MH370 disappearance declared an accident by MAS

January 30, 2015

MORE than 10 months since the ill-fated incident took place, Malaysia Airlines (MAS) yesterday officially declared the disappearance of flight MH370 an accident with no survivors.

The announcement will clear the way for MAS to proceed with the compensation process to the appointed next-of-kin of all MH370 passengers.

“We officially declare Malaysia Airlines flight MH370 an accident in accordance with the Standards of Annexes 12 and 13 to the Chicago Convention and that all 239 of the passengers and crew onboard MH370 are presumed to have lost their lives,” said Department of Civil Aviation Malaysia, director-general, Azharuddin Abdul Rahman, in a media statement.

“We have endeavoured and pursued every credible lead and reviewed all available data. Despite all these efforts over the last 327 days (as of January 28, 2015), the search unfortunately has yet to yield the location of the missing aircraft.”

On March 8, 2014, the Beijing-bound aircraft disappeared shortly after taking off from Kuala Lumpur. A majority of the passengers were Chinese.

Searches in the following months have failed to turn up any trace of the missing plane and the fate of the Boeing 777-2H6ER jet remains unknown.

However, the search for MH370 remains a priority, MAS declared in its media statement.

South African buyers see potential in Myanmar for luxury travel

By Greg Lowe

January 30, 2015

MYANMAR’S relative novelty in the South African market is providing luxury travel buyers an opportunity to gain first-mover status in selling the South-east Asian destination to more adventurous travellers.

While South-east Asia remains a popular destination for South African tourists, especially given its better value when compared with the US, Myanmar remains off the radar for many consumers.

The lack of promotion of Myanmar in South Africa presents both challenges and opportunities, Shona Pittaway, managing director of Perfect Destinations told TTG Asia e-Daily at the recent ASEAN Tourism Forum.

“We want to add Myanmar as a destination,” she said. “The main challenge is it is not marketed in South Africa, but that gives us an opportunity. We will be one of the first agencies to offer Myanmar there.

“A lot of effort will be needed to educate the market and inform people about Myanmar being a safe place to travel. Currently, Myanmar is definitely for the more experienced traveller.”

The Tourism Authority of Thailand is currently the only NTO from South-east Asia to market itself in South Africa, said Pittaway.

Having successfully built brisk trade with Thailand, Trade Global Marketing Tours is keen to expand into Myanmar. Said CEO, Ayo Oyeneyin: “(Myanmar) is a new market and we are trying to venture into it.

“I foresee good opportunities in Myanmar in the future and think it can be developed into a stand-alone destination (for the South African market).”

Louvre Hotels Group to bring budget brands to India

By Rohit Kaul

January 30, 2015

LOUVRE Hotels Group (LHG) is looking to introduce two new budget brands, Premiere Classe and Campanile, in India this year.

“We will be opening Premiere Classe and Campanile hotels in Tier Two and Tier Three cities and none of these properties will be opened in metro cities. We are in talks with a few hotel owners for management contracts and we expect to finalise some deals soon. We are expecting to open four to five budget hotels by this year-end,” said Shashi Razdan, director of sales & marketing – South Asia, LHG.

LHG, which currently has 16 properties operating in India under the Royal Tulip, Golden Tulip and Tulip Inn brands, did not reveal the cities the new properties will be launched in.

Also in the group’s expansion pipeline in India are Golden Tulip Vasundhara, Golden Tulip Neemrana and Royal Tulip Luxury Resort Kufri – Shimla, which will open by April this year.

Meanwhile, LHG is also foraying into its second South Asian market after India with the debut of Royal Tulip Luxury Resort Cox Bazaar in Bangladesh in April.

Razdan said: “We are looking to position ourselves among the leading hotel chains in the country with these new launches. The company is aggressively expanding in the next few years across South Asia thereby increasing its market share and establishing itself as a leading hospitality chain in the region.”

“We are also considering entering other Asian markets like Nepal, Maldives and Indonesia.”

Philippines boosts marketing in India to reverse fortunes

By Rohit Kaul

January 30, 2015

AFTER witnessing a decline in visitor numbers from India in 2014, the Philippine Department of Tourism (DoT) will step up marketing efforts in the India this year to arrest the arrivals slide.

The Philippines recorded 60,000 Indian arrivals last year, down from about 100,000 in 2013, with typhoon Haiyan that hit the country in November 2013 cited as one of the reasons for the dip.

In what it hopes to be a game-changing measure, the DoT has proposed to the Philippine government to waive visa requirements for Indian nationals holding a valid visa to the US, Japan, Australia, Canada, Schengen states and Singapore.

“This proposal will be decided by 1Q and is currently being evaluated by the national government. If given a go-ahead, the scheme will be valid for two years,” said DoT secretary, Ramon Jimenez Jr.

The DoT has doubled its marketing budget for the Indian market for 2015. “We are going to invest in the Indian market in a way we have never done in the past. We will be more active from a marketing and communication point in India. Our focus is on cities that include New Delhi, Mumbai and Hyderabad,” Jimenez added, without disclosing the exact figures.

The NTO is also working towards establishing direct connectivity between both countries. “We expect to hold discussions with India’s national carrier Air India soon,” Jimenez revealed.

Later this year, the DoT will organise a mega fam trip, its biggest ever in India, for around 100 participants including travel consultants and media personnel.

The Philippines is targeting 150,000 Indian tourist arrivals in 2015.

Fate of Japan’s Skymark Airlines up in the air as debt drags it down

By Julian Ryall

January 30, 2015

JAPAN’S third-largest carrier, Skymark Airlines, has filed for court protection from its creditors with estimated liabilities of 71.1 billion yen (US$603 million).

Analysts believe, however, that the airline will receive the support of the nation’s two largest carriers, Japan Airlines (JAL) and All Nippon Airways (ANA), as well as the backing of the Japanese government to remain flying for the immediate future.

Part of that support will be in the form of codeshare arrangements with JAL and ANA on the 27 domestic routes that Skymark presently operates in Japan.

The agreements suggest that there will be no major disruptions for the travel industry and it is possible that Skymark will be able to successfully complete its restructuring efforts and rebuild its business.

“They are safe for the time being, but we will have to see what their customers do as there are some who may be wary of a company that is in bankruptcy protection,” Geoffrey Tudor, an analyst for Japan Aviation Management Research, told TTG Asia e-Daily.

“But we must remember that JAL was in the same situation a few years ago and is in very good shape again today,” he said. “Skymark could very well achieve the same outcome.”

A pioneer of LCCs in Japan when it commenced operations in September 1988, initially as part of a consortium headed by the HIS travel agency, Skymark incurred considerable losses in its early years.

A new management team, under CEO and majority shareholder Shinichi Nishikubo, saw the company into the black in 2003 and there were ambitious expansion plans for new longhaul routes, including to New York and London, with a US$2 billion fleet of six Airbus A380 aircraft.

The airline began to experience problems due to the soaring cost of aviation fuel and the falling value of the yen. Skymark is also in dispute with Airbus over the purchase of the new aircraft, with the France-based aircraft manufacturer filing a lawsuit in December over unpaid deposits.

Japan lures repeat visitors beyond ‘golden route’

By Julian Ryall

January 30, 2015

AS Japan attracted a record 13.4 million foreign travellers in 2014, up an impressive 30 per cent from the previous year, return visitors are increasingly showing a preference for new experiences outside the traditional destinations of Tokyo, Osaka and Kyoto – a trend the Japanese travel trade is keen to encourage.

“First-time visitors still tend to go to the major tourist spots, but we are finding that more and more people want to go to rural areas and to see and experience unique things,” said Yoko Ogata, international travel division head of Nippon Travel Agency.

“Our clients from other parts of East Asia like to take short weekend trips to Hokkaido or Kyushu,” she added. “But repeat visitors want to go to different places, such as Takayama, Kanazawa, Miyajima or Beppu.”

Ogata believes that travellers’ focus has, until now, been on the major famous destinations but as Japan becomes more accessible, affordable and easy to navigate, demand for more off-the-beaten-track places will increase.

At present, more than 60 per cent of visitors take the “golden route” that links Tokyo, Kyoto and Osaka. That can put excessive pressure on hotels and transport, with some potential visitors cancelling their plans due to a shortage of accommodation.

The Japan Tourism Agency is drawing up plans to help local authorities create tourist routes in relatively unexploited parts of the country to attract repeat visitors.

The national government is putting aside 500 million yen (US$4.2 million) to promote alternative destinations as it works towards its target of 20 million visitors in 2020.

Taiwan accounted for the largest proportion of visitors with 2.8 million arrivals in 2014, an increase of 28 per cent from 2013. Some 2.8 million South Koreans paid Japan a visit, up 12 per cent, while the number of Chinese arrivals soared 83 per cent to 2.4 million.

Seven out of the top 10 nationalities who visited Japan last year were from Asia, with Thailand sixth on the list and Malaysia eighth. Similarly, the number of visitors from the Philippines, Indonesia and Vietnam all hit record highs.

Sydney bags Nu Skin mega incentive

By TTG Asia

January 29, 2015

DIRECT selling company Nu Skin has confirmed Sydney for its 2016 incentive, which is expected to inject A$50 million (US$39.3 million) into the New South Wales (NSW) economy, making it one of the largest incentive wins to hit Australian shores.

“It’s a milestone in the making,” said Lyn Lewis-Smith, CEO of Business Events Sydney’s (BESydney). “Sydney shines as a strategically important destination for Asian corporates looking to reward, motivate and inspire their top sales people. The city is a firm favourite for Asian companies, and this win is testament to this.”

The incentive will see Nu Skin’s qualifying sales people travel to Sydney for an exceptional five-day programme in April 2016. Delegates are expected to travel from China, Taiwan, Hong Kong and Macau.

The Nu Skin Greater China Success Trip bid involved the commitment and collaborative efforts of ‘Team Australia’ – BESydney, Destination NSW, Tourism Australia, Sydney Harbour Foreshore Authority and Sydney Airport Corporation worked together to secure this substantial piece of business.

Destination NSW’s CEO Sandra Chipchase said China was the number one inbound market for NSW and supporting BESydney’s efforts to win incentive groups from China was a central platform of Destination NSW’s China Tourism strategy.

“The NSW government aims to double overnight visitor expenditure by 2020 and events such as Nu Skin are central to delivering that result. Destination NSW was delighted to make a major commitment to Sydney’s bid to secure this record-breaking event for NSW.”

Tourism Australian managing director, John O’Sullivan, said: “Our team in China regularly supports bids such as the Nu Skin Greater China Incentive Programme 2016. Australia’s credentials for hosting large-scale events such as this are strong – and the fact that Nu Skin has chosen Australia for their upcoming event adds to this reputation. We look forward to continuing our partnership with BESydney to support this important incentive programme.”

“The business events we secure for Australia are major drivers of both the visitor and knowledge economies, and a magnet for global talent,” said Lewis-Smith. “We bid competitively to secure international conferences and meetings that bring the world’s best and brightest to Sydney to connect, collaborate and innovate.

“We currently have a number of Asian events worth a total A$87.3 million secured for Sydney and NSW from now until 2016,” she added.

In the last three years, 91 events from Asia have been held in NSW, contributing A$164.5 million to the economy. Last financial year, events delivered from Asia accounted for 40 per cent of BESydney’s overall number of events. Of these, one third was from China.

Building an epic journey through Switzerland

By Paige Lee Pei Qi

January 29, 2015

From new online agency training programmes to competitive commission rates, longhaul destinations are roping in the trade in their battle for Asian travellers. Paige Lee Pei Qi finds out

Switzerland is getting ready to unveil its Grand Tour this April, a concept that highlights features of the country via various means of transportation, including the use of both public and private transportation, to court travellers seeking more immersive experiences.

According to Ivan Breiter, Switzerland Tourism’s director of South-east Asia, this new FIT-oriented tour will draw more traffic from Thailand, Indonesia and Malaysia.

While Singapore is currently the top South-east Asian source market for Switzerland with 150,000 hotel overnights in 2013, Breiter said there is a lot of “untapped potential” in the emerging markets of Thailand, Indonesia and Malaysia.

Although group tours dominate visitor arrivals from South-east Asia, Breiter sees the FIT segment as a growing market as more individual travellers go in search of unique experiences.

He said: “It is very common for Singaporeans to travel FIT but this is not so popular among the other travellers in South-east Asia. But with the Grand Tour, travellers will find it easier to customise their own itineraries and visit Switzerland on their own.”

The new programme promotes deeper and more immersive FIT travel through its Grand Tour route, which connects 44 highlights in one journey. Fifteen of the highlights are nature attractions; 10 are traditional/historical; eight are art, culture and architecture; 11 are boutique towns; and 12 are UNESCO World Heritage Sites.

Covering 1,600km, the whole route is designed to make it convenient for travel sellers to promote self-drive or train journeys, not just through the entire tour but segments of it that fit clients’ duration of stay or specific interest. Routes can be tailored to suit preferences.

Expecting this new Grand Tour to bump up hotel overnights from South-east Asia by at least 15 per cent, Breiter said: “Travellers will find themselves spending more than just one day in the country. They will get to explore the country in a much more in-depth manner and they may even spend up to four nights.

“This will appeal especially to repeat Asian travellers because they will be seeking a deeper experience other than the usual hotspots like Interlaken and Lucerne,” he elaborated.

To engage the trade to promote this grand tour, Breiter said apart from presenting this concept during trade fairs, the NTO is also arranging fam trips to better accquaint them with this concept.

He said: “We want to make this dream destination become a reality to many travellers, especially those in the growing South-east Asian markets who are more familiar with our country through the media rather than experiencing it themselves.”

This article was first published in TTG Asia, January 16, 2015 issue, on page 15. To read more, please view our digital edition or click here to subscribe.

The great outdoors

By Gracia Chiang

January 29, 2015

From new online agency training programmes to competitive commission rates, longhaul destinations are roping in the trade in their battle for Asian travellers. Gracia Chiang and Hannah Koh find out

Brand USA will intensify its focus on South-east Asian markets this year, with a new travel agency training platform being the linchpin of its efforts. Already launched in markets like the UK and India, the USA Discovery Program will be rolled out in Singapore, Malaysia, Indonesia, the Philippines and Thailand in 2015.

“One of the biggest challenges within the region is currently the lack of education and awareness,” said Brand USA vice president, global market development, Jay Gray.

To address this, the interactive online course has six specialist experience modules – Big City Buzz, Great Outdoors, Culture & Heritage, Winter Sports, Coastal Escapes and Fly-Drive – plus the Regional Expert Badge, which users must attain initially after passing five tests. Further modules such as Food & Drink as well as Family will be added in the coming months.

“We’ll use this as a way to identify travel agencies that will participate in our mega fam,” said Gray, who shared that Brand USA had not conducted any fams for South-east Asia yet. In contrast, North Asia has some 10-12 fams a year.

Added Gray: “After doing focus groups with consumers in various markets, we also discovered that there is a broad interest in outdoor activities.”

As a result, the marketing body will spotlight the country’s national parks in 2015, which coincides with the centennial anniversary of the National Park Service. A high-definition feature film will be released in IMAX and giant-screen theatres in mid-2015, teasing South-east Asian audiences with the US’ more than 400 natural assets.

Brand USA will work with the trade on “sweepstakes, special promotions and coming up with great packages”, Gray elaborated.

Appealing to the universal love for food, Brand USA also introduced at ITB Asia 2014 a culinary guide, showcasing diverse American offerings through the menus of 31 chefs. Calling this a 1.0 version, Gray said the next iteration would probably include suggested itineraries.

While getting visas is often cited as a problem among Asian travel consultants, Gray, said that it was often a case of “perception versus reality”.

“We just came from China and guess what’s the acceptance rate for Chinese visitors that apply for a visa? It’s over 90 per cent. That’s a statistic that we would like to go out and talk about,” he quipped.

Within Asia, Singapore, Japan, South Korea, Taiwan and Brunei can avail of the US’ visa waiver programme. Last November, the US and China reached a landmark agreement that will grant travellers in both countries 10-year multiple-entry visas, instead of the one-year validity previously.

The new visa development could have a multiplier effect on Brand USA’s existing plans to make the US a top-of-mind destination for the Chinese, including the fully localised version of an online training programme for travel consultants (to be launched in May 2015), mega fam trips and advertising.

The NTO expects China to overtake the UK as the top overseas source market by 2018, Gray added.

Highlighting another disparity between perception and reality was also Las Vegas Convention and Visitors Authority spokesperson, Jesse Davis, who called it an “identity crisis” in this part of the world.

“The majority of people we speak to have a dated perception of Las Vegas…but 10 years ago, our non-gaming revenue exceeded gaming revenue, and it’s about 60-40 now. There’s been an evolution of the destination,” he said, adding that there are now 66 celebrity chef restaurants.

In addition, Davis revealed that in the last few years, a dedicated airline development team had been established to actively build more capacity into Las Vegas.

Also on the area of access, San Francisco Travel Association, executive vice president, tourism, Tom Kiely, shared that flights from China into the city have grown, offering more transit options for South-east Asian passengers. In June 2014, United Airlines launched a service to Chengdu, while China Southern Airlines commenced a service from Guangzhou via Wuhan last December.

Brand USA’s Gray added that there is a “strong consideration for new routes (this) year” by Asian and US carriers but he was not at liberty to give more details.

Aspen’s snow, sun to lure skiiers from Asia

While the US may not be the first destination Asians associate with skiing, Aspen Skiing Company wants to change that, showing up for the first time at ITB Asia 2014 and ready to offer higher-than-usual commissions to travel agencies in Asia.

Based in western Colorado and the second largest ski area in the state after Vail, the resort complex of Aspen Snowmass has four mountains, each popular with different segments: families, beginners, dining and nightlife lovers, and locals who want a backcountry experience. The closest international airport is in Denver, while the town of Aspen has a domestic airport.

“People have this romantic notion of Europe, and they think of Switzerland for skiing, but I don’t understand why. I think it’s just branding,” said sales and marketing manager, Sonia Bekhaazi, who highlighted that the resort’s USPs are its powder-like snow, more than 300 days of sunshine and blue skies, and history as a real town with culture, having been part of the silver mining boom.

Drawing a comparison to Canada’s popular Whistler, Bekhaazi said the resort town could be “quite cold and wet”, while space is another advantage of Aspen. “In some other places, you wait in ski lines for 40 minutes. But it is never more than five minutes here. It is not cramped at all,” she explained.

Although Aspen attracts millions of visitors a year, less than five per cent of them are Asian. The largest international market is currently Australia.

The company has started engaging travel agencies and tour operators in Chinese cities such as Beijing, Shanghai and Guangzhou, while also offering fam tours. Hong Kong, Japan and Singapore are also markets Aspen Skiing Company wants to target.

Shared Bekhaazi: “We normally give tour operators 20 per cent commission and travel agencies 10 per cent, but since Asia is a new market, we’re willing to pay 20 per cent to travel agencies here too. We want to be more aggressive.”

Winter is from late November to mid-April, with the first few weeks of the season being off-peak, when hotels are half the price and specials on lift tickets can be enjoyed, pointed out Bekhaazi. During summer (late May to mid-September), visitors also come for Aspen’s myriad festivals from music to sports, as well as adventure activities such as hiking, biking and hot air ballooning.

A five-day package, including lift tickets, equipment rentals and lodging, in January roughly starts from US$1,192 per person, based on double occupancy. – Gracia Chiang

This article was first published in TTG Asia, January 16, 2015 issue, on page 14. To read more, please view our digital edition or click here to subscribe.

Additional reporting from Gracia Chiang

BA’s Malaysia comeback a boost to inbound business

By S Puvaneswary

January 29, 2015

HAVING suspended flights in 2001 as global travel slowed following the 9/11 incident, British Airways (BA) will resume direct daily flights from London to Kuala Lumpur from May 27 this year.

Operating the service on a B777-200ER, BA will increase capacity by 219 seats on a route currently monopolised by Malaysia Airlines (MAS), which flies twice daily on the London-Kuala Lumpur route using an Airbus A380 with 500 seats.

Saif-ul Haque, CEO of London-based Halcyon Collections, said the BA brand has mileage and will create interest in the destination with marketing and PR efforts to re-establish the route.

He added: “Certain high-end clients of mine are BA fans; they believe in its service, so its re-entry will help prop up business.”

On the other hand, David Carlaw, head of faraway product at Premier Holidays UK, opined that it will be advantageous if BA has codeshare agreements with other airlines for add-ons to other destinations like Penang, Langkawi, Singapore and Thailand, as customers also want to travel beyond Kuala Lumpur.

Malaysia’s inbound travel operators are also upbeat about BA’s return. Arokia Das, senior manager at Luxury Tours Malaysia, said: “Extra capacity and competition on this route will reduce air fares, which is good for the traveller. Traditionally, the UK has been the top inbound European market to Malaysia, and extra capacity gives room for growth for both inbound and outbound travel.

“We plan to strengthen our presence in the UK by setting up a sales office in London in 2H2015 to cover both UK and Germany.”

Diethelm Malaysia managing director, Manfred Kurz, said additional capacity on this direct route will also allow MICE organisers from the UK to bring in bigger groups.

“The weakened ringgit has also made the destination more affordable; we will talk to our partners in the UK to look at new promotions we can do together to further promote Malaysia.”

Likewise, Adam Kamal, CEO, Rakyat Travel, revealed that the company will start looking at opportunities to get a share of the MICE business from the UK and Europe by participating in IMEX and EIBTM.