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.”

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.

INDONESIA outbound operators are seeing stronger traveller interest in Vietnam for the year-end holidays, following the introduction of direct flights to the destination.

Industry sources said the December 2 launch of Vietnam Airlines’ new direct service between Jakarta and Ho Chi Minh City – the first such link between the two countries – was timely in attracting Indonesia’s year-end holidaymakers.

Elok Tour managing director, Pauline Suharno, said: “Vietnam is a new destination in the ASEAN region. We have started to see demand from (travellers) who are looking for a new place to (visit).”

Golden Rama Tours and Travel general manager, Edhi Sutadharma, said: “The launch of Vietnam Airlines’ direct flight has enticed traffic for the year-end holidays, especially when the airline is offering promotional rates (to celebrate the launch).”

Vietnam Airline is currently offering a US$300 return ticket for the three-hour flight between the two cities.

“This is the first time we have created packages to Vietnam and have seen immediate response from travellers,” said Sutadharma.

The service will first be operated four times a week on Tuesday, Wednesday, Friday and Sunday, with a possibility of increased frequency when demand grows, according to Vietnam Airlines general manager Indonesia, Nghiem Van Khanh.

EMIRATES has added Phuket to its international network with the launch of non-stop, daily services to the Thai destination this week.

Operated by a three-class Airbus A340-300 aircraft, EK378 departs Dubai at 12.45 and arrives at Phuket International Airport at 21.55h. The return flight, EK379, departs at 00.35 the following day and arrives in Dubai International Airport at 04.35.

“The launch of (this) service between Phuket and Dubai perfectly coincides with the upcoming festive season as Phuket has been a favourite destination for many holidaymakers,” said Salem Obaidalla, Emirates’ senior vice president, commercial operations, Far East & Australasia.

He added: “Emirates has a long standing affiliation with Thailand and the country is an important market for (the airline). This new service will support Thailand’s tourism sector by enhancing inbound arrivals from the UAE, the larger Middle East region as well as traditional markets like Europe.”

Manit Boonchim, executive director of Europe Africa and Middle East Region, Tourism Authority of Thailand (TAT), said: “Phuket in the past few years has experienced a healthy reputation and growth. Phuket is the gateway to the southern part of Thailand, making it a major hub for people to expand their travels to (destinations such as) Khao Lak, Phang Nga, Koh Samui, Trat, as well as Krabi, Koh Lipe, and many more.

“With TAT’s current strategy in promoting Phuket and beyond, we are sure that Emirates will play an important role in this plan.”

AIRASIA X will increase its services from Kuala Lumpur to Melbourne, Taipei and Chengdu from May 1, 2013.

With this change, daily flights to Melbourne will grow to nine times a week. From July, the frequency will rise to 12 a week.

Daily flights to Taipei will also be ramped up to 10 a week, and double daily services will commence from July 1.

Flights to Chengdu will increase from its current five a week to six. By July 1, the link will be made a daily service.

AirAsia X CEO, Azran Osman-Rani, said, “Our increase in flight frequency is testament to our commitment in offering guests a more flexible flight schedule to suit (their) travel needs and preferences. AirAsia X is responding to the encouraging demand for Melbourne, Chengdu and Taipei, which has recorded a strong average passenger load in excess of 80 per cent in 2012.”

“AirAsia X remains focused in strengthening the network of its core markets in Australia, Japan, (South) Korea, China and Taiwan, and the increase in flight frequencies would further solidify our position in our key markets.”

WITH global economic woes casting a pall over the travel industry, Asian travellers would likely adjust travel plans than cancel them altogether, said Daisy Sam, general manager of research firm Cimigo China in a phone interview with TTG Asia e-Daily.

“Based on research figures, there will be more people travelling. But there will be a change in travel patterns. Travellers are likely to be more price conscious, take shorter trips, head to different destinations or even travel in smaller party sizes,” she said.

Cimigo released a report last month on the profile of the Asian traveller in 2011, in which Hong Kong emerged as the top destination. When asked which destination was likely to snatch the crown in 2013, Sam said: “If I had to pick one, it would be China. The sheer size of the country means China has a variety of attractions, whether for the leisure or business traveller.”

Furthermore, shifting travel patterns meant China was in good standing as a relatively inexpensive destination, Sam said, noting that the government has been steadily improving the country’s infrastructure, and the destination is easily accessible for Asian travellers by railway or ferry.

Sophisticated, repeat travellers are also likely to take to newer destinations such as Myanmar and Vietnam, having covered the big cities and popular destinations in Asia.

Sam said that while potential outbound from China to these newer destinations was huge, visa approval remained a stumbling block. However, exotic locations were unlikely to beat traditional destinations given the massive pool of first-time travellers in Asia looking for a “regular” tour.

Despite increased price sensitivity, Asian travellers are unlikely to swap full-service airlines for low-cost carriers. Sam said there would always be passengers who want to travel in comfort.

She cautioned: “It is more important for airlines to promote themselves not simply by offering discounts but also by differentiating themselves clearly to the target market that is willing to pay more.”

The outlook was gloomier for travel agencies, whom Sam predicted would gradually diminish in importance especially in areas with high rental costs. Compared to airlines, which have worked hard to improve reach through their websites and attract customers to book directly, offline travel agencies were constrained by their physical locations.

But Sam said travel agencies still had a place in Hong Kong and China, “where people still look for convenience.”

“There is definitely a segment that prefers offline agencies – the older, less Internet-savvy. Offline travel agencies must understand what consumers are looking for, which is advice, good service, promotions and information on new products such as cruises.”