INDONESIA’S state-owned airport authority, Angkasa Pura Airports, is dipping its toes into the hospitality industry by developing airport hotels across the country.

The company plans to own 13 hotels in 13 east Indonesian airports with a total number of 2,450 rooms by 2017.

Speaking on the sidelines of Hospitality Investment World Indonesia in Jakarta yesterday, Angkasa Pura Hotels president director, Widodo Marmer, told TTG Asia e-Daily: “We currently have two hotels under development in Surabaya and Makassar opening next month and July respectively, and will start building a third in Bali.”

Angkasa Pura Airports will own its hotels but pass on management responsibilities to its subsidiary Angkasa Pura Hotels or other hotel companies. The Surabaya, Makassar and Bali hotels will be managed by Accor under the Ibis budget and Novotel brands.

On the decision to enter the hotel fray, Marmer explained: “It all began with the government’s new regulation, which opened up airport management to the private sector. On the other hand, the airport (authority) can also manage other (businesses).”

Angkasa Pura Hotels was thus formed as a subsidiary.

With more than 200 existing airports and new ones coming up around Indonesia, Marmer believes demand for airport hotels would grow as business travel increases.

The new hotel company is aiming to go public by 2017, and is targeting expansion into the western part of Indonesia and eventually overseas airports.

Earlier in the year, Malaysia Airports Holdings also made a similar move by launching its new airport hotel brand, Sama-Sama, marking its entry into the airport accommodation sector (TTG Asia e-Daily, January 11, 2013).

BRITISH Airways (BA) continues to spread its wings across Asia, reporting “business as usual” even as its 17-year alliance with Qantas (TTG Asia e-Daily, September 6, 2012) draws to a close on March 31.

The end of the alliance led to uncertainty regarding BA’s services to Sydney, but concerns were put to rest when BA announced it was deploying its newest aircraft, Boeing 777-300ER, on its London-Singapore-Sydney route starting March 30, 2013 (TTG Asia e-Daily, October 31, 2012).

Robert Williams, newly appointed regional general manager for BA South-east Asia, said: “The message we want to put across is that things are not changing and we are still flying the way we were before.”

“Both airlines are still part of the Oneworld alliance, and will continue to have a level of relationship with one another.”

He added that Asia was one of the airline’s focus areas due to the raft of opportunities available. Six-times-weekly flights to South Korea kicked off last December, while thrice-weekly flights to Colombo and Chengdu will start on April 14 and September 22 respectively.

Chengdu is BA’s third destination in China after Beijing and Shanghai, allowing it to become the only UK carrier to offer a direct service between London’s Heathrow Airport and Chengdu Shuangliu International Airport.

CHINA plans to set up a national paid vacation system by 2020 as part of a recently announced strategic framework aimed at nurturing the country’s tourism sector.

This was stated in the National Outline for Tourism and Leisure Development (2013-2020) released last month by the General Office of the State Council.

Although a recent report on China by Cornell University’s Center for Hospitality Research found that most Chinese nationals receive between five and 15 days of paid leave a year, other sources suggest that paid leave exists only nominally and labour regulations are not enforced.

When in effect, a nationwide paid leave system could ease traffic congestion common during Golden Week holidays.

Fan Keyao, managing director, CITS Group Shanghai, welcomed the announcement. He said that unlike Chinese residents employed in foreign companies, employees working for state-owned companies do not have paid vacations.

If the government were to set up a national paid vacation system, it would be a positive step for tourism in China, he added.

Ding Jianmin, assistant general manager, Shanghai China International Travel Service, was less positive about the likely impact of the proposed system. “Long trips tend to take up 10-14 days, with some even more than 20 days. Which is why Chinese travellers always take outbound trips during long public holiday periods,” he explained.

Meanwhile, the Chinese government also announced plans to increase funding to expand tourism infrastructure, improve service standards and increase supply of tourism products, reported China Daily.

In 2012, China recorded almost three million domestic arrivals and 83 million outbound tourists.

By Hong Xu

FLIGHT Centre, which now has almost half of its network located outside of Australia, has seen a doubling of sales from its Asia/Middle East leisure travel business between July and December 2012.

Though unable to provide specific numbers for leisure travel alone, earnings from corporate and leisure travel sales was up 35 per cent to A$37 million for Singapore and 31 per cent to A$73 million for Greater China, but down 10 per cent to A$152 million in India.

While Flight Centre’s main reason for entering Asia was corporate travel, it now wants to focus on offering leisure travel service in countries such as Singapore, India, China and Hong Kong (TTG Asia e-Daily, September 7, 2012). The company now has three retail outlets in Singapore, two in Hong Kong and 13 in India, while also having sales teams in Hong Kong and China.

Flight Centre managing director, Graham Turner, said: “Our Singapore and Greater China businesses contributed record (July to December) EBIT, which helped Flight Centre comfortably surpass the profit milestone that was established last year.”

During 2011/2012, India, China, Hong Kong, Singapore and the United Arab Emirates generated more than A$500 million in sales, contributing more than A$6 million EBIT to Flight Centre’s results for the period.

Rob Flint, Asia-Middle East executive general manager, Flight Centre, added: “Almost half of our (2,450) shops and businesses globally are located outside Australia, and we’re now closing in on 100 corporate and leisure travel outlets in Asia and the Middle East…We see the region as a solid growth opportunity.”

Around 80 per cent of Flight Centre businesses globally are leisure shops.

Overall, Flight Centre reported a seven per cent year-on-year increase in global sales during July to December 2012. In Australia, sales were up nine per cent year-on-year, with cheap fares stimulating demand.

PREMIUM food festival, Thailand Splash and Spice, will be extended beyond Bangkok to the cities of Chiang Mai, Pattaya and Phuket this year, offering tourists dining and accommodation promotions for the event’s three-month duration.

Jointly organised by the Tourism Authority of Thailand and Visa International, the campaign coincides with the popular Thai New Year water festival and is scheduled to run until May 31. This is the second time it is being held.

Both locals and foreigners can avail of discounts for accommodation at 57 five-star hotels, set dining menus at top hotels, and F&B outlets at the Suvarnabhumi International Airport and shopping malls.

A collection of high-end restaurants will also be promoted as must-visits in each locale, dishing out discounts or free gifts.

BEST Western International opened its first hotel in Cebu today with the launch of the upscale Best Western Plus Lex Cebu Hotel.

The hotel features 83 guestrooms and suites, all with LED TVs with cable channels and free Wi-Fi. Other facilities include an international restaurant, an outdoor infinity pool, a fitness centre and 24-hour room service.

For MICE events, the hotel offers a 120-pax ballroom, two meeting rooms for up to 100 people and a 10-seater boardroom.

Best Western Plus Lex Cebu Hotel is the hotel chain’s sixth Best Western hotel and the second Best Western Plus in the Philippines.