An industry hopeful of the benefits that Malaysia’s latest tax changes will bring is reacting in different ways, as the zero-rated goods and services tax (GST) policy kicks into place starting today until August 31, after which it will be replaced by the sales and services tax (SST) from September 1.
Some inbound agents are proactively working to reflect the new zero-rated GST in their contract rates, and others still awaiting more concrete details about the upcoming SST.
Hotels are in the midst of preparing new contract rates due to the zero-rated GST
Ally Bhoonee, executive director of World Avenues, said: “A majority of hotels have not given us new contract rates. Not all hotels are revising rates as some hotels had been absorbing the six per cent GST and giving us nett contract rates since the introduction of the GST in 2015.
“Another headache is that hotels that impose the six per cent GST have their own formula for calculating it. It is not a standard formula.”
Updating rates has been a “labour intensive” process at World Avenues, Ally said. The agency has hired two workers to contact hotels individually for the new contract rates and update its online booking system manually, in addition to processing GST refunds to partners overseas for hotel and tour bookings made from June 1 to August 31.
“We have also inserted a clause on our quotations for bookings made from September 1 onwards that rates are subject to change as the SST rate has yet to be determined by the government,” said Ally.
Another inbound agent, Nanda Kumar, managing director at Hidden Asia Travel & Tours, said he is maintaining the current contract rate pricing for group and incentive quotations. “Once bookings are finalised, we will rectify the rate.”
When contacted, Malaysian Association of Hotel Owners executive director Shaharuddin Saaid, said the Royal Malaysian Customs Department has not engaged them or given any official letters about the zero-rated GST.
Malaysian prime minister Mahathir Mohamad said that the government is looking into whether or not to levy the SST to the old rate of 10 per cent, according to a news report by The Malay Mail, although the system is expected to be a “somewhat updated version”.
The Travel Corporation (TTC) has a new Asia chief, Nicholas Lim, effective today, following the retirement of Robin Yap, who has been named chairman emeritus Asia, a new non-executive ambassadorial role that recognises his 33 years with company.
Lim’s promotion to managing director Asia, reporting to TTC’s CEO Brett Tollman, came after 18 years with the company. Replacing him as president of Trafalgar Asia is Mae Cheah, previously Trafalgar’s regional sales director, who has been with the company for 24 years.
(From left) Robin Yap, Nicholas Lim and Mae Cheah
The appointments reflect a value of the family-owned company, now in its fourth generation, to reward loyal staff and promote from within.
Said Tollman: “The company has always been committed to promote and grow seasoned, proven executives. Their knowledge, proven experience and understanding of our business serves as a valuable foundation for our future growth. We are also pleased that Robin will continue to support Nick and his team in his new role as chairman emeritus and we thank him from the bottom of our hearts for the unwavering, remarkable loyalty and dedication which he had displayed during his long tenure with the company.”
Yap made Insight Vacations, Trafalgar and Contiki Holidays – three of TTC’s brands – household names in Asia long before the Asian outbound markets boomed. On filling his shoes, Lim told TTG Asia: “Robin’s 33 years’ (experience) is always going to be hard to beat, but I suppose 18 years with TTC has its advantages, for example, familiarity with the business and culture.”
Lim sees an opportunity for TTC to tap the rising Asian outbound luxury travel market. The company launched its Luxury Gold brand in the Philippines recently, its fastest-growing source market after Singapore.
Lim said: “Moving forth, while my immediate goal is to grow the existing business, there is also a need to further expand our footprint across Asia especially in the luxury travel space. The main challenge, and opportunity, is getting the brands/products out to the markets and agents across Asia.”
Apart from Trafalgar, TTC’s most important brand, Insight Vacations, Luxury Gold and Contiki, Lim is also responsible for the business development in Asia of TTC’s other key brands Uniworld Boutique River Cruises, Red Carnation, Inspiring Journeys and AAT Kings.
“With a strong management team in place in Asia, we are excited to have Nick now help us replicate the fantastic success he’s had for Trafalgar and CostSaver over the past several years, for our other brands now,” said Tollman.
Yap, in a light-hearted moment, said about his new role: “It’s a nice position where ‘I can watch things happen and not having to make things happen’. I have always believed in succession and 2018 seems to be a good year for leadership change, as we have already seen a few in the business. My motto is, when you are on the job, do a good job and when it is time to pass on the baton, pass it on gracefully but always be available when advice is needed and only when asked.
“TTC has an outstanding team in Singapore at all the brands and I am confident the future is going to be awesome led by Nick.”
A co-branded TTG Asia Luxury and ILTM Asia Pacific issue was distributed at the show. Read the latest issue here
The first ILTM Asia Pacific, held in Singapore from May 21-24, hosted 538 luxury travel planners from 16 countries across Asia-Pacific and saw 33,000 pre-scheduled business meetings, according to organiser Reed Exhibitions.
Feedback gathered at the show by TTG Asia Luxury pointed to a high satisfaction rate overall, with buyers and sellers in sum saying it was a good show with the potential to grow further, and that it was better than its predecessor, ILTM Asia – previously held annually in Shanghai in June – in the sense that products and decision-makers were better matched to Asia-Pacific needs rather than being too China-centric.
A co-branded TTG Asia Luxury and ILTM Asia Pacific issue was distributed at the show. Read the latest issue here
Reed said ILTM Asia Pacific was created following research among suppliers who said they were separating their marketing and business plans for the continent into two: Asia-Pacific and China. Its bet on Singapore as a better hub than Shanghai to pull in more Asia-Pacific buyers paid off: Of the 538 high-end Asia-Pacific travel agents, plus seven from Russia and CIS and 11 from other international countries, 260 were new buyers from 11 countries, with markedly stronger attendance from buyer markets such as Australia – “the most requested”, according to ILTM portfolio director, Alison Gilmore. As well, Singapore and India, which grew by 83 per cent, 115 per cent and 118 per cent respectively.
Andrew Phua, Singapore Tourism Board’s director of exhibitions and conferences, said Singapore “has the ability to bridge East and West”.
ILTM Asia Pacific also issued statements from satisfied participants. First-time ILTM buyer Rakus Cuuabria of Yes Travels, Mumbai, said: “The organisation is fantastic and I’ve (found) some great luxury products and experiences in this really effective system.”
Koichi Imabayashi of Japan’s Grace Inc said: “I’ve met with many different experiences from across the world at ILTM Asia Pacific this week and I’m looking forward to sharing these new and exciting opportunities with my clients.”
Exhibitor Maxine Howe of Niccolo Hotels said: “The calibre of buyers at ILTM Asia Pacific has been exactly what we were looking for. Travelling to wherever we need to and then identifying and meeting these important buyers is impossible, and we are delighted ILTM has made the job so easy for us here in Singapore.”
Mercedes Garcia of Barcelona Tourisme said: “By splitting the regions, this show has given us a real reach into Asia-Pacific buyers. I have seen (agents and planners) from Singapore, Hong Kong and Malaysia, all of whom are sophisticated and know what their premium clients are looking for.”
ILTM Asia Pacific, which also absorbs ILTM Japan, will return to Singapore, May 27-30, 2019. A new ILTM China, meanwhile, will take place in Shanghai from October 31 to November 2, 2018. It is expected to draw around 220 buyers, predominantly Chinese buyers, with just a small percentage from Asia and international markets.
Bottrill (middle in blue tie) is the new chairman of PATA's executive board
Following its recent annual summit in Gangneung, South Korea, PATA has announced its new executive board, with Chris Bottrill, international director and dean of the Faculty of Fine and Applied Arts at Capilano University in North Vancouver as chair, replacing Sarah Mathews, TripAdvisor’s head of destination marketing Asia-Pacific.
Bottrill joined PATA in 2011 and has participated in a range of roles, including as chair of the Human Capital Development Committee and vice chair of the Sustainability and Social Responsibility Committee since 2014. He has also been a trustee of the PATA Foundation for the past three years.
Bottrill (middle in blue tie) is the new chairman of PATA’s executive board
The new executive board comprises Haji Azizan Noordin, CEO, Langkawi Development Authority; Maria Helena de Senna Fernandes, director, Macao Government Tourism Office; Bill Calderwood, managing director, The Ayre Group Consulting; Jon Nathan Denight, president & CEO, Guam Visitors Bureau; Shahid Hamid, executive director, Dhaka Regency Hotel & Resort; Luzi Matzig, chairman, Asian Trails; Benjamin Liao, chairman, Forte Hotel Group; Deepak Raj Joshi, CEO, Nepal Tourism Board; Mohamed Sallauddin Mat Sah, general manager marketing, Malaysia Airports Holdings; and Gerald Perez, managing director, Leading Edge.
Haji Azizan Noordin was also elected as the new vice chairperson, while Maria Helena de Senna Fernandes was elected secretary/treasurer.
In addition, Peter Semone, president & founder – Destination Human Capital, Ireland and Soon-Hwa Wong, CEO – Asia Tourism Consulting, Singapore have been appointed to the executive board as non-voting members.
Abdulla Ghiyas, president – Maldives Association of Travel Agents and Tour Operators and PATA Face of the Future 2018, also joins the PATA executive board as a non-voting member and observer for a one-year term.
Park Hotel Group has unveiled the revamped Grand Park City Hall, ahead of the hotel’s final phase of transformation scheduled to be completed by 3Q2018.
The 343-room Grand Park City Hall, located on Coleman Street in Singapore’s Civic District, forms part of Park Hotel Group’s upcoming mixed-use lifestyle precinct comprising City Hall Square, a new dining, shopping and entertainment destination set on the conservation site of St Gregory Place.
Grand Park City Hall’s facade
Following the completion of 186 brand-new rooms, the final phase of transformation will feature an additional 157 guestrooms and suites, a new gym facility, a new swimming pool as well as a new rooftop garden event space.
On the top floors of the hotel, a collection of suites offers private gardens along with in-built Jacuzzis.
Six pairs of interconnecting child-friendly rooms are specifically designed with families in mind, complete with colourful bean bag chairs, an activity desk, a magnetic blackboard wall and rolling paper for kids. Crystal Club guests will also have access to the new Crystal Club Lounge and its privileges.
Influenced by its historical location, the hotel interiors and spaces are presented with a mix of neoclassical designs and clean lines incorporating Peranakan pattern tiles, vintage statement pieces and artwork of local landmarks.
As part of the restoration work, the hotel will also feature new architectural design elements including a new bronze arch gate fronting the entrance to the hotel’s colonial-style façade.
Crystal Club Deluxe Room
Grand Park City Hall is piloting a mobile application that allows guests to digitally check-in and go straight to their room with their digital key, with the authentication process completed by guests taking a selfie on their mobile phones.
The same application can enable guests to adjust in-room lighting and climate cooling, request for extra amenities such as towels and bottled water, and connect with the hotel’s guest services manager directly.
Radisson Phu Quoc to join a Radisson Blu property on the island
Radisson Hotel Group has continued to expand its footprint in Vietnam with the signing of the country’s first Radisson resort, located on the island of Phu Quoc.
Nestled on Truong Beach, Radisson Phu Quoc will feature 218 sea-facing rooms and suites, with private balconies or terraces, a choice of outdoor swimming pools, a spa, fitness centre and kid’s club.
Radisson Phu Quoc to join a Radisson Blu property on the island
A selection of dining options will also be available, including the all-day-dining restaurant serving international cuisine, a speciality restaurant, and lobby lounge.
Radisson Phu Quoc will be located within a five-minute drive from Phu Quoc International Airport, which was recently expanded and now welcomes longhaul international flights from Europe.
“The introduction of Radisson Phu Quoc, alongside the upper-upscale Radisson Blu Resort Phu Quoc, will provide guests with two vacation options in this up-and-coming destination. Moving forward we will continue to seek opportunities to expand our presence across this country,” said Katerina Giannouka, president, Asia Pacific, Radisson Hotel Group.
This June, Thailand-based U Hotels & Resorts is celebrating its 10th anniversary with a series of promotions and giveaways.
The first is a stay at any U Hotels & Resorts property for just 1,000 baht (US$31) per room per night. This rate is available on all Sundays, Tuesdays, and Thursdays in the months between June 2018 to March 2019, but reservations must be made between June 1-10, 2018, at www.uhotelsresorts.com.
U Khao Yai
Throughout June 2018, every property’s restaurant will boast 10 dishes and 10 drinks which are priced at 100 baht each.
The group is offering a chance to win stays at its resorts in Thailand and Indonesia.
The grand prize is a free two-night stay at U Paasha Seminyak Bali including return flight tickets for two, while the 10 runner-up prizes will be 10 one-night vouchers, one for each of their 10 hotels – U Chiang Mai, U Inchantree Kanchanaburi, U Zenamya Phuket, U Sukhumvit Bangkok, U Pattaya, U Sathorn Bangkok, U Khao Yai, U Nimman Chiang Mai, U Tropicana Alibaug and U Janevalla Bandung.
UK-based wholesale travel company has appointed two sales & business development managers, Carrie Lo Sze Wai and Levin De Melo, to grow its presence and boost sales in Asia-Pacific.
In their new roles, Lo will be responsible for growing Travellanda’s business in Asia, with a heavy emphasis on China, while De Melo will cover India, the Middle East, UK, US, Portugal and Brazil.
From left: Carrie Lo Sze Wai and Levin De Melo
Lo has a decade of experience working in the travel industry in Hong Kong in a variety of sales, business development and customer relations positions for companies such as Gateway, Pacific Leisure, Miki and JacTravel.
Meanwhile, De Melo has over two decades of experience under his belt in in sales, marketing and general management roles in travel in India and Dubai. He has worked for companies such as Destinations Unlimited, Sunny Tours, DTTS, Alshamel Holidays, GTA and Global DMC.
Located in the newly-fashionable district of North Point on Hong Kong Island, Hotel VIC on the Harbour boasts spectacular panoramic views of Victoria Harbour and direct access to a newly-created waterfront promenade. The twin-tower hotel is designed for upwardly mobile, young and savvy tourist and business travellers looking for unbeatable comfort and quality service. Links to Hong Kong’s superb public transport network, including the MTR and ferries, are just steps away from the hotel.
Hotel VIC features 671 affordable luxury guestrooms and suites. Executive guests can enjoy exclusive benefits at Club VIC, a spacious retreat on the 22nd floor where they can relax, enjoy panoramic views over Victoria Harbour and prepare for their next voyage. The adjoining Boardroom is equipped with high-speed WiFi and the savviest technology facilities to accommodate meetings of up to 12 people.
Image: All guestrooms come with harbour viewImage: View from suite
Hotel VIC’s hospitality extends to the high-tech world of super-connectivity. In addition to complimentary lightning-fast WiFi available throughout the premises, the hotel features online check-in / out service; guestrooms equipped with flat-screen televisions offering IPTV service; and a tailor-made smartphone app that puts services like in-room dining, table reservations, networking and multimedia entertainment at guests’ fingertips.
Dining options include The Farmhouse, an all-day restaurant offering international cuisine, with both indoor and outdoor seating overlooking the harbour. Adjoining the restaurant is The Farmhouse Deli, featuring a mouth-watering selection of freshly-made pastries and cakes to accompany our special house-brewed coffee or a wide range of teas. Cruise is a sophisticated rooftop restaurant and bar with a romantic outdoor area providing panoramic views of the harbour.
The hotel’s comprehensive fitness facilities allow you to work out anytime in the 24-hour state-of-the-art gym or hit the laps daytime at the rooftop outdoor swimming pool, with the further option of relaxing in the sauna and steam rooms, or experience an innovative fitness journey with the VR flying machine.
Image: VR flying machine
Hotel VIC on the Harbour has been built to the most exacting standards through the combined star power of renowned award-winners Rocco Design Architects Ltd as project architect; Hirsch Bedner Associates as guestroom interior designer; and AFSO as interior designer of other key areas of the hotel.
The hotel is now accepting booking and is due to open in Summer 2018.
Yeo: “If your heart is big, your home can accommodate a lot of guests.” Watch the video here
Today is Lionel Yeo’s last day as CEO of the Singapore Tourism Board (STB), and as a public sector leader for 22 years. He wants to cross over to the private sector, saying he “is open to all opportunities”, including in travel & tourism, when TTG Asia asked him about his next move.
In an exit interview, Yeo believes Singapore is only at the cusp of a travel boom despite the country receiving a record 17.4 million visitors and S$26.8 billion (US$20 billion) tourism revenues last year over 2016.
“What surprises me now (after six years with STB) is how much more the sector still has to grow. We are really at the cusp of a travel boom and I think a lot of us are underestimating the potential of travel & tourism to grow (especially from Asia).
Yeo: “If your heart is big, your home can accommodate a lot of guests.” Watch the video here
“I was in Yogyakarta recently. When you talk to the Grab driver or hotel staff, they all have the aspiration to want to see the world. And there are millions like them in Indonesia, Vietnam, China, India. We know about it intellectually as Asia is often flagged as the region with the strongest outbound growth, but it’s when you go around that you see there is a lot of pent-up demand,” he said.
Yeo isn’t worried that Singapore will hit overtourism, even as more growth will come from Asia and STB targets big-volume markets such as cruises and MICE. Asia already comprises 80 per cent of arrivals, with the bulk of Asian arrivals coming from three big-population countries such as China, India and Indonesia, while South-east Asian markets are also rising. A mature destination with limited land, the country now has thrice the number of arrivals as its population of around 5.5 million people.
Tackling the density issue, Yeo pointed out that with 17.4 million arrivals staying 3.5 days, Singapore has only 150,000-200,000 visitors on any given day. “That’s the number you need to compare with the resident population of 5.5 million. In that context, I don’t think we’re at a huge risk of overcrowding as a result of tourism activities,” he said, adding Singapore is also able to manage people flows well.
“However, it’s important that we’re still going for yield when we grow tourism numbers. We want to make sure every visitor makes a good contribution to our economy; that informs the way we go after the target audience in each source market,” he said.
When asked what number of visitors on any given day would make it unmanageable, Yeo said: “You may arrive at a pure physical number. I think, though, for any society, any country, there is another aspect which is, really, how big is your heart? And if your heart is big, your home can accommodate a lot of guests. If your heart is small, even with one guest, you can get a bit annoyed.
“We’re people who are traditionally open. We’re a small country; we’ve always been open to global flows and we ourselves travel a lot, so we accept that wanting to travel and see the world is very much a part of what humans want to do.”
Yeo counts his biggest achievement as developing tourism as part of the broader lens of national development, not something that is separate or opposed to national development. “As we talked about earlier, in some other parts of the world, tourism development is not necessarily welcomed by locals. That’s absolutely something we have to get right in Singapore and I thought the best way of doing that is having tourism development as part of the objective of national development,” he said.
Passion Made Possible, a country branding as opposed to just a tourism branding created by STB and the Economic Development Board, has helped the locals accept travel & tourism. It is used internationally by the two bodies, but also by other Singapore government agencies, many of which concern themselves with locals. The brand thus is exposed to the domestic audience as well.
Spotlighting Singapore talent – local chefs, designers, artists, etc – to enliven a destination story – it creates a sense of civic pride among Singaporeans which in turn creates a tourism ’host’ spirit among locals, said Yeo.
“We must make sure our hearts remain open and welcoming,” he said.
“For people who work in the sector, it may seem obvious that tourism is important, that tourism contributes. But for those outside of it, their starting point may be the negatives, the trade-offs to be made (for tourism contribution)…It’s important to keep in mind that there is community support for what we do. Don’t take it for granted that everybody thinks our sector is the one that should grow.”
His advice on preparing for future growth? It’s a mistake to think that the growth of tomorrow will look like the growth of yesterday, he said.
“So staying on top of consumer trends, travel trends, media trends, are important so you are well positioned to capture that growth. Because the traveller of tomorrow will not be who you were used to. You may have more potential travellers but their preferences, media habits, might be quite different. This is a sector that moves quickly, so all of us have to keep abreast of these developments.”
Meanwhile, Melissa Ow, currently STB deputy chief executive, is acting CEO until Yeo’s replacement is named.
In tomorrow’s Part II interview with Yeo: High and low points in helping travel agencies transform in the past six years
