TTG Asia
Asia/Singapore Tuesday, 16th December 2025
Page 2495

Changi Airport’s passenger traffic to hit record 50 million in 2012

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SINGAPORE Changi Airport is projected to handle more than 50 million passengers in 2012, setting a new milestone in just two years after crossing the 40 million mark in 2010.

The number of passengers departing from, arriving at and transiting through Changi Airport rose 10.7 per cent in 2011 and increased by another 10.1 per cent in the first 11 months of 2012.

In November 2012 alone, 4.4 million passenger movements were registered, a 12.2 per cent year-on-year increase. From January to November 2012, Changi Airport handled 46.3 million passengers, a figure already close to the 46.5 million passenger movements achieved for the whole of 2011.

Indonesia remains Changi Airport’s top country market in terms of passenger traffic, accounting for 13.4 per cent of total traffic handled at Changi from January to November 2012. During this period some 6.2 million passenger movements to and from Indonesia were registered, representing a 8.6 per cent year-on-year growth.

Robust double-digit growth in travel between North-east Asia and South Asia contributed to the increase in passenger traffic since the start of the year. Traditionally strong markets such as South-east Asia, South-west Pacific and Europe also continued to grow healthily, accentuating Changi’s status as a major air hub in the Asia-Pacific region.

As at December 1, 2012, Changi Airport serves 109 airlines operating some 6,400 weekly scheduled flights to and from more than 230 cities in 60 countries and territories worldwide.

Tips for hotel owners to ring in a successful 2013

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tasos-kousloglou-72dpi
Tasos Kousloglou, senior vice president – strategic advisory & asset management, Jones Lang LaSalle Hotels

As the annual budgeting process ends, hotel owners are finalising the review of their properties’ business plans.

The question for owners, therefore, is how to evaluate the budget. Should they approve or reject the numbers and the plans? What should they consider when making a decision?

A meaningful budgeting process aligns the owner’s and operator’s visions for the hotel. It ensures the operator has explored potential avenues to optimise returns and asset value for the hotel and is given the right benchmark for the forthcoming year. It also ensures that the owner’s funds are spent wisely to maximise performance. Yet owners must look beyond the numbers in successfully negotiating the annual business plan.

Below is a checklist to aid in your review:

What’s the view

What is the current and future market environment? Take a thorough and realistic assessment of recent and upcoming changes in supply and demand, and the potential impact on the local hotel market.

Watch the pitch

Operators with proactive and forward sales and marketing plans outperform those that adopt a reactive approach.

The operator should present comprehensive strategies supported by activity plans and targets for each target segment and channel in rooms and other key operating departments. The plan should also include the total production targets by the operator’s channels and branded programmes.

Bottoms up

Never underestimate the power of a party: food and beverage (F&B) outlets and banquet are significant profit contributors, but they can also be a drain if not optimised.

To help you determine whether an outlet is making or losing money, take a look at the revenue and covers per meal period of every outlet in the hotel for each month of the year. Other key metrics such as revenue per available seat, profit per square metre, covers per employee and utilisation of the meeting space can also be employed.

Mouse in the cheese

Minor operating departments such as spa, telephone, laundry and parking are often overlooked as they are insignificant enough in times of plenty. Yet during periods of low occupancy, they can bring down profits. They are the mouse in the hotel’s cheese. Owners should consider whether some of the operational functions (e.g. laundry or housekeeping) or underutilised spaces (e.g. retail space, spa) should be outsourced or converted to lower expenses to generate more profit for the hotel.

Managing the pocketbook

Several key expenses that have substantial impact on the operating profits include production (F&B), credit card commissions (admin), payroll (all) and energy costs.

Owners should benchmark key expenses and employ ratios such as per occupied room, per cover and per available room to compare with historic results and with other similar hotels (where available).

Productive staff

Owners should request that operators include an estimation of labour hours and headcount (permanent or casual) for all departments for benchmarking. All outsourced or casual labour assumptions should be clearly stated. Revenue per labour hour is a useful metric in many areas, such as rooms cleaned per eight-hour shift or covers per service period for housekeeping and restaurant teams.

Given the tight labour market in most hotel markets today, statistics and strategies to improve employee productivity and retention should be presented. The operator should also clearly state in its budget the planned annual salary raise and discretionary bonus assumptions.

Beauty pays

Maintaining the property is integral to keeping its value.

An effective preventative maintenance programme will prolong the life of the asset and lengthen the cycle between refurbishments of any hotel. Accordingly, owners must seek inclusion of a preventative maintenance plan (including expenses) within the annual maintenance plan and monitor its effectiveness on monthly basis. This will also mitigate the risk for early requests for capital expenditure over and above the furniture, fixtures and equipment (FF&E) reserve.

The big spend

Renovate, refurbish, upgrade. When should they be done? To what extent? Will they really add value?

The capital budget should fit within the overall long-term strategic plan and vision for the asset. It should be prepared in light of the existing business opportunities, the long-term goals as well as the estimated life cycle of the asset. Evaluation of inclusions in the FF&E budget should not only depend on meeting the operator’s brand standards. It should also specify whether or not an investment will generate efficiencies, incremental cash flows and meet the required ROI criteria.

By Tasos Kousloglou, senior vice president – strategic advisory & asset management, Jones Lang LaSalle Hotels

Sydney pumps US$1.6 million into attracting conferences

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HAVING identified the conference segment as an important income generator, the City of Sydney is poised to invest A$1.5 million (US$1.6 million) in Business Events Sydney (BESydney).

Over the next three years, the independent, non-profit organisation will receive A$500,000 annually to promote Sydney as a global business events destination.

During the last financial year, BESydney secured 103 events for the city, which will bring in roughly A$225.6 million in economic gain and 58,000 visitors in the coming years.

Deputy premier of New South Wales (NSW), Andrew Stoner, who will be leading the development of the new Sydney International Convention, Exhibition and Entertainment Precinct, said: “Business event delegates stay, shop, eat, celebrate, explore in our city, helping to drive demand for our tourism providers.

“As part of an aligned economic development strategy, these events also stimulate trade and investment opportunities for local businesses, fuel knowledge exchange, and more broadly promote innovation and productivity.”

CEO of BESydney, Lyn Lewis-Smith, said the increased support was the final piece in the puzzle in the city’s efforts to secure more business events.

“Our future success will be underpinned by a whole-of-city approach to attracting, winning and delivering world-class conference, corporate meetings and incentive programmes,” she added.

Business travel demand steady but unlikely to grow: Advito

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DEMAND for business travel for 2013 will hold steady amid poor global economic conditions, but is unlikely to chart any significant growth, according to a recently updated forecast by Advito, BCD Travel’s independent consulting unit.

Advito has based its predictions on the assumption that economic fears regarding the eurozone and China will not come true, though these concerns themselves will tame demand.

It expects the number of flights to grow in 2013, but by less than between 2010 and 1Q2012. Within the Asia-Pacific region, the report stated that Asia-based airlines would struggle to maintain profitable and deal with “the twin competitive threats of low-cost and Middle Eastern carriers”. Traditional Asian carriers were thus unlikely to increase capacity significantly.

Meanwhile, Advito has maintained its original forecast of moderate airfare increases in the coming year as a result of stable oil prices and strong demand relative to supply. Year-on-year increases will be smaller compared to over the last three years. Asia-Pacific, specifically, will see prices of air tickets climb four to five per cent due to expectations of strong long-term growth.

On the hotels front, demand is forecast to follow an upward trajectory in Asia-Pacific. On a global basis, the report said 2013 would likely see the “fiercest negotiations between hotel companies and their corporate clients” and hotels would see rate increases higher than 2012 although “not as much as they are looking for”. Limited new supply has created more of a seller’s market, but demand is still not as robust as suppliers would like, it explained.

Hoteliers looking for an eight to nine per cent rise in negotiated rates will have to settle for five to seven per cent instead, said the report.

Amway India heads to Thailand and Canada in 2013

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AS PART of the celebrations of Amway’s 15th year in India, the company will organise two incentives in 2013 – one to Canada and another to Thailand, the latter for Amway leaders and their children who were recently in Melbourne for a leadership trip.

The first is a VIP trip scheduled for May in Toronto for 200 people, which will also host the Amway International Leadership Meeting (Mega Trip) in July 2014.

The second is for 2,000 people and will be held in Bangkok in December, and will also target Amway business owners’ children aged 15 to 25 years old.

Amway India CEO Bill Pinckney said: “The Thailand programme is to try and ensure that this second generation has a sense of our business and so that one of the things they can consider is taking over the Amway business from their parents.”

He added that a good incentive destination must be culturally friendly, while also having the right facilities, logistics and food.

Citing the example of Amway India’s recent Australian trip, he said: “To travel to Philip Island, 88 coaches were sourced, and not everyone can offer that, or the unique activities and sightseeing options such as Sovereign Hill and Philip Island. We were the first group to take over the Melbourne Cricket Ground and have a cricket match and dinner there.”

Centara unveils new M23 event space

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THE new M23 event space at Centara Grand & Bangkok Convention Centre at CentralWorld aims to draw meeting planners looking for an intimate setting – and a quirky round of golf.

Located on the 23rd floor of the hotel, the venue comprises four boardrooms offering natural light and views of the city skyline, each with a capacity of between 18 and 50 pax. Meeting rooms are equipped with the latest AV capability, built-in LCD projectors and screens, high-speed Wi-Fi Internet access, personalised stationery and drinks. Meeting rooms M1 and M2 also boast interactive screens.

The over 1,000m2 space also comes with its own reception area, open show kitchen and bar for coffee breaks, luncheons and social events, as well as a 50m long open-air patio with a putting green.

Said Chris Bailey, senior vice president for sales and marketing, Centara Hotels & Resorts: “With M23 we really have a new and exciting style of meeting space in Bangkok…(It) is perfect for smaller events, where there is a high degree of social involvement.”

Andaz Tokyo to lure business travellers with strategic location

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ANDAZ Tokyo is scheduled to open in summer 2014 as the first Andaz hotel in Japan, to be located in Toranomon, a business and embassy district in the capital’s well-known Minato ward.

The hotel marks the fourth Hyatt-branded hotel in Tokyo and the ninth within the country following an agreement signed by the affiliates of Hyatt Hotels Corporation and Mori Building last week.

The 164-room Andaz Tokyo will occupy eight floors, including the top six, of a 52-storey tower in a multi-use complex currently under construction. One of several areas in the city designated by the government as a special zone for companies’ Asian headquarters, the tower’s location boasts easy access to embassies, seaports and Haneda Airport.

“With its central location between the high rise district of Shiodome and the Akasaka and Roppongi areas where many multinational corporations are located, Toranomon is a vital hub for Tokyo’s further development as a global business centre. Andaz Tokyo will both heighten Toranomon’s allure and serve the needs of international firms here, promising the area’s fast growth as a gateway destination,” said Kazuhiko Yamamoto, vice president, urban development, Mori Building.

For MICE planners, Andaz Tokyo will feature an open-air bar and the Andaz Studio, a flexible event and meeting space with terrace seating on the highest floor.

Boasting both rooms and suites ranging from 51m2 to 220m2, amenities include a 20m indoor infinity pool, a spa, a fitness centre, an all-day dining restaurant serving organic fare, and a chapel where a show kitchen will offer made-to-order menus for weddings and gatherings.

Melbourne Planners’ Guide now available as interactive e-book

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FOR the first time, the Melbourne Convention & Visitors Bureau (MCVB) has released the Melbourne Planners’ Guide in an interactive e-book format that can be accessed on a smartphone, tablet or computer.

Launched last week, the 2012-13 edition of the Melbourne Planners’ Guide offers video content and the options to zoom in, print and share selected pages via email or social media sites, on top of the usual content. The e-book will allow planners short on time to easily navigate through its contents or thumbnail menus for an outline of the material in the guide.

“The e-book format transforms the guide from a reference document to a functional tool; an essential companion that gives on-the-go planners a wealth of knowledge at their fingertips,” said Karen Bolinger, CEO, MCVB.

The Melbourne Planners’ Guide 2012-13 e-book is available free of charge at www.mcvb.com.au/plannersguide. To receive hard copies of the guide, email MCVB.

Gallery Hotel embarks on first major renovation

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THE 12-year-old Gallery Hotel Singapore has completed the initial phase of its first major refurbishment project, with guestrooms being the key beneficiary of the makeover.

Phase one of renovations, which was completed in mid-November, involved 48 club rooms, eight junior suites and eight executive suites.

Refurbishment of the remaining guestrooms in the 222-key hotel and the creation of a club lounge are being planned.

According to Ernie Ong, general manager of Gallery Hotel, the full project will complete in early 2014.

Despite improved hardware and an average occupancy rate in the 80s, Ong said the hotel would hold rates in 2013.

Ong said: “The number of new rooms coming into Singapore next year will outpace potential tourism growth, and the European economy is still quite weak. While China is generating good outbound traffic, we cannot be sure how (business from) China will sustain in the year ahead. We have to be careful.”

The hotel draws most of its business from Asia, particularly North Asia, and “some European guests”. The corporate market generates 50-60 per cent of total bookings, and the rest are from the leisure and long-stay markets.

“That’s a pretty decent proportion, as corporates fill our rooms during week days, while travel agencies and online channels feed us leisure guests over the weekend,” said Ong, adding that the hotel’s five function rooms are usually booked out.

Acknowledging stiff competition in Singapore’s hotel landscape, Ong said the hotel’s direction “is already shifting”.

He said: “We don’t want to be just another hotel. We want to be a lifestyle hotel that inspires guests to work and rest, so we are bringing in colours to the exterior and interior and dropping the usual static LCD displays (in public spaces) in favour of animated ones.

“We are also paying more attention to the real needs of guests. For example, instead of the usual fruit basket, we present guests with a snack basket of dried fruits, nuts, etc. Fresh fruits don’t help when guests are feeling peckish. We intend to present our staying guests with unique gifts that suit their purpose of travel. That means, honeymooners will get something romantic, while a business traveller will get a different souvenir.”

PATA calls for more human capital development, rolls out academy

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HUMAN capital is one of the strongest assets of the Asian tourism industry but it must be effectively developed to meet its full potential, according to PATA CEO Martin Craigs.

Speaking during the PATA informal roundtable press briefing at its Bangkok headquarters yesterday, Craigs said: “Asia is very good at building hardware – airports, hotels – but at the moment it’s not keeping up with the demand for staff. There is a high turnover rate among Asian hotels, as people keep getting poached and move.”

Citing the Philippines as an example, he remarked that up to 90 per cent of the country’s 26,000 graduates go overseas for work each year while the hotel boom in China, especially in Shanghai, leads to perennial staff shortage.

He added: “(For Asia), the challenges are keeping up with the growth and keeping the infrastructure aligned with the demand. The problem is more about satisfying the demand and getting enough of the right people to provide the service.”

Underscoring the association’s commitment to human capital development is PATA Academy, a new initiative that will be rolled out in end-February next year.

Said Craigs: “PATA Academy is a series of high-intensity, vocationally focused courses at the PATA headquarters. These one-week courses will be targeted at seasoned, high-rising professionals across the travel chain who like to get a broader picture of what else is going on across parts of the travel business.”

Likening it to an “applied masters in visitors’ economy”, he added that the programme would comprise seminars, site visits and meetings with leading practitioners in the travel industry.

To be conducted every quarter, PATA Academy will welcome about 36 participants per session, with fees priced at US$200 per day for PATA members and twice the amount for non-members.

At the media briefing, Craigs also revealed that the 2013 PATA Annual Conference would be held in Bangkok. Thailand last hosted the event in 2006.