IN A year that has been marked by less-than-satisfactory growth from key emerging markets and an oil price spike linked to the Syrian crisis, IATA has readjusted its industry outlook for 2013.

Previously set at US$12.7 billion in June, IATA is now anticipating US$11.7 billion in profit for the full year.

As a region, Asia-Pacific’s outlook was also downgraded by US$1.5 billion to US$3.1 billion, thanks to slower growth among emerging markets.

IATA expects Asia-Pacific’s 6.9 per cent capacity expansion to outstrip the 6.6 per cent growth in passenger demand this year.

However, Tony Tyler, director general of IATA, points out that airline performance will likely remain strong as the industry absorbs the impact of cost increases, as a result of changes in industry structure through consolidation and joint ventures, increased ancillary sales and reduced new entry due to tight financial markets.

“Overall, the story is largely positive. Profitability continues on an improving trajectory. But we have run into a few speed bumps,” he said in a statement released by the association.

“Cargo growth has not materialised. Emerging markets have slowed. And the oil price spike has had a dampening effect. We do see a more optimistic end to the year. And 2014 is shaping up to see profit more than double compared to 2012.”

IATA has set its profit outlook for 2014 at US$16.4 billion internationally, while Asia-Pacific is forecast to earn US$3.6 billion due to the continued strength of the domestic Chinese market and benefits of restructuring in Japan.

The announcement of the revised forecast comes ahead of the United Nations’ ICAO triennial meeting in Montreal today, where the IATA will continue to urge ICAO member countries to jointly tackle carbon emissions.

Without a joint policy on carbon emissions, the European Union may impose unilateral action on airlines flying into the bloc that would penalise airlines on their carbon output (TTG Asia e-Daily, November 14, 2012).

THE Malaysian state of Johor has become a hive of tourism activity of late, with Malaysian inbound travel consultants reporting stronger arrivals to the destination.

Kathryn Lee, southern regional managing director of Sri America Travel, said that between January and August, her company had seen a 30 per cent year-on-year rise in business from the Singapore market and a 10 per cent year-on-year increase from Indonesia.

“The strong Singapore dollar has resulted in more Singaporeans spending a night in Johor rather than making day trips,” she elaborated.

East Coast Adventure Travel & Tours’ managing director, Liza Alip, has also seen 15 per cent year-on-year growth in business from Singapore and single-digit growth from Indonesia, the Philippines, Vietnam, Cambodia and Laos.

Meanwhile, a recent release by TripAdvisor stated that the number of searches for Johor from August 2012 to July 2013 surged 45 per cent year-on-year. Searches by Singaporean and Malaysian travellers leapt by 23 and 27 per cent respectively.

Tripadvisor spokesperson, Jean Ow-Yeong, commented: “The increase in interest for Johor may be attributed to the growing number of tourist attractions such as Johor Premium Outlets (TTG Asia e-Daily, December 7, 2011) and Legoland that are sprouting up in the city of Johor Bahru, to the excitement and delight of travellers.”

East Coast’s Liza echoed this view, saying that the new attractions in Johor are a factor in attracting international tourists to the state.

However, she pointed out: “Most international tourists land in Kuala Lumpur or Singapore. Johor needs more direct flights to regional destinations to further boost tourist arrivals.”

Johor has also begun carving out a niche as a theme park paradise, especially among visitors from China (TTG Asia e-Daily, August 15, 2013).

Singapore is currently Johor’s top source of international arrivals with almost 10 million visitors between January and July, followed by Indonesia, China, Hong Kong, Macau, the Philippines and India.

Johor’s Department of Tourism is aiming for 24.2 million arrivals for this year, having recorded 12.6 million as of July.

THAI Airways International’s board of directors has approved a slew of new flights for subsidiary LCC THAI Smile, with services to begin from October 27.

THAI Smile will commence thrice-weekly Bangkok-Chongqing and Bangkok-Changsha services on October 27, with the frequency of the latter to go up to five times weekly on January 16, 2014. Flights are to be operated with Airbus A320-200 aircraft.

The carrier will also connect Bangkok to Luang Prabang in Laos from November 16 through seven-weekly flights on A320-200 aircraft.

Lastly, THAI Smile will fly a new Bangkok-Sendai route three times a week from December 3, deploying an A330-300 on the Japan service.

THAI Smile averaged 77 per cent in load factor in August 2013, a decrease from 82.5 per cent recorded during the same month last year, due to the increase in domestic and international destinations it serves.

ENCOURAGED by an 80 per cent growth in demand for South America last year and the upcoming 2014 FIFA World Cup, Trafalgar expects South America’s star to continue rising as a new destination for Asia travellers.

The company has just released its new 2014 South America brochure containing 17 itineraries and eight optional extensions.

“With an increase in desire for new aspirational destinations, South America is, without a doubt, the new frontier for Asians,” said Nicholas Lim, regional director of Trafalgar Asia. “We further anticipate another surge in volume, especially with the 2014 FIFA World Cup round the corner in Brazil.”

“We are finding that savvy individuals, which includes senior executives and well-travelled seniors are taking our South America trips, especially popular itineraries like Glimpse of South America which visits the cities of Rio De Janeiro, Iguassu Falls and Buenos Aires.

“Additionally, adventurous types also enjoy our Highlights of Peru itinerary that takes guests to Machu Picchu, Cusco and the Sacred Valley. Football fans could also do a pre- or post-tournament trip to these surrounding destinations to maximise their time in the region.”

MANDARIN Oriental Hotel Group (MOHG) has inked an agreement to manage the Mandarin Oriental, Chongqing, slated to open in 2016.

The hotel is located 20 minutes from Chongqing Jiangbei International Airport and five minutes from key commercial and entertainment districts on the Yuzhong peninsula, occupying the top floors of a 248m tower.

Featuring 231 rooms including 25 suites and 18 serviced apartments, Mandarin Oriental, Chongqing will offer guests five restaurants and bars to choose from – a specialty restaurant, a Chinese restaurant, an all-day dining venue, a lobby lounge, a rooftop terrace bar and the signature Mandarin Oriental Cake Shop.

Guests can also make use of the Spa at Mandarin Oriental with eight treatment suites, fitness facilities including a heated indoor swimming pool, a 1,200m² grand ballroom and an additional multipurpose function space.

THE private sector and NTOs must become better at using technology to connect with tourists, especially if they want a share of surging arrivals from key growth markets such as China.

Antonia Lopez de Avila Munoz, president and CEO of Spain’s State Company for Tourism Technology and Innovation Management (SEGITTUR), said digital technology is not only a key mechanism for attracting tourists to a destination; it can also be used to improve a wide range of issues such as mobility, security, healthcare, and energy and resource management.

Speaking on the sidelines of the Global Tourism Economy Forum in Macau last week, he said technology will become increasingly important as the industry moves towards the World Tourism Council’s forecast of 1.8 billion international arrivals by 2030.

“(Spain is the) first in Europe to (have the most) protected areas and third in the world…even with 60 million tourist arrivals a year. That’s partly because we’re focusing on using technology to help manage everything from security to water usage.”

Given that four out of five people visiting Spain travel with a connected device, technology and social media can play a major role in providing tourists with a better destination experience.

This includes providing visitors with multilingual guides and up-to-date information on events and weather as well as a platform to share their photos, videos and experiences, he said.

Tourism organisations and relevant authorities can also use the data for a number of purposes from monitoring traffic to promoting niche products. To do this, investment in communications infrastructure, such as installing free Wi-Fi in urban centres, is key.

Mei Zhang, founder of WildChina, said technology will also become more important as tourists become increasingly confident about travelling by themselves. This is especially true for the Chinese market, which is becoming more sophisticated.

“Technology that enables self-guided travel will be the winner,” she said.

BHUTANESE private airline, Tashi Air, will commence its first international flights on October 10, linking Paro to Bangkok via a daily service.

The airline, which has operated only domestic routes thus far, will take delivery of a 150-seat Airbus A20 on October 2 for use on the new service.

Tashi Air CEO, David Young, said of the new service: “Our fares won’t be vastly different from Drukair since it’s a very expensive route to operate.”

Roundtrip economy fares will cost Indian and Bhutanese nationals 21,000 Bhutanese ngultrum (US$335), and passengers of other nationalities, US$720. However, children and students can receive 33 and 30 per cent off regular fares respectively.

State-owned Drukair currently flies Paro-Bangkok and other shorthaul international destinations.

Tashi Air is also awaiting clearance to fly via Kolkata and Bagdogra, and is mulling links to Dhaka, Singapore, Kathmandu, Dubai and Hong Kong for the future.

Debjit Dutta, director of Impression Tourism Services India, commented: “Flights into and out of Bhutan are in huge demand despite the high costs. Bangkok will be a good beginning, (bringing) leisure tourists as well as Budhhist pilgrims.”

ETIHAD Airways will more than triple seat numbers on Mumbai and New Delhi services from November 1.

The announcement follows the recent signing of a new air services agreement between India and the United Arab Emirates, under which the Indian government approved an exponential increase in capacity from 13,000 seats weekly to almost 50,000 weekly.

By December 31, Etihad will offer twice-daily services from Abu Dhabi to Mumbai and New Delhi, up from current daily services. The wide-bodied Airbus A340-600 will be deployed on the Mumbai route, while the A330-200 will service flights to New Delhi.

The airline will also increase capacity on its daily Chennai flights by replacing the current 136-seat A320s with new, 174-seat A321s.

James Hogan, president and CEO of Etihad Airways, said: “We now have the opportunity to add significant capacity between the two countries, not only meeting existing demand for trade and tourist travel but also ensuring that we can meet the continued strong growth which is expected between our two countries.”

Furthermore, Etihad intends to codeshare with Jet Airways on several flights within India, incorporating India’s Tier Two and Tier Three cities into its network. Dependent on statutory approval, the carrier also wants to add more flights in 2014.

Anshuman Mitra, director of Starlite DMC India, said: “Etihad’s expansion has added significantly to the growth of Indian outbound to Abu Dhabi in the last two years, consolidating India’s position as the city’s top source market (TTG Asia e-Daily, July 31, 2013).

“The ease of onward connections, especially to European destinations, has added to the airline’s popularity with Indian fliers.”