INTERNATIONAL tourism hit a new record end-2014 with over 1.1 billion international tourists in a single year, according to the latest UNWTO World Tourism Barometer.

From January to October 2014, the number of overnight international tourists grew about five per cent, reaching 978 million – 45 million more than in the same period of 2013 – and well above the long-term trend projected by UNWTO for the period 2010-2020 (3.8 per cent).

As such, 2014 is set to post a record number of over 1.1 million international tourists.

By region, the strongest growth was registered in the Americas (eight per cent), followed by Asia-Pacific (five per cent) and Europe (four per cent).

By subregion, North America (nine per cent) and South Asia (eight per cent, led by India at seven per cent) were the star performers, as well as Southern and Mediterranean Europe, North-East Asia and Northern Europe (all seven per cent).

Said UNWTO secretary-general, Taleb Rifai: “These are remarkable results considering that different parts of the world continue to face significant geopolitical and health challenges, while the global economic recovery remains rather fragile and uneven.

“More importantly, we see a growing political commitment to the tourism sector in many countries. This is encouraging, not in the least because tourism is one of the sectors that is best able to deliver on employment at a moment when job creation needs to be a priority to all.”

UNWTO will release the preliminary 2014 full-year results by January 27.

THE Indonesia Ministry of Transportation has retracted its decision to freeze TransNusa Air Services and Garuda Indonesia, two of five operators sanctioned last week for flying without route permits.

Ignasius Jonan, minister of transportation had last Friday announced the termination of 61 flights operated by Garuda Indonesia, Lion Air, Wings Air, TransNusa Air Services and Susi Air for the breach.

Jonan revealed: “Garuda (has) four (affected flights), Lion Air 35, Wings Air 18, TransNusa one, and Susi Air three.”

He added that sanctions have also been applied to officials involved in the violation.

In response, Bayu Sutanto, managing director, TransNusa, issued a statement to clarify that the airline has a full seven-day service between Denpasar and Labuan Bajo under two permits issued on September 10 and October 6, 2014 respectively.

“With the valid route permit issued by the civil aviation authority, TransNusa has the right to fly daily, therefore, the accusation that TransNusa flights are operated on different days than what is stated in the route permit is nonsense…the audit process was not done thoroughly and carefully,” he said in the statement, adding that this would impact the airline’s reputation.

“We expect the Ministry of Transportation to be brave to make corrections on its inaccurate decision or announcement made (earlier),” he said.

Garuda Indonesia also issued a statement that the affected route is Makassar-Jeddah via Medan and its return flight.

Garuda’s vice president for corporate communications, Pujobroto, said: “We do have the route permits on the domestic and international sectors, but the flights used two different flight numbers for Makassar-Medan (GA626) and Medan-Makassar (GA986).

“Garuda has submitted a revision to change to use one flight number GA988 (on the outbound flight) and 987 (on the inbound) effective January 1.”

However, the aviation authority found the airline still operating with two flight numbers.

Julius Barata, spokesperson of the Ministry of Transportation was quoted by Tempo.com as having confirmed that TransNusa’s clarification has been investigated by the Flight Route Operation Audit and Evaluation Team and that the airline’s operation is legitimate.

He added that Garuda has finalised its permit and corrected its flight number.

Meanwhile, in their respective statements Lion Air Group and Susi Air have said they would study the said violated flights and would reapply for the permits accordingly.

Jonan had also said that flight slots and route permits would be tracked through an online system expected to start running this month. “An online system will eliminate direct interactions between the aviation regulation authority and the airline operators,” he said.

The Ministry of Transport’s crack down on airlines running foul of aviation regulations comes in the wake of Indonesia AirAsia’s QZ8501 which had disappeared in bad weather on December 28 with some 162 people on board. It was found that the carrier did not have a permit to fly the Surabaya-Singapore route.

Meanwhile, the BBC has reported that Indonesian divers have retrieved the flight data recorder of the ill-fated plane. The cockpit voice recorder, the second part of the black box, has also been identified but not retrieved as yet.

FRASERS Hospitality is eyeing a bigger share of the China market with the addition of 10 more serviced residences in the second-tier cities of Tianjin, Nanchang, Hefei, Dalian, Kunming, Wuxi and Chengdu, and two more in the key cities of Shanghai and Shenzhen.

Following the openings of Modena Zhuankou Wuhan and Modena New District Wuxi last year, the securing of these new serviced residences involve the addition of more than 2,400 new apartment units, almost doubling Frasers’ China portfolio to 26 properties in 14 key cities and second-tier cities.

This makes China one of the fastest-growing markets for Frasers Hospitality, which together with South Korea and Japan, currently make up one-third of its total revenue.

Choe Peng Sum, CEO, Frasers Hospitality, said: “China’s second- and third-tier cities are key growth areas for us and we will continue to extend our footprint in burgeoning cities where foreign direct investment and tourism are expected to increase exponentially in the coming years.

“Demand for our serviced residences has remained strong, with consistent occupancy of at least 80 per cent since we first set foot in 2005 with Fraser Place Shekou Shenzhen, and economic conditions are ripe for the ambitious doubling of Frasers Hospitality’s footprint over the next five years.”

Frasers’ new additions in China will be across all of its three brands: Gold Standard serviced residences, Modena by Fraser serviced residences, and Capri by Fraser hotel residences.

HOMEGROWN Tala Mon Company has been awarded a contract by the local government to develop a museum, hotel, park and other tourist facilities at the Death Railway site in Thanbyuzayat township in Mon state.

Min Banyar San, chairman, Tala Mon Company, told TTG Asia e-Daily that the work is expected to begin within the next month.

“We are looking to invest about US$3 million in the project and it will be carried out in three phases. Phase 1 will be the construction of the museum, Phase 2 will be for the hotel and Phase 3 will be for other tourist sites,” he added.

The Death Railway, also known as the Burma Railway, was a 415km railway that formed part of the Bangkok-Rangoon (now Yangon) railroad during World War Two.

Forced labour was used for its construction, and it is estimated that about half of the 300,000 Allied prisoners-of-war working on the railroad died.

“The Death Railway site in Mon State currently attracts a minimal number of tourists,” said Marcus Allender, Founder of Go-Myanmar.com. “As the Allied War Memorial cemetery is close to the Death Railway site, there is a clear opportunity to develop this area in a similar manner to what has been done at the other end, at Kanchanaburi.”

Thai authorities authorities have constructed a memorial and museums to commemorate the railway and its workers in Kanchanaburi.

“Indeed, if the Myanmar perspective on the Death Railway and the war itself is communicated effectively, then the two sites could complement each other perfectly,” Allender added.

WARM and relaxing South-east Asian destinations are preferred by Chinese outbound tourists for the upcoming Spring Festival Golden Week from February 18 to 24.

Outbound travel agencies across China are reportedly busy with reservations since mid-December, with many indicating that island destinations are the most attractive in South-east Asia.

Mao Sairong, assistant manager, Wuxi-based Jiangsu Kanghui Travel Service, told TTG Asia e-Daily: “Bali (and the Maldives) are already sold out, but we still have plenty of Phuket tours to offer, because there are seasonal charter flights between Wuxi and Phuket.”

Bangkok is the leading South-east Asian destination for outbound China travels for Golden Week, according to ForwardKeys’ air reservation database as of January 3, 46 days ahead of the festival.

The Thai capital is also by far the only city among the top five enjoying year-on-year growth (19 per cent) in current bookings, followed by Singapore, Phuket, Bali, and Chiang Mai.

However, Bali is suffering a 24 per cent year-on-year decrease in early-bird bookings, unlike the year before.

“About 35 per cent of arrivals to Bali during 2014’s Chinese New Year Golden Week were booked within 45 days (ahead of the first travelling date), while destinations in Thailand saw way more cancellations than bookings,” said ForwardKeys CEO, Olivier Jager.

A NEW reloadable prepaid card that is accepted by MasterCard merchants worldwide has been launched with the Myanmar traveller in mind.

Developed by 2C2P, a Singapore-based payment services provider, and Myanmar Citizens Bank (MCB), the card comes with an optional smartphone app for both iOS and Android platforms that allow cardholders to manage transactions in real-time and get online support.

The Citizen Card will be limited to 5,000 units and can be obtained at any MCB branch in Myanmar or via the MCB website by filling out an online form.

Cardholders will also enjoy special benefits with merchant partners, in addition to waived sign-up fees. Existing cardholders can add value to their Citizen Card at any MCB outlet, with more top-up options to be released later in the year.

Aung Kyaw Moe, group CEO at 2C2P, said that the Citizen Card will benefit both physical and online shoppers, as well as users who go overseas. Cardholders are entitled to special benefits and privileges at destinations such as Thailand and Singapore.

Myint Win, managing director of MCB, said: “Myanmar is on course to boom over the subsequent years. Within the last two years, the country has seen its first ATM, the first debit card and the first internationally accepted card.”

According to McKinsey & Co, the size of Myanmar’s economy is expected to rise from US$45 billion to over US$200 billion by 2030, with per capita GDP growing from US$1,300 in 2010 to US$$5,100 by 2030.

“Myanmar is slowly moving to embrace cash-alternative solutions. The country is in need of various kinds of payment processing services. I believe 2C2P will find good opportunities here,” said Aung Kyaw Moe.

DEMAND for Egypt is slowly returning in Malaysia after it flatlined due to the issuance of travel advisories early last year urging Malaysians to reschedule non-essential travel to the destination given the prevailing security situation and political uncertainties there.

Poto Travel & Tours group CEO, Abdul Rahman Mohd Ali, said he had three scheduled departures last November and December, which coincided with the Malaysian school holidays, and about 100 bookings for its 10D9N packages covering Cairo, Luxor, Aswan and Alexandria.

Similarly, Cooper Huang, CEO of Malaysian Harmony Tours & Travel, believes demand for Egypt as a holiday destination is returning, based on enquiries received in November and December 2014.

The company plans to start selling Egypt this March with four departures.

Insight Vacations too has relaunched its Egyptian itineraries, with the first of four having departed yesterday with Insight’s global CEO, John Boulding.
Its regional director (Asia) Sheryl Lim said in a press statement the company has been keeping a close eye on the political and social situation in Egypt.

Lim is confident guests will “enjoy the very best of this unique destination with the added safety and security of travelling with a group and a highly experienced local tour director”.

Rahman partly attributed the slow demand to the depreciation of the Malaysian ringgit against the US dollar. He said: “We have planned another two departures in March, but demand is slow and if we do not get at least 20 pax for each scheduled departure, we will cancel it.

“Egypt Tourism should do more marketing and promotions here. Its presence at previous MATTA fairs are small. There should be more exposure of the destination.”

However, Apple Vacations & Conventions, which had also stopped selling tours to Egypt last year, would wait until it is confident the country is safe for Malaysians to visit, according to group managing director Desmond Lee.

PROMOTION efforts in the India market are paying off for the Philippines, which recorded a 15 per cent increase in Indian arrivals between January and October 2014.

The Philippines recorded double-digit growth of close to 50 per cent in Indian arrivals, month-on-month, for August alone.

The Department of Tourism (DoT) has identified the high-end, and wedding and honeymoon segments as targets in India, and has launched online training for Indian travel consultants last year.

Building on those efforts, the DoT is set to participate in SATTE 2015 and launch marketing activities in Tier Two and Three cities in India.

Tourism secretary Ramon R Jimenez Jr is also scheduled to visit India on January 29, with the main agenda of kicking off Visit The Philippines Year 2015 campaign, which features a year-long calendar of events in line with the chosen slogan, and meet with industry partners.

THE Ministry of Transportation has set the minimum price for airfares by Indonesian airlines at 40 per cent the cost of the highest priced ticket, a move likely to negatively impact travel business, say Indonesian travel agencies.

The rule was signed into immediate effect on December 30, 2014 and announced just after Indonesia AirAsia’s ill-fated flight QZ8501 accident.

This has stirred speculation that the government believes in a co-relation between fare price and safety compliance, which Muhammad Alwi, director of air transportation, Ministry of Transportation, has refuted.

He said that the increase of the floor price was due to escalating airline operational costs from the devaluation of the rupiah against the US dollar. “The Ministry has planned the revised regulation since October, (so) it has nothing to do with the recent accident,” he said, adding that it was done to help airlines maintain safety measures even in the face of rising operation costs.

The Indonesian travel trade expects the increment to affect LCCs the most. Edwin Himna, chairman of the Association of the Indonesian Tourist and Travel Agencies (ASITA) Jogjakarta Chapter, said: “Those who will need to travel will travel anyway, but it will be difficult to achieve the target growth of international and domestic travel set by the national government in the next five years.”

Currently, Edwin said, the cheapest fare during low season could be as much as 70 per cent below the ceiling price.

Rudiana, director of sales and marketing, WITA Tour, was pessimistic. “I have not seen any country setting lowest airline price but Indonesia. As a travel company, we do not benefit from LCCs as they distribute through their own website or OTAs.”

Rudiana predicts that travellers’ buying power would drop as a result of the regulation and in turn, passenger numbers.

TRAVELPORT today announced its acquisition of a majority stake in German tour operator distribution company travel-IT, significantly increasing the company’s presence and reach in the German leisure travel industry.

Travelport’s participation in the equity of travel-IT was part of a wider transaction which also saw some leading German tour operators invest alongside.

Juergen Witte, Travelport’s managing director in Germany and Switzerland and managing director of travel-IT commented: “This is an exciting investment for Travelport. It will allow us to offer a full range of product and content for the largest economy in Europe, to both traditional and online retail travel agencies, supported by several of the leading tour operators in Germany.

“travel-IT offers some significant innovations to both travel agencies and tour operators which make the distribution and sale of leisure travel products better than older incumbent offerings.”

Gordon Wilson, president and CEO of Travelport, added: “This latest tuck-in investment in travel-IT for Germany is consistent with our strategy to address the previously unmet needs of our customers and to redefine travel commerce using newer and better technology to enable unrivalled access to travel content through empowered selling systems.”

Said Michael Kalt, CEO of travel-IT: “Travelport’s investment marks a new milestone for our company and will increase revenue and growth for travel-IT and its partners. We plan to shake up the leisure sector and bring increased choice, flexibility and efficiency to tour operators, travel agencies and consumers.”