Asia’s economic stars – Philippines, Indonesia, Myanmar

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.

Imperial Hotel picks chairman and president

By TTG Asia

April 4, 2013

IMPERIAL Hotel has appointed Tetsuya Kobayashi as chairman and Hideya Sadayasu as president, effective April 1.

Kobayashi first joined Imperial in 1969 and rose through the ranks of the hotel. He was last appointed president of Imperial Hotel and general manager of the Imperial Hotel Tokyo in 2004.

Likewise, Sadayasu rose through the ranks of Imperial Hotel, having joined the company in 1984. He brings over 29 years of experience to his new role as president, having received multi-operational training in numerous departments of the hotel.

He was made general manager of the Imperial Hotel Tokyo in 2009, a role he will retain concurrently with his new appointment as president of Imperial Hotel.

Marina Bay Sands launches green meeting options

By TTG Asia

April 4, 2013

MARINA Bay Sands has rolled out its Sands ECO360° Meetings Programme to provide greener options for meeting planners and clients.

The programme focuses on three main areas: green meeting options, high-performance facilities and standard sustainable practices. Services offered with this package include a Green Meetings Concierge who is assigned to work with clients throughout the process, helping to align the property’s various green offerings with clients’ sustainability goals. The concierge will present a Sands ECO360° Event Impact Statement to the client post-event, detailing information about the event’s impact on the environment.

Marina Bay Sands is also offering event organisers up to 40 per cent in savings when they book a meeting package from US$85++ per pax, as well as exclusive room rates from US$229++ in 2013 and US$245++ in 2014 on over 100 selected dates.

The meeting package includes use of a meeting venue for a full day, coffee breaks with three snack items in the morning and afternoon, an organised working lunch, use of one rostrum, microphone, projector and screen, and one complimentary Internet line for the organiser, among others.

Visit www.marinabaysands.com for more details.