Asia to get 11 more W Hotels

March 25, 2013

W HOTELS Worldwide has unveiled plans to roll out another 11 W Hotels in Asia by 2018, beginning with W Guangzhou Hotel & Residences, set to launch on March 31.

Over the next five years, W Hotels will launch 11 more hotels in China, India, Indonesia and Malaysia, operating close to 20 W Hotels in nine Asian countries in total.

The brand will debut in China with W Guangzhou Hotel & Residences. Located in Pearl River New Town, the property offers 317 guestrooms and suites, seven restaurants and bars, a spa and fitness centre.

Next year, W Hotels will open W Beijing – Chang’an (340 guestrooms and suites), W Changsha (330 rooms) and W Shanghai – The Bund (600 rooms).

India will get its first Ws in 2015 with the arrival of W Retreat & Spa Goa (105 rooms) and W Mumbai (325 guestrooms and suites).

The following year, W Noida – Delhi NCR (105 rooms) will open its doors, as will W Jakarta (300 rooms) and W Kuala Lumpur (159 rooms).

The openings of W Delhi NCR – Gurgaon WTC (225 rooms) and W Suzhou (366 guestrooms and 71 serviced apartments) in 2017 round up W Hotels’ Asia plans.

W Hotels first entered Asia in 2004 and currently has presence in seven countries, including Thailand, Singapore, Indonesia, Taiwan, the Maldives and Hong Kong.

Travel advisories trouble Indian tour operators

By Rohit Kaul

March 22, 2013

TOUR operators in India are concerned about the spate of travel advisories issued recently by major inbound travel markets against the destination in the wake of high-profile rape cases in the country.

So far the UK, US, Germany, Australia and Switzerland have urged female travellers to exercise caution when travelling in India.

Amaresh Tiwari, managing director, AT Seasons & Vacations Travel, said: “We have already seen five to six cancellations from individual women travellers. Since the recent incident in Madhya Pradesh (where a Swiss tourist was gang-raped), I have been flooded with emails from clients who are asking whether it is safe to travel to India.

“Even our overseas associate consultants have started expressing apprehension over female safety in India. Markets like Germany, France, the UK and US have been affected.”

Tour operators are also worried that India’s inbound tourism will be hurt in the long run.

“Presently, there is a lot of negative publicity, especially in the international media. Cancellations are bound to happen, considering that a large number of FITs may now be worried about travelling alone in India this summer,” said Vijay Thakur, managing director, India Vision Tours & Travels.

However, some tour operators remain optimistic. “Such incidents are unfortunate, but the media is exaggerating the issue. We have experienced no cancellations and don’t expect such incidents leading to a decrease in the number of foreign tourist arrivals,” said Lally Mathews, managing director, Vacations Travels & Tours.

Similarly, Lajpat Rai, managing director, Lotus Trans Travel, said that the Japanese market remained positive and he had not received any cancellations.

Meanwhile, Tiwari encouraged travellers to book tours with recognised tour operators, which would “ensure their well-being”.

Malaysians ride to Europe on weak Euro

By S Puvaneswary

March 22, 2013

ESCORTED tours to Europe are seeing healthy growth in demand from the Malaysian market, partly due to the depreciation of the euro and US dollar against the ringgit.

Insight Vacations reported a 25 per cent year-on-year spike in bookings for Europe for the January to March 2013 period.

Insight Vacations regional director, Asia, Sheryl Lim, said: “When the euro and US dollar were strong against the ringgit, an eight- to 10-day tour to Europe would cost about RM10,000 (US$3,207). Now, one can take a 12- to 14-day tour at the same cost.”

According to Lim, popular destinations are Italy, Britain, and a combination of Spain and Portugal. Mature Malaysian travellers are now eyeing Eastern Europe destinations such Croatia and Poland.

Destinations such as the Balkans, which were less popular in the past, have also seen a five to eight per cent year-on-year increase in the first quarter of 2013, and this upward trend is expected to continue through to 2014.

Likewise, Sedunia Travel’s marketing & community manager, e-commerce division, Hannah Pearson, said her company’s upcoming Cosmos multi-destination holidays for the summer season to eastern European cities of Prague, Vienna and Budapest had been well received by the Malaysian public. Also hot were eight-day itineraries combining Belgium, Germany, Switzerland, Italy and France.

Yoma moves to lay hands on Myanmar luxury acquisitions

By Rahul Khanna

March 22, 2013

SINGAPORE-based Yoma Strategic Holdings has rolled out plans to buy travel companies and land in Myanmar under its newly-established joint venture company, Chindwin Holdings.

Chindwin Holdings is the product of collaboration with First Myanmar Investment (FMI) Company, a subsidiary of Serge Pun and Associates. Yoma will hold 70 per cent of Chindwin, with the rest going to FMI.

Yoma and FMI have agreed to purchase several tourism products under Chindwin, subject to the terms of conditions set by the relevant parties.

On the acquisition list is a 75 per cent share of Shwe Lay Ta Gun Travels and Tours Company, which operates Balloons Over Bagan, a hot air balloon ride, for US$10.7 million.

Chindwin also has its eye on a 75 per cent share of an 8.6-hectare plot of land at US$3.8 million. Situated five kilometres from ancient Bagan, the plot would be ideal for the development of a luxury boutique resort, said Yoma.

At the same time, Chindwin is also looking to purchase 75 per cent of Eastern Safaris at US$100,000. Currently 100 per cent owned by Brett Melzer, Eastern Safaris offers luxurious adventure tours in Myanmar and Bhutan.

Andrew Rickards, CEO of Yoma, said: “With a booming tourism sector and a lack of quality hotel rooms or luxury tour companies, we believe there are great opportunities in this market. The acquisitions…are further steps for Yoma in this growing market.”

“The ancient temples of Bagan are one of Asia’s most remarkable, but currently least visited destinations, and will be at the forefront of Myanmar’s tourism growth,” he added.

Yoma announced last December it would be developing the former Ministry of Railways head office and the surrounding four-hectare area in downtown Yangon into a US$350-million mixed use project.

Kempinksi Hotel Chengdu makes two new appointments

By TTG Asia

March 22, 2013

KEMPINSKI Hotel Chengdu has announced two new appointments, effective March 11.

Simon Schenk is now executive assistant manager/ic rooms. The Swiss national has 15 years of experience in hospitality and speaks fluent German, French, English and Italian.

At the same time, Calvin Chee Hong Khoong was named executive assistant manager/ic F&B at the same hotel. The Malaysian national spent three years as F&B manager at Resorts World Genting in Malaysia, and has 21 years of industry experience.

Tough year ahead for Singapore serviced residences, hotels

By TTG Asia

March 22, 2013

AFTER a lacklustre 4Q2012, Singapore’s hotels and serviced residents are in for a challenging year with flat demand expected for 2013.

Research by OCBC Investment Research has forecast that Singapore’s hotel room supply will grow at 5.8 per cent per annum, faster than the demand for rooms which is predicted to grow at 5.4 per cent per annum.

The report stated that average length of stay per visitor was declining partially in reaction to the strong Singapore dollar, while the industry is facing potential oversupply in the medium term.

Such a situation could hit Singapore’s REITs such as Far East Hospitality and Ascott Residence Trust, surmised local daily The Straits Times. Demand for serviced residences was likely to remain flat and room rates plateau or drop, according to OCBC’s report.

The report expected the industry to continue struggling to sustain margins with a tight labour market and higher operating costs and the lack of near term catalysts to prop up RevPAR.

However, the climate is better at the regional level. TripAdvisor’s TripBarometer has ranked Asian accommodations third in being optimistic about their business prospects in 2013, while 42 per cent of providers indicated they plan to increase room rates (TTG Asia e-Daily, March 20, 2013).

Dorsett to make Singapore debut in Outram Park

By TTG Asia

March 22, 2013

DORSETT International is set to open a 10-storey, midscale hotel in Singapore on March 28.

Located above the Outram Park MRT interchange and close to the heritage rich Chinatown area, the 285-room Dorsett Singapore is a stone’s throw from the Orchard Road shopping belt.

Guestrooms and loft rooms are equipped with free wired and wireless high-speed Internet access, cable TV access, a posturepedic mattress and an iPhone/iPad docking.

Other amenities include a roof garden, a gym, an outdoor pool and Jacuzzi.

To celebrate its soft launch, Dorsett Singapore is offering a room package from US$159 per night at the Dorsett Room, valid from March 28 to June 30.

Garuda boosts Australia connection with new route

By TTG Asia

March 22, 2013

INDONESIA’S national airline will offer increased access between Bali and Australia through its new route to Brisbane and greater frequencies for services to Melbourne.

Garuda Indonesia will up the number of flights linking Denpasar and Melbourne on April 1. Increasing existing flights by two a week, the carrier will run daily services between the two destinations. GA719 will depart Melbourne at 09.50 and arrive in Denpasar 13.00 local time. Flights are already open for booking.

Beginning August 1, Garuda will operate daily flights between Brisbane and Denpasar on a Boeing 737-800 Next Generation with 162 seats. Travellers can also transfer to connecting flights to reach Jakarta from Bali.

Last year, the airline revealed plans to launch flights from Jakarta to Brisbane, London and Auckland (TTG Asia e-Daily, November 12, 2012).

Garuda had also begun daily flights between Perth and Jakarta and sealed a codeshare agreement with Etihad Airways (TTG Asia e-Daily, October 22, 2012).

Game on in Macau

By Prudence Lui

March 22, 2013

Not content with its state of play, Macau’s new tourism chief tells Prudence Lui the destination wants to diversify, including breaking out of its reliance on the casinos and Chinese market

Maria Helena de Senna Fernandes
Macau Government Tourist Office (MGTO) director

You’ve been MGTO’s deputy director since 1998. How has tourism in Macau changed over the years?
Macau had less than 10,000 rooms before. Now, we have about 30,000, and the industry has grown. We’ve got a lot more travel (consultants), hotels and different parties who feel they are part of Macau’s tourism as we begin to position it as a leisure destination. People are more aware about tourism in the city and how it affects them.

The most unexpected turning point was around 2002/2003, when we saw the liberalisation of the gaming industry in Macau followed by the opening of the China market through the Individual Visit Scheme (IVS). Another vital moment was when we achieved UNESCO World Heritage status in 2005. The international branding changed the old perception of Macau as a gaming centre.

About 25 million Chinese visitors visited Macau last year, while this Lunar New Year there were even scuffles at border crossings. What kind of impact is this having on other markets?
By Chinese, we mean China, Hong Kong and Taiwan. Mainland visitors account for 17 out of 28 million arrivals last year. We are pretty conscious about the need to diversify, which also explains why we recently appointed a marketing representative in Russia. In 2012, there were 26,844 Russian visitors (a rise of 62.6 per cent), and it’s a good market to draw as they tend to spend. In the long term, we’ll work on new markets and promote joint itineraries with neighbouring cities like Hong Kong. To be honest, Macau is small even though reclamation work is ongoing. If we want tourists to stay longer, we need to work with the region to attract people.

Regarding the chaos over Lunar New Year, the police are looking into it and we hope they implement some measures to ease traffic. Dissemination of information will also be improved, so people may obtain updated information earlier such as where to eat, retail hours and room rates if they plan to come in during crowded public holidays.

What other new markets are you exploring?
India has been on our list for a few years, but we may probably look at the Middle East in the future due to the spending potential of its travellers. To tap this market, we would not just need to promote but build international awareness among travel consultants and hoteliers. We still need to observe this market, so there will be no immediate action now. However, we’ve been exhibiting in Arabian Travel Market, and we also take advantage of the show to meet the trade and media.

But Macau’s visitor arrivals in 2012 almost hit the city’s capacity limit of 28.8 million. Is there really room for more tourists?

The estimation came from an ongoing capacity study by the Institute for Tourism Studies in 2011, commissioned by the Secretariat for Social Affairs and Culture. Capacity is a dynamic figure – a certain estimate at a certain period of time given facilities available. We have more hotels now, with an increase in supply coming over the next five years, a potential border crossing that will take a few years to come to fruition as the Light Rail System is being built and a ferry terminal to be ready by 2014. With these developments, capacity will change over time.

The Macau Policy Research Institute will also look at the existing policy of IVS and conduct future studies to see what improvements are possible. In fact, one of our tasks is to broaden traffic beyond hotspots like the Ruins of St Paul’s so that travellers explore nearby areas within walking distance. We will also look at developing community tourism in places such as Coloane, bringing people to different parts of the islands or even the northern areas. We are exploring how we can first work with the local community, put together attractions, then create itineraries and promote them to tourists. We hope to do this by the third quarter, especially for the area near the Ruins of St Paul’s.

What kind of new attractions are being planned?
Different hotels have introduced new things every now and then, and we’ve also added tourist attractions such as cultural performances that are more interactive. We also introduced a night parade over the Lunar New Year. Moreover, the Yellow House (the Macau Tourism and Cultural Activities Centre) has implemented a trial programme, where games are offered to kids while their parents search for information. In fact, (introducing new attractions) has to be a concerted effort by the private sector and government departments.

“In the long term, we’ll work on new markets and promote joint itineraries with neighbouring cities like Hong Kong.”

The city is becoming more expensive, thanks to the rise of upscale accommodation. Has the influx of close to 6,000 rooms had any impact on rates?
Most hotels in the Cotai area are high-end in terms of facilities, but you get what you pay. Occupancy rates are still high due to supply and demand. The average rate of five-star hotels went down slightly (3.3 per cent) last year, whereas mid-tier grew (three-star was up four per cent). We still have room, as average occupancy across all hotels was more than 80 per cent last year. Capacity seems to have been absorbed. I would say rooms of all categories are needed.

The city also caters for the lower-end market, with two-star hotels and guesthouses offering about 1,400 rooms. We are trying to enhance our lower-end offers, such as by launching a booking website dedicated to budget hotels last year as these premises don’t promote themselves very well. We worked with the Macau Hoteliers and Innkeepers Association on this. There are also new hotel projects in the pipeline, and we have seen investors who are interested in this segment.

What are your expectations for 2013?
I will be glad if we can maintain last year’s numbers. We are not after big numbers, and we need more tourists to stay overnight in hotels. They now tend to come and go within a day, but they can’t see Macau in depth. Another challenge is aviation. Although we don’t have influence over that, we hope to see more new destinations.

How does MGTO see the role of the travel trade?
In Macau, we work closely with travel consultants, hotels and restaurants. There are some 22 associations. We are trying to build awareness of tourism in Macau, raise the quality of the industry and create new events together. We still work with travel consultants around the world and they continue to play a vital role. We employ different methods of working with them in different markets. We create new packages with new components, as well as conduct training sessions and fam tours. In many of the main cities worldwide, travellers have matured so they tend to buy online directly. But in a lot of secondary cities in Europe, China and India, we still work with travel consultants.

As the first female director of MGTO, how would your leadership differ from your predecessor?
My predecessor (João Manuel Costa Antunes) spent over 20 years in MGTO, so I have big shoes to fill. MGTO has existed for a long time and has secured many projects. I will ensure these are taken care of. Leadership wise, I am trying to be more participative. With the change in our management team, some new department heads have come up with new ideas, so Macau will generally see new things. In 2013, we have new initiatives like an awareness campaign, which is a concerted effort with the Cultural Affairs Bureau to educate citizens about tourism, with the goal of building a ‘World Centre of Tourism and Leisure’.

This article was first published in TTG Asia, March 22 – April 4, 2013 issue, on page 6. To read more, please view our digital edition or click here to subscribe.

Battle for Asian skies

By Sim Kok Chwee

March 22, 2013

LCCs must evolve as competition streams in. Sim Kok Chwee rounds up key players in the region

Starting in 2002 with Malaysia-based AirAsia, ASEAN countries were among the first to adopt the idea of low-cost carriers (LCCs) in Asia. Naysayers were quick to point out that the unbending bilateral air services agreement, low Internet penetration rates, a lack of secondary airports and consumers’ reluctance to purchase travel products online doomed the LCC enterprise to failure.

Still, one after another LCCs sprouted, and carriers sporting names such as Tiger, Lion, Nok (‘bird’ in Thai) and Firefly began roaming the skies. And not only have LCCs thrived, these carriers have also become game changers within the travel industry, altering the behaviour of consumers, hotels and full-service competitors.

Because of the brief but attractive airfare offers by LCCs, more travellers are taking short, impulse holidays to nearby destinations more frequently. Bottomline-conscious small and medium enterprises are even booking their executives on LCCs instead of full-service carriers, slashing their budget for regional travel.

LCCs circumvented the stumbling block of low Internet penetration rates by working with convenience stores and post offices to facilitate bookings and payments via their websites, while consumers are now more willing to peruse, purchase and pay for travel products online.

However, it remains to be seen if LCCs are ready to tackle the changes on the horizon as new challengers close in.

Marking territory

AirAsia has been the most aggressive in milking the first-mover advantage, acting quickly to establish footholds in Thailand, Indonesia, the Philippines and Japan. Last week, Philippines’ AirAsia announced that it intends to invest in the Zest Air Group by acquiring 49 per cent of common stock of Zest Airways and 100 per cent of Asiawide Airways. This will allow PAA, which currently operates out of Clark, to benefit from Zest Air’s operations out of the Ninoy Aquino International Airport and its strong domestic network that feeds into international routes.

Shareholders of PAA will infuse funds to augment working capital. India is also the new apple of AirAsia’s eye, where it is currently working on a joint venture with the Tata Group to establish an LCC.

Similarly, Jetstar Airways created Jetstar Pacific in Vietnam and Jetstar Japan, with ongoing plans for a Jetstar Hong Kong in partnership with China Eastern Airlines.

Ever on the prowl, Tiger Airways set up Tiger Airways Australia and acquired stakes in Mandala Airlines of Indonesia and SEAir in the Philippines. The latter is awaiting regulatory approval for its submission to rebrand as Tiger Airways Philippines in the second quarter of 2013. The LCC is reported to be in talks with Golden Myanmar Airlines to get a foot in the door.

ASEAN now also boasts two, soon to be five, longhaul LCCs: AirAsia X, Scoot, Lion Air’s work in progress Batik Air, Cebu Pacific’s longhaul operation to the Middle East and PAL Express. Cebu Pacific will face direct competition from the latter (a rebranded AirPhil Express) when PAL Express adds a fleet of up to eight Airbus A330s with premium economy and economy class seats operating to Doha, Abu Dhabi, Dubai and Jeddah. While AirAsia X and Scoot have Australia and North Asia in the crosshairs for now, both – along with Batik Air – intend to add more longhaul destinations judging by their fleet expansion plans.

Scoot and Batik Air have ordered 20 and five Boeing 787 Dreamliners respectively, and AirAsia X has ordered 10 A350-900s. Cebu Pacific will become the first Filipino carrier to operate directly to Dubai when it launches daily flights on October 7, 2013.

Nevertheless, protectionism still rears its ugly head occasionally and, taken with other challenges, has resulted in a number of failed ventures. AirAsia took a hit in its foray into Vietnam and likewise, Tiger faced fierce resistance from local LCCs during its venture into South Korean airspace. Its plan to partner Thai Airways International for a Thai Tiger also crashed.

A clash of titans

Malindo Air, a joint venture between Lion Air and Malaysia’s National Aerospace & Defence Industries, will launch in March 2013 in a face-off between Indonesian and Malaysian aviation giants.

The new carrier will operate domestic, medium and longhaul services, beginning with flights to Sabah, Sarawak, Trichy, New Delhi, Hong Kong, Guangzhou and Shenzhen this year by deploying the six B737-900ERs it is set to receive, with business class and economy class seats.

By end-2013, Malindo expects to operate a dozen B737-900ERs and has  bullishly predicted a 100-strong fleet within a decade. It is also slated to receive  five B787 Dreamliners that were originally intended for sister carrier Batik Air.

The upstart will initially operate out of Kuala Lumpur International Airport, and shift to the new budget terminal KLIA2 when it opens in June. As the international arm of Lion Air, both airlines are expected to cross-feed into each other’s network.

Malindo is expected to pose a threat to the AirAsia group, which has hitherto faced little competition from Malaysian carriers. Sensing the possibility of a clash, AirAsia has indicated that it is open to, and even desirous of, a collaboration.

Competitors close in

Though ASEAN’s LCCs today compete strongly against their counterparts and full-service carriers, Asian competitors are pressing in on the region’s market.

Chinese and South Korean carriers such as Spring Airlines, Jin Air and T’way Airlines are dipping their toes into the ASEAN region, beginning with Bangkok. With East Asia fast becoming nesting grounds for new start-ups, the number of LCCs attempting to tap the ASEAN market can only soar.

Mihin Lanka from Sri Lanka also briefly experimented with flights to Bangkok and Singapore, though it currently only flies to Jakarta.

LCCs thrive in an environment of tight cost control and only those with the lowest cost will fly high. It is therefore unsurprising that four of them – AirAsia, Thai AirAsia, Jetstar Asia and Cebu Pacific – were among the first airlines in the world to receive new A320s with sharklet wingtips that promise greater fuel efficiency. Should ASEAN LCCs lose the momentum to innovate and embrace change, the very traits that made them rise within the region, then it’s game over.

For a closer look at our cheatsheet detailing the routes and aircraft models of South-east Asia, click on the thumbnail of the cheatsheet above

This article was first published in TTG Asia, March 22 – April 4, 2013 issue, on page 12-13. To read more, please view our digital edition or click here to subscribe.