Thomas Cook says Fosun bailout is its best option

July 16, 2019

After news of Thomas Cook being approached for takeover by its largest investor Fosun Tourism, the UK travel company reportedly said last week that the proposed £750 million (US$939 million) bailout, despite diluting shareholder value, is its best option.

The proposed deal is expected to give Fosun control of Thomas Cook’s package tour business, and a minority interest in the group’s airline business, in addition to seeing Fosun extending capital injection and new financing facilities to the ailing UK company.

The proposed £750 million deal could see Fosun, owner of ClubMed, take control of Thomas Cook’s package tour business

“While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees,” chief executive Peter Fankhauser told journalists.

Following the announcement of the deal, Thomas Cook shares plunged 44 per cent to a record low late last week.

The impact of reorganisation on Thomas Cook’s 22,000 employees remains uncertain, with Fankhauser telling the media that the immediate priority is to complete the refinancing of the business.

According to a report published last week, Thomas Cook has a market value of around £200 million and net debts of £1.25 billion.

The British holiday company’s tour business had 11 million customers in 2018 and produced £7.4 billion in revenue. Its airline business – which includes German holiday carrier Condor – made £3.5 billion in revenue.

The company said last Friday that summer bookings in its tour operations business were down nine per cent, while those at its airline business are down three per cent, according to Reuters.

Thomas Cook expects that cash from the deal would allow it to trade over the winter season and give it flexibility to invest.

The recapitalisation proposal comes a month after news broke of a preliminary approach by the Chinese firm.

Fosun has been purchasing tourism assets including France’s Club Med, as the industry is viewed as key to China’s shift towards a more consumption-driven model of economic growth from an investment and export-led one.

Chinese companies have in recent years been scrutinised by Beijing for debt-fuelled, big-ticket foreign deals.

Wynn Resorts unveils plans for new US$2b complex in Macau

By TTG Asia

July 16, 2019

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wynn resorts crystal pavilion — Concept of the new Crystal Pavilion complex

Wynn Resorts has unveiled plans for a US$2 billion expansion of its properties in Macau including new hotel towers, an art museum, and more, Bloomberg reported.

To rise adjacent to the Wynn Palace on the Cotai peninsula, the Crystal Pavilion complex will include two hotel towers, interactive sculptures, gardens and a performance space in a glass and steel structure designed by architect Robert Stern.

Concept of the new Crystal Pavilion complexWynn

Construction on the new complex will begin in 2021, with an opening scheduled for 2024.

Wynn is also planning a US$125 million renovation of its original resort in Macau.

According to the Bloomberg article, Wynn’s casino licence is due in 2022.

Casino operators in Macau are reportedly under pressure from the Chinese government to invest in non-gambling attractions.

Meanwhile, Wynn is also competing for a license in Japan, which recently legalised casino gambling.

The company unveiled an illustration of an urban waterfront resort in Japan on Wednesday as part of presentation to investors at its new Encore Boston Harbor resort.

Travel agency H.I.S. wants up to 40 per cent of developer Unizo

By TTG Asia

July 16, 2019

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Hen-na_Reception_in_Huis_Ten_Bosch — Hen-na Hotel Reception

Japanese travel agency H.I.S. has announced plans to purchase up to 40 per cent of real estate developer Unizo’s shares for as much as 42.7 billion yen (US$394 million), in a bid to expand hotel operations, Nikkei reported.

The travel group is offering 3,100 yen a share, about 30 per cent above Unizo’s closing price last Wednesday. The offer will be open until August 23.

H.I.S. hotel subsidiary Henn Na Hotels gained hype when its robot hotel first launched; the first Henn Na hotel fired half its robot staff this year

H.I.S. said it requested a meeting with Unizo several times between December and April to discuss potential capital and business partnerships.

Nikkei further understands that Unizo did not respond, prompting H.I.S. to acquire its current 4.79 per cent stake in the company. It is already the leading shareholder in Unizo.

In a statement released on Wednesday, Unizo said the tender offer was announced “unilaterally and abruptly”.

While H.I.S. currently earns about 60 per cent of group operating profit from the travel business, its margins are low given the small commissions on hotel and plane bookings.

Travel agencies are also facing mounting OTA competition. JTB, another Japanese brick-and-mortar player, recorded a 15.1 billion yen net loss for the fiscal year ended in March, according to Nikkei.

H.I.S. now operates 33 hotels in Japan and abroad, and is aiming to eventually hit the 100 mark.

Unizo currently owns 25 business hotels across Japan.

JR West passes now selling on Traveloka

By TTG Asia

July 16, 2019

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traveloka-jr-west-pass — JR West passes are available to Traveloka users in Indonesia

Indonesia’s OTA unicorn Traveloka has become the first online travel booking platform in South-east Asia to partner directly with West Japan Railway Company (JR West) for the in-app sale of the latter’s rail passes.

The Japan Trains feature is currently available in Indonesia, with plans for roll-out to other South-east Asian countries in 2020.

JR West passes are made available to Traveloka users in Indonesia first, with plans for roll-out in other South-east Asian countries

Citing figures from the the Japan National Tourism Organization, KR-Asia reported that Japan has been receiving a growing number of tourists from South-east Asian nations. In May 2019 alone, Japan welcomed more than 317,000 tourists from Thailand, Singapore, Malaysia, the Philippines, Indonesia, and Vietnam.

The JR West train network covers 18 regions and includes both conventional trains and the Shinkansen high-speed train.

Users purchasing JR West passes via the Traveloka app will receive a JR Exchange Order via email, which will then need to be activated in airports or train stations and exchanged for the actual JR Pass.

Travellers can opt to activate the Exchange Order in airports or train stations with Japan Rail exchange offices or have them delivered to their hotel in Japan, according to KR-Asia.

C9 warns of stress in Phuket hotel market with pipeline set to spike

By TTG Asia

July 16, 2019

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villas-near-patong-beach-phuket — Villas near Patong beach in Phuket

Phuket’s accommodation market is predicted to face stress in the short- to medium-term with soaring hotel supply expected to be challenged by declining tourism demand, according to new analysis by C9 Hotelworks.

The Thai resort destination has a development pipeline of 15,348 keys set to enter the market over the next five years, which represents an 18% push in total supply, C9’s Phuket Hotel Market Update Mid-Year Edition revealed.

During the first four months of 2019, considered a high season, year-on-year international passenger arrivals at Phuket International Airport slipped by 3%, while the domestic segment was down 6%.

A boat accident in Phuket that claimed the lives of Chinese tourists had prompted a sharp decline in arrivals in the second half of 2018 after a record first half of the year.

Mainland China remains at the forefront of any discussion about Phuket and the segment continues to be volatile with a 19% decrease registered this year from January through May. Russian arrivals have also declined.

On the upside, the fast-growing Indian market tripled its tourism arrival trajectory during the same period versus 2018.

Hotel performance has mirrored the current trend. Citing STR data, C9 says there is a 12% retraction of RevPAR, driven largely by lower market occupancy.

While May and September are the two lowest months for Phuket hotels, July and August are projected to experience boosts in occupancy. But the reality remains that non-high season attracts significantly lower room rates. This, C9 predicts, will undoubtedly suppress overall rate growth during the year.

The C9 report also highlights the growing influence of hotel branded residences on the Phuket accommodation market. Over 50% of the incoming pipeline or 8,337 units are being developed. Majority of these are condominium properties, with many affiliated to international hotel groups via management or franchise agreements. Despite the drop in Chinese tourists, a number of Mainland real estate conglomerates have entered the island property sector.

Still, C9 maintains that the development of the new Greater Phuket airport by AoT in Southern Phang Nga bodes well for the destination’s long-term tourism performance. C9 surmises it is probable that the current hotel sector will experience a similar cycle that Bali saw between 2014 through 201, and that new supply will eventually be absorbed on a medium-term basis. In the shorter term, however, demand remains a key risk factor impacting operators and owners.

Ascott continues expansion spree with another 26 properties

By TTG Asia

July 16, 2019

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Somerset_Cam_Ranh_Bay_and_Vertu_Cam_Ranh_Bay — Artist impression of Somerset Cam Ranh Bay and Vertu Cam Ranh Bay

CapitaLand’s wholly owned lodging business unit, The Ascott Limited (Ascott), has signed 26 properties, set to add over 6,000 units across 22 cities in 11 countries.

The properties, which will open in phases from 2019 to 2023, are mostly signed under management contracts, with three on franchise agreements.

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Through these new signings, Ascott will enter six new cities across Asia-Pacific, Central Asia and Africa. It will foray into Atyrau in Kazakhstan, Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea, as well as Cam Ranh and Hoi An in Vietnam.

Ascott has also expanded its presence in 14 cities – Melbourne and Sydney in Australia; Chengdu, Dongguan, Guangzhou, Shanghai, Shenzhen, Wuhan and Xi’an in China; Bogor and Jambi in Indonesia; Cyberjaya in Kuala Lumpur; Cebu in the Philippines; and Bangkok in Thailand.

To cater to the burgeoning middle-class segment in the region, Ascott expanded its select service business hotel brand Citadines Connect to Bangkok in Thailand, after Sydney in Australia and New York in the US. Ascott also brought the hotel brands under Tauzia, which it has a majority stake in, to countries such as Malaysia and Vietnam, beyond its predominantly Indonesia market.

In a statement, Ascott revealed that the majority of the new properties are in Asia-Pacific as the region continues to see strong demand for lodging in tandem with lower cost of travel, improving travel infrastructure and the middle-class’s growing disposable income and aspiration to travel. By 2022, global lodging sales are forecast to reach US$812 billion, with Asia-Pacific remaining the second largest market.

Yaana Corporate Challenge back for a third cycle

By TTG Asia

July 16, 2019

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Tourism investment group Yaana Ventures is calling for sign ups for its corporate networking and fundraising bicycle tour, which will take place in two countries this year.

The third Yanna Corporate Challenge (YCC) will see participants cycle through either North Vietnam (October 18-20) or Inle Lake in Myanmar (December 6-8).

The Yanna Corporate Challenge returns bigger this year, with two country events and more beneficiaries

Both events are open to senior management and leaders from any business or non-profit organisation. As corporate networking and fundraising events, both YCC events are based around sustainability, conservation, and highlighting the quality of outdoor travel in Vietnam and Myanmar.

All proceeds from the Vietnam tour will go to Operation Smile Vietnam and Blue Dragon Children’s Foundation. In Myanmar, the beneficiaries are the Bagan Plastic Campaign, the Minzontaung Burmese Star Tortoise Centre and the Khiri Reach Water Well Project.

Day 1 at both YCC events will feature a dinner as well as a networking event with guest speaker and panel discussion.

On days 2 and 3, participants will hit the roads for the cycling programme. The days will be rounded off by a dinner and closing event respectively.

Participants will need a moderate level of fitness as both tours cover 125 km in two days.

Corporate sponsorship packages are available at US$5,000 (three riders), US$3,500 (two riders), and US$2,000 (one rider).

All packages include bicycles, full back-up support, rider jerseys, three-night hotel stays, meals as well as branding opportunities and publicity for participating companies.

The inaugural YCC took place in 2017 with 18 riders cycling 226km from Quy Nhon to Hoi An in Vietnam. It raised US$25,000 for Operation Smile, which funded 33 surgeries for children.

Deaf guides organisation wants to bring sign-language tours beyond Manila

By Rosa Ocampo

July 15, 2019

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DEAFinite2 — History in sign: DEAFinite guides are taking hearing-impaired participants on history tours in Manila

An organisation in the Philippines that leads tours for the deaf is planning to expand its specialised service beyond Manila, with the country’s tourism making gradual strides towards inclusivity.

Launched last year, DEAFinite Tour Guiding Services today has 13 deaf guides accredited by the Department of Tourism, who take tourists with special needs on itineraries covering historical attractions in Manila including Intramuros, National Museum, Fort Santiago and Rizal Park.

History in sign: DEAFinite guides are taking deaf participants on history tours in Manila

“Once our existing services are more stable, we hope to have more deaf tour guides in different regions,” said DEAFinite Tour Guiding Services’ president, Jamie Aquino.

Herself deaf, Aquino told TTG Asia that the company sees demand coming from deaf local and foreign tourists including those from Italy, the US and South Korea. Filipino students enrolled in deaf schools have also been signing up for the tours.

In line with the Philippines’ thrust for barrier-free tourism and inclusive tourism industry, DoT has teamed up with local players with the aim of grooming more tour guides who are skilled in sign language and trained to understand the needs of persons with disabilities. DoT is collaborating with Intramuros Administration, Office of Industry Manpower Development, and the De La Salle College of Saint Benilde’s School of Deaf Education and Applied Studies, alma mater of the 13 DEAFinite tour guides.

To be DoT-accredited, deaf tour guides have to pass rigorous training and complete a seven-day training programme based on DoT’s Community Tour Guiding module.

Apart from knowledge and skills improvement training, DoT occasionally invites DEAFinite to facilitate lectures and take part in forums on accessible tourism, such as during the PATA Annual Summit 2019 in Cebu last May.

“We are improving our services and trying to expand (our customer base). Our Facebook page helps us find the clients,” Aquino added.

As it takes steps to make its services available to more deaf tourists, Aquino said one of the difficulties is that sign language is not universal. “The deaf have different sign languages. We use the International Sign Language we are familiar with and learn some foreign signs,” Aguino said.

Aquino said the tourism ecosystem is gradually shaping up to be more inclusive and deaf-friendly. Elsewhere in the tourism industry, hotels, restaurants and malls are increasingly hiring the deaf. Naming some examples, she said hotels with deaf employees include the New World Manila Bay, Shangri-La Makati and Sofitel Philippine Plaza. Some deaf-friendly restaurants include A&J Cafe, Elait, Overdoughs, Teriyakiboy, and Subway.

Artotel adds first phinisi yacht to management portfolio

By TTG Asia

July 15, 2019

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siji-sysstima-and-artotel — Siji Sysstima's Basha Himawan (left) with Artotel GRoup's Eduard Rufolf Pangkerego

Indonesia’s Artotel Group is making its first foray into phinisi yacht operation, having been appointed by boat owner Siji Sysstima to bring on board its hospitality expertise.

Malaillo, the first phinis to be operated by Artotel Group, is expected to sail Labuan Bajo and Raja Ampat in March 2020. The boat’s name is based on an ancient word used by the Bugis to refer to a never-ending hum.

Siji Sysstima’s Basha Himawan (left) with Artotel GRoup’s Eduard Rufolf Pangkerego

Phinisis were traditionally to transport goods for Bugis and Makassar people from South Sulawesi. In recent times, phinisis are increasingly being used for leisure and tourism-related purposes including diving.

The 45m-long Malaillo can carry 45 people – with capacity for 18 guests, and the remaining for the crew. It will feature eight guestrooms, a restaurant, lounge and sun deck. Guests will also be able to enjoy Internet connection and use of diving equipment.

Eduard Rudolf Pangkerego, COO Artotel Group, commented: ’The signed management agreement (means that) the group now not only operates properties on land, but also at sea.”

On how the group plans to bring the Artotel style to sea, he said the interior will feature art by emerging local creators, round-the-clock F&B, as well as events and activities such as art exhibitions, workshops, and music performances.

Artotel Group is an Indonesian hospitality company with four integrated pillars – hotel, F&B, event management and curated merchandise. The group offers a range of accommodation types, from boutique design-centric hotel, up to premium luxury hotels. Its hotel brands include BoBotel, Artotel, Curated Collections, Artotel Casa, Artotel Villa and Artotel Suites.

From urban planner to tour guru

By Prudence Lui

July 15, 2019

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An urban planner by profession, Manuel Wu gave up his government job and started Macau Explorer Cultural Travel in 2014.

At that time, nobody believed the travel agency could survive in what’s regarded as a sunset industry with online travel habits at the fore.

However, Wu felt there was still a market for offline booking of in-depth local cultural tours that deviated from mainstream sightseeing-and-shopping tours.

Wu mused: “What prompted such a career shift was my passion for travel. It was nurtured during my stint with the Land, Public Works and Transport Bureau. One of my duties was to receive overseas diplomats or consuls who came to the enclave for exchange. I showed them around the city and observed numerous fast-paced sightseeing tours and hop-on, hop-off coaches in the market, which did not immerse visitors in the local culture.”

He then became determined to walk visitors into Macau’s 400-year history.

Being new to the business, he skilled himself by enrolling in an inbound tour guide course before leaving his full-time job.

He recalled: “I also volunteered to take groups in my leisure time to really feel the pulse of tourism. The experience was rewarding and reinforced my decision to join tourism.”

The company began with two cultural routes before custom-made tours took off in recent years. Today, itineraries cover history, nightlife, the Historic Centre of Macau and gourmet themes.

Apart from leisure, overseas MICE visitors also opt for local experience outside of meetings, leading the company to create tour ideas like DIY Portuguese egg tart classes.

He observed a gap in the market when it comes to one-stop services for both business events, as well as tours that fit with the specific interests, needs and schedules of delegates.

“That’s why many come to us for new ideas when planning overseas exchange or study tours. We do all the sourcing including for (special) requests i.e. incinerator visits and childcare services.”

Wu has kept his head down in the past five years to build the business and a professional team, with special emphasis on tour guides. The company started to break even from last year, and Wu now sees ‘intangible’ services and professionalism as key assets to sustain business.

Wu explained: “It might be very easy to copy our itineraries but not our software like intangible services and professional standards.”

Thomas Cook says Fosun bailout is its best option

Wynn Resorts unveils plans for new US$2b complex in Macau

Travel agency H.I.S. wants up to 40 per cent of developer Unizo

JR West passes now selling on Traveloka

C9 warns of stress in Phuket hotel market with pipeline set to spike

Ascott continues expansion spree with another 26 properties

Yaana Corporate Challenge back for a third cycle

Deaf guides organisation wants to bring sign-language tours beyond Manila

Artotel adds first phinisi yacht to management portfolio

From urban planner to tour guru

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