Bridging and leveraging

May 31, 2013

Like her father, Stanley Ho, Pansy Ho is a force behind Macau tourism’s destiny – although she insists she does not call the shots. Raini Hamdi talks to Ho at last month’s PATA Annual Summit and discovers a tireless lady who believes in a bigger, greater Macau and is helping to build bridges towards it

Pansy Ho, managing director, Shun Tak Holdings, Hong Kong

What’s something that people might say about Macau that makes you go, ‘hey, that’s not Macau’?
Lately there hasn’t been too much of that. But from time to time there still is a misconception about the past of Macau, which of course is connected to us, especially before the return of sovereignty (to China) when Macau had not much to lean on and my father (Stanley Ho) had been instrumental in building up its economic fabric. A lot of people had the misconception that in those days the casinos were operating in an illicit manner with a lot of triad infiltration, which simply was not the case.

Do you feel a sense of responsibility?
I don’t feel a sense of responsibility so to speak, but I definitely want to demonstrate and prove that Macau has its own capabilities, that we have something to be proud of.

Where’s Macau at right now?
We now have a good cross-spectrum of products – hotels, transportation means, etc – so visitors have a lot of choices in the basic amenities.

We have in a short time been able to train up a strong and skilled labour force. In the usual travel and hospitality market, you might have the skills and expertise but not on a 24-hour basis, whereas in Macau, down to even F&B and retail, people can cope with that kind of hours. In retail, for example, the best operational hours are not during the day as most gaming customers shop well into the evening, up to midnight. So we have this kind of specialised skills set.

Since the deregulation of casinos, people have also learnt that in tourism, there are different segments and are beginning to come up with innovative concepts and ideas. This will give Macau a strong competitive edge over the other developing markets, which means we can really be at the forefront.

Even us at MGM: last year, we brought in the butterfly pavilion, not just a conservatory but the whole works including an incubation room and so on. The installation was a major success and this year we will repeat that with an aquarium. So it does not always have to be a new building or hardware, but creative events and software.

Nowadays, whether you are a hotel or transport provider, your customer is becoming more sophisticated. The aspirational, emotive travel is not just for culturally-rich destinations. Even Macau has to cater to this and craft experiences for different types of customers.

Is Macau’s customer mix now diversified?
Frankly, no. But we are moving from a strong dependency on high rollers, which is pure gaming. They are such keen gamblers they want to utilise all their time basically on gambling; they might not even go to the restaurants. Now, the migration is starting to the mass gaming floor. That’s also still gaming, but they tend to spend time and money on entertainment, shopping and F&B. We saw a significant growth especially in the first quarter, while the high-roller market is slowly stabilising.

Will the geographical market mix also start to diversify?
(South) Korea is a success story and we wish to work on more (source markets), such as South-east Asia. We invest in the airport and airline (Air Macau) so I do understand we need to build traffic both ways. Only then will there be equitable mutual interest.

This is where I feel Macau can be that little hub for the smaller, rising airlines from Asian countries to immediately land and work their way into China. It has actually become more difficult for these airlines to do so, as the scene is dominated by the major carriers. So if they desperately want to reach China, what better way than through Macau? We are right there, we are efficient, we still have the capacity and we are trained. If that happens, we can have more foreign arrivals to Macau.

How’s Air Macau (of which she is executive director) doing?
It has turned around and did quite well last year. There is still not enough international routes as it has to focus first on its financial well-being, but it has added quite a number of domestic routes within China, which is also important. That’s one way to build the airline’s credibility. The world is getting to be collaborative so eventually, with that domestic network, we might not have to grow the airline organically but reach out and collaborate with other airlines, so we become the feeder for them to go into China.

In Macau, your company owns or has stakes in all corners – TurboJet, the airport, Air Macau, Macau Tower, One Central (mixed-use residential, serviced apartments and the Mandarin Oriental, Macau) and the Cotai Strip, to name a few. Surely you call the shots?
I don’t! But since I have the outreach and exposure, I can make the best use of my knowledge and insights to try and explain or, like at this forum (PATA Annual Summit), take back the ideas from a few people who have expressed interest to the government. Or we ourselves could collaborate and invest with these partners. Our group is now heavily invested in all spectrums of tourism, so it is in our interest to continue to make the right investments which can contribute to Macau.

It’s not about who is calling the shots as nobody can do everything singlehandedly. It is good when the private and public concerns have common objectives and goals, because both of us simply want to build up Macau’s capabilities and attractiveness and contribute towards repositioning Macau for a sustainable future.

How do you think Macau will look like in 10 years?
We are blessed that there is vision and forward planning by the government to further enhance the connectivity of and integrate the Pearl River Delta, which includes Hong Kong, Macau, Zhuhai, Shenzhen, even reaching out to other parts of the Guangdong province. There would be a comprehensive transport network through bridges, highways and ports. Altogether we are talking about the creation of a mega metropolis with a 100 million population base. That’s a major consumer market and productivity area of China. So we will have a strong capability to attract a lot of visitors from within China and outside.

In 10 years, we will become linked to Hong Kong and the neighbouring Chinese cities and be an even bigger attraction. We need to make sure this works. It is a great concept but there are challenges.

Such as?
To start, there’s still the invisible border – actually not invisible, there is a border. So even with all these road networks and so on, we are still three separate autonomous territories. In the long run, we need to ensure that although everyone needs to uphold and maintain their autonomy in governing their own security, there is a form of practical assimilation and everyone shares and contributes, not compete, so that the infrastructure that has been put in place is not wasted.

What’s an area of investment you’re focusing on?
Linking up everything, so that in future, with this massive transport infrastructure being put in place – roads, bridges, airport and our ferry operation – if you cannot come through by land to Macau, well, land in Shenzhen then use our ferries to shuttle to Macau/Hong Kong or vice versa. Now is the time when we can scale this network to the next level.

Lately, we have started to venture outside Hong Kong and Macau into China (Beijing real estate), but in a selective and specific manner. We’re not a multi-billion market capitalisation company, so we can’t afford to go all over the places, rather, we select cautiously.

You’re building the Jumeirah in Cotai too.
Yes, and we are talking about the possibility of building two or three hotels in that same complex. There is also a good chance we ourselves will start to run our own hotels (TTG Asia e-Daily, May 20, 2013).

As in your own hotel management?
Yes, managing and branding. We’re setting it up now. We have not gone down to the last details; we are beginning to amass
a professional team of people. We would make an announcement soon and may
be (it will be up and running) within a year.

You sit on so many key boards, e.g. as vice chairman of the Macau International Airport board and vice president of the Macao Chamber of Commerce, and are active with tourism associations and forums. What drives you?
People are fascinated with Macau, but are not really embracing it. What I would really like to do is to bring together organisations and people with good ideas in a consistent way, so that this will further the role Macau can play as a bridge for foreign enterprises which want to leapfrog into China.

How do you manage everything?
(Laughs) That’s why I am always busy, always in a rush. It is a good problem to have. Obviously 24 hours are not quite enough, so you have to use your resources in the most effective manner. You don’t do one thing at a time; you try to leverage some of the connections, opportunities, etc, to accomplish more.

This article was first published in TTG Asia, May 31 – June 6, 2013 issue, on page 8. To read more, please view our digital edition or click here to subscribe.

Gulf carriers soar on plane ambitions

By Sim Kok Chwee

May 31, 2013

The fast-growing Middle Eastern airlines continue to flex their fleet muscle, positioning themselves for a bigger slice of the global aviation market

Courtesy of Airbus

Having carved for themselves a hub operation in the Middle East, the trio of Gulf carriers – Emirates, Qatar Airways and Etihad Airways – has since turned the tables on the once-fabled Kangaroo Route, leaving in their wake Asia-Pacific airlines which were the dominant carriers on the Australia-Europe routes. And when they are done with offering travellers from Australia and Asia a one-stop service to just almost anywhere in Europe, these airlines began to offer similar one-stop services to destinations in Africa and North and South America.

Only the Pacific Ocean routes seem to have eluded the Middle Eastern carriers but with partnerships and mergers flying in every direction, this might just be realised, as in the recently forged Emirates-Qantas alliance. Meanwhile, other Middle Eastern carriers such as the once-multinational Gulf Air (now exclusively owned by Bahrain), Royal Jordanian Airlines and Oman Air have found it difficult to challenge the dominant trio.

In the last few years, however, a new challenger in the form of Turkish Airlines has emerged. Away from the limelight shone on the three Gulf carriers, Turkish Airlines quietly grew its footprint from 10.4 million passengers in 2002 to 38.5 million passengers in 2012. Revenue grew even faster from US$2 billion in 2002 to US$8.1 billion in 2012.

Leveraging on its Istanbul base as a bridge between Europe and Asia, Turkish Airlines’ strength, according to CEO Temel Kotil, lies in its ability to service Europe and much of Africa with narrowbodies, enabling greater frequencies and capacity-matching to achieve high load factors that triumph its Gulf rivals with their widebody jets. The airline will add Sydney to its network by 2014.

Apart from heavy investment in airport infrastructure by the governments in the UAE and Qatar, the Turkish government has outlined plans to build one of the world’s largest airports in Istanbul with an annual throughput of 150 million passengers. Construction is expected to take only four years and costs around US$8.7 billion.

In its financial year of 2012-2013, Emirates grew its fleet by 34 widebody aircraft and its profit by a spectacular 52 per cent, even as most international airlines are struggling with shrinking profits, load factors and yield.

By any measure, Emirates, Qatar Airways, Etihad Airways and Turkish Airlines have been spectacularly successful and have also proven to be highly competitive as they continue to sniff out interesting city-pairs that could be hubbed through their homebases. All four carriers have also undertaken extensive investments in marketing campaigns and sporting events sponsorship.

The three dominant Middle Eastern carriers have invested heavily in fleet expansion since their inception. In various instances, Emirates and Qatar Airways have been instrumental in pushing the manufacturers to boost the aircraft’s performance and capabilities, resulting in workhorses that perfectly suited their needs. But neither was it a zero-sum game as other airlines also benefitted immensely. Today, many of the world’s most heavily travelled air routes are served by twin-engine aircraft and the Boeing 747 – dubbed Queen of the Skies – which is beginning to retire in greater numbers.

In the past decade, Airbus and Boeing have centred much of their attention on the Middle Eastern carriers as Emirates, Qatar Airways and Etihad have inked record-smashing deals for top-of-the-line airliners year after year. And it is certain that the major Gulf carriers will continue to hog the limelight when orders are announced at major air shows, including the Paris Air Show next month.

B777-300ER: Boeing’s wonder machine
The Boeing 777-300ER – Boeing’s answer to the Airbus A340-600 – appears to be a front runner in the fleet of the Middle Eastern airlines, but not necessarily bearing the honour of being the carriers’ flagship aircraft. One of the most economical and versatile twin-engine aircraft to operate profitably on both longhaul and medium-haul routes, the B777-300ERs are used by the Middle Eastern carriers on nonstop services to destinations as far-flung as Australia, New Zealand and Brazil, and also on relatively shorter routes to the Indian subcontinent.

Equally versatile is the aircraft’s seating configuration. Emirates’ B777-300ERs have four variants ranging between the high-density, 442-seat configuration and the low-density, 360-seat configuration, and the airline has opted for the high-density configuration by putting 10 seats in each row in the economy class, while many carriers opt for just nine seats in each row. The B777-300ER comes in two variants for Etihad (330 and 440 seats) and Qatar Airways (335 and 380 seats), while Turkish Airlines has also ordered a fleet of B777-300ERs configured with 340 seats in three classes.

Even as the B777-300ER continues to gain big orders worldwide, Boeing is reported to be offering the B777X in two variants with improved performance. Qatar Airways is expected to order up to 50 of this variant, and Emirates too has confirmed that it is looking at “a healthy number” of these, noting that by the time the B777X is available, it will have 175 B777ERs to replace. The number ordered will depend on the replacement cycle, the Airbus A350-1000s as well as the availability of more Airbus A380s. The B777-9X, one of the two B777Xs that Boeing is reportedly offering, is nicely slotted between the A350-1000 and the A380 in capacity.

A380: a new queen in the making
Airbus envisaged the A380 as the high-capacity workhorse suited to operate between the world’s major hubs, particularly in highly slot-constrained airports such as London-Heathrow and Tokyo-Narita. Singapore Airlines was the first to operate the A380 in October 2007, and with glowing media reports and passenger reviews highlighting the A380s’ stability and ultra-quiet cabins soon after, the A380 quickly became a household name among the travelling public.

Early A380 operators reported higher demand for the superjumbo flights over other aircraft types on the same routes. Many travellers also began to differentiate airlines as those who “have” or “have not” gotten A380s in their fleet.

For those who are already operating the A380 or awaiting delivery of theirs, the superjumbo is the company’s flagship aircraft. Emirates deploys its A380s mostly on longhaul destinations such as Sydney, Singapore, Bangkok, Hong Kong, Kuala Lumpur, London, Los Angeles and Johannesburg and also on shorter services to key European destinations and Saudi Arabia. Emirates, however, has been prevented from operating the A380 into markets such as India and most recently Austria. The cavernous two-deck interior has given airlines tremendous flexibility in customising their premium class cabins. Emirates remains the only airline in the world to install showers and shisha rooms on board its A380s – exclusively for its first class passengers.

Both Qatar Airways and Etihad have 10 A380s on order but have not divulged their configuration plans and cabin facilities. Airbus has just begun production of Qatar Airways’ first A380. Turkish Airlines has also expressed interest in acquiring large-capacity aircraft in the same class as the A380 and Boeing 747-8 Intercontinental but no decision has been announced yet.

Boeing 787 Dreamliner: a nightmarish start
Designed as a replacement for the Boeing 767s and Airbus A310s, the Boeing 787 Dreamliner is a medium-capacity aircraft with the ability to operate on longhaul routes. Boeing had strongly marketed the B787 as an aircraft that could bypass major hubs – Japan Airlines (JAL) has utilised this aircraft in this respect to open up new routes such as Tokyo to Boston and San Jose.

The Dreamliner – already seriously delayed by the time of its first delivery to All Nippon Airways (ANA) – failed to live up to its promise and turned out to be a nightmare for the first batch of recipient airlines (Qatar Airways, ANA, JAL, United Airlines, LAN Airlines and LOT Polish Airlines). Two separate fires in the ion-lithium battery compartment resulted in the worldwide grounding of all B787s in January 2013.

The four-month grounding was lifted after a fix was finally approved in May 2013 and airlines were quick to return their Dreamliners into the sky. Qatar Airways resumed services of the B787-8s on May 20 to serve Dubai, London-Heathrow, Munich and Frankfurt. The B787 is expected to be deployed on its trans-Atlantic routes in 2014.
As more airlines take delivery of their B787s in the next couple of years and barring any further groundings, passengers may forget the initial hiccups and instead focus on the aircraft’s large electro-chromic windows, higher cabin humidity and pressure – factors that mitigate the effects of jetlag – and roomier and quieter cabin. Besides the strong passenger appeal, airlines will also benefit from the B787s’ highly fuel-efficient engines and maintenance savings resulting from the aircraft’s composite structure.
Boeing offers two variants of the Dreamliner: the B787-8 and the higher-capacity B787-9. Although only two of the four carriers reviewed have ordered this aircraft, it is expected that further orders will materialise, especially if Boeing rolls out a higher-capacity and longer-range model that various Middle Eastern carriers have sought.

A350: Airbus’ next venture
A strong competitor to both the B777-300ER and B787 Dreamliner, the Airbus A350 is highly suited for medium- and thin longhaul routes where demand is insufficient to support the use of the B747-8 Intercontinentals and A380s.

At press time, the first A350 painted with the Airbus’ corporate livery has just been unveiled in Toulouse, and will be put through exhaustive tests before starting its maiden flight this summer. A total of three variants have been planned: the A350-900 will be the first to be introduced, followed by the shorter A350-800. The longest, A350-1000, together with the -900 variant, find greater favour among the Gulf carriers. While Turkish Airlines has committed to a renewal of its narrowbody fleet, it has yet to announce its choice of future widebody aircraft and the race is on for Airbus to push for its A350s to be chosen.

Interestingly, Qatar Airways and Etihad have opted to order both the B787 and A350, carefully choosing the variants in both types to minimise capacity and performance overlaps. Given that recent new aircraft types such as the A380 and B787 have faced lengthy delays and performance hiccups, it is perhaps an insurance on the carriers’ part against the non-performance of either the B787 or A350. The A350s will be deployed mainly on longhaul routes to Asia-Pacific, capital and secondary cities in Europe, Africa and other cities in the Middle East where demand is high.

A340: the workhorse of yesteryear
When the competition heated up between the four-engine A340 and the twin-engine B777, Airbus and carriers such as Virgin Atlantic Airways were quick to claim that four engines were more reliable than two. Virgin Atlantic even painted the slogan “4 Engines for Longhaul” on its A340 fleet.

The A340 was produced in four variants – the A340-200, the slightly bigger A340-300, the even larger A340-500 and the longest-range A340-600. None of the Middle Eastern carriers ordered the -200 variant and only Emirates and Turkish Airlines operated the -300 variant. The A340-500 is considered a niche aircraft due to its ultra-long range capability and, as such, were often deployed on services to faraway destinations in North and South America and Australia. Where demand is high on these routes, the A340-600s’ high capacity was put to good use.

While the A340s were considered very quiet and well-suited for longhaul routes by virtue of having four engines, the General Electric GE90 engines that power the B777-300ERs were gaining a reputation for reliability and fuel economy – the latter especially attractive to airline bean counters amid skyrocketing fuel prices. Engine maintenance is a significant cost component and with four engines to maintain, the A340s quickly found the numbers stacked against it. As the A340-600s competed directly against the B777-300ERs, it was no surprise that both Emirates and Qatar Airways utilised every available avenue to cancel all and part of their orders respectively.

All these notwithstanding, the various variants of the A340s were extremely popular with passengers though, most notably for the low cabin ambient noise. Emirates’ small fleet of A340-300s are mostly deployed to European destinations such as St Petersburg, Munich, Milan, Dusseldorf and Glasgow, while Turkish Airlines continues to operate its A340-300s to Asia-Pacific, Europe and North America.

Qatar Airways’ A340-600s are operated to European cities such as Frankfurt, Paris, London and Zurich as well as to farther destinations such as Hong Kong. Etihad’s A340-600s too service many European cities but are also despatched to longhaul destinations such as New York, Sydney and Melbourne.
Ultimately, economics triumphed all else and the A340s were maintained on the current fleet of the Gulf carriers in limited numbers. Production of the A340 was halted as orders evaporated.

This article was first published in TTG Asia, May 31 – June 6, 2013 issue, on page 10. To read more, please view our digital edition or click here to subscribe.

Singapore’s food obsession

By Raini Hamdi

May 31, 2013

The way to a Singaporean’s heart is through his stomach. Raini Hamdi looks at Singapore as a source of and a destination for gourmands, both factors feeding on each other and fuelling growth

Artisanal and mouth-watering: Matt Moran and Jean-Francois Piege’s (top right) masterpieces

When a survey reveals Singapore has overtaken Japan as having the region’s top diners, Singaporeans are probably the least surprised, since their obsession with food is as endemic and conspicuous as the smell of cheese.

MasterCard’s latest survey of the dining-out habits of 7,678 respondents from 16 markets in Asia-Pacific shows that Singaporeans are prepared to fork out twice as much (US$262) as the overall average monthly dining spend of US$130 for the whole Asia-Pacific. Japanese and Chinese follow closely with an average monthly dining spend of U$225 and US$203 respectively. In contrast, the region’s smallest spenders – India and Indonesia – spend US$17 and US$19, or three and four per cent of their monthly household income, respectively, on dining.

According to the survey, Singaporeans’ spending on dining grew by nearly 25 per cent from US$212 in June 2011.

The findings came just as the curtains came down on the 17th World Gourmet Summit in Singapore where, for 11 days, the city’s F&B scene burst like a ripe apricot with 45 special dinners and workshops in 13 host venues, 18 partner restaurants and eight wineries.

Top chefs, including Italy’s Gabriele Ferron (famed for his risotto), France’s “slow food” Jean-Francois Piege and Spain’s chocolate and sugar-pulling artisans Paco & Jacob Torreblanca, partnered the head chefs of their host venues in presenting menus that showed their artisanal skills.

An Italian hands-on culinary workshop featuring masterchefs Corrado Assenza and Lino Sauro was priced S$148+ (US$119), while a Chateau de Beaucastel wine dinner featuring Chef Jean-Francois and Christopher Millar at Stellar at 1-Altitude was sold out, even at S$448+. Food was paired with fashion (an edible catwalk showcasing diamonds had models wearing chocolate dresses), and with arts (a meet-the-cast of Othello with cocktails prepared by five restaurants).

Events such as this put Singapore on the world culinary map, while Singaporeans’ willingness to spend on dining ensures a steady stream of new F&B establishments in the city, said Olivier Bendel, CEO and owner of Déliciae Hospitality Management.

The F&B scene is so sizzling that entrepreneurs such as Paris-born Bendel and top-gun chefs like Bruno Menard – the only three Michelin star chef in Singapore – now call the city home.

Said Bendel: “I’ve opened nine restaurants here in 2.5 years. We’ll open our second L’Entrecôte in the new Suntec Singapore (which is undergoing modernisation) in September and probably one or two more restaurants by the end of this year or beginning 2014. Then we’ll explore opening in the rest of South-east Asia.

“Singapore customers know their food and always want to discover new things, which is good as it keeps us on our toes. They go for both affordable and ultra-fine food.”

Which is why Bendel’s restaurants range from fine-dining such as Forlino, to the funkier and affordable &Made by Bruno Menard, which sells handmade burgers. The majority of customers are Singaporeans, said Bendel. “I’m proud of that, as Singapore is my home now and I want to bring something to the community. I actually did not come here to open restaurants.”

2am:dessertbar’s owner and founder Janice Wong agreed that Singaporeans always want something new. She said: “The challenge is sustain interest and create new consumer experiences.”

Her latest experiment involves techniques with skins and seeds. “Mangosteen, melon and cantaloupe seeds are full of antioxidants and proteins. We’re turning edible stuff that are commonly thrown away into tasty sauces or for inclusions in breads and salads. So eating becomes meaningful and a social education as well,” she said.

Matt Moran, known for his successful Aria restaurant in Sydney aside from being a judge onMasterChef Australia (Season 3), said Singapore’s culinary scene kept getting better each year in the past 11 years he had been visiting. “You can tell by how many chefs are coming here from around the world, by how many great restaurants there are here – Singapore has become a food mecca,” he said. His favourite restaurant in Singapore is André, which he thinks is “top 10 in the world at the moment”. Asked why he had not opened a restaurant here, Moran said: “May be one day.”

India’s celebrity chef and restaurant owner Sanjeev Kapoor, judge of MasterChef India(Season 3), described such reality TV shows as “a theatre of food” – designed to entertain, not educate – and Singapore as “the biggest theatre we have in this part of the world”. But, like Moran, he too was non-committal about opening a restaurant in Singapore. “Let’s see,” said Kapoor.

The fact is, while F&B has become big and Singaporeans are appreciating more good food, operating a restaurant in the city is a challenge even to the best of them. Menard said: “I thought I knew Singapore quite well, as I had been coming here (before moving to Singapore) most of the time. I’ve been here for over a year now and the experience has been challenging, to be honest.

“The biggest frustration is finding people to work in this business and I would not be the only to tell you that. We’re all struggling to find staff who want to spend their lives as a chef, waiter, maitre ’d or sommelier, which in Europe are real professions. It is also difficult to hire foreign talent.

“There’s also the challenge of getting fresh produce. We import of course but you can’t talk ‘fresh’ if you import. Fresh fish for me is fish caught overnight. Here, the freshest and nicest fish you get is five days old. Fortunately, the companies which import are trying to make it faster and better all the time.

“But it’s also exciting to live here, build up the F&B business and create something new from scratch. When I came here 15 years ago, there was nothing in terms of French or European food. Today this is well-represented and there are lots of outstanding restaurants.”

Thailand: Where’s the beef?

THAILAND’s chefs and restaurants continue to build on the kingdom’s reputation as a destination for food lovers, but the country boasts few marquee gourmet events.

Innovative venues continue to spring up across Bangkok, ranging from Water Library, which boasts the city’s most expensive tasting menu, to smaller dining houses such as Opposite, Paste and Supanniga Eating Room.

Two Bangkok restaurants, Nahm and Gaggan, made The World’s 50 Best Restaurants 2013 list. Another two venues, Eat Me Restaurant and Sra Bua by Kiin Kiin, joined them in Asia’s Top 50 Restaurants 2013.

Despite the groundswell of culinary creativity and local restaurants winning international plaudits, Thailand still has few major events or festivals that put it on the global gourmet map.

Last year, the Tourism Authority of Thailand (TAT) and Visa International teamed up to launch Thailand Splash and Spice in Bangkok, a three-month campaign targeting Visa cardholders and international and domestic tourists (see list). “There are about 127 restaurants in this programme,” said a TAT spokesperson. “The programme is open to all restaurants interested in participating. These include hotel restaurants, dining venues at malls and authentic, must-visit local restaurants.”

The campaign is promoted through the media but has no dedicated sales agencies.

Thomas Kinsperger, F&B manager, Mandarin Oriental, Bangkok, said Thailand Splash and Spice had not worked well for the hotel last year.

In general, Mandarin Oriental, like many high-end establishments, relies on its own activities and organises five or more events with Michelin-starred chefs each year.

“We always target chefs that cook a similar cuisine to what we do in a particular outlet (we host the event in),” Kinsperger said. “It is important to us that the chefs are all established and known worldwide and have not been to Bangkok previously.”

Despite bringing in some of the best chefs in the world, a majority of diners at these events are local Thais or expatriates, with only one in 10 bookings into the hotel for the experience.

Of the handful gourmet events Thailand has, the pinnacle is the Annual World Gourmet Festival hosted by Four Seasons Hotel Bangkok, a week-long extravaganza which has built its reputation over the past 13 years. But tour operators still tend to focus on Thai food as more of a cultural experience when putting together packages, rather than emphasising high-end cuisine.

“We’re not really influenced by food festivals or visiting chefs,” explained Michael Lynden-Bell, Thailand general manager, Exotissimo Travel.
A concerted effort from the public and private sectors is needed to promote the country as the foody destination in South-east Asia, said Kinsperger. “Both sectors should drive this, but particularly the TAT,” he added. – Greg Lowe

Key F&B events in Thailand
Thailand Splash and Spice, March 15 – May 31 This campaign by TAT and Visa International was launched last year. This year’s event went beyond Bangkok to include Chiang Mai, Pattaya and Phuket. Prices start at 749++ baht (US$25) for lunch and 1,499++ baht for dinner.

14th Annual World Gourmet Festival 2013, September 2-8 Hosted by Four Seasons Hotel Bangkok, this event has grown over the years into Bangkok’s premier culinary event. Last year, eight top chefs from around the world were flown in with each showcasing their cuisine for two nights.

Samui Fine Dining Festival Now in its second year, this biannual two-month long event focuses on Thai and international chefs based on the island rather than flying in culinary superstars for one-off events. Each night, 16 restaurants create special six-course menus priced from 1,800 baht to 4,900 baht per head. More than 2,500 menus were created in March and April during the event earlier this year. The next takes place in June.

This article was first published in TTG Asia, May 31 – June 6, 2013 issue, on page 14. To read more, please view our digital edition or click here to subscribe.

SIA splashes out on 60 new aircraft

By TTG Asia

May 31, 2013

SINGAPORE Airlines (SIA) has announced its intention to place a US$17 billion order for 30 Airbus A350-900s and 30 Boeing 787-10Xs.

The airline is slated to take delivery of the A350-900s in the financial year 2016/17, plus options for 20 more that may be converted into orders for larger A350-1000s.

The B787-10Xs, intended for deployment on medium-haul routes, are scheduled for delivery in 2018/19.

These new orders increase the number of firm aircraft commitments SIA has with Airbus and Boeing to 126, the airline said in a press release.

SIA CEO, Goh Choon Phong, said: “Today’s aircraft orders are among the biggest in SIA’s history, helping to ensure that we retain our industry leading position.

“These new aircraft will provide opportunities to grow and renew our fleet and enhance our network, benefiting customers by offering more travel options and the latest in-flight cabin products.”

Hard Rock catches strong MICE

By Rosa Ocampo

May 31, 2013

HARD Rock Hotels in Asia have seen growing MICE business and room occupancies, thanks to renovations and product enhancement undertaken over the last three years.

Hard Rock Hotel Bali recorded an average MICE business of 25-30 per cent out of its overall business, while its Pattaya and Penang properties posted 20-25 per cent each – and (the percentage is) increasing, said Michael Chua, vice president sales and marketing of HPL Hotels & Resorts, which operates the three properties.

The hotels’ “fun” meeting and events facilities are a big hit among MICE clients, a lot of whom hail from Singapore, Malaysia, Thailand and India, he said.

The new facilities, including the kids club Lil Rock and the self-contained Tabu club for teenagers, also cater to family-oriented Asians who may bring their families to meetings and conferences.

Hard Rock Hotel Bali director of sales, Fabio Simorangkir, said MICE from Australia is on the rise. The hotel had hosted 15 MICE groups from Australia between January and May, with more to come in 2013.

However, Russian MICE business has fallen as compared to the last two years due to strong competition posed by Thailand, he commented.

Chua said that while Hard Rock is “passé” in Europe, Asians still love the brand. HPL is keen on expanding the Hard Rock brand and is considering destinations such as Phuket, Kuala Lumpur, Jakarta, Bangkok and Hong Kong.

“We’re still learning but we would like to have more presence in the market. At the top of our list is developing more Hard Rock hotels in key tourism areas,” he added.

Italian NTO reopens India office

By Shekhar Niyogi

May 31, 2013

ENIT, the Italian national tourism board, earlier this week reopened its sole Mumbai office after a year-long absence in India.

Daniele Mancini, Italian ambassador to India, said at the opening: “India today is a high potential tourism market and numbers can only grow from here onwards in the coming years.”

ENIT set up its only Indian office in Mumbai in 2001, and has seen Indian outbound to Italy grow from 69,000 then to 467,000 in 2012.

“In the last one year, in spite of our absence in the Indian market, Italy has still recorded an important growth in tourist flow that shows the keen interest of Indian travellers towards Italy,” said Salvatore Ianniello, India representative, ENIT.

“We are looking forward to re-strengthening our past collaborations with our Indian trade partners and will be commencing shortly all activities related to the dissemination of travel-related information on Italy, such as educational and fam trips, location scouting, co-marketing activities, roadshows etc, and most importantly, being the point of contact for destination Italy.”

The NTO is planning workshops for the travel trade and will bank on Italy’s popularity as a setting for Indian films. ENIT will also establish the Italia Academy in 3Q2013, where Indian tour operators will attend training programmes in both India and Italy.

Koushik Goswami, general manager – outbound, Travelcorp, said: “Working in tandem with ENIT will help establish new circuits and identify new products in Italy, a destination that we have been selling for the last 15 years.”

Singaporeans give China, South Korea a miss for June

By Paige Lee Pei Qi

May 31, 2013

FEWER Singaporeans will be heading to China and South Korea, two traditionally popular destinations for the June school holiday period that begins next Monday.

Like their Malaysian counterparts, Singapore outbound tour operators attributed the decline in interest to the earlier H7N9 scare in China and the ongoing political tussle between North and South Korea (TTG Asia e-Daily, May 27, 2013).

Chan Brothers Travel marketing and communications manager, Jane Chang, said: “Despite (the absence of) travel advisories from the Ministry of Foreign Affairs discouraging travel to China and South Korea, and the reassurance by tourism boards that everything is still running as per normal, the decline in sales for the June holidays is undeniable.”

She said the agency has witnessed a 30 per cent and 20 per cent dip in bookings for China and South Korea respectively, compared to the same period last year.

Similarly, CTC Travel senior vice president, marketing and PR, Alicia Seah, said demand for the two countries has fallen by 25 per cent year-on-year to the benefit of Japan, Taiwan and Australia, which have emerged as the most popular destinations this June.

Nevertheless, Seah feels that demand for China and South Korea would rise in the near future. “We are hopeful that (the current fall in bookings) will now build a pent-up demand among our travellers, especially now that the situation (in China and South Korea) seems to have settled and they can be confident of travelling there again.”

Seah predicts travel demand for China and South Korea will “definitely go up” for the next holiday period in December.

Indonesia AirAsia strengthens Australia, Malaysia services

By TTG Asia

May 31, 2013

INDONESIA AirAsia is improving its network of flights to Malaysia and Australia, reviving cancelled routes and stepping up frequencies.

The LCC will increase the frequency of its Lombok-Kuala Lumpur service from four flights a week to daily as of June 11, and restart thrice-weekly Denpasar-Kota Kinabalu flights on July 27. The latter was scrapped a few years ago.

To Australia, Indonesia AirAsia is also reopening its Denpasar-Darwin service with four-times-weekly flights beginning July 1. The route was axed last year.

Also starting July 1, the carrier will increase the number of Denpasar-Perth services from thrice-daily to four times a day.

Traders Hotel Puteri Harbour debuts in Johor

By TTG Asia

May 31, 2013

SHANGRI-LA Hotels and Resorts is set to launch Traders Hotel Puteri Harbour on June 1, the third property under the Traders Hotel brand in Malaysia.

The 283-room Traders Hotel Puteri Harbour is a 20-minute drive from downtown Singapore and within hours from Kuala Lumpur via the North-South Highway.

Part of the Little Red Cube development, the hotel provides guests quick access to the Legoland Malaysia, the indoor Puteri Harbour Family Theme Park featuring Sanrio Hello Kitty Town and the Little Big Club, as well as LAT’s Place (TTG Asia e-Daily, March 28, 2013).

Rooms and suites range from 33-96m², and guests who stay on the Traders Club floor will enjoy a private lounge with breakfast, refreshments and evening cocktails; personalised check-in and check-out; meeting areas and a Club concierge.

Other amenities include free Internet access throughout the hotel, a rooftop infinity pool, a health club with massage services, a landscaped rooftop garden, a business centre and a free shuttle service to Legoland Malaysia. F&B options include all-day dining at the Harbour Café restaurant, rooftop SkyBar, the Lobby Lounge and takeaway outlet, On-the-Go.

Meeting planners can make use of the 515m² Iskandar Ballroom and its reception area, which accommodates up to 600 pax, or any of the hotel’s five other meeting halls offering a bird’s-eye view of the hotel surroundings.

STB takes steps to help agencies focus on quality

By Raini Hamdi

May 31, 2013

THE Singapore Tourism Board (STB) is taking steps to help inbound agencies focus on attracting quality tourists, one of which is sharing consumer insights gleaned by its regional offices, which the trade can use to devise more ‘bespoke’ and tailor-made itineraries.

Another measure is to help identify and develop more training programmes to upgrade the skills of agency staff, in conjunction with national bodies such as the Workforce Development Agency (WDA). The new NATAS accreditation scheme (TTG Asia e-Daily, February 22, 2013) is one such programme.

STB’s CEO, Lionel Yeo, told TTG Asia e-Daily about these measures when asked what STB’s plans were to help agencies shift from competing on price to competing on expertise.

On the sharing of market intelligence, Yeo said: “We’ve been developing capability around market intelligence…We’re not just sharing, say, an understanding of the China market, but breaking down to markets such as Shanghai and Chengdu and what our focused studies show. This will help them to be more strategic in using these market insights to develop programmes.”

STB is also reviewing the Travel Agents Act & Regulations and Tourist Guides Regulations to ensure a pro-business regulatory framework that enables the industry to better cater to discerning travellers.

“We think there are players out there who may have innovative ideas – how do we help them do so without having to cross a lot of regulatory hurdles or a high entry bar?

“Tour guides have given us the feedback they have to work through travel agencies. In a sense, that’s a barrier to someone who wants to operate as a freelancer in doing his own walking tours, for example. So how do we make it easier for some of the more enterprising tour guides to do so?”

The review is still under way with no definitive conclusions as yet.

– View from the Top with Lionel Yeo, TTG Asia, June 14, 2013