TTG Asia
Asia/Singapore Thursday, 2nd April 2026
Page 2498

Asia’s hotel transaction volume tumbled 49 per cent in 2012

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HOTEL transaction volume in Asia in 2012 fell to almost half of 2011’s, dropping from US$3.7 billion to US$1.9 billion, dragging down the global total.

Calling these figures a “big surprise” at HICAP Update, Mike Batchelor, managing director, investment sales, Jones Lang LaSalle’s (JLL) Hotels & Hospitality Group, pointed out that the main drops were from Singapore and China, with possible reasons being the “cost of real estate and high pricing that needs to be paid” to enter these markets. He revealed that the hotspots last year were Japan, Hong Kong and China, with shares of 23 per cent, 20 per cent and 15 per cent respectively.

Batchelor added that Asia remains a small market for hotel transaction volume compared to other regions – it is less than a tenth of the Americas’.

Hotel transaction volume in the Americas grew seven per cent from US$16.3 billion to US$17.5 billion, and Australia expanded eight per cent from US$1.3 billion to US$1.4 billion. Europe, the Middle East and Africa registered an eight per cent decline from US$11.9 billion to US$11 billion.

Globally, hotel transaction volume slid by five per cent to total US$31.8 billion in 2012. However, this is predicted to inch upwards by 3.8 per cent this year, touching US$33 billion.

Responding to the drop in Asia, Outrigger Hotels and Resorts vice president, development and projects, Asia-Pacific, Michael Cowan, said there could have been little impetus to sell in 2012, with family-owned businesses not in financial difficulty and no distressed assets.

Park Hotel Group CEO, Allen Law, noted that while the market had stabilised last year, he was “seeing a lot of action” in terms of investment leads across the region in 2013.

IATA pokes holes in Europe’s revision to passenger rights

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THE International Air Transport Association (IATA) has expressed “disappointment” over the European Commission’s (EC) proposed changes to its passenger rights legislation.

Under the proposals put forward by the EC, passengers have to be reimbursed after a five-hour delay for all intra-EU flights and short international flights of less than 3,500km; after nine hours for flights of less than 6,000km; and after 12 hours for flights of more than 6,000km. The same applies to passengers who miss a connecting flight because their first flight was late.

Airlines are required to offer alternative routes via other carriers or transport methods where it cannot provide rerouting on its own services within 12 hours.

IATA highlighted three areas of concern in a statement:

  • The new proposal regarding compensation for passengers who miss a connecting flight, which puts the burden for compensation on the operator of the first flight, would amount to a breach of the Montreal Convention and discourage European carriers from offering connections to longhaul destinations. They would also be impossible to enforce for journeys with connecting flights outside Europe.
  • Diversions are treated the same way as cancellations by mandating significant compensation to passengers, although most diversions are made for safety reasons. Tony Tyler, director general and CEO, IATA, said: “It is perverse for regulators to second guess and potentially impose penalties for a captain’s decision made in the interest of the health and safety of passengers and crew.”
  • There is no limit on cost or class of service when offering passengers alternative routes of transport given that an airline has no seats on its own services. “If your Bic pen doesn’t work, you don’t expect to get a Mont Blanc as compensation,” said Tyler.

The new proposals are subject to the approval of all EU member states and the European parliament, and are due to come into effect in 2015, reported the UK’s The Telegraph.

Hotels should tread carefully in Myanmar ventures

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AS HOTELS clamour for a slice of Myanmar’s real estate, experts warn that those keen to invest should do so with their eyes wide open.

Benjamin Hirasawa, senior consultant at DLA Piper, a law firm specialising in hospitality and leisure, said it would be wise to go in with “patience and education”.

“There are a lot of people anxious to get into the Myanmar market now, but they should know that it is still a challenge inside. Many owners and operators will face problems if they do not understand what their investment really means, for instance how to get their money in and out of the country,” he told TTG Asia e-Daily.

For example, he said the Central Bank of Myanmar has “routinely attempted to limit the outflow of the already low levels of foreign currency reserves”.

John Koldowski, special adviser to the CEO, PATA, also cautioned it may be “too early” for investors to enter the market as there were still issues like telecommunications and infrastructure that have yet to be ironed out.

Myanmar’s shift to an open economy in recent years and room crunch are sparking a gold rush in its tourism sector (TTG Asia e-Daily, January 25, 2013). Hotel chains such as Accor, Best Western International and Hilton Worldwide have announced new properties for Myanmar (TTG Asia e-Daily, March 12, 2013).

Hirasawa said: “Myanmar offers tremendous potential, but before entering the market, it is wise to conduct thorough due diligence of all hotel developments to understand the risks involved.”

He highly recommended that owners and operators consider employing a local agent in view of domestic complexities. “It will be useful and will surely make a difference to have someone who knows the place and language well.”

MakeMyTrip offers insurance against credit card, smartphone loss

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MAKEMYTRIP has partnered OneAssist to offer customers credit card and smartphone protection in case of loss or theft, becoming the first Indian travel company to provide such a service.

Customers protected by OneAssist plans will have all activities on the lost cards and smartphone blocked up to seven days prior to the report made in order to prevent data misuse and financial loss. OneAssist will also settle hotels bills and arrange for a return ticket if required.

Travellers only need to call one number instead of contacting individual banks when they lose their credit cards, explained Rajnish Kapur, chief information officer and head – customer service, MakeMyTrip.

In the event of passport loss, OneAssist will support the customer with necessary documentation and foreign language translation where needed.

MakeMyTrip customers can purchase OneAssist protection while booking their tickets or holiday packages online. They are currently available to international travellers and HDFC Bank credit card holders, and will soon be offered to domestic travellers.

Sonal Swamy, director, Syrisa Travels, said: “The loss of (one’s) credit cards, mobile phone and passport can become a nightmare for tourists travelling abroad. OneAssist plans will provide the immediate and permanent relief that is crucial in such situations.”

Singapore’s tourism growth slows

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SINGAPORE continued to see an upward march in visitor numbers and tourism receipts for 2012, but this has dropped to single-digit growth.

Some 14.4 million tourists arrived in Singapore last year, a nine per cent increase over 2011, while tourism receipts recorded S$23 billion (US$18.4 billion), a mere 3.6 per cent rise. In 2011, visitor arrivals and tourism receipts grew by 13 per cent and 17 per cent respectively (TTG Asia tourism data, February 7, 2012).

The Singapore Tourism Board (STB) has forecast 14.8-15.5 million arrivals and tourism receipts of S$23.5-24.5 billion for 2013.

Addressing Singapore’s parliament, second minister for trade and industry, S Iswaran, said arrivals could not grow “indefinitely and sustainably” at the rates of recent years”. “Domestically, our land and manpower constraints mean we need to find new ways to do more with less. The next phase of tourism growth would thus have to come from increasing the yield through visitor spend, rather than just visitor numbers.”

He said: “Externally, the rise in Asian tourism over the coming years presents a window of opportunity for us to attract discerning travellers who seek out differentiated and value-added experiences.”

Iswaran pointed out that there was a need for strong content in the tourism sector to drive the push for high-yield tourists, adding that STB would establish a new Kickstart Fund with an initial funding of S$5 million to support lifestyle concepts with strong tourism potential and scalability, including pop-up entertainment, dining, retail or arts events.

Luxury Tours & Travel Singapore’s director, Michael Lee, was not optimistic about 2013’s prospects. “The tourism outlook in Singapore this year is not good because prices are rising everywhere. For example, hotel prices here cannot attract tourists because they are so high. Singapore is the most expensive city among neighbouring countries and this will make us lose out,” he said.

Nevertheless, Lee added: “Hopefully our new attractions here can bring (tourists) in, but we must make sure there are good service standards too.”

Additional reporting by Lee Pei Qi

Christchurch’s hotels bounce back

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FOUR hotels in Christchurch are scheduled to reopen by year-end after repairing damage wrought by the 2011 earthquake, bringing the number of hotels in the city’s three- and four-star segments to 19.

Heritage Christchurch’s Old Government Building will open its doors in May while Rendezvous Hotel Christchurch will welcome guests in the second quarter. Novotel Christchurch will resume operations in September and Latimer Hotel Christchurch in late 2013, said Tim Hunter, CEO, Christchurch & Canterbury Tourism.

Panorama Tours Malaysia’s head of outbound tours, Nick Chong, said having the refreshed products would appeal to guests, adding that he is selling sightseeing tours combining Christchurch and Queenstown as part of an 11-day itinerary combining the North and South Islands.

Hunter said that Christchurch and Canterbury Tourism were hammering out details of a collaboration with Singapore Airlines to get more family traffic for this winter season. The airline runs daily Singapore-Christchurch flights.

Christchurch International Airport has also commited to help fund marketing efforts to boost winter holiday traffic to the South Island of New Zealand.

Philippines sorely lacking in mid-tier supply

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THE Philippines has the largest pipeline of luxury and upper upscale rooms in Asia-Pacific after China, but industry watchers say what is needed is more branded accommodation that caters to its swelling domestic market.

According to data presented yesterday by STR Global area director – Asia, Jonas Ogren, about 50 per cent of the Philippines’ pipeline is in luxury and upper upscale, 30 per cent in upscale, 15 per cent in midscale and the rest in economy. This contrasts with its South-east Asian neighbours, whose pipelines of upscale and midscale rooms are as high as almost 70 per cent. The economy segment has the smallest pipeline across all countries.

Highlighting that the Philippines needed more supply in the middle, Narzalina Z Lim, president of Asia-Pacific Projects, a tourism and hospitality consulting company, said the country had about 35 million domestic travellers looking for affordable accommodation, with the figure growing by eight per cent every year and expected to hit 56 million by 2016.

The former tourism secretary of the Philippines said that since the government was in the midst of upgrading secondary airports to encourage direct flights from the region, hoteliers scouting for investment opportunities should consider locations “within an hour’s drive of these secondary gateways”.

These include hotspots such as Palawan, Cebu, Bohol and Davao, she said.

As for the popularity of China and India for future properties, hotel chiefs said these continued to be key markets, despite their challenges.

As of 2012, Asia-Pacific had 458,000 rooms in the pipeline, with the bulk headed for China (58 per cent), India (16 per cent) and Indonesia (seven per cent).

Speaking to TTG Asia e-Daily, Simon Cooper, president & managing director, Marriott International Asia-Pacific, pointed out that India’s lack of infrastructure was an issue.

“When you build a hotel, you need to build your own treatment plants, you can’t rely on 24-hour electricity and energy costs are also high.”

InterContinental Hotels Group chief executive, Asia, Middle East and Africa, Jan Smits, added that “developing talent” was his biggest concern, explaining that the company was investing a huge proportion of its resources in this area.

When asked if he was worried about last year’s negative RevPAR growth in China (-1.7 per cent) and India (-5.1 per cent), Smits said: “It takes a little time for demand and supply to catch up.”

In India, for instance, he explained that it was coming from a very low base. “It might have had one branded hotel in a city, then suddenly two or three…with such a big population, a huge middle class and 750 million domestic travellers, it’s all there.”

Thailand saw the highest RevPAR growth in 2012 (15.4 per cent), followed by Japan (13.2 per cent) and the Maldives (10.9 per cent). Singapore, Indonesia, Malaysia, the Philippines, Australia, South Korea, Hong Kong and Taiwan all posted single-digit growth. Vietnam, however, saw negative growth of 2.7 per cent.

Additional reporting by Lee Pei Qi

NATAS kicks off accreditation programme

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ON MARCH 14, the National Association of Travel Agents Singapore (NATAS) officially launched a new accreditation programme, which will recognise individual travel consultants for their abilities (TTG Asia e-Daily, February 22, 2013).

Travel consultants who apply to be accredited will be assessed by their direct superiors and the NATAS Accreditation Panel on criteria such as academic qualifications, relevant skillsets, work experience, job competencies and customer testimonials. They will also have to undertake a self-assessment.

Tourism professionals who complete the process and meet the criteria outlined by the programme will be conferred one of three titles: Accredited Travel Associate, Accredited Travel Professional and Senior Accredited Travel Professional. The three different titles are meant to reflect the travel consultant’s work experience and other relevant skills and qualifications.

Furthermore, accredited travel consultants will receive an official NATAS accreditation logo and photo card as proof of their professional status.

Hilton names Dominic Sherry head of sales for Asia-Pacific

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NEW Zealander Dominic Sherry will lead Hilton Worldwide’s sales force in Asia-Pacific as its new head of sales for the region, based in Singapore.

Sherry joins Hilton from Marriott International, where he has served in key leadership positions since 1992 including regional vice president, sales & marketing for Asia-Pacific.

He brings 21 years of experience spanning the UK, Ireland, Scandinavia, Australia and New Zealand.

Grand Hyatt Hong Kong spices up meeting breaks with activity deals

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GRAND Hyatt Hong Kong has introduced two new activities that will bring a touch of entertainment to meetings at the hotel.

Aimed at keeping meeting delegates refreshed and alert throughout the event, the Plateau Spa Rejuvenating Break offers a neck and shoulder massage or hand massage. Meeting planners who take this option will see the coffee break area transformed into a relaxing spa lounge, with aromatic candles and soothing music to set the ambience.

The Plateau Spa Rejuvenating Break is available at the supplement rate of HK$880 (US$113.40) for a 20-minute session, including two skilled therapists working in five-minute blocks.

The Wine Tasting Session aims to bond team-mates through a fun and educational wine appreciation activity led by the hotel’s own sommelier and wine ambassadors.

Held during meeting breaks, this 20-mimute activity includes two selected wines and is available at the supplement rate of HK$800.

All rates are subjected to a 10 per cent tax, and a minimum of six to a maximum of 12 guests is allowed for each activity.