The Lion Air plane that crashed into Java Sea last month with 189 people on board was not airworthy and should have been grounded, said Indonesian investigators.
Preliminary findings revealed yesterday by Indonesia’s National Transport Safety Committee (KNKT) suggested that Lion Air put the plane – a new Boeing 737 Max 8 – back into service despite encountering problems on earlier flights.
The Department of Tourism (DoT) has finally thrown in the towel on the fourth edition of Madrid Fusion Manila, citing the need “to focus its resources on the many pressing challenges in the industry, in particular to address the needs of sectors that require support as the tourism industry adopts a policy of sustainable tourism”.
Although DoT has the option to host the international gastronomy event for five years, the fourth edition, which was supposed to have taken place this year, has no taker yet from the private sector.
PACEOS (Philippine Association of Convention/Exhibition Organizers and Suppliers), which won the event management bidding for Madrid Fusion Manila in the first three years, cannot afford to do it on its own without government support, its president Joel Pascual told TTG Asia.
“It will be a tough call” as they don’t have the means to promote it to the world which is MFM’s direction, Pascual said.
On the other hand, Arnold Gonzales, Tourism Promotions Board deputy COO for marketing and promotions, said they might revive the World Street Food Congress next year.
Commenting on the impact of Madrid Fusion Manila, Gonzales said it has introduced and lifted the image of the erstwhile relatively unknown Philippine gastronomy in the world market, benefiting tourism, agriculture and other sectors of the economy.
DoT said in a statement that it “will continue its support of Filipino gastronomy by focusing its efforts on areas that will make it truly sustainable” and “will continue to develop and improve culinary and farm tourism product offerings, while the department’s foreign offices will continue to promote the country as a premier culinary destination to the international market”.
The Travel Corporation (TTC) has named Anthony Lim the new managing director for Asia for the Insight Vacations and Luxury Gold brands.
Based in Singapore, Lim will lead the team in Asia and India, working closely with both Darshan Marhehswari, country manager for TTC, Asia, and Bhavani Arun, senior sales manager, Insight Vacations.
Lim brings a wealth of marketing and sales management experience to Insight Vacations and Luxury Gold, gained through a long-spanning career in senior executive roles across both healthcare, hospitality and the airline sectors.
Shangri-La Hotels and Resorts has partnered Blacklane to provide premium chauffeur service to its Golden Circle members.
With this partnership, Shangri-La Golden Circle members booking a ride through Blacklane worldwide will earn one Golden Circle Award Point for every two US dollars, British pounds or euros spent.
For the inaugural offer, members can enjoy a 10 per cent discount on their first Blacklane ride and double Golden Circle Award Points for every materialised booking from now until February 28, 2019.
“Together with Blacklane, we are creating more value and a growing suite of benefits and lifestyle experiences for our Golden Circle members when they travel around the world,” said Wee Kee Ng, Shangri-La’s vice president – loyalty and partner marketing.
Berlin-based Blacklane serves more than 300 cities, including 100 in the Asia-Pacific region, and 60 countries.
Dusit International is joining hands with Thailand’s Silpakorn University to preserve the architectural and artistic heritage of Dusit Thani Bangkok, the company’s flagship hotel which will be redeveloped next year as part of a landmark mixed-use development.
The project, named Preserving Dusit Thani Bangkok’s Artistic Heritage, will see experts from Silpakorn University identify, document, dismantle and preserve key items of historical or artistic value in the property for use in the new version of the hotel, which is slated to open in 2023.
Dusit Thani Bangkok, which opened in 1970, is said to be an early exemplar of contemporary Thai architecture, blending western modernism with traditional Thai design that is inspired by Wat Arun (Temple of Dawn).
Speaking at the launch of the Preserving Dusit Thani Bangkok’s Artistic Heritage project, Chanin Donavanik, vice chairman and chairman of the executive committee, Dusit International, said: “With the hotel now about to undergo a significant change for a new era of tourism, we would like to preserve as many items of historical and sentimental value as possible. I believe our past is the inspiration for a sustainable future…”
Suphajee Suthumpun, group CEO, Dusit International, added: “ This joint effort aims to preserve meaningful memories of the hotel and bring them to life once again in the next four years when the new Dusit Thani Bangkok opens its doors. We hope that the artefacts we preserve will create a warm atmosphere that delights new guests seeking new, impressive experiences, as well as regular guests who have an emotional attachment to the original hotel.”
Dusit Thani Bangkok will hold its last full day of operations in its current form on January 5, 2019. During this time, data and photographs of the project will also be presented in a digital book for those keen to learn more about the original building.
Tourism players have been keen to leverage business opportunities and travel interest arising from enhanced links and cooperation between China and countries participating in the Belt and Road Initiative (BRI).
For Daniel KC Chen, executive director of Shanghai Jiu Ying Consultant, which specialises in organising educational tours for Chinese students, the BRI now “opens up new opportunities” for a segment that has traditionally favoured the US as a destination.
“I’m looking for experiential products in Central Asia as well as north-west China to meet clients’ different needs and travelling styles,” he told TTG Asia at the recent CITM in Shanghai. “For instance, we have done self-drive tours from Gansu Province to Xinjiang and walkathon from China to Kazakhstan.
“We hope to come up with non-traditional tours and modify them according to demands of students and their families,” he added. “These educational tours promote exchange and Chinese parents opt for eye-opening exposure for their kids.”
The ambitious Chinese economic project has also spurred interest in the Belt and Road region from seasoned Chinese travellers, noted Sun Bing, general manager, CITS Jiang Su.
He said: “We observed more high-end, sophisticated travellers opting for destinations along this route. As they have covered many countries like Europe and as far as to South America, Central and West Asia are rising as new destinations.”
Meanwhile, China’s investment along the route will foster greater business exchange and word-of-mouth promotion may further draw more visitors from China, he opined.
Coupled with the success of Expo 2017 in Astana and BRI impacts, Kazakhstan expects Chinese arrivals to surge from 10,000 last year to 15,000-20,000 in 2018.
Said Kadylbek Zhalyn, general manager of Astana-based Qtrip: “As China’s economy grows, more Chinese can afford to go out. It’s typical now for them to transit (in Kazakhstan) for few days before heading to Russia or Europe. This year, our Chinese bookings have doubled to 7,000.
“In future, we will push for self-drive tours from Xinjiang to stop here for seven days and then drive to Russia. Another specialised experience is grassland hunting trips in winter.”
Iurii Tcurkan, chairman of Russian-Chinese Tourism Promoting Association, said: “We’re using the BRI to encourage tourism between China and Russia. This is our second year of representation at CITM, and thanks to the initiative, we are now able to show off Russia’s unique qualities through programmes like a lucky draw, performances and masterclasses (at the show).”
BRI has also attracted Chinese investment from across various sectors for Turkey, which will in turn spur various types of tours like trade missions and inspection, according to Toyou Turkey, partner, Oktay Lin.
Additional reporting from Pamela Chow
Dubai-based air services provider dnata, part of the Emirates Group, has acquired a majority stake in bd4travel (Big Data for Travel), a technology company that provides artificial intelligence (AI)-driven IT solutions to OTAs.
Based in Germany and the UK, bd4travel’s algorithms allow OTAs to engage with anonymous customers and personalise their shopping experience in real-time, recommending the most relevant products, services and content to them. Running more than 40 separate sites, bd4travel currently serves travel organisations in 17 markets.
Iain Andrew, divisional senior vice president, travel services, dnata, said: “Our investment in bd4travel will help us further optimise our processes and, by taking a world-class technology to a global level, deliver more value to the travel industry.”
Andy Owen Jones, founder of bd4travel, said: “This majority acquisition by dnata is a major milestone for bd4travel, which will enable us to grow our AI-led solutions and bring this technology to more customers especially within the airline world.”
The acquisition is effective immediately, with bd4travel continuing its business without any change in branding. Details of the acquisition were not revealed.
The Singapore State Courts on November 28 convicted SS Scuba for carrying on the business of a travel agent without a valid travel agent licence, according to the Singapore Tourism Board (STB).
Although its travel agent licence had ceased in March 2014, SS Scuba continued to sell and arrange overseas trips from January 2015 to July 2016, said STB.
SS Scuba faced 50 charges and was convicted and sentenced on 10 charges. The company was ordered to pay a total fine of S$14,000. The remaining 40 charges were taken into consideration in the sentencing.
STB says it “takes a serious view against unlicensed travel agents and is committed to uphold the reputation of Singapore’s tourism sector, and will not hesitate to take necessary action against those who contravened the legislation”.
The tourism board also advises the public to exercise due diligence when making travel arrangements, and to consult the latest list of licensed travel agents at the Travel Related Users’ System (TRUST) website.
Travel agents may also email the STB at stb_ta@stb.gov.sg for related licensing queries.
On paper, Langkawi has the makings of a luxury destination, with offerings ranging from high-end hotels to helicopter rides and marinas for yachts.
The archipelago of 99 islands has the most number of high-end hotel brands compared to any other island destination in Malaysia, according to Eric Sinnaya, managing director of Morahols Travel, council member of the Malaysian Tourism Council, and Langkawi chairman for Malaysian Nature Society.
Beyond luxury hotels, the destination also boasts helicopter rides, gourmet restaurants, environmentally-friendly motor yachts and catamarans.
Yet, the Langkawi Development Authority (LADA) says the destination is not attracting enough foreign visitors.
The high-yield segment makes up 15 per cent of total tourists to the island – a number the Langkawi Tourism Authority hopes to double by 2020.
There is room for growth in the five-star category, where occupancy levels average between 60 and 70 per cent, shared Azizan Noordin, CEO at LADA. He added that there are 1,952 rooms in the five-star category, the biggest island inventory of five-star properties in Malaysia.
Azizan said: “We have luxury hotel brands. What we need to do more of is to create greater awareness about the destination and its offerings. We have the mass market, now we need to go after the high-end tourists.”
While not a dedicated tourism destination marketing organisation, LADA, as the governing authority for development, has outlined objectives that are aligned to giving Langkawi a higher-end image.
LADA’s greater participation in tradeshows could help address the awareness gap. On top of PATA Travel Mart, which took place in Langkawi for the first time this year, LADA will also make a first appearance at ILTM Cannes in December. The organisation also plans to attend future iterations of ILTM China in Shanghai, and ILTM Asia Pacific in Singapore.
In particular, LADA hopes to attract luxury yacht enthusiasts, as Langkawi has four marinas that can cater to yachts of up to 80m long.
It also wants to attract private jets. Azizan shared that LADA is working with the Department of Civil Aviation to open Langkawi International Airport – including aircraft refuelling and private catering facilities – round the clock from 4Q2018.
Beyond the luxury hotel sector, LADA is also seeking investments in international schools for the expatriate community living in Langkawi, private hospitals, more fine dining restaurants and a premium outlet on the island.
Changing mass perceptions
Some agents point out that it is not just product awareness, but also destination branding that needs more work.
Langkawi’s luxury hotels are a relatively recent development, and the destination still has to work to change its mass market image that was formed over many years, they opined.
Ally Bhoonee, executive director of World Avenues, said: “The challenge is changing the perception of Langkawi as a high-end destination because all the while, Malaysia in general has been perceived as (a destination) attracting middle-income tourists. Only during the last two years, Langkawi has seen a spurt of growth in the high-end inventory with the opening of St Regis Langkawi and The Ritz-Carlton Langkawi.”
He added: “The authorities should not just concentrate on marketing Langkawi as a high-end destination but also rebranding it, while at the same time, not losing the essence of what Langkawi stands for – preserving nature and its pristine beauty. The tagline, Naturally Langkawi, hints that it is an ecotourism destination, but nothing to suggest it also caters to the upmarket tourist.”
For Sinnaya, even the more established tourism resources are not getting enough attention. “While there is sufficient information on Langkawi as a Geopark on the ground for visitors (already) in the destination, there is not enough awareness about its UNESCO Global Geopark status in overseas markets.”
Flight connectivity challenge
Another obvious challenge is connectivity. Currently, direct flights from international destinations are limited to Singapore, Guangzhou, Kunming and Guiyang.
Middle Eastern airlines are a key target as LADA trains its sights on high spenders. According to statistics from Tourism Malaysia, tourists from Kuwait, the UAE and Saudi Arabia spend more on the ground compared to visitors from other countries.
LADA is lobbying for more international airlines to begin direct flights to Langkawi, namely Qatar Airways, Emirates, Finnair, Thai Airways and Hainan Airlines, which had postponed the commencement of new services twice.
Other high-yield markets such as China, India, Australia, New Zealand, Europe and the US are also being targeted by LADA through joint collaborations with Tourism Malaysia, Malaysia Airlines, Etihad Airways, Emirates, Qatar Airways and Singapore Airlines.
It is also in talks with Condor Air, a new airline that will commence services between Frankfurt and Kuala Lumpur from November.
The charter strategy
Azizan suggested that airlines start first with charter flights. LADA is ready to provide marketing support for the duration of the charter programme, while Malaysia Airports Holdings provides complimentary landing fees.
Anthony Wong, president of Langkawi Business Association as well as group managing director, Asian Overland Services Tourism & Hospitality Group, agreed that for a destination with limited direct flights from foreign destinations, getting charters is a good start. It allows the airline to gauge whether there is a market for the destination and whether it will be viable to commence scheduled flights later.
He added: “With charter services, there will always be a percentage of passengers who are well-to-do and will choose the best category of hotels to stay in. They are merely using the charter services as a means of getting to the destination because direct, scheduled flights might not be available.”
Meanwhile, TUI Group’s Fly and Cruise programme is set to commence from December 20 until end-March 2019. The group will offer direct flights from the UK to Langkawi, and regional cruises sailing out of Langkawi.
With TUI Group’s cruise ship homeporting in Langkawi, all passengers will spend at least one night in Langkawi before embarking on a 14-day cruise itinerary. The total potential capacity is expected to be about 7,200 passengers in the first year of operation.
The friendly, jovial and knowledgeable figure that Mirza Mohammad Taiyab cuts will be sorely missed when the well-respected industry figure retires from his director-general role at Tourism Malaysia on December 1.
Mirza had served in Tourism Malaysia for some 36 years, with the last 12 years as director-general. Prior to that, he was the deputy director-general.
At press time, the Public Service Department has not announced Mirza’s replacement. Meanwhile, his duties will be taken over by two deputy director-generals, Mohmed Razip Hasan and Zulkifli Md Said.
During his tenure as director-general, Mirza had expanded Tourism Malaysia’s structure to create a career path for officers from entry level right up to senior management. He is also key in getting Tourism Malaysia staff exposed through overseas placements and in-house training programmes.
He said: “I am proud that I have been able to develop many capable and knowledgeable leaders. Together with the travel industry, we were able to bring tourism to its present level, which is the third foreign exchange earner for Malaysia.”
Mirza was instrumental in leading Tourism Malaysia to bid for PATA Travel Mart 2018, which was held in Langkawi in September. Recognising the importance of business events, he was crucial to the formation of Malaysia Convention & Exhibition Bureau (MyCEB) way back in 2009. Prior to the establishment of MyCEB, MICE was merely a unit within Tourism Malaysia.
Looking back at his long-spanning career, Mirza commented: “My biggest regret was not being able to launch a proper campaign to reverse the regression of arrivals after the two airline tragedies in 2014. At the time, Tourism Malaysia had budget cuts. Our challenges then were increased media advertising costs, currency devaluation and keener destination competition from our neighbours.”
When asked about his retirement plans, Mirza shared: “I haven’t decided yet. For now, I want to take it easy and spend more time with my wife and three children.”
To commemorate Mirza’s long service, Tourism Malaysia will be organising an internal farewell reception on November 29, followed by another event for industry players on the following day. His last day of office will be November 30.
Trade reacts to Mirza’s retirement
Mirza’s retirement has evoked reactions from the Malaysian trade members, many of whom hold fond memories of this industry pioneer as well as his contributions and strong support for the tourism sector over the years.
KL Tan, president, The Malaysian Association of Tour and Travel Agents (MATTA), remarked: “MATTA’s success in driving the nation’s tourism industry forward and making Malaysia a preferred travel destination for tourists would not have been successful without the full support of Mirza and collaboration with Tourism Malaysia, both in the country and its overseas offices. Mirza’s support and cooperation with MATTA has created many favourable conditions to the association’s members, such as making Malaysia the European Travel Agents and Tour Operators Associations (ECTAA) Preferred Destination of the Year for 2018 and the selection of Malaysia as the official partner country of ITB 2019.”
Ally Bhoonee, executive director at World Avenues, said: “Mirza’s retirement is a great loss to the tourism industry. Tourism is in his DNA. He has an open door policy and he is a humble, approachable person. I have asked him several times for advice on industry matters and he has always been willing to share.”
Arokia Das, director, Luxury Tours Malaysia said: “I’ve known Mirza for over 30 years, and he has always had a strong passion for the industry and to make Malaysia a premier destination. He has an ear to the ground and he is always abreast of market trends which he kept the travel trade abreast of through proper guidance.”
Anthony Wong, group managing director, Asian Overland Services Tourism & Hospitality Group, said: “Mirza is an industry person, very humble and intelligent and he has supported the industry well, addressing issues to make it an easier environment to work. He has also led many organisations at the international level and supported the industry participation though making Malaysia an active member. This helps to bring many meetings and conferences to Malaysia.”
Uzaidi Udanis, president of the Malaysian Inbound Tourism Association, remarked: “I have known Mirza since 1987 when he was just an officer in Tourism Malaysia. I remember he helped me personally in developing the European market and with that I managed to widen my market to Eastern Europe. As director-general, Mirza has also shown support for MITA Travel Fair and availed himself to all our events which relate to domestic and inbound tourism. I hope that after he retires, he will continue to contribute his valuable experience in the tourism industry.”
Shaharuddin Saaid, executive director, Malaysian Association of Hotel Owners (MAHO), said: “Mirza is a personal friend whom I have known since the mid-1990s. He is highly principled with firm opinions, yet at the same time, good-natured and jovial. During his tenure as director-general, he has been very supportive and co-operative to industry players and stakeholders, MAHO included. He has never failed to show up at our Hari Raya Aidilfitri open houses except on two occasions when he was overseas or out of town. I wish him continued good health and prosperity.”
Data from the jetliner showed that the pilots appeared to struggle with an automated system designed to keep the plane from stalling – a new feature in the 737 Max family.
The Boeing 737’s nose was repeatedly forced down over two dozen times during the 11-minute flight, even when the plane was not stalling – possibly due to a faulty sensor, the report stated.
It is, however, unclear why the pilots did not turn off the automated system.
The report, which did not give a definite cause for the deadly incident, also added that it was too early to conclude if the anti-stall system had contributed to the crash.
KNKT is continuing investigations, with a more detailed report expected to be completed within 12 months.
Boeing, in response to KNKT findings, said it is “deeply saddened” by the loss of Lion Air flight 610.
“As our customers and their passengers continue to fly the 737 MAX to hundreds of destinations around the world every day, they have our assurance that the 737 MAX is as safe as any airplane that has ever flown the skies,” Boeing said in a statement.
Meanwhile, KNKT has recommended that Lion Air improve its safety culture and should ensure the operations manual is followed “in order to improve the safety culture”.
It also urged the Indonesian carrier to ensure that “all operations documents are properly filled and documented”.