MALAYSIA’s tour operators have welcomed AirAsia X’s new Kuala Lumpur-Jeddah service (TTG Asia e-Daily, January 18, 2013), which will ease the sector’s year-round seat crunch especially during the Middle East peak season between August 10 and September 10 this year.

Weekly seat capacity on the route will soar to 4,173 with the addition of 1,131 seats from February 16, when the thrice-weekly flight launches. Malaysia Airlines’ (MAS) and Saudia also ply the route five and six times weekly, respectively.

Andy Muniandy, director of sales and business development, Asian Overland Services Tours & Travel in Kuala Lumpur, said: “The new flights will bring more tourists to Malaysia as many seats on MAS are taken up by pilgrims returning from Mecca (accessed primarily via Jeddah).

“AirAsia X’s competitive airfares also helps as Saudi Arabians usually travel with big families of six or more people.”

Mani Ponniah, manager of Explore the Wonders Wholesale Travel, remarked that AirAsia’s new service provides travellers with more price options and would grow Malaysia’s share of tourists from Saudi Arabia, in the face of aggressive competition from Thailand and Singapore.

Malaysia’s arrivals from Saudi Arabia saw a 21.8 per cent year-on-year increase in the first nine months of 2012 – from 66,131 to 80,547.

While it is common for travellers to take a Gulf-based airline in Europe and transit in the Middle East to Kuala Lumpur, some European travel consultants are not biting.

Valentin Ciofiac, manager, outgoing & ticketing department at Atlantic Tour Bucharest, said: “Airline delays are a risk when taking a connecting flight on AirAsia X to Kuala Lumpur as the carrier does not have any airline agreements. Travellers prefer to purchase a single ticket.”

Meerbusch-based Agentur fur Reisen Tourismus und Exklusivitat project assistant, Melanie Potthast, said the service would appeal to Germany’s budget travellers who wished to stop over in Saudi Arabia.

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PILGRIMAGE tourists to Israel from Malaysia are expected to more than double this year after the latter’s government lifted the quota on numbers going to the Holy Land and allowed stays to be extended from 10 to 21 days, last October.

Israeli agent, Benny Binyamin, managing director of RTT Triple S Tours & Travel, said: “We are looking for more partners to work with in Malaysia. Good connections on national carrier El Al, which flies daily from Bangkok to Tel Aviv, will stimulate the market further. Our biggest market from South-east Asia is currently Indonesia.”

Johnson Francis, managing director of Oscar Holidays Malaysia, anticipates a five-fold increase in the number of departures this year, up from the three groups handled last year. He said: “We can now work on fixed departure dates and develop more itineraries.”

World Discovery Travel Malaysia managing director, Inbam Solomon, said seven groups had already been confirmed for scheduled tours combining Jordan and Israel for 1H2013. Last year, the company had 13 groups.

Describing the difficulties before, she said travel documents had to be submitted at least three months in advance to the authorities and sometimes approval would only be given two weeks before the departure date.

“We were tense as we also had to confirm with airlines at least three weeks prior to departure… If the quota was filled, we then had to cancel hotel bookings and there was a chance of losing our deposit.”

Ace Altair Travels Malaysia managing director, Anthony Leopold, added: “With the lifting of the quota on the number of pilgrims, we can start advertising our tours and eventually come up with new packages.

“These first few months of 2013 will be a trial period to gauge the market and see what clients are looking for.”

PRICEY hotel rates in Singapore are leaving longhaul buyers at ATF 2013 less enthused with the city-state, despite the recent emergence of several new attractions.

According to the Singapore Tourism Board, average room rates stood at S$261.30 (US$213) from January-November 2012, a year-on-year increase of 5.9 per cent. Average occupancy rate, however, saw muted growth in comparison – a rise of 0.1 per cent over the same period to achieve 87 per cent.

Several longhaul specialists at TRAVEX 2013 said clients were reducing their duration of stay in Singapore or were skipping the destination entirely in their Asia itinerary.

Andrew Morgan, Asia, Middle East & Indian Ocean product manager with UK-based THG Holidays, whose company handles a mix of leisure and corporate travellers and events, said transits in Bangkok were usually preferred “as Singapore is too expensive”.

RTT Triple S Tours & Travels Israel’s managing director, Benny Binyamin, noted that an increasing number proceeded to neighbouring destinations upon arrival at Singapore Changi Airport, with more going to Malaysia or sailing out with Star Cruises.

Wan Mahsuri Wan Ahmad Kamal, vice president – sales of Themed Attractions Malaysia, concurred. “More tourists stay in Johor and visit the theme parks, then go across to Singapore’s Marina Bay area for day trips. This trend is likely to snowball.”

According to her, Johor is gaining favour as it is now home to new attractions such as Legoland and Hello Kitty Town theme parks. The southern-most Malaysian state, less than an hour’s drive from Singapore, offers three-star hotels at about RM250 (US$82.30) a night. Similar hotels in Singapore are priced at least S$200 per night, she noted.

John Hartono, president of US-based Tedjo Express Tours, urged Singapore hoteliers to “get real” as there were many other “wonderful attractions in Asia” and “tourists will not lose much even if they give Singapore a miss”.

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REPEAT travellers from India are eschewing the usual Singapore-Malaysia-Thailand itineraries in favour of less popular regional destinations, despite limited connectivity.

K Vijay Mohan, director, Visakhapatnam-based Holiday World, told TTG Asia e-Daily: “We are sending more clients to Angkor Wat in Cambodia from our Chennai and Vizag offices. There is growing interest in the Borobudur and Prambanan temples in Indonesia, and increasing demand for Myanmar.”

Ahmedabad-based Universal Holidays director, Visana Jignesh, added: “I have clients from the pharmaceutical industry, and doctors seeking their bi-annual sabbatical in Cambodia, Myanmar, Laos, Vietnam or the Philippines. The brief to us is to find nice places to relax that are interesting and not too crowded or noisy.”

As a result, both Indian outbound travel consultants are looking for inbound companies outside of Singapore or Thailand who are able to handle their clients. Suppliers in this region are also sitting up in anticipation of larger numbers from India.

Bennett Peter, director of sales, InterContinental Hanoi Westlake, said: “In the last two years, there has been a healthy increase in Indian leisure tourists to Hanoi, Halong Bay, Danang and Ho Chi Minh City. The Vietnamese culture is very interesting for Indians, and so is the local cuisine.”

“Although we get mostly French and other West European travellers, the slow trickle of Indians visiting Laos is an interesting surprise,” said Francois Guillot, country manager of Vientiane-based tour operator, Other Ways.

The beaches of Boracay and Palawan in the Phillippines have also caught the fancy of Indians. “Despite limited connectivity and very few direct flights, Indians are asking for four to five nights on the beach and two nights in Manila. Often these are single-destination holidays, or combined with Hong Kong or Bangkok, for some shopping on the way home,” said Arjun Shroff, managing director of Manila-based Shroff Travel Care Center.

However, Thailand is still top for Indian arrivals into ASEAN, recording 1.1 million out of ASEAN’s 2.7 million in 2012.

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MALAYSIA-based tour operator, Ace Altair Travels, has extended its range of inbound tour services to include travel products catering to the disabled and the elderly.

Known as Travel Assist, the new service is designed to provide travel assistance to people with special needs, including the blind and the hearing-impaired. Services include providing trained personnel; equipment such as wheelchairs, ramps, shower chairs and portable commode; accessible transportation; and recommendations of hotels and restaurants that cater to guests with special needs. There will also be help given to identify attractions that can be easily accessed by the disabled.

The company’s managing director, Anthony Leopold, said: “We hope to make accessible tourism a reality in Malaysia.

“Like many cities in Asia and other parts of the world, Malaysia presents a great challenge for travellers with mobility impairments. In many areas of the city, it is virtually impossible to travel without an assistant.

“We make sure that the restaurants and hotels (featured) in our customised tours meet our clients’ needs. We also engage the services of a trained personnel to assist our clients.”

Since hitting the market this month, Travel Assist has won the company a confirmed booking from a wheelchair-bound client from Australia who has booked hotel and transfers for February, as well as an enquiry from Switzerland.

Leopold said: “Accessible tourism is a niche segment and so far, we may be the only agent in Malaysia providing this service. We believe there is a market for this product, which costs 30-40 per cent more than tours for the able bodied.”

Ace Altair Travels is targeting families travelling with disabled or elderly members, and is marketing Travel Assist through its existing network of overseas agents as well as through worldwide associations for the disabled that also promote accessible tourism.

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DESPITE the uncertain global economy, business from Europe into the region is still growing, buoyed by FITs and small groups.

Pham Ha, founder & CEO, Luxury Travel Vietnam, said: “Our UK market is doing well for the FIT, small group and special interest segments, posting a 30 per cent increase from 2011 to 2012.” He attributed this partly to the launch of Vietnam Airlines’ thrice-weekly flights to Hanoi and Ho Chi Minh City out of Gatwick in December 2011.

“At the same time, our German business rose 25 per cent, led by FITs, couples and multi-generational family segments.”

Carlo Fossati, MICE manager, Periplo Viaggi Italy, reported that business to the region was strong, especially for Vietnam and Myanmar, as Italians move away from hot spots Thailand and Bali.

He said: “Growth to Asia was stagnant in 2011, but picked up in 2012 with a 15 per cent rise. This year, I expect the trend to continue, probably about 10 per cent growth.”

Volume from non-traditional markets is also climbing. Kauno Piligrimas Lithuania director, Juozas Pekis, anticipates five to 10 per cent growth for 2013. “We still see growth to Thailand, and we plan to expand and combine it with Cambodia and Laos this year. Most of our market is FITs,” he said.

Heldur Allese, chairman, Fiesta Reisid Travel Agency Estonia, said there had been a 15 per cent jump in business between 2011 and 2012, though less was expected this year. “Thailand and Bali remain the top destinations for Estonians, who are generally fond of spa and wellness as well as golf tourism.”

However, Luxury Travel Vietnam’s Pham Ha has spotted some worrying signs. He observed that more European travellers booked with short lead times, from a year to six or three months ahead, with last-minute bookings occasionally. European FITs were also cutting back on their time in Vietnam from two weeks to 10 days, and now stayed in less expensive properties.

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Additional reporting by Mimi Hudoyo

THE ASEAN-China Centre (ACC) in Beijing has lined up a series of programmes for 2013 to drive Chinese outbound traffic to South-east Asia.

ACC secretary general, Ma Mingqiang, said: “Some 90 per cent of Chinese travel to Europe, the US, Japan and South Korea, but only about 11 per cent head to South-east Asia. There is obviously still a lot of growth potential for this region.”

He added: “Chinese tourists spent US$7.2 billion in Europe during the last Lunar New Year holidays. Why should Chinese tourists go all the way to Europe when the same luxury products they desire can be found in Singapore and Malaysia too?”

The centre will employ a multi-pronged approach, with an emphasis on generating awareness through the media.

It will air two documentaries on the 10 ASEAN countries via China’s TV channels and hold a tourism exhibition during the Labour Day holiday at the Wangfujing building in Beijing, which sees 310,000 visitors daily. A travel guidebook for Chinese travellers will also be produced

A trial version of an ACC website, rolled out last August to offer tourism-related news and information pertaining to South-east Asia, will go live within the next two months.

Ma hopes that Chinese traffic to South-east Asia will break the 10-million mark in 2013, having reached 8.8 million last year.

Welcoming ACC’s initiatives, Saly Phimphinith, director general, tourism marketing department, Ministry of Information, Culture and Tourism, Laos, said: “I hope (ACC’s efforts) will drive the middle- and high-end segments to Laos, as Chinese tourists to Laos are generally lower-spending compared to Europeans.”

Tourism Authority of Thailand’s deputy director Asia and South Pacific market, Sansern Ngaorungsi, added that ACC’s efforts in helping ASEAN’s private sector to better understand the behaviour of Chinese tourists had led to higher Chinese arrivals each year.

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ASEAN and dialogue partner India are forging ahead with more tourism exchange initiatives in 2013, as India aims to double the number of inbound ASEAN tourists.

Yesterday, both parties launched the ASEAN-India tourism website indiaasean.org as a platform to jointly promote destinations.

Ministers also signed a protocol to amend the MoU inked at last year’s ATF, which promised to strengthen tourism cooperation between the two parties, after security concerns regarding data sharing and the transfer of information surfaced.

The MoU was thus tweaked to allow any ASEAN member state or India to undertake appropriate steps or consultations to ensure that its rights and interests are safeguarded with respect to its national security, national and public interest or public order, protection of intellectual property rights, confidentiality and secrecy of documents, information and data.

With 2.7 million tourist arrivals from ASEAN in 2012, India is bullish about doubling the number. Anand Kumar, joint secretary, Ministry of Tourism, India, said: “We are already offering visa on arrival to seven ASEAN nations, and will soon ease visa norms further.”

He added that India had also invited ASEAN delegates to the International Buddhist Conclave in Varanasi and Bodhgaya last year and the International Tourism Mart in Guwahati this month.

Naresh Kumar, second secretary, Indian High Commission in Vientiane, said: “Ways are being considered to improve greater connectivity between India and ASEAN by air, sea and road.”

Among the other initiatives in 2012 were India’s sending of faculty members of hospitality institutes to Malaysia, Singapore and Indonesia, the hosting of tour operators, travel consultants and media on trips, and the 8,000km ASEAN-India car rally.

The 11th meeting of the ASEAN-India Tourism Working Group will be held in Myanmar in June this year.

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THE IMPLICATIONS of the Thailand-Cambodia joint visa, which finally took effect on December 27, 2012, are not as far-reaching as expected, and tour operators have turned their attention instead to the unwelcome Vietnamese visa fee hike.

India and China are among the 35 countries eligible for the new Thai-Cambodia visa, which allows tourists to spend up to 60 days each in Thailand and Cambodia without having to apply for separate visas.

However, Asian Trails’ manager for the China market, Grace Chen, said she had not seen any impact as yet. “Our MICE clients from China tend to stay only five to six days in Thailand, so it’s unlikely they will extend their trips to Cambodia.”

The higher cost of applying for the joint visa also makes it unattractive to Western travellers, most of whom already enjoy visa exemptions to Thailand, pointed out Simon Sweet, director of sales, Footsteps in Style. “What we want to see is no visa charges for Cambodia.”

Furthermore, DMCs said a bigger worry for regional itineraries was the increased visa fee for Vietnam. As of January 1, single-entry visas cost US$45 – up from US$25 – while multiple-entry visas are also priced higher than before.

This jeopardises any possible benefit from the Thai-Cambodian visa, said Asian Trails deputy managing director, Claudio Kellenberger.

A general manager of a DMC in Vietnam said that overseas agents were surprised at the fee hike after years of talk about facilitating access and ASEAN or Thailand-Cambodia-Vietnam visas. “Everyone would have welcomed the increase if it was tied to a simplification of procedures.”

Bach Tran, general manager – Vietnam, Buffalo Tours, agreed. “Thailand and Cambodia have introduced a joint visa, which makes it easier for travel, whereas Vietnam is making it harder for tourists to come,” he said, though he acknowledged that it was too early to measure the impact at this stage.

Read more in the ATF Daily