TTG Asia
Asia/Singapore Sunday, 28th December 2025
Page 1445

Trade scrambles to manage bookings with Boracay’s impending closure

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Questions such as how long the closure would last hang overhead for tourism players in the country

With just a month to go before Boracay’s closure, the travel trade is bemoaning the lack of details on the government’s drastic decision that will heavily impinge on business and the Philippines’ economy.

The government has been shutting down establishments found violating the law and environmental regulations, but the Department of Environment and Natural Resources last week recommended the full closure of the island to give sufficient time for an undisrupted cleanup, according to media reports.

Questions such as how long the closure would last hang overhead for tourism players in the country

Christine Ibarreta, president, Hotel Sales and Marketing Association (HSMA), said Boracay stakeholders should be made aware of the details of the plan “they have to manage bookings that will be displaced during the period covered either for change of booking dates or relocation of guests to other resorts together with their booking partners, travel agents or conference organisers”.

They also have to “manage manpower leaves, relocate to sister properties or others, (make) provisions for the duration of the closure” as well as inform the market on changes.

Hotels, in addition, have to draw up operation plans to mitigate the adverse effects of the shutdown – including drop in revenue, displaced workers and inconvenienced business partners.

One area the trade wants clarification on is whether Boracay will be closed for two or six months, or a year. “All these (questions) are hanging over our heads,” said Mary Ann Ong, general manager of Luxus Pacific Travel and Tours specialising in inbound from China, the island’s biggest foreign market next to South Korea.

While chartered flights from China have not been cancelled, they are likely to be diverted to other destinations in the country or abroad like Phuket, Pattaya or the Maldives once Boracay is closed. It will be difficult for these flights to return to Boracay if they are dealt good business in other countries, Ong warned.

Sharp Travel Service no longer accepts bookings to Boracay on the dates likely to be covered by the island’s shutdown, said tour operations manager Benjie Bernal.

Marjorie Aquino, senior sales and marketing manager, Blue Horizons Travel and Tours, revealed that the company has blocked FIT bookings and back-to-back blockings for certain seasons affected by Boracay’s shutdown.

She said that declaring Boracay under the state of calamity and shutting it down, as announced by the government, will fall under force majeure. Travel agencies will refund passengers who paid their bookings. If the agencies have already paid the hotels for the bookings, the amount will become credit rate for future use.

Cruise tourism in Boracay, the second most popular cruise destination in the Philippines after Manila, is expected to be affected by the closure as ships with scheduled sailings to the destination will now have to look for alternatives, remarked Travel Experts consultant Arnie Bayag.

The trade fears Boracay’s closure will tar the Philippines’ image as a beach destination. At the recent ITB Berlin, for instance, a participant noted the last-minute changes in the Philippines booth, replacing Boracay on the photo wall with mountains.

The same happened at the recent Seatrade Cruise Global expo in Florida when Boracay was not featured in the photo wall of the Philippines booth.

Bali’s Benoa plays catch-up with new cruise terminal to be ready year-end

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New cruise terminal will be able to accommodate volume brought in by 44 Boeing 737 planes, some say

Industry players are eagerly anticipating the completion of a cruise terminal at Bali’s Port Benoa late this year after multiple delays, with the enhanced infrastructure expected to help address capacity strains at Denpasar airport and boost tourism numbers.

Once construction is completed, the Port of Benoa is expected to transform into a world-class port that can accommodate three cruise ships at once as well as hundreds of yachts. Currently, cruise ships stopping in Bali have to moor off shore and passengers are transported ashore on small boats.

New cruise terminal will be able to accommodate volume brought in by 44 Boeing 737 planes, some say

Ida Bagus Agung Partha, chairman of Bali Tourism Board, said the cruise terminal was vital for the island with Denpasar airport’s current shortage of capacity. So far, cruise ships visit Bali more frequently than any other ports in Indonesia.

“We hope Benoa Port will open soon (as it has been delayed several times), as Bali is a hub to Indonesia and also being the central of tourism activity,” he said.

Indroyono Soesilo, special advisor to the tourism minister on marine tourism development, said that the Benoa Master Plan was focused on optimising supporting facilities, which would entail dredging the sea 12m deep and widening the area up to 200m.

“The Cruise Ship Terminal will be able to accommodate 5,000 passengers and 1,500 crew members, or equal to 44 Boeing 737 planes,” he said.

The future Benoa Port is also equipped with supporting facilities such as hotels, shopping centres, restaurants and convention centre.

According to state-owned port authority Pelindo III, Benoa Port has been battling a decrease in cruise ship arrivals due to the lack of infrastructure. In 2015, Pelindo III only attracted 58 cruise ships with 68,534 passengers and the figure was down to 53 cruise ships and 62,859 passengers in 2016. The figure for 2017 was not available at press time.

There are also plans to develop a second port in northern Bali. The new facilities at Celukan Bawang Port will accommodate seven ships at a time, each with a capacity of up to 1,000 passengers.

“Celukan Bawang Port already has the sea level that fits the standard so no further dredging is needed. The huge area of the part provides easy access for hundreds of vehicles to transport arriving tourists to attractions,” Indroyono said.

The government will also develop five other ports, such as Belawan in North Sumatera, Tanjung Priok in Jakarta, Tanjung Perak in Surabaya and Soekarno-Hatta in Makassar.

Such developments are in line with the government’s programme to develop the cruise business and become a regional cruise hub in the region.

Tourism minister Arief Yahya said in in 2016 that 260,000 tourists arrived in Indonesia on cruise ships, an increase of 30 per cent from 200,000.

Last year, visiting cruise ships made 350 calls with 320,000 passengers. The figure is expected to rise to 420 calls and 350,000 passengers in 2018.

The minister said: “Compared to cruise traffic in Singapore per-year, Indonesia still lags far behind. Singapore gets approximately 1.2 million passengers per year.”

The country seeks to boost visitors to 500,000 passengers and at least 500 cruise calls by 2019, he added.

Airbnb takes on OTAs in open letter to hoteliers

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Airbnb says absence of long-term contracts among the merits of listing on its platform rather than OTAs

Having declared its intentions to be ‘for everyone’, Airbnb last week penned an open letter to “boutique hotels and B&B owners”, touting its lower fees compared to hefty commissions charged by OTAs.

“Time and again, small business owners told us that the fees charged by travel agents like Expedia and Booking – which can be as high as 30 percent – are too high,” the home-sharing giant wrote in the letter.

Airbnb says absence of long-term contracts among the merits of listing on its platform rather than OTAs

“We want Airbnb to be for everyone, including professional hospitality providers that offer unique spaces and personal hospitality to the Airbnb community.”

Besides lower commissions fees, the absence of long-term contracts allows independent hoteliers to “have full control over when (their) inventory appears on Airbnb” and need not compete against big chain hotels on the platform, it claimed.

Airbnb said the addition of four property types – Vacation Home, Unique Space, B&B and Boutique – will enable hosts to better classify their accommodation better and attract Airbnb users.

It also hinted that a new guest membership programme, slated for a roll-out later this year, will help hospitality providers better manage their inventory.

MATTA deepens trade links in lead-up to Visit Malaysia Year 2020

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MATTA is also partnering Indonesian association to boost arrivals

The Malaysian Association of Tour and Travel Agents (MATTA) has joined forces with the Malaysian Association of Hotels (MAH) to develop a B2B and a B2C booking platform to help members better compete in the digital marketplace, one of its recent partnerships forged with trade associations.

Through the platform, MAH hotel members will provide inventory for MATTA member agents to purchase at competitive rates.

MATTA is also partnering ASITA to boost arrivals

MATTA president, KL Tan, said: “This collaboration with MAH will benefit both parties. It will allow hotels and agents to compete more effectively with OTAs. Hotel inventory will also be more widely available to the 3,200 odd MATTA members and at good rates. The booking platform will empower agents to sell directly to consumers through the B2C platform. Eventually the system will incorporate the sale of tour packages as well as tickets to attractions and events.”

The platform, focused on promoting inbound and domestic travel, is timely as tourism industry players prepare for Visit Malaysia Year 2020 campaign, a national initiative spearheaded by the Ministry of Tourism and Culture Malaysia which is expected to generate 36 million tourists and RM168 billion in tourism receipts.

On the development of the booking platform, Tan said: “We are collaborating with the National ICT Association of Malaysia for the design, development and operation. We hope to kick start the project by mid 2018 and for the platform to be operational in early 2019.”

Separately, MATTA has also partnered the Association of Indonesian Tours and Travel Agencies (ASITA) to boost visitor arrivals to Malaysia and Indonesia.

Tan said: “With more than 50 flights per week between Malaysia and Indonesia, MATTA and ASITA will be able to promote both countries as a single destination for longhaul markets. Such arrangement can be brought to a new level due to better air connectivity between both countries.”

Moreover, with Indonesia being Malaysia’s second top visitor source market contributing over 2.7 million arrivals last year, MATTA aims to grow the number to 3.4 million by 2020.

Singaporean convicted of unlicensed travel agent activity

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Kee sentenced to 12 months in prison

An individual in Singapore has been convicted for carrying out the business of a travel agent without a valid licence.

A total of 27 charges were brought against Bambi Kee Kim Noi, who was fined a total of S$7,500 (US$5,702) in default of 25 days’ imprisonment for five such charges. The remaining 22 charges were taken into consideration for the purpose of sentencing.

Kee sentenced to 12 months in prison

Kee was also charged and convicted for a related offence under the Penal Code, and sentenced to 12 months in prison for criminal breach of trust by her misappropriating monies entrusted to her by consumers as an agent.

Under the amended Travel Agents Act that took effect on January 1, 2018, any person found guilty of carrying on the business of a travel agent without a valid travel agent licence faces a maximum fine of S$25,000 – an increase from S$10,000 – and/or imprisonment of up to two years.

Investigations revealed that Kee started her unlicensed travel agent activities in 2012, when she had claimed to be a freelance travel agent and sold air tickets and hotel accommodation vouchers. In early 2013, Kee ran into financial difficulties but continued to take on consumer transactions without fulfilling them, thereby affecting 16 consumers who then lodged police reports.

In a statement, the Singapore Tourism Board said it “takes a serious view against those who engage in unlicensed travel agent activities” and will take action against them to protect consumer interests and uphold the destination’s reputation.

Peach-Vanilla merger to create Japan’s biggest LCC

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Peach Aviation is a consolidated subsidiary of ANA

The potential merger of All Nippon Airways’ budget subsidiaries Peach Aviation and Vanilla Air come 2020 is expected to give rise to Japan’s biggest LCC, overtaking Jetstar Japan.

According to a Nikkei report, details of the merger will be settled later, but for now it is understood that the Peach name will be retained “for developing the broader market”.

Peach Aviation is a consolidated subsidiary of ANA

The merged LCC could supersede Jetstar Japan to become the top domestic budget carrier in the country. Peach and Vanilla units rank second and third among domestic LCCs, with their combined sales of roughly 76 billion yen (US$716 million) in the year ended March 2017 eclipsing that of Jetstar Japan.

Nikkei further reported that maintenance and crew jobs at both airlines will be kept post-merger, while both airlines will also be able to share pilots since both fly Airbus A320 planes.

Klook adds two new key executives for global expansion

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Liu (left) with Ngai

Tours and activities booking platform Klook has announced the appointment of two key executives to drive its expansion worldwide.

Hired as chief revenue officer, Anita Ngai will be responsible for widening Klook’s revenue sources. Her top priorities will include scaling up marketing channels, furthering partnerships and deepening overall presence with trade, technology collaborators, and consumers in Asia-Pacific, the Americas and Europe.

Liu (left) with Ngai

Prior to joining Klook, Ngai was general manager for the Asia-Pacific business of Viator and head of marketing, Asia-Pacific for Expedia’s Hotels.com. She has worked for Link Asset Management, Asia’s leading REIT as head of corporate strategy & digital business development; and McKinsey & Company in New York and Greater China, consulting for companies in travel and logistics, consumer goods and retail sectors.

David Liu has been promoted to chief product officer to drive Klook’s product innovation and user experience. He had joined Klook in 2016 as vice president of product and UX, bringing with him experience in building up e-commerce, messaging and social network products for China’s Tencent and Yahoo.

Avani eyes year-end launch of third Bangkok hotel

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Avani's third Bangkok property will form part of Century The Movie Plaza 2

Avani Hotels & Resorts will add a third Bangkok location to its portfolio when a new hotel opens in Sukhumvit’s up-and-coming On Nut and Phra Khanong neighbourhoods by the end of 2018.

Located 30 minutes from Suvarnabhumi International Airport, the 382-key newbuild be part of the Century The Movie Plaza 2 retail complex, providing guests with shopping, dining and entertainment choices, as well as direct access to Bangkok’s Transit System.

Avani Sukhumvit Bangkok Hotel will feature an all-day dining restaurant, event spaces, meeting rooms, a spa and a gym.

Avani’s third Bangkok property will form part of Century The Movie Plaza 2

Avani currently operates 23 properties in Asia-Pacific, the Middle East, Africa and Europe, most recently debuting in both Australia and New Zealand. The brand has a pipeline of properties under development, including in new destinations such as Laos, South Korea, the Maldives, Mauritius, Tunisia and Oman.

Simon Dell heads soon-to-launch Mövenpick Asara Resort & Spa Hua Hin

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Mövenpick Hotels & Resorts has appointed Simon Dell as general manager of Mövenpick Asara Resort & Spa Hua Hin, a seafront resort opening later this year in Thailand.

Prior to joining Mövenpick, Dell was vice president & area general manager for Onyx North Asia.

During the course of his two-decades-long career, the seasoned hotelier has also served in senior management roles with hotel groups such as InterContinental, Raffles, Swissôtel and The Savoy Group. He has spent the last decade in Asia-Pacific, with several years based in Thailand.

The UK national first moved to Asia in 2007, initially as director of rooms at The Mandarin Oriental, Hong Kong, before moving on to Amari Hotels & Resorts, now part of Onyx Hospitality Group.

NCLH says cruising is more popular than ever for Malaysians

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Mediterranean and North European cruise destinations popular with Malaysians

Norwegian Cruise Line Holdings (NCLH) saw double-digit growth in the Malaysian market across all three of its brands last year, while also observing a shift towards longer cruises.

According to Felix Chan, vice president of sales Asia, NCLH, bookings from Malaysia were in part boosted by a dip in the US currency.

Mediterranean and North European cruise destinations popular with Malaysians

Cruise destinations popular with Malaysians are the Mediterranean, Baltics and Northern Europe. “Hotel rates, transport and dining in these places are expensive, which is why cruising is a popular alternative and seen as value for money,” he shared.

More Malaysians were also opting for longer cruises of up to 14 days, up from seven to 10 days previously. Chan remarked that the availability of Wi-Fi onboard, which allowed guests to stay connected while cruising, was the key reason driving this trend.

Regent Seven Seas Cruises and Oceania Cruises tend to attract couples whereas Norwegian Cruise Line attracts multi-generational travellers from Malaysia. “We also see more families with children taking cruises during the school holidays,” said Chan.

Malaysian cruise travellers are also booking their cruises earlier last year, at least six months in advance, from two to three months previously.

For 2018, Chan expects continued growth in Malaysia. “Forward bookings look positive and I am sure we will see another double-digit growth this year (over 2017),” he said.