New Zealand earmarks US$133 million for tourism

April 22, 2013

NEW Zealand’s prime minister and tourism minister, John Key, has announced that the country will inject some NZ$158 million (US$133 million) into the tourism sector as part of an internationally-focused growth package targeting different types of tourists across various markets through its 2013 budget.

Of the total amount, NZ$44.5 million will go towards attracting visitors from emerging growth markets such as India, Indonesia and Latin America.

“Travellers from these countries are looking for destinations to visit now and we want New Zealand to be the first choice. Although tourist numbers are growing, we currently have a very small presence in these markets. Our additional investment of NZ$44.5 million will enable us to attract them,” said Key.

Another NZ$24.5 million will be channelled into traditionally important markets such as Australia, the US, the UK, Germany and Japan, as well as China, a source market that has continued to grow exponentially over the last ten years.

The government will also partner the tourism sector to offer NZ$28 million in four years under a co-funding model to be called the Tourism Growth Partnership, to support business innovation and growth initiatives, with the government contributing up to 50 per cent to each initiative.

A further NZ$34 million will go to growing the business events sector, which includes conferences, conventions and exhibitions. “Conference and convention visitors are particularly valuable as they spend NZ$318 on average, compared to NZ$208 for the average tourist,” Key observed.

“In addition to this, we will spend NZ$20 million over four years to target very high-value visitors who spend far in excess of the average tourist. These visitors use luxury accommodation, private transport, bespoke activity providers and high-end tours,” he said.

Peninsula Hotels offers summer deals

By TTG Asia

April 22, 2013

THE Peninsula Hotels has launched its Summer Moments promotion at all Peninsula Hotels worldwide.

Available between May 12 and September 18, guests who book a room under Peninsula Hotels’ promotion will enjoy an upgrade to the next room category, daily American breakfast for two, complimentary local calls and in-room wired and wireless Internet access, on top of special room rates.

On the other hand, guests who book a Peninsula suite will receive daily American breakfast for two, free local calls, in-room wired and wireless Internet access and better value room rates.

They will also be gifted with up to US$200 per stay in hotel credit, which can be used at the hotel’s F&B outlets, The Peninsula Spa and Peninsula Academy programmes.

For more details, visit peninsula.com/Summermoments.

Happy Travel launches B2B Bookmoko.com

By Marianne Carandang

April 19, 2013

WHO
Happy Travel and Tours Corporation, a DMC operating since 1984 in Manila’s Chinatown, has gone online with the launch of www.bookmoko.com (Filipino for ‘book me) in December 2012.

WHAT
Bookmoko.com is an online B2B platform with buy-and-sell automation via XML/API, as well as Neptune and ARM login options, described Happy Travel general manager Stephen Sia Tan.

The site’s real-time booking engine features hotels with best available rates, transfers and sightseeing tours. Inventory is sourced from a network of 70 OTAs, as well as through direct contracts.

Bookmoko.com also has the ability to power other agencies with a white-label solution.

Currently, payments to Bookmoko.com can be made via bank transfer, while credit card transactions are being sorted out.

WHY
Bookmoko.com has opened new areas of business for Happy Travel, particularly in the outbound segment for hotel bookings worldwide and Asian packages.

Tan views the online channel as a supplement to his DMC business. “We see the contribution in this area to be significant after (the site) is up and running over the next 12 months,” Tan said. “It involves learning new commercial ideas, implementing a distribution strategy (with a payment set-up on the back-end) and bringing in new staff.”

He added that companies with an online presence were also viewed as more advanced and credible. However, he still deals with local travel consultants “the old-fashioned way”.

Target Happy Travel used to target East Asian and South-east Asian markets, especially Malaysia. However, within just a few months of being online, Bookmoko.com has secured a diverse range of clients from countries like Turkey, Lebanon, Israel and Singapore.

Tan aims to expand distribution to brick-and-mortars and OTAs in Asia, and build its white label services locally and overseas.

Longhaul demand for China holds strong

By S Puvaneswary

April 19, 2013

THE uncertain economies in Europe and the US have done little to affect longhaul MICE travel to China, say buyers at IT&CM China.

Rois Travels Italy general manager, Claudia Palombo, said she had seen a 15 per cent year-on-year rise in outbound to China this year, crediting the China National Tourism Administration’s increased promotions and advertising efforts in Italy.

She said: “More incentive groups are looking at China as rates are reasonable. Thailand and Malaysia are our biggest Asian destinations, but both are mature and self-selling. China has the biggest growth of all our destinations in Asia. China is on everyone’s lips.”

France-based Sport Incentive Conventions International’s managing director, Mircea Anitas, also reported a 15 per cent year-on-year increase in incentives and leisure travel to Greater China, mainly to Hong Kong, Shanghai and Macau.

French companies have been affected by the economic crisis and many have therefore reduced their travel budgets, scaling down on accommodation from five-star to four-star hotels.

“It is not easy to negotiate rates with hotels in Hong Kong. It is easier to do so with hoteliers in Shanghai,” he observed.

At the same time, Air Safety Equipment US president and CEO, S Rajan, said demand from New York and New Jersey for China had jumped seven per cent year-on-year.

Anticipating a further three to five per cent growth this year, he said: “The strong Chinese economy has attracted a lot of local corporates to China, and this is mainly to Shanghai, Hangzhou and Beijing for incentives.”

“South Korea has lost value due to the political situation with North Korea. We recently had a private aircraft suppliers meeting switch their destination from South Korea to Shanghai. That meeting comprised 90 delegates,” he added.

– Read more in TTG Show Daily – IT&CM China

Chinese outbound to Philippines on the rebound

By Paige Lee Pei Qi

April 19, 2013

TRAFFIC from China to the Philippines is on the path of recovery, having grown 40 per cent year-on-year as of mid-April, according to Kelly Jiao, marketing manager from Philippine Tourism Office, Shanghai.

She said: “There is more confidence in the market now…We have registered strong recovery since last October, and it has been continuously growing.”

Jiao said the rebound was complemented with improved air links. Starting end-April, Spring Airlines will launch daily flights from Shanghai to Manila, adding to services by Philippine Airlines, Cebu Pacific and Zest Air on this route.

Direct charter flights from Shanghai and Hangzhou to Boracay, which currently stand at 16 per week, will increase to 18 by June, she added.

Furthermore, the recent surge in the number of five-star hotels like Fairmont, Raffles and the Solaire Resort and Casino with 500 rooms and a 18,500m²gaming space in Manila will ramp up the city’s appeal as a “modern convention venue” for MICE groups, pointed out Baby Landan, senior project officer, MICE and business development unit, the Philippine Department of Tourism (DoT).

The DoT will also look at growing the number of DoT-accredited hotels in Manila and Boracay from the current 28 and 27 respectively, Landan added.

Macau hoteliers brace for challenging year ahead

By Xinyi Liang-Pholsena

April 19, 2013

AN AUSTERITY drive led by the Chinese government as well as rising regional competition has impinged on Macau’s MICE traffic.

Penny Yiu, assistant director of sales, The Westin Resort Macau, said: “We had strong business from China in 2012, but since the government’s budget cut, we have seen a drop of some 20 per cent in MICE enquiries.

“Furthermore, regional competition is intensifying, as Chinese MICE groups with bigger budgets now prefer other cities in South-east Asia.”

Observing a similar trend was Fanny Ho, general manager, APlus PR & Advertising, which handles business and consumer shows.

She said: “Chinese MICE groups with a few hundred to 1,000 pax were common last year. But since early this year, the number of such large groups (from government and private sectors) has dropped. In fact, we have not had any Chinese groups this year, with only a potential group that may come in May.”

Adding to the strain is the January opening of the 2,067-room Earth Tower at Sands Cotai Central.

Yiu revealed: “The (surge in room count) has created a price war in Macau. Many hotels, not just ours, have seen room rates drop from four to three digits.”

Best Western Hotel Taipa Macau has also seen rates going south. Director of sales, Fang Lei, however, remains positive. She said: “Rates were too high previously and that scared many visitors away. The current or lower rates will be more sustainable in the long run.”

Macanese hoteliers are not unduly worried, banking on the fact that the overall Chinese outbound segment is still booming.

Lei added that the novelty of Macau’s casinos would still lure the Chinese.

– Read more in TTG Show Daily – IT&CM China

Best Western takes core midscale brand to Cebu

By TTG Asia

April 19, 2013

BEST Western International is enlarging its presence in Cebu with a second hotel opening, hot on the heels of its debut property.

Located on Mactan off the coast of Cebu, Best Western Cebu Sand Bar Resort is a 58-room midscale hotel with facilities such as a freeform outdoor swimming pool, an entertainment centre and a playground.

The hotel also caters to business travellers and corporate groups with three meeting rooms, a 280m² ballroom and complimentary Internet throughout the premises.

Glenn de Souza, Best Western’s vice president of international operations – Asia & the Middle East, said: “Since we debuted in Cebu late last year with the Best Western Plus Lex Cebu Hotel (TTG Asia e-Daily, March 21, 2013), we have experienced strong demand, both from within the Philippines and elsewhere.”

Best Western Cebu Sand Bar Resort will become the seventh Best Western hotel in the Philippines, joining midscale Best Western hotels in Manila, Angeles City and Boracay, as well as upscale Best Western Plus hotels in Makati City and Cebu.

The chain plans to operate 11 hotels with almost 1,200 rooms in the country by end-2014, adding four more hotels, including two in Cebu.

Hong Kong Disneyland’s Mystic Point opens May 17

By TTG Asia

April 19, 2013

TRAVEL consultants in Asia will soon be invited to experience Mystic Point, the new themed land at Hong Kong Disneyland that brings together a trackless state-of-the-art ride as well as new characters such as the eccentric explorer, Lord Henry Mystic, and his monkey, Albert.

Set in a tropical forest, at the heart of Mystic Point is Lord Henry Mystic’s Victorian home known as Mystic Manor, where guests will be able to tour his private museum on the Mystic Magneto-Electric Carriage, which uses RFID tags and a wireless communication system to control the movement of 32 vehicles simultaneously.

There is also the Explorer’s Club Restaurant, serving up Asian and halal food, as well as The Archive Shop, where curiosities are available for purchase.

“By end of April we will be at full gear to kick off a series of trade launch events across Asia, inviting travel trade communities to a truly mysterious journey and introducing new business opportunities that Mystic Point will bring,” said Terruce Wang, vice president, sales and distribution marketing, Hong Kong Disneyland Resort.

Among the activities is a four-session online webinar series, offering an insider’s perspective of the innovative technology that has gone into developing this attraction.

Three exclusive preview days – May 7, 10 and 11 – have also been earmarked for the travel trade to immerse themselves in the full Mystic Point experience.

After the grand opening on May 17, trade marketing activities will continue across Asia, including in China, Taiwan and South Korea.

Mystic Point is the third and final chapter of the park’s expansion plan.

Tourist arrivals to Maldives on the upsurge

By Feizal Samath

April 19, 2013

HELPED by better air access, tourism in the Maldives is picking up this year, after a dismal first quarter in 2012 owing to political tensions.

Arrivals from China, the worst hit after president Mohamed Nasheed resigned last February, swelled in January-March 2013 to some 70,570 arrivals, up 51.2 per cent over the same period last year. China accounted for 24.1 per cent of total tourist arrivals to the Maldives in the quarter, remaining the largest source market for the Maldives.

Michelle Flake, contracting and marketing manager for Scaevola Travel Maldives, said the entry of Turkish Airlines last November had contributed to a rise in travellers from Eastern Europe – particularly Russia, Poland and the Czech Republic – as the airline provides a good connection in European hubs.

Currently flying to Malé five times a week, the carrier is planning to increase frequency to daily, she added.

With Korean Air’s new thrice-weekly flights from last month, the South Korean market is also starting to flourish, noted Viluxur Holidays Maldives managing director, Shafraz Fazley.

Adam Mohamed, CEO of state-owned Maldives Marketing & PR Corporation, said March arrivals saw 30 per cent year-on-year growth, while first-quarter growth was 14 per cent.

“All markets are doing well. Even the UK has seen a rise, even though marginal, while others from Europe are also doing well,” he said, adding that the Maldives should easily hit the one million mark this year.

Among other top growth markets were Turkey (up 138.4 per cent in the first quarter), Poland (up 68.1 per cent) and the US (up 36.5 per cent).

Nepal: a steady ascent

By Raini Hamdi

April 19, 2013

International arrivals are returning to this world heritage eco- and adventure tourism haven. Can Nepal reach new peaks? Raini Hamdi reports

Dwarika’s restoration workshop – the whole of Nepal is rebuilding itself

Nepal has shaken off the impact of the 1996-2006 ‘People’s War’, with international arrivals flocking back to the destination and more positive news that will further boost tourism figures.

The US lifted its travel advisory on Nepal last year, according to Jyoti Upadhyay, international sales & marketing manager of The Dwarika’s Group, which operates hotels and Kathmandu Travels & Tours.

AirAsia X, which started thrice-weekly services from Kuala Lumpur to Kathmandu on July 3 last year, stepped up the frequency to four-weekly last week (April 15). High-end luxury operator Abercrombie & Kent (A&K) has also started to come back with a few programmes in Nepal which it is promoting to various markets.

Last year, arrivals by air rose almost 10 per cent to 598,204 (Source: Immigration Office, Tribhuvan International Airport or TIA). Asia (not including South Asia) and Australia/New Zealand led with a 15.1 per cent growth each, followed by North America (10.4 per cent) and Europe (4.5 per cent).

Asians, in fact, are exploring Nepal. TIA’s February 2013 figures show 135 per cent growth in arrivals from China, 288 per cent from Malaysia and 112 per cent from Singapore.

AirAsia X’s CEO, Azran Osman-Rani, said: “Nepal is definitely regaining its popularity. Travellers are increasingly looking for alternative destinations, and Nepal has both the natural Himalayas for trekking, rafting, etc, and the deep culture of places such as Ubud (Bali) and Jogjakarta.”

“Increasing demand has encouraged us to increase frequency and we hope to increase it even further later,” added Azran, who noted an 80 per cent load factor for the Kathmandu service since it started. Leisure travellers form about 25 per cent of the traffic and, of this, 15 per cent are Malaysians and the rest Japanese, Koreans, Chinese and Australians.

“AirAsia X will continue to work closely with our travel and tourism partners in Nepal to enhance attractive packages for our guests to further explore Kathmandu’s heritage and natural attractions,” he said.

A current penchant among tourists to see preserved cultural attractions and be ‘close’ to a country makes Nepal, with its unique temples, stupas, villages and mountains, an ‘in’ place – if only it could get its infrastructure up to scratch.

The capital Kathmandu painfully reflects an economy trying to rebuild itself. Aside from many unfinished projects and roads, litter and pollution are a real problem.

“This is an opportunity to help the community back home through providing investment and employment where these are much needed…” – Mahanta (Monty) Shrestha, Owner Monty’s, which marks Best Western International’s entry into Kathmandu

Asked how A&K has done since returning to Nepal, A&K India managing director, Vikram Madhok, said: “Nepal certainly needs to upgrade all tourism-related product and civic infrastructure – hotels, vehicles, guides, small planes, etc – which suffered for several years with the tourism decline.”

Added Madhok: “Feedback from clients currently visiting Nepal is mixed. We will only be able to scale our numbers with high-end travellers once Nepal is truly ready. Only then will we include Nepal in main series linking North India and Nepal as we did 10 to 15 years ago.”

Marco Polo Reisen’s managing director, Holger Baldus, expressed similar sentiments.

“Nepal needs to work on its infrastructure. None of the Nepalese airports, not even the Kathmandu international airport, is equipped with ILS System. Fatal accidents are common in the domestic flight market, which is why we have stopped using any domestic flight in Nepal since a few years now. Unfortunately we don’t see any improvements.

“Outside the backpacker and trekking business, tourism in Nepal is currently reduced to a handful of destinations: Kathmandu Valley, Pokhara and Chitwan. The country definitely has much more to offer, but travel advisories on the political situation in Nepal, issued by various foreign offices, including Germany, limit our operations.”

Product investment, however, is returning, including efforts by Nepalese entrepreneurs abroad and locally. One such investor is Mahanta (Monty) Shrestha, chairman of Khukuri Beer UK, who is building his first hotel in Thamel, Kathmandu’s shopping and F&B district popular with tourists.

“This is an opportunity to help the community back home through providing investment and employment where these are much needed, in a beautiful top-end of the world,” Shrestha said.

The 60-room hotel, named Monty’s after the owner, is scheduled to open in the last quarter and will be a Best Western property.

“Best Western is the suitable brand for it because of its quality yet affordable image – there is a dire need for that level of hotels in developing countries,” said Shrestha. “This will be the first hotel of more to come. We hope to help (Nepal), in partnership with Best Western, although this project is more ‘Best Eastern’!”

The Dwarika’s Group, meanwhile, is building a luxury resort, Dwarika’s Resort Dhulikhel, just 45 minutes’ drive from the established Dwarika’s Hotel in Kathmandu. This will enable the group to combine a conservation experience with a luxurious spa and resort experience set amid Himalayan flora and fauna.

Dwarika’s Hotel Kathmandu

Dwarika’s Upadhyay said far from just a trekker’s wishlist or backpacker’s haven, Nepal had potential for high-end tourism.

“The baby-boomers are not that affected by the European debt crisis. Often, they are not able to trek, but are deeply interested in the culture and heritage of Nepal,” she said.

“Apart from our established markets – Germany, the UK, the US and Japan – we’ve been seeing more guests (at Dwarika’s Hotel Kathmandu) from Latin America. The rise of Bhutan is also helping, as Europeans often travel to Bhutan via Nepal.”

Nepal alone, she said, could satisfy sophisticated eco-minded tourists, if only overseas tour operators could be encouraged to go beyond the usual Nepal golden triangle of Kathmandu-Pokhara-Chitwan.

“Eighty per cent of tourists who are not trekking do this, but the beauty of Nepal lies in places in higher altitudes that predate tourism, such as Dolpo. The problem is, overseas tour operators themselves do not really understand the culture or there’s fear of the unknown, plus such places are expensive due to permits and high costs of helicopter transportation,” she said.

Meanwhile, for trekkers, a new tour, The Guerrilla Trek, was launched in October last year.

A two- to four-week hike that stretches across central and western Nepal, the trail hopes to draw in more foreigners as Nepal seeks to rebuild its economy. A journey through the heartland of post-conflict territory, the route passes through Myagdi, Rukum and Rolpa, spectacular districts with low population density at the epicentre of Nepal’s 10-year conflict and homeland to many revolutionaries.

Trekkers are able to see captivating natural scenery, diverse cultures, remnants of the war and become familiar with the recent history of Nepal.

The trail research is promoted by the Trekking Agencies Association of Nepal and Nepal Tourism Board.

The board is currently promoting Nepal as “the next-generation mountain destination for weekend breaks, adventure holidays and lifetime experiences for people who live in cosmopolitan cities and travel internationally”.

If stability continues and product/infrastructure investment picks up further, it could well live up to its new branding, Naturally Nepal, once is not enough.