Egypt tries to convince tourists it’s safe, says Greg Lowe, who finds it’s not such a bad time to visit now. Hannah Koh talks to a Kenyan safari operator that is seeing more Asian clients

Still open for business

Egypt’s tourism trade has been in the doldrums ever since a popular uprising, which saw deadly clashes between pro-democracy demonstrators and security forces, and ousted Hosni Mubarak and his military government from power in February 2011. Political turbulence and fragile security have shrouded the country ever since, making Egypt a tough destination to sell.

These dynamics compounded by a raft of travel advisories for Egypt and a resurgence in violence early this year, including a bomb attack on a coach which killed three South Korean holidaymakers, have seen tourism arrivals decline.

International visitors fell by 28.9 per cent year-on-year to 642,197 in January 2014, a 39 per cent slide from one million in January 2010, according to most recent data from Egypt’s Central Agency for Public Mobilization and Statistics. Eastern Europe, Western Europe and the Middle East were the leading markets, respectively.

Sheryl Lim, regional director Asia at Insight Vacations, said: “We have cancelled all our Egypt departures from April 1, 2014 until August 31, 2014. This decision was made in light of the deterioration of security on the ground in Egypt in late January.”

In a bid to reverse the trend, both the public and private sectors are taking steps to promote travel to parts of the country which have remained relatively untouched by the turmoil, such as Sharm el Sheikh and much of the Nile Valley.

Direct flights from Paris, London and Istanbul to Luxor, Hurghada and Sharm el Sheik started on March 1, enabling groups to bypass Cairo and head straight to key destinations.

“Nile cruises have started operating again in a more regular way,” said Karim ElMinabawy, president of Emeco Travel, one of Egypt’s leading DMCs. “With more vessels available, it is easy to tailor the programme to meet clients’ needs.

“Marsa Alam by the Red Sea and southern Hurghada continue to operate in much the same way as prior to the revolution. Alexandria by the Mediterranean continues to be very popular for visitors coming from Asia as well as from the West.”

ElMinabawy said tourist police and travel companies ensure tourists are not taken close to potential flashpoints in the capital, such as Cairo University and Al Azhar University, where students stage fairly frequent protests. A law banning demonstrations which have not been approved by authorities was also passed late last year.

Meanwhile, the Ministry of Tourism and Egypt Tourism Authority have implemented a number of initiatives to lure travellers to the country. These include subsidies for charter flights to resorts on the Red Sea, such as Sharm el Sheikh, Hurghada and Marsa, as well as El Alamein on the Mediterranean, with the level of subsidy depending on the length of the flight and the number of passengers.

Measures have also been taken to ease the burden of travel to Egypt. Visitors from the European Union and US can now purchase visas on arrival. Indians can do the same, as long as they have an official letter from a local travel agency which is arranging their tours within the country. Authorities are planning to expand the scheme to include South Africans as well.

More fam trips for both agencies and media, especially those from Europe, have been organised.

“We’re also busy holding seminars and on-the-job training for staff to ensure that the whole trade is well-equipped and ready for when arrivals get back to normal,” added ElMinabawy.

Into the wild

More Asian travellers are ditching high-rise metropolises and its creature comforts to take a walk on the wild side in Kenya for their holidays. While absolute numbers remain small, the rate of increase suggests that there is still plenty of room to grow.

Julia Mut, marketing manager for Cheli & Peacock that operates and/or markets a total of seven safaris within Kenya, said the Australasia market has grown “immensely”. Customers come mainly from Hong Kong, Singapore, the Philippines and China, while traffic from Japan and South Korea is picking up.

“The latest figures (from our properties) show a 400 per cent growth in number of pax from 2010 to 2013, from 75 pax in 2010 to 308 pax in 2013, while revenue has grown more than six-fold in the same time, meaning that not only more people from Asia are coming to Kenya, but they also spend more on their safaris,” she said.

Cheli & Peacock’s portfolio covers six destinations within Kenya, but the Masai Mara (Cottar’s 1920s Safari Camp and Elephant Pepper Camp) and Amboseli (Tortilis Camp) are more popular with Asians due to their fame and the fact that most promotions in Asia are centred around these areas, “so we are trying to promote other areas as well,” said Mut.

“One of the things about Asians is they are quite active as compared to other markets. In other markets they are quite happy to sit in a game drive vehicle in the morning to the evening. But with Asian clients, they like to experience things. So they’ll go on a walk in the morning and a drive in the evening, and they will do a night game drive and go for camel riding in the morning.”

To further promote Kenya and safari camps to the Asian market, Cheli & Peacock is arranging several press trips for Asian media this year.

Stefano Cheli, founder and managing director of the company, will also be travelling to Asia for a sales trip in September to visit Cheli & Peacock’s main partners in Hong Kong and Singapore as well as hold presentations, training sessions and a few press events, shared Mut.

“We did one of these trips back in 2011, after which the interest for Kenya from the region started growing, so we feel confident that yet another trip will bring lots more business in 2014 and 2015,” she said.

Cheli & Peacock also takes pride in being a champion of sustainable tourism. With a motto to ‘take only pictures, leave only footprints’, its camps are environmentally friendly and located in conservancies or national reserves. Local communities are supported through bed night levies, leasing agreements and education initiatives.

Additional reporting from Greg Lowe

The time has come for the sleepier Asian beach resorts – the Desarus and Lomboks of the region – to shine. Here’s a guide to four highly emerging ones

LANGKAWI

OVERVIEW
Constrained by issues of sustainability and carrying capacity in the face of a rising tide of arrivals, Langkawi will sharpen its focus on the premium travel segment.

Arrivals climbed 12 per cent last year to 3.4 million tourists, surpassing the three million target initially set for 2015 in the destination’s 2011 tourism masterplan, according to Khalid Ramli, CEO of Langkawi Development Authority (LADA).

Hence, LADA is revising its 2015 target to four million arrivals, he said. However, tourism receipts are still below its aim of RM3.8 billion (US$1.2 billion), so this will be a critical year to reach it, he added.

“We need to look at high net worth tourists because (this segment) will give higher revenues with smaller numbers.

“We don’t want amusement parks in Langkawi…We are focusing on iconic projects, not mega developments,” he said.

In line with this, Langkawi’s hotel pipeline comprises several luxury hotels, including St Regis and Ritz-Carlton, which will boost the destination’s room supply from the current 9,000 to 15,000 by 2017.

In addition, a host of new tourism products are opening.

Property and leisure group Tradewinds Corp is also reportedly investing some RM4 billion to develop Perdana Quay in Langkawi’s Pantai Kok-Teluk Burau area on the northwest of the island. This will be the first integrated leisure, retail, residential and commercial development on the island, and it targets the luxury segment.

The project is said to span 10 to 12 years in six construction phases, covering a total of 96ha of land. Phase one and two will include natural and family-oriented attractions such as butterfly, forest and water-themed adventure parks.

Retaining the destination marketing slogan as Naturally Langkawi, LADA will also leverage Langkawi’s natural appeal to attract more sports and eco-related events, with high-profile events like the IFMA Muaythai World Championship and Ironman making their debuts this year.

Meanwhile, it is in talks with airlines and relevant authorities to welcome direct flights from the Middle East, China, South Korea and India, revealed Khalid.

COMING SOON
• Langkawi Sky Bridge (reopens end-2014)
• Expansion of Oriental Village (1Q2015)
• St Regis Langkawi and Langkawi International Convention Centre (early 2015)
• Rahsia Estates Resort Residences, Eco-Hotel and Spa (mid-2016)
• The Sultan’s Palace (2017)

LOMBOK

OVERVIEW
The province of West Nusa Tenggara, along with Bali and East Nusa Tenggara, has been marked a tourism corridor in Indonesia’s Economic Master Plan 2011-2025. West Nusa Tenggara covers the main islands of Lombok and Sumbawa, and as many as 280 tiny islands surrounding them. The status gives them priority in developing infrastructure and facilities.

Lombok International Airport, which replaced Selaparang Airport in 2011, is scheduled to expand its runway from 2,750m now to 3,000m next year.

Mandalika Resort in the southern coast of the island is receiving its status as a Special Economic Zone, with the government providing incentives to investors developing projects in the integrated resort.

Mandalika covers a total area of 1,175ha and will be developed in three stages with final completion by 2020.

Development has started with the first phase of a 4km road construction, to finish in September. The total 22.5km road is expected to be completed in 2020.

Meanwhile, a solar cell with a total output of 15 megawatt is targeted to start development in June on a 40ha land, said Edwin Darmasetiawan, director of development, Bali Tourism Development Corporation, the master developer of Mandalika. Construction of other basic infrastructure such as telecommunications and water supplies is also scheduled to start in June.

Three investors are preparing to build six hotels, including Club Med and Marriott Vacations, and an 18-hole golf course which is targeted to open in 2018, according to Edwin.

Apart from Mandalika, there are three other integrated projects in Lombok:

– The 200ha Mekaki Bay Resorts in the southwestern tip of the island with slots for 14 four- and five-star properties and two luxury villa complexes. Surfing is a major attraction here.

– The 7.4ha Medana Bay Marina in North Lombok, which opens investment opportunities for hotels and recreational facilities

– The 400ha Tanjung Ringgit in the southeastern part of Lombok and the Eight Islands in the northwestern part of Sumbawa. Both are earmarked for integrated eco-resort development.

Indonesia’s minister of tourism and creative economy Mari Elka Pangestu said tourism to West Nusa Tenggara (where Lombok by far is the major destination) has picked up since it was singled out as a tourism corridor in 2011.

Domestic and international arrivals to the province rose to 1.2 million last year, from 887,000 in 2011.

Accessibility has tailed the growing demand. The launch of Jetstar’s direct four-weekly flights between Perth and Lombok last year resulted in a 175 per cent rise in arrivals from Australia in 2013 over 2012.

Air links between Singapore and Lombok have increased with Tiger Airways starting thrice weekly services last year, adding to SilkAir’s five-weekly flights, while AirAsia has a daily service between Kuala Lumpur and Lombok.

Meanwhile, an increase of Garuda Indonesia services between Bali and Lombok from one to thrice weekly has given Lombok new opportunities to reach the Japanese and South Korean markets as well as Australian markets beyond Perth.

Data from Lombok International Airport showed that foreign arrivals are rising significantly. Last year, 1.1 million movements were domestic traffic and 79,000 were international, a rise  of 17.3 per cent and 194 per cent over 2012 respectively.

COMING SOON
• The Golden Palm Hotel, Mataram (3Q2014)
• Marina Del Ray (second half 2015)
• Hotels by Archipelago International (late 2014/2015)

BINTAN

OVERVIEW
Since groundbreaking in May 2008, Lagoi Bay has elevated the allure of Bintan Island with its highly anticipated launch of resorts and attractions. On the heels of lifestyle partners and resort operators that have opened, including the Lagoi Beach Village Mall, Air Adventures and The Sanchaya, are new projects (see Coming Soon). Upping the anticipation factor further is a deal inked between Garuda Indonesia and Singapore-based investment company Gallant Venture to develop a new international airport, located just 35 minutes from Lagoi Bay.

All this is a boon for Bintan Resorts International (BRI), which aims to position Bintan Island as a leading resort and leisure destination in Asia with sustainability and biodiversity conservation at its core.

Bintan’s new airport has already garnered interest from LCCs, according to Asad Shiraz, BRI’s marketing director. Shiraz is hopeful it will result in vital domestic and regional airlinks such as to India and China.

“We also see the opening up of charter flights from Europe for this airport,” he added. European markets such as the UK, France, Germany and, increasingly, Russia are significant for Bintan, comprising eight per cent of arrivals.

Bintan Island is currently served by Raja Haji Fisabilillah International Airport, located in Tanjung Pinang, the capital city of the Riau Islands. The bulk of visitors though arrive from Singapore via a 45-minute ferry connection.

With these developments, BRI is stepping up marketing to the travel trade and consumers in selective markets, using channels including advertising both in online and print media, and social media.

A series of roadshows and mini-travel marts to India, China and Indonesia, and sales calls to Japan and South Korea, are also planned. Among segments targeted are weddings, MICE and school tours.

COMING SOON
• Plaza Lagoi (second half 2014)
• Swiss Belhotel Grand Lagoi (May 2014)
• Bintan Market Place (end 2014)
• Alila Villas Bintan (2015)
• Bintan Resorts International Airport (early 2016)

DESARU

OVERVIEW
This coastal resort in southeastern Johor, Malaysia, with its laidback ways and kampung (village) feel, is a playground for locals and a smattering of Singaporeans from across the causeway. But Destination Resorts and Hotels (DRH)’s Desaru Coast development – pulling in names such as Amanresorts, Datai Hotels & Resorts (which it owns) and The Els Club, plus attractions such as marine and water parks – may change Desaru’s humble image once and for all and bring in the well-heeled to the neglected destination.

Desaru had tried, twice before, to be in the major league of Asian resorts by attracting foreign investment. Twice it failed. This time, it’s different.

“You’ve got to see it to believe it,” said Darrell Metzger, a director on the board of DRH. “When you see the golf courses, when the hotels are up, it won’t take long before you realise this is a premier destination. For a stretch when you drive (to Desaru Coast), there is nothing but plantation, then a whole new world opens up when you see the signage, the landscape, etc, and everything there is new.”

DRH has some 1,700ha of land and what’s on the drawing board currently (see details below) is just phase one, comprising 30 per cent of the land, he said.

Established in 2010 by the Malaysian government’s investment arm, Khazanah Nasional, DRH’s mission is to own, develop and catalyse world-class premier destinations. For many, that’s the big difference. For one, the important aspects of developing virgin territories, such as accessibility, are being handled.

For example, DRH will be building a marina in Desaru Coast that can handle larger passenger ferry boats and car ferries from Tanah Merah in Singapore, which is close to Changi International Airport. According to Metzger, tests are being done  and construction of the marina is likely to start in 2015 for completion in 2016/17.

Plans to transfer guests from Singapore to Desaru via shuttle buses – the way DRH provides shuttles to Legoland in Nusajaya from the Singapore Flyer – are also in the works, he added.

“We’re expecting some 35 per cent of guests to come from Singapore, both Singapore and international markets, many through Changi.”

DRH has already started to raise awareness of international markets of Desaru Coast, exhibiting at the recent ITB Berlin, for instance. “We’ll do an image and brand campaign towards the end of the year as it is too early to launch that right now.

“Currently, we just want to raise as much awareness as we can that there is a whole new jewel for tour operators to look at,” said Metzger.

COMING SOON*
• The Els Club
• Ocean Quest Marine Park and Ocean Splash Water Park
• The Riverwalk
• Aman Country Club and Aman Villas
• Datai Desaru
• Anak Datai Desaru
• Sheraton Desaru Resort
• Convention centre
• Hotel, tourism & culinary arts school
* All projects will open in 2017

Additional reporting from Xinyi Liang-Pholsena, Mimi Hudoyo, Paige Lee Pei Qi