TTG Asia
Asia/Singapore Friday, 10th April 2026
Page 2244

Decoding a coup

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13-june-decoding-a-coupClearly, there’s a wide gap between how Thai sellers and buyers perceive a military intervention in Thailand. The former sees it as a measure towards certainty. For the latter it has uncertainty written all over it.

When the Thai army invoked martial law on May 20, followed by a military coup two days later,  many Thai hoteliers, DMCs and PCOs described the move as being “actually good” in as far as its intention to restore peace and order in the country, which has been embroiled in a political stand-off for seven months, goes.

They were at pains to explain there is nothing sinister about a coup in Thailand, that its people are going about working, dining, shopping as normally as ever. Thai sellers interviewed at IMEX in Frankfurt the day martial law was imposed – the same day the show opened – said they were not surprised at all, although they thought it might be imposed a bit later.

Buyers, on the other hand, were shocked.

Clearly, there’s a wide gap between how Thai sellers and buyers perceive a military intervention in Thailand. The former sees it as a measure towards certainty, and something that is so normal in Thailand – after all it’s the 19th coup. For the latter, a coup has the word uncertainty written all over it and is anything but normal.

Fact is, words like ‘coup d’etat’, ‘martial law’, ‘curfew’, ‘banned’, ‘black-out’ are all negative, despite their impositions in Thailand bringing some positive effects for the industry (for example, at writing time, the protests had stopped). Can we blame any tourist for hesitating to visit when he sees that there’s a curfew from midnight to 04.00, that he can’t gather with a group of five friends as there’s a ban on that, that it is strongly recommended he allocates at least three hours of travel time to the airport and stay updated with traffic news to avoid missing his flights, that International SOS has advised to defer non-essential travel to Bangkok, that several countries have also issued travel advisories for Thailand, including Malaysia, India, Singapore and Ireland? Too hard.

In today’s world of travel being a click and low-cost air seat away, recovery is irrelevant. As Bill Barnett, managing director of C9 Hotelworks, said: “Cycles are gone, and there is now only action and reaction.”

The military intervention will hurt leisure and MICE arrivals further in the next few months. What the Thai industry needs to do is swallow this bitter pill and focus its energies on positive actions that will enable it to compete effectively in the long term.

Use the time, for example, to rally the government to ease visa restrictions on markets such as China – look at how destinations such as Japan and the US are reaping rewards of easing entry requirements. Invest on training and raising the professionalism and morale of service staff. Clean up and beautify Bangkok. Review Thailand’s brand image to see if it speaks to a wider audience, not just tourists but investors. Be creative with marketing – how about an attractive rate for airline staff, hoteliers, travel agencies and other industry members in ASEAN to holiday in Thailand?

Oh yes, make people laugh too, to defuse the tension. I simply love Swissôtel Le Concorde Bangkok’s Curfew Rate which came out the day after the coup.

Bintan’s Treasure Bay signs on US brands, Chiva-Som

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BINTAN will see the Phase 1 opening of mega integrated resort, Treasure Bay Bintan, in 4Q2014, whose pioneering development will be an adventure hotel offering guests proximity to nature.

Malaysia-based Landmarks, which also owns The Andaman in Langkawi, announced that Phase 1 is anticipated to add 1,500 room keys to the island.

Spanning 90ha, it will feature Chill Cove, which boasts the largest Crystal Lagoon in Asia, as well as entertainment areas, bars, restaurants, aquatic sports facilities, retail areas and locations for at least eight hotels. To date, 60 per cent of these hotels have been committed to by renowned international and boutique operators.

Targeting nature and wellness visitors, Phase 1 will also include a destination health resort helmed by Canyon Ranch; a 40-hectare natural discovery centre with a mangrove enclave; river canoeing and other eco-themed activities; and a 20-hectare organic farm producing fruits and vegetables.

Phase 1 is fully planned and ready for implementation, and forms part of a 20-year master development to be rolled out in three phases, across the whole 338ha that is Treasure Bay Bintan.

In Phase 2, boutique health and wellness brand Chiva-Som will manage a resort under a new brand.

Changi Airport extends financial aid to airlines amid challenging environment

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CHANGI Airport Group yesterday announced the rolling out of a wide-ranging Growth and Assistance Incentive (GAIN) programme to be implemented over the coming year.

In a press statement, the Group said with GAIN, a total of S$100 million (US$80.1 million) will be committed through various initiatives aimed at lowering costs for airlines, boosting passenger traffic and improving operational efficiency at Changi Airport.

From July 1, 2014 to June 30, 2015, all airlines operating at Changi Airport will enjoy an across-the-board reduction in operating costs, including rebates of 50 per cent on aircraft parking fees and 15 per cent on aerobridge fees.

A new package rewarding airlines for growing transfer traffic at the airport will also be introduced.

Airlines are also being encouraged to leverage the FAST@Changi initiative, which covers a range of self-service options for departing passengers. More details on FAST@Changi will be provided in due course.

Lee Seow Hiang, the Group’s CEO, said: “While we cannot iron out the volatilities of the industry cycle, we believe that GAIN will provide helpful temporary cost relief as airlines implement the necessary measures needed to adjust to the evolving market environment.”

According to Singapore’s broadsheet The Straits Times, the programme is a lifeline thrown in the wake of the Group’s year-on-year passenger traffic decline recorded in February and March this year, likely due to Malaysia Airlines’ MH370 incident and the Thai political instability, which have hit demand from its biggest markets China and Thailand.

AIBTM reinvents tradeshow format

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THE Americas Incentive, Business Travel & Meetings Exhibition (AIBTM) will take on a new name and show format to become an exclusive, invitation-only event come 2015.

To be rebranded as IBTM America, the 2015 show will feature a unique turnkey, plug-and-play solution where a 2.4m by 2.4m standard pod will be provided to exhibitors on arrival, reducing exhibiting hassles and removing additional costs associated with set-up or tear-down, freight or drayage.

A flat, all-inclusive price of US$9,500 will be charged for each modular booth design.
The new format is a result of consultation and feedback from the industry, according to Michael Lyons, exhibition director of AIBTM at Reed Travel Exhibitions.

“Exhibitors have told us that it’s getting more expensive to come to a show because the booths and spaces are expensive – shipping, building and taking down the booth, plus labour and extras,” he said.

“(Exhibitors) only have so much budget and corporate budgets are being squeezed, but there are many more events to attend every year, so they have to make a choice on the best event for their ROI,” he continued.

“It’s not just about taking the money of those willing to pay to be here. This will level the playing field so it doesn’t matter if an exhibitor has a bigger booth. What’s relevant is dialogue and conversation.”

IBTM America will also boast a 1:1 buyer-seller ratio limited to 250 suppliers and buyers respectively. Hosted buyers are pre-qualified and selected for their interest in placing US business, and exhibitors will be from all sectors of the MICE market, comprising 60 per cent from the US and 40, international.

Both exhibitors and buyers will take part in a mutual match system for their appointment diary.
At the same time, IBTM America will do away with hosted buyer functions. In place will be meals, events and networking functions that include both buyers and suppliers, said the event organiser.

Said Lyons: “We realised that sometimes the exhibitors felt excluded and they weren’t getting enough access to the hosted buyers. By making the ability to bring the buyers and sellers together multiple times throughout the course of three days, we will create a community with more touchpoints and bring this down to a smaller, more intimate event.”

Reed Travel Exhibitions, however, will not be introducing this “hybrid solution” to other shows under its IBTM portfolio.

Said Sallie Coventry, portfolio director, IBTM Global Events Portfolio: “Our two table-tops in India and South Africa have been incredibly successful and are an absolute fit for those markets, but EIBTM is our flagship and that’s about ground presence – it’s a different proposition. Every show is tailored to the market.”

AIBTM 2014, which took place in Orlando from June 10 to 12, drew 1,200 buyers and 508 exhibitors this year. IBTM America will take place in Chicago in 2015 and Orlando in 2016.

Lombok trade rallies for Jetstar’s Perth services to continue

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JETSTAR’S impending cessation of its four-weekly Perth-Lombok services on October 17 is a blow to the travel industry on the island.

Lombok has enjoyed significant growth in arrivals from Australia since the services commenced last October, but in less than a year, Jetstar had on June 5 announced it is making changes to the Perth network due to weak demand.

“Despite our best efforts to promote Lombok as a destination, we are just not seeing enough demand to sustain services at this time,” said the airline’s spokesperson.

Jetstar will up its Perth-Denpasar service to thrice daily and offer passengers who have booked to fly (Perth-Lombok) after October 16 a flight to Denpasar, or a full refund, plus a voucher of A$50 (US$47).

Stevan Servin, chairman, Lombok Hotel Association, said: “We are sad to hear this. Even without much promotion, Jetstar’s average load factor is 63 per cent. Just last week we (the travel industry) met with Australian wholesalers to create promotional programmes to boost (Jetstar’s load factor) further.”

Speaking to TTG Asia e-Daily, Servin said West Nusa Tenggara vice governor would travel to Australia next Tuesday to meet with Jetstar executives to explore ways to continue the service.

Sheraton Senggigi Beach Resort Lombok director of sales, Jelantik Suharta, who attended the Bali & Beyond Travel Fair, said: “It will be a big loss for us. Our Australia market has been up from five to 25 per cent since Jetstar started direct flights.

“Australian visitors have stayed up to six nights with us, which means the flight has (helped) Lombok to become a mono destination.”

Judy Anglim, product manager, Specialist Infinity Australia, said the development of new hotels, especially upmarket villas, has given Lombok something to offer high-end travellers.

She added: “What the direct flight has done is increase much awareness of the destination. We are going to push for it to stay.

“Besides, Garuda Indonesia has been offering an add-on between Bali and Lombok for A$50 (for travellers) from Australia. As long as Garuda continues to do so, I think Lombok will continue to be attractive to the Australians.”

Travelport’s new itinerary product to drive ancillary sales

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TRAVELPORT expects to roll out a B2B2C product later this year, by which agencies can send a detailed itinerary containing images, information and live links, allowing customers to access and purchase add-ons during the rest of the travel cycle.

Aimed at making ancillary purchases hassle-free, the itinerary product supports social media integration, and will also come in a white-label version for branding.

Damian Hickey, vice president, distribution sales & services, Travelport, said: “(The product) is driven by the travel consultants’ and airlines’ desire to serve customers; airlines want to effectively continue the selling experience with passengers the whole way through, until they get home.”

Meanwhile, the sale of ancillary products is still a major topic of debate among airlines, travel consultants and GDS providers.

Ian Heywood, vice president, global supplier strategy, GDSs, Travelport, told TTG Asia e-Daily: “Travel consultants are starting to book ancillaries on the GDS. This is one area in which the industry needs to work together on. Travel consultants need to be able to book ancillaries in a very efficient manner or the customer will go to another travel consultant or the airline direct.

“One thing that often comes up from travel consultants is that they are not getting paid (for the extra effort). That’s a discussion they and airlines need to have, but that’s a little of a chicken-and-egg situation.

“If travel consultants can demonstrate that they can generate that sort of additional value to the airlines, then airlines would be more willing to enter the discussion. At the moment the ancillary industry is in its infancy, so there’s got to be trust on both sides.”

Travelport currently has 24 airlines selling 50 different ancillary types across 178 countries. Within the last eight months it has signed on major LCCs Ryanair, AirAsia and Tigerair.

He added: “Ancillary revenues are very important to airlines – which don’t make a lot of money – and are estimated to reach US$45 billion next year. If you take them away from the airlines they would be making losses everywhere.”

Asked what is the weirdest ancillary item within the Travelport inventory, Heywood quipped: “(Space to transport a) hang-glider is a weird ancillary. That, and pets.”

Separately, Travelport yesterday announced its acquisition of Hotelzon, a B2B hotel distribution provider, as part of its Beyond Air offering.

Hotelzon will continue to operate under its existing brand and be led by incumbent CEO, Jani Kaskinen, who will report to Niklas Andréen, head of Travelport’s global hospitality, car and advertising business.

With the acquisition, there will be expanded hotel content in both Travelport’s and Hotelzon’s booking platforms and new technology, including Hotelzon’s corporate self-booking tool.

IATA, UNWTO collaborate on innovation, talent development

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UNWTO and IATA have signed an MoU for joint innovation and talent development in the public and private sectors to promote competitive and sustainable tourism development, with a focus on the air transport industry.

Under the agreement, IATA will support the creation of a new category within the UNWTO Awards for Excellence and Innovation in Tourism, which will recognise innovation in marketing and product development with the objective to enhance connectivity and increase travel accessibility by airlines, travel agencies and other travel and tourism companies.

IATA will also be a leading implementing partner in the UNWTO Knowledge Network Talent Development initiative, which aims to support young talents in the tourism sector through internships, knowledge transfer and research.

Carlos Vogeler, UNWTO executive-secretary of member relations, said: “Air travel is a key driver of tourism development around the world and we are looking forward to joining forces with IATA in promoting the important innovations spurred by travel companies and further fostering young talents in the tourism and air transport sectors.”

Ismail Albaidhani, head of IATA Global Partnership and Travel & Tourism Unit, said: “We are now working very closely with UNWTO to strengthen the collaboration between the various travel and tourism value-chain partners, and today’s (June 10) important agreement establishes a solid platform to launch crucial joint-industry initiatives worldwide.”

Additionally, UNWTO and IATA agreed to co-organise an event on air travel and tourism value chains next January, in the framework of the UNWTO Awards taking place in Madrid.

BBTF seeks more funding, non-Bali sellers for next edition

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BALI’S first B2B/B2C travel event kicked off yesterday, with sellers mostly from the island for a start.

Bali & Beyond Travel Fair (BBTF) attracted 361 sellers, the majority of which come from Bali, and some from West Sumatra, East Nusa Tenggara, South Sulawesi, Jogjakarta, Papua, Riau Islands and South Kalimantan.

I Ketut Ardana BBTF steering committee chairman, who is also chairman of the Association of the Indonesian Tours and Travel Agencies (ASITA) Bali Chapter, said: “We all know that Bali is the (major) gateway to Indonesia, and through this travel mart, we hope other destinations in Indonesia will be able to leverage the presence of international buyers to promote their destinations.”

In his opening speech, Ardana revealed 460 buyers from more than 50 countries had registered online and 233 had confirmed attendance.

“The response from buyers was overwhelming. We received 640 buyer applications, while we originally targeted only 150,” he said.

Bali vice governor I Ketut Sudikerta said: “Bali needs such a show, so the provincial government has submitted its budget for the show next year.

“I cannot tell you how much it is until we get approval (from the parliament), but we expect there will be budget from the regional and central governments. The event will be publicly and privately funded, so the industry will need to chip in too.”

Esthy Reko Astuti, director general of marketing, Ministry of Tourism and Creative Economy, said: “What we will do next year is to try and get more participants from more destinations beyond Bali.”

Waka Hotels & Resorts vice president sales & marketing, Dewi Trisnawati, told TTG Asia e-Daily: “As a first-time event, I think this show is quite good. We have seen old and new buyers, as well as some new interest (both for the properties and Bali in general).”

However, a buyer who declined to be named told TTG Asia e-Daily: “While I appreciate the event, I hope the next show would be better organised. It takes a (more) professional organiser to run a travel mart, and see to the appointment matching and scheduling etc.”

Unlike Tourism Indonesia Mart and Expo (TIME), a B2B event that rotates in developing destinations, BBTF is both a B2B and B2C event that will always be held in Bali.

No more shark fin at Marina Bay Sands events, restaurants

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MARINA Bay Sands yesterday announced it no longer serves shark fin in restaurants it owns and operates, nor offers it at MICE events at Sands Expo and Convention Centre.

This initiative, which was piloted in October 2013, is aligned to the integrated resort’s global sustainability strategy – Sands Eco360°, which drives the stewardship of responsible business operations in the areas of green buildings, environmentally responsible operations, green meetings and sustainability education and outreach.

MBS’ MICE clients can choose from the Green Harvest Menu that features ingredients sourced locally to reduce food miles. Additionally, selected seafood served at MICE events as well as restaurants owned and operated by the resort are sourced from suppliers that fish or farm responsibly.

MBS is showcasing its sustainable seafood offerings from June 8 to 15 at its international buffet restaurant, Rise, in conjunction with Singapore’s first Sustainable Seafood Festival organised by WWF. Rise will serve 13 dishes in its special sustainable seafood menu alongside daily buffet menu.

The resort will also work with its tenants to encourage sustainable practices, including recycling, reducing food wastage and removing shark fin from their menus.

Hilton develops five properties in Myanmar, rebrands Thingaha hotels

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HILTON Worldwide yesterday announced the signing of management agreements with Eden Group for five Hilton Hotels & Resorts properties in Myanmar.

Under the agreements, two of Eden Group’s recently opened properties in Naypyidaw and on Ngapali beach in Rakhine State will be rebranded as Hilton Nay Pyi Taw and Hilton Ngapali Beach Resort respectively. They are scheduled to welcome their first guests as Hiltons this October.

Three other hotels will open in the next three years, namely Hilton Bagan and Hilton Inle Lake in 2016, and Hilton Mandalay in 2017.

The 200-room Hilton Nay Pyi Taw will open in time for the ASEAN Summit and ASEAN Plus Summit 2014 in November. The hotel spans more than 404,000m2, and will feature three F&B outlets including an all-day dining restaurant, as well as meetings and events spaces.

Hilton Ngapali Beach Resort, located on the popular beach destination overlooking the Indian Ocean, offers 51 guestrooms. The beachfront property also features an all-day dining outlet, a hotel bar and function rooms.

Hilton Bagan will offer 220 rooms; Hilton Inle Lake, 180; and Hilton Mandalay, 300 with a spacious 1,000m2 ballroom.

Citing 2013’s statistics from Myanmar Tourism, Hilton said in its press statement that the country witnessed about two million tourist arrivals in 2013, a significant increase of over 90 per cent visitors from 2012, and that it is likely demand for rooms will outpace supply in the next five to 10 years.

Andrew Clough, Hilton Worldwide senior vice president of development, Middle East and Asia-Pacific, told TTG Asia e-Daily design adjustments to the hotels in Naypyidaw and Ngapali are being carried out to meet Hilton’s brand standard.
U Chit Khine, Eden Group chairman, told TTG Asia e-Daily: “Although Thingaha (the existing brand for the Naypyidaw and Ngapali hotels) is quite a reputable brand in the country, we still need to learn a lot about hospitality. This is also the right time to bring such a big international hotel chain into Myanmar to promote the quality of services and to access the international market. It is very important for Myanmar to reconnect with international communities.”

Eden Group is one of Myanmar’s largest private companies founded in 1990. Its key business sectors include construction, banking, hospitality, energy and agriculture.