JW Marriott Hotel Shenzhen Bao’an

MARRIOTT International completed its US$13 billion acquisition of Starwood Hotels & Resorts last Friday, making it the largest hotel company in the world with 5,700 properties and 1.1 million rooms in more than 110 countries.

The new combined entity now have 30 brands under its umbrella, although only 20 of which currently have presence in Asia.

Regarding bringing the other brands to Asia, Marriott’s CFO for APAC, Ken Rehmann, toldTTG Asia e-Daily: “There are ten brands between the two companies that can be added in Asia and that’s a good opportunity for us. However, we have to look at whether they are appropriate. Even though it may be a good American brand in the US, it may not work well elsewhere. That’s why we don’t have every brand here today.

“Brands like Fairfield by Marriott in Australia are very new to the region and there are only a few properties in Asia. We just signed the deal with Eastern Crown in China so that is huge growth opportunity.”

Still, there are massive growth plans in the pipeline for the already enormous conglomerate, added Marriott’s APAC president and managing director Craig Smith. “We will be able to double the number in the next five years. Having this comprehensive footprint means having the right brand in the right place. It also represents synergies for better sale.”

Expounding on the expansion plans, Rehmann said: “What I have seen is that we can achieve a lot of growth in leisure destinations around Asia. What would be great about the merging of these two brands is being able to cover more destinations.

“We see the focus on leisure destinations. For instance, we have started projects in Vietnam, the Maldives and Philippines. However, the first step is to understand what we have in the pipeline.”

Asking how the consolidation impacts MICE and corporate bookings, Marriott’s chief sales and marketing officer for APAC, Peggy Fang Roe, said: “Everything will stay the same in terms of corporate booking and MICE planners. Over time obviously we will bring contracts and other aspects together, but for now, things will operate no differently. With the merger, we will certainly have more choice and opportunity for more places to stage meetings and events.”

The travel trade in Hong Kong welcomed the move. Westminster Travel CEO Larry Lo said: “The merger means more convenience for us as we now deal with only one company. With a greater volume of traffic, this enhances agents’ negotiation power with more choices. I hope they can refresh the marketing products for agents given this new portfolio.”

Jetour Holdings chairman Ronnie Ho said: “This becomes one big deluxe brand with stronger positioning. It really broadens our offering and image when selling to our clients. Location-wise, it’s better coverage as both Starwood and Marriott complement each other.

“My only concern is whether they will merge the team after consolidation. Then the group will have to brief the trade about the differences amongst those 30 brands.”

Meanwhile, China Travel Services International Science-Technology & Culture Exchange director Ng Hi-on noted that the two hotel groups have different clientele. “It’s not a big surprise to me and I don’t see that there will be any difference after the merger. My key concern is whether the sales teams will be combined or not.”

DUBAI-based business conglomerate Najibi Group and its new investment and development company in Australia, Sanad Capital, is embarking on its first project Down Under.

The Sunshine Coast Project, a A$400 million (US$306 million) lifestyle destination in Queensland, will comprise the world’s first Wave Reservoir waterpark, watersports facilities, a sports centre, a function centre, an events area, a hotel, and an array of restaurants and retail outlets.

“The development is set to become an unparalleled, unprecedented tourist hub. Influenced by major action sports projects, water parks and entertainment hubs across Asia, it will serve up a memorable, family-friendly experience to locals as well as tourists,” said Sanad Capital’s chief executive Bradley Sutherland.

The tourist attraction is expected to generate 2,000 jobs during its construction phase, and a further A$29 million annually in salaries and wages post completion, according to a an economic benefits and analysis report.

The same report, produced by Urban Economics, notes that the project will inject a total of A$260 million into the region during construction, and A$30 million per year thereafter. Construction is slated to begin in 2017.

MALDIVIAN authorities have slapped a tax on remittances by expatriates in an effort to garner extra revenue for the cash-strapped nation dependent on tourism revenue.

The Maldives Inland Revenue Authority (MIRA) said the 3 per cent Remittance Tax to be charged from expatriates will be in effect starting October and be enforced on nearly 100,000 foreigners working mostly in resorts.

Another 50,000 to 75,000 undocumented, low-wage workers mostly from Bangladesh will be the most affected by the move.

“They get very little (around US$100 to US$200 a month) and deducting 3 per cent off this could be a bit harsh,” said a travel agent who declined to be named.

Of the estimated 367,000 total population in the Maldives, about 150,000 are foreign workers mostly attached to resorts.

According to new laws, salaries of all expatriate workers in the Maldives must be deposited in accounts of banks operated in the Maldives.

Political unrest, an economic slowdown and a drop in tourist arrivals, the country’s main source of income, has seen the country’s revenue decline.

JTB is teaming up with Japan Airlines and Kadokawa, one of the nation’s leading publishers, to tap into international interest in Japan’s famed anime and manga scene.

The three companies launched the Japan Anime Tourism Association last week, and the association’s very first initiative is the creation of 88 “animation spots” around the country where fans are able to explore the locations used in their favourite tales.

The destinations combined form a pilgrimage route for dedicated manga and anime fans, inspired by the famous 88-temple route walked by religious pilgrims on the island of Shikoku.

Tsuguhiko Kadokawa, vice president of the new association and chairman of Kadokawa, said this is “what Japan needs to take advantage of to drive its economy”.

“It is impressive that the presence of Japan’s pop culture in the world has grown into something that can be on a par with Hollywood,” he added, pointing to the emergence of prime minister Shinzo Abe in a Super Mario costume at the closing ceremony of the 2016 Olympic Games in Rio de Janeiro.

“Manga and anime have made a lot of young people from around the world very interested in coming to Japan,” Motohisa Tachikawa, a spokesman for JTB, told TTG Asia e-Daily.

“But we have also realised that plenty of middle-aged people are also coming here for similar reasons. There are locations associated with anime and manga stories from Hokkaido in the very north of Japan to Okinawa in the south and there is strong demand for those places to be made more accessible,” he added.

The association will initially focus its marketing efforts on other nations in Asia, where anime and manga already have a firm and widespread following, said Tachikawa.

JTB also intends to promote tours that feature pop culture sites, while the association will utilise social media to disseminate information on the project.

Agatha Lee (second from left) and Yongyut Lujintanon

LOWER 1H2016 revenue has turned Cathay Pacific’s sights towards the leisure market to better deal with business challenges expected for the rest of the year.

Yongyut Lujintanon, the airline’s sales and marketing manager for Thailand and Myanmar, said corporate clients significantly dropped in the first half of the year due to global economic downturns.

The period saw revenue fall 9.3 per cent to HK$45.68 billion (US$5.8 billion), resulting in profits taking a 82 per cent dive to HK$353 million year-on-year.

Yongyut said that while the proportion of leisure and business travellers were somewhat even previously, lower corporate demand means the airline needs to make up for the difference through the leisure market.

In Thailand, an important market for Cathay, the carrier has made airfares more attractive in a bid to boost demand, said Agatha Lee, manager of Cathay Pacific for Thailand. The airline is offering fares starting from 4,700 baht (US$135) for a Bangkok-Hong Kong flight.

Cathay Pacific remains the biggest player among seven airlines on the Bangkok-Hong Kong route, operating 63 flights per week.

Apart from pricing, the firm has invested in new technology, aircraft and services to meet demand of clients and to compete with rivals.

Delivery of the first of 22 Airbus A350-900 aircraft arrived in May and the airline will take delivery of a total of 48 A350 XWB aircraft by 2020. With this, it hopes to grow its network of routes and increase flight frequencies to popular destinations in North America such as Boston and Vancouver.

Cathay also recently opened new lounges in Bangkok, Tokyo, Manila, Taipei and Vancouver and a rebrand of its subsidiary airline Dragonair into Cathay Dragon to better target Chinese passengers is set to commence in November.