Bolstered by the strong double-digit growth in arrivals from Hong Kong (35 per cent), Singapore (33 per cent) and Malaysia (65 per cent) in the year ending September 2016, Tourism Tasmania will keep its marketing priority on these key markets as well as China’s top-tier cities.

During the sales mission to Hong Kong last week, Tourism Tasmania’s CEO John Fitzgerald, told TTG Asia: “This year, we will not have extra marketing dollars for new markets and (instead) maintain our focus on existing ones. There is a growing awareness (of Tasmania) in some Asian destinations such as Indonesia, but we are not planning to create offices in those places.”

Tourism Tasmania’s CEO John Fitzgerald speaking at the sales mission in Hong Kong

Although China fell from top to second spot after registering a 15 per cent drop in arrivals, Fitzgerald sees that as a natural slowdown after the spike in 2015 following president Xi Jingping’s visit to the state in 2014. He is confident that Chinese arrivals will “bounce back”.

But while the lack of direct international access has been a stumbling block in marketing the state, Fitzgerald expects an improvement when Hobart Airport’s runway extensions are completed in mid-2018 to enable the landing of widebody aircraft.

He added: “Hobart will also welcome 1,200 new hotel rooms in 2018/2019, an increase of 30-40 per cent in capacity. Apart from homegrown brands like the 114-room MACq 01 (opening mid 2017), there will be international brands like the 221-room Hyatt Centric (2019) and 187-room Crown Plaza (opening 2017).”

As well, Kai Yang, director of Tassie HD Holiday, among the 13 operators participating in the sales mission, hopes to drum up awareness for the company’s two new properties – Macquarie Hotel and Elizabeth Hotel – set to open in December 2017 and June 2018 respectively.

Meanwhile, Elanor Investor Group, which owns Peppers Cradle Mountain Lodge in Tasmania, has recently appointed a salesperson for Asia in Sydney to step up its marketing efforts in the region.

Said its marketing manager for hotels, tourism and leisure, Philip Haine: “Our top markets are Singapore and Hong Kong while Malaysia is small but growing. I want to (promote) that the hotel offers more than luxury rooms but versatile experiences too like wine tasting to touring.”

Tourism Tasmania’s 2017 Asia Mission took place in Kuala Lumpur, Singapore, Hong Kong, Shanghai and Chengdu from February 20-27.

Despite recent safety issues surrounding Europe, the continent remain the best-selling destination for agents participating in Travel Revolution 2017, which was held at the Marina Bay Sands over the weekend.

Organised by the Singapore Outbound Travel Agents Association (SOTAA), the three-day travel fair saw a strong turnout despite fewer travel agents this year, said Kay Swee Pin, president of SOTAA.

Travel Revolution 2017. Photo courtesy: Chan Brothers Travel

Kay, who is also SA Tours’ managing director, told TTG Asia that the agency outperformed last year’s sales for Europe, a crowd favourite, with Spain, Portugal and the Balkans topping the list.

“It is quite surprising, because it’s only February and (consumers) are already booking for December. In 2016, we had record numbers going to Finland and Norway, so maybe those who have gone have come back and spread the word. We are very optimistic and have pre-booked hundreds of igloos to make sure we cater to the demand,” she said.

Kay added that many are repeat travellers venturing out of Central Europe, with the Balkans especially popular at the fair.

Meanwhile, Chan Brothers Travel expects to achieve its sales target of S$20 million (US$14 million), double that of last year’s edition, based on its performance in the first two days, said its head of marketing communications, Jane Chang.

Chan Brothers Travel saw a surge in demand for Central Europe unlike the previous year where demand leant towards destinations outside of Central Europe.

The tour operator also saw good uptake in new tours introduced this year such as the Southern Lights tours in New Zealand, as well as self-drive campervan convoy tours in Western Australia.

With the spike in sales, Chang commented that infusing creative ideas in mass travel fairs like Travel Revolution 2017 have helped change Singaporeans’ perspective on travels and exposed them to different experiences.

Following the assassination of Kim Jong-nam at klia2 airport last week, Malaysians have been advised not to visit North Korea over security reasons.

North Korea has demanded for the return of Kim’s body and has blamed Malaysia for his death. In response, Malaysian tourism and culture minister Mohamed Nazri Abdul Aziz has dubbed North Korea “a rouge state”, according to a report by The Star.

An outbound agent, who requested anonymity, do not see any fallout arising from the tourism minister’s declaration as demand for North Korea has always been slow. He said: “It is a remote country and there is not much information on the place. But we will stop selling since Mohamed Nazri has made this statement.”

Currently, Malaysian passport holders do not need a visa to visit North Korea. Instead, they only need an entry permit, which can be obtained after purchasing a full package tour that includes hotel accommodation, transfers and meals through an accredited travel agency.

According to the North Korea Tourism website, the accredited agency will submit the entry permit application to Kuala Lumpur-based DPR Korea Tourism office for processing, which will take two weeks.

And despite calls from Malaysian parliamentarians to review the country’s visa-free policy for North Koreans, Mohamed Nazri did not deem it a necessary move as the initiative only benefitted North Korean officials; ordinary citizens are forbidden to travel out of their country in the first place.

(From left) Schaetz, Marco Polo Ortiga’s Frank Reichenbach, Cronin, Marco Polo’s Caretti 

Eschewing the consolidation tide currently surging through the global hospitality sector, Marco Polo Hotels has opted to adopt a lean and nimble strategy with expansion limited to Asia and just its existing brands.

President Jennifer Cronin foresees no more than 15 hotels to be added to its stable of 12 Marco Polo and Niccolo hotels in Hong Kong, China and the Philippines in the next five years.

The company does not see the need to expand beyond these two upmarket brands, said Cronin in Manila Wednesday during the introduction of Niccolo Hotels and its flagship property, The Murray, a Niccolo Hotel, Hong Kong, which will open in October. The first Niccolo hotel debuted in Chengdu in 2015, while upcoming Niccolo hotels will open in Chongqing this August, Changsha in 2018 and Suzhou in 2019.

“We punch above our weight. We’re small but the brand is well-known,” she said. “We make sure we give good returns and (the properties we manage) become iconic hotels.

“When a company gets big, you get lost. The small operating groups are going to be more attractive to owners who want the personal touch, and we want to grow the business together with strong partners,” Cronin added.

Marco Polo’s lean and mean strategy is working, emphasised Philip Schaetz, vice president for sales and marketing, as its hotel performance in January was better than 2016.

Schaetz said the first three quarters of 2016 were “very tough” due to the less-than-favourable international business climate but the company’s performance started improving in 4Q2016 and is projected to continue this year.

Cronin said Marco Polo Ortigas in the Philippines will be “the benchmark” for Marco Polo Hotels as the company undergoes a restructuring that includes a widening its global sales network and the appointment of key executives in HR and purchasing roles for the group.

Apart from adding three hotels in the Philippines, the company also has its expansion sights on South Korea and Vietnam, she told TTG Asia.

North American carriers are enjoying a golden age right now but the future will be in Asia-Pacific, according to IATA regional vice president Asia-Pacific, Conrad Clifford.

Clifford described the present times as the second golden age (after the PanAm era in the 1960s) led by North America where prices are at their lowest; efficiency is better than ever; airlines are re-fleeted, re-consolidated and re-structured; and there is convergence with the emergence of new airline models incorporating the strengths and removing the weaknesses of both the full-service carriers (FSCs) and LCCs.

But he expects a third golden age of aviation where Asia-Pacific carriers will lead the world.

“The market has recognised the turnaround and North American airlines are becoming investment-grade vehicles: this is unprecedented and that’s why I am calling it the second golden age,” said Clifford in his opening remarks on the second day of Aviation Festival Asia in Singapore on Wednesday.

“The top four net profits in 2015 were all North American (airlines): American Airlines made a net profit of US$6 billion in 2015, United Airlines US$4 billion, Delta Air Lines US$4 billion and Southwest Airlines US$2 billion. These four North American carriers accounted for 45 per cent of the total global industry profit for 2015 (US$35.3 billion). And 2016 was estimated to be an even better year than 2015. And 2017 will still be good and deliver real returns to shareholders.

“Of course we may be cynical and say that it’s only due to the low fuel prices…but I would like to say this is not just about the fuel price.”

He said it is about the magic three C’s: capacity discipline, consolidation and charging for everything.

In 15 years’ time, all the world’s most profitable airlines – FSCs, LCCs and hybrids – will all be based in the Asia-Pacific region, with growth fuelled by the region’s demographics, Clifford projected.

“North America may be the largest aviation market in the world today but more than half of mankind is within a 5.5-hour flight time – that’s the profitable payload range on the latest Boeing’s and Airbus’ narrowbody 737 max, A321neo – from us all sitting in this room in Singapore.

“China will be the largest market in the world in less than 20 years, India will be number three, Indonesia number five and Japan number seven. And right now India has the fastest growing domestic market on the planet,” said Clifford.

Presently, the future looks likely to be dominated by LCCs in this part of the world, he said, pointing out that the region with the biggest LCC penetration in the world is South-east Asia, while China is growing fast since last year.

But Clifford believed the future is going to be those airlines “that capture the best of FSCs and LCCs, eliminate the parts of those models that don’t suit our Asia-Pacific markets, and keep on changing and growing”.