Selangor looks to MICE to bump up tourism earnings

January 27, 2014

EAGER to boost its overall tourism industry performance and improve average occupancies in four- and five-star hotels, the Malaysian state of Selangor is looking to strengthen its positioning as a business events destination.

In an interview with TTGmice e-Weekly, Selangor Tourism general manager, Noorul Ashikin Mohd Din, revealed that the bureau is targeting business event groups from Australia, the Middle East and regional markets.

Included in Selangor Tourism’s action plans is an updated business events directory which will be ready by end of this year. The directory will provide a listing of meetings, accommodation venues and attractions in the state, among other details.

MICE hardware will improve through the launch of a new convention centre in Selangor’s Shah Alam by 4Q2014. Ideal Convention Centre will be the largest venue of its kind in the state. Spread across 8,674.4m2, the venue will comprise 11 halls in four different sizes. It will be able to accommodate up to 8,000 guests.

Ideal Convention Centre will join two other private venues that had opened in Shah Alam in recent years. The latest is Midlands Convention Centre which opened last month in Section 7, Shah Alam. The purpose-built venue can host up to 2,500 people in theatre set-up. The other is Setia City Convention Centre which started operations in late 2012.

Also keen to court business events, especially those from Indonesia and the Philippines, is i-City Properties which has added new attractions to its i-City theme park. According to the company’s sales manager, leisure division, Norsyuhaini Mohd, a Best Western hotel will open within the theme park by the last quarter of the year.

Saini Vermeulen, head of international sales, Panorama Tours Malaysia, said the new event spaces would provide more options for meetings and noted that events hosted in Selangor would cost some 30 per cent lower than the same in nearby Kuala Lumpur.

“(Selangor’s) lower prices are especially attractive to the price-sensitive regional markets,” he said.

Sachin Bansal, director of ABS Holidays in Delhi, said: “With Malindo Air’s new Delhi-Kuala Lumpur flights, we anticipate MICE demand to Malaysia to pick up significantly this year. Thus, it would be helpful if Selangor Tourism could keep us updated with new product developments.”

Darren Shaw named Centara’s area GM

By TTG Asia

January 27, 2014

CENTARA Hotels & Resorts has promoted Darren Shaw from general manager of Centara Karon Resort Phuket to area general manager of the two properties of Centara Grand Phuket Beach Resort Phuket and Centara Villas Phuket.

An Australian national, Shaw has over 20 years’ experience in the hotel industry, with leading hotels including Watermark Hotel and Spa in Australia, and Outrigger On-The-Lagoon Fiji, where he began as General Manager in 2006.

He first moved to Thailand in 2010 as general manager with Laguna Phuket resorts complex before joining Centara in February 2012.

Airline announcements pave Asian way to Spanish skies

By David Ing

January 24, 2014

AIR connections between Asia and Spain will see a boost with Air China’s new Beijing-Barcelona service and Air Europa’s freshly sealed codeshare agreement with Etihad Airways.

Air China will open its second route to Spain on May 5 with a four-times-weekly Beijing-Barcelona service via Vienna, operated with the Airbus A330-300.

Air China’s local sales representative, Marta Ortiz, said the airline has been preparing for the launch since end-2012 and expects a lot of traffic from the Barcelona end.

Fabrizio Guidoni, sales and contracts director at inbound operator Gartour, which has offices in Beijing, Guangzhou and Shanghai, said Spain had lacked the direct connections to Asia, which made it hard to include in the European packages popular with the Chinese.

“(The new flights) will be very useful for us, not only for tours taking in Spain itself but also extending them to Portugal,” said Guidoni, but cautioned that the success of this endeavour would depend on marketing efforts by Spain and Portugal.

Separately, Globalia’s Air Europa has inked a codeshare agreement with Etihad Airways. Juan José Hidalgo, president of Globalia, said at FITUR that the aim is to establish a “gateway to countries such as India, China, Australia and other eastern destinations”.

The accord will begin by offering connecting flights through other Etihad destinations in Europe before Air Europa launches a direct thrice-weekly service between Madrid and Abu Dhabi by end-2014.

With the Spanish airline also expanding its network in the Americas, Hidalgo described the agreement as a “perfect link for connecting the Americas and Asia” via the two cities.

Manager for Spanish-speaking countries at Asian inbound agency Fantastica China, Zhou Fan, said: “Getting more flights is very good for receptive and outbound…This will help a lot after a weak period (when Spanish tourists were hit by the economic crisis).”

But while welcoming “more options”, Javier Salvador Parra, group managing director at Philippines-based operator Indochina Strings.com said the new partnership might struggle against “well-established” Gulf airlines, Qatar Airways and Emirates.

Bangkok state of emergency impacts Lunar New Year bookings

By Prudence Lui

January 24, 2014

FOLLOWING the declaration of a state of emergency in Bangkok earlier this week, Asian travellers are cancelling or diverting their Thailand trips over the Lunar New Year period as their own governments roll out travel advisories.

The situation is even more pronounced in Hong Kong, whose government has issued a black alert for travel to Bangkok, indicating citizens should avoid all trips to the city. The travel alert status for the rest of Thailand remains amber.

Travel Industry Council Hong Kong’s executive director, Joseph Tung, said: “We don’t have any tour groups there right now…The Lunar New Year is usually a peak season for the trade with 3,000 pax leaving for Bangkok per day on average. We estimate the loss of about 20,000 heads in total.”

His members plan to resume Bangkok departures after mid-February if the situation improves.

Hong Kong-based Morning Star Travel Service, general manager, Dannia Cheung, commented: “We used to have seven to eight Bangkok tours per day but it had been down to two since Christmas, and now with the black alert, it’s all stopped.

“Frankly, this is worse than the previous political crisis a few years ago as it is happening during the two high seasons – Christmas and the Lunar New Year. Hopefully, everything will be cleared up in March and we can make up for the loss by pushing Easter holidays.”

Malaysia’s Ministry of Foreign Affairs of issued a travel advisory a day after Bangkok’s state of emergency was announced. Almost all clients of Malaysian Harmony Tours & Travel have postponed their trips to Bangkok since, said CEO Cooper Huang, who added: “We offered them a full refund.”

Stephen Thomas, managing director of Topaz Travel & Tours in Kuala Lumpur said leisure clients who had made Lunar New Year bookings to Phuket, Koh Samui and Chiang Mai are now considering either postponing their trips to Thailand or changing destinations.

“People are fearful,” said Thomas. He said his company has not received any new bookings to Thailand recently.

Sri Lankans travellers are choosing to take their holidays elsewhere. Suresh Mendis, CEO of Classic Travels in Sri Lanka, said travel to Thailand has been at a standstill for the past three to four weeks. “No one is travelling to Thailand, and Malaysia is the next best option.”

Sri Lanka-based VMS Travels & Tours’ CEO, Sasi Ganeshan, said that Thailand is the most popular destination for Sri Lankan travellers, with 3,000 to 4,000 departures to Bangkok weekly.

However GT Jayaseelan, chief marketing officer for SriLankan Airlines, said there has not been a sharp drop in departures to Thailand. “However we see a drop in the Chinese going to Bangkok (from Beijing via Sri Lanka),” he said.

Nalin Jayasundera from Aitken Spence Travels, an inbound operator, said travellers were so far not rescheduling trips to Sri Lanka.

Additional reports from S Puvaneswary and Feizal Samath

TAT invites longhaul markets to Experience Thainess

By David Ing

January 24, 2014

THE Tourism Authority of Thailand (TAT) is hoping its recent win at FITUR 2014 for a village stay initiative will inspire more southern Europeans to try the experience for themselves.

Launched two years ago, Experiencing Thainess took home a prize in the cultural category in FITUR’s Active Tourism awards, a first for the country.

Major tour operators such as TUI already feature Experiencing Thainess in their programmes and the experiential village stays are proving popular among younger tourists from northern Europe. While this has yet to catch on in southern Europe, TAT executive director for Europe, Tanes Petsuwan, has set a target of getting 20 per cent of Spain’s 123,000 tourists to spend at least part of their holidays in villages.

Commented Tanes: “(The scheme works because) local people also love meeting foreigners, so it’s good for both sides.”

A typical programme consists of tourists spending one week in a village and another in a hotel, and the number of villages involved has doubled to more than 30 since the scheme began, ranging from farming settlements in the north to fishing communities in the south.

Tanes said: “It is not only the places visited (on holiday) but the people who are important. Our research shows visitors keep going back to Thailand because of the local people.”

He hoped the award “will be the motor to attract more tourists”.

Euromic on international membership recruitment drive

By Greg Lowe

January 24, 2014

TRAVEL specialist association Euromic plans to aggressively expand its membership beyond Europe and will attend IT&CM Asia later this year as part of its drive to build its network and brand presence across Asia-Pacific.

The invitation-only association, which was formed 40 years ago and only allows one DMC per member country, previously restricted full membership to markets within Europe and the broader Mediterranean region. World Affiliates were introduced a few years ago to incorporate DMCs from other parts of the world.

Joe Lustenberger, director of marketing for Euromic, said the association voted at its annual general meeting in Cairo to convert all affiliates into members with full voting rights. Euromic will also seek to bring more DMCs from markets outside of its traditional territory into the network.

“Destinations (where the association has no member) that are good for incentives, have the necessary infrastructure and air access will be on our target list,” he said. “These could be places like Malaysia, Singapore and Australia.”

Currently the six affiliates – including Creative Destination Management, Destination China and Creative Travel in Thailand, China and India respectively – will be upgraded, bringing the association’s membership to 36 countries.

Euromic, which is considering opening an office in Asia to support its expansion drive, will bring eight buyers to this year’s IT&CM Asia in Bangkok to connect with local travel specialists and gain better insight into the Asia-Pacific market, he said.

Eduarda Neves, managing director of Portugal Travel Team, is one of the buyers who will attend the October event for the first time. She said she is keen to build new business with clients from within Asia who are interested in visiting Portugal as part of single- or multi-destination tours to Europe, especially those from Thailand, Malaysia, Singapore and Indonesia.

However, her company first needs to develop a better understanding of what Asian leisure and MICE travellers want. “I’ve never been (to IT&CMA) before,” said Neves.

“We don’t understand the market in Asia, so we want to find out how it works and who operates it – especially for MICE.”

South Africa hunts for more Indian traffic

By Rohit Kaul

January 24, 2014

SOUTH African Tourism yesterday wrapped up a four-city roadshow in India in its latest and biggest travel trade engagement exercise in the country so far.

A total of 66 South African suppliers participated in the roadshow, which covered Kolkata, new Delhi, Chennai and Mumbai.

Speaking to TTG Asia e-Daily ahead of the Chennai and Mumbai instalments, Hanneli Slabber, country manager for South African Tourism India, said: “We are expecting the participation of 1,000 travel consultants…The roadshow in Kolkata was attended by 155 Indian travel consultants and in Delhi we saw close to 400.”

Other upcoming initiatives include a multi-city training roadshow from June to July featuring 15 suppliers, the promotion of adventure offerings to draw Indian youth, and this week’s kick-off of the Ticket to South Africa advertising blitz featuring cricketeer Jonty Rhodes.

India ranks seventh as a source market for South Africa, sending 76,116 tourists or an 8.4 per cent year-on-year rise, between January to August 2013. It expects 133,000 visitors this fiscal year.

Evelyn Mahlaba, regional director, Australasia, South African Tourism, said India became a core market three years ago and arrivals have been growing “extensively”.

Cindy Sheedy Walker, CEO of Extraordinary, a collection of luxury lodges and hotels in South Africa, noted: “Earlier there were specific destinations that were popular among Indian travellers. But now there are more geographical locations sought by them.”

Cost-cutting clients back out of DMC proposals

By Greg Lowe

January 24, 2014

DMCs are facing increasing pressure from clients who request tour and incentives proposals only to go direct to suppliers in a bid to cut costs, according to travel specialists attending Euromic’s annual general meeting in Cairo.

The situation has worsened over the past year due to the effects of sluggish regional economies which have crimped corporate and business travel budgets.

Sara Merino, director of sales and marketing at Spanish Heritage, said the problem is becoming increasingly commonplace with clients wanting to arrange incentive travel to the UK.

“Proximity is an issue,” she said. “They think because England is so close they can do it themselves. So they contact us and then take our ideas and go direct to the hotels (and other suppliers). It’s very frustrating.”

Furthermore, it is difficult for DMCs to add value simply by reducing the cost of accommodation, which remains one of the most expensive components of an incentive programme, due to the slim discounts offered by some hotel groups, she said.

Alexandra Heemskerk-Teyema, director of Delta Amsterdam Event Management and Destination Services, said her company had faced similar issues. “However, over the past six months most (clients) have come back. Maybe they had some bad experiences (trying to do it themselves).”

Gloria Spotti Hinch, executive vice president of Events.COM, said travel specialists should be more confident about charging conceptual fees as a deterrent against clients who request multiple proposals simply to gain ideas and supplier contacts for free.

“We (successfully) charge for the concept,” she said. “If a client wants us to develop a programme for them, why should we do that for free? It costs us time and money.”

However, corporate buyers and incentive houses attending the Euromic event said they have not seen DMCs charge for proposals, adding that if a company does so its bid would likely be rejected.

IHG to launch InterContinental hotel in Bandung

By TTG Asia

January 24, 2014

INTERCONTINENTAL Hotels Group (IHG) will open the InterContinental Bandung Dago Pakar later this year in Indonesia’s third largest city.

Located in the Dago Pakar development that is north-east of the Bandung city centre, the hotel is seven kilometres from Husein Sastranegara International Airport and three kilometres from the city’s commercial hub.

The property will offer 204 rooms and 19 villas, an all-day dining and a specialty restaurant, health club facilities and a spa, as well as one of the largest ballrooms in Bandung for events and meetings.

The Dago Pakar project is set in the prestigious Dago neighbourhood and will feature an 18-hole golf course, commercial, retail and residential areas as well as an international school and botanical gardens.

Clarence Tan, COO, South-east Asia and resorts, IHG, commented: “Indonesia is a key market for IHG, and home to one of our largest development pipelines in South-east Asia. The new Indonesian property is a strategic part of our expansion plans for the InterContinental Hotels & Resorts brand, which will more than double in the country during the same period.”

IHG recently announced its first Holiday Inn Express hotel in Jakarta (TTG Asia e-Daily, January 21, 2014) and currently operates eight hotels across four brands in Indonesia.

The hotel operator will launch InterContinental Bali Canggu Resort and InterContinental Jakarta Pondok Indah Hotel & Residences by 2016.

Affordable luxury rooms

By Raini Hamdi

January 24, 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 ATRIA HOTEL & CONFERENCE
By Parador Hotels & Resorts, Indonesia

Positioning Four star

Competitive set Other four star brands with MICE facilities, such as Mercure, Santika Premier, Novotel, Aston and Harris Hotels

Rate Atria Hotel & Conference Gading Serpong, Tangerang (off Jakarta) from US$100

Why it is needed According to the Central Statistics Agency, Indonesians undertook about 236 million domestic trips in 2011 and this number will continue to rise with the promising middle class market. The increasing number of budget airlines will certainly increase the number of domestic travellers in the country. Therefore, our future development focus will be on midscale brands such as Atria or our three-star Ara Hotels.

How it reinvents mid/upscale A conference hotel focusing on MICE. We accommodate individual business traveller needs by providing value such as free WiFi connection of up to 10 Mbps.

We aim to become a leading conference hotel in the region, and have dedicated staff to achieve this with a ‘warmth & comfort’ service philosophy.

How many in operation Four in Tangerang (off Jakarta), Magelang (Central Java) and Malang (East Java)

Expansion plans Five more hotels to open in stages up to 2019

Ricky Theodores
Vice president
Parador Hotels & Resorts, Indonesia

Brand name AVANI HOTELS & RESORTS
By Minor Hotel Group, Thailand

Positioning 4.5 star

Competitive set Includes Aloft, Angsana, Pullman, Andaz and Hotel Indigo

Rate Lead in price in Sri Lanka tends to be about US$150++ and Vietnam US$100++

Why it is needed Launched in 2011 to complement the five-star Anantara brand. Avani offers relaxed comfort and contemporary style in city and resort locations to guests who value details that matter.

How it reinvents mid/upscale The name stems from the Sanskrit word, ‘earth’, which Avani expresses through a grounded personality and simple sense of style. Each resort exhibits a passion for design, an emphasis on tailoring details to deliver complete satisfaction, and service that is genuine and spontaneous.

How many in operation Three resorts, two in Sri Lanka and one in Vietnam

Expansion plans 2014 will see new additions to the brand in Malaysia (Sepang), Vietnam (Hai Phong), Thailand (rebranding of Amari Atrium Bangkok) and Seychelles Barbarons.

In the pipeline are Avani properties in Bali, Ambalangoda (Sri Lanka) and a second property in Bangkok. We expect to shortly make an announcement on developments on the African continent.

We plan to grow the brand across Asia, Africa and the Indian Ocean and in the Middle East.

Dillip Rajakarier
CEO
Minor Hotel Group, Thailand

Brand name BEST WESTERN PLUS

By Best Western International, US

Positioning Four star

Competitive set Novotel

Rate On average US$90

Why it is needed Best Western has traditionally offered customers hotels based on the core values of comfort, value for money and excellent service. But as we expand into new markets, especially in Asia and the Middle East, there is a need to cater for customers who want these qualities, but also that little extra. Best Western Plus offers more upscale amenities and facilities such as a fitness centre, business centre, spacious in-room work areas and a range of products tailored to the needs of each market.

How it reinvents mid/upscale Many international hotel companies operating today start in the upscale sector, then try to expand into other segments. Best Western, on the other hand, has a proud 66-year history in the midscale segment and understands the needs of the everyday hotel customer.

How many in operation 11 in Asia and the Middle East, with just over 1,200 rooms. Thailand and India are our biggest markets for the brand (three hotels each); two in the Philippines and two in Saudi Arabia.

Expansion plans 10 more are set to open in Asia and the Middle East, adding a further 1,700 rooms. Indonesia and Malaysia will see three new Best Western Plus hotels. Firm plans for two hotels in Bangladesh.

Glenn de Souza
Best Western International’s vice president,
International Operations Asia & Middle East,
Thailand

Brand name COUNTRY COMFORT

By SilverNeedle Hospitality, Singapore

Positioning 3.5 star

Competitive set Best Western Plus, Country Inn & Suites, Hampton Inn, Holiday Inn Express, Premier Inn, Travelodge (Australia), Wyndham Garden Hotel

Rate A$100 (US$89) to A$150 in Australia and New Zealand under the existing brand

Why it is needed Country Comfort, a well-known brand in Australia and New Zealand, was recently rebranded and updated with a fresh identity and look. The 28-year-old brand will spearhead new franchising business in its existing ANZ markets and the broader Asia-Pacific region. The target market comprises travelling sales people, small business owners and mid-level managers that spend more than half their time on business on a limited per diem budget. The refreshed brand promises convenience, quality and value.

How it reinvents mid/upscale By delivering what road warriors need the most and removing what they don’t, so they avoid unnecessary expenses. Guests will still enjoy an excellent stay, including the best-in-category sleep experience with superior amenities including a high-quality bed, an invigorating shower experience and a nutritious breakfast. Apart from competitive rates, a Fair Value Promise includes free Wi-Fi, local calls and mini-bar items priced 30 per cent above local convenience stores. Laundry and dry cleaning will also be just 20 per cent above street pricing.

How many in operation None under the refreshed Country Comfort brand; 23 under the existing brand

Expansion plans Aggressive expansion planned for the next five years. Actively pursuing opportunities to manage, lease or franchise Country Comfort in South-east Asia, North Asia, South Asia and Australia/New Zealand.

Brand name NEXT HOTELS

By SilverNeedle Hospitality, Singapore

Positioning 4.5 star

Competitive set Aloft, Crowne Plaza, East, Pan Pacific, Radisson Blu, Traders

Rate From A$230 (US$205) at Next Hotel Brisbane

Why it is needed Next Hotels is a game-changing concept created specifically for the modern business traveller. Guests demand full control over their time, particularly when they are travelling in unfamiliar cities, often on a budget and busy schedules. At Next Hotels, that control rests with guests as cutting-edge technology puts them in charge of everything they do, from reservations to check out. Using the Next Hotels mobile app, guests can check in before arriving through an encrypted code and access their rooms, bypassing the reception desk.

How it reinvents mid/upscale By committing fully to the core concept of having services work according to the guests’ wants, needs and more importantly, schedule. Along with the technology aforementioned, Next Hotels will also feature smart spaces and intuitive service. The Club Lounge, another innovation, is an exclusive space designed to work around each guest’s schedule. It features the ‘in transit zone’ comprising full shower facilities, luggage storage lockers and recliners. Guests can relax during early check in, use free Wi-Fi, or freshen up for late flights after check-out without disrupting their plans.

How many in operation The first Next will open in Brisbane in mid-2014

Expansion plans The second will be in Colombo in a mixed-use lifestyle centre that includes a lifestyle mall and high-rise residential tower.

Iqbal Jumabhoy
MD/group CEO, SilverNeedle
Hospitality, Singapore

Brand name DORSETT; SILKA HOTELS

By Dorsett Hospitality International, Hong Kong

Positioning Dorsett (four star); Silka Hotels (three star)

Competitive set Dorsett: Novotel, Traders; Silka: Ibis

Rate Dorsett’s ADR Jan-Nov 2013: HK$900 (US$116); Silka HK$600

Why it is needed The market is dominated by international hotel chains from outside Asia and this is where we make a difference. Being a true Asian-based company, we have a better understanding of the needs of our Asian travellers, in particular, with regards to hospitality and service.

How it reinvents mid/upscale Dorsett are contemporary midscale hotels in carefully chosen urban locations, providing business and leisure travellers with instant, easy access to city centres and business centres. Anchored in Asian traditions of hospitality with flashes of eclectic British touches, these hotels are energetic, innovative, dynamic destinations designed to create a more energised business and leisure travel experience.

Silka Hotels Designed with the value-savvy and smart traveller in mind, Silka Hotels offer the best in convenience and comfort, providing hassle-free hospitality essentials.

Quick, easy and efficient, Silka targets customers who are looking for the basics done right, with great service and value.

How many in operation Seven Dorsett hotels (two in China, three Hong Kong and one each in Singapore and Malaysia)
Five Silka Hotels (three in Hong Kong and two in Malaysia)

Expansion plans Eight Dorsett and one Silka are in the pipeline. The group has a strong appetite to grow all its brands, which also include Dorsett Grand and a boutique brand d.Collection, in South-east Asia, with an eye on Australia, more in the UK and Continental Europe.

Philip Schaetz
Senior vice president sales & marketing,
Dorsett Hospitality International, Hong Kong

Brand name EATON

By Langham Hospitality Group, Hong Kong

Positioning 4.5 star

Competitive set Our aspirational competitive set (based on design) includes Ace Hotel, Nolitan, Casa Camper and Mama Shelter. Actual depends on location

Rate From US$150

Why it is needed Eaton hotels are for the cosmopolitan, adventurous, culturally savvy traveller interested in a lifestyle, fun and affordable stay. This brand bridges the gap between a four-star and five-star.

We understand that different travellers have different needs. So we came up with options like the Smart Room and Family Room, in addition to conventional rooms and suites, all within a reasonable price range and done with great style and design, together with great service and eco-chic hospitality solutions.

Eaton hotels are located in the heart of the city and local experiences. For example, in Eaton Hong Kong, guests can explore the local culture by participating in a series of free hotel activities such as local tours to the nearby tourist spots and daily tai-chi classes.

How it reinvents mid/upscale ‘Cool living’ with style and sustainability is what Eaton is about. Guests get great value in well-designed, functional rooms with all the essentials, and honest, reliable, dynamic service. Our Social Hub brings people together to work and play. Eaton’s Affordable Art programme is our way to help new artists to showcase their art using our public spaces as an open gallery. There is a trendy bar with fantastic cocktails and remarkable DJs.

Our design-led rooms are created for guests seeking a more flexible option of a guestroom. These open-plan rooms are suitable for guests travelling alone for leisure or business.

How many in operation Five (Hong Kong, Toronto, New Delhi and two in Shanghai)

Expansion plans We are looking at expanding and increasing our Eaton hotel footprint globally at the right location, with the right partner and opportunity.

Simon Manning
Vice president, sales and marketing,
Langham Hospitality Group, Hong Kong

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.