Middle East markets to Asia rosy on Gulf carriers’ growing network

January 23, 2017

Travel agents specialising in the Middle Eastern markets are upbeat about business at the recent ATF 2017, all thanks to Gulf carriers’ continuous foray into Asia-Pacific.

They told TTG Asia that demand for South-east Asian packages are expected to rise this year, as more destinations in the region become easily accessible.

Ousama Al-Hosni, general manager of Kuwait-based Sham Tours & Travel, pointed to Thailand, Malaysia and Singapore as his star destinations, and added that interest in the Philippines is on the rise due to improving air connectivity.

Carriers that offer direct connectivity between Kuwait and Manila include Kuwait Airways and Cebu Pacific, with the former launched last year.
Ousama says outbound to the Philippines from Kuwait will rise further as more travellers come to know about the destination’s draws.

Manju Manchanda, director of Venture Planet in Sharjah, said her volume into Asia has “definitely grown” by at least 20 per cent over the past year as a result of new air links and availability of competitive fares.

Family groups and FIT travellers are especially fond of Asia, according to Manchanda who named Singapore and Malaysia as top favourites for their Muslim-friendly facilities.

“(Being able to) accommodate the dietary requirements of Middle Eastern travellers… is a big thing,” she said.

Manchanda intends to step up promotions of packages for Vietnam this year, leveraging Emirates’ new flights to Hanoi which commenced in August 2016.

Singapore-based Discovery Holidays, managing director, Rodney Yew, who specialises in the Middle Eastern market and whose company is auguably the city-state’s largest Iranian handler, said he draws many repeat travellers who favour Singapore’s easy access and constantly rejuvenated attractions.

According to Yew, the typical Middle Eastern traveller would pair Singapore with either Malaysia or Indonesia.

New opaque booking site wants to unlock hotel deals, revenue

By Xinyi Liang-Pholsena

January 23, 2017

Song: Staydilly to boost hotels’ occupany rates

Competition in the online booking space just got stiffer with the entry of new hotel distribution channel Staydilly, which touts to improve hotels’ RevPAR while offering travellers access to premium hotels at lower prices.

Launched in mid-October 2016, Staydilly is an opaque distribution channel that offers rooms from three- to five-star hotels at heavily discounted prices, by providing actual property photos, general location and facilities description. The hotel name, however, will only be revealed and made known to the traveller upon confirmation of booking.

CEO Song Eu Jin sees Staydilly as a channel to enhance hotels’ occupany rates and fill up rooms that would otherwise be left vacant. “We help hotels to sell a portion of their projected idle inventory and enable hoteliers to avoid price compression,” he told TTG Asia.

And by not revealing the property name until the booking is confirmed, hotels will be able to protect its branding efforts, Song remarked. Rates on Staydilly are also 30-40 per cent cheaper than the popular OTAs in the region, he added.

Song thinks what Staydilly is bringing to the table will benefit the industry as a whole, as the “mystery shopping model” offers an incremental solution to overcome the perennial RevPAR issue that’s afflicting many oversupplied cities in Asia.

“Increase in hotel rates need to come from increase in occupancy first,” he remarked, urging hoteliers to take back more control over their rates.

“Hotel rates currently work inversely to airfares, which is counter intuitive in my opinion. Shouldn’t hotels be charging top dollar (nearer the date of travel)?” he questioned.

When asked if Staydilly, as an alternative booking channel, will counter against hotels’ direct booking mission, Song stated: “We are not going after the same customers.

“Our target will be brand-agnostic customers who are less brand loyal but yet still seeking value and quality in their hotel stays,” he added. “I foresee us being a bigger challenge to last-minute booking apps instead.”

Staydilly is already “seeing good traction” with over 200 hotels signed up in Thailand, Malaysia and Indonesia. The company has just signed on its first hotel in Myanmar and is venturing into Vietnam next. Its target is to be present across all South-east Asian countries by the end of 2017.

However, Song also readily admits that cities like Singapore and Hong Kong, which have the region’s highest room rates, will pose the biggest challenge to Staydilly’s penetration in these markets.

Ex-Garuda chief, Thai Airways named in Rolls-Royce bribery case

By Mimi Hudoyo

January 23, 2017

Emirsyah Satar, former Garuda Indonesia chief, has been named a suspect in a case of bribery-for-contracts by Rolls-Royce that has indicted other airlines including Thai Airways International (THAI).

Rolls-Royce recently admitted to the UK’s Serious Fraud Office on bribery for the procurement of Rolls-Royce jet engines in several countries such as Thailand from 1991 to 2005.

Emirsyah is one party alleged to have received benefits in exchange for procuring Rolls Royce engines for the Garuda’s Boeing aircraft, and the case is being handled by the Indonesia Corruption Eradiation Commission (KPK).

Speaking to the media in Jakarta, Laode Syarif, deputy chairman of KPK, said: “(The suspect) has received from SS (another suspect) 1.3 million euros (US$1.4 million) and US$180,000 in cash and US$2 million in goods.”

Benny Butarnutar, Garuda’s vice president corporate communications, stated that KPK’s investigation was not on the national airline. “It’s about the act of an individual,” he stressed, while stating that the carrier will fully cooperate in the investigations.

He added that as a public company, Garuda has its own mechanisms in running businesses, starting from the implementation of good corporate governance to transparency in providing information.

KPK confirmed that this was a personal case and not a corporate one.

And in Thailand, some US$36 million in bribes and incentives had reportedly been paid to intermediaries, including state agents and employees of THAI, to help Rolls-Royce win lucrative engine deals.

THAI released a statement saying it has set up a special task force for investigation of past engine procurement and another for corruption prevention.

Kuoni contract manager Asia leaves and goes on his own

By Raini Hamdi

January 23, 2017

Lancaster: More room to shape own company

Kuoni UK contracts manager-Asia, Australasia, cruise, Darren Lancaster, has left the company after a decade to set up his own company, One World – Travel Sales & Marketing.

Lancaster said of his move: “I was with Kuoni for 10 years, primarily contracting Asia on behalf of Kuoni UK, but also within that three years were spent contracting additionally on behalf of the other European outbound Kuoni offices. As such, I have a wide spread of knowledge of the European market to Asia.

“Kuoni is a great company that has taught me so much, so it was a very hard decision to leave. But after 10 years there I decided that I wanted to put the knowledge that I had built up contracting Asia to wider use.

“In effect this means I no longer work to grow business to Asia for just one outbound operator, but instead I work hand in hand with many operators across the UK to support them in growing their business to Asia.”

Being on his own also means he can have control over choice of partners, working with those that appeal to the UK and European markets.

Lancaster said: “If I don’t think a partner is right for the UK and European markets, I will advise them so and not take their money. Secondly, running my own company gives me the freedom to direct the future size and shape of the company in the way I want it, at the pace I want it.”

Currently, these partners include The Diamond Cliff Resort & Spa, Phuket; The Soori Bali, The Elysian and the Bulgari Resort Bali; and Naman Retreat in Vietnam. But Lancaster is particularly keen to grow his company’s presence in Thailand, thanks to “a long history of very productive and profitable relationships between partners and UK-based representatives”.

“I also plan to expand the representation outside of the UK, to include more European source markets. This will allow me to deliver a more coordinated pan-European approach to my clients, which they have been asking for already,” he told TTG Asia.

Meanwhile, Jennie Moore has replaced Lancaster at Kuoni UK.

Vietnam gains new LCC connections to Singapore, Australia

By TTG Asia

January 23, 2017

Ho Chi Minh City

Vietnam has received two new connections from three cities, courtesy of VietJet and Jetstar.

VietJet will commence operations between Singapore and Hanoi on April 27, 2017. The daily flight will depart Singapore at 14.55 and arrive in Hanoi at 16.50. The return leg will depart Noi Bai International Airport at 10.00 and arrive at Changi Airport at 13.55. Flight time will take just under three hours.

This is VietJet’s second route connecting Vietnam and Singapore, after Ho Chi Minh City. The airline is also planning to connect Singapore with Dalat and Danang in the future.

As well, Jetstar has announced two new direct flights routes from Melbourne and Sydney to Ho Chi Minh City.

Thrice-weekly flights from Melbourne will begin on May 10, 2017 while four-times weekly flights from Sydney will commence on May 11 , 2017, subject to government and regulatory approval. Both sectors will be operated with a Boeing 787 Dreamliner.

Taking the pulse of travel

By TTG Asia

January 20, 2017

TTG Asia speaks with travel bosses in the region to get a sense of how market conditions are unfolding in 2017, and what they are doing to improve business in the year ahead

INBOUND

Dominic Ong
General manager, Star Holiday Mart, Singapore

Challenges and bright spots We foresee the slowdown in the number of Chinese tourists to impact our business. On that note, there needs to be more collaboration between the tourism board with airlines, hotels and theme parks for joint campaigns to woo them. The bright side is that new hotels coming online in 2017 will help to soften the room rates in Singapore.

Business to-do list We intend to roll out our own mobile apps this year to facilitate immediate communication with our travellers. With the app, guests will be able to retrieve their itineraries, e-tickets, maps and information ahead of their arrival in Singapore. Their pre-arrival experience will be vastly improved.

Confidence level 8 – Paige Lee Pei Qi

Vichit Prakobkosol
Owner, CCT Group, Thailand

Challenges and bright spots With the Thai government’s current quality tourism strategy, we seek to follow the policy and adjust our business in order to meet our 2017 targets. We are optimistic that China’s outbound tourism will continue to grow and believe that we still have room to grow in the mid- and high-end Chinese market coming into Thailand. If we are able to sell our luxury tour packages to just one per cent of Chinese quality tourists, I think we are successful as luxury tour prices are three to five times higher than normal packages.

Business to-do list We plan to expand into the meetings, incentives and FIT segments as the Chinese mass market is decreasing. We also see potential to grow in the medical, wellness and sport segments. We will create luxury tour programmes to attract the Chinese. Although high-end Chinese travellers like to travel to Europe, we are confident that luxury tourism products in Thailand can meet their demand if we do our promotions right.

Confidence level 8 – Chadamas Chinmaneevong

Saini Vermeulen
Executive director, Within Earth Holidays, Malaysia

Challenges and bright spots As a major B2B inbound player, a constant challenge is getting good deals from hotels to ensure the same playing field as bedbanks like GTA and Hotelbeds. Competition is intense now as more players are coming into the market with just minimal markups.

On the bright side, the weak Malaysian ringgit bodes well for the inbound sector as it makes us a competitive destination in this region. Malaysia is perceived by many as a value-for-money destination.

Business to-do list We want to diversify from our Middle East core to penetrate into the European and ASEAN markets. We also want to create connectivity with channel manager platforms to get best available rates and avoid rate parity issues. We also want more XML connectivity with wholesalers worldwide.

Confidence level 5 – S Puvaneswary

Michael Wu  

Managing director, Gray Line Tours, Hong Kong

Challenges and bright spots OTAs are our key competitors, as they become big partners of hotels with consumers going direct to them for booking. The term hotel GSA will likely disappear one day as clients bypass the middleman and drive traditional agents’ profit margins to the lowest levels.

On the brighter side, I foresee a less pricey Hong Kong, in part due to stabilising room rates that will encourage overnight stays and lower airfares arising from stiffer competition between LCCs and legacy carriers.

Business to-do list I will roll out more user-friendly features on our website, i.e. a mobile site to enhance bookings via smartphones. I will also improve tour services, offering clients more free time for sightseeing than hopping around attractions.

Confidence level 6 – Prudence Lui

Bernadette De Leon  

General manager, Amiable Intertours, Philippines

Challenges and bright spots The Department of Tourism has not laid out its marketing strategies and what it really wants to do for the Philippines, except to be busy with the Miss Universe beauty pageant that the country will host in January 2017.

The bright spots are that foreigners are now more aware of a “more peaceful” Philippines because of president Rodrigo Duterte’s strong drive to weed out crimes. The reconciliation with China also led to the lifting of its travel advisory against the Philippines.

Business to-do list To market unknown destinations – the pristine Kalanggaman Island in Leyte has strong potential. Batanes is now more affordable as Skyjet reduced its airfares from 28,000 pesos (US$565) to 17,000 pesos while accommodation including homestays have also become more competitive.

Confidence level 8 – Rosa Ocampo

Pankaj Pradhan
Managing director, Beauty of Japan

Challenges and bright spots The challenges are ensuring the availability of sufficient hotel rooms, guides and coaches, and building up the capacity of tourism staff amid the tourist influx. The appreciating yen against the dollar is another concern. I’m also apprehensive as the recent political developments in the West, and regional political disturbances, could impact the global economy and security. A natural calamity could have an immediate impact on Japan tourism too.

But there are plenty of bright spots. More visitors from traditional markets are telling friends and family members about Japan. The Japan National Tourism Association is engaging in an effective marketing campaign and local stakeholders are enthusiastic to showcase their offerings and authentic experiences to visitors.

Business to-do list I want to scale up our range of small but deluxe products across the country so we can cater to clients of all budgets. We will work closely with small- and medium-sized ryokans, hotels and family-run inns to provide an authentic experience at affordable prices. We plan to introduce unique experiences in major cities to our trade partners, and continue to work directly with local communities to promote less-visited parts of the country.

Confidence level 8 – Julian Ryall

Edwin Briels
Managing director, Khiri Travel Myanmar

Challenges and bright spots The biggest challenge for Myanmar is to convince more people to visit the country during the green season (from May to September). The tourism and hospitality sectors need to have business throughout the year to stimulate investment in further expansion that is needed for growth in the high season too.

On the bright side, Myanmar has the perfect climate for travel year-round and my favourite months are July, August and September as it’s greener, cooler and cheaper.

Business to-do list One of them is continuing to support local entrepreneurs in Myanmar, especially those in the remote areas, to become sustainable quality suppliers for our clients. We also want to develop more products in Myanmar that are different from classic temple sightseeing, i.e. nature, food, soft adventure, culture, community or a combination of all.

Besides that, Khiri Travel Myanmar wants to handle more international TV crew as it’s a niche market we are experienced in. Plus, it’s good to share the beauty of Myanmar with a worldwide TV audience.

Confidence level 9 – Xinyi Liang-Pholsena

Jo Crisp
General manager, Peak Cambodia

Challenges and bright spots Many people want to travel to Cambodia during the winter period, which coincides with Christmas, New Year, Chinese New Year and Tet. Each year, having sufficient hotel rooms, group leaders, guides and vehicles during the high season becomes a little harder.

Intrepid Travel has seen solid year-on-year growth in business since the economic downturn in 2008, so I am positive about 2017 and beyond. Cambodia is increasingly connected with the rest of the world, and better infrastructure development is making it possible to venture out in comfort to remote areas of the country.

Business to-do list In Cambodia, the guiding profession is traditionally dominated by men. It wasn’t until 2008 that we recruited our first female group leader. From a crew of 60 in those early days, we have maintained a core of approximately 10 females. I think we can do better. In 2017, we will concentrate on recruiting and retaining more female talent.

Confidence level 10 – Marissa Carruthers

Tran Gia Bach
Regional general manager, Buffalo Tours Vietnam

Challenges and bright spots Our main challenges are the stalling of the ratification of the Trans-Pacific Partnership (TPP), which will help to promote tourism and business from TPP members, and monitoring the impact of Brexit on outbound tourists to our region. We are optimistic about the stable political regime, more investment in infrastructure and hotels, and the launch of the e-visa service in Vietnam.

Business to-do list Growth in luxury travel is outpacing the rest of the market and that trend is expected to continue over the next few years. We will develop unique luxury product ranges featuring behind-the-scenes access, exclusive encounters and culinary highlights and set up a dedicated luxury team to create new positioning across all touch points.

Confidence level 8 – Michael Tatarski

Sarah Keenlyside
Founder and CEO, The Bespoke Travel Company, China

Challenges and bright spots The continual reports on China’s air pollution is damaging its reputation. Most visitors come for a cultural experience, not a beach holiday, so it’s not an issue unless the traveller has a respiratory problem. The instability – caused by terror attacks, Brexit, the US election, etc – is the worst I have seen and going into 2017, there is more nervousness over travel plans.

As for bright spots, I think people will need to travel more than ever before for business and holidays. I hope the 2022 Winter Olympic Games and the opening of more resorts will create some buzz.

Business to-do list We have to be creative to inspire travellers to visit China because it is a fascinating place. We are also revamping our website to showcase our signature tours and experiences, and to engage more with corporate clients.

Confidence level 7 – Caroline Boey

Subhash Goyal
Chairman, STIC Travel Group, India

Challenges and bright spots The greatest challenge is overcoming the negative publicity of India, which often impacts leisure travel demand. Terrorism in another major challenge; even though India is a peaceful country, terrorists can strike anywhere.

This year will be good for tourism with prime minister Narendra Modi’s demonetisation move to counter black money. Many Indians, instead of hoarding money, will be inclined to spend on travel. I expect inbound tourism will grow as the government is looking to expand the e-visa facility to medical tourism and MICE sectors.

Business to-do list We will continue to promote India to our overseas partners. A large country like India has many diverse tourism products and guests should explore destinations beyond the Golden Triangle and Kerala to lesser-known states like Madhya Pradesh and Gujarat.

Confidence level 8 – Rohit Kaul

Krishan Balendra  

President leisure sector, John Keells Holdings, Sri Lanka

Challenges and bright spots The biggest challenge is attracting a mix of mid- and high-end markets from China and Europe. We have relied on old-fashioned, over-the-counter-business through partners and agents, but this should change to grow business through digital platforms

Rising tourism arrivals in 2017 will be a bright spot. With 1.7 million arrivals in 2016, Sri Lanka can do much better to draw high-end travellers with the entry of more global hotel brands.

Business to-do list We will develop our digital platform to cater to customers booking online. To better engage tour operators in China and Europe, we are planning online platforms for these markets.

Confidence level 7.5 – Feizal Samath

William Lu
General manager, Best Travel, Taiwan

Challenges and bright spots The shaky Taiwan-China relations as well as the policy of mainland Chinese tours are challenges, but I understand the tourism bureau is trying to address the situation.

The bright side? Universiade Taipei 2017 in August will bring in visitors and offer business opportunities for agents.

Business to-do list It’s to strengthen our overseas promotion beyond Singapore, Malaysia and China to South Korea and Japan, and if possible, India too. I’ll also create more diverse products for domestic travellers to compensate for the loss of business from mainland Chinese groups.

Confidence level 8 – Prudence Lui

OUTBOUND

Anthony Chan
Group managing director, Chan Brothers Travel, Singapore

Challenges and bright spots The travel industry is constantly at the mercy of health epidemics, natural calamities and political unrest, among a whole host of possible travel disruptions that can wipe out months of sales collection. This is further compounded by the uncertain economic outlook. Economic challenges, however, also present opportunities to review certain aspects of the business, rework product mix and pricing to cater and adapt to trends.

Business to-do list For a mature travel market like Singapore, a constant challenge is keeping in pace with the dynamism of the industry, from rapidly changing customer needs through continual product innovation and service differentiation to challenging business environments yet managing the bottom-line of all businesses – sustainability and profitability. We are thus implementing strategies to leverage technology to improve service, increase efficiency, broaden market reach and change our business model.

Confidence level 6.5 – Paige Lee Pei Qi

Jason Wong

General manager, Hong Thai Travel Service, Hong Kong

Challenges and bright spots The challenging global economy, the exchange rate of Hong Kong vs the US dollar in the wake of the US presidential election, plus higher interest rates as that would affect consumers’ travel desire and spending.

The cruise market is a bright spot, as more vessels are homeporting or deploying ships to Hong Kong, translating into more choices for outbound travel.

Business to-do list We’ll continue to create new products and itineraries. As a 50-year-old traditional travel agency, more resources will be channelled to our online business platform in view of the changing buying and travel patterns of our clients.

Confidence level 7 – Prudence Lui

Katsumi Sakurai
President, Rikisha DMC Japan

Challenges and bright spots Japanese travellers are very sensitive to the possibility of terrorism and that is going to put a lot of people off going to areas where they fear something might happen. In Europe, the situation is perhaps made even harder by the high unit price of trips, which have reduced sales. This is something that we must work hard to change this year. On the other hand, the strong yen is very positive for Japanese outbound travellers.

Business to-do list Business travel is performing particularly well for us at the moment, so I would like to build on that sector. Our inbound business for 2017 is already at 150 per cent of 2016 levels  and we would like to see a similar performance for outbound operations.

Confidence level 7.5 – Julian Ryall

Chotechuang Soorangura  

Associate managing director, NS Travel & Tours, Thailand

Challenges and bright spots The tourism direction of the government will be a key challenge of our business in 2017. Some policies such as the zero-dollar  tour crackdown disrupt tourism, and and the purchasing power of locals will  not recover this year. Above all, competition in outbound tourism remains high, so I have not seen any positive point in 2017.

Business to-do list To deal with the negative factors, we will select tour packages from travel wholesalers instead of creating own tour programmes to reduce risks from price wars. The economic downtrend causes many companies to reward effective dealers with overseas trips, so we will seriously focus on the incentive market because we have seen good traction in this segment.

Confidence level 8 – Chadamas Chinmaneevong

Abdul Rahman Mohamed

 General manager, Mayflower Holidays, Malaysia

Challenges and bright spots The weak Malaysian currency will affect travel to medium and longhaul destinations as it makes the cost of travel more expensive. Regional tourism will benefit as more travellers opt for holidays within South-east Asia. However, if the ringgit and Malaysian economy improve in 2017, we foresee travel demand will also improve.

Business to-do list We will draw up an effective budget that fits the business environment for 2017, review our current line of business – which will likely lead to consolidation of manpower to optimise operating costs – and look for something new related to tourism that we can venture into.

Confidence level 6 – S Puvaneswary

Starry Wong
Deputy general manager, outbound, Century Holiday International Travel Group, China

Challenges and bright spots Chinese travellers, in particular the new generation, are more demanding and our challenge is to tailor-make programmes even for tour series packages. The market demand is there, but visa requirements for Chinese travellers mean they have to plan ahead even to popular shorthaul destinations like Japan and Singapore.

The China outbound market is steady and diversified and that to me is an inspiring bright spot. I’m cautiously optimistic because the global economic outlook in the coming months is not as stable as it was a year ago.

Business to-do list It is to speed up the outbound tour products transition, increase resources to develop new offerings with local partners in different destinations in Asia – e.g. taking young couples to Sabah to hold a traditional Malaysian-style wedding – and to identify relevant promotional marketing channels to target Chinese travellers.

Confidence level 6 – Caroline Boey

Seang Volak
Owner, Palm Tours, Cambodia

Challenges and bright spots An oversupply of tour operators offering low prices will be our biggest challenge. There are commune elections in June so we don’t know what effect this may have.

In 2016, a record number of Cambodians travelled abroad and this is expected to continue this year as the economy grows, so that is a positive thing for us. More direct flights connecting Cambodia with the region and the world are expected to start next year so that is good too.

Business to-do list As Cambodia’s economy as well as the middle class grow, we will look at developing more higher-end packages. There are more flights connecting to Chinese destinations, and relationships are strong between the two countries, so we will look at these markets too.

Confidence level 8 – Marissa Carruthers

Nguyen Huu Tuan
Sales & operations manager, In Out Tour Travel, Vietnam

Challenges and bright spots More travel agencies in the market have created stiffer competition, especially in terms of service prices. For example, a tour to Europe now costs only about VND45 million (US$2,000). As a result, travel agents must do more marketing and PR than was necessary a few years ago. Customers will benefit from having more options and lower prices.

Business to-do list I hope to launch new interesting itineraries that follow my policy of providing good service at a low price. This is the best way to compete with the big tour companies.

Confidence level 8 – Michael Tatarski
Karan Anand
Head, relationships, Cox & Kings, India

Challenges and bright spots India’s outbound tourism continues to face challenges due to capacity constraints in the aviation sector. We believe that the present capacity cannot cope with the surge in demand, especially during the peak summer season. Indian airports need to be upgraded quickly as there is a surge of Indians travelling overseas. Existing destinations are reinventing their offerings and new destinations are entering the Indian market to grab a share of the fast-growing outbound pie.

Business to-do list First, expand our product portfolio to meet the evolving needs of a new class of travellers. Second, enter into areas where we will have a first-mover advantage and fill the gaps in certain niche areas.

Confidence level 8 – Rohit Kaul

Simon Ang
Managing director-operations, Celebrate Life TLC, Philippines

Challenges and bright spots To get outbound tourists out of their comfort zone to explore new destinations and try experiential tourism. I believe outbound tourism will improve slightly but not much. This has to do with everyone testing the waters of how the new Philippine president will govern.

Business to-do list To explore Scandinavia as the next destination for outbound tourists from the Philippines. I will attend the Matka Nordic Travel Fair in Helsinki.

Confidence level 7 – Rosa Ocampo

Frank Yeh
General manager, My Tour Travel Services, Taiwan

Challenges and bright spots The key challenge is the sluggish global economy, which negatively impacts people’s travel mood and spending. I can’t think of any bright spots, and even new destinations for airlines are likely to benefit business travellers more than leisure tourists.

Business to-do list I will take the initiatives to develop more special outbound itineraries as well as high-end products  for various destinations to wow clients, and upgrade our service level.

Confidence level 5 – Prudence Lui

Sasi Ganeshan
CEO, VMS Travels, Sri Lanka

Challenges and bright spots Our biggest challenge is getting visas for clients.  Countries popular with Sri Lankan travellers like Malaysia and Thailand require more documents for visa approval. These countries are promoting in Sri Lanka extensively but their embassies want bank statements, birth certificates and  identity cards, etc – a very cumbersome process.

The bright spot is that there is overcapacity in seats to Asia and the Middle East as the Gulf carriers have increased flights and SriLankan Airlines is concentrating more on these sectors than Europe. Airfares will become more competitive.

Business to-do list I will continue to improve visa and other related services to clients, which is the edge traditional agents have over OTAs. This kind of service is unmatched by OTAs.

Confidence level 6 – Feizal Samath

This article was first published in TTG Asia January 2017 issue. To read more, please view our digital edition or click here to subscribe.

New hotel openings: January 16-20, 2017

By TTG Asia

January 20, 2017

The latest hotel openings and announcements made this week

Mövenpick Hotel Colombo
The city’s first international Mövenpick property will feature 219 rooms and suites, all of which boast floor-to-ceiling windows. Facilities include a rooftop bar, gym, spa, infinity pool and Jacuzzi, a boardroom, and five meeting rooms. There are seven F&B options, ranging from classic French restaurant Brasserie to the Robata Grill & Lounge, which serves Japanese cuisine.

The Ritz-Carlton, Haikou
The international brand has opened a 175-room, 16-suite resort in Mission Hills Haikou, a golf complex in Hainan. On-site amenities include the rooftop Flair Bar, Cantonese restaurant Tin Lung Heen, fitness centre, steam room, swimming pool and spa. For younger guests, there is a kids’ club, an outdoor playground, a dedicated swimming pool, bicycle rental and a kids golf putting area. Meeting facilities span 3,500m², including a 1,350m² Grand Ballroom, two junior ballrooms, seven meeting rooms and one boardroom.

Alila Fort Bishangarh
Created above and outside a 230-year-old defensive fortress in Rajasthan is the 59-suite Alila Fort Bishangarh. Opening in 1Q2017, the property – located a three-hour drive away from New Delhi – offers four categories of suites, each featuring large windows, regular mod cons, footed bathtubs and day beds. Facilities include four F&B options, a library, spa, pool, bar and fitness centre. Rates start from US$400 per room per night, based on a twin-share basis.

Kandima Maldives
Opening February 10, 2017 in the Dhaalu Atoll, the resort offers 274 studios and villas across 11 different categories, all of which come with a private terrace. The property offers eight F&B options, and facilities include a kids’ club, diving school library, spa and yoga studio. Prices start from US$320 per person per night, based on two adults sharing a Sky Studio on Half Board basis during the high season.

Skye Hotel Suites
The Crown Group has debuted its new hotel brand, Skye Hotel Suites, in Parramatta, Sydney. The property will offer 72 luxury suites overlooking Sydney within the new V by Crown Group, a 28-storey residential and commercial development. Amenities on-site include a bar on level 26, fitness centre, pool, sauna, business centre and conference room facilities, along with alfresco dining and retail piazza.

Brunei unveils next moves on tourism chessboard

By Rachel AJ Lee

January 20, 2017

With oil prices on a decline, the oil-rich country of Brunei is tackling tourism business with renewed fervour to support its GDP.

Salinah Salleh, head of marketing and promotion with Brunei’s Ministry of Primary Resources and Tourism, shared that efforts are being made since 2016 to improve the destination’s product offerings.

salena_salleh — Salinah: Plans being rolled out to boost Brunei’s tourism

As part of Brunei’s Tourism Strategic Plan from 2016-2020, more chartered flights are being operated to the destination. A weekly service from Zhengzhou, China commenced in July 2016, a twice-weekly flight from Seoul was put in place in December and a weekly service from Xi’an, China was just launched this week.

Salinah said: “Chartered flights are a way to test the market. If demand grows, Royal Brunei Airlines will put in bigger planes. After that, we could get Korean Air to come in. It depends on the volume and how the market performs.”

However, scheduled direct flights by foreign carriers to the country are few and far between. What Brunei has is Royal Brunei Airlines codesharing on flights with Turkish Airlines, China Eastern Airlines and Hong Kong Airlines. When asked about this, Salinah denies any protectionism of the country’s air space.

“We have pushed for open skies (but) the Ministry of Communications that has to make that call,” she explained, adding that the “ministry has its own limitations, policies and directives as to how they want to welcome (other) airlines”.

Salinah, however, pointed out that the Ministry of Communications is collaborating with the NTO to help the country meet its arrival target of 451,000 by 2020.

As for tourism products, packages for Tutong and Belait will be launched in March and June/July, respectively. Temburong’s attractions will be expanded to include homestays, local experiences and fishing come September. Salinah also hopes for more cruise ships to call on Brunei.

Indonesia all out to woo Xinjiang’s Muslims

By Paige Lee Pei Qi

January 20, 2017

Handayani: More room to grow in China

Eager to court the Muslim segment from the burgeoning Chinese outbound market, Indonesia is stepping up its promotion as a halal destination to China’s Xinjiang, which is home to the Muslim Uigher minority.

Speaking to TTG Show Daily, Rizki Handayani, director of promotion for South-east Asia at the Indonesia Ministry of Tourism, said: “Halal food is very important to the Muslim travellers. We have the advantage of having well-equipped facilities and people to manage this expectation.”

For Xinjiang’s large Muslim Uighur population, the “recommended halal destinations” for them in Indonesia will be Lombok, West Sumatra and Aceh, Rizki pointed out.

As part of the NTO’s promotion efforts, Rizki shared that there will be an upcoming familiarisation trip for Xinjiang-based travel agents to these three provinces to educate them about the halal products in these destinations.

Said Rizki: “We want to show that apart from Bali, there are good offerings for (Muslim travellers) in our other destinations as well.”

The Chinese market accounted for the most foreign tourists arrivals in Indonesia between January and November last year, with 1.3 million Chinese tourists, up from 1.1 million over the same period in the previous year.

“There is still a lot of room for us to grow (in China),” she said, adding that most of the NTO’s marketing budget in the new financial year will be going towards the Chinese market.

Rizki added that Indonesia received 10.4 million visitors from January to November 2016, and is now setting an even higher arrival target of 15 million in 2017. Apart from China, the other top source markets are Singapore, Australia, Malaysia and Japan.

Trade unfazed by Tourism Malaysia’s shrinking presence in longhaul markets

By S Puvaneswary

January 20, 2017

Skyline of Kuala Lumpur, Malaysia

Tourism Malaysia is in the midst of closing its offices in Los Angeles, New York, Stockholm and Johannesburg to consolidate its marketing activities into more effective markets where there are direct flights.

Minister of Tourism and Culture Malaysia, Mohamed Nazri Abdul Aziz said that it was difficult to promote Malaysia in these markets as there are no longer any direct flights. Due to losses, the flag carrier suspended services to Stockholm and New York in 2009, Johannesburg in 2012, and Los Angeles in 2014.

Emphasising that longhaul markets continue to be important because they contribute to the length of stay, Abdul Khani Daud, deputy director-general advertising and digital, Tourism Malaysia, said: “The travel trade in the affected markets will be supported by other overseas offices. Tourism Malaysia will also leverage on digital marketing and be present in key travel tradeshows such as ITB Berlin and Matka Nordic Travel Fair.”

According to Mohamed Nazri, the savings of approximately RM4.5 million (US$1 million) in operational costs from the office closures will be used to open more offices in China and India. Both these markets produced some 2.3 million tourists to Malaysia in the first 10 months of 2016.

Hamzah Rahmat, president of the Malaysian Association of Tour And Travel Agents, said “the government has made the right move by putting its money where the return is good. China and India are two huge markets for Malaysia and there are a lot of direct flights”.

Shirish N Trivedi, president at Travel Leaders Baltimore, US, said he was not alarmed by the closure as he is supported by his partners in Malaysia and does not depend on Tourism Malaysia’s offices in the US.

Anne Neoh, director of sales, The Royale Bintang Penang, said the hotel’s US market share is growing annually. Tourism Malaysia’s restructuring overseas was not a concern for her as sales came mainly from OTAs.