TTG Asia
Asia/Singapore Saturday, 20th December 2025
Page 2059

Dusit International and Japan’s Prince Hotels enter strategic partnership

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IN A marriage between two of Asia-Pacific’s established hotel companies, Thailand’s Dusit International and Prince Hotels Japan have tied up in a marketing alliance.

Aiming to grow both companies’ reach in the region and beyond, the partnership, signed last week in Bangkok, will allow each side to benefit from the other’s local expertise and sales and marketing resources, while providing a platform for cross-selling, marketing and promotions.

Masanori Kobayashi, president of Prince Hotels, which is Japan’s largest hotel chain, commented in a release: “We expect that the synergies between Dusit, a company that delivers the ‘Gracious Hospitality’ of Thailand, and Prince Hotels which fosters the spirit of Japanese omotenashi hospitality, will successfully enhance international awareness of both brands.”

Likewise, Chanin Donavanik, managing director and CEO, Dusit International, said: “We are pleased to enter into his partnership with Prince Hotels as Japan is a key feeder market for Dusit across the group. This is especially significant as we prepare to launch our highly anticipated Dusit Thani Guam Resort in 2Q, the tallest building on the island and the newest resort to open since 1999.”

Dusit has long been keen to tap the Japanese market, which is among the top three inbound markets for Thailand and Dusit Hotels and Resorts. The hotel group established a Japanese centre at its Bangkok headquarters in 2002 and opened a regional sales office in Tokyo in 2013.

Prince Hotels operates some 51 hotels internationally, with properties also in China, Taiwan, Malaysia and Hawaii, and runs a further 28 golf courses and 10 ski resorts.

South-east Asia’s medical tourists wanted by South Korea

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SOUTH Korea is plugging medical tourism in its new tourism offensive throughout Asia, hoping to leverage the popularity of K-pop and the relative affordability of its services.

The Korea Tourism Organization (KTO) last Friday went on a marketing sortie to the Philippines for the first time, bringing a host of medical tourism suppliers.

One supplier, Youngjin Kwon, senior researcher, Daegu Medical Tourism Promotion Institute, said one of KTO’s aims in visiting Manila is to network and find a local travel agency partner.

“We have no partner agency in the Philippines although we do in other countries. We don’t have that many Filipino clients yet but we do get a lot of foreigners, including those from China, Canada, Vietnam and Cambodia,” she said.

KTO’s ramped-up approach towards in this segment can be seen through the recent launch of www.visitmedicalkorea.com and its new slogan for medical tourism: Let’s talk beauty and fun: Trust Korea, the new heart of medical tourism in Asia.

“We want to attract more people in Asia and we are doing this through the new medical tourism website, marketing and promotions, leveraging the popularity of K-pop culture,” said Jiwan Kweon, English manager, The Alliance of Korea Medical Tourism, which has 78 hospitals and 38 travel agencies as members.

She also observed that medical costs in South Korea, while higher than Thailand’s, are slightly lower than Singapore’s. According to KTO, the same service costing US$100 in South Korea would be priced US$75 in Thailand, US$105 in Singapore, US$149 in Japan and US$338 in the US.

KTO statistics show that medical tourism grew at an annual rate of 50.6 per cent to welcome 211,218 arrivals in 2013. South Korea aims to have a million medical tourists by 2020. Major markets are China, the US, Russia and Japan, while South-east Asia takes up only 4.8 per cent of market share.

KTO has conducted similar showcases in Russia, Vietnam, China and Japan, and will visit Indonesia and Malaysia in March.

Helicopter tours give Kuala Lumpur a new buzz

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THE Kuala Lumpur City Hall tourism unit will soon introduce helicopter city tours targeted at high-end tourists keen on getting aerial views of the Malaysian capital and its surroundings.

In collaboration with a local helicopter service company, the rides will take off from the Lake Titiwangsa Kuala Lumpur heliport from mid-March, said Noraza Yusof, head of tourism, tourism unit at Kuala Lumpur City Hall.

Customers may choose from 15-, 30- or 60-minute rides. The first two cover Kuala Lumpur City, Batu Caves, Bukit Lanjan, Petaling Jaya and Subang, while the 60-minute ride covers Kuala Lumpur City, Batu Caves, Bukit Lanjan, Subang, Sunway, Petaling Jaya and Bukit Jalil.

Prices start from RM250 (US$68.50) per person for a 15-minute ride and RM880 per person for a 60-minute ride. The helicopters can accommodate groups of up to four or six passengers, dependent on the chosen vehicle.

Adam Kamal, deputy president 2 of the Malaysian Inbound Tourism Association, said: “This is a good new service to have as it gives an additional optional activity for high-end tourists in Kuala Lumpur. The location is also good as it is centrally located near five-star properties, which makes it convenient for visitors.”

Arokia Das, senior manager at Luxury Tours Malaysia said the helicopter tours are a good alternative to ordinary city tours by bus.

Forward bookings can be made by contacting pelancongan@dbkl.gov.my, and reservations should be done at least three days in advance.

Phuket’s hotel sector takes a hit from 2014’s market volatility

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PERFORMANCE in Phuket’s hotel market declined across the board last year as a direct result of the May coup d’etat and an overreliance on mass tourism, new research reveals.

The Phuket 2014 Hotel Market Update report from C9 Hotelworks, released this month, shows year-on-year hotel performance in Thailand’s second largest destination after Bangkok dropped in all sectors.

Occupancy contracted by six percentage points, spurring a nine per cent contraction in RevPAR, while average room rates fell by just one per cent.

Nevertheless, the fact that the destination was able to recycle demand during the last four months of the year was hailed as a “silent victory” by Bill Barnett, the report’s author and managing director of C9 Hotelworks.

He told TTG Asia e-Daily: “Phuket, much like Bali, punched the ticket and took the ride on mass tourism…it’s impractical to believe that the trend of sustained growth could continue unabated.”

Meanwhile, the Tourism Council of Thailand projected last year that Thailand could see annual arrivals surge to 40 million, up from about 25 million, within 2018. Such growth would necessitate dependence on volatile mass markets, something which played a factor in Phuket’s poor performance last year when the Russian market collapsed, warned Barnett.

Last year, growth from Phuket’s top two source markets of China and Russia fell from respective four-year averages of 53 per cent and 39 per cent to a yearly rise of just six per cent and four per cent.

Barnett said that geopolitical issues are creating region-wide volatility and that “the toxic triple threat of currency depreciation, travel warnings and the diminishment of resource driven economies has to take a toll on travel”.

“You cannot bury your head in the sand and say, ‘China will save us’, given that every other challenged tourism market in Asia is doing the same thing. Let’s not forget China is vulnerable to broader issues.”

Arrivals from Taiwan plummeted 56 per cent last year, as did the Norway, South Korea and India markets. But Phuket saw growth from lucrative source markets such as Hong Kong (20 per cent), the UK (17 per cent), Japan (nine per cent) and Singapore (five per cent)

John Watson back as CEO of Trails of Indochina

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FORMER Diethelm Travel Group CEO, John Watson, is back in the industry as CEO of Trails of Indochina, replacing Matt Masson who is relocating to Singapore.

Saying he is “so pleased to be back to the industry with such a fine company”, Watson said he would focus on “continuing to build on the firm foundations within the organisation and developing new markets and income streams”.

He added: “I am hugely impressed with John’s (Tue Nguyen, founder and owner of Trails of Indochina) ambition and drive and look forward to playing my part in leading and expanding the business.”

Watson is based in the agency’s head office in Ho Chi Minh City.

Trails of Indochina operates in Cambodia, China, Hong Kong, Indonesia, Laos, Myanmar, Singapore, Thailand and Vietnam.

A storied city goes luxe

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Better known as a historical destination, Xi’an has woken up to the potential of luxury travel thanks to a fresh crop of posh hotels in the city

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The growing presence of international luxury hotels has added a glamorous tone to Xi’an in China’s Shaanxi Province, which for decades has been drawing history buffs since the 1974 discovery of the terracotta army that forms part of the mausoleum of China’s first emperor.

Li Shuyan, MICE and general manager of Xi’an-based China Travel Service Head Office Northwest, has seen the changing face of Xi’an in the last 15 years. “Back then, foreign tourists who came to see the terracotta army stayed in the city centre where most hotels were. They had to wake up very early to make the long journey to Lintong where the terracotta pits are. Their main concerns were a clean bed and food that would not give them diarrhoea,” he recalled.

“But ever since international hotel chains like Shangri-La, AccorHotels and Starwood entered the market with their five-star products, the demographic of travellers has changed. Xi’an not only received more foreign tourists, it also welcomed wealthier ones.”

Today, numerous prominent hotels dot the city’s map, some in the commercial centre and others close to key tourist landmarks.

Agreeing that Xi’an is “increasingly on the radar of the luxury traveller”, Hajar Ali, founder of luxury travel company Urbane Nomads, said: “There is a correlation between the opening of luxury hotels and a destination becoming popular with the well-heeled. Xi’an has its history going for it but with the opening of new luxury hotels, it has become an easier choice for high-end travellers.”

Hajar observed that longhaul travellers tended to go for longer stays and relax at luxury hotels and resorts in Xi’an at the end of a lengthy trip to “pace the itinerary”, while shorthaul visitors from Hong Kong and Singapore favoured Xi’an as a stopover en route to Tibet.

Tourism players noted that the city’s luxury market is dominated by corporate travellers and special interest leisure groups.

Steven Wang, director of sales and marketing at The Westin Xian revealed that 85 per cent of the hotel’s guests are corporate and the rest leisure.

“Business travellers and meeting delegates have bigger budgets,” said Wang, adding that individual travellers and small-size groups on tailored programmes that focus on history, food or nature made up the majority of his leisure clientele.

Li opined that Xi’an’s booming industries, fuelled by Chinese president Xi Jinping’s commitment to developing cities on the Silk Road trading belt for international commerce, is luring wealthy businessmen to the destination. These travellers would extend their trips for pleasure, requesting for special activities such as a session with a local archaeology professor who can explain the history behind historical finds.

Diethelm Travel (China) is hence rolling out “extraordinary programmes” to differentiate itself from the market, said the company’s general manager, Julia Shi, general manager of Diethelm Travel (China).

The DMC can take visitors into areas that are off-limits to regular tourists, such as the reconstruction site within the Mausoleum of the First Qin Emperor, where archaeologists fix broken terracotta statues, as well as special vaults in the Shaanxi History Museum and Xi’an Museum. They also can offer unique activities such an archaeological digging experience at The Yangling Mausoleum of the Han Dynasty or a visit to Fei Yuan Private Musuem, which carries a large collection of porcelain and rubbings of stone tablets done by famous Chinese calligraphers.

However, Jean Philippe Jacopin, general manager of Shangri-La Hotel, Xian cautioned against over-reliance on Xi’an’s heritage to lure travellers. He said: “These tourists usually stay for only a few days and they rarely return. Xi’an needs to cooperate with other (attractions) to improve product diversity which will then entice travellers to book longer stays (and return).”

Jacopin suggested that more eco tours, spa experiences and golf games should be promoted to enhance travellers’ experience, and urged trade players to join forces in destination marketing.

The good news is that fresh products are emerging in and around Xi’an. One of Singapore’s leading outbound agencies, Dynasty Travel, has observed stronger interest in Xi’an over the last five years due to new attractions such as the Tang Dynasty Music and Dance Show at the Shaanxi Song and Dance Theatre, and natural wonders like Hukou Waterfall and Mount Hua.

The sleepy district of Lintong, about 50 minutes by car from Xi’an, is also stirring with recent tourism developments including the year-old Angsana Xi’an Lintong and its adjoining Angsana Hot Spring Xi’an Lintong, art museums, a park and an outlet mall for big fashion labels.

Jerry Mong, Angsana Xi’an Lintong’s general manager, believes that his property is key to advancing Xi’an’s luxury appeal.

He said: “We are changing travellers’ mindsets by reminding them that Lintong used to be a favourite retreat of Tang Emperor Xuanzong and his consort Yang Gui Fei. They used to luxuriate in Lintong’s hot springs, and we are offering travellers the chance to do the same at our hotel.”

Angsana Xi’an Lintong has been attracting ladies of leisure from other Chinese cities and Taiwan, who would come as a group of friends for spa retreats.

Meanwhile, tourism players have agreed that air access improvement is top priority for Xi’an.

“Xi’an has fewer direct international flights compared with first-tier cities, which makes it less convenient for international travellers to visit,” said Wang.

While Dynasty Travel has seen a two-fold increase in bookings to Xi’an from 2014 to 2015, thanks to new flights by Tigerair (Singapore-Xi’an, launched in May 2014) and Xiamen Air (Singapore-Hangzhou-Xi’an, launched in March 2015), its spokesperson Alicia Seah noted that they were for package tours.

“New LCC links have little impact on luxury demand. High-end travellers prefer flying by full-service carriers even if it requires a transit in another city,” she said.

This article was first published in TTG Asia, February 8, 2016 issue, on page 15. To read more, please view our digital edition or click here to subscribe.

Van Paasschen resigns as Starwood’s CEO

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STARWOOD Hotels & Resorts Worldwide president and CEO Frits van Paasschen has resigned following a “mutual agreement” with the board of directors.

Adam Aron, a Starwood director since 2006, has been appointed as interim CEO until a permanent replacement is found.

Meanwhile, van Paasschen will continue with Starwood as a consultant to assist in the transition.

Aron has been a senior operating partner at Apollo Management and CEO of World Leisure Partners since 2006. He had also served as CEO of the Philadelphia 76ers, chairman and CEO of Vail Resorts, and president and CEO of Norwegian Cruise Line. Earlier in his career, Aron was senior vice president of marketing for United Airlines and for Hyatt Hotels Corporation.

Melbourne’s hotels are Asia-Pacific’s most expensive

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AUSTRALIAN cities are leading the Asia-Pacific in room rates, with Melbourne and Sydney taking tops in a ranking of hotel rates around the region.

According to the HRS Annual Hotel Price Radar 2014 released last Sunday, Melbourne was the most expensive city to travel to. Hotel rates averaged at S$289.20 (US$213.33) per night, a 31.4 per cent spike year-on-year.

The sharp increase in rates can be attributed to the city’s flourishing MICE sector and the Australian government’s initiative to position Melbourne as the events capital of the world.

Sydney followed in second place at S$256.20, while Singapore and Hong Kong remained strong at the third and fourth positions at S$235.80 and S$223.20 respectively.

Hong Kong remained one of the top-listers despite civil unrest last year, owing to its already established position as a financial and business hub in Asia-Pacific.

Unsurprisingly, Bangkok took last place at 13th spot at S$91.20 per night, a 10.7 per cent fall in rates as compared to 2013, due to political strife.

Notable also was that Seoul experienced the largest fall in room rate at 17.1 per cent.

Asian Development Bank backs tourism infrastructure upgrade in Laos

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LAOS will embark on a series of infrastructure upgrades in four provinces along the Greater Mekong Subregion corridors, backed by the Asian Development Bank (ADB) in its third tourism project in the country.

ADB has loaned US$40 million to the Lao government, which will contribute US$3.6 million on its own to the project.

Construction works in the four provinces of Champasak, Khammouane, Luang Prabang and Oudomxay will include road improvements and other tourism infrastructure upgrades, and will take place between 2015 and 2019.

Under the project, US$13.8 million has been earmarked to improve access to and site management of Chom-Ong Cave in Oudomxay; US$3 million will go towards upgrading the Mekong River Ferry Terminal in the Chomphet Heritage District of Luang Prabang and creating an information centre there; US$7.3 million for upgrading the 10km access road to Pak-Ou Village and its popular caves in Luang Prabang; Xang Cave in Khammouane province will receive an access road and bridge and more tourist facilities at a total cost of US$2.5 million.

The strengthening of tourism infrastructure is likely to boost the destination management organisation (DMO) thrust of the project, which aims to help establish provincial and national level DMOs to execute coordinated marketing and promotional strategies for activities and events.

Such DMOs will draw participation from government ministries as well as business associations and development agencies.

Laos’ vice minister of information, culture and tourism, Chaleune Warinthrasak, said the establishment of DMOs would “foster closer cooperation among the public and private sectors and international development partners to develop Laos as a well-known tourist destination”.

Philippines plunges deeper into regional dive market with new expo

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THE Philippines is the newest venue for the China-Hong Kong dive show franchise, DRT Show, strengthening the country’s hold on the China and East Asian shorthaul dive market.

DRT Show Philippines 2015, also called the Philippines Dive Expo, will take place from September 11-13 at SMX Manila, with a B2B component to attract international tour operators and dive training agencies, said Rowena Sorioso, senior tourism operations officer, dive market development group, Department of Tourism (DoT).

Eighty per cent of the 500,000 divers certified in the past three years come from China, Sorioso pointed out, adding that the Philippines also aims to strengthen its presence in the “rich shorthaul markets” of South Korea, Hong Kong and Japan.

Because of its relative affordability, the Philippines is an attractive diving destination for medium and advanced level divers seeking additional certification, say dive experts. The Chinese have also invested in dive facilities in Bohol.

The DoT has long sought to leverage diving as a key niche and in 4Q2014, organising a fam trip for Russian operators to visit Cebu and Bohol to woo Russian luxury divers.

Meanwhile, the Philippines Commission of Sports Scuba Diving, an attached agency of the DoT, has been refining accreditation procedures for local dive operators and installing additional hyperbaric chambers across key locations last year to enhance safety standards.