TTG Asia e-Daily will be taking a break for Vesak Day tomorrow. News will resume on May 30, 2018.
Here’s wishing all our readers a happy Vesak Day!
Double-digit growth in tourist arrivals, revenue to Thailand in first four months
Thailand started the first four months of 2018 with international arrivals climbing 13.9% year-on-year to 13.7 million, led by growth from India and China.
Pongpanu Svetarundra, permanent secretary, Ministry of Tourism and Sports, shared at a press briefing that tourism income in January-April 2018 was 730.7 billion baht (US$22.8 billion), up 17.6% from the same period in 2017.
The results in the first four months show growth coming from all regions except the Middle East, with declines in arrivals from the UAE, Saudi Arabia and Egypt.
Visitors from East Asia totalled about 8.9 million (+17.5%), Europe over three million (+9.8%), the Americas 599,431 (+3.6%), South Asia 607,379 (+15.2%), Oceania 296,741 (+0.3%), the Middle East 237,322 (-6.8%) and Africa 59,371 (+7.1%).
About 64.9% of total visitors originated from East Asia, making it the largest feeder region for Thailand. China, Thailand’s top source market, recorded 4.2 million.
South-east Asian countries generated over three million arrivals, with growth from Cambodia (+25.1%), Laos (+13.2%), Vietnam (+6.5%), the Philippines (+5.8%), Singapore (+4.4%), Indonesia (+3.7%) and Malaysia (+1.6%). The only declines were from Brunei (-9.2%) and Myanmar (-3%).
In Europe, Russia retained its status as the largest source market in the region with arrivals of 745,398, up 25%. Germany was the second highest source market with 386,951 (+7.7%), followed by the UK with 371,054 (+0.4%) and France with 342,825 (+3.7%).
Strong growth was also reported from East Europe (+14%) and Austria (+18.7%), Denmark (+8%), Finland (+8%), Italy (+7.7%) and the Netherlands (+7%); the exception was Sweden, which declined by 2.3%.
The main market in the Americas, the US, generated 396,330 arrivals (+7%). Arrivals from Canada were up 10.4% to 113,881. Declining source markets from Latin America include Brazil (-20.3%) and Argentina (-25.7%).
As for South Asia, India topped the list with arrivals up by 16.9% to 481,573. Other growing markets include Bangladesh (+19.4%), Pakistan (+2.7%) and Sri Lanka (+1.3%). Nepal (-0.4%) was the only market that saw a decline.
Small increases were seen from Oceania markets. Australian visitors were up 0.03% to 261,496; and arrivals from New Zealand increased 1.8% to 34,133.
Myanmar goes from undersupply to oversupply of hotels
Myanmar is currently grappling with hotel oversupply as a swathe of properties continue to open while tourist arrivals fall short of the country’s target.
Su Su Tin, managing director of Sanctum Inle Resort and Yangon Excelsior Hotel – slated to open in July – said the limited room supply during the sudden tourist boom between 2011-2013 triggered a surge in interest from investors looking to fill the gap.
The influx in investment was further fuelled by the Ministry of Hotels and Tourism’s (MoHT) announcement in its 2013 tourism master plan to attract 7.5 million international visitors by 2020.
However, Yangon International Airport welcomed 5.9 million passengers in 2017, of which 66 per cent were international. While this represents an 8.5 per cent increase year-on-year, it is far from the predicted growth of arrivals.
Edwin Briels, managing director of Khiri Myanmar, said: “There will be an undersupply of tourists. For example, Bagan had 380,000 tourists last year; that’s nothing, we need to get more tourists to these destinations.”
Figures from MoHT reveal that as of March 2018, there were 1,628 hotels and guesthouses with 65,470 rooms across the country. More properties by major players are slated to open their doors this year.
Bertie Lawson, managing director of Sampan Travel, said: “Many of these hotels thought tourism was going to boom. When they, (the boom in tourism did not happen) and it’s causing a lot of stress for hoteliers.”
Despite this, the industry remains positive. Su Su Tin said the result is more competitive prices, attractive packages and an increase in quality of services – all positive selling points for tour operators.
May Myat Mon Win, Myanmar Tourism’s marketing chairperson and Chatrium Hotel’s general manager, said that moving forward, it is vital that expansion of hotel rooms should be in line with destination planning.
“What is the current capacity? What do we expect? For example, Hpa An is a rising destination but it’s a small town. If we suddenly have a load of five-star hotels cropping up, it will change the landscape. I am confident the situation will balance out in the future, but these new destinations need to be planned properly,” she said.
New hospitality management company to debut wellness-meets-art hotel in Rayong
Thai real estate developer Mida Assets is collaborating with Singapore-based Wellity to launch Aksorn Rayong, The Wellity Collection, a property integrating science-driven wellness and an arts and culture theme on the Laem Mae Pim coastline in the eastern Thailand province.
Anthony Jude Tan, CEO and co-founder of MW Wellness Management, established in 2017 a joint venture between Wellity and Mida Assets, explained that the Rayong property is the first hotel to combine features of both Aksorn, an arts and cultural concept-theme hotel brand, and The Wellity Collection, an integration of medical wellness aspects based on evidence-research for hotels and resorts.
Wisood Leosivikul, president and managing director, Mida Assets and co-founder of MW Wellness Management, added: “We’ve invested over 20 million baht (US$627,000) with Wellity to set up MW Wellness Management (last year), with over one billion baht budgeted to build Aksorn Rayong, The Wellity Collection.”
Of this amount, an estimated of 35 million baht alone was pumped into the project specifically for wellness equipment and element fittings.
The first resort under MW Wellness Management devotes equal emphasis to health and hospitality, distinct from “wellness retreats with accommodation options”, said Vincent Tan, COO of Wellity.
“The resort, as with all upcoming Wellity Collection properties, paves the future in the hospitality and tourism industry by incorporating science-based wellness features into every facet of guests’ experience,” he elaborated.
An example of a treatment offered is the Wellity Center’s Ozone Infrared Therapy, which uses a “deep penetrating heat that promotes sweating at lower temperatures”.
Beyond Thailand, The Wellity Collection brand is also present in Malaysia, China and Vietnam. There are plans to expand to the rest of Asia in the coming years, Tan said.
Vietnam grants casino license to Laguna Lăng Cô
The Laguna Lăng Cô integrated resort in central Vietnam is expected to have a casino by 2022, after being awarded the first casino licence to be issued by the Vietnamese government in 10 years.
At the recent Vietnam-Singapore Business Forum 2018 in Singapore presided by the Vietnamese prime minister Nguyen Xuan Phuc, the license was presented by chairman of the Provincial People’s Committee Nguyen Van Cao to executive chairman of Banyan Tree Holdings Ho Kwon Ping.
This license issuance kicks off the second phase of development at the Banyan Tree-operated resort. Said Ho: “Many hotel investors and development funds have been awaiting the casino license and the selection of a casino operator before finalising their investment into (the property’s second phase).”
The five-year-old property is undergoing an expansion from 2018 to 2022, expected to see investment capital increase from US$875 million to US$2 billion.
Laguna Lăng Cô’s first phase of development, with an investment value of US$285 million, comprises both Banyan Tree and Angsana hotels, a 18-hole championship golf course designed by Nick Faldo, luxury private villas and residences, convention facilities, recreational activities and beachfront land for six more hotels, part of a 280ha project.
Ramzy Fenianos joins Radisson as APAC chief development officer
The Radisson Hotel Group, as part of its new strategic and operating plan to expand in the region in the next five years, has appointed Ramzy Fenianos as chief development officer for Asia-Pacific.
Joining the company’s Asia-Pacific headquarters in Singapore on June 11, Fenianos will oversee all aspects of the group’s regional development activities, including leading the Asia-Pacific development team in identifying new opportunities to drive growth and strategic expansion of the group’s hotel portfolio.
He will also be a member of the Asia Pacific executive committee, according to a statement.
Prior to joining Radisson, Fenianos was based in Dubai as vice president, development EMEA, for Minor Hotels.
With more than 15 years of experience in the real estate and hospitality sectors, he has held key positions with several other major companies, including Dubai Holding Group and Starwood Hotels & Resorts Worldwide.
Qantas rolls out new technology platform for agents
Qantas has launched a new technology platform to enhance its retailing, booking and servicing capabilities for trade partners, enabling them to provide their customers with a more personalised experience.
The Qantas Distribution Platform (QDP) improves the functionality of indirect agent channels by closely aligning them with the capabilities currently available via qantas.com, making it easier for trade partners to sell Qantas products and provide more seamless customer service.
Qantas trade partners will have access to richer content relevant to a customer’s journey, including images of cabins and meals and the ability to book extras such as Extra Legroom seating. It will also provide Qantas Frequent Flyer information and tier status at the point of sale.
The airline’s chief customer officer Vanessa Hudson said the platform is a key part of a broader digital evolution of Qantas’ booking channels and an important step in the delivery of the best possible experience for trade partners and customers.
“There have never been more ways for a customer to research and book their travel. We want to make the booking experience as seamless and enjoyable as possible, no matter their booking channel preference. This new platform will help us provide that to our trade partners and customers, modernising the way Qantas delivers content.”
QDP was developed in partnership with travel technology company Farelogix, and utilises IATA’s New Distribution Capability (NDC) industry standard. The new Qantas platform has been certified to NDC Level 3, IATA’s highest certification.
Travelport, Serko and CTM are among early adopters of the QDP, and Qantas is currently working closely with other GDS and agency partners to adopt the new technology and innovate as the platform evolves.
Trade partners are able to access the QDP either via approved partner connections, or directly by developing a connection to Qantas’ NDC XML Application Program Interface.
For more information, please visit the QDP website qantas.com/NDC.
Hotelbeds boasts expanded ancillary bank
The integration of Tourico Holidays and GTA ancillary units into the Hotelbeds Group has given the group a much bigger ancillary bank, a significant step for the group which now sees this category of products as a core part of its growth strategy.
Carlos Muñoz, bedbank managing director at Hotelbeds Group, stated: “This fast-growing area for our group forms a core part of our strategy for growth by offering the 60,000-plus travel intermediaries around the world who use our platform the opportunity to upsell their customers with the full range of travel needs and experiences.”
The group has confirmed that Javier Arévalo will be director of ancillary bank, while three dedicated regional sales & sourcing roles for ancillary bank have also been introduced to ensure the company is optimising cross-selling opportunities.
The company is also reshaping its hotel extras brand, which provides in-destination and in-origin distribution of ancillary products to hospitality industry partners, mainly accommodation suppliers, cruise lines, activity providers, tourism boards and other in-destination points of sale.
With the integration of Tourico and GTA products, the group’s ancillary bank now boasts an expanding offering comprising cruise products from over 16 cruise companies; over 18,000 activities and 24,000 transfer routes worldwide; 400 theme and water parks including Disney Parks, Universal Parks & Resorts, SeaWorld Parks & Entertainment, Legoland, Port Aventura World and Parques Reunidos; 230 round trips and car rentals from the group’s B2B car rental brand Carnect, which offers 500-plus car rental companies.
New hotels: Dusit Princess Moonrise Beach Resort, DoubleTree Resort by Hilton Penang and more
Dusit Princess Moonrise Beach Resort, Vietnam
Dusit International has made its debut in Vietnam with the opening of its latest property on Phu Quoc island. The four-star resort offers 108 guestrooms ranging from the 32m2 Deluxe Rooms to the 90m2 Suites, most of which offer views of the ocean. Dining options include an all-day-dining restaurant, lobby lounge, swim-up pool bar, and beachfront bar and lounge. Leisure amenities span a large infinity pool set within a tropical garden, gym, kids’ club and Luna Thai Spa, in addition a large ballroom that can accommodate up to 190 people.
DoubleTree Resort by Hilton Penang, Malaysia
Malaysia’s first resort-style property under the DoubleTree brand has opened on Penang’s north coast, overlooking the Indian Ocean. There are 316 rooms and suites, all equipped with walk-in rain showers, 40-inch LED TVs and Wi-Fi. Many rooms also feature a private balcony with sea views. The family-friendly resort offers facilities such as a kid’s club, babysitting service, and special children’s buffets at the all-day-dining Makan Kitchen. There are also two other F&B venues, a spa, fitness centre, outdoor pool with its own beach,three flexible meeting rooms and a ballroom for up to 550 guests.
Fraser Suites Dalian, China
Located in the city’s new CBD of Donggang is Fraser Suites Dalian, part of the mixed-use Europark Tower development with a 100,000m2 lifestyle shopping mall, offices and residential apartments. The property offers 259 fully furnished serviced apartments ranging from studios up to three-bedroom configurations. Business amenities include an executive floor, a library lounge and meeting rooms. Recreational facilities include an indoor heated pool, 24-hour gym, billiards room, children’s play area and restaurant. This Dalian property is within walking distance of the Dalian International Conference Centre.
Emporium Hotel South Bank, Australia
Scheduled to open on July 1, 2018, this 143-suite hotel is part of the mixed-use Southpoint development on Grey Street in Brisbane. Rooms will be set over 21 levels, and recreational facilities include a rooftop bar, 23m-long infinity pool, gym, steam room and sauna. For conferences and meetings, there is also a grand pillarless ballroom, and three state-of-the-art boardrooms. Bookings are now open.
Virtuoso has to debunk certain perceptions to grow in Asia
Asia is a missing piece in Virtuoso’s plan to be a fully global company but the American company’s attempt to plug it may not necessarily be an easy ride despite its storied name and a burgeoning number of luxury travel agencies in the region.
After 15 years of setting up an Asia-Pacific office in Sydney, Virtuoso has 60 members in Australia/New Zealand and 16 members in Asia. It is seeking to increase that paltry number and has appointed an Asia regional director based in Singapore, Evan Pierce, to lead expansion in the region, including China.
In other eager signs, Virtuoso held its APAC Forum in Singapore just ahead of the opening of ILTM Asia-Pacific on Monday. Its founder and CEO, Matthew Upchurch, was present and was at his evangelical best in inspiring Asian luxury agents to share knowledge, improve their game and create a positive impact on someone’s life through delivering best-ever trips.
But when preaching to the not-yet-converted, Virtuoso may hit a wall.
Another network of travel designers, Traveller Made, based in Sion, Switzerland, has made some inroads into Asia, claiming 45 members in Asia. Virtuoso is still widely perceived as “too American-centric”, and being established (over 30 years in operation) has its disadvantages.
For one, many Asian luxury travel agencies are younger entrepreneurs who are anti-establishments. Many are also small players who perceive Virtuoso as being too big for them. Many have been able to handcraft journeys with research on the Internet and finding suppliers at luxury shows such as ILTM.
One of these owners told TTG Asia he found Virtuoso’s annual show in Las Vegas “kinda old fashion” while another said being a small company, she would prefer to be in the company of same boutique-style agencies, although she met a Virtuoso vice president last year and “was very impressed by the solutions he was able to suggest even for smaller companies like mine”.
Some agency owners, like Justin Moxley, CEO of Luphoric Malaysia, are just too busy chasing dollars. Moxley said he never got around to completing the registration to join Virtuoso. Business is booming and Luphoric is opening an office in Jakarta to tap high-yield Indonesian clients.
“It (joining Virtuoso) is something we’re looking at; it’s not priority at the moment as there’s just so much to do. Every tour is handmade, the time involved is enormous and when you finish one, two others are waiting,” said Moxley.
But those agency owners in Asia who have joined Virtuoso, including Charlotte Travel Hong Kong, Goldman Travel Corporation Australia and Country Holidays Singapore, said it’s the best thing they had done for their company.
Oft-cited benefits include better treatment showered on their clients by a wide range of luxury hotels worldwide in the Virtuoso network, including room upgrades, early check-in/late check-out, free breakfast, even spending money in hotel; getting to know good and trusted on-site providers through Virtuoso; the ability to grow new business segments, such as cruise, through Virtuoso’s strong direct partnerships with cruise lines; and the ability to learn not only from other agencies in the region but globally.
The best measure is growth: Country Holidays picked up Virtuoso Asia-Pacific Luxury Award, Hotels & Resorts Growth 2017, while Charlotte Travel’s head of sales & marketing, Charlotte Harris, said the company’s revenues have been growing around 16 per cent year-on-year since joining Virtuoso four years ago.
“Virtuoso has also become less Americanised,” added Harris. “They are very open to how they can do things differently from a culture point of view.”
So it looks like Virtuoso has its work cut out for it in debunking certain myths. Founder and CEO Matthew Upchurch, in an interview with TTG Asia at ILTM Asia-Pacific Singapore, acknowledged the view that Virtuoso was too American-centric but said it was correct if it were four years ago. He said he had been “deconstructing” Virtuoso to be a global company, opening up in Latin America, Europe, Australia and now, Asia.
But more than just having a global footprint, Virtuoso had also evolved its core infrastructure to be more global, he said. “We didn’t want to be the typical American company that comes in with an American product and say, here, take it. Part of the evolution of our company has been to purposely make ourselves flexible, that we can create certain core values but allow those values to be localised,” Upchurch added.
In a step further, he said the US team is now becoming just a region while Canada would be split from the US with its own head in Toronto, just as Asia-Pacific now has a director of Australia/New Zealand, Cristina Magni, and Asia has Pierce, both reporting to Virtuoso’s managing director, Michael Londregan based in Sydney.
“As we grow the membership and volume (in Canada, Asia, etc), we basically start to build the local infrastructure and have people that wake up everyday in the market and think nothing other than that market,” shared Upchurch.
The thing that he had found ironic was the perception Virtuoso was big and nearly monopolistic. “There were two things that drove me to build this organisation. One is my love of travel…Travel is in my blood; I worked on multiple sides of the business, as a tour operator, agency and I opened the Hong Kong office of our company back in 1984. The other reason was there were these amazing boutique agencies and I wanted to create an organisation that could bring entrepreneurs together. To be called a big, giant organisation that’s a monopoly does not make sense to me (laughs).
“Here’s the stats: we’re only 450 agencies in 1,000 locations in 50 countries. The reason people think we’re big is our annual networking Virtuoso week (in Las Vegas). When I set it up, we had only 98 attendees. Today, nearly 6,000 pax. There are other organisations in the world that have 5,000 locations but only 2,000 pax show up at their annual meet. The secret is engagement.
“We’re not only an organisation that helps entrepreneurs come together to create solutions, we’re an organisation with a greater purpose: to enrich lives and human connections,” said Upchurch.
He said he was not concerned with growing numbers in Asia. Yes, he wants to grow in relation to the growth of the market, but most importantly the fit has to be right. “We will only grow as large as our values allow us to. That means we’re not going to take people who don’t match our values.
“If, for example, you don’t believe that sharing ideas and information with one another is actually more powerful than to keep something to yourself, than we’re probably not the right organisation for you.”
Upchurch also debunked the perception Virtuoso was only for the bigger guys. “(Aside from big members), we have members that own practices, agencies with just five people – but how well designed and exclusive they are. Same with hotels. We have 1,300 hotels worldwide; yes we have the Mandarin Orientals and the Four Seasons, but 48 per cent of our partners have 100 rooms or less; 25 per cent 50 rooms or less,” said Upchurch.
