Protracted political protests in Bangkok take shine out of MICE business

February 5, 2014

BANGKOK’S business events industry is flatlining as a result of protracted anti-government protests which have dominated parts of the city for more than three months, resulting in losses of more than 1.2 billion baht (US$36.6 million), MICE specialists say.

DMCs are reporting rising cancellations and a dip in requests for new business as MICE visitors are put off by political turbulence combined with dozens of travel advisories urging visitors to avoid parts of Bangkok, or bypass the city altogether.

Sumlee Anankamanee, Thailand incentives manager at Asian Trails, said the only new business was coming from ad hoc groups.

“No one is coming. No one is asking for (itineraries and quotes) this year, groups are just making requests for next year. There are many cancellations,” she said.
“We had problems in December and January. It should be peak season now, but if there’s more fighting things will get worse.”

Other specialists report equally grim news.

Events Travel Asia said a group of 1,000 pax cancelled in December because of the anti-government protests.

“Requests for new business in Bangkok are declining,” said MICE manager Pom Nopkesorn, who added the DMC has managed to relocate some groups to Malaysia.

“We’re trying to be as positive as possible. We tell clients it is safe to come (as long as) they avoid protest areas.”

IMPACT Arena, Exhibition and Convention Center is facing numerous cancellations, mostly from domestic clients.

For the time being, Chiang Mai and Phuket remain viable alternatives for DMCs trying to convince clients not to cancel, while Pattaya is seen as being too risky due to its proximity to Bangkok.

Thailand Convention and Exhibition Bureau said it has helped minimise cancellations by regularly updating local and international stakeholders on the situation which has been largely confined to certain parts of Bangkok, leaving much of the city unaffected.

The political situation has reduced the number of MICE visitors to Thailand by 13,396 persons, down 7.9 per cent on the bureau’s target of 170,000 delegates from January to February.

Notable cancelled corporate meetings and incentive groups include CommsGroup SKO14 and Thomson Reuters Asia Regional Sales Conference, while ALERE Mega Incentive and the International Congress in Aesthetic Dermatology 2014 have postponed their activities.

Thumbs up for Grand Park Orchard’s handy mobile service

By Paige Lee Pei Qi

February 4, 2014

GRAND Park Orchard Singapore will provide guests with unlimited local and international calls through the introduction of a ‘handy’ smartphone service on March 3.

The free smartphone service, which comes as an in-room amenity, offers guests unlimited international and local calls, unlimited 3G data and Wi-Fi tethering capabilities, as well as a comprehensive city guide.

Darren Ware, general manager of Grand Park Orchard, said: “For today’s traveller, staying connected is important and if you will, at the top of anyone’s travel checklist.”

Created by Tink Labs Singapore, the handy mobile solution is pre-loaded with travel apps including news services, a currency converter, MRT maps as well as a digital location-based city guide.

Ware said: “This is best suited for those who, when travelling, would like to keep to their daily routine, whether it is keeping in touch, staying on top of the news or sharing their travel experiences and photos through social media.”

According to Ware, the hotel has invested close to S$300,000 (US$235,000) on the project. “It is more than just a numbers (cost) game – when the intangible benefits add up, (handy is) aligned with our service philosophy of providing loving hospitality at our hotel.”

The guest’s browsing history, personal information and any additional applications are completely deleted from the device when the handy is reset to factory settings upon check-out.

Ware added that Park Hotel Group is targeting the roll-out of this handy solution to its other two Singapore properties – Grand Park City Hall and Park Hotel Clarke Quay – within the year.

Kerala slashes tax rates for off-peak season

By Rohit Kaul

February 4, 2014

THE Kerala government has announced major tax concessions and a budget of US$33.2 million for the tourism sector this year.

This was announced in the state budget by Kerala’s finance minister K M Mani last week, who said the luxury tax on hotels and resorts will be reduced from 12.5 per cent to five per cent during the low season of June to August.

Convention centres that charge a daily rent exceeding US$320.20 will see the existing 20 per cent tax dropped to 10 per cent, provided the meetings and conventions have been approved by Kerala Tourism.

President of the Confederation of Kerala Tourism Industry, EM Najeeb, said: “High taxation in segments like MICE and hotels have been a bottleneck in the growth of the tourism sector. We welcome the government’s decision to earmark US$33.2 million for the sector and their decision to reduce luxury tax on hotels and convention facilities.”

Arun Anand, managing director of Midtown Travels, said the high taxes had deterred companies interested in holding conferences in Kerala. “However, now we can expect an increase in the number of international conferences taking place in the state.”

Kerala has allocated US$8 million to develop destinations such as Kovalam, Kumarakom, Thekkady, Fort Kochi, Munnar, Wayanad and Vagamon; US$161,000 towards a rural tourism project in Idukki; and US$79,715 for a sea life leisure park in the beach destination of Varkala.

PAL shelves investment plans in Cambodian airline

By Rosa Ocampo

February 4, 2014

PHILIPPINE Airlines (PAL) has deferred investing in a joint venture airline that would have been the second full-service carrier to be based in Cambodia, confirmed PAL president Ramon S Ang.

TTG Asia e-Daily understands that the decision took into account the current political uncertainties in the country.

Under the joint venture deal inked last April, PAL was to invest US$10 million for a 49 per cent equity in the setting up of Cambodia Airlines, with the majority stake going to tycoon Neak Oknha Kith Meng who helms the Royal Group of Cambodia.

Had the joint venture pushed through, PAL was to use its expertise to help Cambodia Airlines build domestic and regional flights.

There are 23 foreign airlines flying to Cambodia, in addition to national flag carrier Cambodia Angkor Air.

Merpati Nusantara Airlines suspends operations on money woes

By Mimi Hudoyo

February 4, 2014

MERPATI Nusantara Airlines has finally bowed under the weight of its debts and halted operations until the end of the month.

In an internal memo issued over the weekend, Merpati’s operations director, Daryanto, said the airline had suspended all flights between February 1 and 5, while the airline’s route permits were suspended until the end of February.

“(With) the decreasing cash-in per day plus the decreasing trust from customers/travel (consultants), we have come to a point where we cannot afford to conduct operational activities,” he said.

“However, as soon as (Merpati) is ready and the situation in the field is conducive, we will serve the routes again.”

The domestic airline has scaled down its fleet and route network since January 27, but it still has to meet payments for insurance premiums, a US$13.8 million tab for state-owned oil company Pertamina, staff salaries owed since October 2013, and now, refunds for the cancelled flights.

The news did not come as a surprise to Indonesian travel companies. The Association of Air Ticketing Companies in Indonesia’s executive director, Pauline Suharno, said: “We have reminded our members to be cautious and not to top up (their ticket sales deposit) too much.”

Incito Tour’s managing director, Ng Sebastian, said his company, which operates in eastern Indonesia, “used to rely on Merpati alone in this area many years ago” but switched to others as carriers such as Wings Air, Susi Air and Garuda Indonesia began entering the destinations.

Sebastian said as an archipelagic country, Indonesia needs a state-owned airline like Merpati to serve pioneering routes.

“Indonesian buying power is increasing and more people can afford to fly. Merpati needs to be saved but the company’s corporate culture needs to change to meet today’s customer demand,” he said.

However, Merpati’s vice president corporate secretary and legal, Riswanto, yesterday issued a statement denying that the airline has stopped operations. According to Riswanto, Merpati is in the process of restructuring and revitalisation and therefore has to reduce flights, but he did not mention which routes were still operational.

Wave of new hotel developments rolls into southern Sri Lanka

By Feizal Samath

February 4, 2014

THAILAND’S Minor Hotel Group (MHG) has signed an agreement with local partner Hemas Holdings for Sri Lanka’s second Anantara resort, part of an influx of new hotels into the country’s south.

Construction of the US$35 million project in the southern coastal town of Kalutara will commence this month and the resort is expected to open in mid-2015 with 141 rooms.

MHG and Hemas last September announced plans for the first Anantara property in Sri Lanka – a five-star, 154-room resort in Tangalle, also in the south.

Both resorts will offer luxury rooms and villas with private plunge pools, two swimming pools, three restaurants and a purpose-built spa each.

Hemas currently operates two Avani resorts in Sri Lanka under its subsidiary Serendib Leisure (TTG Asia e-Daily, November 6, 2012).

Separately, Centara Hotels & Resorts is scheduled to soft open the 165-key Centara Ceysands Resort & Spa Sri Lanka, the group’s second property in the country, in spring this year.

Located on the Bentota Peninsula, two hours away from Colombo and 100km from the international airport, the resort will offer three F&B outlets, a spa, a fitness centre, an oceanfront swimming pool, a children’s pool, a water sports centre and a kid’s club.

Jetwing Hotels last week debuted its latest property – the 80-room Jetwing Yala – near the country’s biggest wildlife park on the south coast.

Sri Lanka is boosting room capacity nation-wide as it aims to reach 2.5 million tourist arrivals in 2016, from just under 500,000 in 2008.

US downgrades India’s aviation rating

By Shekhar Niyogi

February 4, 2014

Jet Airways aircraft — Credit: Jet Airways

THE US Federal Aviation Administration (FAA) last week downgraded India’s aviation safety rating from Category I to Category II, prompting US-based carriers to suspend codesharing practices with Indian airlines.

The downgrade bars Air India and Jet Airways, the only two Indian carriers serving the US, from adding new flights to the country or entering new codeshare agreements with US airlines, though existing flights remain unaffected.

News agency Bloomberg stated that the downgrade was due to India’s lack of action on the safety deficiencies found in earlier assessments but Indian civil aviation minister reportedly said that only two of 31 aviation issues were left unresolved.

Sources from India’s Directorate General of Civil Aviation (DGCA) TTG Asia e-Daily spoke to said FAA concerns have been addressed and that it has recruited 75 specialised personnel to spruce up safety parameters.

FAA’s downgrade places India in the same league as countries such as Zimbabwe, Paraguay and Indonesia. United Airlines and American Airlines Group have both reportedly withdrawn their booking codes from flights operated by Indian carriers, according toBloomberg.

However, India’s travel trade appear unperturbed by the news. Rajendra Churiwala, director-eastern region, IATA Agents Association of India, said: “This does not imply that our airlines are unsafe. It is prodding DGCA to enhance its monitoring mechanism of Indian carriers’ safety performance norms. It is a prohibitive measure, not a punitive one.”

Sanjay Kothari, managing director of Just Holidays, noted that the downgrade would likely cramp plans by Air India and Jet Airways for more transatlantic flights.

“However, this is a temporary situation and quick compliance (with FAA standards) will reverse the restriction within a few months,” he said.

Affordable luxury rooms (part 2)

By Raini Hamdi

February 4, 2014

The space between economy and luxury is hotting up as a string of new mid/upscale hotel brands hits the region and jostles to be the most relevant to value-minded Asians. By Raini Hamdi

Brand name LEISURE INN

By StayWell Hospitality Group, Australia

Positioning 3.5 star

Competitive set Includes brands like Country Inns & Suites by Carlson

Rate US$48-US$80 in the Indian market

Why it is needed There is a growing middle class in the country that is looking for quality world-class budget accommodation. We believe that even corporate travellers would prefer to stay in a product like ours that offers all the services at a competitive price.

Our product is fresh and young with a focus on F&B. The existing hotels in this segment in India don’t concentrate on F&B. We will be having speciality restaurants in all of our Leisure Inn properties in India.

How it reinvents mid/upscale We emphasise on location, extensive facilities, well-appointed rooms and international standard services, which properties operating in this bracket don’t offer.

In our properties a guest will get facilities like 24-hour service, multiple restaurants, coffee shop and banquet space, which are generally expected in a four or five star property. Even though we have international expertise, we focus on local experience. So in our properties, local people are hired to run the hotel, as they understand the needs of that particular market.

How many in operation One in Jaipur, Rajasthan

Expansion plans The group is looking to open Leisure Inn properties in cities like Hyderabad, Greater Noida, Raipur, Chennai, New Delhi, Thane and Bengaluru in 2014.

Internationally, it is looking to come up with properties in China, Abu Dhabi, Qatar and the UK. The group has a target of more than 100 hotels within the next three years across Australia, South-east Asia, India, China and Europe.

Rohit Vig
Managing director, StayWell Hospitality, India

Brand name OASIA HOTELS & RESIDENCES

By Far East Hospitality, Singapore

Positioning 4.5 star

Competitive set In Singapore, Sheraton Towers and Royal Plaza on Scotts

Rate From S$200 (US$158)++

Why it is needed Oasia is our differentiated offer to business travellers who desire comfort without excess, aesthetics without ostentation, attention without pretension, relevance with elegance. We take into consideration business travellers’ focus on their work and ensure every component of our service and design complements their mission. Rooms at 25m²are modestly sized and designed to optimise comfort whether they choose to work or rest. The hotel’s unique club lounge that extends into a lap pool also provides another option for them to unwind after a hectic day.

How it reinvents mid/upscale We bring first-class experience to this segment but still maintain exceptionally reasonable prices for our guests. The high standards of guest experience that we provide are possible because we constantly reinvent the benchmarks that are typically associated with hotels under this category. We believe in adopting efficient designs and deployment of manpower, and this allows our guests to enjoy benefits that rival those of luxury hotels. This includes Oasia’s central location, comfortable rooms, well-equipped gym, unique club lounge and easy access to other facilities in a mall connected to the hotel.

How many in operation One in Singapore

Expansion plans Three planned

Arthur Kiong
CEO,
Far East Hospitality Management, Singapore

Brand name Brand name OZO

By Onyx Hospitality Group, Thailand

Positioning 3.5 star

Competitive set Includes Ibis, Ramada Encore, Park Inn, Marriott Courtyard, Centra Hotels and Resorts

Rate The lead-in rate for Ozo Wesley Hong Kong is HK$1,300 (US$170). In Ozo Samui, launching early this year, it will be from 3,000 baht (US$91)

Why it is needed Guests are becoming more savvy and are looking for quality services, connectivity and comfort at a reasonable price. We recognise that this segment is becoming increasingly popular, especially as both business and leisure travellers are looking to reduce costs and maximise their value for money. Ozo is a refreshing alternative to other select service brands. There is no compromise on the quality of product, from the comfortable bed, to bathroom amenities, technology and connectivity.

How it reinvents mid/upscale Ozo aims to surprise guests with the room product and service culture. Staff are trained to offer useful and intuitive assistance on the local area; in fact, each has his own specialist subject. Ozo understands that today’s traveller is short on time, so the rooms are cleverly designed, making sure no time is wasted looking for switches or trying to figure out the shower. Even checking in is fast and paperless via a tablet.

How many in operation The first Ozo in Hong Kong opened in May 2013

Expansion plans Six under development, two due to open this quarter in Colombo and Koh Samui. They will be joined by Ozo hotels in Pattaya, Kandy, Galle and Penang soon after.

Duncan Webb
Chief commercial officer,
Onyx Hospitality Group, Thailand

Brand name PARK INN BY RADISSON

By Carlson Rezidor Hotel Group, US

Positioning 3.5 star

Competitive set International midscale brands

Rate US$80-US$120

Why it is needed The emergence of the middle class in India, China, the Philippines and Indonesia, together with the increase in infrastructure investment, will spur not only domestic travel but an increase in travel within Asia-Pacific. India’s rapidly growing middle class is expected to have 583 million people by 2025. The Chinese government’s investment of RMB10.7 trillion (US$1.8 trillion) in infrastructure over the last five years will fuel domestic travel. This increase in travel will result in a growing requirement for midscale hotels in key locations, especially in tier II cities that can meet the demands of these new savvy travellers. These travellers seek consistently clean, friendly and affordable accommodation when they travel for business or leisure.

How it reinvents mid/upscale Designed for the Gen Y traveller, the Park Inn by Radisson is a friendly, fresh, vibrant and uncomplicated midscale brand with a 26-year track record of delivering a quality guest experience. Newly launched in Asia-Pacific, the new generation Park Inn by Radisson focuses on providing the modern essentials of a great hotel stay that resonates with today’s business and leisure travellers.

Park Inn by Radisson delivers a great night’s sleep in a flexible and connected room. The hotel’s lively, colourful design will appeal to Gen Y traveller while its ‘Adding Colours to Life’ philosophy enables the brand to deliver a quality experience that takes into account local cultures and preferences. Its restaurant and bar as well as meetings and leisure facilities are deliberately geared at the traveller of tomorrow. Guests enjoy free Internet access.

How many in operation 128 globally, four in Asia-Pacific

Expansion plans Globally there are 67 hotels in the pipeline, seven scheduled to open in Asia- Pacific.

Simon Barlow
President Asia-Pacific,
Carlson Rezidor Hotel Group, Singapore

Brand name PENTAHOTELS

By Rosewood Hotel Group, Hong Kong

Positioning NA

Competitive set Aloft, Hotel Indigo, and Ace Hotel internationally

Rate In Hong Kong, over US$100; in Shanghai, US$75-US$100

Why it is needed Pentahotels guests are road warriors, local digital nomads and independent-minded travellers who are looking for affordable yet stylish accommodation, with add-ons like free Wi-Fi, plus a cool communal space where they can relax during downtime.

Pentahotels’ mix of fun with functionality, comfort with creativity and style with simplicity, has established its appeal in Europe and is set to take off in Asia among travellers with the same mind set and needs. It’s a ‘neighbourhood lifestyle’ approach, with a cool, hip vibe.

How it reinvents mid/upscale Pentahotels pushes the design envelope in a direction that’s not typically taken in Asia. The signature Pentalounge – an upbeat combination reception, lobby, bar and café – is a new ‘third place’, an extension of one’s lifestyle and a gathering place for both guests and neighbours. The hotel eliminates unnecessary frills in favour of fuss-free efficiency and uncomplicated comfort, while New York loft-style guestrooms, contemporary rustic décor, quirky, local cultural references, and fun and friendly service create a singular hospitality experience.

How many in operation 18 (three in Greater China – Hong Kong, Beijing, Shanghai; 11 in Germany, one in Austria, two in the UK and one in the Czech Republic

Expansion plans Pentahotels will open in urban centres and tourism hubs in China and key Asian gateways, in locations ranging from downtown areas, airport and railway complexes, to resort and beachfront locations. Projects already announced include three hotels in China (Shenyang, Guiyang and Luohe), four hotels in the UK and five hotels in Belgium, with a target of 80 Pentahotels in operation or under development by 2020.

Sonia Cheng
CEO,
Rosewood Hotel Group, Hong Kong

Brand name SEDA

By Ayala Land Hotels and Resorts, Philippines

Positioning Just above four star

Competitive set Undisclosed

Rate Examples, Seda Fort Bonifacio Global City, from 6,000 pesos (US$135)+++; Seda Abreeza in Davao City, from 4,200 pesos +++

Why it is needed There is a tremendous opportunity in the country’s flourishing foreign and domestic tourism industry. Our Seda hotel line is well-positioned to capture more than its fair share across various regions with our superior product and strategic location within Ayala Land’s mixed developments.

How it reinvents mid/upscale Seda offers a new concept in hospitality: urban lifestyle hotel. It offers a fluid hospitality experience with modern accommodation, state-of-the-art technology and exceptional service – all supporting the excellent value-for-money proposition.

Seda is Filipino for ‘silk’, a distinct fabric that represents the brand’s commitment to providing a seamless accommodation experience.

As each Seda hotel is easily accessible to an Ayala mall and office spaces, it offers the convenience and security of a high-energy, central location, combined with warm, efficient service and global best practices. It is designed as an ideal environment where relaxation, play and work can mix.

With Ayala Land as developer and operator of the brand, Seda can respond to market needs faster and exercise more flexibility in giving its clients better value.

How many in operation Three, in Metro Manila, Cagayan de Oro City and Davao City. Seda Nuvali Laguna will open in the first quarter

Expansion plans In development are Seda Vertis, Quezon City and Seda Circuit, Makati, both targeted to open within the next two to three years. Further expansion is in the works as Seda hotels are intended to be an integral part of Ayala Land’s mixed-use development projects in key cities of the Philippines.

Andrea Mastellone
Group general manager
Seda Hotels, Philippines

Additional reporting from Mimi Hudoyo, Rohit Kaul and Rosa Ocampo

This article was first published in TTG Asia, January 17, 2014 on page 11. To read more, please view our digital edition or click here to subscribe.

Nadda Buranasiri appointed CEO of Thai AirAsia X

By TTG Asia

February 4, 2014

AIRASIA X has announced the appointment of Nadda Buranasiri as CEO of the Thai AirAsia X, which recently received the Air Operator’s Certificate from the Department of Civil Aviation of Thailand.

Nadda brings with him over 20 years of international general management experience across global multinational organisations.