WOTIF Group is hoping to turn around its underperforming Asia business with yesterday’s launch of dynamic Asian packages on Wotif.com targeting Australian outbound as well as a new marketing campaign to be rolled out next month for its two brands in the region, Asia Web Direct and LateStays.com.

Managing director and group CEO, Scott Blume, who took over the reins of the company earlier this year, said: “We need to get back to where we were. Asia was down 20 per cent last year (in room nights).”

The strategy is two-pronged: wooing existing Australian customers who currently don’t use Wotif for their outbound travel to Asia while increasing the group’s share of intra-Asian travel by ramping up investment in its two brands here.

Wotif.com’s new dynamic packaging technology went live yesterday, building on the success of its theatre package offered in Australia. Combining land and air components, domestic and international packages may include flights, hotels and transfers.

Said Blume: “We know there’s a market for us. Australians, particularly those travelling shorthaul to all the standard Asia destinations, are very comfortable buying a package. They are not so sensitive about which hotel they stay at.

“Our DNA and history are around domestic hotels, and that strength will continue. But as proven with flights (total transaction value is expected to increase by more than 30 per cent over the first half of the prior year), our subscribers trust us. If we can serve relevant content, it’s a natural fit for us.”

When asked if he saw a slowdown in outbound this year due to the weakened economy, Blume said Australians are still travelling, adding that even the offline players are not witnessing cutbacks.

The company is continuing to build its inventory in Asia, where it currently already works with around 9,000 hotels.

“We’ve got people on the ground throughout all the key cities in Asia who can get the content for us directly…In cities where we are weak, like in Japan, we’ve done the Rakuten (content sharing) deal. Nine of the top 20 destinations that Australians travel outbound to are in Asia,” explained Blume, singling out Bali, Phuket, Koh Samui, Singapore and Hong Kong.

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THE long-overdue development of the Mandalika Resort in Lombok will finally kick off with road construction in the 400-hectare first phase development, starting in November.

Developed and managed by Bali Tourism Development Corporation (BTDC), the Mandalika Resort project covers a total area of 1,175 hectares and will be developed in three stages, with a target to complete by 2020.

The US$233.2 million road construction project in the first phase will finish in August 2014.

Come June 2014, the construction of solar cell electricity and telecommunication facilities will start, as will three hotels and an 18-hole golf course designed by Robert Trent 2.

BTDC director of development, Edwin Darmasetiawan, said: “The development of the hotels will start with Club Med and Marriott Vacations, both with large membership bases. Kicking off projects such as these, we hope to be able to start building traffic.”

Apart from the two hotels, BTDC will build a 150-room mid-scale hotel in the area, marking the first hotel it owns, which will be run by an international hotel operator. Also in the pipeline are two other five-star properties to be run by international hotel operators as well.

Quizzed if the integrated resort will only have five-star and luxury properties like the Nusa Dua Resort, Darmasetiawan said: “Lombok already has many mid-range properties in Senggigi…the accommodation there (at the resort) will range from mid- to upmarket, which will be built at a later stage.”

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THE Thai government’s plan to levy a 500 baht (US$16) entry tax on foreigners has been strongly criticised by the travel trade for being poorly thought out and possibly a ploy to recover lost revenue for granting visa-free travel to Chinese tourists.

Aparna Basumallik, CEO of Club 7 Holidays with offices in Mumbai, Baroda, New Delhi and Bengaluru, said the Indian MICE market is extremely sensitive and can result in companies changing destinations.

Another buyer, Rashmi Chotmarada, managing director of Noida-based Touch of Class Travels, said Thailand has positioned itself as a cheap, cost-friendly destination and the levy would change travellers’ perception of this. She added: “I foresee at least a 20 per cent drop in outbound travel to Thailand if this is implemented.”

Additional reporting by S Puvaneswary

MARINA Bay Sands (MBS), which has wrested ITB Asia from Suntec Singapore, said it was not overly generous in its bid, despite throwing in a host of sweeteners including bringing and accommodating an additional 100 of its worldwide buyers, hosting ITB Asia’s opening receptions and VIP C-suite lunches, and even offering free Wi-Fi to all delegates.

Las Vegas Sands’ SVP worldwide sales and resort marketing Asia, John Mims, said the deal was consistent with the company’s “partnership” approach for all tradeshows and events.

Mims said: “ITB Asia is coming onto its own, so for us, it’s a great opportunity to partner them over the next three years, hopefully longer, and help make the show bigger and premier.

“All of the tradeshows, meetings, etc with us are partnerships in one way or another. It is in our interest and in theirs to align and make the show successful.”

MBS will be the official hotel and venue of ITB for three years from next year. It hosted ITB last year when Suntec – home to ITB since the show’s inception in 2008 – underwent modernisation works. With the five-year contract up, ITB Asia reopened the bid.

“Suntec has always provided us with an optimal business environment but we believe that our partnership with MBS will provide delegates with a more convenient and integrated experience,” said Nino Gruettke, ITB Asia’s executive director.

He also said Suntec could not ensure the availability of additional space for the next three years.

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DESTINATIONS in Asia-Pacific must get investment principles correct from the start – or end up with white elephants or non-sustainable developments.

Richard Helfer, opening the two-day Asia Pacific Tourism Destination Investment (APTDI) Conference yesterday, warned against such pitfalls as creating copy-cat tourism attractions or using cultural/historic sites, natural habitats as “low-hanging fruit” waiting to be exploited.

“We…have often seen what the lack of master planning for tourism destinations, inconsistent policy frameworks and non-time sensitive approval processes have done to discourage innovative and visionary development concepts,” said Helfer, chairman, RCH International, who has overseen many tourism investments. “Without such solid and consistent foundations, it becomes nearly impossible to attract and sustain over the longer-term the necessary investment capital, in particular the desirable combination of destination-based and regional/international stakeholder financial support. As we have all seen, if the first tranche of investment does not reach its promised volumes and ROI, there is lessened support for the vision going forward, as well as limited or no fresh funding for the later phases.

“We further see the lack of end-user support as to word-of-mouth and/or return visits when the tourism destinations are not properly planned or maintained.”

Greater Asia and Oceania have a most varied collection of both rural and urban natural destinations offering investment opportunities in infrastructure and individual venues, he pointed out.

“Of the world’s total population of seven billion people, about 60 per cent live in Greater Asia & Oceania. Over the past decade, close to 60 per cent of the entire world’s population increase has also come from this region. Greater Asia/Oceania accounts for 21 per cent of global spending and, whereas in 2011, 23 per cent of the world’s arrivals were in Greater Asia and Oceania; by 2030 this number will increase to 30 per cent.

“Making the case for tourism infrastructure investment in our region, whether by country or individual destination, therefore, is a most positive proposition.”

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KUALA Lumpur-based Jebsen Travel & Tour Services and Hong Kong-based Westminster Travel will partner to develop the cruise business in Hong Kong.

Jebsen’s managing director, Lim Chee Tong, said his company will provide the expertise to Westminster to operate a cruise department and sell all 50 cruise lines which Jebsen currently represents.

This is Jebsen’s first business dealing in Hong Kong and the company will also provide training to travel agents in Hong Kong on the know-how of selling cruises.

Lim said the cruise market in Hong Kong is a mature one, second to Japan, and as such, he anticipated a conservative growth of 10 per cent in the first year of operation.

He added: “We believe the luxury cruise segment in Hong Kong is big and it is growing for both leisure and incentive travellers. The timing is also right to expand our business in Asia, as we anticipate a few more cruise ships to be stationed in Asia permanently by the end of 2014, joining the three main players here – Costa Cruises, Royal Caribbean International and Star Cruises.”

Jebsen also has joint ventures with various cruise partners overseas and has offices in India, Saudi Arabia, Indonesia, Singapore, Thailand, the Philippines, China, Japan, South Korea and Oman.

The company was set up in 1979. Among the 50 cruise lines it represents are Poseidon Expeditions, Oceania Cruises, Orion Expedition Cruises, Crystal Cruises, Costa Cruises, Viking Cruises and Disney Cruise Line.

SINGAPORE-based Park Hotel Group is moving in to capitalise on emerging markets, with Global Sales Offices (GSOs) to open in India and Indonesia within the next two months.

Speaking to TTG Asia e-Daily, Park Hotel Group CEO, Allen Law, said India and Indonesia each accounts for under 10 per cent of business.

“Our traditional markets like US and Europe have been quite stable, while there has been high growth in Asia,” said Law, adding that Vietnam, Cambodia and South Korea are also showing promise.

Park Hotel Group currently has eight GSOs in Sydney, London, Tokyo, Beijing, Shanghai, Guangzhou, Hong Kong and Singapore.

Having also launched its own private label GDS chain code earlier this year, Law said this has given the company more brand recognition in the GDS and TMC space, allowing it to tailor communications to agencies and customers “that may be very far from where our hotels are”.

Over the next six months, Park intends to make several announcements, one of which is a new three-star brand to complement its luxury and upscale brands of Grand Park and Park Hotel respectively.

Law said there has been interest in the mid-tier brand, which would be launched in Singapore and Hong Kong.

The sale of two of its hotels this year – Park Hotel Clarke Quay and Grand Park Orchard – has also given the group around S$1.5 billion (US$1.2 billion) in funds, which it is looking for the right opportunity to deploy.

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