Half of the tourism tax imposed will go to the state where it is collected
Malaysian tourism and culture minister Mohamed Nazri Abdul Aziz has announced that the tourism tax will be split 50:50 between the federal and state governments, rather than 90:10, a welcome move for the Malaysian Association of Tour and Travel Agents (MATTA).
This means that state governments are to receive RM5 (US$1.30) for every RM10 collected in the tourism tax.
Half of the tourism tax imposed will go to the state where it is collected; parade participants at the 4th Usunan Festival competition in Kota Belud, Sabah, Malaysia pictured
This is a sharp contrast to the initial share of 33 per cent, or RM3.30 for every RM10 collected, before the tourism ministry reduced it further to 10 per cent, the percentage used when the tax was implemented.
MATTA president, Tan Kok Liang, said: “It is certainly a right move in empowering the states to be more involved with tourism, which brings immense opportunities and economic benefits to its people.
“The additional funds would allow the states to showcase areas in their own backyards they know best. Each district can develop a strong ecosystem to attract and ensure visitors enjoy their stay so that they will want to come back for more and recommend to others,” he remarked.
This will enable state tourism organisations to be “more aggressive in overseas promotions”, Tan stated, as the funds could be invested into tourism infrastructure development and digital marketing such as destination apps that provide information and on-the-spot bookings.
“A portion of the extra fund should be allocated for human capital development to train frontliners to provide better customer service, including learning to communicate in basic foreign languages,” he added.
Nazri had said the funds will be channelled to the states every quarter for their tourism promotions and activities. The government had raised almost RM40 million in revenue from the tourism tax collected in the first four months of its implementation.
TravelKoin allows travel suppliers to transact with one another without bank charges
Amid a polarisation of views on the practical value of cryptocurrency, TravelKoin is positive it can alleviate persistent travel industry painpoints – think many thousands of dollars on unneeded costs annually, according to Fabian Bartnick, TravelKoin’s head of strategic partnerships.
TravelKoin, which offers payment and loyalty applications for the travel industry, will launch an initial coin offering next month.
TravelKoin allows travel suppliers to transact with one another without bank charges
A familiar problem for travel companies is the substantial amount of bank fees that come with international transactions.
Bartnik, who is also with revenue management firm Lodgiq, shared that a US$500 service can come with US$20 in bank fees, resulting in US$520 being paid by the hotel and US$480 received by the technology vendor, and that’s not taking into account currency exchange.
For DMCs, which deal with many layers of payment, the siphoning effect is even more severe, explained Sandor Levai, CEO of ICS Travel Group – which last month became an early integration partner of TravelKoin.
Frictional costs also come into play. “(Some banks charge) a flat fee of US$80-100 per transaction, so we have to wait until we (get bulk) so it makes more sense to pay the bank fee than to fly (to another country) to deliver payment,” Levai said.
Levai added that transactions can take up to five days to process, while TravelKoin offers a near instant solution. For him, quicker turnaround could well mean greater business volumes.
And when it comes to certain countries, “sometimes payment doesn’t arrive, or gets blocked”.
Take for example Myanmar, “a politically incorrect country… for a lot of banks”, but in the travel industry represents a big emerging destination, Levai pointed out.
Bartnick said TravelKoin solves such problems by removing the bank intermediary from the equation and having the same currency on both sides, with users charged only a small fee for currency to be mined.
For many travel service providers however, a new currency isn’t a total alternative until the many parts of the supply chain – down to the smaller tours and activities provider – get on board.
But Bartnick said TravelKoin could be an easier sell than one would expect. Regardless of the industry’s track record of technology inertia, savings and convenience are ideas that resonate.
“Every start-up has to get over a hump, but it’s only as big as its limitations of value creation,” he said.
If transacting in the new currency requires a simple click of a button, and results in thousands in savings, “then the value creation is already bigger than the hump”.
Even for providers of tours and activities, who may lack organisational resources, the same applies. “They (may not understand the technology) but they understand savings, convenience and reach. The heavy lifting is already done by the DMCs and all (the activity supplier) has to do is sign up,” he reasoned.
If a future where cryptocurrency payment is the norm is still a remote idea, Levai points to history. “We used to (barter trade). Someone came along and said why don’t I give you a coin in exchange. Suddenly people started having these coins, then credit cards which people also initially didn’t trust. But at some point everyone is using them – because it was the logical next step,” he said.
Having soft opened last November, the 347-room Yogyakarta Marriott Hotel is in its early days seeking volume in order to gain visibility in the market.
The hotel, the first under the Marriott Hotels brand in Indonesia, currently features the biggest hotel ballroom in the city, club room and lounge, and is adjacent to Hartono Mall, the largest mall in Central Java.
A guestroom in Yogyakarta Marriott
Winkie Wong, senior director brand and marketing Asia Pacific, Marriott International, said: “Indonesia has immense potential as a growing source market and we see a lot of opportunity there for the Marriott Hotels brand.”
As for the choice of Jogjakarta, Wong told TTG Asia: “In addition to having a great owning partner, Duta Merlin Dunia Properti, there’s a lot of potential in the destination for international leisure and business travellers. Jogjakarta is a hub of art, culture and education as well as a dynamic city that is growing in terms of business and economic development.”
The city has direct air access with Singapore and Kuala Lumpur and is only a 50-minute flight from Jakarta.
The opening of the hotel is also considered timely as the city is expected to have a new international airport by 2020.
Alain Rigodin, general manager of Yogyakarta Marriott Hotel, believes the opening of the airport would be a game changer for the destination. The hotel will officially launch 12-18 months ahead, affording it the time needed to position itself in the market and be ready when the airport is up, he said.
With the biggest, pillar-less ballroom in town measuring 1,870m2, seven meeting rooms and one boardroom, business events will be its primary focus, followed by corporate and leisure travellers, Rigodin said.
During this introductory period, the hotel has benchmarked prices for the lead-in category between one million rupiah (US$77) and 1.5 million rupiah.
“This is reasonable when you compare with other destinations like Jakarta, Bali or even Singapore. where you will see similar offerings for three to five times the price.”
To attract corporate and community gatherings, the hotel is also putting in place various promotions such as nightly all-you-can-eat buffet with different themes, the first such hotel offer in the city.
“We are (currently) looking for volume because want to showcase the hotel and our strategy is to get more people to talk about it – such as through social media,” Rigodin shared.
The Cathay Pacific Group is seeing progress from its three-year transformation programme, as a strong cargo business, a weaker US dollar and improved premium class passenger demand come together to deliver a less-than-expected annual loss for the company.
For 2017, the Cathay Pacific Group reported an attributable loss of over HK$1.2 billion (US$160 million), up from HK$575 million in 2016.
This is the airline’s biggest annual loss in nine years, but it was slimmer than expected as a rebound in the cargo market helped offset fuel hedging losses and stiff competition
However, recovery was underway in 2H2017 as the Cathay Pacific Group reported an attributable profit of HK$792 million, compared to an attributable loss of HK$2.1 billion in 1H2017 and an attributable loss of HK$928 million in 2H2016.
Cathay Pacific and Cathay Dragon reported an attributable loss of HK$1.5 billion in 2H2017, compared to HK$2.8 billion in 1H2017 and an attributable loss of HK$2.6 billion in 2H2016.
Changes implemented include a reorganisation of the head office, and appointing new management and leadership teams. Six hundred jobs were reportedly slashed as part of the redundancy plan last year.
The Cathay Pacific Group is determined to prioritise its transformation programme in 2018 to better contain costs and revive earnings.
Cathay Pacific chairman John Slosar said: “Our priorities for 2018 (include) our transformation programme, changing the way that we work so as to better contain costs which will strengthen our passenger business further. We are confident of a successful outcome from these efforts.
“We also look to benefit from a slowing of the decline in passenger yields as global economic conditions improve.”
Slosar added that the airline is improving its competitive position by expanding route network, increasing frequencies on popular routes and buying more fuel-efficient aircraft.
The airline will introduce services to Brussels in March 2018, to Dublin in June 2018 and to Washington D.C. in September 2018. It will start flying to Barcelona all year round in April 2018, and seasonal services will be introduced to Copenhagen between May and October 2018 and to Cape Town between November 2018 and February 2019.
HNA selling stakes in Hilton Grand Vacation and Park Hotels & Resorts
In the middle of an asset reorganisation, debt-ridden Chinese conglomerate HNA Group is selling its shares in Hilton Grand Vacations for US$1.1 billion and is transferring much of its tourism portfolio to its airline subsidiary, Hainan Airlines.
HNA sold 22.3 million shares at US$46.25 a share, or 1.6 per cent below the stock’s latest closing price. It also sold 2.5 million shares back to the timeshare company for US$44.75 a piece.
HNA selling stakes in Hilton Grand Vacation and Park Hotels & Resorts
The deal is scheduled to be completed March 19.
With the group having put its stakes in another Hilton spinoff, Park Hotels & Resorts, up for sale, Bloomberg reports there are speculations if Hilton Worldwide is next.
HNA reportedly still owns about a quarter of Hilton Worldwide, a stake valued at US$6.7 billion.
The group had in 2016 bought a quarter of Hilton Worldwide and the two spinoffs from the Blackstone Group for about US$6.5 billion.
Meanwhile, in a statement to the Shanghai stock exchange last weekend, HNA’s flagship carrier said it would take controlling stakes in HNA Hospitality Group, an unnamed overseas hotel operator, West Air, Guilin Airlines, among several other tourism and aviation assets.
Exceptional branding as an asset for travel companies
Several readers weighed in with their perspectives in response to senior editor Raini Hamdi’s Opinion piece on ‘Why can’t Singapore create an A&K?’.
Gaurav Sundaram, president, ProKonsul & regional director – India, Global Business Travel Association
“Very relevant thought…venturing beyond your comfort zone and taking calculated risks will allow for this. The Singapore model can sometimes cloud imagination and creativity.”
Anonymous
“A&K has masterfully created a brand that is bigger than its actual business size. Geoffrey Kent loves to repeat the story that there was never an Abercrombie, that he formed the name based on the nice ring to it. Marketing brilliance over product substance…My main points are these: that it shows the power of exceptional branding, making the brand appear greater and stronger than the underlying business, and that A&K may be an exceptional case of branding that transcends the product offering. So the lesson for others is not to expect massive growth at that high end of the market (which prefers custom solutions from intimate provider relationships).”
“Great article and I am sure the readers will really benefit from your thoughts and insightful perspectives.
Just a couple of comments and viewpoints:
a. At Dynasty Travel, we do take our brand seriously and had been very focussed on building it from the inside out brand vision of Dynasty Travel – Customer satisfaction is our first priority and we had successfully implemented it in our business strategies. We have a clear, compelling internal brand and provides direction and motivation to employees and partners;
b. We are also continuously building our brand externally with our corporate social responsibility, D&D, roadshows, brochures production to maintain brand consistency and brand identity;
c. On why companies stay domestic is primarily companies may not want to handle risks and uncertainties on unfamiliar environment and there is lack of resources and expertise to go global.”
What’s holding back bookings growth for Thailand?
After we wrote about why German-speaking markets’ “solid” appetite for the Far East hasn’t translated into increased bookings and longtime favourite Thailand lagging behind, readers offered their thoughts.
Manuel Gordillo, senior manager, travel channels, distribution partners South-east Asia, Amadeus Asia
“Good article. Sustainability is the key word here as far as Thailand is concerned. Mass tourism from China has a lot to do with what is happening here right now – easily one-hour queues in Suvarnabhumi airport upon landing, which is not good for leisure or business travellers. On the other hand, Thailand tourism has always proved resilient. The question is whether local island operators in Phuket and Samui pick up the signals.”
Anonymous
“You don’t suppose that rampant and egregious police corruption and mistreatment and gouging of tourists by the locals could be some reasons for the diminished arrivals in Thailand? In the article, why not tell the whole truth?”
Location
The 27-storey property is a new landmark for Hua Hin and stands just beside the 3.2ha Nava Vana Water Park. Located just south off the city centre on Petchakasem Road, the hotel has no beach access but provides regular shuttles to Bluport mall, True Arena sports complex, Hotel InterContinenal and the town centre.
Hua Hin itself is about a 2.5-hour drive from Bangkok, and from May 2018 onwards AirAsia will begin direct flights to this beach town from Kuala Lumpur four times a week.
Ambience
A relaxed and convival atmosphere greeted us as we approached the hotel in our car; what caught my eye was the colourful water park and the huge whale shark ‘leaping out’ of the fountain fronting the property. After being greeted by the concierge staff and bellboys who helped with our luggage, we proceeded to the lobby on the eighth floor, where I took in the panoramic vistas of the surroundings while waiting to check in.
The marine motif runs through the bright, airy hotel, anchoring a sense of place to Hua Hin’s beach resort background. Schools of fish swam on the open-air reception on the ground floor, while the wooden centrepiece at the lobby resembles a whale skeleton. In the room, paintings of boats added a pop of colours to the interiors while the bathroom wall was adorned with scallop tiles that remind me of fish scales.
Kid Suite
Rooms
The KidSuite was a real crowd pleaser with my three-year-old daughter – how not to be when this bright little room is decked out with bunk beds, a fire-engine red wardrobe, fish-themed blinds and books on adorable marine animals?
Meanwhile, the grandparents stayed in the Ocean View Room just next door, which could be connected to the KidSuite with the closing of a common front door, providing ample private space and family time.
With most rooms facing the Gulf of Thailand, the balconies naturally provide a great vantage point to catch the sunrise and the occasional train chugging past below (a railway track runs behind the hotel).
Other room categories are Vana Nava room, Ocean Suite, Panoramic Suite and Sky Suite.
Facilities
All guests have unlimited access to Vana Nava Water Park, which boasts 20 slides and attractions. Besides keycards, we were also given wristbands that made use of RFID technology to access the water park and unlock our rooms – payment for F&B will soon be added – which was a convenient touch.
Infinity Pool
In addition to access to the water park just next door, the hotel also boasts an expansive 36m-long infinity pool on level 26 that offers captivating panoramic views – think Marina Bay Sands’ Skypark but sans the skyscrapers, plus endless sea. Other recreational facilities include a kids’ club, Tea Tree Spa and 24-hour fitness centre.
For meetings and events, the hotel offers 950m2 of flexible event space, including five function rooms and a large ballroom, all named after marine animals in Thai, e.g. Plaa Too (mackerel), Plaa Krapong (sea bass) and Plaa Muek (squid).
F&B
The all-day-dining Plamong Restaurant offers a convival and bustling space to enjoy the good breakfast spread, alongside vistas of the surroundings.
An unforgettable highlight is clearly Vana Nava Sky, the restaurant and observation deck on the topmost 27th floor with a dramatic glass-bottomed deck that extends 110m above ground. My parents, attracted by the views of the surroundings at sunset, walked halfway across the deck before realising they could see the ground below and quickly retreated back in haste.
However, children under 12 are not allowed 20.00, which might be a damper for parents staying with young kids and hoping for a post-dinner cap.
Service
Pleasant despite the weekend crowds.
Verdict
This water park resort is a destination in itself. As well, the unlimited, complimentary access to Nava Vana Water Park certainly delivers value for families when a ticket for an adult already costs around 1,200 baht (US$38.50) per day and 800 baht for kids. Moreover, children below 12 stay and eat for free with their parents.
No. of rooms 300 Rates From 3,299++ baht per room per night, including water park access
Trevor Ranges – author of National Geographic Traveler: Cambodia, 1st Edition and other travel guides – has been named Exo Travel’s product manager in Cambodia.
In his new role, Ranges is expected to draw upon his expansive destination knowledge while heading up tour development within Cambodia.
In a statement, Exo Travel says this represents an “exciting development for the country’s tourism sector”, as Ranges has “significant sway in steering the direction of Cambodia’s visitors”.
Amari Vang Vieng, Laos
Onyx Hospitality Group has opened an Amari-branded property in Vang Vieng. The design in all the 160 rooms is inspired by the hotel’s location along the Nam Song River and limestone mountain surroundings. Aside from the all-day dining restaurant Essence, other facilities on the property include the Breeze spa, an outdoor swimming pool, a gym and a Kids’ Club.
The Millennials, Japan
Billing itself as an “upscale capsule concept”, The Millennials capsule hotel brings over 120 multifunctional Smart-Pod units spread over five floors of prime Shibuya real-estate. The Smart-Pods are controlled through an in-house app that allows guests to adjust the lighting, air-flow and even the incline of their mattress. Some pods also come with projectors. Each unit comes with underbed storage for luggage which can be locked, and free Wi-Fi throughout.
In addition, the third floor of the complex functions as a large co-working space which can be used for events, while the fourth floor is home to a lounge and common kitchen.
Fairfield by Marriott Belitung, Indonesia
The economy Fairfield chain has made its way to Belitung, an island east of Sumatra. Located on Tanjung Pendam Beach, the hotel’s architecture is inspired by traditional Rumah Panggung stilted houses. All 136 guestrooms, including 11 suites, are decked out with regular mod cons, flooded with natural daylight, and face either the swimming pool or ocean. Amenities include three F&B options, The Market retail store, swimming pool, kids pool and a 24-hour gym. For events and meetings, the property offers a range of meeting spaces, from the 113m2 Pelenduk Room to the 54m2 Labi Labi Room.
FV by Peppers, Australia
Standing on Fortitude Valley’s Alfred Street in Brisbane are three 30-storey towers, two of which have been completed and houses FV by Peppers. The property comprises 986 one- and two-bedroom apartments, all of which come complete with full kitchens, a laundry area, separate lounge and dining areas, and a private balcony.
Amenities include a heated u-shaped skyline pool, a moonlight cinema, yoga retreat, fully-equipped gym, and three private spa lounges available for hire. Six by FV is the onsite all-day restaurant located on level six, which will open for hotel guests and residents for breakfast and dinner. There is also 24-hour reception, valet parking, Wi-Fi, tour desk and concierge available.
Novotel Goa Dona Sylvia Resort, India
The famed beach destination of Goa recently welcomed a newly-refurbished 181-key Novotel property, a rebrand of the Dona Sylvia Resort. The resort offers no less than five F&B options, as well as recreational facilities such as a spa an outdoor pool, fitness centr, and activity area. For meetings and events, the property has two dedicated conference rooms with a capacity to serve about 200 guests, as well as two Seaside Lawns.
Pan Pacific Hotels Group has appointed Jeane Lim as general manager of Parkroyal on Pickering.
Prior to this appointment, Lim was most recently the general manager of Destination Singapore Beach Road.
Her career spans 30 years, where the first 18 was spent with Grand Hyatt Singapore in areas of guest services, business development and sales.
Tan then spent the next 12 years with Millennium Hotels & Resorts in various positions such as director of sales and marketing at Copthorne King’s Hotel, and vice-president global sales Asia.
