The Indian government has announced a slew of measures aimed at boosting the country’s tourism and hospitality sector in the Union Budget 2025-26 presented by finance minister Nirmala Sitharaman last week.
The central government will collaborate with state governments to develop top 50 tourist destinations in the country through a “challenge mode”. Land for building key infrastructure will be provided by states. Hotels in these destinations will be included in the infrastructure Harmonized Master List (HML), which will offer investors a host of benefits such as access to more External Commercial Borrowings (ECB) funds and eligibility to borrow from India Infrastructure Financing Company.
State governments will play a part in tourism development, and incentives will be given to those that are effective in their destination management efforts; Parliament House, New Delhi pictured
Furthermore, performance-linked incentives will be offered to state governments for effective destination management, such as having made investments in tourist amenities, cleanliness and marketing efforts.
Pradeep Shetty, vice president, Federation of Hotel and Restaurant Associations of India (FHRAI), said: “Inclusion in HML will facilitate access to cheaper and long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector.”
The government of India plans to modify its regional airport development programme to enhance connectivity to 120 new destinations and support helipads and smaller airports in hilly and north-eastern parts of the country.
“The Union Budget 2025 marks a significant step in supporting the sustained growth of India’s aviation sector. We commend the government’s commitment to infrastructure which will make air travel more accessible, thereby boosting tourism and the economy on the whole,” said Vinay Dube, founder and CEO of Akasa Air.
The Indian finance minister also announced that the central government is considering visa-fee waivers for certain tourist groups. Kush Kapoor, CEO, Roseate Hotels & Resorts, feels that the announcement of visa waivers will undoubtedly make India a more accessible and attractive destination for global travellers.
replacing 24 traditional internal combustion engine fleet vehicles with electric powered vehicles
Brisbane Airport has become Australia’s first airport to achieve net zero emissions (scope 1 and 2), allowing passengers using the facility to rely on 100 per cent renewable-backed electricity generation.
Scope 1 are direct emissions from sources that are owned or controlled by the organisation, while Scope 2 are indirect emissions released into the atmosphere from the use of purchased energy.
Brisbane Airport has replaced 24 traditional internal combustion engine fleet vehicles with electric powered vehicles in its journey towards net zero emissions
“We are proud to have achieved this milestone. As a sustainability leader, we take our role in reducing our impact on the environment very seriously,” said Brisbane Airport chief executive officer, Gert-Jan de Graaff.
“But there is far more work to be done. We know the most significant source of emissions comes from aviation fuel used by our airline partners. It’s why we continue to represent all airports on the Australian Jet Zero Council, and support research undertaken at Brisbane Airport by Stralis which is developing a hydrogen-electric aircraft, with a test-flight planned for this year.”
Brisbane Airport Corporation has reduced its scope 1 and 2 emissions by 97 per cent through the purchase of 100 per cent renewable electricity generation from Stanwell, a Queensland-based wind farm and solar energy provider; expanding onsite solar to 10MW; and replacing 24 traditional internal combustion engine fleet vehicles with electric powered vehicles.
The remaining 3 per cent of emissions have been offset through native bush regeneration projects in southwest Queensland via Tasman Environmental Markets.
Renewable power on facility is used to “operate everything”, from check-in systems, baggage conveyors, air conditioning, departure screens, escalators, electric ground services equipment, right through to the runway lights that guide aircraft safely into the sky, detailed de Graaff.
Commenting on the achievement, Queensland treasurer and energy minister David Janetzki, said: “This strategic partnership demonstrates demand for Queensland’s high quality renewable energy as we shift to a reliable, affordable and sustainable energy system.”
Stanwell CEO Michael O’Rourke recalled that Brisbane Airport was the company’s first customer for its renewable energy pipeline when a deal was inked in 2022.
Asia-Pacific destinations’ cultural and historical richness, authentic hospitality as well as quality travel products sold at attractive prices have been lauded as solid draws for luxury travellers, according to hoteliers and DMCs participating at the recent Further East 2024 luxury travel tradeshow in Bali.
Travel and tourism players in this region have become ever more innovative with their products and services to charm well-travelled guests, especially as luxury travellers – particularly those from the west – turn away from flashy experiences to favour engaging and immersive options.
Street food culture is brought into The Nanee hotel in Bhaktapur, Nepal though the Bara Shop
Le Hong Lan, co-founder of Luxperia, Vietnam, said tours today are focused on delivering enhanced personalised experiences across the whole journey.
An example lies in a Luxperia programme where guests are invited to dinner with a Michelin-starred chef – Lan said the experience extends beyond the food.
“Having dinner at a Michelin-starred restaurant is nothing special for high-end travellers. However, having dinner with a Michelin-starred chef while learning to prepare Vietnamese dishes and then taking home the prized recipe is,” said Lan.
He added that the experience is special, as the interaction with the chef results in practical tips, such as substitute ingredients that guests can use back home to create a fusion Vietnamese dish of their own.
Over at Destination Asia Indonesia, 15 Impact Tour programmes have been created. These feature local personalities heading unique causes – such as interaction with someone specialising in fireflies conservation, where guests will visit rice fields in the evening to watch the lightning bugs dance in the dark; and participation in a women empowerment project.
Elaborating on the women empowerment project, David Nuetzel, director of leisure at Destination Asia Indonesia, said the initiative was founded by Sari Pollen, known affectionately as Ibu Sari, who had risen up from a difficult life following her divorce and a 12-year separation from her daughter. She created a safe space for vulnerable women and children in Bali after realising that many other women had gone through similar adversity. The women’s centre provides a secure environment for divorced women, who are often highly stigmatised and ostracised by their community, according to Nuetzel.
At the centre, women learn to cook, make clothes and accessories, and selling techniques. Visitors are invited to learn about Ibu Sari and the role of women in the Balinese society, as well as to participate in activities such as herbal tea workshop, batik painting, soap making, paper recycling, or cooking. A Balinese lunch, prepared by the women at the centre, is also served to visitors.
Product innovation with regenerative tourism in mind is also happening.
The Nanee, an 18-room hotel in Bhaktapur, Nepal, is a good example. It was built and opened in 2023 as “an experiential property to contribute to the sustainability and regeneration of the heritage of Bhaktapur”, said managing director Ajay Pradhanang.
Bhaktapur was designated as a UNESCO World Heritage Site in 1979, and is recognised for its outstanding cultural and historical significance.
Bhaktapur’s heritage and culture are given attention through The Nanee’s Storytelling Room where local artisans, storytellers and cultural experts often come to share their stories about the destination with guests. The hotel also conducts various tours and activities for guests to experience and appreciate Bhaktapur, such as street food tours, pottery workshops, and interaction with local artisans in their home, workshop or gallery.
Pradhanang explained that when visitors immerse themselves in the way of life in Bhaktaphur, they inject income into the local community, allowing the locals to sustain their traditions.
Ibu Sari lifts Balinese women and children through her support centre, where visitors are invited to join them in activities
Attractively priced
The abundance of meaningful experiences unique to Asia-Pacific also comes at a good price point.
Comparing Asia with the Caribbean, which is also popular among US travellers, Nuetzel said that while airfares to this region are not cheap, due to the vast distance, luxury travellers could score a top-notch hotel stay for US$1,000 to US$1,500 per night; in the Caribbean, the same would cost between US$3,000 and US$4,000 per night, or as high as US$8,000 per night.
Luxperia’s Lan added that the hotel landscape in Asia-Pacific has become a lot more exciting after the pandemic, with many investors erecting new hotel projects and appointing international brands to manage their properties.
In Vietnam, hotel capacity has boomed, especially as developers convert apartments and residences into hotels. The supply surge has dampened prices, making fresh accommodation options available at attractive prices.
Lan added: “Similarly, airlines are expanding their network. Vietnam Airlines, for example, not only flies to and from Vietnam, but also across the region, serving routes between Laos and Cambodia. This creates borderless travel and gives travellers more destinations to choose from. With more choice, travellers’ demand has become more sophisticated,” he remarked.
Powerful welcome
Serge Dive, CEO of This is Beyond, which owns the Further East event, said Asia-Pacific is also very powerful in the competition for travellers because of its hospitality spirit.
“The region often holds very different values to those in the West. For one, many Asia-Pacific countries traditionally elevate the collective over the individual; from Confucius to Buddhism, people here have a root awareness of the small improvements to body and mind that link every human being. We can see that in how Asia-Pacific brands treat their guests by emphasising subtle touches that slowly align into a satisfying whole, even if you don’t notice that as much as splashier, typically luxurious elements to service and design.
“It’s the difference between waiting for a huge meal under magnificent chandeliers and eating by the ocean, under a night sky, with the guy who caught the crab putting it on the grill a few feet away.
“Travel in this region is more naturally attuned to what we have in common, instead of what keeps us apart,” Dive explained.
He added that the “sheer optimism of tens of millions of hospitality workers in Vietnam, Indonesia, Japan, Malaysia, New Zealand, etc, is very special”, and has the power to deliver a spectacular welcome to guests from all over the world.
Fili Hotel at NUSTAR Resort and Casino in Cebu has appointed Onelle Pacheco-Verzosa as its director of sales for the wholesale market.
Pacheco-Verzosa was previously the director of sales at Millennium Heritage Hotel Manila. She has held sales and marketing positions at other properties including Boracay Tropics and Hotel Celeste, Holiday Inn and Suites Manila Galleria and Camp John Hay Manor.
Centara Hotels & Resorts has appointed Prapaijit Thongma as general manager of Centara Villas Phi Phi Island, set to open in 1Q2025.
Having joined Centara Hotels & Resorts in 2001, Prapaijit’s journey began as front office manager at Centara Grand at Central Plaza Ladprao Bangkok, where she quickly rose to director of rooms. She further honed her skills in various leadership positions, including executive assistant manager at Centara Grand Beach Resort & Villas Krabi and resident manager at Machchafushi Island Resort & Spa Maldives, The Centara Collection.
Her expertise proved invaluable during the successful openings of both Machchafushi Island Resort & Spa Maldives, The Centara Collection and Centara Ras Fushi Resort & Spa Maldives, where she was appointed hotel manager in 2013 and promoted to general manager in 2014.
From there, she advanced to area general manager, overseeing both Maldives properties – Machchafushi Island Resort & Spa Maldives, The Centara Collection and Centara Ras Fushi Resort & Spa Maldives.
Malaysia has set the mandatory Employees Provident Fund (EPF) contribution rate for foreign workers at two per cent to ensure fair treatment of workers of all nationalities, in accordance with international standards.
The move follows the tabling of the 2025 Budget in October 2024 by prime minister Anwar Ibrahim, and details will be announced by the Human Resources Ministry following Cabinet discussions.
The Malaysia Budget and Business Hotel Association has urged strict enforcement of minimum sum contribution to Employees Provident Fund by short-term rental accommodation providers
The Malaysia Budget and Business Hotel Association (MyBHA) has welcomed the government’s decision.
MyBHA president Sri Ganesh Michiel described the move as a progressive step toward supporting the resilience of local businesses, particularly in the hospitality sector, amid rising operating costs.
“However, we urge the government to ensure that this policy is followed by strict enforcement against short-term rental accommodation providers that often employ foreign workers without complying with labour laws and regulations,” he said.
Michiel highlighted that many short-term rental accommodation (STRA) operators fail to meet legal requirements such as tax payments and safety compliance, while also employing undocumented foreign workers without adhering to the EPF contribution law.
“This situation has not only created unfair disadvantages for licensed hospitality providers but has also negatively impacted the sector’s competitiveness and the country’s revenue. Additionally, STRA operators can attract customers with lower prices due to the lack of operational costs they bear compared to licensed hotels,” he added.
The Singapore Airlines (SIA) Group has signed an MoU to potentially source neat sustainable aviation fuel (SAF) from Aether Fuels, a climate technology firm that plans to set up SAF production plants in the US and South-east Asia.
The agreement outlines the SIA Group’s intention to procure neat SAF for five years when Aether Fuels plants begin commercial production, with an option for a five-year extension. The neat SAF will be blended with regular jet fuel before being supplied to selected airports served by Singapore Airlines and Scoot.
The Singapore Airlines Group will procure neat SAF from Aether Fuels for an initial five years, with option for extension
Aether Fuels will use waste carbon feedstock to produce the fuel through its proprietary technology that reduces plant capital cost, increases production efficiency, and achieves higher SAF yields compared to existing techniques.
Lee Wen Fen, chief sustainability officer, Singapore Airlines, said: “This partnership marks another step in the SIA Group’s journey towards our long-term decarbonisation goal of net zero carbon emissions by 2050. By collaborating with like-minded ecosystem partners such as Aether, we aim to accelerate and scale up the adoption of SAF in our flight operations, laying the groundwork for more sustainable air travel.”
Singapore Airshow 2024 was among a long list of notable leisure and business events that boosted visitor arrivals and reinforced the country’s position as an attractive destination
Singapore’s tourism sector has turned in a strong report for 2024, with both international visitor arrivals (IVA) and tourism receipts (TR) showing year-on-year increments.
TR reached S$22.4 billion (US$16.4 billion) between January and September 2024 – an increase of 10 per cent when compared to the same period in 2023. The Singapore Tourism Board (STB) expects the full-year TR to reach the upper bound of its 2024 forecast, setting a new record in tourism spend.
Tourism receipts by top spending (excluding sightseeing, entertainment & gaming) from January to September 2024
All spend categories have shown year-on-year growth, led by sightseeing, entertainment & gaming (SEG) at 25 per cent, followed by accommodation at 17 per cent. Meanwhile, F&B and shopping saw a six and five per cent increase respectively, with other categories such as airfares and business spending contributing to TR as well.
China, Indonesia, and Australia emerged as the top TR generating markets, contributing S$3.6 billion, S$2.1 billion, and S$1.4 billion respectively (excluding SEG). Notably, China and Japan showed strong year-on-year growth in TR.
IVA increased by 21 per cent over 2023 to reach 16.5 million, with China (3.1 million), Indonesia (2.5 million) and India (1.2 million) topping the source market charts. Other markets that exhibited healthy year-on-year growth included Japan, Taiwan, the UK, and the US, representing a good mix of short, mid and longhaul markets.
Singapore Airshow 2024 was among a long list of notable leisure and business events that boosted visitor arrivals and reinforced the country’s position as an attractive destination
STB attributed the strong IVA performance to several things, including the 30-day mutual visa exemption with China, Singapore’s strong growth in air connectivity, and the robust year-round calendar of lifestyle events and concerts in the city-state.
The presence of family-friendly attractions along side key leisure events helped drove economic benefits to the tourism sector and related industries.
In addition, Singapore’s hotel industry demonstrated positive growth in 2024, with ARR and RevPAR increasing year-on-year, reaching S$276 (1.4 per cent increase compared to 2023 ARR) and S$226 (three per cent increase compared to 2023 RevPAR) respectively. AOR was 81.8 per cent in 2024, a 1.3 percentage point increase compared to 80.5 per cent in 2023.
There was an addition of 1,421 new hotel keys, including notable openings such as The Standard Singapore, Into the Woods, and Mercure Icon Singapore City Centre.
Melissa Ow, chief executive, STB, said the strong performance in 2024 was “an affirmation of the industry’s efforts in refreshing our products and experiences, as well as embarking on new collaborations this past year”.
She added: “Collectively, these efforts elevated Singapore’s destination appeal and strengthened the sector’s capabilities and competitiveness.”
Looking ahead, STB expects 2025 IVA to reach between 17 to 18.5 million, bringing in approximately S$29 billion to S$30.5 billion in TR.
While acknowledging potential headwinds stemming from geopolitical tensions and macroeconomic challenges, STB remains focused on driving quality tourism growth to defend and extend Singapore’s global position into the years ahead.
Ow said: “As we look back at 2024, as well as our achievements over the last 60 years, tourism has contributed to the economy, reinforcing our international reputation, and providing more lifestyle options for visitors and residents. Together with our industry partners, STB is committed to sustain our tourism growth, by increasing Singapore’s mind share and market share, maintaining a diversified market portfolio, and strengthening destination vibrancy. Our Tourism 2040 roadmap will guide our efforts to drive the next phase of quality tourism growth for Singapore. This will ensure Singapore continues to thrive as a world-class destination that meets the needs of the evolving global traveller.”
This year, Singapore will welcome even more tourism developments, as well as leisure and business events, such as Mandai Rainforest Resort by Banyan Tree, Disney Cruise Line’s Disney Adventuremaiden sailing and year-round homeport, Anime Festival Asia 2025, World Aquatics Championships 2025, and Usana Regional Convention 2025.
Tell us about Tourism Malaysia’s 2024-2026 roadmap please. Tourism Malaysia’s 2024-2026 strategic roadmap focuses on high-impact, fast-conversion strategies to boost international arrivals. The plan identifies three core strategies to achieve this goal: creating demand, increasing traffic, and prioritising target markets.
To create demand, we implement targeted marketing campaigns, craft compelling content, and ensure high visibility through digital and traditional channels. To increase traffic, we form strategic partnerships with airlines to boost flight frequency, collaborate with travel agents and OTAs, and simplify entry procedures, like visa-free policies.
What are Tourism Malaysia’s arrival targets and the key markets for 2025? Tourism Malaysia has set a target of 31.4 million international tourist arrivals and 125.5 billion ringgit (US$28.1 billion) in revenue for 2025. To achieve this, we have prioritised key target markets, categorised into three tiers: Level 1, Level 2, Level 3, and traditional markets. Level 1 includes China, India, Indonesia, Australia, and Vietnam. Level 2 comprises the UK, South Korea, and the Gulf Cooperation Council countries. Level 3 consists of Taipei and Germany, while our traditional markets include Singapore, Thailand, and Brunei.
These markets were chosen based on their significant contribution to tourist receipts in Malaysia, strong air connectivity, positive market outlook, and encouraging future outbound trends, based on intelligence reports.
How is Tourism Malaysia working with travel trade players to support inbound tourism? We are committed to working closely with the travel industry to support its recovery from the Covid-19 pandemic. To increase international traffic, we collaborate with airlines on joint promotions, offering matching grants for international and charter flights to create new routes, thereby improving air connectivity to Malaysia.
We also implement tactical campaigns with OTAs, land transport providers, and ferry operators to offer competitive travel packages. We provide incentives through special grants for organising tourism events in Malaysia and for industry players participating in B2B and B2C events overseas.
How is Malaysia tailoring its tourism offerings to meet the evolving demands of international travellers in the post-pandemic era? To adapt to evolving travel preferences, we are embracing tourism-related technology to offer immersive experiences for tourists. We are also working with the Malaysia Digital Economic Corporation to promote digital tourism solutions from local start-ups.
In line with the National Tourism Policy, Tourism Malaysia is implementing a Smart Tourism model, using data-driven decision-making to identify new market segments and rejuvenate tourism products. This ensures that our offerings align with current trends such as experiential tourism, sustainable tourism, and bleisure.
Sustainability is increasingly being prioritised by travellers. What efforts is Tourism Malaysia making to promote ecotourism and sustainable travel practices. As a marketing agency under the Ministry of Tourism, Arts and Culture Malaysia, we support the ministry’s collaboration with the United Nations Development Programme to implement the UN International Network of Sustainable Tourism Observatories. This partnership highlights our commitment to advancing sustainable tourism in Malaysia, including developing indicators to measure sustainable tourism as part of the national tourism statistics.
Additionally, Malaysia embraces UN Tourism’s Flagship Initiatives as new opportunities for collaboration, particularly in global sustainability certification and measurement tools.
Editor’s note: The original copy had identified Manoharan Periasamy as the director of marketing and communications. We apologise for this error.
Travel Exclusive Asia (TEA), a Bangkok-based DMC which operates in Thailand, Cambodia, Laos and Vietnam, has now stretched its hands into Indonesia in partnership with Peter Nielsen and Ni Made Ayu Triska, both of whom possess over a decade of destination management experience with a base in Bali.
TEA Indonesia will serve both leisure travel and business events
Nielsen, founder and managing director of TEA Indonesia, previously owned Stjernegaard Reijser, a leading tour operator in Denmark with its own DMC in Bali that managed operations across Indonesia. The company was sold in 2018, but Nielsen remains active in the industry and works with Triska to provide DMC services in Indonesia from their office in Sanur.
In their quest of expansion, Nielsen and Triska sought a partner that would share their values and ambitions.
“We found a perfect match in TEA. After our initial meeting with André Van der Marck (founder and CEO of TEA) and Yves Van Kerrebroeck (partner and managing director TEA Indochina), we were convinced that TEA was the right partner for us, as we share a common vision for the future of DMC operations,” Nielsen told TTG Asia.
According to van der Marc, TEA enjoyed a prosperous year in 2024 and has been experiencing significant growth across both business events and leisure tourism.
“We are confident in continuing this momentum. With this new venture, TEA will strengthen its position as a trusted partner for delivering extraordinary travel experiences across South-East Asia,” said van der Marc.
Nielsen said Indonesia has “major potential, particularly with Bali as a standout destination in South-east Asia”.
“When travellers combine Bali with other Indonesian islands, they can create a holiday experience like no other. Given this potential and diversity, we believe now is the perfect time for TEA to expand into Indonesia. Our goal is to provide travellers with unforgettable experiences no matter what they are looking for,” said Nielsen.
Nielsen believes that Indonesia holds great appeal to both leisure and corporate clients.
When asked how TEA Indonesia would compete against other Indonesian DMCs, Nielson pointed to the team’s rich experience in tour operations.
“We understand the intense competition in the industry and what it takes to convince customers and close a sale. Travel agents and tour operators are not only competing with each other, but also with OTAs and booking engines where customers constantly compare prices. To stand out, we must offer something of extra value to our customers.
“We believe that competing on quality products, creativity, and innovative trip combinations is key. Our goal is to provide exceptional service standards.”
He also highlighted TEA Indonesia’s use of full-time guides, instead of freelance ones. “Our office staff also possess extensive knowledge and are trained to efficiently solve any issues that may arise. Their decision-making skills are top-notch, ensuring fast and effective solutions,” he said.
TEA Indonesia will aim for organic growth in the initial two to three years, allowing the company to focus on existing customers while delivering high quality products and services.
“We expect to increase revenue by three to four folds over the next three years. However, it is important to say that volume is not our goal. We intend to be here for many years, so we have time to develop the business, secure our processes, and maintain high standards.”
Tell us about Tourism Malaysia’s 2024-2026 roadmap please.
