SRI LANKA-based John Keells Holdings (JKH) is launching a new 240-room business hotel in Colombo, as part of its plans to restore the business travel segment in the capital.

JKH and construction firm Sanken Lanka are jointly setting up the three-star property, with the former due to manage the property.

“We are setting up a no-frills hotel for the business traveller,” said JKH deputy chairman Ajit Gunawardene, adding that Sri Lanka had a lot of catching up to do in the business travel accommodation sector.

Gunawardene said Colombo had only 3,200 rooms capable of hosting business travellers, compared to a destination like Kuala Lumpur, which has some 35,000 keys. “The demand for business rooms will grow, and JKH is looking at creating 1,000 rooms in the capital in this accommodation segment,” he said.

Although most of the hotels in Colombo were set up in the 1980s for business travellers, this travel segment subsequently dried up due to the civil war, which ended in 2009.

Shiromal Cooray, managing director of Jetwing Travels, said the demand for business hotels would grow. “We may soon see more no-frills hotels where business travellers are happy with a basic, comfortable room,” she said.

THE TAIWAN Tourism Bureau (TTB) has begun issuing fines this week to Taiwan FamilyMart and China Travel Service (Macao) for offering a visa service that violates several travel industry regulations.

The two companies launched on August 23 a jointly-run visa service for Taiwanese travellers to China, allowing them to extend their Taiwan Compatriot Entry Permits at any of FamilyMart’s 2,800 locations in Taiwan (TTG Asia e-Daily, August 29). FamilyMart collects applications and fees at its stores, and delivers them to China Travel Service for processing. Later, customers pick up their entry permits at the same store.

Taiwan-based travel agents immediately questioned the service’s legality and complained about its price, NT$499 (US$16.80) per application, roughly NT$200 less than a similar service provided by travel agents.

FamilyMart is not a licensed travel agent, and even though China Travel Service is, it is not allowed to process documents collected by a non-travel entity, according to Taiwan’s Regulations for the Administration of Travel Agents, which stipulates that “A travel agent may not establish a branch institution in a name other than that of the parent, nor may it allow partners or non-travel companies to operate a travel business under its name”.

TTB’s deputy director of hotel, travel and training, Alice Chen, said the service was deceptive. “China Travel Service does the document processing, but FamilyMart is the one that is promoting it. Consumers don’t know this,” she said.

TTB said it would levy a NT$90,000 fine against FamilyMart for each violation, and likewise a NT$50,000 fine against China Travel Service.

FamilyMart spokesperson, Sean Yang, said: “TTB called a meeting with us last week, and asked us to explain how our service does not violate the law.”

FamilyMart is expecting a formal warning letter from TTB based on that meeting, according to Yang. “After we receive this letter, we will discuss it with our lawyer and decide whether or not to continue the service,” he said.

By Glenn Smith

TOURISM Australia is taking the next few months to map out a 10-year strategic plan targeting the Indian market, which will focus on a number of topics including branding and distribution.

Speaking to TTG Asia e-Daily at PATA Travel Mart last week, Tourism Australia managing director, Andrew McEvoy, said the structure of the 10-year India plan would follow that of the board’s China 2020 Strategic Plan, which was launched in June 2010.

“We have been told that we are not active enough in our marketing in India, and that’s true, so branding is one of the key things the 10-year plan will look at,” McEvoy said.

“We will also increase our number of Aussie Specialist Agents in India. This year we had 2,500 agents in India signing up for the programme, but only 650 were qualified.”

McEvoy pointed out that India held great potential as a source market, with a 200 per cent growth in arrivals projected by 2020. India is expected to generate over 300,000 visitors and A$2.4 billion (US$2.5 billion) in tourism earnings for Australia within 10 years.

“India has shown strong growth despite limited direct services,” McEvoy said. “All flights from India to Australia are serviced through other ports such as Singapore and Kuala Lumpur, but Australian airports are very competitive and are keen to see new tails into our country.”

Currently, Qantas is the only carrier flying direct services from Mumbai to Brisbane, via Singapore.

MALAYSIA Airlines (MAS) Chairman, Md Nor Yusof, last Friday expressed disappointment about the threat of industrial action from the national carrier’s unions over its proposed collaboration with AirAsia (TTG Asia-eDaily, August 10).

In an internal circular to MAS employees, Md Nor, said: “I would like to clarify that we are not in a trade dispute in relation to the Comprehensive Collaboration Framework (CCF) which is a management, board and shareholder matter done in the best interests of the Company.”

According to Md Nor, MAS had had several engagements with the unions on the CCF. “Nonetheless, I have always placed the employees’ interest at the forefront of all business decisions. I have and will continue to constantly engage all employees,” Md Nor said.

“I am working tirelessly towards firming up the details of the collaboration and will announce them officially, subject to regulatory approvals, at the appropriate time,” he added.

The threat of industrial action had come last Thursday from employees belonging to Malaysia Airlines System Employees Union of Peninsular Malaysia (MASEU), Air Workers Union Sarawak (AWUS) and Air Transport Workers Union Sabah (ATWUS), which together represent more than 15,000 workers.

Warning that the national airline would lose out in the long run if it pulled out of the profitable low-cost sector, the unions said they would stage a picket if the deal between MAS and AirAsia went through.

By N. Nithiyananthan

THE INDONESIA Ministry of Culture and Tourism is holding the Sabang International Regatta (SIR) 2011 to promote Sabang as an international marine tourism destination.

Organised together with the Nanggroe Aceh Darussalam province and Sabang Municipal regional governments, as well as the Indonesia Sailing Association, the regatta will kick off in Phuket on September 12, followed by a rally to Langkawi, before racing to and around Sabang in Aceh till September 25.

Ministry of Culture and Tourism director general of destination development, Firmansyah Rahim, said: “This event is an initial step to attract international yachts to come and see Aceh for themselves. We would like Sabang to become an international marine destination, particularly for sailing, and are planning to make it one of the 18 entry points for sailing boats to Indonesia.”

Aceh vice governor, Muhammad Nazar, said: “The media has only been featuring Aceh on its conflicts and tsunami. These are over now. Aceh is very safe and our crime rate is (one of) the lowest (in the country). We would like this event to be a launch pad for the development of tourism, and we appeal to the central government for its sustainable support in the promotion.”

Mayor of Sabang, Munawar Liza Zainal, said: “Sabang is a duty-free port and the deep sea enables big cruise ships to berth.”

“It takes less than an hour from Langkawi and Phuket to Subang, so there is big potential to develop traffic from these neighbours, which are already popular yachting destinations,” he added.

International tourists to Subang mostly come from The Netherlands, the US, and Malaysia.

At press time, 26 ships from 10 countries have registered their intention to participate in the regatta.

INDONESIA has extended its 30-day visa-free entry facility to travellers holding Cambodia, Laos and Myanmar passports.

This means that nationals from all ASEAN member countries can now avail of the visa-free travel arrangements to Indonesia. Visa-on-arrival facilities were previously available to travellers from Cambodia and Laos, while Myanmar passport holders needed to apply for visas in advance.

Indonesia ambassador for ASEAN Ngurah Swajaya was quoted by Bisnis Indonesia daily as saying: “We have visa exception agreements with all ASEAN member countries, (but) the bilateral arrangements with Cambodia, Laos and Myanmar have just been finalised.”

Indonesia grants visa-free entry to travellers from 15 source markets, including Brunei Darussalam, Cambodia, Laos, Malaysia, Myanmar, Singapore, The Philippines, Thailand, Vietnam, Chile, Ecuador, Hong Kong, Macau, Morocco and Peru.

US-BASED The Africa Group World Travellers wants to expand its Asian product range.

President and CEO Beryl Dorsett said India appealed most to her clients, due to its rich history and culture. The company has a group of 40 pax to South India in November.

Dorsett is sourcing for groundhandlers, hotels and attractions in Asia.