Influx of luxury hotels yet to spur international demand to Jakarta

July 3, 2019

In its transformation into an Asian megacity, Jakarta has been slow to increase its mix of international visitors, an imbalance that international-brand luxury hotels alone cannot correct, C9 Hotelworks argues.

In 2018, the city’s hotels hosted over 13 million guests, yet 86% were from the domestic segment.

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According to the newly released the Jakarta Hotel Market Review by C9 Hotelworks, over 2.7 million overseas passengers arrived at the gateway Soekarno-Hatta International Airport last year. Over a 10-year period the compound annual growth rate hit an impressive 7.4%.

Yet, the reality is that Indonesia’s largely domestic economic marketplace remains the key spotlight as public sector infrastructure is playing catch up with ongoing mass transportation developments trying to link the city’s spread of mini-metros, C9 Hotelworks observes.

A key outcome of the domestic feeding frenzy is that Indonesian conglomerates and real estate groups are developing massive integrated mixed-use properties with global luxury operators. Jakarta’s accommodation pipeline includes well-known names such as Park Hyatt, Waldorf Astoria, St. Regis, W, Regent and Langham.

Historically the influx of overseas guests are business travellers during peak mid-week periods who leave the city in advance of the weekend. C9 surmises that this leaves hotels with the choice of either lower room rates for the domestic market or empty beds.

Jakarta’s international geographic source of business profile has seen mainland China in the top position since 2015, with a five-year CAGR of 9%. Rounding out the top five are Malaysia, Japan, Singapore and Saudi Arabia. There have been few surprises during the past few years yet two international sporting events, the 2018 Asia and Para Asian games pushed market-wide demand higher.

Looking forward, C9 Hotelworks managing director Bill Barnett said: “It’s unclear if the new luxury pipeline will dramatically induce the overseas market. Until there are broader economic reforms that will positively impact FDI (foreign direct investment) and improvements in commuting to CBD areas, the domestic segment is likely to remain firmly entrenched in the driver’s seat of Jakarta hotel performance.”

Oyo checks into Vietnam with US$50 million investment

By TTG Asia

July 3, 2019

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Oyo-Saigon-Hotel — OYO 101 Saigon Hotel in Ho Chi Minh City's District 1

Oyo Hotels & Homes has officially launched in Vietnam, with the India-headquartered hotel chain committed to investing US$50 in the country’s booming tourism sector.

According to KrAsia, Oyo claims to have over 90 hotel partners across six major cities in Vietnam – Hanoi, Ho Chi Minh City, Danang, Phu Quoc, Vung Tau and Nha Trang. The company’s aim is to become the largest hotel chain in Vietnam by the end of 2020 with presence in 10 cities and 20,000 rooms.

OYO 101 Saigon Hotel in Ho Chi Minh City’s District 1

Oyo Vietnam’s country head Dushyat Dwibedy told KrAsia that most hotel partners in Vietnam are mid-range and budget hotel owners with a smaller number of rooms, who are willing to adopt Oyo’s technology-based solutions to transform their hotel operations. Hotel owners have to pay in order to join Oyo, but Dwibedy said that such fees were flexible.

Currently, Vietnam’s OTA market has been dominated by foreign players such as Booking and Agoda, where local media have reported concerns that hotel owners in Vietnam are too dependent on these websites, and are subjected to higher listing fees.

This in turn, has spelled an opportunity for Oyo to enter the market and encourage users to book directly on the Oyo app or website that lists hotel partners, reported KrAsia.

Launched in 2013, Oyo became a unicorn within six years after raising US$1 billion led by Softbank’s Vision Fund in 2018 and other investors including Sequoia Capital and Grab. In January, Oyo announced that it would double investment in South-east Asia to US$200 million to achieve the goal of 2.5 million rooms by 2023.

Singapore, Japan retain lead on passport index while US and UK decline

By TTG Asia

July 3, 2019

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Japan-Passport — Singapore and Japan hold top spot

Moving into the third quarter of 2019, Japan and Singapore hold onto top spot on the Henley Passport Index, with a visa-free/visa-on-arrival score of 189, while the US and UK are in their lowest position since 2010.

This latest ranking of passport power and global mobility – which is based on exclusive data from IATA marks the culmination of an 18-month long winning streak, after they unseated Germany from its long-held top position at the beginning of 2018.

Singapore and Japan passports currently hold top spot

Falling from the top spot it shared last quarter, South Korea now sits in second place along with Finland and Germany, accessing 187 destinations without a prior visa.

Finland’s ascent is due to recent changes to Pakistan’s formerly highly restrictive visa policy.

In the hope of attracting tourists and boosting its struggling economy, Pakistan now offers an ETA (Electronic Travel Authority) to 50 countries – notably excluding the UK or the US.

With a score of 183, the UK and the US now share sixth place – the lowest position either country has held since 2010, and a significant drop from their top rankings in 2014.

Denmark, Italy and Luxembourg share third place, while France, Spain and Sweden sit in joint fourth.

In significant shifts elsewhere, the UAE has entered the top 20 for the first time in the index’s 14-year history, more than doubling its number of visa-free destinations over the past five years. Afghanistan remains at the bottom of the global mobility spectrum, with access to just 25 destinations worldwide.

Throughout most of the index’s history, the UK has held one of the top five places in the ranking. However, with its exit from the EU now imminent, the UK’s once-strong position looks increasingly uncertain.

The Brexit process has not yet had a direct impact on the UK’s ranking, but new research using exclusive historical data from the Henley Passport Index indicates that this could change, with consequences that extend beyond a decline in passport power.

Political science researchers Uğur Altundal and Ömer Zarpli, of Syracuse University and the University of Pittsburgh respectively, have found a link between visa-openness and progressive reform.

They say “the prospect of visa-waiver agreements with the EU has encouraged neighbouring countries to adopt important reforms in areas such as civil and political rights, rule of law, and security”.

They note that freedom of movement appears to be a vital pre-condition not only for economic growth, but also for social integration and progressive political change.

With nationalism on the rise, and global powerhouses like the UK and the US embracing policies that limit freedom of movement, this new research indicates that associated impacts on political rights, rule of law, security and democracy could be profound.

Christian Kaelin, chairman of Henley & Partners, and the creator of the passport index concept, said: “This latest research appears to confirm something that many of us already knew intuitively: that increased visa-openness benefits the entire global community, and not just the strongest countries.”

Countries with citizenship-by-investment programmes continue to perform strongly on the index, and demonstrate a similar connection between passport power and economic and social progress.

Malta now sits in seventh place with a score of 182, just one spot behind the UK and the US. Cyprus retains its 16th place, with a score of 172, while the Caribbean nation of Antigua and Barbuda is now in 29th place, rising 11 spots over the past decade.

Langkawi proposes merger with Thailand’s Satun as transnational UNESCO geopark

By S Puvaneswary

July 3, 2019

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Tarutao-National-Park — Tarutao National Park is part of Thailand's Satun Province and located north of Langkawi

Langkawi Development Authority (LADA) is proposing the merging of Langkawi in Malaysia and Satun province in southern Thailand to create the first transnational UNESCO Global Geopark (UGG) in Asia.

According to The Star, LADA CEO Hezri Adnan said that he had passed this request to UNESCO, and that he will meet the Satun governor next month to discuss the matter.

Tarutao National Park is part of Thailand’s Satun Province and located north of Langkawi

Benefits cited include sharing the duties of conservation, managed development and promotion. The enhanced appeal of cross-border itineraries is also expected to significantly boost Langkawi’s tourism industry.

Situated in the Andaman Sea, both geoparks were formed at the same time during a massive tectonic event 550 million years ago.

“Geologically speaking, the Satun and Langkawi Geoparks are one and the same. Our lands share the same ancient history,” he was quoted as saying.

Langkawi was listed as a UGG in 2007, and Satun was awarded the same status last year.

Diethelm Travel Malaysia managing director, Manfred Kurz, supported the idea of combining both geoparks and marketing them together as one.

Travel between both geoparks currently take about 1.5 hour on a ferry ride.

He said: “Longhaul tourists usually like to see a few destinations in one trip. If the proposed is implemented, we will work with Diethelm Travel Thailand to work out a programme combining both. To further boost tourism, the authorities should ensure seamless immigration.”

Adam Kamal, general manager, Tour East Malaysia, said: “Both destinations have their own charm. Langkawi is rich in nature and natural attractions while Satun’s pull is its food and nightlife. Combining both destinations will provide clients with different experiences.”

As with any multi-destination itineraries, there may be extra visa applications work for certain nationalities, he reminded.

Oakwood sets up Beijing office to serve growing Chinese market

By TTG Asia

July 3, 2019

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Oakwood-Residence-Beijing — One of Oakwood's China properties, the Oakwood Residence Beijing

Hospitality company Oakwood has opened a new office in Beijing as part of its expansion in Asia Pacific and to better serve international companies doing business in China, the world’s largest corporate travel market.

With the establishment of a Beijing office, Oakwood is able to bill in local currency and issue fapiao, a legal receipt that serves as proof of purchase for goods and services. This allows companies to be reimbursed for taxes, and provides documentation for individuals to obtain reimbursements for business expenses.

One of Oakwood’s China properties, the Oakwood Residence Beijing

“For many of our clients, having a foothold in China, with a local office and trained staff that understands local nuances, is a key requirement for servicing multinational accounts,” explained Dean Schreiber, interim CEO, Oakwood and managing director, Oakwood Asia Pacific.

Oakwood currently has nine branded properties in China, including Beijing, Guangzhou, Hangzhou, Sanya, Shanghai, Suzhou and Yangzhou, with more in the pipeline. In total, Oakwood has a footprint of 35,000 properties in more than 95 countries.

Oakwood says its global portfolio will enable partners to better source, book, and manage housing requirements for their clients and employees.

Michelin-starred chef Anne-Sophie Pic debuts Asian outpost at Raffles Singapore

By TTG Asia

July 3, 2019

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La_Dame_de_Pic,_Raffles_Singapore_1 — Restaurant interior

Acclaimed French chef Anne-Sophie Pic, with seven Michelin stars under her belt, will make her debut in Asia with the opening of French restaurant La Dame de Pic at Raffles Singapore on July 5, a month ahead of the hotel’s grand opening in August.

Located in the main building of the hotel, the 46-seater La Dame de Pic takes over the space that once was the Raffles Grill. The space has been designed by Champalimaud Design led by Alexandra Champalimaud, with soft pink hues and rich plums matched with grey clay tones and metallic accents. Taking centrestage in the restaurant is a gold chandelier composed of tiers of discs with laser-cut spades, a play on ‘La Dame de Pic’ which translates to ‘queen of spades’.

La Dame de Pic, Raffles Singapore

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Signature dishes include berlingots (pasta parcels), cucumber with Oscietra caviar, Brittany lobster, and Tajima wagyu beef. The desserts menu will include white mille-feuille, Gariguette strawberry and rosat geranium, and Araguani chocolate mousse, among others. In addition, the extensive beverage menu features a wine list that leans towards the French regions, with a particular focus on Pic’s birthplace, the Rhône Valley.

A third-generation Michelin-star chef, Pic follows in the footsteps of her father and grandfather, hailing from a long lineage of chefs with the Pic family’s culinary heritage beginning since their first restaurant established in 1889.

There are two other La Dame de Pic restaurants in Paris and London.

Hilton to plant DoubleTree brand in Malaysia’s Damai Laut

By TTG Asia

July 3, 2019

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Signing_of_DoubleTree_by_Hilton_Damai_Laut_Resort_(2) — Hilton's Guy Philips (second from left) and OSK's Ong Ju Yan (second from right) at the signing

Hilton will introduce its DoubleTree by Hilton brand in Damai Laut, Malaysia, through a conversion of the existing Swiss-Garden Beach Resort Damai Laut.

Set to open in 2020, the 291-room DoubleTree by Hilton Damai Laut Resort will be the first internationally-branded resort managed by Hilton in Damai Laut, offering views of the Strait of Malacca and Pangkor Island.

Hilton’s Guy Philips (second from left) and OSK’s Ong Ju Yan (second from right) at the signing

Located within 172ha of lush greenery, DoubleTree by Hilton Damai Laut Resort will offer five dining outlets including an all-day dining restaurant, a specialty restaurant and a beach restaurant. The property also boasts a mini water park, an 18-hole golf course with direct access to the beachfront, plus meetings and events facilities including a 1,860m² event space and an 885m²ballroom.

Shawn McAteer, senior vice president and global head, DoubleTree by Hilton, sees “huge potential” for Damai Laut “to be the next resort destination of choice for domestic travellers”, as the coastal town boasts rich historical heritage and is one of the key gateways to the surrounding islands including Pangkor Island and Marina Island.

In Malaysia, Hilton currently operates 11 properties across three key brands – Hilton Hotels & Resorts, DoubleTree by Hilton and Hilton Garden Inn. Over the next three to five years, the company is targeting to open seven hotels in its pipeline, including four hotels under the DoubleTree by Hilton brand as well as the introduction of two new brands in the market, luxury brand Conrad Hotels & Resorts and lifestyle brand Canopy by Hilton.

Yoo Hotels & Resorts hires David Grossniklaus to lead SE Asia push

By TTG Asia

July 3, 2019

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David_Grossniklaus_YOO_Hotels_&_Resorts_as_Head_of_Operations_and_Development — David Grossniklaus

Yoo Hotels & Resorts has appointed David Grossniklaus as head of operations and development to lead the growth and operations strategy of the company in South-east Asia, following the launch of its regional headquarters in Bangkok earlier this year.

Grossniklaus will focus on Yoo’s opportunity pipeline, as well as manage the relationships with the hotel group’s partners to secure new developments and conversion opportunities globally.

The Swiss national has held varied roles in hotel operation and hotel development, most recently with Belmond in Dubai as senior director development for Middle East, Africa and India. He has also worked with with companies such as Starwood Hotels & Resorts, Deloitte/STR Global, Swissotel and Istithmar/Nakheel Hotels.

Yoo Hotels & Resorts operates the yoo2 Rio de Janeiro and currently has three more hotels under development in Canada and Thailand, with two properties set to launch in the next 18 months.

Hertz launches prestige German collection

By TTG Asia

July 2, 2019

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Hertz Europe’s Kollektion 7 – Made in Germany will launch at Frankfurt Airport featuring prestige vehicles from top German brands, namely BMW, Mercedes Benz and Porsche.

The new country collection proposition, which also features luxurious Kollektion 7-branded lounges, is rolling out to six other locations across Germany, with Düsseldorf and Munich launching later in 2019.

In a statement, Hertz said that each location will offer a “unique, city-specific driving experience”, with Hertz providing insights and recommendations. Guests are also given a gift basket of local fare.

Kollektion 7 includes a choice of iconic German models for a range of driving experiences: the luxury BMW M850i Cabriolet, BMW Z4, Mercedes-AMG GT and Mercedes-AMG GT 63 4-door coupe (a Hertz-exclusive), Porsche 718 Boxster, Porsche Macan S, and Porsche Panamera E-Hybrid.

All models will be available in the colours of the German flag: black, red and yellow.

In addition, customers can use a dedicated Kollektion 7 lounge ahead of their journey. Kollektion 7 customers benefit from additional benefits such as a concierge service that accompanies them to the pick-up areas and introduces them to the highlights of the vehicles, as well as a pick-up and preferred return service to accelerate processing time.

Earlier this year, Hertz launched its British Collection in the UK.

Tourism Western Australia mounts biggest-ever charm offensive to lure Asians

By Rachel AJ Lee

July 2, 2019

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paul-papalia-alicia-seah-WA-Dynasty — Western Australia’s tourism minister Paul Papalia with Dynasty Travel's Alicia Seah

Tourism Western Australia (TWA) has unveiled a A$12 million (US$8.4 million) international marketing offensive that will see the state intensify its promotional efforts in the region’s key markets over the next 13 months to nurture growing tourism traffic from Asia.

In Singapore, a new marketing campaign between Western Australia and travel agency Dynasty Travel, was unveiled yesterday. The Singapore campaign will see the interior of four carriages on the North East Mass Rapid Transit (MRT) train line, as well as Serangoon MRT station, covered in high-impact images – such as Rottnest’s quokkas – depicting Western Australia locations.

TWA also signed a three-year global cooperative marketing agreement with Singapore Airlines (SIA) yesterday afternoon to jointly promote travel to Western Australia in 10 key international markets such as India, China, Hong Kong, Malaysia, Japan, Indonesia and Singapore.

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The A$5 million agreement, jointly funded by TWA and SIA, will include advertising promotional airfares and travel packages to Western Australia through digital, print and TV channels.

Western Australia’s tourism minister Paul Papalia said at a press conference yesterday that this latest effort was the “biggest international marketing push in the state’s history”, as growing the tourism sector is part of the plan to “boost the economy, create jobs and develop business opportunities”.

He added: “One in four Singaporeans who travel to Australia go to Western Australia. I’d like to see that grow. We already have 10,000 Singaporeans visiting Western Australia annually, but I do believe there’s an opportunity to grow that significantly.”

Papalia further shared that the immediate target is to achieve more than 11,000 Singaporean visitors by next year with this latest push, with the eventual aim that one day Singaporean visitors will hit 15,000 annually – equivalent to the number of visitors from the UK, Western Australia’s top inbound market.

Moreover, Singaporeans have also been revealed as the state’s second biggest spending tourists, recently jumping to the second position behind China at A$265 million in the 12 months to March 2019, a year-on-year increase of 21.6 per cent.

As such, Western Australia has developed new products that Papalia believes Singaporeans would appreciate. For instance, the Dolphin Discovery Centre in Bunbury, a glamping eco-resort on Rottnest Island, and an A$800 million redevelopment of the Museum of Western Australia (opening in 2020) are some of the state’s newest offerings.

“There are a lot of regional destinations in Western Australia that people don’t know about, such as Esperence with its Pink Lake and the (historic city of) Albany. You can actually drive to these locations, and Singaporeans are very comfortable with driving around,” he mused.

The state government is also working to increase visitors from elsewhere in the region, with the Western Australia delegation travelling to Malaysia today (Tuesday) to meet with key partners and travel agents. The number of Malaysians visiting Western Australia currently stands at 11,000.

In addition, Western Australia will be unveiling its first Muslim visitor guide in Bahasa Melayu specifically for the Malaysian market, created with the help of a local influencer. Aside from attractions and itineraries, the guide offers information on prayer spots, mosques and halal cuisine.

When asked about other Muslim markets from the region such as Indonesia, Papalia lamented that while the market is in the top 10 and they would like to “of course” grow it, but costly visas for Indonesians to Australia is hampering the market’s upward trajectory.

Influx of luxury hotels yet to spur international demand to Jakarta

Oyo checks into Vietnam with US$50 million investment

Singapore, Japan retain lead on passport index while US and UK decline

Langkawi proposes merger with Thailand’s Satun as transnational UNESCO geopark

Oakwood sets up Beijing office to serve growing Chinese market

Michelin-starred chef Anne-Sophie Pic debuts Asian outpost at Raffles Singapore

Hilton to plant DoubleTree brand in Malaysia’s Damai Laut

Yoo Hotels & Resorts hires David Grossniklaus to lead SE Asia push

Hertz launches prestige German collection

Tourism Western Australia mounts biggest-ever charm offensive to lure Asians

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