TTG Asia
Asia/Singapore Wednesday, 31st December 2025
Page 2385

China clinches hosting rights to the Royal Trophy

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THE next two editions of the Royal Trophy will be held in China, with this year’s continental golf competition to take place on the greens of the Dragon Lake Golf Club, Guangzhou, from December 20-22.

China won the rights to host the seventh and eighth editions of the tournament following an extensive and competitive host venue application process.

Dragon Lake Golf Club is situated within the Dragon Lake International Village, a national tourist attraction designed and built in the style of a European town. The village also encompasses the Princess Hotel and King’s Hotel.

Feng Di, chairman, Dragon Lake Golf Club, said: “Our team at Dragon Lake Golf Club has extensive experience in hosting major golf events including the golf competition of the 16thAsian Games.”

“In addition to being positioned as a prestigious golf club, we also would like to contribute to the growth of golf in China, to create opportunities for the game to be introduced to a greater percentage of the Chinese population; hosting the Royal Trophy fits perfectly with this set of objectives.”

Brisbane Event Planner now packs a bigger punch

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THE Brisbane Event Planner, an online city directory for the conventions and events industry, has undergone a significant revamp to mark its first birthday.

Brisbane Marketing Convention Bureau director, Annabel Sullivan, said the online tool was now packed with even more useful features to assist event planners.

“We’ve refreshed the layout and design of the website and enhanced the search engine to make it easier to locate venues, accommodation and other services. There is also a live Twitter feed along with other social media tools and marketing collateral to assist with delegate boosting and attendance,” Sullivan said.

The Brisbane Event Planner, which is also accessible on iPhone and iPad, has attracted more than 19,300 unique users since its launch in July 2012.

The Brisbane Event Planner can be found at www.BrisbaneEventPlanner.com.au

Complementing the rejuvenated Brisbane Event Planner is the Convention Support Toolkit which organisers can use to source event planning tools, marketing collateral templates, image and copy libraries, Brisbane mobile apps, pre- and post-event tours and complimentary onsite support including visitor guides and maps.

A Pier to depend on

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He made Otis elevators a household name in Asia-Pacific. Can Pier Luigi Foschi do the same for Carnival Corporation, which wants a 50 per cent share of the Asian cruise market in 2017 by setting up Carnival Asia in Singapore? By Raini Hamdi

pier-luigi-foschi

How did you move from elevators to cruising?

That happened about 16 years ago, when Carnival acquired Costa (Crociere) in Italy. I was EVP of Otis (Elevator Company) in Asia-Pacific with operational responsibilities for 14 countries, based in Singapore. Elevators and cruise lines are different products of course, but running a company is the same. I had learnt a lot about how to manage and develop business, and I wanted to give back what I received, do something good for a small company (Costa) at the time and my country.

You retired as Costa’s CEO in July last year and they roped you back as Carnival Asia’s CEO in September 2012. So there goes the retirement.

At 65, I wanted to reduce the day-to-day commitment, so I retired as CEO but remained as chairman of Costa. Then Carnival had this commitment to invest more in Asia and asked me to supervise it, so I said yes.

This role is more strategic and long-term in nature. It is about establishing good relationships with all the Asian governments, understanding the investment opportunities available, be they in developing ports or destinations, developing partnerships with other tourism sectors – there are a number of things we can do to create a solid base for Carnival in Asia.

But Carnival is not new to Asia. Costa was a pioneer in China, thanks to you. Other Carnival lines have been calling on ports here. So what is the significance of opening a Carnival Asia in Singapore?
It’s a business unit which includes all of Asia. Today, China is the largest source for Carnival in Asia. But if our projection is for 3.7 million Asian cruise passengers by 2017 from 1.5 million now, and if we want to have the same market share for Asia as we do worldwide, which is 50 per cent, we have to start somewhere.

Why Singapore and not, say, Hong Kong, which is closer to China and also has a new cruise terminal at Kai Tak?
We believe Singapore is going to be a good hub for year-round cruising. If you want to station ships in Asia, you need customers throughout the year. Singapore has good surroundings, stable weather conditions through the year, solid infrastructure. Our success will be in bringing people from North Asia to Singapore through fly-cruise programmes when we’re not able to send ships in North Asia because of the climate conditions, e.g. rough seas. This is our intent. If that happens, more cruise ships will be based in Singapore.

Out of 20 million cruise passengers worldwide today, around 1.5 million are sourced from Asia. But the majority of Asians are not sailing into Asia. They want to experience other destinations by sailing around the world, Alaska, Europe and so on.

And here you are trying to get Asians to cruise Asia.
The development of cruising goes hand in hand with the development of tourism, with a higher purchasing power among Asians and with an understanding that you can have a good percentage of your satisfaction on board, along with the voyage of course and the destinations, which make products complete. So we need to have Asians not working so hard and taking more holidays or, if they want to start a family, a cruise is a good place for honeymooners!

Should your prices be cheaper to encourage Asians to ’test’ cruising?
No, in fact, we aim to increase prices in Asia. It’s not a question of price; it’s a question of getting Asians to know about cruising and the product. It’s to do with communications, marketing, working with travel agencies to promote and tailor the product – it’s not much difference from anywhere else.

Do you have to tailor the product to suit a younger clientele in Asia?
Our product is tailored for all generations, from families to young people. Yes, in certain countries, young people are actually the ones who have more money than the old people; sometimes they invite their parents to cruise.

Since you’ve managed to get Chinese to cruise on Costa, surely playing a role in getting 3.7 million Asians to cruise by 2017 is a piece of cake?
No, not at all. China is a large country with the opportunity resting on a huge population base. Singapore is smaller but can be a good market if we train travel agencies to market cruises better. We also have a concept of tailoring and catering the ship to serve Asians, so that their expectations are not just met, but exceeded.

Every market comes with its own challenges.

Other international lines such as Royal Caribbean International and Silversea Cruises have been developing the regional markets both as a source and destination for the past decade. Surely you’re looking at what these competitors are doing?
They came after Costa. Costa Allegra homeported in Singapore in winter 2006/2007.

We’ve always been the pioneer – we opened cruising in Dubai, South America, certain locations in Central America, Mauritius, China, etc.

It does not matter whether you’re first or second, although certainly it’s part of our DNA to be a pioneer.

But Carnival Corporation has 101 ships and only four are based in Singapore for regional cruising. You ought to be ashamed (jokes).
(Laughs) Don’t be so impatient. You need a lot of ingredients to have a good soup, and it is not just on our part, but everyone.

I’ve heard international cruise lines say that of Asia for the longest time now. So how can Carnival Asia be the game-changer?
In other parts of the world, particularly the Caribbean and Central America, Carnival operates cruise terminals, opens new destinations. There are a number of examples where they (destinations or ports) got US$40-US$50 million each to start from scratch, and remote beaches and islands have been transformed into cruise destinations by us. Other cruise lines have done this too in those places. If they see us having a presence here and committing resources here, I am sure they will follow suit and that’s how we can change the game.

But it won’t be easy and it will take years. We need to work with governments as typically the land is owned by the government. We need to convince both the public and the private sector that cruising is a good investment.

We are here to show the example, commit capital and find supporters from both the public and private sectors to develop new destinations in South-east Asia, which is our primary focus for the time being.

There are also policy issues to discuss – visa requirements, for example, need to be more relaxed. Cruise passengers typically stay 12 to 24 hours; they rely on cruise lines to gain the cooperation of governments to give special passes most of

the time, instead of visas. This ease of travel is a priority and will benefit land-based products, yet there are a number of examples around the world where it is a barrier to the development of the cruise business.

In this part of the world especially, a one-day visit might require a 15-day visa application. But Asians decide to cruise or travel 10 days before departure!

Where in South-east Asia would you develop ports/destinations?
I need a bit longer time to answer that. We can’t change the geography of the world, or the demand. If the demand is for short cruises, we can’t go too far away.

We’ve already started to do preliminary assessments of certain areas. But there are still many technical requirements to consider – nautical, prevailing weather, wind situations, etc; to choose a destination that can be reached by a ship is not an easy task. It also depends on the ability of the destination, the political commitment, the capital investment, as I mentioned before.

We’ve started talking to a number of governments in the region and we will revisit them to see what they can put on the table.

How long will it take for South-east Asia to be the Caribbean of the East, you figure?
It will take years, not months.

How badly have the traditional North American/European cruise markets been affected by the debt crisis?
For the US market, only to a limited degree, ie, there has not been a bust. For Europe, people are still concerned about the economy so that may affect business, however, we do not notice so much impact on passenger numbers, although prices must be leveraged.

How did the Costa Concordia tragedy last year affect you personally?
It’s a tragedy that will always be with us. It affected families of the deceased, our company, our employees. It was a human failure, not a technical error. Cruising remains a safe product.

We’re not really behind it, but we have an obligation to develop and grow the business, and time will help us leave this tragedy behind although we will never forget it.

So how often do you cruise?
I take one seven-day cruise a year. My companion and I like cruising. I love everything about it – the ship decor, the experience on board, the spa, visiting places I don’t know, enjoying the sea breezes and spectacular sunsets, and so on.

Airport Guides

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With the phenomenal growth in air traffic, governments across Asia have rolled out plans to boost airport capacity in their countries. Here’s a look at what’s coming up on the horizons

fig-2-changi-airport-night-sq

singapore1SINGAPORE
Changi Airport
By Lee Pei Qi

Why the new facility is needed With the ability to accommodate 16 million passenger movements a year, the new Terminal 4 (T4) will increase Changi Airport’s annual handling capacity to 82 million. Built on the site of the now-demolished Budget Terminal, the two-storey building will have a height of 25m and a gross floor area of about 160,000m².

Designed with the flexibility to meet the operational needs of both regional full-service and LCCs, T4 will primarily handle narrow-body aircraft. Aerobridges will be available at the boarding gates, while the airside transfer of passengers and baggage between T4 and the other terminals will be provided for.

To faciliate quicker passenger processing, departure and arrival immigration control as well as pre-boarding security screening will be centralised, baggage sortation will be fully automated while more kiosks will be provided for self check-in, self bag-tagging and self bag-drops.

Changi Airport Group has estimated a budget of about S$600 million (US$474 million) for the T4 building, with another S$680 million estimated for the construction of supporting airfield infrastructure.

Expected opening 2017

Interested airlines As T4 is still in its preliminary planning stage, the list of airlines which will be operating is not finalised yet.

What’s great about it Ho Yuen Sang, managing director, Tiger Airways Singapore, said: “T4 will benefit all carriers in Singapore and give us more room to grow our capacity. The addition of another runway would also be helpful in easing congestion, especially during the peak travel periods and timeslots.”

Luxury Tours & Travel Singapore’s director, Michael Lee, agreed: “With the improved processes in T4 like self-service options for baggages, it will provide greater convenience for passengers and speed up waiting time.”

What’s not great about it Airlines like Berjaya Air, Cebu Pacific, Firefly, South East Asian Airlines and Tiger Airways that used to operate out of the old Budget Terminal have shifted operations to Terminal 2 since September 2012.

How it will change stakes for the travel trade Brendan Sorbie, chief analyst and chief representative Southeast Asia, Centre for Asia Pacific Aviation, remarked: “Terminal capacity is not the most pressing problem. Runway capacity and to a lesser extent parking capacity have become impediments to growth.

“The Changi site already includes a third runway but it is now used by military aircraft and is not currently linked to the two commercial runways. It is inevitable Changi will eventually need to open up the third runway and build the necessary links to the existing airport,” he said.

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srilankaSRI LANKA
Mattala Rajapaksa International Airport, Hambantota
By Feizal Samath

Why the new facility is needed Bandaranaike International Airport (BIA) at Katunayake, 30km east of Colombo, has reached its maximum capacity as passenger traffic has sharply increased with the tourist influx into Sri Lanka. BIA is now handling about six to seven million passengers a year, but as it does not have enough space for future expansion, a second gateway – Mattala Rajapaksa International Airport (MRIA) at Hambantota – hence becomes a necessity.

Aviation insiders are expecting airlines to start using MRIA as an alternative to BIA because it is a cheaper facility to use and it reduces travel time in southern Sri Lanka.

In case of a sudden closure of BIA, passengers can travel to MRIA and board planes there without any delays.

Opening March 2013

What’s great about it The biggest advantage in having an airport in Sri Lanka’s south is that it sharply cuts travel time to eastern parts of the country where tourism is growing. For example, it would take 2.5 hours to travel from MRIA to tourist hotspots like Arugam Bay, a renowned surfing destination, versus eight hours from BIA.

Oman Air has started using the MRIA as an alternative airport from June 1, according to Gihan Karunaratne, the airline’s Sri Lanka country manager. Oman Air had earlier used Madras, Trivandrum or Male for emergency landings.

What’s not great about it The airport is slow in taking off. More than three months since its March opening, national carrier SriLankan Airlines is the only airline operating regular flights.

“The airport was opened with a lot of fanfare raising a lot of expectations but there is little development. Foreign travellers keep asking us when they could use the MRIA and we don’t have answers,” said M H A Raheem, president of the Arugam Bay Tourism Association.

Foreign airlines are wary of operating flights as the infrastructure in the area is still under-developed. Said an official of a foreign airline who declined to be named: “I don’t think there is a proper cooling system for perishable cargo or cold rooms. Also, there should be proper passenger services and other support services like proper transportation, schools and hospitals for our staff to be relocated there.”

MRIA also needs to be promoted and marketed more extensively abroad to raise awareness of the new facility, industry insiders pointed out.

Airlines operating here SriLankan Airlines is operating four weekly flights from Mattala to Malé, two to Riyadh, two to Beijing and one to Shanghai, while Mihin Lanka is operating a weekly service to Bodh Gaya in India.

Flydubai launched thrice-weekly flights on May 22, and has ramped up the service to daily flights since June 3. Air Arabia, which suspended flights in mid-May six weeks after launching operations, is resuming thrice-weekly flights from MRIA in August. Qatar has expressed interest but no decision has been confirmed at press time.

How it will change stakes for the travel trade Owing to the ongoing recession in Europe, foreign tourists now spend a shorter period of 10-12 days in Arugam Bay, compared to a month in the past, said Raheem. “They can’t leave their office for a long period and thus every hour saved is valuable. (MRIA) will save at least a day in internal travel time for them,” he said.

Vasantha Leelananda, executive vice president and DMC sector head at John Keells Holdings, said the new airport would provide speedier access to existing hotels and upcoming debuts in the south. “The BIA has only one runway and the new airport adds another runway to our infrastructure facilities,” he said, adding that the airport provides wider travel options once fully developed.

Hiran Cooray, chairman of Jetwing Hotels, which is launching the 96-room Jetwing Yala luxury resort this October near the airport, said the MRIA had the potential to grow Sri Lankan tourism by enhancing access to the east coast, Hambantota and Yala National Park in the south.

Meanwhile, private jets flying into Sri Lanka would have better options as landing fees were cheaper than the BIA, he added.

klia2-overview-high-courtesy-of-malaysia-airports-holdings

malaysia-1MALAYSIA
klia2, Kuala Lumpur
By S Puvaneswary

Why the new facility is needed klia2 is being constructed to cater to the explosive growth expected in low-cost air travel. Having recorded 19.7 million passengers in 2012, a nine per growth from nearly 18 million in 2011, AirAsia forecasts that it will be carrying 28.7 million passengers per annum in 2015, a demand that is expected to be met by klia2.

When completed, klia2 can handle 45 million passengers annually and replace the congested Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA), which has already breached its maximum annual carrying capacity of 15 million passengers.

Expected opening May 2, 2014, following the latest revised completion date (April 30, 2014) announced by Malaysia Airports Holdings (MAHB). There have been repeated delays on klia2’s completion date, from September 2011 to June 2013 and now May 2014 due to changes made from its original plan. The particular launch date of klia2 was chosen by prime minister Najib Tun Razak to coincide with the anniversary of KLIA, which opened in 1998.

What’s great about it klia2 will boast seamless connectivity to KLIA and KL Sentral in the city centre via land connections such as the express rail link services and public buses. The distance between klia2 and the main KLIA terminal is a mere 1.5km.

Eighty aerobridges will be at the disposal of LCCs operating out of klia2. The fully automated baggage handling system will allow quick sorting of checked baggage to the respective carriers. It will offer a greater comfort level to passengers compared with LCCT at KLIA.

The 35,000m² retail space can accommodate 225 shops, including 118 retail and branded fashion stores, 81 F&B outlets and 26 service lots, said Faizah Khairuddin, MAHB’s senior general manager of commercial services.
Other facilities include a 6,000-vehicle multi-level parking and nearby hotels such as Tune Hotel and Sama-Sama Express KLIA, an airside transit hotel.

What’s not great about it Critics have pointed out that the new airport is being built on unstable and swampy plantation land.

In a recent article by The Malaysian Insider, Democratic Action Party publicity chief Tony Pua lambasted MAHB for the repeated delays in launching klia2. Earlier in 2011, he had already questioned MAHB’s decision to move klia2 from its original northern site to the current spot in the west, which resulted in ballooning costs due to extensive earthworks required. A 1992 KLIA masterplan had advised the new airport be built on a site north of KLIA, but MAHB went ahead to locate the project on the western side.

Similarly, AirAsia CEO Tony Fernandes had also voiced concerns that the poor, unstable soil conditions of the swampy plantation had required costly, time-consuming engineering works before constructions could even begin, while the choice of site could lead to more soil works and additional costs in the future, according to a report by The Edge Malaysia.

Interested airlines All foreign LCCs, including Tiger Airways and Cebu Pacific, providing services to Kuala Lumpur will operate out of klia2 when it becomes operational. AirAsia, AirAsia X and Malindo Air will be anchor airlines.

How it will change stakes for the travel trade Grandlotus Travel Agencies managing director, K Thangavelu, said improvements in terms of convenience and passenger comfort as well as the ease of connectivity between KLIA and klia2 will boost overseas travellers’ confidence in using Kuala Lumpur as a transit point or as a travel destination. “This will benefit inbound tour operators as a whole,” he remarked.

Thangavelu also pointed out that baggage transfer facilities between KLIA and klia2 will benefit airlines with interline agreements. He said: “This will benefit the tourism industry as the likelihood of tourists using Kuala Lumpur as a transit hub will further increase.

“Aerobridge facilities are currently not available at LCCT. Aerobridge facilities at klia2 will provide added safety and convenience to airline passengers.  Wheelchair-bound passengers can be wheeled easily into the aircraft.”

suvarnabumi-airport-4-6

thailand-2THAILAND
Suvarnabhumi International Airport, Bangkok
By Greg Lowe

Why the expansion is needed Suvarnabhumi International Airport is currently operating well over its official capacity of 45 million, with 52 million passengers having passed through its gates last year. Immigration services have become increasingly strained and the crowds are only expected to grow with the seemingly unstoppable growth of Thailand’s tourism industry.

The congestion would had been worse if Thai AirAsia and several other LCCs had not relocated to the recently revitalised Don Muang Airport in October 2012. “Imagine what it would be like with another six to eight million AirAsia passengers walking about the place,” said Bangkok Airways senior vice president of network management, Peter Wiesner.

Expected completion Officially 2016, but industry sources are sceptical. After all, Suvarnabhumi took a staggering 28 years to complete before it finally opened in 2006.

What’s great about it Suvarnabhumi’s location is seen as its strongest point. Said Brian Sinclair-Thompson, a longstanding member of the Board of Airlines Representatives executive committee in Thailand: “Where else in the world do we enjoy an airport facility that is so conveniently located apropos the rest of the city?

“It’s bounded by two arterial roads, has a superb airport express (rail link) which needs to be promoted more heavily – we need to realise the luxury of what we’ve got here.”

The Suvarnabhumi Airport Development Project or Expansion Project (Phase II) will increase the airport capacity to 60 million passengers a year. The east side of the main passenger service terminal will be expanded to 60,000m², plus a new 1,000-space five-storey car park. More importantly, it will increase the number of runways from two to three, all of which can handle Airbus A380s.

What’s not great about it The  Suvarnabhumi situation raises two key issues: first, the planned upgrade is expected to do little more than meet the current demand when it becomes operational in 2016 or later, which means the airport will be on the back foot from the day the expansion is completed. Second, while the re-opening of Don Muang was widely accepted as necessary to cope with overcrowding, the Thai government appears to be backtracking on its single airport policy for Bangkok.

“Suvarnabhumi was promised as part of a single airport policy, as a gateway to Southeast Asia…The message we’re getting from the AoT (Airports of Thailand) now is they want to develop both runways at Don Muang and expand them to carry A380s. That doesn’t sound very temporary to me,” said a senior airline executive who requested anonymity.

This has created havoc for passengers needing transfers from one airport to another to make connecting flights. “You have to have some form of reliable connection any time of the day,” said Robert Maurer-Loeffler, general manager of Centara Grand and Bangkok Convention Centre. “There’s no rail system connecting the two airports. Transfers currently take hours.”

Airlines operating here All major international and regional airlines, plus a number of charter flights and LCCs.

How it will change stakes for the travel trade The Association of Thai Travel Agents will work to increase the capacity of its members to serve the greater demand, but travel specialists are not expecting any game-changing developments.

“If (airport) capacity is increased we will benefit from an increase in arrivals, but it won’t really create any new areas of business or opportunities for us beyond that,” said Sebastian Kromberg, inbound manager at Asian Trails Thailand.

indonesiaINDONESIA
Ngurah Rai International Airport, Bali
By Mimi Hudoyo

Why the expansion is needed Passenger traffic at Ngurah Rai International Airport has been growing at an average of 15 per cent in the last few years, according to the airport’s general manager Rai Purwanto. Last year, the airport handled around 13.5 million passengers, way beyond the capacity of seven million passengers a year, he added.

Expected opening Partially opened from June 2013; full opening in September 2013

What’s great about it The 2.8 trillion rupiah (US$280 million) project will see a new 120,000m² international terminal and the conversion of the old 65,800m² international terminal to become the domestic terminal. Both terminals will enable the airport to accommodate up to 25 million passengers annually.

Other renovation works include the construction of a 50,000m² parking building, plus a 7,000m² bus and taxi space, including a separate area for coach and bus on standby and a dedicated area for private car pick up.

What’s not great about it Building a second runway is not possible as the airport has reached its maximum space allocation, according to Purwanto.

Bali will need to build a new airport should it want a bigger facility in future. There are plans to build a new airport in northern Bali, but no definite location and time frame have been set.

On the other hand, Indonesia Tourism Industry Association (GIPI) Bali Chapter chairman, Ida Bagus Ngurah Wijaya, viewed the current airport’s space constraint as positive as he believed Bali needed to limit arrivals. Ngurah said: “We want quality, rather than quantity.”

Which airlines serving Thirty-one regional and international airlines (including regular, seasonal and charter services) and 14 Indonesian airlines.

How it will change stakes for the travel trade Melali MICE Bali managing director, Ketut Jaman, said: “The good news is that not only is the airport capacity increasing, which will mean smoother flow of traffic, guest and baggage handling, but also the development of infrastructure outside the airport. The Nusa Dua-Ngurah Rai-Benoa toll road (scheduled to finish in July) will ease the traffic problem in Bali.

“Going forward, we can expect more business, both leisure and MICE, domestic and international, to come to Bali.”

philipinesTHE PHILIPPINES 
Ninoy Aquino International Airport, Manila
By Marianne Carandang

Why the expansion is needed  According to the Civil Aeronautics Bureau, Ninoy Aquino International Airport’s (NAIA) international passenger movement slowed 6.8 percent from 2011 to 16.7 million passengers in 2012 – the lowest rate in three years – due to heavy congestion.

NAIA’s single runway handles commercial flights from all four terminals as well as charters and cargo, increasing tarmac time before take-off, while insufficient gates also cause additional delays for incoming planes.

Terminal 1 hosts most international flights but can currently handle only about six million passengers yearly. Without significant renovations since opening in 1981, the terminal has execeeded its designated capacity for decades. Travellers experience long queues at check-in and arrivals, and the terminal suffers from inadequate amenities such as insufficient toilets.

Terminal 3, which opened in 2008, is operating at only 52 percent of its total 13 million passengers capacity, and needs retrofit repairs due to lack of use.

The Philippine Department of Transport and Communication (DOTC) has recently announced a 2.8 billion pesos (US$64.6 million) renovation project for Terminal 1. It will also spend two billion pesos to upgrade Terminal 3 to increase its annual passenger capacity to 14 million and ease congestion at Terminal 1.

Terminal 2 is used exclusively by Philippine Airlines (PAL), while Terminal 4  serves all domestic flights operated by Zest Airways and South East Asian Airlines; both terminals also suffer from congestion problems.

Expected opening Terminal 1’s renovation is due to complete in mid-2015; Terminal 3 is set to be fully operational in 1Q2014.

What’s great about it Complementing the Terminal 1 makeover is a 15.5 billion peso plan to build a 5.2km expressway to connect NAIA’s three terminals with exit ramps in the Manila Bay area, enhancing access to Entertainment City (where Solaire Resort & Casino is located) and its three upcoming integrated resorts (Belle Grande Manila Bay, Resorts World Bayshore and Manila Bay Resorts). The expressway is due to finish in 2015.

What’s not great about it There are no plans to implement new rapid-exit taxiways and upgrade navigation aids to ease runway congestion.

DOTC secretary Emilio Abaya has announced plans to “maximise” NAIA’s facilities by 2025, which by then another airport in the Metro Manila is likely to be built, reflecting the stop-gap nature of the government’s plans.

Airlines operating here/interested airlines Thirty airlines, including PAL, Cebu Pacific, Cathay Pacific, Singapore Airlines, Korean Air, Emirates and Etihad Airways.

Turkish Airways and Jet Airways were previously considering services from Istanbul and Mumbai respectively, but slotting issues derailed plans.

Only one international airline (All Nippon Airways) flies from Terminal 3, but all international carriers will be moved here when renovations are completed, while all Cebu Pacific flights will fly out from Terminal 1 instead.

How it will change stakes for the travel trade Philippine travel operators and foreign carriers have long pushed for the transfer of international flights to the newer Terminal 3 to create a better impression for visitors to the country.

“When we compare NAIA to (other airports worldwide), we can see it doesn’t conform to international standards,” said Maria Michelle Reyes-Victoria, president and general manager of Golden Eagle Travel&Tours. “It’s time we upgraded the airport. A better airport will be more enticing (to travellers).”

Additional reporting from Feizal Samath, S Puvaneswary, Greg Lowe, Mimi Hudoyo, Marianne Carandang

Customised Travel

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Tour operators in Thailand, Singapore turn to customisation for a sharper differentiation in a competitive market

story3_1
An upcountry herbal museum provides a new twist to Exotissimo Travel’s programmes (left); a rising interest in Thailand’s sak yant traditions gives Khiri Travel the idea of developing tattoo tours

From bizarre Bangkok to tattoo tours
By Greg Lowe

While key reasons for customising travel range from supporting the bottomline to brand building and developing stronger customer loyalty, the real driving force is greater demand from travellers for newer, more immersive experiences, according to Thailand-based travel specialists.

“Travellers are curious and travel to broaden their mind and learn more about other cultures and natural environments,” said Willem Niemeijer, CEO and co-founder of Khiri Travel. “People have an image of themselves which they try to fulfil when they travel. Each person has unique aspirations when he packs his passport and hits the road. Customisation is therefore key.”

Michael Lynden-Bell, general manager Thailand, Exotissimo Travel, said customisation was also a key dynamic for growing business. He said: “We want to be leaders in the field. Whether or not we sell more Bizarre Bangkok tours (which visits the capital’s more offbeat sites mentioned in Jim Algie’s book Bizarre Thailand) is another question, but the overall innovations are good for our brand.”

Specialists agree that developing tailor-made products is both time- and labour-intensive, and that financial benefits can take time to trickle through, but the long-term gain is developing a niche which enables a business to move up the value chain and charge a higher premium for its services.

“Product creation draws on a huge range of influences and ideas,” said Lynden-Bell. “It really comes down to how much time you’ve got to get out and develop ideas. You can list 100 great ideas on paper, but then you have to prioritise them, work through them and make them executable.”

While ideas can come from agencies and customers, it is important for a tour operator to continually generate new ideas for clients so they stay on the front foot and earn their reputation as specialists, he added.

Tim Russell, director of sales and marketing – Asia-Pacific, Remote Lands (Thailand), a luxury specialist, said: “It does pay off. Obviously it is a lot more work than simply selling a package tour, but then you can charge a higher price if you are spending a lot of time putting a tour together for someone.

“Most experienced travellers understand that and see value in using a one-stop shop,” he said, adding this was also true outside of the luxury segment.

“Most people coming to Asia now (including more budget-conscious travellers) realise it’s often just as cheap to have a bespoke tour as it is to join a package tour, especially if you go direct to an agency who is based in Asia.”

Niemeijer said in the long-term, although customisation was something smaller, more dynamic companies could use it to outpace larger travel firms and differentiate themselves in the market.

“Specialisation is becoming a liability for the large players,” he said. “For them travel needs to be executed as a scalable business: costs reduced, margins lowered and volume increased.

“In the wake of mergers and buyouts of established specialists in the travel industry, there is a huge opportunity for new and small players to take their specialisation to even smaller niches.”

story3_3
Traditional rituals offer great customisation opportunities (left); Sailing Singapore waters shows a lesser-known part of the city

Your Singapore, my expert tips
By Lee Pei Qi

Small, organised with well-connected transport options, Singapore’s compactness has always been one of its strongest suits that enables tourists to plan and organise their own trips.

Despite the ease of travel in the country and Singapore Tourism Board’s (STB) drive to encourage DIY tourism – the NTO rolled out the YourSingapore branding in 2010, alongside an online interactive platform for travellers to conceptualise and plan their individual Singapore itinerary – a number of inbound agencies revealed that travellers would still approach them for their expert knowledge.

East West Planners’ managing director, Janet Tan-Collis, said: “Travel consultants are still highly invaluable because we are still the experts on Singapore and know all the ‘weird’ things that the Internet may not (dish out).

“For example, with regards to history and culture, we may be able to introduce (travellers) to hidden gems in the country like our traditional lion dance ceremony which can be very appealing, especially to the Western visitors,” she said.

Javiny Lim, managing director and co-founder of Quotient TravelPlanner, agreed that travel experts still played a vital role. She said: “Where we can continue to provide value is in linking up travellers with expert individuals on their preferred subjects.”

According to Lim, Quotient TravelPlanner would tailor programmes according to clients’ profile and requests, while the “deeper and more meaningful” aspects usually made an itinerary stand out.

For example, instead of just recommending shopping centres for those who wanted to shop, Lim would go a step further to arrange a personal shopper to accompany them – be it for jewellery, antiques, art or fashion.

And for culture buffs, she said: “We are able to arrange private visits to learn or experience fortune telling, traditional rituals and ethnic culinary cuisines.”

To encourage Singapore travel agencies to roll out more customised tours and to motivate the industry to create innovative products in pursuit of quality tourism, STB has launched a Kickstart Fund to support experimental lifestyle concepts with tourism potential, which could range from art tours to live events. Running until March 2016, grants of up to 50 per cent of qualifying costs per project are available, capped at a maximum of S$75,000 (US$59,100).

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Customisation is key to attracting well-heeled travellers. Above, luxury travel experts (from left) Tan-Collis, Logas, Mayle and Swain

Closer partnership, deeper knowledge are keys

By Raini Hamdi

In the luxury travel sector, where customisation is a given, closer partnership between suppliers and buyers has become more critical today to satisfy the sophisticated well-heeled clientele, observed players in the segment.

It is increasingly difficult to create unique experiences and maintain distinction in the market, despite there being no shortage of products and destinations that target luxury travellers, according to Simon Mayle, head of marketing, International Luxury Travel Market (ILTM).

This is because elite travellers know what they want and, not only do they expect to get it, they demand more of their planners and of the experience, while the lead time to produce the ‘wow’ effect is becoming shorter, according to luxury travel buyers, including  Janet Tan-Collis, managing director of East West Planners in Singapore, and Ian Swain, founder of Swain Tours, US.

Suppliers and buyers therefore must work closer together to meet the demand for tailored, seamless service.

Said Helen Logas, CEO, Luxperience: “The main challenge is for planners to intimately know the products – the villas, lodges, balloon trips, the places and people they are promoting. A river view maybe unexceptional by day, but at sunset the whole setting may be transformed.

“Planners must have a sure-footed feel for what’s doable, and the degree of flexibility of the villa managers, chefs and guides whom the high-end clients will engage with along the way. It comes down to product knowledge and first-hand experience.”

Swain agreed: “Knowing the real luxury products, the right rooms, the right time to stay and experience. Planners need knowledge.

“There are some unique products, but it is really the unique experience that is needed. Having a great hotel in an average location is just so-so. Making it special, worthwhile to travel to get to, memorable and educational – that is what is needed (to customise travel successfully).”

Both Mayle and Logas said the thirst for deeper product knowledge and closer relationship between suppliers and buyers was a reason why luxury travel trade shows were thriving.

“As anyone who has ever attended an ILTM will tell you, nothing is more powerful in building these relationships than the valuable networking opportunity of meeting and networking with your peers:  ILTM offers face-to-face solutions and inspiration to conquer markets,” said Mayle.

ILTM has launched two additional events this year – ILTM Japan and ILTM Africa – joining the umbrella show ILTM in Cannes (now in its 12th year), ILTM Asia (launched in 2007), ILTM Americas and ILTM Spa (both launched last year).

Mayle said there was no overlap. “Seventy-four per cent of buyers and planners attending ILTM Americas 2012 had never been to an ILTM before and 90 per cent of those would not go to another ILTM event that year. In addition, 37 per cent of those attending ILTM Africa had never attended an ILTM event before,” he said.

Luxperience, taking place in September in Sydney, aims to double its size this year to 200 exhibitors and 500 buyers. There will be three buyer types – luxury travel specialist agencies, private travel designers, concierge services, private travel clubs and high-end wholesale specialists from worldwide; Australian-based luxury and high-end experiential travel specialists; and Australian corporate travel planners, performance and reward managers.

“Travel designers are able to create bespoke itineraries for their high net worth clients if they are aware of what is available in all destinations. Luxperience helps them to experience, understand and sell new, high-end products,” said Logas.

Added Mayle: “We are continually amazed by the list of those participating in all ILTM events – who knew that a back of house service for children to explore the George V in Paris would see such demand from wealthy families from across the world? Or that environmentally-committed destinations and resorts such as Peru’s carbon-neutral Inkaterra or the Galapagos Islands’ Pikaia Lodge, would create such worldwide interest?”

Customisation tips/ideas

“The future opportunity lies in arranging a meeting of minds as much as a meeting of traveller with place. There are real opportunities to get closer to communities and community leaders, guides, teachers and innovators – the unheralded ‘local heroes’. If you are a self-made successful business person on a luxury trip, wouldn’t it inspire you to meet a community business pioneer who was creating opportunities out in the bush in Western Australia or in the mountains of Indochina?

Innovative combinations are also on a rise. For example, visit Melbourne for the Grand Prix, then fly to Tasmania and stay in a luxury lodge that specialises in fishing, fine wines and cuisine.”  – Helen Logas, CEO, Luxperience

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A expert-led calligraphy workshop immerses travellers in Singapore’s cultural heritage

“What seems to be rising in popularity in the Asia-Pacific region are yacht experiences with the ability to entertain a private party. After the party, the experience continues by sailing away with selected guests for a cruise. For example, an engagement/wedding party or a private C-level dinner that progresses into a board meeting over the horizon.

One of the most important and critical factors to successful customisation is to provide any discerning visitor with a well-informed guide and/or driver who has the attitude and aptitude to be able to provide on-the-spot solutions for whatever that pops up. Nothing beats providing clients a good time, even if it is by satisfying a simple need such as taking them to a great place for local food.” – Janet Tan-Collis, managing director, East West Planners, Singapore

Additional reporting from Raini Hamdi and Lee Pei Qi

Why it’s still morning in the evening in Vietnam

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Kai Speth, general manager, Sofitel Legend Metropole Hanoi, opines that while Vietnam’s tourism development has come a long way, its nightlife scene still has some catching up to do

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Remember Robin Williams, and that fantastic movie he starred in, Good Morning, Vietnam? What a tour de force of improvisational comedy. And what a great headline. I remember, as a much younger man in the early 1990s, that the media put the title of that movie to great effect as Vietnam opened up to international travellers.

Back then, it was apropos. Today, not so much, unless, of course, you’re writing headlines about Dunkin’ Donuts coming into Vietnam. (In that case, it’s irresistible!) In recent years, we’ve witnessed an incredible maturation of the country’s hospitality scene. Some of the best resorts in the world are perched upon Vietnamese shores. You can shop here for Louis Vuitton. The country’s flagship airline flies a modern fleet; gone are the days when Tupolevs and Yaks limped between cities. As for hotels, well, you can stay in hotels from Ho Chi Minh City to Hanoi and enjoy as fine an experience as you would anywhere else in the world.

Indeed, Condé Nast Traveller in February hailed the Sofitel Legend Metropole Hanoi as one of the top 25 hotels in the world in the new Gold Standard Hotels 2013 list.

We’ve come a long way, and I’m always tempted – whenever I see that Good Morning, Vietnam headline – to note that it’s no longer morning here. But sadly, I can’t quite muster the protest. Because in many ways, it’s still morning when it comes to the evening in Hanoi.

“Where we, as a destination, are falling down on the job is with regard to the sophistication of our night-time opportunities.”

Where we, as a destination, are falling down on the job is with regard to the sophistication of our night-time opportunities. Go to Bangkok, Hong Kong or Singapore, and there are scads of opportunities to buy into a high-end evening experience. There are scads of opportunities to spend money here at the budget-end and for a middle-income experience, but I’m talking about what we need at the high-end, because a destination like Vietnam wants a healthy mix of travellers across all demographics. And we won’t get them unless we start providing nightlife experiences that travel (experts) and tourists talk about.

Sure, they can come to Angelina and Le Beaulieu and enjoy a superior dining experience. (Pardon me while I toot our own horn again: Le Beaulieu was recently hailed as one of the 101 Best Hotel Restaurants in the World by US-based food website The Daily Mail.)

But hotel guests need options beyond the doors of their accommodation, and our concierge is hard-pressed to make any meaningful recommendations. Some guests want karaoke, discos and bars that do regular promotions for this or that brand. But if you’re 50 years old, 60 or 70, you’re looking for something else.

That’s part of the work we have to do to enhance the desirability of the destination for those who would fly first class or on private jets. In The Sheltering Sky, Bernardo Bertolucci’s film about a couple who travel to Northern Africa in an attempt to get something going again in their marriage, the character played by John Malkovich makes that great line about the differences between travellers and tourists: Travellers may never go home; and tourists always go home.

Hanoi’s got plenty of travellers. What we need are more tourists.

By Kai Speth, general manager, Sofitel Legend Metropole Hanoi

Depreciating rupee hits Indian leisure outbound

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THE steep depreciation of the rupee has started to pinch the outbound leisure market with the resulting rise in tour package prices, according to Indian travel consultants.

The currency crashed by 11.6 per cent year-on-year last month, reaching an all-time low of 60.73 against the US dollar on June 26.

Vikas Khanduri, managing director and CEO, Viva Voyages, said: “The depreciation of the Indian rupee doesn’t augur well for the outbound leisure market. The price of outbound tour packages has gone up by 15 per cent.”

Rajji Rai, chairman of Swift Group of Companies and advisor of Travel Agents Association of India, estimates a 15 per cent drop in outbound travel because of the rupee’s depreciation.

“The segment that is hit most is the (upper) middle-class travellers who have started to cut down on their travel days to fit their (shrinking) budget,” he said.

The current low season of Indian outbound travel only adds to the woes.

Yet, for major travel company Cox & Kings, there was in fact a five to seven per cent increase in tour package bookings, according to Karan Anand, head of relationships.

“India experienced a similar cycle of uncertainty in 2008 when the world was engulfed in a crisis. However, this did not dampen the Indians’ spirits and they continued to travel overseas. For Indians, travelling overseas is an aspiration and they will not give it up just because of the rupee depreciation,” he said.

India’s hospitality sector too, has not been spared from the free-falling currency and sluggish economy, as the country’s hotels report weaker average occupancy and average room rates (TTG Asia e-Daily, July 2, 2013).

Malaysians drawn to cheaper India this August

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THE depreciation of the Indian rupee against the Malaysian ringgit coupled with AirAsia’s current promotions to India are expected to boost outbound travel to India, especially during the August school holidays, which coincide with the upcoming Hari Raya festive period.

Hidden Asia Travel & Tours managing director, Nanda Kumar, anticipates a 40 per cent increase in outbound leisure travel to India.

He said demand was strong for tours combining Kolkata with the Golden Triangle and Chennai with Delhi, while tour packages combining Kerala backwaters with Ayurvedic treatments were also especially popular with couples on honeymoon.

Stephen Thomas, managing director of Topaz Travel & Tours, anticipates a 20 per cent year-on-year increase in leisure travel during the upcoming school holiday period.

Beyond the school holidays, he said Malaysia Airlines’ new daily services to Kochi beginning September 1 would also boost demand for packages to Kerala, especially from the middle- and upper-middle-income brackets who would not mind paying more for service and comfort.

“We have also received bookings for the year-end school holidays and anticipate a 20 to 25 per cent increase compared to last year. This is partly because of the depreciation of the rupee, the general elections being over, and airline deals.”

N Rajan, an outbound consultant at Dhesu Travel & Tours, expects tour packages to South India to sell better than North India during the school holidays next month, as was the case last year (TTG Asia e-Daily, August 13, 2012). Many Malaysian Indians have their roots in the south.

More airlines enter booming Sri Lanka

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MORE international airlines are flying into Colombo to take advantage of Sri Lanka’s booming tourism, while new local operators are also emerging for internal travel.

Malaysia’s AirAsia is making a comeback to Colombo, after having suspended operations in February this year, citing commercial reasons relating to flight operations and aircraft availability. It hopes to restart flights through AirAsia X possibly in August.

According to Ranjeewa Senaratne, AirAsia’s sales and marketing manager in Colombo, the airline has applied for permission to resume flights and is awaiting a response from the Civil Aviation Authority of Sri Lanka.

Similarly, Maldivian Airlines, the Maldives’ main domestic carrier with few international flights, will start thrice-weekly flights to Colombo effective August 7 from Gan International Airport.

Maldives’ economic development minister, Ahmed Mohamed, said increasing trade and tourism ties between the two countries led to the decision for the national carrier to have flights to Colombo. The airline now flies to local islands as well as Chennai, Dhaka and Trivandrum on the international sector.

New Sri Lankan domestic carrier, Cinnamon Air, has begun daily flights to several inland destinations since last week (TTG Asia e-Daily, June 14, 2013) while some other new domestic carriers have applied for licenses.

However, Singapore-based budget carrier Tigerair is pulling out of Colombo next month, citing low yields after operating to the Sri Lankan capital a little more than a year (TTG Asia e-Daily, March 23, 2012).

Airline officials said although the load factors were good at 85 per cent, yield (per flight) was not enough to make operations economically viable.

Tigerair had begun thrice-weekly flights to Colombo on May 31 last year and increased the service to four-times weekly in September, due to rising demand.

Many travel companies said Tiger might be discontinuing operations because the Colombo-Singapore route was overcrowded with competition.

Noted Sundaram Paramanathan, a top travel consultant and president of the IATA Agents Association of Sri Lanka: “There are too many flights from airlines such as Singapore Airlines, SriLankan Airlines, Cathay Pacific Airways and Emirates.”

Trivago launches Singapore website

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GERMAN hotel search and price comparison site Trivago launched its Singapore website last month in a bid to penetrate the Asia-Pacific market.

Trivago, which was founded in 2005, operates 32 international country platforms in 23 languages. Singapore is the latest addition to its Asian portfolio, in addition to its existing platforms in India, Japan and China.

Robin Harries, head of corporate development and Asia-Pacific, Trivago, said: “Asia is a high-growth potential market (while) Singapore is a fast-growing market that is no stranger to both local and international OTAs.

“Singapore is an interesting market with one of the highest online penetration rates in the world.”

With the growing clutter of similar search engines in the online realm, Harries said: “Trivago distinguishes itself from other metasearch engines by being highly specialised in its hotel-only search function via an intuitive website.”

He said Trivago’s establishment since 2005 had allowed it to amass a large inventory of nearly 700,000 hotels with over 190 booking sites.

According to Harries, Trivago has over 30 million unique visitors per month internationally and he is optimistic about its “promising performance” in Singapore.

In an apparent move to boost revenues, Trivago has attained backing from Expedia, which completed its acquisition of a 61.6 per cent equity stake in Trivago in March this year, for approximately 434 million euros (US$564 million).

Insisting that Trivago would not veer away from hotels, Harries said: “Our global focus is to continuously optimise our core product (hotels) so we are able to better serve our users’ needs.”