Outbound travel unaffected as Malaysia goes to the poll in May
Japan to impose ‘sayonara tax’ on departing travellers from 2019
Travellers leaving Japan by plane or ship will have to pay 1,000 yen (US$9.30) in departure tax effective January 7, 2019, the first permanent levy to be introduced since the land value tax was established in 1992, according to the Japan Times.
The new levy, coined the “sayonara tax”, will apply to all travellers, both Japanese and non-Japanese, except children under two years old and transit passengers who depart within 24 hours of arrival.
The move comes amid a visitor boom in Japan, which saw tourist arrivals grow by 19.3 per cent to reach over 28.6 million in 2017, with the number targeted to grow to 40 million by 2020.
Among the proposed uses of the funds are the enhancement of tourism infrastructure, promotion of destinations in rural Japan and the backing of global tourism campaigns.
There are also plans to have public transportation operators expand free wireless internet services as well as electronic payment systems.
Eastern Economic Corridor, Belt and Road initiatives rev up Rayong’s tourism
The tourism sector in Thailand’s Rayong province is set to flourish with plans to develop U-Tapao into the third Greater Bangkok gateway airport, in line with the Eastern Economic Corridor (EEC) initiative, as well as spillover effects from China’s Belt and Road Initiative.
Rayong last year hosted seven million visitors, while tourism revenue to the province in 2017 tallied in at just over US$1 billion and is expected to rise sharply on positive market sentiment, according to according to C9 Hotelworks’ newly released Rayong Hotel Market Update.
While accommodation supply presently stands just under 15,000 rooms, with widespread interest spurred by the government’s EEC initiative, Thai and overseas investors are flocking east, C9 observed.
C9 Hotelworks managing director Bill Barnett added: “The domino effect from China’s Belt and Road Initiative is clearly a game changer for Rayong. Looking back over the past 12-18 months Chinese visitors saw some retraction due to Thailand’s zero-baht tourism crackdown but opening up the skies at U-Tapao is going to propel the province into an entirely new destination proposition.”
Bangkok’s rising status as a megacity is a catalyst for change, Barnett said, and a key demand generator is the redevelopment of U-Tapao into a third Greater Bangkok gateway airport.
Airlift at U-Tapao is rapidly expanding with scheduled and non-scheduled (charter) flights now serving 26 overseas cities. According to C9’s research, last year aircraft movements surged by 47 per cent year-on-year, with much of international lift now coming from mainland China.
Looking at EEC investment into large-scale projects, C9’s report notes that the expansion of the industrial zones at Map Ta Put and Laem Chabang and upcoming high-speed railway lines are key elements to a medium and long-term strategy for sustainable growth.
Despite Rayong’s legacy domestic tourism market and secondary attraction as a spillover destination from nearby Pattaya and Jomtien, the visitor source markets are changing.
Both the Japanese and South Korean segments have registered increased from activity in expansion of the industrial zones and Russians along with Western Europeans are being attracted by the coastal resort areas and offshore islands.
Wyndham Group adds ‘by Wyndham’ to its hotel brands
As it transitions into a pure-play hotel franchising and management company, Wyndham Hotel Group is adding the “by Wyndham” suffix to 12 of its brands to unite diverse hoteliers under a common name as well as improve guest trial and brand awareness throughout its portfolio.
Brands that will incorporate the Wyndham hallmark include Super 8, Days Inn, Howard Johnson, Travelodge, AmericInn, Baymont, Ramada, Ramada Encore, Dolce, Dazzler, Esplendor, and Trademark – representing 7,074 properties across the globe.
Beginning April 16, the updated brand names and logos will appear across Wyndham’s digital placements from brand websites to mobile sites and third-party listings.
As for hotel signs, Wyndham property owners in North America may immediately begin placing orders. The updates will roll out progressively around the world with an expected completion date of December 2022.
The cross-branding initiative represents a further evolution of the company and its brand portfolio leading up to its spin-off as a pure-play hotel franchising and hotel management company (Wyndham Hotels & Resorts), which is scheduled to occur later this quarter.
Wyndham said in a statement that the shift is also intended to reinforce the Wyndham Rewards by allowing guests to more easily associate each brand with the programme.
Wyndham’s Wingate, Microtel, Hawthorn Suites and TRYP brands already incorporate “by Wyndham”. All 20 of the company’s brands participate in its Wyndham Rewards loyalty programme, which has more than 55 million members.
Letter to the editor: What’s in a levy?
It is time to review the Travel Agents Ordinance (Cap 218), in place since 1993, as the Hong Kong government and the industry are split whether these levy rules should be reformed.
It is loosely known to travel agents (TAs) that a levy is charged on a “package comprising of two or three outbound services”. The Travel Industry Council (TIC) of Hong Kong provides only minimal guidance on this topic, even though the total levy received exceeds HK$25 million (US$3.2 million) in 2017.
Under the Ordinance, licensed TAs are mandated to pay levy from outbound fare received, i.e. the actual sum paid by consumers for outbound travel service. An outbound travel service has five necessary components: it must be offered to the public; comprising two or all three qualifying services selling as a package; this package must be available only at an inclusive price; and pre-determined before being made available to public.
When all five conditions are met, a levy has to be paid, regardless of how TAs invoice them. If one or more elements are not satisfied, then nothing will render TAs liable for levy on those services sold.
Herein lies matters that TAs should be highly concerned about. Unlike brochure packages from wholesalers which in most cases have to be levied, it is questionable whether services booked (usually separately) by corporate clients also have to be levied. One should ask if all five elements are met before paying a levy.
The two usual decisive elements are “pre-determination” and “inclusive price”. For the former, the judgment of ABTA vs CAA in the UK tells us it means the package content must be fixed before being made available to consumers, e.g. an air-plus-hotel package. Any add-on services purchased after the sale is thus post-determined.
Ad-hoc packages, such as study or incentive tours, assembled according to needs and requirements raised by consumers before being made available, also satisfy this “pre-determined“ requirement.
For the latter, “inclusive price” is a line drawn between “purchasing all services as a whole” versus “purchasing separate services at the same time”. A package price is usually an inclusive price, because it is cheaper than purchasing the individual services separately, and is cheaper only as a package.
What if the package price is simply the arithmetic total of all individual prices (such as for corporate clients or individual flyers mixing-and-matching)? There is no definite answer in law, but that total price, no matter how you name it, is less likely an inclusive price.
Squarely, the government now proposes to remove these two determinants. If so, a levy may be charged on most outbound services sold by TAs, who all along have difficulties (not a legal restriction) passing the levy on to consumers. The likelihood of facing sanctions for failing to pay levy also increases.
The industry must hence be alert to these implications when lobbying with the government.
Tasman Tam
Barrister-at-law
Hong Kong
Banyan Tree readies for Malaysia debut with GM, DOSM hires
Banyan Tree Kuala Lumpur has appointed its general manager and director of sales & marketing ahead of the brand’s debut in Malaysia in June.
The general manager post will be filled by veteran hotelier Anders Dimblad, a Swedish national with almost two decades of experience in the luxury hospitality industry.
Prior to joining Banyan Tree Kuala Lumpur, Dimblad served as vice president of hospitality in DAMAC Hotels & Resorts, Dubai. He was also previously with Banyan Tree Hotels & Resorts from 2004 to 2014.
Shereen Chow has been named the hotel’s director of sales & marketing. With over 27 years of experience in the hospitality industry, Chow has held directorial positions in the area of sales and marketing at One World Hotel, The Saujana Kuala Lumpur and most recently, Hilton Worldwide’s sales office in Malaysia.
Banyan Tree Kuala Lumpur will mark the brand’s debut in Malaysia. The urban resort is located in Malaysia’s capital and occupies the top seven floors of the Banyan Tree Signatures Pavilion Kuala Lumpur Building.
Aviation roundup: Virgin Australia, Hainan Airlines and more
Virgin Australia to link Sydney and Hong Kong
Virgin Australia has announced plans to fly to operate daily return services between Sydney and Hong Kong.
Services between the two cities will start in mid-2018, subject to relevant approvals. The route will be serviced by its dual-aisle Airbus A330-200 aircraft.
VA89 will depart Sydney at 10.00 and arrive in Hong Kong at 17.40, while the return leg VA88 will depart Hong Kong at 19.50 and arrive in Sydney at 07.10 the following day.
Hainan Airlines launches new China-Austria route
Hainan Airlines has announced that it will be launching a non-stop service between Shenzhen and Vienna this coming October. The route will be serviced by a Boeing 787 Dreamliner twice a week.
This will be the airline’s third direct service from Shenzhen to Europe this year, after the Shenzhen-Brussels and Shenzhen-Madrid services.
Malindo Air to begin flying to Bali from Melbourne
Malindo Air will introduce a daily non-stop service between Melbourne Airport and Bali this coming June.
The flight will arrive at approximately 05.00 and depart at 07.00. This move will add 118,260 seats both ways on an annualised basis.
THAI ups flight frequency to Tokyo
Thai Airways International (THAI) has increased its flight frequencies from Bangkok to Tokyo (Narita) from 21 flights per week to 28 flights per week, equivalent to four daily flights.
The new flight out of Bangkok, TG626, departs the Thai capital at 23.35 and arrives in Tokyo at 07.45 the following day, while the returning TG627 leaves Tokyo at 09.45 and lands back in Bangkok at 14.15.
Have a splashing time in the New Year!
From all of us at TTG Asia, happy Songkran, Pii Mai, Thingyan, Chaul Chnam Thmey! May all our readers in Thailand, Laos, Myanmar and Cambodia have a wonderful New Year celebration.
Luxury cruising picks up among Asian families
More multi-generational families in Asia are taking to the high seas on luxury cruises and river expeditions around the region and across the globe.
“Many families are fast discovering the convenience and hassle-free experience of a cruise vacation as compared to other modes of travelling,” observed Helena Ow, managing director of Prime Cruise Asia.
Her agency has registered “an incremental increase in multi-generational families” opting for luxury cruises on their vacations, with popular destinations including Asia, the Mediterranean and Northern Europe.
Ow also noted that this demand is driven by “unique cruise options (that) are readily available”, extending beyond just ocean cruises to river, expedition yacht and air cruises too.
Meanwhile, Crystal Cruises, which offers all of these options, has also posted a “steady seasonal outbound longhaul demand from Asia” as well as high demand for cruise itineraries in Asia, shared Thatcher Brown, president of Dream Cruises.
TTG Asia understands that Brown will be heading the further development of sales and marketing for Crystal Cruises in Asia.
He added: “(Our guests) are seeking more immersive, authentic experiences. This is one reason expedition cruising is emerging as a highly sought-after way (of exploration). The focus continues to be more on what guests can do and experience, rather than simply see.”
With the expansion of Crystal Cruises’ fleet in Asia – which includes the refurbishment of Crystal Symphony and, in October, Crystal Serenity – the company will delve into more combinations of famous and lesser-known destinations in Asia to appeal to both repeat and new guests, said Brown.
The refurbishment of the ships will also increase the staff-to-guest ratio, enhancing personalised attention to detail and service on board.
In 2020, the company will also launch Crystal Endeavor under Crystal Yacht Expedition Cruises, marking the largest and most spacious luxury expedition yacht in the world, with 100 suites with butler-service.
Brown said: “The focus of the yacht will be the PC6 classified capability to sail to any corner of the world, including through first year ice in the polar regions.”
Stranger Things are coming to Universal Studios
Universal Studios has partnered Netflix to bring Stranger Things to Halloween Horror Nights at three of its parks – Universal Studios Hollywood, Universal Orlando Resort and Universal Studios Singapore.
With the help of Netflix, and the creators and executive producer of the blockbuster series – Matt Duffer, Ross Duffer and Shawn Levy – the parks will debut new mazes that transport guests into iconic scenes and story-lines, from the menacing Hawkins National Laboratory to the Byers home with an erratic display of flashing Christmas lights and the eerie Upside Down woods oozing a shower of floating orb-like spores.
The chittering, predatory Demogorgon from Upside down will also stalk unwitting guests while they traverse the supernatural world of Stranger Things.
Halloween Horror Nights begins September 14 in Hollywood and Orlando, and September 28 in Singapore.
For the Singapore event, Limited Time Special Admission tickets are available now from S$50 (US$38). Universal Studios is also introducing the Infinite Fear Package which includes admission and Express Plus pass, Zombie Laser Tag, a S$5 meal voucher and S$5 worth of Hollywood China Arcade game credits. All tickets purchased during this limited time period will include Stranger Things merchandise.
Agents are confident that Malaysia’s upcoming 14th National General Election on May 9, which has been declared a public holiday, is unlikely to deter Malaysians’ outbound travel demand as it falls on a weekday and not over a long weekend.
Nanda Kumar, managing director at Hidden Asia Travel & Tours, said: “We have not had any cancellations for tours running on the week of the general election. Our tours to Yogyakarta, Bali, Bangkok, Pattaya and South India are running as scheduled.
He added: “People have booked these tours at least two months ago and have taken leave from work. None of my clients have cancelled or changed the date of travel because it coincides with the general election.”
Another agent, Cooper Huang, CEO at Malaysian Harmony Tours & Travel, said: “The election date does not coincide with the school holidays and (will take place during) a low season for travel. We have not had any request for change in booking due to the general election.”
With the general election date finally fixed after months of speculation, it would afford better clarity for leisure and corporate travel planning, said Raaj Navaratnaa, general manager, New Asia Holiday Tours & Travel.
He said: “There was a lot of uncertainty in the past (few months). We had enquiries in February and March from corporate clients asking us whether they could postpone the trip to a later date with a fee waiver on hotel bookings and airline tickets if the polling date clash with their event.”
Other agents are also optimistic about that outbound travel demand will pick up soon, with Bobby Eng, general manager at Sunflower Holidays, already receiving new bookings for the coming school holiday season in June.
Meanwhile, Malaysia-based carriers including AirAsia, as well as Malaysia Airlines (MAS) and sister carriers Firefly and MASwings, have announced the waiver of flight change fee for Malaysians with existing travel bookings that coincide with the polling day. “This is to allow Malaysians to fulfil their responsibility as voters,” MAS said in a statement.