Made in Singapore

April 5, 2013

After three decades of climbing the industry rungs, Kiong has reached the top spot as CEO of a hotel management group. Watch him build a ‘Singapore-inspired hospitality brand’

Arthur Kiong, CEO, Far East Hospitality (FEH), Singapore

Now that you are CEO, you can do things the way you feel they should be done, achieve dreams you’ve always longed for.
Those were exactly the thoughts that went through my mind when I considered this opportunity. At the top end, how many people in their careers have an opportunity to create a proprietary hospitality brand? And should one be given the chance, what would this brand be, how do you articulate it, how do you rally others to say, ‘yes, that resonates with me’?

And what proprietary hotel brand have you always dreamed of?
I’ve always dreamed of building a homegrown, world-class brand of hospitality which is Singapore-inspired, which I think will differentiate us.

Everyone says ‘we are Asian hospitality’. But in reality there is no ‘one Asia’; Koreans are different from Chinese or Thais. As a Singapore homegrown company, Singapore-inspired hospitality is what I want to deliver.

What is Singapore-inspired hospitality?
I thought of three words: kind, assertive and perceptive, i.e. observe and adapt what’s relevant.

I draw parallels of the Singapore story with us as an upstart. When Singapore first started, one man (Lee Kuan Yew) said this was all we’ve got and we have to make a success of it. We have a disparate group of people – Chinese, Malays, Indians, and Eurasians – and we must be inclusive. Pragmatism and striving for excellence are important.

How are you planning to translate this into a hotel brand promise?
I’ve come up with 10 core values under the acronym ACTOR’S CODE because this is how we are going to act: according to a set of principles that defines and differentiates us.

A is for attitude. If you think about it, Singapore is an attitude. It’s small with no natural resources but it not only wants to survive but compete with the best. We’re the same.

C is for customers. We strive to provide something that international hotel chains say, ‘hey, maybe they do this better’.

T is for team. Just like Singapore integrates its four races, we have to break down the silos, so it’s not departments versus departments, hotels versus hotels, but one cohesive team.

O is for others, i.e. we focus on the strengths of others and make their weaknesses irrelevant.

R is for responsiveness, S for savviness.

As for CODE, C is for change, which is constant, so people cannot hang on to old mindsets. O is for observation – we learn by observing. D is about delegation; when we delegate, we must ensure the person has the skills, autonomy and purpose to do the task. And lastly E is to engender trust.

Singapore’s hotel industry is 50 years old and Singapore’s success is admired globally, But few, if any, local chains have trumpeted the connection. Why is that so?
Their starting point is different. Many local chains benchmark against Western chains and seek to emulate them. But if we’ve come of age, shouldn’t we be asking, ‘who is our customer, who am I’?

Westerners eat with six cutlery and six wine glasses, and that becomes the definitive standard which we aspire to. Why not evolve from the banana leaf and redefine the meal? The lens then changes from a Western perspective to a local perspective.

You were with Far East Organization (FEO) heading its then new Hotel Division from 2005-2008. You returned last year to drive FEH, which is part of FEO’s recently launched REIT. How different is the game now?
When I first joined, the brief was different; it was to consolidate five disparate hotels, and eventually the service residences, into a division. It was an organisation challenge.

Is it a new game? Yes and no. No, because I understand the organisation, people and circumstances. Yes, because the REIT offers resources and opportunities.

“Many local chains benchmark against Western chains. But if we’ve come of age, shouldn’t we (question that)?”

Because of the REIT are you under pressure to grow quickly?
Yes, of course, the REIT was incredibly successful and with the price being decent, there’s a lot of enthusiasm. We also have a lot suitors knocking on our doors for our hospitality management business. But it’s for us to manage this and not be fools rushing in. We must be clear about who we are, and who we are is this: we are business people in a people business. Our development strategy is first through the EBIT yield of the site – is it sustainable? A hotelier’s way might be through product, facilities, level of service, then finding the customer for it. That’s not us.

Who, apart from Straits Trading, are the suitors?
Rendezvous, Toga in Australia – for every two we’re talking to, many are calling for a date. The danger is to be flattered and tempted into dating everyone, and before you know it, lose focus. No, we want to stay on track with our geographic and market focus and add value.

What’s your geographic and market focus?
We will grow in a disciplined manner, with Singapore as our primary focus, followed by South-east Asia, then balance the high growth and high risk of South-east Asia with Australia, which is transparent, predictable but has a different cycle. And after that, cast our eyes on Asia.

Our market is the upper mid-tier and, again, we must be disciplined. The upper mid-tier is itself a broad market, so we must be able to niche the sub-segments and define our brands clearly. Others may want to provide more and more; we want to provide what is relevant in the most elegant manner, comfort without excess that people don’t want to pay for.

Many people say your brands are a mishmash and confusing.
The priority is to consolidate everything under a master brand, FEH, which is the largest operator of hotels and service residences in Singapore. It’s the orchid if you like and from one stem, there can be different flowers – Oasia, Quincy, Village, etc. As I said, the upper mid-tier is itself a broad market. Oasia is for efficient, sharp, business people; Quincy is for the fashionistas; Village for those seeking local flavours. None of them want to overpay. All want comfort and don’t want to pay for the excesses.

So phase one, which we will embark on this year, is creating a strong master brand, FEH.

Are you only into management contracts?
FEH manages, Far East Orchard can invest or take an equity stake, and FEO (of which Kiong is executive director) has the resources/expertise to build and design.

What was your biggest challenge in the past six months?
Getting buy-in to the Singapore-inspired vision. To articulate it so everyone understands is itself a challenge, then communicating it, getting them to believe in it and seeing it have a life of its own. I don’t write the screenplay. I come up with the outline and we write it together. And in the end, we must be able to measure it through financial results and improved customer reviews. If not, we’re just believing our own hubris, we’re just on an ego trip.

Harbouring cruise hopes

By TTG Asia

April 5, 2013

Asia is the new must-stop for international cruises, but not all destinations have the necessary hardware and software. Who are the front runners and who are those that need to shape up or ship out?

Port Klang Cruise Centre

Malaysia
By S Puvaneswary

Volume Cruise passengers to Malaysia have been steadily rising in the last three years, with this year’s figure estimated to exceed half a million. In 2012, Penang handled the largest number (211,554), followed by Klang (141,266) and Malacca (54,166). This corresponds with the number of international cruise ship calls recorded by the country last year. Penang received the most calls (139), followed by Klang (98) and Malacca (37).

This year, however, Langkawi is expected to claim the third spot, beating Malacca with 59,600 passengers and 52 calls.

Port Klang Cruise Centre head of corporate communications, Ahmad Kamal Abdollah, said: “We see increasing berth bookings for the next two years by larger ships on itineraries previously undertaken by smaller counterparts.

“In East Malaysia, the opportunity to develop exotic itineraries leveraging on the locations’ pristine natural beauty and local cultural elements remains very attractive. Larger ships have also been exploring this location as part of their itineraries, previously considered mainly by smaller ships.”

Industry developments To encourage foreign cruise vessels to offer services between Malaysian shores, all cruise vessels were exempted from the cabotage policy as of March 2012.

Tourism Malaysia’s director of industry development, Saidi Bundan, explained that the policy previously only allowed vessels that had been registered in Malaysia to load and unload passengers at Malaysian ports. With this exemption, international cruise ships are now able to disembark and re-embark passengers at more than one Malaysian port.

Another encouraging development is the formation of the Malaysian Cruise Council in June 2012, whose main task is to chart the direction of the country’s cruise industry and coordinate marketing efforts to attract cruise liners.

Port authorities have also been looking into the infrastructure required at the six primary ports of Penang, Klang, Kota Kinabalu, Langkawi, Malacca and Kuching, according to Mirza Mohammad Taiyab, director-general of Tourism Malaysia.

“Efforts will be focused on identifying the improvements needed at these ports to make them more attractive as cruise destinations,” he said.

What needs to be tackled

Marketing
Lim Chee Tong, managing director, Jebsen Travel & Tours Services
“More awareness needs to be created to inform cruise lines about what the country has to offer to entice them to homeport here. For example, in Penang, cruise passengers can easily move around on their own as the port is close to the city, while its local food is great. Langkawi’s attraction is that it has free port status.”

Shore excursions
Ahmad Kamal Abdollah, head of corporate communications, Port Klang Cruise Centre
“We would like to see tour operators freshening up their product offerings with innovative shore excursions, as we anticipate increased numbers of repeat cruisers who will want to experience new things at ports they have been to before.”

Singapore Cruise Centre

Singapore
By Lee Pei Qi

Volume Larger ships were previously unable to call at Singapore because of height restrictions faced at the Singapore Cruise Centre (SCC). However, the birth of the Marina Bay Cruise Centre Singapore (MBCCS) has since allowed Singapore to cater to bigger cruise ships.

Ong Huey Hong, director, cruise, Singapore Tourism Board (STB), said: “In 2012, Singapore saw more than a threefold increase in the number of maiden calls to Singapore compared to 2011. These maiden calls include the largest ships to ever homeport in Asia.

“From 2002 to 2011, cruise passenger throughput has grown at a compounded annual growth rate of 3.6 per cent. A preliminary estimate for cruise passenger throughput in 2012 is 907,000, with 332 ship calls.”

The arrival of Voyager of the Seas last year paved the way for the newer generation of larger cruise liners to dock in Singapore, including Oasis-class ships, observed Melvin Vu, CEO of SATS-Creuers Cruise Services, operator of MBCCS.

World Express managing director, Darren Tan, agreed. “We’re seeing great diversity in the types of ships calling, with even six-star luxury cruises and mega-size cruise ships,” he said.

Industry developments Considered the cruise hub of Asia, Singapore currently has two extensive cruise centres that boast superior facilities: SCC and MBCCS, which opened last October.

Located in the heart of the city, MBCCS, which has two berths and can handle 6,800 passengers at any one time, effectively doubled Singapore’s berth capacity.

Refusing to be left behind, SCC rejuvenated its terminal at HarbourFront in southern Singapore last November, creating a 26 per cent increase in passenger operations space and enabling it to handle 4,000 passengers at any one time.

Said SCC CEO, Christina Siaw: “As a well-known and reputed marine port, Singapore is a preferred spot for homeporting because everything provided is very sophisticated.”

Recognising this, Costa Cruises opened an office in Singapore last year and, for the first time, made Singapore its homeport last November.

STB’s Ong said: “This shows that cruise lines are recognising the potential in Singapore’s cruise industry and are placing greater emphasis on Asia.”

She added that STB is also building a bigger source market, working with the Asia Cruise Association and cruise lines to raise awareness of cruise tourism.

What needs to be tackled

Port facilities
Kevin Leong, general manager, Asia Cruise Association
“There can be more CIQ and terminal operator support in Singapore – especially during the weekends when ships with more international guests do their turnarounds – more taxis for disembarking guests and more flexibility in dockage charges, especially at MBCCS.”

Complete visitor experience
Darren Tan, managing director, World Express
“There are multiple factors that affect the guest experience when passengers arrive or depart via cruise ships. You need all parties to share the same objective to deliver a great visitor experience in terms of what they see as a tourist as well as efficiency in entering and exiting the country.”

Thailand
By Xinyi Liang-Pholsena

Volume Phuket received the highest number of international cruise passengers in 2012 out of all ports of entry. It had 188,771 arrivals, although this was a dip of 22.8 per cent from 244,569 in 2011. Bangkok saw a slight hike of 3.9 per cent to 5,970 passengers in 2012 from 5,745 in 2011, while Laem Chabang recorded robust growth of 34.5 per cent from 43,324 passengers in 2011 to 58,253 in 2012.

Cruises entering Thai shores are bulking up in size and quality, noted Regale International Travel general manager, Sukanya Rattanavadee. “Voyager of the Seas and Costa Atlanticaare also sailing to Thailand since the ships started homeporting in Singapore (in 2012 and 2013 respectively), as well as Queen Mary 2.”

New luxury vessels include the 112-pax SeaDream II, which will sail to Phuket during her inaugural Asian season in late 2013, while the 1,060-pax Ocean Dream launched her maiden Pattaya-Koh Samui-Sihanoukville cruise in the Gulf of Thailand from Laem Chabang last August.

Said Massy Mittakarin, general manager of Tour East Thailand: “With more cruise liners including Thailand in their itineraries, I expect inbound cruise demand to continue growing.”

Industry developments Rising demand, however, has not been met by dedicated cruise port development, say industry stakeholders.

Tourism Authority of Thailand (TAT), governor, Suraphon Svetasreni, said: “We recognise cruise travellers as a high-end market group with high spending power that can generate more income for the country. However, in terms of infrastructure, this requires a large amount of investment and cooperation from different government agencies; thus, this has resulted in the slowness of the (development) of required infrastructure.”

The Thai government should invest in a dedicated cruise terminal if it doesn’t want the country to lag behind, urged Regale International Travel’s Sukanya. “Singapore already has a new cruise centre while Hong Kong is adding the Kai Tak Cruise Terminal soon. Right now, the Laem Chabang deep-sea port is intensively used for cargo, while most cruise ships docking at Phuket port still need tenders,” she said.

What needs to be tackled

Port facilities
Suraphon Svetasreni, governor, Tourism Authority of Thailand
“We need to offer a good quality product including attractions, facilities and services that meet international standards. Facilitation of immigration procedures and transportation is also needed.

Tobias Fischer, business development director, Go Vacation Thailand

“Authorities should attend more cruise trade shows and invest in port infrastructure for commercial development. Laem Chabang also does not have enough tourist facilities even though it is large enough to handle big ships and is used as the main gateway to Bangkok.”

Indonesia
By Mimi Hudoyo

Volume The modernisation of ports across Asia has had a spillover effect on Indonesia, as the country is expecting a 54 per cent jump in cruise calls this year.

Some 308 calls with 147,134 passengers are scheduled, up from 199 calls and 118,834 passengers in 2012 and 176 calls with 112,882 passengers in 2011. This looks set to further increase in 2014, with 320 calls and 200,000 passengers planned.

Some of the new ships calling at Indonesia this year are Aegean Odyssey (378 passengers) and Pacific Venus (846 passengers), both arriving in Bali. Artania, on the other hand, visited Semarang with 1,200 passengers.

“Cruise lines do not only see Asia, including Indonesia, as a destination but also a market,” said Indonesia’s Ministry of Tourism and Creative Economy director of MICE and special interest marketing, Rizki Handayani.

She added that the port developments in Asia, such as in Singapore, China and South Korea, have allowed more cruise lines to deploy ships and develop itineraries in the region, opening up opportunities for Indonesia.

A greater number of expedition ships are also coming, noted Destination Asia Indonesia managing director, Sediya Yasa. They include Orion and Clipper Odyssey.

“Being small ships, they can cruise to places like West Papua, East and West Nusa Tenggara and Kalimantan areas, (which have exotic nature and culture).”

Industry developments Cruising is one of the special interest segments the Ministry of Tourism and Creative Economy is currently focusing on. It is working with the Ministry of Transportation and port authorities to improve facilities and services, while undertaking cruise promotions on the international stage.

Most of the cruise interest still centres on Bali, although Benoa Harbour is hampered by the fact that it is still unable to accommodate large ships carrying more than 2,000 passengers. One of the priorities is for Bali to be able to cater to turnarounds within the next few years.

Benoa’s channel is now 10m deep, but it needs to be at least 14m deep and 150m wide. According to Rizki, Indonesia’s transport ministry has committed to setting aside money to deepen the channel to 12m this year and 14m by 2014.

Meanwhile, port developments are also under way in other parts of Indonesia such as Semarang and Lombok, enabling big ships to berth, while a second port in Bali is being planned in Tanah Ampo.

What needs to be tackled

Cruise agents
Rizki Handayani, director of MICE and special interest marketing, Ministry of Tourism and Creative Economy
“We need to have more cruise agents in Indonesia in order to develop a wider variety of shore excursions. There are only about six active ones. It may take a lot of investment and effort to handle and win the trust of cruise lines initially, but it is good business.”

Land attractions
Sediya Yasa, managing director, Destination Asia Indonesia
“Developing new destinations is not only about building ports, but also attractions. Semarang Port, for example, has the Borobudur Temple, and Probolinggo in East Java, Mount Bromo. What else do we have? We need to find new highlights.”

Kai Tak Cruise Terminal

Hong Kong
By Prudence Lui

Volume Hong Kong has not seen tremendous growth in its number of ship calls and passenger throughput over the last three years, with calls totalling 2,166 in 2012, 2,125 in 2011 and 2,111 in 2010. This figure, however, includes cruises without destination.

Cruises with Hong Kong as a destination, including using it as a transit or homeport, accounted for 98 calls in 2012, 104 in 2011 and 120 in 2010.

Correspondingly, passenger numbers also did not shift much, with 1.4 million passengers arriving in Hong Kong last year, compared to 1.6 million in 2011 and 1.5 million in 2010.

Sightseers (HK) managing director, Linda Yuen, said: “In the last few years, there weren’t many big changes, except more travel consultants venturing into selling cruises. Cruise lines like Costa Cruises are also now deploying bigger vessels to serve the market.”

Industry developments Hong Kong’s capacity limitations will be alleviated in June. Said a Tourism Commission spokesperson: “The commissioning of the Kai Tak Cruise Terminal, which will be able to accommodate the largest cruise ships up to gross tonnage of 220,000 tonnes, will solve this problem. Bigger ships will no longer be required to make alternative berthing arrangements.”

She added that Hong Kong Tourism Board had organised the inaugural Seatrade Hong Kong Cruise Forum in January to encourage itinerary development and regional cooperation.

“Together with the well-established Ocean Terminal in Tsim Sha Tsui, the cruise berthing capacity of Hong Kong will be greatly enhanced, welcoming all types of cruise ships from the world,” said the spokesperson.

Thrice the size of the existing Ocean Terminal, Kai Tak’s second berth will be ready in mid-2014. At least 16 ships are scheduled to arrive up until April 23, 2014, such as Diamond Princess and Celebrity Millennium.

What needs to be tackled

Recognition as a source market
Lanny Leung, CEO, Wing On Travel Service
“It would be a big help if cruise operators could make Hong Kong their homeport or put it in their itineraries so travellers could board here instead of flying overseas. Given the rising demand for cruises, especially from China and Hong Kong, the segment demonstrates positive growth.”

Visa facilitation
Jeff Bent, director – cruise, rail and business development, Worldwide Flight Services
“We hope that NTOs can help to persuade their governments to either waive visa restrictions for cruise visitors or make visas on arrival free and quick. They should also assist cruise lines to develop regional itineraries in tandem with other NTOs.”

Philippines
By Rosa Ocampo

Volume While numbers are still small, data from the Department of Tourism shows that there are more international cruise ships calling on the Philippines.

Last year, ports received 17 cruise ships with 13,466 passengers, a leap from 11 ships with 9,770 passengers in 2011. In the first quarter of this year, 13 ships with 7,897 passengers called on Manila’s South Harbor alone.

Despite its substandard facilities, Manila’s South Harbour is the top port in the country based on number of calls. Cebu takes second place as the principal port of entry into the Visayas.

From only three ports of call in 2011 (Manila, Cebu and Puerto Princesa), this saw an increase to six (adding Cagayan, Romblon and Subic) in 2012.

Marilyn Tungia, inbound tour supervisor at Sharp Travel Services, said the trends include bigger ships coming in such as Queen Victoria with 1,800 passengers last month, ships calling with more frequency, and the inclusion of new destinations such as the Hundred Islands in Pangasinan, La Union.

Industry developments Ironically, for a country that has thousands of islands, the Philippines lags in developing its cruise facilities.

Even the country’s main international port in Manila has no dedicated cruise facilities as it was designed for handling cargo. There have been plans to gradually shift cargo operations to Batangas and Subic, but there has not been progress.

International cruise ships call at Pier 15 at the Manila South Harbour, which is also shared by cargo ships, visiting warships and inter-island vessels. Pier 15 can accommodate five regular ships at one time and has a passenger terminal for up to 2,000 passengers.

As it is known to be dirty, dusty and unsightly, it has become an embarrassment for the travel trade who are clamouring for its overhaul.

By infrastructure, the Subic Bay Freeport Zone is the best in the country and the only one that meets the standards of many cruise lines. However, Subic’s tourist attractions need more packaging and promotion.

Subic Bay Metropolitan Authority chairman and administrator, Roberto Garcia, said an integrated world-class family resort was on the cards for Subic, which would include a cruise ship passenger terminal in the area of the unused international airport. He added that the project would commence as soon as the feasibility study has been approved by the Philippine president.

What needs to be tackled

Port facilities
Carla Mariano, Blue Horizons Travel & Tours manager – groups, MICE and special projects
“We would like the ports to be kept clean, with well-maintained restrooms. There should also be a welcome ceremony for ships in the form of musical entertainment and activities showcasing what the local destination is all about.”

Shore excursions
Maria Corazon Jorda-Apo, group head, North America and Asia-Pacific, Department of Tourism (DoT)
“The DoT is encouraging inbound tour operators to offer shore excursions that are interactive, educational, experiential and enjoyable.”

Asia’s economic stars – Philippines, Indonesia, Myanmar

By TTG Asia

April 5, 2013

Here are our picks of cities across the region that are emerging as bright spots for corporate travellers

[ Philippines ]
By Marianne Carandang

DAVAO

WHY IT’S BOOMING A thriving agribusiness centre and exporter, Davao is home to multinational food companies like Dole, and is an up-and-coming ICT hub, particularly for business process outsourcing (BPO) and software solutions. Business travellers hail from Singapore, the US and, increasingly, from South Korea.

ACCESS/ACCOMMODATION Davao is linked by flights to Manila, Cebu and Clark international airports, but remains hobbled by a lack of crucial regional connections to Singapore and Malaysia.

According to the Philippine Department of Tourism (DoT) Region XI director, Art Boncato, Davao City has about 7,000 rooms and 10,000 rooms in the Davao Region. The 186-room Seda Abreeza and the 204-room Park Inn by Radisson Davao are recent additions to the city. Average room rates in the city’s top-tier hotels hover around PHP3,000 (US$73); on Samal Island, a resort and medium-sized meetings destination, the average room rate at Pearl Farm Beach Resort is PHP6,500.

Major hotels such as the Waterfront, Royal Mandaya, Apo View and Marco Polo can handle about 200-250 pax in their MICE facilities. At Samal Island, Pearl Farm can accommodate 80-250 pax at its meetings and events venues.

Davao’s appeal as a MICE destination is set to rise, especially with the opening of the 7,835m² SMX Convention Center Davao in SM Lanang Premier in December 2012. Located just 2.5km from Francisco Bangoy International Airport, SMX Davao hosted about 500 participants during the Philippine MICE Convention 2013 in March.

LIFESTYLE ASPECTS Davao city is a shopping and food paradise with a myriad of fresh and grilled seafood. Ayala Land’s Abreeza Mall opened in May 2011, followed by SM Lanang Premier in September 2011. A 30-minute ferry ride away are the Samal and Talicud islands, home to many beach resorts and top dive spots like Dapia Reef, Ligid Caves and Malipano. Outdoor enthusiasts can go hiking at Mount Apo Natural Park or whitewater rafting down Davao River.

ILOILO

WHY IT’S BOOMING Many of the country’s richest families built their wealth in Iloilo, where the economy is driven by agribusiness, seafood, handicraft and furniture. Iloilo’s heritage, eco- and agritourism are also creating business opportunities in tourism.

Since 2003, the BPO sector has been steadily rising in Iloilo, with 13 IT-BPO firms employing over 6,000 people as of mid-2012. According to Iloilo mayor Jed Mabilog, a major French IT firm setting up in the city will bring in 8,000 jobs.

The 54-hectare Iloilo Business Park will become the largest IT park in Iloilo when completed in 2015, with BPO facilities offering 24,000 seats, adding to the four parks currently in operation.

ACCESS/ACCOMMODATION Cebu Pacific made Iloilo its sixth hub in 2012, and began offering flights to Hong Kong and Singapore from last November. “We see a lot of business travel on our Iloilo routes, primarily because our direct flights eliminate the need for connecting flights or overnight stays,” said Cebu Pacific’s vice president for marketing and distribution, Candice Iyog.

The route also connects businessmen from Iloilo with regional business cities like Shenzhen, said Erlinda Tan, operations manager at JLT Travel and Tours, adding that the recently renovated Iloilo International Airport is also driving business.

According to DoT’s Region VI OIC, Helen Catalbas, there are 2,962 rooms in the city as of July 2012, of which 1,100 rooms are spread across 14 DoT-accredited first- and standard-class hotels.

Save for the festive season (Dinagyang in January and Paraw Regatta in February), rooms are priced from PHP800 to PHP 2,500. “There is a lack of range in accommodation, which Iloilo is now trying to address,” said Aileen Clemente, president of Rajah Travel.

The 187-room Sarabia Manor Hotel has a 1,200-pax convention centre. The Iloilo Convention Center, located in the upcoming Iloilo Business Park, will have a total floor area of 6,400m², a 3,700-pax main hall and eight 500-seat function rooms. The Philippine government is looking at hosting some of the APEC Summit 2015 events here.

A 90-room Richmonde hotel will also open in 2013 at the Iloilo Business Park, followed by two more hotels – Le Grand Richmonde and Marriott Courtyard – at the same venue.

LIFESTYLE ASPECTS Iloilo is a picturesque city with Spanish and American mansions and heritage churches, the most famous of which is the Miag-ao Church, a UNESCO World Heritage Site.

Iloilo is also a popular jumping-off point to neighbouring beach destinations. Guimaras is a mere 30-minute ferry ride away and Bacolod is 45 minutes away by fast craft. Capiz, a two-hour drive away, is the Philippine seafood capital and a culinary destination in its own right.

[ INDONESIA ]
By Mimi Hudoyo

SURABAYA

WHY IT’S BOOMING Home to one of the country’s busiest seaports, Surabaya is a major commercial centre in the eastern region of Indonesia. It is also the capital city of East Java province whose major economic sectors include marine and shipbuilding, industrial automation, vehicle manufacturing, energy production, plastic and packaging.

ACCESS/ACCOMMODATION Surabaya is well-connected by road and rail with the rest of Java island, and by air and sea with other parts of Indonesia. Air links to Singapore, Malaysia, Taiwan, Hong Kong and Brunei are served by carriers like Cathay Pacific, China Airlines, AirAsia, EVA Air, Valuair and Saudia.

Budget and upscale properties are available, with established brands such as Sheraton, JW Marriott, Shangri-La, Swiss-Belhotel and Santika. The city’s total star-rated inventory stands at 5,500 rooms, with rates ranging from Rp250,000 (US$26) to Rp2.3 million.

Supermall Surabaya Convention Centre has a 453m² exhibition hall that can accommodate 5,000 pax in theatre style and a 3,000-pax ballroom, while Gramedia Expo has a 2,750m²exhibition hall and a 1,200m² convention hall. Existing hotels also offer ballrooms and meeting facilities of various capacities.

“The growth of business travel to East Java last year was more than seven per cent, higher than the national average of 6.4 per cent,” said Surabaya Plaza Hotel, general manager, Yusak Anshori.

“The development of infrastructure such as the opening of Blimbingsari Airport in Banyuwangi regency (near Surabaya), has made the city more interesting for business and leisure travellers. Some airlines (like Garuda Indonesia and AirAsia) have also made Juanda International Airport their hub to eastern Indonesia. Improved access has stimulated businesses too.”

LIFESTYLE ASPECTS Plaza Tunjungan, Ciputra World Surabaya and Supermall Surabaya are some of the major shopping and entertainment centres in the city. Diverse culinary experiences are readily available, from local establishments offering East Java specialties like rawon (black beef soup), deep-fried duck and rujak cingur (vegetable, fruit and buffalo lip salad) to international cuisines at upmarket venues such as Platinum Grill, Casa Fontana and House of Sampurna.

MEDAN

WHY IT’S BOOMING The capital of North Sumatra province, Medan is the biggest city on Sumatra and the fourth largest in Indonesia. The city is an economic and commercial hub of the region, driven by trade, hotel and restaurant businesses as well as manufacturing industries.

ACCESS/ACCOMMODATION Medan is connected with the rest of Sumatra island by road, and with other parts of Indonesia by air. As a hub of western Indonesia, the city is connected with major cities like Jakarta, Surabaya and Denpasar as well as secondary cities in Sumatra such as Padang, Banda Aceh and Pekanbaru. Domestic airlines and regional carriers like SilkAir, Valuair and AirAsia connect the city to Singapore and Malaysia. More international airlines are expected to fly into Medan when the Kuala Namu International Airport opens later this year.

Santika Premiere Dyandra Hotel & Convention Medan general manager, Cita Dewantoro, said: “The opening of Kuala Namu International Airport will change the destination in a huge way. We can expect more airlines to come in, bringing both business and leisure markets to the destination.”

The city has 48 hotels, varying from major brands such as JW Marriott, Grand Aston, Grand Swiss-Belhotel, Santika Premiere and Aryaduta to individual properties like Grand Antares, Danau Toba International and Garuda Plaza. Room rates range from Rp250,000 to Rp750,000.

Part of the Santika Premiere Dyandra Hotel & Convention, Medan International Convention Center is the city’s largest convention facility with conference capacity for more than 3,000 pax and nine breakout rooms seating 40-90 pax.

LIFESTYLE ASPECTS Grand Palladium, Sun Plaza and Medan Mall are the major shopping complexes. The city is a great culinary destination with local delicacies such as Medankway teow (noodles), soto ayam (chicken soup) and durian dishes. Merdeka Walk, a popular local hangout in the heart of town, is great for sampling Medanese cusine.

[ MYANMAR ]
By Rahul Khanna

YANGON

WHY IT’S BOOMING Myanmar’s main economic, tourism and transport hub, Yangon has seen a surge in arrivals since many foreign governments lifted travel sanctions on Myanmar.

According to the Ministry of Hotels & Tourism, Yangon received 554,531 foreign visitors in 2012, up 54.3 per cent from 2011, with FITs making up the single largest group with 232,715 visitors, followed by package tourists (126,036) and business travellers (114,456). The bulk of business travellers come from Asian countries like Japan, South Korea, China, Singapore, Thailand and Vietnam, and also Scandinavian countries like Denmark, Norway and Sweden.

ACCESS/ACCOMMODATION Yangon saw a tremendous boost to its air access last year, and it is now linked by 22 international airlines such as AirAsia, Dragonair and Singapore Airlines. According to the Centre for Aviation, Myanmar’s international aviation market currently has 81,000 weekly seats, from just 49,000 as recently as April 2012.

Myanmar’s Department of Civil Aviation will redevelop Yangon International Airport to double its annual handling capacity from 2.7 million to 5.5 million passengers and will soon resume construction of the Hanthawaddy International Airport in June 2013 – due to complete by December 2016 – to accommodate 10 million passengers a year.

Yangon Central Railway Station, the largest in Myanmar, offers access to the 5,000km rail network across the country. Japan is currently financing the extension of the railway projects, which are expected to be up by 2015. Visitors mainly use the Yangon-Mandalay route, on which Myanmar Railways offers daily and nightly reserved carriages on express trains.

Yangon has a 4,456km road network, most of which is in good condition. Taxis are the easiest way for visitors to get around Yangon but it is customary to negotiate fares prior to starting the trip.

To ease the city’s shortage of rooms, the Myanmar Investment Commission has put historic state-owned buildings in central Yangon up for tender for conversion into hotels.

The 240-key Shangri-La Residence is expected to launch in mid-2013, the 366-room Novotel Yangon Max will debut by this year-end and the 300-room Hilton Yangon will open in 2014. Meanwhile, Best Western International is looking at franchising and ownership options in Yangon, Mandalay and other key destinations in Myanmar.

Vietnam’s Hoang Anh Gia Lai Group is investing in a US$300 million mixed-use development comprising a 27-storey commercial centre and a 414-room hotel.

Established properties like Traders Hotel, Parkroyal and Chatrium Hotel are equipped with MICE facilities.

LIFESTYLE ASPECTS Yangon is thriving with new bars, restaurants and shopping malls, as well as an emerging art scene. Shwedagon Pagoda, Sule Pagoda and the British colonial buildings are the city’s landmarks; many tourists also enjoy the local experiences aboard the circular railway, which links downtown with the outlying suburbs.

MANDALAY

WHY IT’S BOOMING The second largest city and the last royal capital of Myanmar, Mandalay is located 700km north of Yangon with plenty of historic and religious sites. Despite Nay Pyi Taw’s recent rise, Mandalay remains the main economic, educational and health centre in Upper Myanmar, with Chinese businessmen forming a significant portion of the visitors to Mandalay.

ACCESS/ACCOMMODATION Mandalay had only one international route to Kunming by China Eastern Airlines previously, but AirAsia and THAI Smile have joined the fray with flights from Bangkok, while Bangkok Airways will start flying in September.

Myanmar Airways International (MAI) commenced flights to India’s Gaya in November 2012 and Bangkok from March 31. Using Mandalay International Airport as its base, MAI has plans to expand its route network to Singapore, Malaysia and Hong Kong.

Mandalay International Airport, with an annual handling capacity of three million passengers, is expected to undergo an upgrade soon to become a logistics centre.

Mandalay’s strategic location in Central Myanmar also makes it a vital hub for transporting people and goods, and it is connected to the rest of the country, China and India by road and rail networks.

Mandalay Central Railway Station is the terminus of Myanmar Railways’ main line from Yangon and the starting point of branch lines to Pyin Oo Lwin, Lashio, Monywa, Pakoku, Kaly, Gangkaw as well as the northern cities.

In terms of hotels, the 280-room Novotel Mandalay Mingalar is opening this year-end. Mandalay Hill Resort can accommodate up to 200 pax in its meeting rooms and up to 600 pax for themed events, while Sedona Hotel has MICE facilities for up to 260 pax.

LIFESTYLE ASPECTS Mandalay is home to many holy temples such as Maha Myat Muni Paya and Kuthodaw Paya. In the heart of the city, the walled Royal Palace offers a glimpse of the city’s former splendour during the last Burmese monarchy.

India speeds up hotel approvals and classifications

By Rohit Kaul

April 5, 2013

INDIA’S Ministry of Tourism officially launched a web-based system for hotel approval and classification on April 3, allowing hoteliers to log in to track their application statuses real-time.

“With this system in place, an application has to be examined within 15 working days of being received. Thereafter, a hotel inspection will be scheduled within the next 15 working days. The system will ensure timely delivery of approvals and accountability from the concerned officials,” said tourism minister K Chiranjeevi.

He added: “The recommendations of the Hotel and Restaurant Approval & Classification Committee will be communicated on the spot (during the hotel inspection) to the applicant and these recommendations will also be put on the website. A final decision should be established within 10 days of the inspection.”

Chiranjeevi also shared that the ministry is planning to receive applications electronically in the near future.

The Indian hospitality sector has lauded the move, saying that it would bring transparency to the hotel approval and classification system, while ensuring timely approvals.

“In the past, hotels were not able to apply for various other approvals they required to begin operations, due to the delay in classification and approval procedures. With the new online system, hotels will be relieved,” said Vivek Nair, president, Federation of Hotel & Restaurant Associations of India.

However, some operators still see room for improvement.

“It is a great initiative, and this will ensure that the industry grows by leaps and bounds…However, the ministry should also include camp sites, eco lodges and river cruises,” said Tejbir Singh Anand, managing director, Holiday Moods.

East Europe market pours US$1.2 billion into Phuket

By TTG Asia

April 5, 2013

THAILAND has benefited the most from a deluge of tourists from East Europe into South-east Asia, with Phuket receiving over 650,000 Eastern European visitors spending US$1.2 billion last year.

The country welcomed 1.6 million visitors from East Europe, led by Russia, contributing 82 per cent of the total figure, according to market research by C9 Hotelworks.

Figures from last year are a far cry from 2005’s 175,000 visitors to Thailand, thanks to a visa exemption implemented in 2007 and sustained economic growth in East Europe. Phuket has also been aided by rising airlift. Charter flights catered to 56 per cent of total passengers last year, according to the report.

Bill Barnett, managing director, C9 Hotelworks, said: “Phuket has seen this business (from East Europe) build up over the past four years with a 42 per cent compound annual growth rate. This rapid acceleration has turned the tables upside down on the once dominant Western European market.”

However, C9 Hotelworks’ research noted that the Eastern European market was highly seasonal, flocking to Thailand only between October and April.

Barnett also pointed out that while Phuket’s airlift impact has shown “little signs of slowing down in 2013”, Bali, on the other hand, is seeing a slowdown in its Eastern European market due to no direct scheduled service from Russia.

Last year, Russia’s outbound market into South-east Asia leapt by over 1.8 million arrivals. A whopping 71 per cent visited Thailand, followed by Vietnam with nine per cent, Indonesia and Cambodia with five per cent each, and Singapore with four per cent.

Asia’s first sports hotel guns for pro athletes and FITs

By Greg Lowe

April 5, 2013

POSITIONED as Asia’s first sports hotel, Thanyapura Sports Hotel in Phuket officially opened in late March and is taking aim at professional athletes and active leisure tourists.

The 77-room property is part of the 23-hectare Thanyapura Sports & Leisure Club compound, which includes eight sports academies and facilities including a full-size International Rugby Board-standard pitch, FIFA-standard football pitch, 50m Olympic-standard swimming pool, 500m cushioned athletics track, six tennis courts and a 900m² fitness centre.

Thanyapura has customised its sales and marketing activities in order to tap the professional/specialist segment.

Said Robert Hauck, president, Thanyapura: “We’re not operating in a typical market so going through regular channels, such as travel consultants, isn’t really going to work on the whole.”

Instead, he shared that Thanyapura would work with strategic partners with strong contacts, such as a European swimming agent who is also the coach for the Dutch national team.

He said: “For rugby, we’re working with an All Blacks (team member) who will retire next season and move to Phuket. We’re also working with the Women’s Tennis Association.”

Sports clients now make up 80 per cent of the hotel’s guests, though the property is targeting a mix of 40 per cent FITs and 60 per cent sports travellers in the medium term.

Asia – namely Hong Kong, Singapore, China, Malaysia, Japan and India – is the largest source market contributing 30 per cent of guests, followed by Europe (UK, Germany, Switzerland and France) at 20 per cent, and Australia and New Zealand, US and Canada, and Thailand each accounting for 15 per cent.

Thanyapura is in preliminary discussions with companies from India, Madagascar and South Africa to develop sports hotel-like products for those markets, said Hauck.

IHG establishes XML connection with Ctrip

By TTG Asia

April 5, 2013

INTERCONTINENTAL Hotels Group (IHG) has begun adding its entire global portfolio of 4,600 properties to China’s largest OTA, Ctrip.com.

Through DerbySoft technology, the XML-based connection between IHG and Ctrip went live this week, directly linking IHG’s central reservations system to Ctrip and allowing Ctrip users to view real time availability and receive instant booking confirmation.

IHG’s entire portfolio will become available for booking by Chinese travellers over the next several weeks as more properties are rolled out on the Chinese OTA, which on its own offers users over 250,000 hotels worldwide and serves 60 million registered users.

Currently, IHG has 160 properties operating and 30 per cent of its global pipeline in China.

According to PhocusWright, China’s online travel bookings are expected to hit close to US$14.4 billion this year.

Hilton offers China tour packages

By TTG Asia

April 5, 2013

AS PART of celebrations for Hilton Worldwide’s 25^th anniversary in China, the hotel company has raised the curtains on a new tour package, Flavors of China, offering travellers the option of pairing their stays with local attraction visits.

Available at 34 Hilton HHonors hotels across 20 cities in Greater China, guests can visit major tourist sites such as the Forbidden City, the Bund, Victoria Harbour, the Terracotta Warriors, Nanjing relics, the Jialing valleys and Zhouzhuang canals.

The package comes with one night’s accommodation, breakfast for two and a pair of tickets to a local attraction.

Guests must make their reservations between April 3 and December 31 for stays until January 1, 2014 at participating hotels.

Hilton has also rolled out an ambitious growth strategy for China, aiming to expand its portfolio from 32 properties with over 12,000 rooms to more than 150 properties with over 55,000 rooms.

Furthermore, 2013 will see the introduction of Hilton’s fifth brand in China – the midscale Hilton Garden Inn.

“Hilton Worldwide is focused on achieving sustainable growth in China. To accomplish this, we have developed a clear game plan to drive rapid, yet sustainable expansion. As China is Hilton Worldwide’s largest market outside the US, we are set to launch our fifth brand in China with the introduction of the Hilton Garden Inn and are on course to have a presence in 75 cities by 2015,” said Bruce McKenzie, senior vice president for operations in Greater China and Mongolia, Hilton Worldwide.

– TTG Asia editor Gracia Chiang talks about hotels expanding into tours on her blog.

Amadeus integrates UNICEF donation option

By TTG Asia

April 5, 2013

TRAVEL providers hooked up to Amadeus systems can now allow customers to make a micro donation to the United Nations Children’s Fund (UNICEF) when paying for travel online.

During the first stage of the programme, industry players such as airlines and OTAs can integrate a ‘check box’ on their online booking pages. Customers who choose to make a donation will receive a confirmation email.

The donation option will be a neutral standalone system, cross-channel merchant engine for participating travel brands. It will consist of a donation interface to collect donation data that is linked to an Amadeus payment gateway, which will process donations separately from travel purchases.

Amadeus senior vice president, general counsel and corporate secretary, Tomás López Fernebrand, said the joint initiative represents “an innovative model to drive donations”.

Linda Scott, DP World Chair for Entrepreneurship and Innovation at the Saïd Business School, University of Oxford, added: “Addressing some of the major development and social challenges in today’s world requires increasing collaboration between the private and not-for-profit sector. Deploying some of the processes, technology and expertise present in the private sector can make a significant difference to organisations that rely on funding and donations.”

Panorama Tours Malaysia, Kuala Lumpur

By S Puvaneswary

April 4, 2013

TTG Asia Online finds easy accessibility and excellent service at Panorama Tours’ new retail outlet in Kuala Lumpur

PRESENCE Panorama Tours Malaysia opened its retail outlet in September 2012 on Jalan Maharajalela in Kuala Lumpur. The location is terrific as the outlet is close to the shopping and commercial areas of Jalan Bukit Bintang and Jalan Sultan Ismail, but far enough to avoid the huge traffic jams both areas are known for.

The shop’s orange exterior stands out from the crowd and can be easily spotted by monorail passengers. Huge banners on the glass entrance highlight current promotions and attract walk-in customers.

APPEARANCE The staff looked smart in their uniforms. When tested, I found them to be proficient in English and Malay, and I heard one staff member speaking to a customer in Mandarin.

The service staff entertaining me came across as friendly and well-informed, putting me right at ease with her friendliness and product knowledge. She provided me with invaluable inside information on Bandung and passed me her business card at the end of the conversation so I could contact her if I wanted to make a booking.

EASE I found ample parking behind the retail outlet managed by Kuala Lumpur City Council. The shop was also an easy, five-minute walk from the Hang Tuah monorail station.

Once I entered, I promptly made a cup of tea for myself and had it in the waiting area. The chair was very comfortable.

SUGGESTIONS There needs to be more travel brochures and a stand with promotional brochures in the lounge area would have added a nice touch.