SINGAPORE hotels are starting 2015 on a positive note, confident that rates will hold steady despite a fresh injection of rooms into the city’s supply.

According to the latest Cushman & Wakefield’s assessment, hotels are expected to have closed 2014 at 84.3 per cent occupancy, down from 86 per cent in 2013, as a result of more rooms coming online and a significant drop in the number of Chinese visitors. Despite this, the average room rate (ARR) held steady at S$260 (US$195) compared with S$258 in 2013.

Hotels expressed the same optimism, and said the upcoming ASEAN Economic Community (AEC) 2015 will help boost ASEAN traffic towards the end of the year.

Royal Plaza on Scotts general manager, Patrick Fiat, said: “Royal Plaza closed 2014 with an occupancy rate of 89 per cent and ARR of S$290. We are expecting ARR to increase three to four per cent this year and occupancy to be similar to last year’s.”

The Westin Singapore general manager, Lance J Ourednik, is also optimistic the hotel will “experience healthy growth” in occupancy and ARR this year.

Similarly, Furama RiverFront general manager, Kwan Hun Fah, said: “We closed 2014 with occupancy above 80 per cent and we expect growth in 2015 of three to five per cent for both occupancy and ARR.”

He added: “We expect 2015 to pick up with AEC 2015 and other major events such as the SEA Games as we are one of the hotels providing accommodation to the athletes.”

While Fiat said the impact of AEC on the hospitality industry will only be felt from the end of this year, he added: “With this (AEC) in place, the ease of travel among ASEAN countries for both regional and long haul travellers is expected to increase.

“The joint efforts of AEC 2015 will result in a boom in the region as they encourage cross-border collaborations and investments. This will in turn drive business travel within ASEAN.”

Starwood Hotels & Resorts Worldwide regional vice president, South-east Asia, Charlie Dang, concurred: “We are hopeful AEC 2015 will make tourism even more attractive with favourable tourism policies, improved flight connections and a more aligned tourism plan.”

COME 2016, an association, an event organiser and the host committee of the ASEAN Tourism Forum (ATF) are expected join hands to leverage their individual strengths for the annual trade event.

 The Philippine Department of Tourism (DoT) will be taking the lead in putting together ATF 2016 in Manila, with support from ASEANTA and TTG Asia Media.

Philippines tourism secretary Ramon Jimenez told the Daily the Philippines is eager to get the private sector involved, calling it a “fruition of insights of past ATFs”. He said: “Governments can be a little boring without the private sector, as they are the voice of the industry.”

 Aileen Clemente, president, ASEANTA, said: “This is a testament of public-private partnerships, which have been increasing especially towards ASEAN integration. This collaboration shows the strength of the co-operation and unified goals of all parties, including invitation for investments and contribution to ASEAN’s economic growth.”

 If both parties are appointed by the Philippines, TTG would manage the Travex component while ASEANTA would arrange logistics such as accommodation as well as organising the ASEAN Tourism Conference.

 Darren Ng, managing director, TTG Asia Media, said: “Such a tripartite arrangement will leverage the individual strengths – TTG for its specialisation in event and exhibition organisation for the travel trade and ASEANTA for its established trade ties.”

 One new component of ATF 2016 that ASEANTA is introducing is the investment fair. Said Clemente: “Almost every year, the ASEAN Tourism Conference is handled by ASEANTA. In 2016, ASEANTA will convert the half-day event to two days concentrating on investment opportunities in ASEAN. We’d like to push the portfolio of investments before the conference, so that by the time the conference comes round people can just sign the contracts there.”

 On the choice of Manila as the host destination, Jimenez said: “A lot of things will be completed in Manila by 2016, such as new hotels, and Entertainment City will be in full swing. We also want to clear up a misperception that it’s impossible to get around Manila, but this is possible with the proper management of events.”

 Asked why some DMCs have said they no longer participate at such tradeshows due to low ROI, Ng said that unlike other event organisers, TTG Events will continue to monitor buyers and ensure buyer quality with its experience handling travel tradeshows.

 ASEANTA will contribute by recommending high-quality buyers. Ng added: “A key area of focus is to get new buyers. We’re looking to host about 400 buyers, about 50 per cent from Asia, 30 per cent from Europe and 15 per cent from North America. Traditionally for ASEAN, intra-regional travel is important, and the next important step is Europe.” – Additional reporting by Rosa Ocampo

ENCOURAGED by the increasing tourist arrivals, Myanmar Tourism Development Company (MTDC) will start developing a new hotel zone project on 808ha of land in Tada Oo Township in Mandalay by end-January.

Yan Win, chairman of MTDC, a business arm of Myanmar Tourism Federation, said the project will cost about US$560 million and will include the building of infrastructure and other facilities.

“With the approval of the Mandalay regional government, we will start to build basic infrastructure such as roads, and we expect to finish the whole project in six years,” he said.

He added that while the project will be designed by a foreign company, it will be developed by local companies. “After completion, we will have 20 international-standard five-star hotels in this zone.”

Foreign investors will build about 100 hotels on about 237ha of land, while local investors will build 192 hotels on 410ha.

The project will comprise two phases, with hotel-related developments planned for the first two years. When completed, there will be 10,000 hotel rooms and at least 50,000 local jobs will be created.

Htay Aung, minister of hotels and tourism, said the project area is strategically situated near several attractions.

He added: “I hope this project will position Mandalay as the main tourism destination of Myanmar since the site is near historical places such as Inwa archaeology zone, Sagaing Hill, Mingun, Maenu Monastery and Bargayar Monastery.”

Su Su Tin, managing director, Exo Travel Myanmar, said: “A rooms shortage has affected the industry in the last three years, and big hotel projects in key destinations will help.

“The ministry should plan similar projects in various key destinations too,” she added.

The government has announced plans for hotel zones in other areas including Yangon, Bagan, Taunggyi, Chaungtha Beach, Inle Lake, Rakhine, Mawlamyine, the Golden Triangle, Bago, Ngwe Saung Beach and Nay Pyi Taw.

MALAYSIAN tour operators are unfazed by the expected rise in package prices arising from the Goods and Services Tax (GST) – set to be introduced in April – and increased operational costs.

Adam Kamal, CEO, Rakyat Travel, said: “Our package rates will go up by six per cent, but we’re mitigating this with add-ons such as free mementos and insurance coverage for clients. I don’t think business will be impacted as the rise will be cushioned by the weakened ringgit.”

Desmond Lee, group managing director, Apple Vacations & Conventions, intends to increase rates by up to 10 per cent. “Initially this will affect demand causing a year-on-year drop of 20 per cent. But travellers will get used to the rise, and from October, demand should return. This year, we plan to attract more visitors from the middle and upper-middle income groups in Japan and China.”

However, Emong Tinsang, senior manager-sales and operations of Borneo Adventure, which is looking at a raise of seven to 10 per cent, said: “It is too early to gauge the impact, but as we offer unique experiences such as longhouse tours to Batang Ai, we don’t compete on pricing.”

Khirul Zainie, managing director, MegaBorneo Tour Planner, Brunei, said while most partners will increase contract rates five to eight per cent, some have taken advantage by increasing rates 15 to 20 per cent.

“We have changed our partners due to this. Tourism Malaysia should educate the players so that the destination does not lose its competitiveness. The weakened ringgit has made the destination much more attractive for Bruneians…I project at least a 30 per cent year-on-year increase this year,” she said.

CP Foo, general manager, Century Travel Centre (Brunei), describes higher contract rates from partners of five to 10 per cent as “quite reasonable”, adding that Bruneians will not stop visiting Malaysia due to the GST, but will be encouraged by the depreciated ringgit instead.

PATA has held bilateral meetings with regional NTOs to discuss hosting the PATA ASEAN Economic Community (AEC) Tourism Capacity Building Programme in each ASEAN country.

The objective is to bring together stakeholders from the government and private sectors to discuss, plan, implement and monitor tourism development in order to promote a cohesive mechanism for boosting ASEAN tourism growth.

PATA, as catalyst, will work with the ministries of tourism and tourism boards of interested ASEAN member countries to organise the programme, which will comprise a one-day conference/forum with content customised to meet the needs of individual countries, and optional workshops on ASEAN Crisis Communication and PATA Capacity Building.

PATA regional director-East Asia, Ivy Chee, said the conference/forum will be driven by PATA headquarters in close cooperation with the host country and industry stakeholders.

“The ultimate goal is to facilitate businesses to stay abreast of the opportunities available to promote better appreciation and understanding of ASEAN economic issues within the business community and private sector agencies.

“PATA is willing to assist ASEAN in conducting simulated drills through its crisis communication workshop to identify blind spots, thus improving the ASEAN Crisis Communication Manual, which PATA feels is theoretical as countries have never co-operated in a simulation or real-time scenario,” she noted.

While ASEAN industry members the Daily spoke to expressed optimism on tourism business outcomes with the advent of AEC, they also requested for more information and gave suggestions on ways to make it work.

Francisco LIM, general manager, Adkins Travel Agency, the Philippines, said: “Not many in the travel industry know what AEC is about. We need to be educated. We need more marketing and promotions for AEC.” – Additional reporting by Mimi Hudoyo, Paige Lee Pei Qi, Greg Lowe and Rosa Ocampo

Read more of this story in TTG-ATF 2015 Show Daily