Brunei takes serious look at Islamic tourism

November 16, 2017

Sultan-Omar-Ali-Saifuddien-Mosque — Sultan Omar Ali Saifuddien Mosque is one of the main attractions in the Sultanate

With Brunei Darussalam having identified Islamic tourism as a strategy to expand the tourism sector and diversify the economy, the kingdom’s tourism stakeholders are fine-tuning strategies and enhancing tour programmes to lure more visitors to the country.

Islamic tourism in Brunei Darussalam spans the local way of life or sightseeing at some of the mosques that represent the culture and heritage of Brunei, said Salinah Salleh, head of promotion and marketing at Brunei Tourism.

Omar Ali Saifuddien Mosque is one of the main attractions in the Sultanate

The major attractions for Islamic Tourism in Brunei Darussalam include a tour of the Omar Ali Saifuddien Mosque, Jame’ Asr Hassanil Bolkiah Mosque, Darul ‘Ifta Building that exhibits Islamic artefacts, The Royal Mausoleum, Brunei History Centre among others.

Salinah shared: “Brunei Tourism has been continuously working closely with the Ministry of Religious Affairs to enhance the product offerings to attract tourists to come for the purpose of Islamic Tourism. Calligraphy activities and Al-Quran reading classes have also been offered. These activities are considered as value-add to the normal travel itinerary, such as visiting mosques and Islamic gallery.

“The month of Ramadhan is a very enlightening time to visit giving a unique insight into the country’s Islamic activities and local culture.”

The main source markets for Islamic Tourism, he said, are Singapore, Malaysia, Thailand and the Philippines.

Brunei Tourism supports inbound agents promoting Islamic tours by providing materials as well as facilitating on potential Islamic tourism products and tours that would be of interest to their clients.

Freme Travel Services is an inbound tour operator selling Islamic Experience tour packages in Brunei that showcase the Sultanate’s Malay Islamic monarchy and give an insight into Malay culture and heritage and how Islam as a religion is practiced.

Sugumaran Nair, manager, inbound & MICE division at Freme Travel Services said the Islamic sightseeing tours offered at the company and have been well received by the Malaysian, Singaporean and Indonesian Muslim visitors, who make up the bulk of demand for such tours.

Year to date, the company saw a 10 per cent year on year growth.

In 2018, Freme Travel will include The Sultan Haji Hassanal Bolkiah Islamic Exhibition Gallery, expected to be open by then. The gallery will house over 1,000 Islamic manuscripts and artefacts owned by the Sultan of Brunei. There will also be research facilities available in the building.

Another new package that will be introduced in 2018 is Muslim Youth Camps. Spiritual activities such as Islamic lectures and attending mass prayers will be part of the itinerary. Youths will stay within the mosque grounds for the entire duration of the programme.

New M’sian cruise trade association on recruitment drive

By Caroline Boey

November 16, 2017

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The Malaysia Cruise Industry Association (MCIA), launched last week with 30 founding travel agent members involved in the business, is ramping up its recruitment drive by offering a free three-day course to new members.

The membership drive will be MCIA’s focus over the next three months, president Rashid Khan told TTG Asia. A member is conducting the course and MCIA is also working with local universities to identify suitable instructors.

The recently-launched MICA is looking for more members to join their ranks

Rashid said: “MCIA’s goal is to have members that can contribute to and influence the industry and, to build a quality membership, we are looking at collaborating with professional bodies and international organisations like CLIA (Cruise Lines Industry Association) to professionalise the industry and bring skills sets to a different level.”

MCIA, he said, is taking the lead in developing Malaysia’s inbound and outbound cruise industry. “The association intends to facilitate and assist the government in formulating cruise industry-specific policies and regulations that also include smaller enterprises like river cruise operators in our fold,” Rashid said.

“Our strategic road map is almost finalised. In the meantime, we are progressing with capacity development on the demand and supply sides, developing standards to professionalise the industry and protect the consumer, and engaging regional and national authorities to liberalise policy decisions, making sure there is a framework to enable sustainable participation of cruising.”

Malaysia, ranked number five in Asia, is expecting 468 cruise line port calls in 2017, an 11 per cent growth. The number of passenger destination days is also expected to increase from 740,000 in 2016 to 816,000 this year. “Since 2013 cruise line port calls have grown by 23 per cent in absolute volume,” Rashid noted.

With more cruise lines boosting capacity in the region MCIA has in place a stakeholder engagement programme and cruise lines have a platform to understand the challenges in Malaysia and the region, he added.

In a related development, MCIA is one of three main hosts of the inaugural South Sea Cruise Conference taking place in Haikou, Hainan between December 12 and 15. About 300 international and China delegates from cruise lines, government, state-owned enterprises and travel agencies are expected to attend.

Sri Lanka to levy booking tax on OTAs

By Feizal Samath

November 16, 2017

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After months of debate and discussion, Sri Lanka is finally imposing a tax on OTAs and online accommodation sites effective April 1, 2018.

The new one per cent tax on commission made on every online sale by both local and foreign OTAs – including accommodation sites like Airbnb and Booking.com – was announced in the national budget for 2018, which was presented by finance minister Mangala Samaraweera last Thursday.

OTAs like Booking.com that are operating in Sri Lanka now have to pay taxes

The money will be collected by the government, which is discussing the mode of collection. There is also a proposal to create an e-payment website in which all online businesses local and foreign need to be registered.

The move was welcomed by hotels, many of whom have raised concerns over some businesses having their commissions taxed but not OTAs.

The hotel sector is subject to 12 per cent tax per annum, on top of other taxes that all businesses pay. Foreign OTAs, since they operate abroad, were not subject to any local taxes until the latest proposal.

Local OTAs interviewed, on the other hand, opined that the tax is unfair as they already pay taxes like other companies in the leisure sector. Prageeth Hewage, founder of miracleofasia.lk, said: “Our margins will be affected badly.”

The tax however didn’t surprise the market. Airbnb has for months been in discussions with Sri Lankan tourism minister John Amaratunga and the authorities on this matter. “They (Airbnb) have agreed to pay taxes,” the minister said at a travel conference some months back.

At the PATA Annual Summit which was held in Sri Lanka in May, Airbnb official Thao Nguyen expressed a compliant stance towards taxes.

In Sri Lanka at least 40 per cent of travellers stay in non-formal accommodation from bookings made online.

International interest in Komodo rises

By Ade Siregar

November 16, 2017

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Padar-island-in-Komodo-islands,-Flores,-Indonesia. — Padar Island in Komodo National Park

Domestic and international travel buyers, including those hailing from as far as South America, are showing a growing interest in Komodo.

The second edition of the Komodo Travel Mart (KTM), which took place in the East Nusa Tenggara (NTT) capital of Kupang last month, attracted 166 buyers from 11 countries, a significant growth compared to the first one held last year, which was attended by 72 buyers.

Abed Frans, chairman of Association of the Indonesian Tours and Travel Agencies (ASITA) NTT Chapter, said: “Besides the NTT Tourism Office, we have received support (in putting up the show) from Ministry of Tourism, Ministry of Foreign Affairs, Angkasa Pura Airport Authority and Citilink.”

This was a huge improvement compared to last year’s event, where ASITA worked alone on the show, according to Abed.

While the Komodo National Park is popular internationally thanks to the aggressive promotions by the government and the development of infrastructure in Labuan Bajo, the gateway to Komodo, Abed said “we have many destinations beyond that and the Komodo Dragon to show the world”.

Indeed, Freddy Barus, general manager of Graha Buana Tour and Travel, a buyer from Jakarta, had visited KTM 2017 to see how the local tour operators in NTT design itineraries beyond Komodo Island, especially MICE-related ones.

South American travel players are also taking a closer look at NTT. For the first time 14 tour operators from six countries in the region (Argentina, Brazil, Ecuador, Chile, Columbia and Venezuela) took part in the event, which was fully supported by the foreign affairs ministry.

Julang Pujianto director, America II, Ministry of Foreign Affairs, said of 40 million South American outbound travellers each year, only 47,000 visited Indonesia in 2016.

“This is less than one per cent – if we can reach five per cent we will have two million travellers coming to Indonesia each year,” said Julang.

He said the ministry is working with tour operators to get travellers from South America to Indonesia, such as through a fam trip.

With an interest in Indonesian destinations beyond Bali, Nur Arratia, director of Chilean Exotik Time Viajes, was hoping to start bringing Chilean travellers to NTT next year.

RedDoorz aims to expand across 16 Indonesian cities

By TTG Asia

November 16, 2017

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RedDoorz, a Singapore-based online budget hotel booking chain, says it will expand into nine more cities in Indonesia in the next 12 months.

The brand, which is present in seven Indonesian cities, eyes Aceh, Balikpapan, Batam, Lombok, Makassar, Manado, Medan, Palembang and Solo, representing an investment of more than USD$10 million, although it does not detail how the sum will be spent.

(From left) Rishabh Singhi and Amit Saberwal are optimistic as they expand its offerings to more cities in Indonesia

The brand currently operates in Bali, Bandung, Bogor, Jakarta, Semarang, Surabaya and Yogyakarta, with over 500 properties with 3,000 rooms for customers to choose from.

Amit Saberwal, founder & CEO, RedDoorz said at a local press briefing: “Our aim is to expand to 16 cities in Indonesia by 2018 targeting young adults who are tech-savvy. Ninety per cent of our customers book via the RedDoorz app where they can redeem the RedCash earned.”

He added that RedDoorz to-date has serviced over half a million customers in Indonesia, with a 65 per cent repeat rate. Its top three performing cities are Bandung, Jakarta and Yogyakarta.

“Our staff strength currently here is 120 people and we plan to double this team over the next 12 months and become profitable in Indonesia by third quarter of 2018,” said Saberwal.

A press release from RedDoorz cited a joint May 2016 study, “e-conomy SEA” by Google and Singapore’s Temasek Holdings that found that Indonesia ranked top as the world’s fastest-growing Internet market, spelling a huge potential for the online travel market. It also predicted that the regional market for online travel including hotels, airlines and rides will increase to close to US$90 billion by 2025, compared to US$21.6 billion in 2015, with Indonesia expected to generate a third of this growth.

Said Rishabh Singhi, COO of RedDoorz: “The Indonesian market has proved to be a great starting point for RedDoorz. We have worked closely with the mid-sized budget hotels, independent properties and guesthouses to innovate, collaborate and focus on creating unique experiences to attract guests from within Indonesia and actively reach out to the 250 million tech-savvy consumers. Through our platform, the hotels are able to carve out niches that will sustain sufficient occupancy,”

RedDoorz also operates in India and soon, the Philippines. It has continued investment from prior rounds from International Finance Corporation (private investment arm of World Bank Group), Asia Investment Fund of Sushquehanna International Group and Jungle Ventures. Earlier this year, RedDoorz raised an additional US$1million in venture debt from InnoVen Capital, a venture lending firm owned by Temasek Holdings and United Overseas Bank.

Aviation roundup: Tianjin Airlines, AirAsia, Fiji Airways and more

By TTG Asia

November 16, 2017

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Tianjin Airlines heads Down Under
Tianjin Airlines has opened a new route directly from Melbourne to Chongqing, its first transcontinental air route to Australia.

Served by an Airbus A330-300, flights will depart Chongqing at 10.10 on Tuesday, Thursday and Saturday, arriving in Melbourne the following day at 11.40. The return leg then leaves Melbourne on Wednesday, Friday and Sunday at 13.40 for arrival back in Chongqing at 21.40.

Tianjin Airlines is also set to launch a new route from Sydney to Tianjin via Zhengzhou on January 29, 2018.

AirAsia to add new routes, frequencies between Thailand and China
Starting February 2018, AirAsia will add two new routes to China – namely Don Muaeng-Chengdu and Phuket-Kunming – and increase frequences to existing Chinese cities in its network.

As well, on the following routes – Don Mueang-Xi’an, Don Mueang-Kunming and Don Mueang-Guangzhou – frequencies will be increased from once to twice daily.

Fiji Airways ups Nadi-S’pore frequency for peak season
Fiji Airways has added a third weekly service between Nadi and Singapore during peak seasons. The service will operate from Singapore on Thursday, starting April 5, 2018, operating April, May, July, August and December.

The airline currently operates twice-weekly flights departing from Singapore on Wednesday and Saturday, a service that commenced in 2016 as the quickest route between South-east Asia and the South Pacific.

Bangkok Airways deepens partnership with Qatar
Bangkok Airways launched a frequent flyer programme partnership with codeshare partner, Qatar Airways, on November 1.

This allows Bangkok Airways’s Flyer Bonus members to earn points when travelling on Qatar Airways flights. Similarly Qmiles members can earn and redeem their miles when travelling on Bangkok Airways flights and get the opportunity to redeem Qmiles across Bangkok Airways’ network.

Hard Rock Hotel Shenzhen appoints GM

By TTG Asia

November 15, 2017

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Glenn Peat has been appointed general manager of Hard Rock Hotel Shenzhen , the brand’s first hotel in mainland China.

Peat’s most recent post was hotel manager at Pudong Shangri-La.

The New Zealander has 20 years of hospitality experience in various roles with Hyatt Hotels & Resorts, and has worked in destinations including China, India, Australia and New Zealand.

Hopes high for demand on Jaipur-Kuala Lumpur route

By S Puvaneswary

November 15, 2017

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AirAsia X will commence four-times-weekly flights between Kuala Lumpur and Jaipur from February 5, 2018, a link welcomed by both inbound and outbound agents in Malaysia.

An inbound agent from Malaysia, Arokia Das, senior manager at Luxury Tours Malaysia, said: “This direct flight will give a more compelling reason for those staying in Jaipur to travel on holiday to Malaysia. It saves travel time and cost of having to travel to Delhi to take a flight to Kuala Lumpur.

Attractions like the Taj Mahal is closer to Jaipur than Delhi

“The new flights will also attract business events delegates from Jaipur. We will include Jaipur in our programme when we do sales calls in Delhi in January 2018.”

An outbound agent, Adam Kamal, manager at Aidil Travel & Tours, opined that the flights will create a new honeymoon destination for Malaysians as Jaipur is scenic and rich in history and culture. Some old palaces in Jaipur have also been converted into hotels, which will be of interest to Malaysians looking for unique experiences, he said.

He added: “Travelling from Jaipur to Agra to visit the Taj Mahal is also closer than travelling from Delhi. We plan to do sales calls to Jaipur next year and communicate directly with Jaipur agents, rather than go through wholesalers in Delhi.”

Start-up lures online travel reviewers with commissions

By TTG Asia

November 15, 2017

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A peer-to-peer travel booking platform just launched in Singapore is touting commissions for users making travel recommendations that result in bookings.

Trvl received US$3.5 million in funding with which it aims to become a global player with millions of users. It is founded by Jochem Wijnands, who had sold his previous company Prss to Apple for an undisclosed amount to become Apple News.

Peer-to-peer travel booking platform goes global

The start-up states that the website displays user reviews during the booking process, and pays those offering “peer-to-peer travel advice” a commission of up to 15 per cent on every booking.

“We’re living in the DIY age of travel bookings, and Trvl is rewarding (travellers) for acting like your own travel agent,” said Wijnands.

Trvl cites its own research showing that 91.7 per cent of respondents value personal recommendations highly or very highly. It is not stated if the same can be expected from online reviews tied to commissions.

Arthur Hoffman, COO of Trvl, said: “When deciding where in Asia to launch first, the choice was easy. Singapore is an affluent nation of passionate travellers.” Citing Euromonitor, Trvl shared that 89 per cent of Singaporeans are making travel bookings online (as of September 2017), whereas 10 years prior it was just 36 per cent.

Singapore airfares fall on key business routes: CWT/CAPA

By TTG Asia

November 15, 2017

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Airfares for key Singapore business routes – including Jakarta, Kuala Lumpur, Shanghai and New York – fell over five per cent the past year, according to CWT Solutions Group, the consulting division of Carlson Wagonlit Travel, and CAPA – Centre for Aviation.

“Singapore remains one of the most competitive aviation markets in the world and this, along with lower oil prices, has pushed airfares down over the past year,” said Richard Johnson, director, Asia Pacific, CWT Solutions Group. “The new terminal at Changi Airport will further alleviate capacity pressures, theoretically allowing for more competition and creating further downward pressure on fares.”

Competitive Singapore market has pushed airfares down

“That said, we do expect to see an increase in average ticket price over the next year as oil prices creep back up and airlines begin to rationalise capacity. Segmentation of fares is also becoming more prevalent, allowing airlines to grow their revenues through the ancillary portions of the ticket cost,” added Johnson.

The Business Travel Pulse report also revealed that passenger numbers for Singapore increased by 5.9 per cent in 2016, supported by growth across all regions as air travel to and from South Asia, Africa and the Americas saw double-digit growth.

The number of seats increased 3.9 per cent increase in 2016. Currently, more than 80 airlines operate at Changi Airport, connecting Singapore to some 380 cities across 90 countries and territories worldwide. Stiff competition in the market has kept airfares in check.

Looking at hotels, occupancy rates in Singapore are stable at 82.1 per cent in 2017, a slight decrease of 0.3 per cent versus 2016. Last Room Available rates are also expected to remain flat this year. Meanwhile, with new supply coming into the city, the average daily booked rates have decreased by S$3.70 (US$2.70) compared with 2016, indicating a favourable market for buyers.

Brunei takes serious look at Islamic tourism

New M’sian cruise trade association on recruitment drive

Sri Lanka to levy booking tax on OTAs

International interest in Komodo rises

RedDoorz aims to expand across 16 Indonesian cities

Aviation roundup: Tianjin Airlines, AirAsia, Fiji Airways and more

Hard Rock Hotel Shenzhen appoints GM

Hopes high for demand on Jaipur-Kuala Lumpur route

Start-up lures online travel reviewers with commissions

Singapore airfares fall on key business routes: CWT/CAPA

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