TTG Asia
Asia/Singapore Friday, 10th April 2026
Page 1715

Shaken but not broken

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The recent string of natural disasters has only strengthened the resolve of Kyushu’s tourism stakeholders to welcome tourists back to the destination by rebuilding its infrastructure and offering attractive promotions. Julian Ryall reports.

20JAN-japanTwenty-sixteen was a year of upheaval for the travel trade in Kyushu, as Japan’s southernmost island suffered a series of powerful earthquakes and aftershocks in April – which caused 50 deaths and wrecked havoc on landmarks such as Kumamoto Castle. Barely six months later, Kyushu was dealt another blow in early October when Mount Aso – one of the region’s most popular attractions – erupted for the first time in nearly two decades.

Despite the double blows from these disasters, the Kyushu Tourism Promotion Organization (KTPO) accepts that the local travel sector needs to work hard to rebuild its reputation, but remains confident that can be achieved.

Sharing the immediate fallouts on the local trade, Hisatoshi Sakamoto, director of KTPO’s overseas division, said: “As of April 23, 96 different tourism-related facilities were closed – 60 in Kumamoto Prefecture and another 35 in Oita. As of May 8, there were 700,000 cancellations to destinations in Kyushu.”

To enable visitors to better understand the ground situation, KTPO set up an earthquake information portal in five different languages including English, and provided updates on transportation and road conditions in the affected regions, Sakamoto told TTG Asia.

The Japanese government was also swift to lend a helping hand to the local tourism industry, announcing an 18 billion yen (US$156.2 million) emergency budget on May 11 to be shared among Kyushu’s seven prefectural tourism organisations.

“Using this budget, the Visit Kyushu Special Campaign was introduced over the summer, providing discounts of up to 70 per cent on lodgings in Kumamoto and Oita and 50 per cent everywhere else in Kyushu,” said Sakamoto.

In tandem with the campaign, the Ministry of Economy, Trade and Industry launched a scheme to leverage foreign media and bloggers to promote Kyushu as a holiday destination.

In addition, Shinya Katanozaka, president of All Nippon Airways Holdings, in July slashed the cost of a one-way flight from Tokyo to Kyushu throughout September to 9,700 yen, down from an average of 12,000 yen.

Similarly, both Kinki Nippon Tourist Co and Nippon Travel Agency have been providing discounted accommodation packages to the region since last summer, which have received strong interest at least among domestic travellers. As well, Kyushu Railway Co introduced a special one-day discount pass in June and July that could be used on the company’s local and bullet train lines.

Regardless, early indications are showing positive impacts from the combined programmes.

In the first six months of 2016, total arrivals were up 40 per cent compared with the same period in 2015. Of that total, 767,000 arrived aboard cruise ships, a sector that saw no cancellations in the wake of the disasters that struck the region.

The KTPO estimated that total arrivals in 2016 to reach 3.6 million, which would represent a remarkable increase of 30 per from the record 2.8 million foreign tourist arrivals in 2015.

“We are currently promoting Kyushu as a wonderful tourist destination with natural beauty and building a brand image for Kyushu. In the minds of many foreign visitors to Japan, Kyushu is not perceived as a holiday destination, something that we are trying hard to change,” said Sakamoto.

 

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

HRS welcomes new APAC management team in Singapore

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HRS is expanding its reach globally with a new management team for Asia-Pacific, based in its regional headquarters in Singapore.

Emmanuel Ebray has been named managing director in charge of South-east Asia, India and South Korea, having been with the company as managing director in France since 2011.

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Emmanuel Ebray

Joining him is Carol Chia as head of corporate solutions, holding an extensive track record in regional sales and business development in the US and Asia-Pacific.

HRS has also added two management positions to the team with the role of director of global partnerships APAC, helmed by Roelant Horree, and head of sourcing APAC, filled by Markus Flamman.

The new management team joins Alex Tan, head of hotel solutions, and Santosh Kumar, head of corporate solutions India, in leading the HRS group to better service and cater to the needs of its corporate clients in the region.

Airbnb’s not hitting hotel ADR, occupancy: STR

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Hotels are outperforming Airbnb in terms of occupancy and have seen an increase in ADR, according to a recent analysis by STR.

STR compared hotel performance data from its global database with Airbnb-sourced data in 13 markets from December 1, 2013 through July 31, 2016, and excluded Airbnb data for units deemed incomparable to hotels (such as shared accommodations).

Seven of the 13 markets STR looked at are US cities: Boston, Los Angeles, Miami, New Orleans, San Francisco, Seattle and Washington DC. The remaining six are Barcelona, Sydney, London, Paris, Tokyo and Mexico City.

According to the report, Airbnb occupancy was the highest in markets where hotels had high occupancy. For example, during the 12 months ending July 2016, Tokyo reported the highest Airbnb occupancy level (61.5 per cent) among the 13 markets and ranked second with an 84.8 per cent hotel occupancy level.

In the 12 months ending July 2016, hotel occupancy was highest in Sydney (85.4 per cent) and lowest in Mexico City (68.7 per cent); while Airbnb occupancy was highest in Tokyo (61.5 per cent) and lowest in Mexico City (18.4 per cent).

With the exception of Paris, the study found that hotel ADR increased in 12 of the 13 markets surveyed.

In comparison, Airbnb rates decreased in eight markets and increased in five, with STR suggesting that supply growth could be a contributing factor. A majority of the markets analysed saw at least 40 per cent increase in Airbnb inventory.

In general, Airbnb’s share of business travel (an estimated 10 per cent) was substantially smaller than its share of leisure travel.

The full report can be viewed here.

Swissôtel Beijing welcomes new GM

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Swissôtel Hotels and Resorts has appointed Thomas Reupke as general manager of Swissôtel Beijing Hong Kong Macau Center.

In his new role, Reupke will be responsible for overseeing the smooth and efficient operations of the property, planning and direction of the hotel.

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Prior to joining Swissôtel Hotels and Resorts, Reupke was general manager for Centara Grand Beach Resort and Villas in Krabi, Thailand. He first joined Swissôtel Hotels and Resorts in 2014 as general manager of Swissôtel Le Concorde Bangkok.

Reupke has 25 years of hospitality experience internationally, beginning his career in Germany with Sheraton and Intercontinental Hotel and Resorts, and has since worked with Kempinski Grand Hotel in Heilgendamm and The Empire Hotel and Country Club in Brunei.

Etihad’s CEO James Hogan will step down this year

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James Hogan

The Etihad Aviation Group Board of Directors have announced that James Hogan will step down as president and CEO in 2H2017 after a decade-long service.

The board and Hogan first initiated the transition process last year with the formation in May of the Etihad Aviation Group, a diversified global aviation and travel organisation.

Mohamed Mubarak Fadhel Al Mazrouei, chairman of the board of the Etihad Aviation Group said: “We are very grateful to James. In just 10 years, he has overseen the growth of the company from a 22-plane regional carrier into a 120-aircraft global airline and aviation group, with seven airline equity partnerships which together serve more than 120 million guests every year.

“Under his leadership, the company has provided new opportunities for thousands of Emiratis and has been a critical element in the remarkable progress of Abu Dhabi and the UAE. We look forward to James’ continued association with Abu Dhabi in new ways,” he added.

Hogan will join an investment company along with Etihad Aviation Group CFO James Rigney, who will also leave the company later this year. A global search for a new Group CEO and a new Group CFO is already underway.

Last month, Etihad Airways unveiled plans to create a new European leisure airline group in a joint venture with TUI AG. A new codeshare agreement with Lufthansa and an aircraft leasing agreement between airberlin and Lufthansa were also announced. As a minority shareholder, Etihad is actively participating in the next phase of Alitalia’s restructuring plan.

Book on early days of Thailand tourism

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Dusit International’s Chanin Donavanik

Dusit International, in partnership with Thai companies such as Bangkok Bank, Boon Rawd Brewery, Central Group, Chiva-Som International Health Resort, Jim Thompson, Siam Piwat, Thai Airways and the Tourism Authority of Thailand, have come together to publish a tourism book.

Titled Thailand Tourism: The Early Days, the book details the history of the tourism industry in Thailand and the pioneers behind its early development, including icons such as Kusa Panyarachun, founder of Thailand’s first travel agency; Prasert Prasarttong-Osoth, founder of Bangkok Airways; and Chanut Piyaoui, founder of Dusit International.

Priced at 1,500 baht (US$42.50), the book will be available at Asia Books and all Dusit hotels in Thailand from February onwards.

All proceeds from the book sales will be donated to the Royal Project Foundation, which helps to improve the living conditions of Thailand’s rural communities.

For more information visit www.thailandtourismtheearlydaysbook.com.

David Cameron to address WTTC Global Summit in Bangkok

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David Cameron

Former UK prime minister David Cameron will address the World Travel & Tourism Council (WTTC) Global Summit this year, which is taking place in Bangkok from April 26-27, 2017.

At the summit themed Transforming Our World, Cameron will be discussing some of the key geopolitical issues currently facing the world in which the sector operates.

The event will see leaders in their fields addressing a range of issues, including the future of travel and tourism in a globalisation age, the impact of security threats and climate change on the rights and ability of people to travel, the constraints to increased connectivity and infrastructure development in South-east Asia, and the innovations which will enable travel and tourism growth over the coming decades.

Sessions will also include a discussion on digital borders, and how to balance security with travel facilitation; the growing internationalisation of Chinese tourism, both in terms of acquisitions and outbound travellers; how the sector can balance projected growth with protecting destinations; and future trends in business and luxury travel.

Other speakers include Thai minister of tourism and sports Kobkarn Wattanavrangkul, UNWTO secretary general Taleb Rifai and AirAsia CEO Tony Fernandes.

As well, WTTC’s Tourism for Tomorrow Awards will be presented on April 27, showcasing the leaders in sustainable tourism in 2017.

The WTTC 2017 Global Summit is hosted by the Thai Ministry of Tourism and Sports and Tourism Authority of Thailand, and is endorsed by the Royal Thai Government.

Are GDSs still useful for travel agents?

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Gibergues: truth is distribution business is still growing

The question of whether GDSs remain a relevant middleman in today’s evolving travel landscape continues to be a hot topic of discussion at ASEAN Tourism Conference during ATF last week, as industry players bring different sides of the argument to the table.

Amadeus maintains that its traditional travel distribution function is still strong despite its diversification strategy into the airport and hospitality technology sectors, said Sebastian Gibergues, Amadeus IT Group’s head of leisure and online travel, global customers.

The travel technology giant acquired Singapore-based airport technology provider UFIS in 2014 and last year rebranded Newmarket International, which it had bought to accelerate expansion in the hotel software space, into Amadeus Hospitality.

Still, Gibergues stressed that these new areas of focus do not imply a decline in its distribution business. “Our strong technology and distribution play makes our company very resilient. The reality is the distribution business is still a growing and healthy (sector).”

This is especially so given the “organic growth the company enjoys from regions like South-east Asia, where people are travelling more than before”, he said.

Moreover, the current state of market fragmentation has only reinforced the need for airlines to “not ignore all the channels they can use to get reach”, added Gibergues.

Agents that TTG Asia spoke with at the conference, including Vivek Khanna, president of Tourcan Vacations, and Suli Purnawarman, consultant at Indonesia’s Astina Tours & Travel, still favour going through GDSs for airline bookings.

On the other hand, Margaret Siah, manager at Singapore’s PIL Travels, which handles leisure and corporate bookings, foresees some challenges ahead of GDSs with direct booking channels offering more inexpensive options.

This is certainly not the case for Gibergues, who is adamant that “bringing costs down, despite what airlines might say, is still the job of the GDS”.

Tour veteran joins Asia DMC to drive expansion

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Linh He

Linh Le has been named group managing director of Asia DMC as the company looks to accelerate its growth across Asia this year.

Le, who has 14 years of experience in tour operations, joins the company following a six-year tenure with boutique luxury tour operator Trails of Indochina.

In his new role, he is tasked with consolidating Asia DMC’s position in Vietnam, Thailand, Myanmar, Cambodia and Laos where its existing offices are located, as well as drive expansion into Sri Lanka, China, India and the Philippines this year.

The appointment follows the rebranding of the Hanoi-headquartered company at World Travel Market in London last year after 20 years of operating under HG Travel.

Meanwhile, Tran Thanh Nam will step down from his position as CEO of Asia DMC to focus on developing the hospitality arm of HG Holdings, the owning company of Asia DMC.

Price wars threaten survival of smaller players in Thai inbound sector

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Outside Grand Palace, Bangkok

The economic slowdown in Europe and stiff competition in the marketplace are spelling a particularly tough period for smaller players in Thailand’s European inbound tour sector, who have seen tour prices plunge by half in recent years.

European travellers have become price-sensitive, resulting in a price war that put smaller businesses at a disadvantage, said Sunee Pianngam, managing director of Tai Pan Reise Center (Thailand).

“Big players cut package prices, (putting) small and medium-sized ones who have no international networks out of business. Today, the (European inbound) market is occupied by only four to five big players.”

The price of a five-day package starts at 8,000-9,000 baht (US$227-256), down from 20,000-30,000 baht five years ago, Sunee said.

Also seeing depression in tour package prices, Montri Ramruangsakul, managing director of Arlymear, said the price of a 12 day-tour package is now just 10,000 baht, down from 20,000 baht in 2011.

“It’s now a buyer’s market. Supply is higher than demand. Running business today can only generate cash flows,” he said.

The setbacks are hitting agents amid an already-challenging landscape, as Montri shared that tour operators have been losing business due to rapid technological development and the growth of LCCs and OTAs.

Affected agents are pinning their hopes on baby boomers, who they said have higher purchasing power and a preference for traditional tour agents.