Malaysia will stop hosting the Formula One Grand Prix after 2018 when the current agreement expires, but this is unlikely to put the brakes on inbound and incentive business, according to industry feedback.

Malaysia’s tourism and culture minister Nazri Abdul Aziz said the race is an unsustainable revenue source as the country is still unable to recoup the RM300 million spent on the annual event, with ticket sales declining over the years.

Adam Kamal, CEO, Olympik Holidays, observed that ticket sales have dwindled over the last six years, a trend he attributed to the presence of more FI races in Asia. Singapore started hosting the race in 2008 and Abu Dhabi a year later.

He added: “Many of the spectators are locals who just watch the races and go home. They don’t stay in hotels or go on tours, so there’s not much economic spillover.”

Business from F1 was less volume-driven, unlike the more popular MotoGP races also held at the same circuit, noted Arokia Das, senior manager at Luxury Tours Malaysia.

“For MotoGP we sell over 300 packages, but for F1 we sell a maximum of 30 packages. F1 is an added attraction for incentives to come here and watch the race as a pre- or post-event. However, (only a) select few delegates are interested; it has a higher appeal to incentive delegates from the automobile industry.”

Adam, who is also the Malaysian Inbound Tourism Association secretary general, hopes that government dollars allocated for the promotion of the F1 event in Malaysia would be used for other tourism purposes.

Tourists at Chatuchak Weekend Market

The latest tax incentive introduced in Thailand to boost domestic tourism in the last month of the year is not expected to yield much benefits due to its untimely and impractical implementation, Thai travel agents said.

The Thai cabinet on Tuesday approved the new tax incentive of up to 15,000 baht (US$421) for individual taxpayers on domestic tour packages and hotel accommodations in December. This comes on top of the previously approved 15,000 baht tax break on domestic travel spending applicable for January 1-December 31, allowing a combined deduction of up to 30,000 baht for the year-end period.

Although this measure will result in a 150 million baht loss in revenue, the government hopes to stimulate one billion baht in local spending and spur the national economy.

Phuriwat Limthavornrat, president of the Association of Domestic Travel (ADT), doubts the tax incentive will aid travel agents, hoteliers and restaurateurs in most provinces outside of Bangkok.

He commented: “More than half of hotels in (upcountry) provinces are illegal and most restaurants there cannot issue tax invoices legally. Therefore, benefits from this measure would mostly go to restaurants in shopping malls and big hotels, not directly to travel agents and SMEs in the tourism industry.”

That is the main reason why few taxpayers exercise the incentive, Phuriwat pointed out. “It’s the government’s good intention to spur domestic tourism but success (of this initiative) also requires understanding the markets,” he opined.

Chotechuang Soorangura, associate managing director of NS Travel & Tours, thinks the incentive will benefit just a very small group of young travellers whose monthly income exceeds 26,000 baht. Those with lower income do not have to pay tax and those with higher revenue mostly travel abroad during the period, he said.

“The government should create a long-term strategic plan for sustainable tourism. Public transport is necessary, such as high-speed trains, to facilitate tourists’ travel. Besides, it should amend some regulations to promote tourism,” suggested Chotechuang.

(From left) Hong Kong Airlines’ Wang Liya, Hong Kong Transport and Housing Bureau’s Anthony Cheung, Government of Hong Kong’s (GovHK) Lin Wu, Hong Kong Airlines’ Mung Kin Keung, GovHK’s C Y Leung, Hong Kong Airlines’ Zhang Kui, Ministry of Foreign Affairs of the People’s Republic in China in Hong Kong’s Hu Jianzhong and Hong Kong Airlines’ Tang King Shing

Vancouver will come onto the destination network for Hong Kong Airlines from June 30, 2017, as part of its global expansion plan into North America, the airline revealed at its recent 10^th grand anniversary celebration.

This year, Hong Kong Airlines added 11 new destinations to its destination network, including Seoul (commencing December 16), Gold Coast and Auckland, bringing its current network to 36 major cities in Asia-Pacific.

Zhang Kui, co-chairman of Hong Kong Airlines, said the airline will continue to keep its “focus on Asia-Pacific” while charting its expansion overseas.

The airline will also welcome its first A350 aircraft in August next year to its 34-strong fleet, and the new 1,350m² VIP lounge in the Midfield Concourse (MFC) at Hong Kong International Airport will be ready in 1Q2017.

Moreover, the Hong Kong Airlines Aviation Training Centre, which aims to nurture a new generation of aviation talent, is slated for completion by end 2018.

Since its establishment in 2006, Hong Kong Airlines has experienced robust growth. As of late September 2016, total passenger volume over the past decade reached 26.5 million, translating to over 20 per cent CAGR in passenger traffic.

When PATA New Tourism Frontiers Forum (NTFF) takes place in Palau from November 15-17, 2017, the event is expected to lend a helping hand in marketing and managing the fledgling tourism industry of this western Pacific nation.

Speaking to TTG Asia on the sidelines of the PATA NTFF in Cox’s Bazar last week, Palau Visitors Authority vice-chairman, Terrence Ruluked, said: “We have an influx of international tourists from markets including China, Taiwan, South Korea, Japan and the US. Our major concern now is to maintain a healthy balance between environment and tourist flows, so our focus is now on high-end tourists.

“We expect the upcoming NTFF in Palau to help us identify how we can attract such tourists and at the same time maintain the pristine beauty of our country,” he added.

The forum agenda, while yet to be finalised, is expected to address sustainable tourism development as a key concern.

Starting with last year’s inaugural edition in Legazpi, the Philippines, the selection of secondary and tertiary destinations to host NTFF is a strategic one to ensure “better distribution of tourism”, PATA CEO Mario Hardy stated.

“Certain places like Bali, Bangkok and Venice have a huge concentration of tourists but other places in that country don’t receive as many tourists, so we want destinations and private players to promote new tourist destinations,” he added.

Welcoming PATA’s move to host events in new destinations, Syed Qadir, managing director of Dhaka-based Wonder Ways, said: “Lesser-known destinations need to be promoted for tourism globally for their economic development as well as for creation of employment opportunities.”

Noda (left) and Gebbia after signing the agreement

Local governments in Japan are encouraging the use of non-hotel accommodation in anticipation of the expected visitor boom during the 2019 Rugby World Cup and Tokyo 2020 Olympic and Paralympic Games.

Following the proposed deregulation of short-term rentals including Airbnb earlier this year, Airbnb co-founder Joe Gebbia recently signed an MoU with Takenori Noda, mayor of Kamaishi, Iwate Prefecture, to facilitate the hosting process for homeowners in the city.

As host city for the rugby mega-event in 2019, Kamaishi is expected to welcome 30,000 visitors during the tournament. Its hotels and ryokan, however, can accommodate only 1,000 guests.

With the partnership, the city plans to identify community leaders to help potential hosts list their homes on Airbnb, and the homesharing platform will “provide training and materials that will help existing and potential hosts understand the services provided… and how to be a good host”, according to Airbnb representative Miho Saito.

Meanwhile, the Osaka municipal government is hoping for “many more” applications from the public to be registered as minpaku (home-lodging) providers.

Aria Aoyama of the Osaka Convention and Tourism Bureau said: “It is of (utmost) importance to ensure that Osaka welcomes its visitors into an environment that ensures safety and security, so that our visitors always have peace of mind.”

Officials hope the move will ease the strain on hotels and ryokan in the city but travel agents are unsure of the implications. HIS spokesperspon Eric Rajepakse said travel agencies have no system for reserving minpaku or knowing what facilities they offer, so they are limited to booking hotels or ryokan for tourists.

The central government also plans to shorten the minimum stay at minpaku from six nights to two nights to make the accommodation more appealing and practical for inbound visitors. Osaka is expected to adopt the rule in 2017.

Outrigger Fiji Beach Resort

Outrigger Fiji Beach Resort and Castaway Island Fiji are offering discounted rates to travel agents and support staff.

Under the deal, agents can book at Outrigger Fiji Beach Resort for FJ$199+ (US$94+) per room night while Castaway Island Fiji is available for FJ$399+ with a minimum three-night stay.

A Castaway Island meal plan is also available for FJ$99+ per day for adults and FJ$49+ for children aged three to 12 years, with no charge for children under three years.

The rates will be available for sale from December 1, 2016 to March 1, 2017 and are valid for stays from December 1, 2016 to March 10, 2017.

For reservations, e-mail reservations@outriggerfiji.com or call (679) 650 0044. Block-out dates are from December 24, 2016 until January 5, 2017.

Exterior of a Louis Vuitton store along Nanjing road, Shanghai

Global Blue has partnered with Bank of China to launch a tax-free shopping scheme in Shanghai, allowing foreign travellers and residents in Hong Kong, Macau and Taiwan to enjoy nine per cent in tax savings with participating retailers.

Almost 200 stores in Shanghai have signed up to the scheme, including major department stores like Takashimaya and Parkson as well as luxury brands Chanel, Hermes, Tiffany and Louis Vuitton, among others.

To reclaim VAT, shoppers need to request for a Tax Free Form and VAT invoice at time of purchase and submit these along with passport, receipts and unused purchases for verification at the airport’s customs desk. Once verified, customs will provide a stamp for the form, which can then be produced at the refund counter in exchange for the VAT refund.

The minimum purchase amount to qualify for a refund is RMB500 (US$72.50).

Meanwhile, Global Blue will continue working with Bank of China to increase the number of participating retailers and help them better advise foreign visitors on use of the scheme.