TTG Asia
Asia/Singapore Friday, 24th April 2026
Page 1953

Australia liberalises visa for Indonesians

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australia-liberalises-visa-for-indonesiansGold Coast International Airport.

IN an attempt to boost arrivals from Indonesia, the Australian government will be introducing a three-year, multiple-entry visa for Indonesian visitors to Australia next year, an extension of the current one-year visa.

Online visa applications will also be extended to all Indonesian citizens by 2017.

The initiative was announced by Peter Dutton, minister for immigration and border protection, with Andrew Robb, minister of trade and investment as well as Richard Colbeck, minister of tourism and international education during Indonesia-Australia Business Week in Jakarta yesterday.

“These initiatives will benefit Indonesia and Australia as we look to promote stronger business and tourism links between our two countries. This change reflects Australia’s close relationship with Indonesia and is part of the government’s agenda to boost our tourism sector and reduce red tape,” Dutton said.

In conjunction with Indonesia-Australia Business Week, Tourism Australia also organised the three-day Walkabout Indonesia 2015 earlier this week, where 30 tourism suppliers met up with 150 Indonesian outbound players.

John O’Sullivan, managing director and CEO of Tourism Australia said: “The objective is to build partnerships and showcase new products, as well as to explore the kind of experiences the emerging affluent middle-class market is looking for.”

He added that Tourism Australia is in the process of opening an office in Indonesia to develop the market.

There were 150,200 visitors from Indonesia to Australia in 2014, up six per cent compared to the year before, generating an estimated A$600 million (US$432 million) in tourism receipts. Arrivals are targeted to increase to between 1.2 million and 1.5 million by 2020.

In the meantime, Colbeck in his meeting with Arif Wibowo, president and CEO of Garuda Indonesia, yesterday appealed to the airline to increase the number of flights to Australia to allow more traffic between the two countries.

Langham in central Tokyo

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GREAT Eagle Holdings is buying nearly 4,000 sqm of land worth a reported Y22.22 billion (US$180 million) in central Tokyo for the first Langham hotel in Japan.

A three-minute walk from Roppongi-Itchome subway station, the site is a parking lot and has a number of small office buildings.

The transaction is due to be completed in December with plans for the property to be operational ahead of the 2020 Tokyo Olympic Games.

Great Eagle operates 13 hotels worldwide comprising more than 6,000 rooms, including Langham properties in Sydney, Boston, Shanghai and Auckland.

Other chains composed amid new goliath

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THE spectre of a new giant in their wake from the Marriott-Starwood merger has not sent other hotel chains trembling in trepidation – or so they say.

Other hotel groups maintain the stance they have a good footing and are unfazed by the merger, despite it creating a portfolio that’s by far larger than theirs and expectations of more consolidation occurring in the months ahead.

When approached, InterContinental Hotels Group (IHG) reiterated the statement made by its Board of Directors on November 6 that it was not considering a potential sale or merger of the company.

Hilton Worldwide also reiterated its position that it was “not involved in that process” and was “not worried”, said president and CEO Chris Nasseta during its 3Q2015 earnings call on October 28.

“The reason we’re not involved in that process and the reason I’m not worried about what happens there is because we feel very good about the setup that we have,” Nasseta said.

“We have an amazing business, an amazing opportunity in front of us, and that’s what we’re focused on, optimising for all of our benefits.”

Also feeling very good about its setup, IHG’s CEO of Asia, Middle East & Africa, Jan Smits, said: “We’re a successful business, we have an established strategy, we have a broad portfolio of brands and a proven track record of delivering growth and delivering shareholder returns.

“This is not a zero-sum game – there are good, organic prospects for all players. We’re used to operating in this context and right now we’re just being focused on delivering our strategy.”

Choe Peng Sum, CEO of Frasers Hospitality, said the merger between Marriott and Starwood would force other chains to re-evaluate their offerings and assess the need to join arms with other players, be it large or small chains, to better equip themselves for an increasingly competitive landscape.

“This is exactly what we at Frasers Hospitality have done with the purchase of Malmaison Hotel du Vin group, two best-in-class hotel brands, which have doubled our offerings in Europe, further strengthening our global expansion plans to achieve our goal of 30,000 units by 2019,” he said.

“Airbnb is here to stay and it would be foolish to ignore the impact they have made on the hospitality industry. It has caused companies to rethink their entire distribution strategy and hotels are now looking to merge with distribution channels to improve their online distribution.

“The entire consumer landscape of instant gratification and technology advancements, as reflected in the emergence of brands like Uber and Airbnb, has kept us on our toes. It has pushed us to enhance our guests’ experience with us, be more efficient in responding to guests’ feedback and is a good reminder that our customers are at the centre of everything we do. This is vital as customers will vote with their feet as their choices abound.”

What Marriott-Starwood merger means for hotel owners

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Ensuring that hotel owners will not lose out in this merger is the challenge that the new hotel giant will have to face, Tasos Kousloglou, EVP-Asset Management, Jones Lang LaSalle (JLL) Hotels & Hospitality Group, and President, Hospitality Asset Managers Association of Asia-Pacific, tells Raini Hamdi

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Tasos Kousloglou

Much has been made of the merger between Marriott and Starwood and how the new hotel behemoth will be received by guests, customers and the industry.

Yet overlooked in all this stir is one of the most important players in the industry – hotel owners.

As an asset manager who represents hotel owners with Marriott and Starwood branded properties in their portfolio, I have received and carefully read the letters sent by the CEOs of Marriott and Starwood to hotel owners that I represent highlighting the benefits of the “combined guest and customer base, loyalty program and powerful global platform” that are “expected to deliver more business to the hotels, increase efficiency, lower costs”, “enable increased investment in revenue-generating technology and innovation” and “lead to greater performance and profitability”.

The hotel owners are key stakeholders in this merger as they shoulder most of the property level risk. There is little doubt that the scale and breadth of the brands of the combined Marriott and Starwood company could create compelling advantages in marketing and distribution that may appeal to current and new hotel owners through eg. stronger negotiation position with OTA giants such as Expedia as well as economies of scale and potential re-branding opportunities leading to better performance.

However, there are also concerns due to overlapping of brand positioning, over concentration of brands and hotels in certain markets competing for guest loyalty, loyalty program benefits and the integration of the 54 million Marriott Rewards members with 21 million Starwood Preferred Guest members. Hotel owners may have to face competition from properties and brands of similar or stronger positioning under the same hotel group within the territorial restrictions agreed in their management agreements.

Hotel owners expect to see tangible benefits for the performance and profitability of their hotels as a result of the merger.

Will the combined Marriott-Starwood translate to stronger direct online bookings, repositioning opportunities, cost savings, lower reservation cost and premium pricing for their properties or will it result to additional competition and less attention to hotel owners?

The answer will largely depend on a successful integration plan that puts ownership interests at the same level with the interests of the newly merged company.

After all, the alignment of interests between owner and operator remains critical to the success of the hotels. A win-win relationship between owners and operators is always the best and augurs well for the future of the property.

Ensuring that hotel owners will not lose out in this merger is the challenge that the new hotel giant will have to face.

Aviation Festival Asia 2016 lands in Singapore

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THE 12th Aviation Festival Asia (AFA) will be taking place in Singapore on February 23 and 24 next year at the Suntec Singapore Convention & Exhibition Centre, bringing together an expected over 2,000 aviation experts to the annual event.

More than 200 industry leaders – including Arif Wibowo, president and CEO of Garuda Indonesia; Juha Järvinen, senior vice president and chief commercial officer of Finnair; and Barathan Pasupathi, CEO of Jetstar Asia Airways – are expected to speak on topics regarding the aviation and airport business, technological advancements and application, as well as on passenger experiences.

Airlines that have confirmed participation include names such as Etihad Airways, Delta Air Lines, AirAsia, Lufthansa, Air New Zealand, VietJet Air, Tigerair and Air France KLM.

Discounts are currently available for groups of three at a rate of S$1,255 (US$885) per person. Staff from airlines and airports also enjoy special rates starting at S$650 (US$458).

For more information, visit AFA’s website.

Go-getter Gaw gets BIG

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JUST months after it bought the iconic InterContinental Hong Kong for US$938 million, Gaw Capital Partners has acquired the 308-room BIG hotel in Singapore for S$203 million (US$143 million).

This is the first Singapore hotel acquisition for Gaw, a Hong Kong-based real estate private equity firm. The 8,800m² BIG hotel, originally an office building, was converted by ERC Unicampus and opened in 2013. Facilities include a restaurant, bar, gym, carpark and convenience store.

Mike Batchelor, managing director, JLL Hotels & Hospitality Group, Asia, which together with JLL Capital Markets Singapore brokered the deal, described the hotel as “an innovative limited service boutique hotel concept with an existing strong trading performance”.

Anthony Barr, regional director, JLL Capital Markets Singapore, said the firm was seeing increasing demand for Singapore properties from investors around the region, particularly those in Hong Kong.

“Singapore’s appeal as an investment destination remains strong with its stable political landscape and strong economic fundamentals,” he added.

Shanghai company buys Japanese ski resort

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SHANGHAI Yuyuan Tourist Mart has reportedly snapped up Hoshino Resorts Tomamu, a ski resort on Hokkaido operated by Hoshino Resorts for 18.3 billion yen (US$148.3 million).

The Chinese company is apparently looking to tap into the booming demand among Chinese consumers for year-round resort facilities in foreign destinations.

Hoshino Resorts will continue to operate the facility after the deal has been completed.

Shanghai Yuyuan Tourist Mart manages a number of large commercial facilities in and around Yuyuan Garden, one of the most famous attractions in Shanghai. An arm of the Fosun Group, it also has extensive interests in the F&B, real estate and pharmaceutical sectors.

Costa opens Tokyo office to tap ‘sleeping giant’

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COSTA Asia has opened a marketing office in Tokyo with plans to aggressively grow the cruising market in Japan.

Speaking to TTG Asia e-Daily at the launch reception in Tokyo on Monday, Buhdy Bok, president of Costa Group Asia, said he believes the Japanese market “could easily grow to be 10 times its current size.”

“We see Japan as a strategic market and we want to develop the cruising sector here to the point that it is seen as a mainstream vacation option,” he said. “The Japanese market is a sleeping giant.”

From summer 2016, Costa will introduce a casual family cruising concept to Japanese guests aboard the Costa Victoria. The recently refurbished vessel will take guests on six-day cruises between July and September, porting in Fukuoka, Maizuru, Kanazawa and Matsue in Japan and Pusan in South Korea.

“We believe it is all about finding the right combination of entertainment and facilities to unlock the potential of cruising in Japan,” said Bok.

“I do sense the uncertainty among the Japanese about cruising but we have chosen the itineraries with great care to avoid any anxiety among our passengers,” he added. “This means, for example, that the ships sail mostly at night, when passengers are asleep.”

Indonesia issues travel advisory to France

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indonesia-issues-travel-advisory-to-franceThe city of Paris.

INDONESIA has issued a travel advisory for all its citizens travelling or transiting in France following a series of terrorist attacks in Paris last Friday.

A press statement released by the country’s foreign ministry advises Indonesians to exercise caution in crowded city centres and to stay informed via French government websites and the news. Their citizens were also encouraged to carry with them identification cards, passports and emergency contact numbers.

Indonesian outbound operators said travellers are being cautious, but are not seeing significant cancellations yet. However, neither are they receiving new bookings to France for the year-end holiday season.

Groups departing this week with Golden Rama Tours went ahead despite the Eiffel Tower’s closure. Edhi Sutadharma, general manager of Golden Rama Tours said: “Travellers can still visit the area and see the tower from the outside. Going up the tower is optional in the packages anyway, so travellers can still enjoy the must-see attraction.”

“We have not seen any cancellations so far, but we are monitoring the situation,” he added.

Similarly, Paulus Sofyan Gazali, managing director of Tara Tour said he has not seen any cancellations to Europe although he projects that bookings will be slower.

For inbound traffic, the Bali Tourism Promotion Board (BPPD Bali) is projecting the attack on Paris will cause a significant dip in arrivals from France and that it will probably take three years to fully recover.

Ida Bagus Ngurah Wijaya, chairman of BPPD Bali said: “We see a possible decline in arrivals from France due to the Paris attacks. Using the impact of the 2005 London bombings as a benchmark, we may not see a full recovery until 2018.”

He expects a loss of roughly 20,000 arrivals next year and an estimated 6,000 in 2017.

Malaysia’s MICE awards motivate better event production: MyCEB chief

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THE Recognising Award Winning Results (rAWr) Awards, in its second edition this year, has fuelled competitiveness among local business event players and resulted in improved MICE standards, observed Malaysia Convention & Exhibition Bureau (MyCEB) chief, Zulkefli Hj Sharif.

“I’ve seen how the Awards has encouraged local players to raise the standards of their operations and events so as to win. Those who did not win the first round (in 2013 when rAWr was inaugurated) strove hard to make an impact this year,” Zulkefli remarked.

The Awards drew close to 60 submissions this year, and the presentation ceremony and gala dinner was held last Thurday evening at the Kuala Lumpur Convention Centre. It recognised several business events and specialists including Food and Hotel Malaysia by Malaysian Exhibition Services for Best Trade Exhibition (15,000m2 and below); ARCHIDEX by C.I.S Network for Best Trade Exhibition (15,001m2 and above); Winning Together Sales Kick-off Meeting by Pacific World for Best Incentive Programme; and Pearl Holiday (M) Travel & Tours for Destination Management Company Award For Excellence.

Anthony Wong, group managing director of AOS Convention & Events, was bestowed the Minister’s Award For Business Events Industry, an award that recognises an individual’s invaluable contribution to the Malaysian MICE industry through successful event bids and training for students and peers.

The rAWr Awards is jointly organised by MyCEB and the Malaysia Association of Convention and Exhibition Organisers and Suppliers (MACEOS).

MACEOS president, Vincent Tan, said the Awards functions well as a membership driver for the association, as it is only open to MACEOS members.