WHILE travel companies in Thailand, Vietnam and Indonesia have been severely affected by the recent collapse in Russian tourism, some are already countering the shortfall with alternatives in place.

Attanai Loychusak, director of sales at Peach Group Hotels & Resorts, which operates three hotels on Phuket in worst-hit Thailand, said: “About 50 per cent of our trade is from Russia, so we’ve seen a big effect.” He added that while Chinese operators are able to take up the slack, Peach has targeted its promotions on higher-value Scandinavian markets.

“We’ve been working closely with charter operators (dealing with Scandinavia), so if they had empty seats on their flights we could run a promotion. That means we were hurt, but have not been killed.”

Go Vacation Indonesia, which has been handling the Russian market for the past few years, has suffered a drop of 85 per cent since the rouble collapsed in December. Its executive manager for product and contracting, Marika Gloeckler, said: “The FITs taking regular flights are still coming, but not the (groups arriving on) chartered flights.”

While German-speaking markets make up the bulk of Go Vacation’s business, Gloeckler said the company is looking to China to fill the gap.

Over in Malaysia, Gordon Yapp, deputy general manager, Sabah Tourism Board, said while Russians “may choose to downgrade their accommodation (to reduce costs)”, he remains confident that business from the country would continue to grow. The NTO will lead a delegation of inbound players from the state on a sales mission to Vladivostok, Sakhalin and Khabarovsk this March. It will also continue to work closely with charter companies.

Similarly, travel businesses in Vietnam are looking for other markets. Anton Walter Jurgens, general manager, Exo Travel Vietnam, said: “Exo does not target this market, and as such we feel it much less. However, there is always a knock-on effect from situations like this and some services have dropped rates to attract business.”

The collapse of the Russian rouble has caused more than 20 travel agencies in Russia to fold.

THREE multilateral agreements have been developed for ASEAN Open Skies and further goals being considered for the long-term, according to Win Swe Tun, director general, Department of Civil Aviation, Myanmar.

He was speaking at the ASEAN Tourism Conference yesterday on an overview and update of the ASEAN Single Aviation Market (ASAM).

The agreements are ASEAN Multilateral Agreement of the Full Liberalisation of Air Freight Services, ASEAN Multilateral Agreement on Air Services and ASEAN Multilateral Agreement on the Full Liberalisation of Passenger Air Services.

Win Swe Tun said: “ASEAN Open Skies Policy or ASAM will create for airlines more market access rights to expand route networks; more operational flexibilities to deliver services, efficiently and economically, and opportunities to extend business to the other member states.

“For the public, it will mean better services and lower fares through increased competition, and for tourism and trade ASEAN Open Skies is a boost to business.”

He added that intra-ASEAN air travel grew at a compounded annual rate of 13 per cent. “In future, we expect even more growth.”

Meanwhile, ASEAN is working with other regional partners for more air connections. The first meeting of the ASEAN-Japan Working Group on Regional Air Services Arrangements took place last October, and discussions with South Korea for an air services agreement will resume this year.

The regional association also organised the first ASEAN-EU Working Group Meeting last December to work on issues related to setting up a Comprehensive Air Transport Agreement.

Win Swe Tun said Myanmar’s tourism, aviation and maritime sectors must collaborate and align their vision. He added: “This is a chance for investment, involvement and participation of other parties (in Myanmar’s aviation sector)… Regionally or globally, we want to work together to build a new era for Myanmar and future generations.”

ASEAN tourism ministers at their meeting on Monday welcomed Malaysia’s initiative to establish a homegrown English language ASEAN-focused TV travel channel for all member countries to promote the tourism industry collectively.

GOASEAN will be aired 24/7, on four-hour cycles of six loops, showcasing destinations and tourism products in different concepts and formats to suit a variety of interests, from tourism trivia, travel news and documentaries to travel reality shows, as well as incorporating social media.

From June, GOASEAN will first be aired in Malaysia; by 2016, across the ASEAN region; and by 2017, to a global audience.

Ong Hong Peng, Malaysia’s head of NTO, said the broadcasts will be available via platforms such as free-to-air, direct-to-home satellite TV service, and pay TV.

During the meeting, the ministers also endorsed Malaysia’s proposal for ASEAN NTOs to work closely with industry players in the region to create more ASEAN tourism packages online for promotion within South-east Asia and globally via the ASEAN tourism website.

Ong said: “Both initiatives are in line with ASEAN Tourism Strategic Plan to promote ASEAN as a single tourism destination.”

CHINA is propping up demand in a number of South-east Asian markets, with suppliers reporting that Chinese travellers are now more open to soft-adventure and upmarket travel experiences.

Bali has seen 586,200 tourists in 2014, an increase of more than 50 per cent compared with 2013.

Kariyana, corporate general manager of Ubud-based Komaneka Resorts, said: “China contributes 17 per cent to our market mix and I am aiming to increase it to 20 per cent.” Chinese travellers in the 35-45 years old age group are interested in adventure tours, spa experiences and cooking classes, he added.

The Chinese market grew 40 per cent last year from 2013 for Bali Hai Cruises, and a growing number of Chinese are now interested in local culture and village tours, said director of sales, Pande Ardika. Furthermore, the company has a special Chinese dive instructor for Bali Hai Diving Adventure, its diving outfit.

Having turned to China after the collapse of the Russian charter market, Go Vacation Indonesia executive manager product and contracting, Marika Gloecklar, notes that many upmarket Chinese travellers heading to Bali now look to stay in luxury villas.

At the same time, Chinese travellers are venturing beyond Bali, according to Jayakarta Hotels & Resorts’ director of sales and marketing, Ellies Halim, who has observed some groups opting for its hotels in Lombok and (Labuan Bajo) in Flores.

Poleak Kim, co-founder and operation director of AST Asiatic Travel Cambodia, is targeting upmarket FITs and special interest travellers from China. “There have been inquiries for small-group homestays and trekking. AST is planning to offer photography tours, cycling and birdwatching,” he commented.

Additional reporting from S Puvaneswary.

ASEAN’S integrated tourism strategy would pack a heavier punch by focusing on South-east Asia as a destination rather than branding the association within the travel trade, say industry players.

Few doubt the region’s ability to attract travellers from regional and long haul markets. However, some remain unconvinced a “Visit ASEAN” campaign could ever outweigh the appeal of promoting South-east Asia.

Peter Semone, chairman, PATA Foundation and chief technical adviser, Lanith, said: “I have always felt strongly that ‘Visit ASEAN’ is a misnomer. ASEAN is an association. So, it would be like saying ‘Visit PATA’. I don’t think major medium-haul and long haul markets understand what ASEAN is. They do, however, know what South-east Asia is. We should be promoting South-east Asia and not ASEAN.”

Duncan Webb, CCO, Onyx Hospitality Group, concurred, adding that brand ASEAN “has little resonance with consumers”. He said: “The increased focus from the introduction of the ASEAN Economic Community may increase some consumer awareness, but it’s unlikely it’ll ever have the same credibility at a consumer level as South-east Asia and its mystical allure.”

However, other industry players are more positive about the association’s ability to market the region. “I don’t foresee any major challenges with promoting ASEAN tourism, showcasing our cohesion within the ASEAN communities and our unity across our cultures,” said Philip Wigglesworth, business development manager, Destination Asia (Thailand). “Creating a single-market ASEAN campaign may be a challenge…but with the right balance for all we can hopefully grow and encourage tourism right across the community.”

Valerie Gardelle, marketing manager, Luxury Travel Vietnam, said while ASEAN may lack South-east Asia’s “sex appeal”, when it comes to marketing, the association plays a key role in developing tourism across the region.

“ASEAN’s purpose is noble and everybody can find his or her own benefit within this initiative. The challenge (in promoting ASEAN as a destination) is to find the right words and the easiest way to make messages understood, and engage all kinds of audiences,” she said.

THE INDONESIAN trade is seeing few impacts on air travel following AirAsia Indonesia’s accident, compared with incidents involving other domestic carriers with a less spotless safety record.

Anton Thedy, managing director, TX Travel Indonesia, said: “There were fewer than 10 cancellations on AirAsia Indonesia the first few days following the accident…what might be impacting air travel is the government’s new regulation on lowest fare.”

Excluding Garuda Indonesia and AirAsia, other Indonesian carriers have been on the EU blacklist.

Ng Sebastian, managing director, Incite Travel Makassar, said: “Lion Air has many flights connecting Makassar and other areas in Indonesia, and they continue to be full. Travellers have not stopped going to remote destinations on Indonesian airlines.”

Longhaul travellers have not lost interest too, said Herman Rukmanadi, managing director, Bhara Tours Bandung. “We have secured a new partnership with many (European) tour series for this year – the only condition is to only use Garuda for the domestic connections.

Meanwhile it is estimated Malaysia lost 540,000 Chinese tourists last year due to the disappearance of MH370 and Sabah’s kidnapping cases.

Mint Leong, managing director, Sunflower Holidays, said Chinese travellers are opting instead to fly to Malaysia on Cathay Pacific, China Eastern Airlines and China Southern Airlines.

Adam Kamal, CEO, Rakyat Travel, said: “Passengers are concerned also about the validity of their travel insurance coverage.”

Additional reporting from S Puvaneswary.

Air KBZ, Myanmar’s privately owned domestic carrier and sister airline of Myanmar Airlines International (MAI), is expanding regionally with plans to launch flights between Yangon and Chiang Mai in May.

The ATR72-600 service will start with two flights a week, according to Crystal Aung, assistant manager marketing and sales, Air KBZ.

“We are working on a codeshare agreement with another Myanmar airline company to increase the number of frequencies,” she said.

Aung said the service is targeted at Thai travellers and international travellers visiting Chiang Mai to travel on to Myanmar and vice versa.

Its second destination in the pipeline is Mae Sot in Thailand.

The airline hopes to link up secondary cities in the region. “MAI will continue serving the major destinations and Air KBZ will help to open up access between secondary cities,” she said. Future destinations will include India and China and cities Air KBZ will operate to will be decided at a later stage.

Air KBZ now operates five ATR-500 and two ATR 72-600 aircraft.

“More aircraft will be deployed to support our (domestic and regional) expansion,” she said. Additional aircraft scheduled for delivery next year include one ATR-600 and two CRJs.