Huge windfalls expected for region as Indonesia lifts cabotage

October 21, 2015

INDONESIA’S lifting of cabotage of the sea last month is expected to open up the country’s cruise market and pedal up South-east Asia’s ambition to be the Caribbean of Asia.

International cruise lines can now embark/disembark tourists through the seaports of Benoa (Bali), Tanjung Priok (Jakarta), Tanjung Perak (Surabaya), Belawan (Medan) and Soekarno-Hatta (Makassar).

Chairman of Indonesian Marine Tourism Association, Didien Junaedi, said: “We have been fighting for the country to lift the barriers to marine tourism. This will attract the fly-cruise market to Indonesia.”

International cruise lines interviewed are salivating at the prospects of a larger domestic cruise market and more interesting itineraries.

Farriek Tawfik, director, South-east Asia of Princess Cruises, said: “The Indonesian government has permitted foreign cruise ships to drop anchor at selected Indonesian ports, which are the biggest ports at the moment. This will benefit cruise lines like Princess Cruises which have large ships.

“With the new regulation, we will be able to cater to domestic cruise passengers, allowing us to expand a new source market.”

Rudiana, director of sales of WITA Tour, pointed out that Indonesian travellers who could not join a cruise in the Indonesian waters due to cabotage rules could now enjoy a wider variety of itineraries, which would attract more people to cruise.

He envisioned cruise lines to create more regional cruises or just all-Indonesia itineraries as a result of the new development. This would foster the growth of inbound, outbound and domestic cruising.

Melvyn Yap, regional director-Asia of Silversea Cruises, said: “The Indonesian archipelago is a long stretch. This will give us a lot of time to explore all the beautiful islands instead of trying to get to another country just to meet the cabotage requirements.”

But as itineraries had already been planned for 2017, he expected changes only “perhaps in 2018”, saying Silversea as a forerunner in destination development welcomed this.

Despite the cruise impetus, industry players are aware of challenges. Edhi Sutadharma, general manager of Golden Rama Tours, pointed out: “The question now is whether the Indonesian ports are ready for these big ships to embark and disembark passengers (conveniently)?”

Elly Malaihollo, general manager and operations director of Panorama Prestige Indonesia Cruise Specialist Bali, voiced similar concerns. “We appreciate the policy but that alone is not enough to boost cruise business. We need the infrastructure, the human resources and supporting facilities such sufficient number of immigration counters, baggage handling, excursion buses, and so on. We are talking about moving thousands of passengers at a time,” she said.

Indonesia’s Minister of Tourism Arief Yahya, meeting the media and buyers yesterday, said infrastructure development was a key programme of Joko Widodo’s administration, and the government was focusing especially on maritime development.

“There are 100 marinas and 22 seaports to be built until 2019 and the existing seaports will be upgraded to facilitate the growth of marine tourism,” he assured.

Last year 73 cruise ships called on Indonesia, bringing a total of 102,270 pax. Year to September saw 61 cruise ships bringing 106,653 pax to the country.

Tawfik saw competition from budget airlines and land vacations as challenges and engaging local agencies to promote cruising and organising on-shore excursions.

Peak India incentive season ablaze due to haze

By S Puvaneswary

October 21, 2015

MALAYSIAN agencies handling MICE groups from India are being affected by the haze in the current peak season and fear that arrivals in the coming years will drop due to bad experiences this year.

The haze is a result of uncontrolled fires raging in forests and peatlands in parts of Indonesia, coupled with the extended dry weather caused by a longer El Nino season this year.

Luxury Tours Malaysia senior manager, Arokia Das, said: “For the first time, our incentive business to Langkawi was affected due to the thick haze on October 4 and 5. On October 4, we had to cancel outdoor activities such as mangrove tour and island-hopping for an incentive group of 250 people. However, we were still charged for the boats.

“Then on October 5, Langkawi International Airport runway was closed for three hours due to poor visibility. Flights could not land or take off. Departures for Kuala Lumpur were affected and the group had to wait at the airport until services resumed.

“There was a gala dinner in Kuala Lumpur that night and about 70 people could not make it on time. Word of this event will definitely spread and I am deeply concerned that Malaysia will lose incentive business from India to other destinations such as Hong Kong, Sri Lanka and Bangkok due to the haze.”

He added MICE organisers from India had asked for assurance the haze would not be present when their group arrives in November. “We told them that the haze is beyond our control and they should look at city destinations (where there are indoor options) and avoid going to islands,” he said.

Hidden Asia Travel & Tours managing director, Nanda Kumar, fears an incentive group from India which the company is handling will take legal action. “Their programme was disrupted when their flight from Kuala Lumpur to Langkawi was delayed for five hours and outdoor teambuilding activities had to be done indoors. The MICE organiser wished to deduct payment for the teambuilding activities which were not carried out as planned,” said Nanda.

World Avenues executive director, Ally Bhoonee, said his company had a tough time convincing the organisers of two incentive groups from Mauritius and Morocco not to cancel their programmes in early October, which included twinning Kuala Lumpur with Singapore. He said: “Our pitch was that they could get a five-star property for below US$100 per night in Kuala Lumpur. Also they could do more indoor activities.

“It will also be a challenge for me to convince agents at the World Travel Market (next month) and Arabian Travel Market to bring incentive groups to Malaysia from August to October next year.

“My fear is if it recurs with the same intensity next year, all my effort and money spent on marketing Malaysia overseas will be wasted. Agents will lose faith and confidence in this destination,” he said.

Youths increasingly relying on travel consultants

By Xinyi Liang-Pholsena

October 21, 2015

Credit: 123rf

CONTRARY to conventional assumptions that travel consultants are losing ground, especially among young adults in an era where entire trips can be booked on a smartphone, Millennials are engaging their services.

Steve Pirie, director of Sydney-based Unleashed Travel, which sends an average of 3,500 travellers from Australia and New Zealand overseas each year, said that’s because the first overseas experience is daunting for young travellers aged 17-25 years old.

“The youth market is growing exponentially at about 20 per cent each year,” said Pirie. “We pre-package everything; close to 99 per cent (of youth travellers) take up our tours.”

For instance, the Pacific islands such as Fiji was once favoured as destination for gap-year students in Australia, but these travellers are now casting their sights further afield.

Furthermore, the rising connectivity to Asia arising from the emergence of LCCs such as Scoot is making the region “a lot closer and more affordable than it used to be” for Australia’s youth travellers, added Pirie.

“The youth market is becoming more travel-savvy; they are now going to Bali, the Philippines, Cambodia and Thailand,” said Pirie.

As well, the Millennials are not simply relying on the sharing economy, remarked Pirie, who sees greater uptake of sharing economy providers like Airbnb only when the young adults reach 25 years old and gain more travel experience.

Lac Hong Voyages’ executive director Jonathan Tran is positive that agencies will remain relevant. “First-timers will still use package tours, especially if they are unfamiliar with Asia and don’t speak the local language. But for subsequent tours, they are likely to harness the power of the Internet,” he said.

Mount Kinabalu’s new trail a boost for adventure operators

By S Puvaneswary

October 21, 2015

Credit: Sabah Parks

ADVENTURE and inbound operators are rejoicing that from December 1 climbers can trek again to the summit of Mount Kinabalu using a new trail from Laban Rata to Sayat-Sayat Hut.

There isn’t much interest now in Mount Kinabalu because climbers cannot reach the summit and watch the sunrise, which is the main attraction, according to Diethelm Travel Malaysia’s managing director, Manfred Kurz. The old trail was damaged by a 6.0-magnitude earthquake earlier on June 5.

“Once the new trail is completed, I am sure it will generate a lot of interest,” Kurz said.

The new trail was chosen on the advice of international mountaineering experts and geologists from Canada and Japan. Currently, climbers can trek a 6km-long trail from Timpohon Gate up to Laban Rata only at 3,300m above sea level.

Inbound tour operator, Cheryl Wang-Shim, executive director of Exotic Borneo Travel Management, said: “We had many cancellations from mountain climbing groups from Japan after the earthquake as their main objective was to climb to the summit.”

Aside from the new trail opening, Sabah Parks will also consider increasing the number of permits from 100 a day now. Its director, Jamili Nais, said: “We have not fixed the number (yet), but we will start small then gradually increase it over time. The safety of the climbers is our main concern.”

Scarlett Sue, sales manager of Sutera Sanctuary Lodges which manages Laban Rata Resthouse, said accommodation enquiries for 2016 had already started to come in from both the longhaul and Asian markets. Laban Rata Resthouse is the largest accommodation provider there and is able to house up to 60 climbers.

An inbound operator in Sabah, KL Tan, general manager of Borneo Trails Tours & Travel, said allowing climbers to the summit would help revitalise the local travel industry, in particular the surrounding areas of Kinabalu Park. Homestays, restaurants, lodges and hotels should expect better days ahead.

But agency chiefs are divided on how quickly it will take to rebuild confidence. Wang-Shim opined: “It will take some time, because this is a natural phenomenon and out of (human) control.”

Kurz gave another view: “Trekkers from Europe are mainly young people and are adventurous. They know that the earthquake in Sabah is not a regular occurrence.”

Regardless, Noredah Othman, senior marketing manager at Sabah Tourism Board, said that promotions were being carried out as per normal and they were keeping overseas travel consultants abreast on the latest updates.

Sabre targets North Asia with four new languages for TripCase

By TTG Asia

October 21, 2015

TECHNOLOGY provider Sabre will be launching its mobile travel management solution, TripCase, in four Asian languages – simplified Chinese, traditional Chinese, Korean and Japanese.

The aim is to connect more travellers across North Asia with their travel agencies and suppliers via the app, accessible on iOS and Android devices.

According to Sabre, in South Korea, 35 per cent of travel itineraries created by Sabre-connected travel agents today are captured with the TripCase English language app. For Hong Kong, the figure is more than 25 per cent, with Japan at a close 23 per cent.

This level of TripCase activity, concentrated within the multilingual business travel community, points to a strong latent demand for native language versions of the app.

Findings from the Sabre’s Corporate Travel Practices Survey ran in Asia-Pacific earlier this year also confirmed the increased potential for TripCase, according to the company. Most of the 108 corporate travel agency brands polled have clients deploying apps now, with a further 18 per cent intending to follow.

Some features of the app include access to flight itineraries, hotel bookings and car reservations; notifications sent to a phone, table or smart watch if there are any changes to itinerary; share their itinerary with other who need to stay updated and access seat maps, alternate flight schedules, weather and other tools to guide them through their trip.

The four TripCase launches in Asia follow Sabre’s acquisition of its regional technology partner, Abacus, earlier this year.

Genting Hong Kong acquires Singapore’s Zouk nightclub

By TTG Asia

October 21, 2015

Credit: Zouk

GENTING Hong Kong is reaching out to a wilder clientele with its acquisition of iconic Singapore club brand, Zouk.

Launched in Singapore in March 1991, Zouk has established itself as the leading nightlife destination, and is expecting a new club in Clarke Quay in 3Q2016.

“Zouk is a brilliant example of a local Singapore brand that has not only achieved worldwide status and recognition in the global club scene, but has truly evolved into a subculture of its own for generations of trend-setters in Asia,” said Andrew Li, vice president, lifestyle and F&B concepts, Genting Hong Kong.

“As Genting Hong Kong continues to expand its reach in attracting a younger and more lifestyle driven clientele, we are confident that the addition of such an iconic institution will further complement and enhance the company’s overall brands and offerings across the region.”

Following the acquisition, Genting Hong Kong will get its hands on Zouk’s major trademarks as well as the upcoming new Zouk club. Genting Hong Kong will also continue the annual ZoukOut dance music festival’s operations in December 2015.

“Zouk…has all along held ambition to expand beyond Singapore and Malaysia. Genting Hong Kong will take the Zouk brand to the next level and to greater heights together with the existing Zouk Singapore team, mapping its footprint out of Singapore and Malaysia, and for the future,” said Lincoln Cheng, Zouk brand founder.

Janet McNab chosen to lead Starwood properties in Macau

By TTG Asia

October 20, 2015

STARWOOD Hotels & Resorts has appointed Janet McNab managing director of Sheraton Macau Hotel, Cotai Central and St. Regis Macao, Cotai Central, a position that requires her to oversee both hotel operations.

Prior to this appointment, McNab was the area general manager of Starwood Hotels & Resorts in South Thailand, where she worked with eight hotels. She also served as the general manager of The Westin Siray Bay Resort & Spa.

Credit: Starwood Hotels & Resorts

“Throughout her career with Starwood Hotels & Resorts, Janet has led the openings of key hotels and is highly regarded for implementing a number of very successful sales and marketing strategies for properties all across Asia,” said Josef Dolp, vice president of operations for Hong Kong, Taiwan, Macau and Korea.

“Her experience in Asia, coupled with her exceptional leadership skills make her perfectly suited to take on the role of managing director for both Sheraton Macao Hotel and the soon-to-be-opened St. Regis Macao.”

McNab reports directly to Dolp.

McNab’s appointment is supported with Starwood Asia Pacific’s Female Talent Roadmap in March, which highlights the hotel company’s commitment to practise gender equality hiring and hence, aims to increase the number of female associates taking on executive positions globally.

Ani Villas to debut ultra-luxury resorts in Asia

By TTG Asia

October 20, 2015

Credit: Ani Villas

ANI Villas is set to debut in Asia with the launch of a 10-bedroom property in Koh Yao Noi, Thailand and a 15-bedroom estate in Dikwella, Sri lanka.

Located on the island of Koh Yao Noi, Ani Villas Thailand can be reached by boat from Phuket or Krabi, which is either an hour’s ride from the respective airports, or a 10-minute helicopter journey across the bay.

The villa spans two beachfront acres with all bedrooms equipped with large living spaces, bathrooms, Apple TV and music streaming capabilities.

Facilities include a 33m beachfront pool, children’s pool and double helix water slide, open-air dining sala, spa, fitness centre, bar, yoga pavilion and an enclosed living sala. Guests can also enjoy activities such as cooking classes, cycling, rock climbing, and dining with personal chefs.

Ani Villas Sri Lanka will open this December and is located just outside Dikwella on the central south coast. It is a three-hour drive from Colombo International Airport or 30-minutes by seaplane to a neighbouring lagoon.

The 4.5ha resort offers two villas and 13 suites. Each villa boasts a two-storey sea-facing living sala, library, game room and an open dining sala which overlooks a 23m beachfront pool as well as an adjacent children’s pool with a water slide.

The suites, which come with terraces and pitched roofs, are equipped with plush beds, stone bathtubs, outdoor showers, and modern media technologies.

Resort facilities include a spa, tennis court and gym. Guest can also opt to go outside the resort grounds to take part in activities such as whale watching, fishing, boating, surfing, taking a safari tour or tea tasting at a plantation.

An event pavilion, suitable for events and destination celebrations, is also available.

APAC logs strong international arrival growth for 1H2015: PATA

By TTG Asia

October 20, 2015

ACCORDING to findings contained within the Annual Tourism Monitor 2015 Final Edition by PATA, international arrivals into the Asia-Pacific region has continued the strong growth momentum of previous years with a gain of 5.4 per cent for 1H2015, resulting in close to 12.5 million additional arrivals year-on-year.

This continues the full year growth of 6.1 per cent during calendar year 2014, which culminated in a total foreign inbound volume of more than 550 million.

The study also found that international visitor arrivals to the Asia-Pacific region have collectively shown significant growth in the last five years, rising from almost 455 million in 2010 to over 552 million in 2014.

China, Hong Kong and the US were the top three source markets for all international arrivals within the Asia-Pacific region in 2014, although there were significant differences between sub-regions.

“Understanding the immediate impacts of changes in the foreign inbound markets allows us to contain the negative consequences and boost the positive,” said Mario Hardy, CEO of PATA.

“This final edition of the 2015 PATA Annual Tourism Monitor therefore provides an important first step in quantifying these changes and allowing us to make resource deployment decisions based on those quantification metrics.”

Pan Pacific named managers of serviced suites in Nusajaya

By TTG Asia

October 20, 2015

Credit: Pearl Discovery Development

PAN Pacific Hotels Group has signed an agreement to operate a 205-key luxury serviced suite development located in Nusajaya, Malaysia, in partnership with Pearl Discovery Development, a joint venture set up by Singapore-based real estate developers Pacific Star and DB2.

Named Pan Pacific Serviced Suites Puteri Harbour, it is located within the larger Puteri Cove Residences mixed-use development, and will offer studio, one- and two-room apartments for both short and extended stays. The projects are slated for completion in 2018.

Pan Pacific Serviced Suites Puteri Harbour will occupy 16 floors within one of the three apartment towers at Puteri Cove Residences, which includes an additional four blocks of SOHO/loft units and a two-level waterfront retail promenade.