The Indonesian Ministry of Tourism is upbeat about achieving its target of 15 million arrivals this year after seeing strong inbound growth in 1H2017, particularly in key source markets.
Indonesia welcomed nearly 6.5 million visitors, or 43 per cent of the year’s target, in 1H2017, representing a 15-18 per cent growth from the same 2016 period.
Indonesia has seen a strong growth in inbound numbers and is on track for its 15 million target for the year; Raja Ampat pictured
Key markets China and India are showing immense potential, said deputy minister for international tourism I Gde Pitana, with each growing 40 per cent in June 2017. For the overall 1H period, China grew 45 per cent and Australia 18 per cent.
Pitana said after two years of building the Wonderful Indonesia branding this year, Indonesia will focus on aggressive selling as well as collaboration with airlines and wholesalers to court the Asia-Pacific market.
“We have prepared 54 hardselling activities with 30 exhibitions and 24 sales missions. For promotion we have joined 61 exhibitions such as IT&CM, PATA Travel Mart and 44 festivals in Asia-Pacific (so far), and there are 40 more to go until the end of the year,” Pitana elaborated.
The tourism ministry has also ramped up marketing campaigns across different mediums to the tune of nearly 1.4 billion rupiah (US$103,756). Pitana explained that the ministry has 10 online media partnerships and is targeting 21 million clicks this year, and 666 out of 1,020 units of outdoor advertising in 15 different countries have been rolled out.
The ministry is also looking to attract foreign travellers through border gateways, which is currently estimated to make up 10 per cent of total arrivals annually. A special programme, Hot Deal for Cross Border Tourism, was launched recently to attract travellers from Singapore and Malaysia to fill idle weekday capacity on ferries to Bintan and Batam.
However, Panorama Destination CEO Renato Domini opined that the ambitious future target put forth by the Ministry of Tourism remains a tall call. “We are still lacking adequate air capacity to destinations beyond Bali. Especially for India to really take off, we need more non-stop direct links between the two countries,” he said.
Singapore Cruise Centre (SCC) and Nongsa Terminal Bahari (NTB) have sealed a marketing collaboration agreement to promote tourism in Batam and Riau Islands.
Under the agreement, SCC and NTB will jointly work on marketing and promoting activities, recent developments and ongoing projects in the area, to ensure a sustainable and continual growth in passenger traffic to Nongsa, Batam and the Riau Islands.
Both terminal operators are working together to bring more visitors to the Indonesian islands
In addition, SCC will work with NTB to help the ferry terminal operator enhance safety, security and customer service at its terminal which could serve as a model for further cooperation with other ferry terminals in Riau Islands.
The Air Race 1 World Cup Thailand 2017 will take place in November
The Tourism Authority of Thailand’s (TAT) will launch the Amazing Thailand Tourism Year 2018 on November 1, which will highlight a calendar of international events and cultural elements that enhance the appeal of the country’s tourism.
The Amazing Thailand Tourism Year 2018 promotion will focus on seven distinct categories, including sports tourism, gastronomy tourism, maritime tourism, wedding and honeymoon tourism, medical and wellness tourism, community-based tourism and leisure destinations.
The Air Race 1 World Cup Thailand 2017 will take place in November
As well, key events will be given highlight for The Amazing Thailand Tourism Year 2018. These include:
– International Fleet Review, which will be hosted by the Royal Thai Navy to mark ASEAN’s 50th anniversary since its founding. Over 40 modern warships and 10,000 crew members from 30 countries are expected to join the historic fleet display on Pattaya Bay from November 13 to 22, 2017;
– Air Race 1 World Cup Thailand 2017, which is scheduled from November 17 to 19, 2017 at the U-Tapao Rayong-Pattaya International Airport. It will be the only international air race where multiple heats are flown at the same time;
– 4th UNWTO World Forum on Gastronomy Tourism, which is scheduled for May 2018 and will help support the TAT’s gastronomy tourism efforts by promoting Thai food and the country’s culinary potential on a global stage; and
– MotoGP World Championship superbike races, which will be hosted at Buri Ram’s Chang International Circuit starting from October 2018, following the recent signing of a three-year contract with MotoGP owner Dorna Sports.
Redtable leveraging Klook's presence in markets such as Singapore, Indonesia and Malaysia
Redtable, a Seoul-based restaurant marketing developer, has partnered tours and activities platform Klook to expand its sales channels and bring food tours into South-east Asia.
Within a day of being posted on Klook, several food tours were already reserved and paid for, Redtable CEO Hae-yong Do said.
Redtable leveraging Klook’s presence in markets such as Singapore, Indonesia and Malaysia
“Given the high level of interest in South Korean food across South-east Asia, thanks to the Hallyu boom (Korean wave), we are hoping that our contract with Klook serves as a valuable opportunity for us to promote Korean food to people living in areas where the app is available,” Do added.
Klook has presence in Asian markets such as Hong Kong, Taiwan, Singapore, Indonesia and Malaysia.
Redtable already supplies food tours to major Chinese travel agencies, including Ctrip, Tuniu, Alitrip, TongCheng and Qiongyou, as well as restaurant review website Dianping and social commerce company Meituan.
It is also working with the Seoul Metropolitan Government to develop a multi-language mobile menu service to revitalise the city’s food tourism industry. It has also partnered the Korea Tourism Organization to target Chinese tourists with food tours.
Amadeus has integrated Livn’s database of 19,000 tours and activities to afford travel agents more seamless booking of in-destination tour products and greater cross-selling and upselling opportunities.
Following a trial among key agents, the Livn integration will initially cover the Australia and New Zealand markets. Agents will have access to products supplied by the likes of Intrepid Group, G Adventures, Disney, Gray Line, Pro-Dive and Tourism Holdings.
Through the Amadeus Selling Platform Connect, agents can incorporate tours and activities into any booking with real-time availability, confirmation and pricing through Livn.
“This partnership with Amadeus is a breakthrough that dramatically expands our travel agency distribution footprint and is great news for our partners,” said Livn co-founder Steve Martinez. “We have managed to automate the entire tours and activities booking process within the existing Amadeus workflow with instant confirmations and ticketing being returned in seconds.”
Tony Carter, managing director at Amadeus IT Pacific, said the Livn integration represents a major opportunity for agents to satisfy client demand for in-destination experiences while earning additional commissions.
“Until now the fragmented nature of the tour and activity business has always made it difficult for travel agents to book these products,” said Carter.
Pan Pacific Hotels Group (PPHG) has appointed Craig Syphers as general manager for Parkroyal on Beach Road, Singapore and Andrew Donadel as general manager for Pan Pacific Orchard, Singapore.
Syphers first joined PPHG as general manager of Parkroyal Melbourne Airport in 2013 and was transferred to Pan Pacific Orchard, Singapore two years later.
Syphers
Prior to joining the group, Craig had worked at several international hotels in his native Australia and New Zealand.
Meanwhile, Donadel began his career with PPHG as the general manager of Pan Pacific Serviced Suites Beach Road, Singapore and Parkroyal Serviced Suites, Singapore. In 2014, Andrew moved to Ho Chi Minh City to head Parkroyal Saigon.
Donadel
The Australian started his hospitality career with The Westin Sydney and Montreal Marriott Chateau Champlain before moving to Ascott International, where he spent six years managing Somerset, Citadines and Ascott serviced residences in Singapore and Australia.
When one plans a road trip, it is usually about the spectacular scenic routes and major highlights that one gets to experience along the way. But what about doing something different and embark on a trip to discover some of the most beautiful villages in the world with Budget Rent-a-Car?
Budget customers can easily explore Alberobello, with its conical “Trulli’ buildings in southern Italy; pull over and bask in the laidback atmosphere of Monteverde in Costa Rica, surrounded by cloud forest or even take a pit-stop to wander around the picturesque village of Bourton-on-the-Water in the Cotswolds, England.
These stunning locations have never been easier to visit as Budget offers affordable car hire in more than 120 countries worldwide, from approximately 3,500 locations. Additionally, Budget offers a wide range of models, with a choice of sizes and styles to suit differing requirements.
Regularly voted as one of the prettiest villages in England, Bourton-on-the-Water is quintessentially British, with its quaint, stone-built buildings and the small bridges which cross the River Windrush. Stretch your legs for a stroll around the village or sample some of the sweet treats in one of the many traditional tea rooms which line the streets. Renting a car means one can easily travel around and discover the surrounding Cotswolds towns and villages, known in England as an ‘area of outstanding natural beauty’.
In complete contrast, Budget drivers can journey on the winding road to Monteverde which is perched high up on Costa Rica’s continental divide. The village itself is filled with restaurants and artisan craft shops, but the real beauty lies in the surrounding coffee plantations and cloud forests which is home to an abundance of wildlife, including monkeys and colourful birdlife. Monteverde is only accessible by road, so hiring a car is the best way to access this remote Costa Rican village.
With the windows rolled down, explore the pretty region of Puglia in southern Italy, making a stop in Alberobello. Alberobello is most famous for its unusual white-washed houses with cone-shaped roofs, known as Trulli houses which are made from dry stone. Here, one can easily park the Budget car at Largo Martellotta and go on foot, following the steps to the main square, known as Piazza del Popolo, and be rewarded with fabulous views over the entire quirky village. After exploring the sights, refuel on typical Italian cooking in one of the many authentic trattorias. The cuisine is sure to delight!
Driving with Budget cars is simple and with so many beautiful villages located across the world, be inspired by the collection to help decide on the next road trip. The only difficulty would just be to decide which destination to discover first!
Gutlin: cyber-attacks a real threat in highly interwoven air transport industry
Airlines and airports are estimated to spend nearly US$33 billion on IT this year, with cyber security, cloud service investments and passenger self-service topping their agenda, according to the SITA 2017 Air Transport IT Trends Insights released this week.
This year, spend as a percentage of revenue is projected to rise to an estimated 3.3 per cent or US$24.3 billion for airlines, and 5.5 per cent or US$8.4 billion for airports. Looking ahead to 2018, over 70 per cent of airlines and 88 per cent of airports are expecting IT spend to increase or remain at the same levels as today.
Gutlin: cyber-attacks a real threat in highly interwoven air transport industry
As IT spend increases, airlines and airports agree that the number one priority for their investments is cyber security. Nearly all respondents – 95 per cent of airlines and 96 per cent of airports – plan to invest in major programmes or R&D on cyber security initiatives over the next three years.
Cloud services are another top priority which 95 per cent of airlines and 85 per cent of airports plan to invest in over the next three years, continuing an upward trend that SITA has recorded since 2015.
Ilya Gutlin, president, air travel solutions, SITA, commented: “Cyber attacks are a very real threat in the highly interwoven air transport industry so building solid defences is essential. Cloud services provide important efficiencies, which play a key role in keeping costs down.”
The third key area of investment highlighted by airlines and airports is passenger self-service. Today the vast majority of airlines provide check-in (73 per cent), boarding (70 per cent) and flight status notifications (68 per cent) via mobile, and more than 97 per cent plan to do so by 2020.
Moreover, the proportion of airlines providing real-time flight updates over social media is estimated to rise from 31 per cent to 92 per cent in the next three years.
Airports operators are looking to new technologies such as the Internet of Things, beacons and sensors to support their goals. SITA’s insights show that 80 per cent are investing, or planning to invest, in these technologies over the next three years. Nearly three quarters, 74 per cent, are investing in way-finding solutions and 68 per cent in personalisation solutions.
Smits will be with the chain until the end of the year
InterContinental Hotels Group (IHG) has announced a new operating region that combines Europe, Middle East, Asia & Africa (EMEAA) to be based in the UK, effectively relegating the current regional office in Singapore which covers AMEA (Asia, Middle East and Africa) to a sub-regional division.
A second shock is the resignation of Jan Smits, the current AMEA CEO who is widely respected by Asian owners and hospitality professionals as running a tight ship and sealing long-lasting, trustworthy relationships.
The restructure is the first major move made by IHG’s new group CEO, Keith Barr, who rose to the top on July 1 after making a mark as IHG’s CEO of Greater China, then as its chief commercial officer. The new CEO Barr picked to run EMEAA, Kenneth Macpherson, is currently IHG’s CEO of Greater China. Replacing Macpherson as CEO of Greater China, which remains as a regional office, is Jolyon Bulley, currently COO of Americas and was COO of Greater China.
Smits will be with the chain until the end of the year
The changes will take effect at the start of 2018. Smits will remain with IHG until the end of this year.
Some in the industry are pondering the logic of IHG moving farther away instead of staying close to the fastest-growing hotel market, Asia-Pacific. An EMEAA region is also atypical for the industry, raising eyebrows if such a “mega” region and one so diverse is do-able.
Just running Middle East and Asia is a challenge, pointed out Robert Williams, partner and head of hotels & hospitality Asia-Pacific, Withers Worldwide, based in Singapore. “So this is bold. And, trying to manage Asia from Europe – not many have succeeded there. Strong senior and empowered management on the ground in Asia and a clear mandate for them to execute strategy will be key.”
Asked how he thinks this will affect the current regional office in Singapore, Williams said: “Asia-Pacific is a key growth engine for the industry. That often gets overlooked by management teams in Europe and the US, who point to its smaller current size. Those sitting in Singapore may feel disenfranchised initially, and will miss Jan’s great leadership. But Kenneth has long been identified as a superstar and will no doubt represent Asia strongly in Denham.”
Asian owners and owner-representatives that let IHG manage their hotels are concerned. Said a shocked Choe Peng Sum, CEO, Frasers Hospitality Group: “First of all, the two major regions are so diverse, and to lump all operations under the UK? Just spells a little to owners like us that Asia is not that important anymore! I am indeed concerned whether we will get the attention for our properties in Asia out of Europe. There are so many opportunities both in Europe as well as Asia, two major distinct regions – it doesn’t quite figure to me.
“Secondly I am shocked and sad to see Jan leave the group as I have seen how he has led AMEA with passion and dedication, and the tremendous growth the group has seen under his watch. The attention to detail and the approachability whenever we need help or attention is always there. I hope things are not going to change with this major reshuffle. If so, we will certainly make our own plans for a reshuffle as well.”
On the flip side, Withers’ Williams thinks the move may give Barr more direct visibility into and control of Asia. “Arguably, it improves Asia’s representation in the head office too. Hopefully this feeds into the overall imperative for IHG, which must be to become the global operator that makes a difference quickly and much more aggressively.
“IHG has a track record of putting through a very deliberate reshuffle every four years or so. With a new group CEO at the helm, this is an early move to shape the management team and regions in a way that aligns with the vision the board is asking Keith Barr to deliver on,” said Williams.
He agrees with the sentiments being expressed on Smits’ sterling leadership. “Jan has built a great management team in Singapore and steered the region to record growth during a period in which two IHG legends Anthony South and Paul Logan (IHG’s development chiefs in AMEA) retired, and in which IHG has not been as aggressive with capital as some of its competitors. That is a legacy he can be very proud of.”
In a statement, IHG assured that the UK-based EMEAA region will operate through “strong” sub-regional divisions based in a number of locations, including Singapore, “to ensure the business remains close to hotel owners, guests and colleagues”.
“By bringing two strong, established regions together as one, the company will focus on further growth through increased agility and effectiveness,” it said.
Barr said in the statement: “The success of our current AMEA and Europe regions has put us in great shape. Our clear and focused strategy that remains unchanged, along with the investments we have made, has seen our business grow significantly in these markets. We are now ready to take the next step, which will continue to drive operational performance and accelerate the growth of our brands.
“The EMEAA region will be hugely diverse with tremendous opportunity. With Kenneth’s experience in our fastest-growing region, sharp focus on operational excellence and strong background in consumer brands, he has both the experience and passion to take our new region forward.”
While agents operating out of Singapore say they are barely seeing a dent in demand for Malaysia after a tourism tax recently kicked in, trade players in the destination are concerned the budget travel segment might take a hit.
Joe Lim, executive director of Singapore’s Konsortium Express & Tours, told TTG Asia: “The news had been discussed for some time before finally being implemented. Customers have accepted it and it’s not turning them off from visiting Malaysia.”
Lim added that the exchange rates for the Malaysia ringgit has also made the price difference “negligible”.
Some confusion may arise when budget hotels do not clarify that they are collecting the tax, senior sales and marcom manager of TACentre.com Philip Gejon said, leading guests to mistake it for room payment.
Price-sensitive segments who typically choose budget hotels may opt for unregistered accommodation instead
Aside from this minor hiccup, customers are “quite accepting” of the tax, especially as “hotels are not that expensive” even in capital city Kuala Lumpur, said Gejon.
However, trade players in Malaysia say this acceptance does not come easy for the more price-sensitive segments – including younger travellers from the region and backpackers from longhaul countries.
Ally Bhoonee, executive director, World Avenue, said the company’s student travel segment, who typically opt for budget hotels, has taken the biggest hit.
Raaj Navaratnaa, general manager at the Johor-based New Asia Holidays Tours & Travel, shared that he had a group of 30 youth from Singapore refuse to pay the tax as it was not included in the package price.
The high tax to rate ratio at budget hotels has PK Leong, president, Malaysia Budget Hotel Association, concerned that the association’s members would lose their competitive edge to unlicensed accommodation providers.
“A RM10 tourism tax (could be an) additional 20 per cent to (budget hotel) rate. That is very high. We had members saying that guests walked out upon hearing about the tax. Where do you think they will go? Airbnb operators will benefit because it is unregulated and not registered by the government,” he said.
Alex Lee, CEO at Ping Anchorage Travel & Tours based in Terengganu, added: “In the long run, I foresee backpackers from longhaul destinations shortening their stay in Malaysia and neighbouring countries like Indonesia and Thailand benefiting from it.