CHINA is likely to overtake the US as the biggest business travel market by 2020, with expenditure and investment in infrastructure already skyrocketing and secondary cities emerging as viable business destinations.

Said Hogg Robinson Group (HRG) China director of sales & account management, Yates Fei: “Despite a slowdown in the speed of economic growth in China, business travel to the region continues to increase.”

He added: “Figures from the GBTA (Global Business Travel Association) suggest China will become the world’s biggest travel market within three years.”

According to the World Travel and Tourism Council, business travel expenditure in the country leapt from US$18 billion in 2000 to US$62 billion in 2010, and this figure is expected to balloon to US$277 billion by 2020, eclipsing the US.

China is also setting aside substantial amounts for infrastructure investment. GBTA reports that US$237 billion has been earmarked for infrastructure development between 2011 and 2015, with a further US$239 billion committed to growing China’s high-speed rail network.

Boeing predicts that Chinese carriers will grow at an annual average of 8.9 per cent over the next 20 years, partly due to the burgeoning domestic market but also because of their sufficient resources to compete in the international market.

Air travel currently makes up 85 per cent of business trips, though rail travel should see a rise as Chinese authorities aim to have all cities with more than 500,000 inhabitants connected by 2020.

“China began investment in infrastructure a long time ago, with particular peaks before 2008 to accommodate demand from the Beijing Olympics, and the pace has picked up in recent years,” said Fei.

HRG also found that hotel rates were stabilising in Beijing and Shanghai, proof that the business travel landscape in China is maturing. Shenzhen, Guangzhou and Chengdu are the fastest emerging business travel destinations, witnessing significant corporate travel bookings over the last few years.

KEMPINSKI Hotels will open the 480-room Kempinski Ambience Hotel Delhi on November 26, its first Indian property independent of Leela Palaces, Hotels and Resorts.

“We were in partnership with Leela for a long time, and both companies have done so well. Leela wants to expand overseas and we want to expand in India, and that’s why we decided to move apart. From a commercial perspective, that was the right decision,” said Vella Ramasawmy, general manager, Kempinski Ambience Hotel Delhi.

In a press release earlier this year, Kempinski stated that the opening of Kempinski Ambience Hotel Delhi would not affect the 25-year partnership between it and Leela Palaces, Hotels and Resorts, which will only end in 2015/2016.

The two firms are undergoing a progressive and controlled phase out that will be implemented over the next few years. At present, Leela continues to benefit from Kempinski’s sales and marketing network.

Owned by the Ambience Group, Kempinski’s maiden hotel is primarily targeting the MICE segment with its state-of-the-art conference and banquet facilities, including a 5,000-pax ballroom. It is expecting 70 per cent of its business to be MICE-generated, with an average occupancy of 60 per cent.

“Delhi in the past has faced stiff competition from cities like Hyderabad and Pune as far as hosting MICE events is concerned. I believe Kempinski Ambience Hotel Delhi is going to be a landmark iconic property in the Delhi region,” said Ramasawmy.

He revealed that Kempinski was looking to open another six properties in India by 2015.

“We want to position ourselves in the right city, right place. We are open to collaborating with partners besides the Ambience Group, and are looking at areas including Mumbai, Bengaluru, Kerala and Goa. Our focus is to have a mix of products,” said Ramasawmy.

KOREAN Air will add more flights to Kuala Lumpur in December, the peak travel period for both South Korean and Malaysian outbound.

The airline is adding an extra daily flight on the Incheon-Kuala Lumpur route from December 1-27, deploying a B777-300, according to Korean Air’s country manager for Malaysia and Brunei, Seiwan Kim.

He said the average load occupancy of daily flights was 80 per cent.

Kim also said the airline was looking at mounting eight charter flights between Incheon and Langkawi during the Chinese New Year period next year, but nothing has been confirmed as yet. Currently, Korean Air only flies to Kuala Lumpur.

Tourism Malaysia’s director for South Korea, Mohd Amirul Rizal, said Jin Air was also expected to commence a total of 20 charters, comprising two charters weekly from December 22 between Kota Kinabalu and Incheon International Airport.

A HYATT Hotels Corporation affiliate and Bonifacio Landmark Realty and Development Corp, a joint-venture company between Federal Land and Orix Corporation, have signed an agreement to develop a Grand Hyatt hotel and residence in Manila.

Slated to open in 2015, the Grand Hyatt Manila and Residences will be part of a two-tower mixed-use project in Fort Bonifacio Global City. Located in the heart of Veritown Fort, the master-planned development will have 11 residential projects, premier dining options and upscale retail spaces.

It will be the second Hyatt-branded hotel in the Philippines following Hyatt Hotel & Casino Manila.

The 438-room Grand Hyatt Manila will occupy the top 14 floors of the 66-storey office and hotel tower, featuring multiple F&B offerings, a spa, fitness centre and pool, as well as business and meeting facilities with state-of-the-art technology.

Meanwhile, the 220-unit residences will be in the second tower. Amenities include a spa, fitness centre, pool and restaurants.

MAKEMYTRIP has acquired the Hotel Travel Group (HT Group) for US$25 million, a move that was disclosed alongside the company’s second quarter financial report.

HT Group, which boasts presence in Thailand, Singapore and Malaysia, has been operating the website www.hoteltravel.com for more than a decade, and has tie-ups with approximately 80,000 hotels across the world.

Listed on NASDAQ, MakeMyTrip’s acquisition of HT Group is the latest in the Indian OTA’s prowl to snap up companies, and is expected to help it strengthen its hotels and holidays segment in Asia.

“MakeMyTrip was faced with increasingly difficult operating conditions as the health of our domestic airline industry remains uncertain,” said chairman and CEO Deep Kalra. “However, we are confident and optimistic of our vision and investments in changing the way Indians book their hotels and holidays in the future, as this segment of the travel market remains largely underpenetrated online today.”

MakeMyTrip’s net revenue rose 25.8 per cent year-on-year to US$45.7 million in 2Q2013, versus US$43.8 million in 2Q2012.

VOYAGES Indigenous Tourism Australia, which operates the Ayers Rock Resort in Northern Territory, is making an unprecedented push to grow its Asian client base with a week-long line-up of roadshows in Hong Kong, Taiwan, Singapore, Guangzhou and Shanghai.

Speaking to local travel experts at its inaugural roadshow in Singapore yesterday, Voyages’ executive general manager for sales and marketing, Ray Stone, said: “In the last two years, we’ve noticed a steady growth in visitors from Asia to Ayers Rock Resort. China, in particular, has become more significant, alongside Hong Kong, Taiwan and Singapore.

“Between July and October this year, the number of Chinese roomnights grew by a dramatic 79 per cent over the same period in 2011, albeit from a smaller base of 3,000 to 4,000 visitors. In contrast, we have about 10,000 visitors from the UK per annum.”

While the UK, Germany, France, the US and Japan remain the resort’s primary sources of international guests, Stone emphasised the need to actively target emerging markets in Asia.

“However, considering that we are not a mass market product, we are looking to target Asians who have been to Australia before but are now looking for something different and unique. Essentially, we are keen to attract individuals who are keen to explore the spirituality, art and culture associated with Ayers Rock and the surrounding region,” said Stone.

To encourage Asians to visit Ayers Rock and the resort, the destination needs to develop an identity that resonates with Asian travellers, he pointed out.

“We are trying to achieve this on a rather limited budget, and as such, have chosen to focus on educating and forging partnerships with travel experts and on generating publicity through the web and social media platforms.”

Ayers Rock Resort consists of six accommodation options, including the ultra-luxurious Longitude 131˚ tents; the newly refurbished five-star Sails in the Dessert; four-star Desert Gardens Hotel; Emu Walk Apartments; economy Outback Pioneer Hotel & Lodge; and Ayers Rock Campground, which houses a maximum of 2,000 people.

SINGAPORE Airlines (SIA) and SilkAir, in collaboration with Changi Airport Group, have launched a special offer for Indian passengers transiting at the airport.

Previously available to passengers from the Gulf area, Taiwan, Japan and South Korea, the Changi Dollar Voucher (CDV) promotion is now extended to Indian passengers transiting in Singapore on SIA and SilkAir flights.

Worth S$20 (US$16.30) each, the CDV is availalable for one-time use at all retail outlets in the transit areas of Terminals 1, 2 and 3 as well as the Ambassador Transit Lounges in Terminals 2 and 3 for a one-time redemption for three hours. Lounge usage includes showers with toiletries, light refreshments, Wi-Fi and non-alcoholic beverages.

Valid for tickets issued in India for the two airlines, the CDVs are available at all information counters at Changi till March 31, 2014.

Rakesh Ramnani, director, Vensimals World Travel, said: “Free usage of the Ambassador Transit Lounge is a big plus for longhaul passengers going to Australia, the US’ west coast and Japan. Even for shorthaul transit, a S$20 freebie adds to the feel-good factor of the flier who will feel an affinity to Singapore Airlines and SilkAir.”

Adding to the transit offer at Changi Airport, the one-night complimentary stay in Singapore being offered by Royal Caribbean Cruises is already creating waves of excitement among Indian cruise enthusiasts prior to the imminent holiday season.

KRIS International Traveltours is set to launch three charters from Kuala Lumpur to Christmas Island in December.

Operated by Malaysia Airlines, the charters will leave Kuala Lumpur on December 22, 26 and 29, while the return leg is on December 26, 29 and January 1.

Kris International Traveltours general manager, KT Foo, told TTG Asia e-Daily: “We first mounted the exclusive scheduled charter flights to Christmas Island way back in 1997. It’s an opportune time now to revisit and rediscover Christmas Island and to see the Red Crab Migration.

“Many Malaysians perceive Australia as being a very expensive holiday destination. We wish to change their mindset through our affordably priced charters. If these charters prove successful, we hope to do similar charters during the Chinese New Year period as well.”

Kris International Traveltours has developed four five-day/four-night packages for its December 22 departure, namely an all-inclusive four-wheel drive island adventure package from RM3,688 (US$1207), a honeymoon package, a game fishing package as well as a four-wheel drive island adventure and scuba diving package.

For the remaining departures, the company is offering two all-inclusive packages from RM3,488, namely a four-wheel drive island adventure as well as a four-wheel drive island adventure and honeymoon package, with optional activities such as golfing, bird watching and snorkelling.

Furthermore, the charter services also paves the way for more Australian inbound tourists to Malaysia in December, which coincides with the country’s year-end Mega Shopping Carnival, Foo pointed out. The company has tied up with an Australian outbound consultant for these charter operations.