Nay to proposed tourism tax in Macau

September 27, 2019

The Macanese trade is casting doubt on the effectiveness of the government’s proposal to impose a tourist tax to tackle overtourism, instead seeing other ways to manage congestion in the city.

Cooper Zhang, director of inbound department at CITS (Macau), is worried that the proposed tax would undermine travellers’ desire to visit Macau. “There are a large number of same-day travellers to Macau who spend money and support Macau economy,” he said.

Inbound trade players are worried that the proposed tourism tax would make Macau less of an attractive destination to foreign travellers

Also opposing the proposed tax, Top Holidays – P & E International Travel’s general manager Paul Wong explained: “This violates what Macau has been doing – welcoming visitors with friendly hospitality – and may send an unpleasant signal to tourists.

“Overseas countries like Japan reinvest the tax income to improve domestic infrastructure rather than increasing income, but Macau’s resources are sufficient and I don’t see the need to copy the practice,” he added.

“The Chinese government is encouraging more integration, i.e. multi-destination travel, within the Greater Bay Area but the tax means a barrier,” Wong said, questioning too how the government would implement the collection of tax.

The city’s hoteliers are concerned that the proposed tax would impact the hospitality sector, which is already facing headwinds amid heightened trade tensions.

“The US-China trade conflict led to a decrease in visitors’ average spending. The tourist tax would directly affect low- to mid-tier travellers,” Macau Hotel S, general manager, Charles Huang opined.

“Five-star hotels are competing with three-star properties by offering discounted rates on weekdays. Therefore, traffic flows may be affected and lead to more pressure for hotels below three-star categories,” he added.

Huang does not think that Macau is suffering from overtourism. “In fact, Macau’s problem is not (overtourism) but that the government only focuses on traditional attractions.

“There are numerous ways to tackle overcrowding. For instance, the government could open up F&B in the Inner Harbour area by revitalising the many abandoned piers,” he proposed.

The Macao Government Tourism Office (MGTO) in mid-2019 conducted a feasibility study on the implementation of a tourist tax by surveying residents, visitors and travel trade members, with preliminary results showing varying opinions among the different stakeholders.

The overall report is targeted to be finalised by the end of this year, which MGTO will then submit the findings to the SAR government for further consideration and action.

India gains ground as key market for the Maldives

By Feizal Samath

September 27, 2019

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A combination of several positive factors including endorsement from Bollywood celebrities, growing air connectivity between the two countries, and aggressive promotion, has led to a surge in Indian arrivals to the Maldives, culminating in the powerful South Asian neighbour becoming its second largest source market.

While China reigns as the Maldives’ top source market, India in June overtook Italy as the second largest source to record 82,140 arrivals in 1H2019, compared to 41,082 in the same 2018 period and reflecting a near 100 per cent increase year-on-year from 90,472 arrivals for the whole of 2018.

India has risen to become the second largest source market for the Maldives, on the back of positive factors such as increasing affordable hotel supply and better air connectivity between the two countries

According to Thoyyib Mohamed, managing director of the Maldives Marketing and PR Corporation – the country’s main state tourism promotion agency – the appointment of the new government in the Maldives has brought about the launch of aggressive destination promotion campaigns in India and elsewhere.

As well, the commencement of new services from Indian carriers, IndiGo and GoAir, is another positive factor driving the spike in arrivals from the Indian market, he said, adding to existing scheduled flights to the Maldives operated by major airlines such as Air India and SpiceJet.

The country’s tourism marketing budget has tripled to US$6.7 million in 2019 from $2.2 million in 2018, following calls by the industry for greater destination promotion given the proliferation of new resorts opening in the past 18 months.

Dillip Rajakarier, CEO of Minor Hotel Group, which owns the Anantara and Niyama resorts in the Maldives, believes the increase in numbers from India is driven by increased air connectivity, which enhances the Maldives’ value proposition to budget travellers attracted by the growing room supply in the three- to four-star categories as well as local guesthouses.

“At the luxury end of the market we have also seen significant increases of 26 per cent in guests from India,” Rajakarier said.

A current major trend attracting more Indians to the Maldives, according to Andrew Ashmore, chief commercial officer at Coco Collection Hotels & Resorts/Sunland Hotels, is Indian travellers wanting to emulate Bollywood stars in their social media sharing of holidays in the Maldives.

Furthermore, there is also growing spending power among the Indian middle classes spending power, he observed.

Malaysia eyes inbound growth from Central Asia

By S Puvaneswary

September 27, 2019

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Tourism Malaysia has outlined concrete plans – which include improving air links and building destination awareness – to grow inbound traffic from Kazakhstan, as the Central Asian country was among the fastest growing tourist source markets for Malaysia in 2018.

Arrivals from Kazakhstan surged 33.2 per cent from the corresponding period in 2018, from 6,385 tourists to 8,503 tourists. The length of stay of Kazakh tourists also increased by two nights over 2017 to 8.3 nights in 2018, while whole per capita expenditure grew 4.5 per cent in 2018 compared with the preceding year.

Shopping is a main drawcard for many Kazakh tourists to Malaysia

To improve the country’s accessibility, Tourism Malaysia is leveraging its joint international tourism development programme with Malaysia Airports, which provides cash incentives to attract more Central Asia Airlines to fly direct, as well as charter flights, to Malaysia.

Tourism Malaysia’s director-general, Musa Yusof, elaborated: “Our collaboration with Kompas Tour late last year resulted in three charter flights by Kazakhstan’s Sunday Airlines for the Almaty-Langkawi-Almaty sector in December 2018 and January 2019.”

He added that the NTO is in the midst of discussions with a few other airlines from Central Asia about the possibility of mounting more charter flights for the coming winter season.

Direct connections between the two countries are currently limited to Air Astana’s thrice-weekly flights between Almaty and Kuala Lumpur.

Meanwhile, to further increase per diem expenditure of tourists from Kazakhstan which averaged about RM534 (US$128) per person in 2018, Tourism Malaysia will be promoting multiple Malaysian destinations and encouraging expenditure on activities such as shopping.

Musa shared: “Currently, travellers from Kazakhstan prefer to stay at a beach destination for a few days before returning home. We would like to develop tour packages that combine multiple beach destinations and city attractions to encourage longer stays and higher expenditure. For example, Langkawi and Penang or Kuala Lumpur and Kota Kinabalu.”

Shopping also is a key element for this market, as travellers from Kazakhstan “love to buy electronic items and gadgets”, Musa revealed.

In addition to exhibiting at the recent PATA Travel Mart in Nur-sultan, Tourism Malaysia will be participating in the Tashkent International Travel Fair 2019 in November, and Kazakhstan International Travel Fair 2020 in April 2020 to promote Malaysia.

“I believe there will be many opportunities as well for us to explore possible collaborations with attendees such as tour operators from CIS countries to promote Visit Malaysia 2020 in tactical campaigns.”

Aside from Kazakhstan, the rest of Central Asia are emerging inbound source markets for Malaysia and have potential for growth.

Musa noted: “Our consistent marketing efforts and collaboration with airlines and tour operators in Kazakhstan has proven to be fruitful, resulting in strong growth in the market. We hope to continue the momentum and increase our marketing activities in the surrounding market areas.”

Dusit to open second Nepal hotel in Kathmandu

By TTG Asia

September 27, 2019

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Thailand’s Dusit International has signed an agreement with Hotel Lhasa International to develop and operate Dusit Princess Kathmandu, Nepal, which is set to open in 3Q2020.

Operating under Dusit’s upper-midscale Dusit Princess brand, the new 108-key hotel will be located in the capital’s Lazimpat neighbourhood.

(From left) Dusit International’s Lim Boon Kwee and Suphajee Suthumpun, together with Hotel Lhasa International’s Dorje Gyaltsen Lama and Tenzin Zoepa Lama, officiated the deal in Bangkok

Hotel facilities will include an outdoor swimming pool and pool bar, a rooftop lounge-bar, a fitness centre, a spa, and meeting facilities. An all-day dining restaurant will serve daily buffet breakfast plus a variety of international and local cuisines.

Dusit Princess Kathmandu, Nepal is the second property Dusit International has signed to operate in Nepal. Dusit Thani Himalayan Resort & Spa, a luxury mountaintop resort in Nepal’s central region, is slated to open in 1Q2021 under a hotel management agreement.

New hotels: Hard Rock Hotel Maldives, Holiday Inn & Suites Saigon Airport, and more

By TTG Asia

September 27, 2019

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Hard Rock Hotel Maldives
The Hard Rock brand has made its debut in the Maldives with the opening of the Hard Rock Hotel Maldives, located within the Emboodhoo Lagoon. The 178 keys comprise family suites, beach villas, overwater villas and overwater pool villas; the largest of which is the 460m² Rock Star Villa sporting a private boat jetty and its own infinity pool.

A full range of facilities are available, such as Body Rock fitness centre, Rock Spa, Rock Shop, Hard Rock Roxity Kids Club and Teen Spirit Club. Dining options include all-day restaurant Sessions, as well as The Elephant and The Butterfly presents Latin American-inspired cuisine. There is also a Hard Rock Cafe at Crossroads Maldives, of which the property is part of.

Holiday Inn & Suites Saigon Airport, Vietnam
The first Holiday Inn-branded hotel in the country features 350 rooms, including 100 suites, alongside facilities like a 50m-long swimming pool, 24-hour gym, the Manja Manja Restaurant, and Déli Café and Lobby Lounge. Function spaces within the property include the Song Saigon Ballroom designed to welcome up to 600 guests for banquets, and four additional function rooms that can be combined to seat a further 270 guests.

ibis Styles East Perth, Australia
The 18-storey ibis Styles East Perth has added 252 guestrooms to city’s hotel supply. Each room includes free Wi-Fi, Chrome Cast, USB and HDMI connectivity and USB charging facilities; and families can avail inter-connecting rooms available with bunk beds – designed with children in mind. The Eastside Social Bar and Restaurant offers a super-food geared menu, while other hotel amenities include a 24-hour gymnasium, high-tech Urban Offices and a co-working space for business travellers.

Conrad Shenyang, China
Conrad Shenyang is perched on the top of the city’s tallest building, the Forum 66. There are 315 rooms including 37 suites, with generous space starting at 51m²in size. The property’s leisure amenities include a gym, heated indoor pool and whirlpool, and a wellness gallery. Event planners may avail the nearly 2,000m² of meeting space which can accommodate up to 1,520 guests in total. There are also six F&B options, ranging from the speciality grill restaurant Link, to the all-day-dining Archive serving both a la carte options and an Asian and Western buffet.

Avani Sukhumvit Bangkok, Thailand
Situated atop a major retail complex in the On Nut neighbourhood is Avani’s latest opening. The 382-key property offers facilities like the all-day diner Greenhouse, an AvaniFit gym, AvaniSpa, as well as an outdoor pool and a pool bar. There are also several function spaces, where the largest, Grand Chambray Ballroom, can accommodate up to 300 pax banquet-style.

Master plan to reshape Singapore’s Sentosa, Brani islands revealed

By TTG Asia

September 26, 2019

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Sentosa-Brani-Master-Plan-1 — Artist’s impression featuring a bird’s eye view of the developments on Sentosa and Pulau Brani, under the Sentosa-Brani Master Plan

Sentosa Development Corporation (SDC) has unveiled a comprehensive master plan aimed at redeveloping the Sentosa and Pulau Brani islands into “a game-changing leisure and tourism destination” in Singapore, as part of the upcoming Greater Southern Waterfront precinct announced earlier this year.

The Sentosa-Brani Master Plan will be implemented in phases over the coming two to three decades, which will see the introduction of world-class attractions and new spaces and concepts, including rejuvenated beaches and expanded nature and heritage trails.

Artist’s impressions of Sentosa-Brani Master Plan & Sentosa Sensoryscape

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The redeveloped islands will feature five zones – each delivering unique experiences, with the zones progressively taking on a more leisurely character as guests travel farther from the city into the islands: Vibrant Cluster, Island Heart, Waterfront, Ridgeline, and Beachfront.

Set to begin construction in 4Q2019 is Sentosa Sensoryscape, the first milestone project scheduled for completion in 2022. The new 30,000m² Sentosa Sensoryscape – which is about the size of 5.5 football fields – will link Resorts World Sentosa in the north to the island’s beaches in the south through a multi-sensory experience, replacing the existing pedestrian thoroughfare.

Sentosa Sensoryscape will also feature a series of vessel-like structures, measuring some 25m wide and 13m tall. Each of these will be framed by unique architectural features, and is set to pique and amplify one of the five senses through various elements such as polyphonic water features, mist, as well as fragrant flowers and plant species with unique scents.

The redeveloped precinct will incorporate universal design principles to ensure easy access for all guests, as well as feature breakout spaces and expanded vistas through new photo and lookout points. All of these features are designed to enhance the overall experience of guests strolling through the island in the day or night.

“The Sentosa-Brani Master Plan is one of our tourism developments to position Singapore as a leading destination for the next few decades. Sentosa Sensoryscape is the first project under this Master Plan. It will complement the expansion of Resorts World Sentosa and subsequent infrastructure enhancements on Sentosa and Pulau Brani,” said senior minister of state for trade and industry and education, Chee Hong Tat.

“Our tourism industry is doing well and still has plenty of scope for further growth and rejuvenation. It is one of our economic engines that can continue to create many good jobs for Singaporeans.”

At PHIST, hospitality sector sees sustainability as key to future growth

By Marissa Carruthers

September 26, 2019

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The travel industry needs to adopt sustainability measures that meet the growing demands of eco-conscious travellers to drive business into the future.

At the second edition of PHIST (Phuket Hotels for Islands Sustaining Tourism) conference, which took place this week, industry leaders said that introducing sustainable measures to operations is no longer an option if businesses want to thrive in the future.

Industry leaders at the recent PHIST conference said that sustainability is key to future growth

Jeannie Kwok, Hilton’s director of corporate responsibility, said: “The next generation are passionate about sustainability and simply don’t want to stay somewhere full of plastic. They have the future spending power and they are making demands.”

The tourism industry’s sustainability is a key component that drives decision-making for the next generation, and businesses who fail to embrace it will lose out.

STR Global’s Jesper Palmqvist: Sustainability no longer an option in light of growing number of eco-tourists

Jesper Palmqvist, STR Global’s area director for Asia-Pacific, said: “We can see travellers and consumers are looking at sustainability more as a factor when making decisions about which destination or resort to stay at. It is no longer a choice.”

The costs involved and lowering profit margins are often seen as barriers deterring businesses from investing in environmentally-friendly alternatives and sustainable initiatives.

Mandarin Oriental Bangkok’s hotel manager Frank Droin said: “It can be off-putting investing in changing plastic to something more expensive, but it’s not just about generating revenue, it’s about saving costs.”

Six Senses’ sustainability and quality assurance manager Pimjai Doungnate said that the hotel management company saves “significant costs” every year from its water and waste management programmes, composting and energy conservation measures.

“If you get it right, you can save a lot of money on operational costs,” she said, adding that innovative initiatives can also double up as marketing tools to capture business from eco-savvy consumers.

Drion said that hotel owners who fail to invest in sustainable initiatives tend to lose out in the long run.

“To those owners who don’t want to make this investment, it’s only a matter of time before people don’t want to come to your hotel because you’re still using plastic bottles of shampoo or plastic water bottles in your limousines,” he said.

APAC leads global air travel growth in 2019: ForwardKeys

By TTG Asia

September 26, 2019

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International air travel is booming due to stable economic growth worldwide, relatively moderate oil prices and reform of visa regulations, a report by ForwardKeys found.

The report showed that for the first eight months of 2019 (January to August), international departures were up 4.9% from the same period last year. Even more positively, bookings for travel in the following three months (September to November) are currently 7.6% ahead of where they were at the end of August 2018.

International departures in the first eight months of 2019 were up 7.9%, with APAC leading the growth: ForwardKeys

Olivier Ponti, vice president insights, ForwardKeys, said: “2019 has been, and is set to become, another exceptionally good year for travel and tourism, worldwide. That is good news because travel and tourism is an increasingly important driver of export revenue and general prosperity globally. What I find particularly notable is the resilience of the industry in the face of several potentially adverse events such as Brexit, the China-US trade war, and political unrest in Hong Kong and the Middle East.”

ForwardKeys attributes the favourable report to stable economic growth worldwide, relatively moderate oil prices and reform of visa regulations. Throughout this year, the IMF has been forecasting that global growth in 2019 would be above 3%. Airlines have responded by increasing capacity, most notably between Africa and North America, which is up 17.9%.

Despite the recent attack on Saudi processing facilities, the oil price is still below its peak this year and well below the peak in 2018. A low oil price is helpful to the world economy as a whole, but it benefits aviation disproportionately, as oil makes up at least a fifth of the cost of a typical flight.

Also, in the last couple of years, there have been numerous relaxations in visa requirements by different countries, which have contributed to making travel easier.

From a geographical perspective, the Asia-Pacific region has been leading the way. International departures in the first eight months of 2019 were up 7.9%. In second place is Africa, with departures from the period of January to August up 6.0%. The US and Europe are in the third and fourth places, registering growth through August at 4.6% and 4.5%, respectively. The region of the world which has been struggling is the Middle East, with international departures from January to August down 1.7%.

The growth highlights in the first eight months have been from Asia-Pacific to Europe, up 10.4%; from Africa to the US, up 10.1% and from Europe to the Middle East, up 9.7%. The driving factors behind these trends have been the strong Chinese outbound market, aggressive expansion by Ethiopian Airlines which increased the frequency of its flights to New York, and a continued recovery in tourism to Egypt, which was badly damaged by terrorism incidents in 2015.

Looking ahead at the upcoming three-month period of September to November, Africa is leading the way, with forward bookings 9.8% ahead of where they were at the end of August last year. Europe is in second place, with forward bookings 8.3% ahead. It is followed by Asia-Pacific and the US, with forward bookings ahead 7.6% and 6.0%, respectively. The Middle East is the laggard, where forward bookings are ahead 2.9%.

The most promising trends in bookings for future travel over the September to November period are from the US to the Middle East, ahead 18.4%; from Europe to the Middle East, ahead 14.2%; and from Africa to the UK, ahead 15.2%. The driving factors are the recovery of Egypt and Ethiopian Airlines further developing its seating capacity.

Ponti concluded: “Looking ahead, I see two counterbalancing indicators. Forward bookings are very positive but geopolitical events remain a major concern.”

VLeisure rolls out credit service to offer agents greater financial control

By TTG Asia

September 26, 2019

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VLeisure, a B2B global travel network platform, has launched a new credit service that claims to empower travel agents by allowing them to have greater financial control and drive more sales for their business.

Using VLeisure credit, agencies will be able to buy products from VLeisure’s portfolio of hotels, airline tickets and travel insurance through the company’s latest payment system. Credit members will have access to a virtual card which provides immediate credit to buy products and services from the VLeisure global marketplace.

VLeisure’s CEO Phan Le (above) said that the company’s new credit service offers agents greater control

Funds are managed seamlessly using e-wallet, with a choice of flexible repayment options. The VLeisure credit service will free up agency capital, enabling them to finance other parts of the business, such as marketing and sales.

VLeisure’s CEO Phan Le said: “The travel ecosystem traditionally operates on a book now, pay now basis. This is a fixed system which does not offer any flexibility for agents. Smaller agents often have to shift funds around to finance client orders, which means that other parts of the business, such as sales and marketing, are often underfunded. By providing credit at times when they need it most, VLeisure is providing agencies with greater control – fulfilling clients’ orders while at the same time focusing on business growth.”

VLeisure credit includes a loyalty programme where members can accumulate points for special deals and new destinations.

Marriott embarks on major expansion drive in the Philippines

By TTG Asia

September 26, 2019

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Marriott International expects to more than triple its portfolio in the Philippines within the next five years and roll out five new brands including The Ritz-Carlton, Element and Westin.

With four hotels currently open in the Philippines, Marriott International expects to open 14 more properties by end 2024, which would add more than 3,700 new rooms to its portfolio.

After the recent opening of Marriott’s first property in the Philippines, Sheraton Manila Hotel (above), the hotel chain expects to more than triple its portfolio in the country within the next five years

Currently operating in three destinations, Marriott International during the same period expects to debut in five new destinations – Caticlan, Cebu, Davao, Mactan and Palawan – as hotel owners and developers build new properties and convert existing ones to its brands.

The opening of the 390-room Sheraton Manila Hotel earlier this year at the Resorts World Manila marked the brand’s debut in the Philippines.

Planned openings in the pipeline include Marriott Resort & Spa Caticlan in 2021, Courtyard by Marriott Caticlan in 2021, The Westin Manila Sonata Place in 2021, and Element Palawan Puerto Princesa in 2024, amongst others.

Apart from new-build hotels, conversions continue to be a key strategy in strengthening Marriott International’s footprint in the Philippines, such as the Sheraton Manila Bay expected to open later this year. The rebranding project includes a major renovation of the hotel’s lobby area and the creation of a new executive lounge and fitness centre.

Additional conversion deals include the 2020 opening of Four Points Palawan Sabang Beach, following a US$8 million renovation; and The Ritz-Carlton, Manila, targeted to debut in Philippines in 2021.

Marriott International’s expansion across the Philippines comes as the country is seeing a growing number of business and leisure visitors. In 1H2019 alone, the country’s Department of Tourism recorded more than four million international tourist arrivals – an 11 per cent increase from the same period last year.

Nay to proposed tourism tax in Macau

India gains ground as key market for the Maldives

Malaysia eyes inbound growth from Central Asia

Dusit to open second Nepal hotel in Kathmandu

New hotels: Hard Rock Hotel Maldives, Holiday Inn & Suites Saigon Airport, and more

Master plan to reshape Singapore’s Sentosa, Brani islands revealed

At PHIST, hospitality sector sees sustainability as key to future growth

APAC leads global air travel growth in 2019: ForwardKeys

VLeisure rolls out credit service to offer agents greater financial control

Marriott embarks on major expansion drive in the Philippines

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