry caused by the political crisis.

Tobias Fischer, business development manager at Go Vacation Thailand said: “Until there’s some sort of end in sight to the current situation there’s no point in investing much in (hotel) promotions.Tourists need to feel confident about coming to Thailand again.”

“Also, hotel promotions or discounts alone won’t work, they would need to be supported by promotions from airlines as well.”

Wasinee Kunlawat, group sales manage for Asia and Africa at Exotissimo Travel said she was offering some promotions for the Middle East market but explained that it was “not a special promotion to win tourists back because of the political situation”.

“The best we can do on that front is to send out regular updates on the situation to clients,” she said.

*The article originally quoted Tobias Fischer, business development manager at Go Vacation Thailand, as saying “there’s no point in investing much in promotions or marketing”, which was inaccurate and has since been edited for clarity.