A proposal has been submitted to the Sri Lankan government to encourage the promotion of shipwreck exploration alongside other attractions in the country, Sri Lanka Tourism chairman Udaya Nanayakkara announced.
To move the plan forward, Lanka Sports Reizen (LSR) chairman and veteran diver Thilak Weerasinghe has been appointed by the country’s prime minister as a Tourism Task Force member. He is focusing on setting up guidelines, proper training facilities and creating more dive schools and facilities for both water and land-based sports.
The country has more than 200 possible shipwreck dive sites
His company handles 6,000 dives per year, of which 500 are made by tourists exploring shipwrecks. “Many of them are holiday divers who come on a seven- to 10-day stay, go around the countryside and end with a diving experience,” he told TTG Asia.
Ruled at various times by the Portuguese, Dutch and the British, and also attacked by the Japanese during WWII, Sri Lanka brims with opportunities for shipwreck exploration. More than 200 battleships lay submerged off its coast, including those wrecked in WWII.
One attraction is the SS British Sergeant, a British oil tanker sunk by Japanese airplanes in April 1942, which can be viewed at a depth of 13m to 25m off the eastern coast. For more experienced divers, the HMS Hermes, a British aircraft carrier sunk by Japanese planes is an attractive site at a depth of 40m to 53m.
IATA projects air passenger numbers globally would reach a historical high of over four billion this year, and grow a further 5.6 per cent to 4.3 billion in 2018, on the basis of increased air access, cheaper fares and a strong economy.
Next year the average world citizen is forecast to travel once every 21 months, compared to every 43 months in 2000 and every 50 months in 1996.
Air passenger demand on the up, but rising costs a challenge for airline profits
Airlines have responded to strong demand in 2017 by adding 1,351 new city-pair connections, taking delivery of 1,683 new jets and turboprop aircraft, increasing utilisation of the existing fleet, and raising load factors to record levels, altogether boosting ASKs (Available Seat Kilometres) worldwide by 6.3 per cent.
According to the published schedules for 2018 airlines are planning a further significant boost to capacity of around 5.7 per cent, a pace which is likely to come in below the growth of traffic. Load factors are forecast to rise to a new record of 81.4 per cent as a result.
The biggest profitability challenge to date, IATA said, has come from accelerating costs. Oil prices are taken from market forecasts for 2018 of around US$60 a barrel for Brent crude oil. As crack spreads have been widening, IATA forecasts a gallon of jet fuel will cost US$1.76 in 2018, a 12.5 per cent increase over this year’s expected average.
The impact will vary depending on hedging, with US and Chinese airlines having low average hedges and facing immediate pressures, while in regions like Europe high hedging ratios are delaying the cost impact. This has already led to some convergence of financial performance between regions.
Meanwhile, labour costs are now a larger proportion of a typical airline’s operating costs than fuel and these have been accelerating in 2017, IATA pointed out. Overall unit costs for the industry are hence forecast to accelerate from 1.7 per cent growth this year to 4.3 per cent in 2018.
IATA estimates operating profit margins will slip from 8.3 per cent in 2017 to 8.1 per cent in 2018, as a result of unit costs outpacing unit revenues. However, this margin compression is less intense than it was in 2017
Unit revenues will be helped by the increase in load factors, raised by above-trend growth in travel and cargo together with the lesser pace of capacity expansion shown in the announced schedules for the summer season next year. The other component of unit revenues is yield and this has been rising in both passenger and cargo markets over the past year, in response both to rising costs and increasing demand.
IATA anticipates these conditions will persist in 2018, leading to a further three per cent increase in passenger yields and an overall rise in unit revenues of 3.5 per cent.
More on region-specific performance in tomorrow’s news
Osaka is set to launch a campaign to attract wellness visitors to Japan’s second city, initially targeting tourists from neighbouring countries before reaching out to markets in Europe and North America.
The Osaka Convention and Tourism Bureau is working with private companies to draw up packages that will combine physical check-ups with a range of health-related options, including visits to therapeutic onsen hot springs, massages, forest meditation sessions and tailored meals, such as traditional shojin ryori, the vegetarian meals eaten by Buddhist monks.
The city of Osaka is keen to attract more wellness visitors from neighbouring countries
“We believe there is very high potential for this sort of service. Figures released by the World Health Organisation show there are many people from China, for example, who want to combine a trip with medical care,” said Yasuhiro Takahashi, general manager for project development at the bureau.
Meanwhile, a dedicated wellness network with an online presence is being set up in Osaka, while an office will open in the city ahead of the entire system being launched in April.
In addition to the advanced facilities and care the region is known for, treatments are relatively inexpensive, he said, adding that the sector hopes to also benefit from a higher profile as a result of Osaka hosting eight games in the 2018 Rugby World Cup and the World Masters Games in 2021.
“We are already participating in international tourism events and the network is working closely with Chinese travel organisation Ctrip to invite agents to come to Japan to see the facilities and options,” Takahashi said.
“Initially, we plan to target the Chinese market because research suggests that health is the fourth top important reason for Chinese people to go on holiday,” said Takahashi.
Toyoshige Taura, a legal expert for Osaka-based health company Life Plan, agreed that a number of hurdles may still need to be overcome – including the language barrier and cultural differences – but confirmed that participating companies are ironing out the problems by working closely with land operators to support tourists.
400 adventure-based tour and activities offered, more to come
A new online booking platform for adventure-based tours and activities in Malaysia has been launched globally.
Currently, Adventoro has more than 400 tours and activities located at various destinations in Malaysia such as in Kuala Lumpur, Langkawi Island, Sabah and Sarawak. Adventoro plans to expand its listings to 500 in Malaysia by end-year, and to include tours in South-east Asia in early 2018.
400 adventure-based tour and activities offered, more to come
The platform features six categories of tours and activities: island, river and watersports; wildlife and jungle; culinary and gastronomy; caving and hiking; cultural and traditional; and, sightseeing and attractions.
Prior to the official launch Adventoro was on beta for a few months. Among its bestselling products during that period were: White Water Rafting at Kampar River in Perak, Mount Kinabalu Trek Grand Adventure; Cameron Highlands Rafflesia and Mossy Forest Adventure; Taman Negara Experience; Bako National Park Overnight Adventure; and, Langkawi Kayaking at Mangrove Forest Reserve.
Other than the listings, Adventoro also provides a concierge service allowing users can get in touch with its team for special requests and more information.
“What we’ve learned so far is that about 90 per cent of transactions had at least one question asked to us. So it is important for us to give concierge service a priority,” Ken Lau, founder and CEO of Adventoro, explained.
Users have the option to contact Adventoro via email, telephone, WhatsApp or a web-based live chat.
HK CTS Hotels and Kew Green Hotels have signed an agreement with InterContinental Hotels Group (IHG) to manage and franchise hotels in China.
This deal will see Kew Green Hotels manage the existing 466-room Crowne Plaza Beijing Lido from early 2018 and convert the 433-room Metropark Beijing Lido into a Holiday Inn during 2018.
(From left) IHG’s Jolyon Bulley; HK CTS Hotels’ Roc Huang; and Kew Green Hotels’ Stephen Woodhouse
The deal will also enable Kew Green Hotels and HKCTS to work with other owners in China seeking to franchise brands from IHG.
Kew Green Hotels currently operates 10 hotels with over 3,000 bedrooms in Hong Kong, Macau and mainland China, under the direction of Stephen Woodhouse.
India and Poland are signing an MoU for cooperation in civil aviation, according to an India Times report.
The five-year agreement is aimed at bringing the two countries into recognition of the mutual benefits of cooperation, especially in improving regional air connectivity in India.
Enhancing connectivity, information exchange
The deal is also expected to see the two countries acknowledging the benefits of environmental testing and approvals for flight simulators, aircraft maintenance facilities, maintenance personnel and aircrew members.
In addition, the partnership will facilitate an exchange of information and expertise between the countries’ civil aviation authorities, collaboration on conducting training programmes, research and studies.
Gerhard Aicher has been named general manager of Holiday Inn Golden Mile Hong Kong. He will be responsible for the overall operations of the 621-room hotel.
Aicher was most recently general manager of The Mira Hong Kong.
The seasoned hotelier has more than two decades of hospitality management under his belt, and worked in European properties such as Paris Marriott Champs-Elysees, Le Meridien Vienna and Le Meridien Stuttgart before moving to Asia.
Iconic building undergoing restoration, tours launched in the meantime
Tourists can now explore one of Myanmar’s most historical colonial buildings as Yangon’s iconic Secretariat opens to the public for the first time in decades.
Now high hopes are being pinned on the 120-year-old building becoming a major tourist draw to Yangon, with the launch of tours led by Asia Tours Myanmar while work gets underway on transforming the grounds into a cultural complex.
Iconic building undergoing restoration, tours launched in the meantime
Yangon Heritage Trust and Anawmar Art Group are in the midst of a restoration project to bring the building back to its former glory while preserving Yangon’s architectural heritage.
Slated for completion in 2019, the Secretariat will serve as a cultural complex, housing museums, galleries, event spaces, offices and a range of F&B outlets.
In the meantime, Asia Tours Myanmar has launched tours of the Secretariat, taking in the flagpole where the Myanmar flag was raised for the first time in 1948; and the Cenotaph and Martyrs’ room, where General Aung San was murdered. Tours will run four times a day, from Monday to Friday, and once on Saturdays.
Edwin Briels, general director of Khiri Myanmar, welcomed the move, claiming the Secretariat has the potential to become a major tourist attraction.
He added: “Apart from Shwedagon Pagoda, there are not many places to visit in Yangon that have such important historical and heritage significance.”
Said Briels: “I hope this leads to bigger opportunities for Yangon to offer a quality tourist site that can compete with the rest of South-east Asia.”
The Secretariat initially served as the centre of British administration during colonial times. It was also where Myanmar’s first independent government laws were drafted and where General Aung San and eight cabinet members were assassinated.
During the junta rule, military officials restricted public access and used the building as offices, until relocating to Nay Pyi Taw in 2005. Since then, the 6.47ha site has been left disused.
About 250 cross the border separating Indonesia and Timor Leste everyday
To develop and promote cross-border tourism, the Indonesia Ministry of Tourism has set aside 200 billion rupiah (US$14.8 million) and prepared 214 events to be staged in 29 cross-border areas for 2018.
Speaking at the launch of the programme in Jakarta last Friday, Indonesia’s tourism minister, Arief Yahya, said: “In Indonesia, cross-border traffic is still small, at 20 per cent of total arrivals (or 3.2 million), of which, 90 per cent are to Riau Islands (Batam and Bintan particularly).”
In comparison, cross-border traffic makes up 93 per cent of total arrivals in the Netherlands, 65 per cent in Malaysia and 61 per cent in Singapore, according to Arief.
Indonesian border with Timor Leste
With the ministry targeting 3.6 million cross-border arrivals next year, Arief identified opportunities to grow cross-border traffic between Indonesia and countries such as Malaysia,Timor Leste, Singapore, Thailand, Vietnam, the Philippines, Australia, and Papua New Guinea.
While challenges such as the lack of facilities, infrastructure and lower purchasing power in many of the cross-border areas remain, Arief believed there are ways to get around these obstacles and create demand around the calendar of events the ministry is introducing.
Arief suggested, for example, to make products affordable; overcome the lack of accommodation with glamping facilities or caravans; and overcome the lack of Internet access by operating portable BTS.
He also reminded the audience, among whom were regency and district heads from cross-border areas, of the importance of millennials, who he said are eager to broadcast where they have been and what they have done on social media.
“I encourage the (regencies and districts) to create digital destinations, instagram-able destinations,” he said.
To stimulate the regents, he said: “I am budgeting another 100 billion rupiah (on top of the 200 billion rupiah for cross-border tourism) to support the regions which are into the development of digital destinations.”
The tours & activities sector is grappling with not just content and distribution, but context, according to Douglas Quinby, senior vice president research, Phocuswright, in a presentation at a breakout session at Expedia Partners Conference 2017 in Las Vegas last week.
Quinby argued that it’s a lot harder for players in the sector, particular the online platforms, to know what to put in front of a customer in order to get his bookings, even if they already have a history with that customer.
Tours & activities segment a different ballgame than hotels
Unlike hotels, where guest preferences are finite – type of room, fitness centre use or not, etc – it is not easy to know what tours or activities a customer wants at any given time.
He or she might have booked a Broadway show and museum tickets on a romantic getaway in New York but his next visit to New York could be a business trip or a family trip with kids, where recommendations of Broadway shows or museums would be irrelevant. “So it’s not just content, but context. It’s so hard to make this work as efficiently as (segments such as air or hotels),” he said.
The sector is worth US$147 billion this year, a growth of nine per cent over last year, which is higher than global travel industry’s average of six per cent. This covers traveller spend on ground, events, attractions, activities and guide/host but not shopping and dining. “With due respect to hotels, tours & activities is why people travel – that’s why it’s travel’s next big thing,” he said.
It is at a stage where online travel booking in the US was in 2003. But Quinby believed it won’t take as long as 14 years for tours & activities to grow to the level online travel booking is today.
For that to happen, small and medium-sized players, which account for more than half of tours and activities suppliers, need to automate and make their inventory bookable, and use technology that will enable them to, say, base pricing on yardsticks such as historical and forecasted demand, not gut feel, he said.
Phocuswright’s survey shows the number of tour & activities suppliers globally that are using a third-party reservation system rose to 45 per cent last year, from just 14 per cent in 2011 when it first conducted the survey.
Meanwhile, distribution of tours & activities is becoming as complex and diverse as the supply landscape, he said. The field runs the gamut, from online sellers such as Viator and Klook; wholesalers/package tour operators such as TUI and Hotelbeds; attraction passes such as CityPass or Smart Destinations; points of sales such as concierge, hotels (not concierge), airlines, DMCs, local tour operators; and peer-to-peer platforms such as ToursbyLocals and myRealTrip.
Local tour operators are reselling other tour operators inventory, local attractions are selling tickets to bus operators, hotels are reselling tours (GTA, for example, has tied up with Bokun, using its content and technology to allow hotels to re-sell tours and activities). Marriott International invested in PlacePass in March this year, a meta-search platform for tours & activities, to give guests a complete travel experience, whether they are in planning mode or already staying at Marriott hotels. Quinby thought this is a good way out for chains to prevent a commoditisation of their loyalty programmes, as it opens up an array of experiences to members.
He believed with a lot of interest in the sector, including more investor funds (such as Klook’s US$60 million in Series C funding recently, led by Goldman Sachs), tours & activities will be professionalised as quickly as the alternative accommodations sector has.
Lodging’s final frontier – individual home owners providing supply – was “totally chaotic in 2008, the wild west of the lodging industry at the time”, he reminded. Then startups started to come in to help home owners professionalise.
“Hotels didn’t pay attention, or if they did, laugh it off. Now, 10 years later, I don’t think they are laughing. It (alternative accommodations) is now mainstream. How did that happen? Fundamentally, startups make them discoverable, beautiful to book…(and) bookable.”
The biggest profitability challenge to date, IATA said, has come from accelerating costs. Oil prices are taken from market forecasts for 2018 of around US$60 a barrel for Brent crude oil. As crack spreads have been widening, IATA forecasts a gallon of jet fuel will cost US$1.76 in 2018, a 12.5 per cent increase over this year’s expected average.
