INDONESIA-BASED property developer Surya Semesta Internusa (SSIA), the owner of Gran Melia hotels, is set to make its foray into the economy segment when its first BatiQa hotel opens in 2013.

According to Sami Miettinen, Surya Internusa Hotels managing director, SSIA aims to launch 35 to 40 budget hotels across the country within the next five years.

“Each hotel will have 100 to 125 rooms, a single F&B outlet as well as meeting rooms,” he said. Rates are expected to range from US$40 to US$50 a night, placing it at the higher end of the budget spectrum.

BatiQa will be targeted primarily at domestic business travellers, added Miettinen. “We will leverage on our close ties with the local industry to fill rooms.”

Despite the immense potential of the budget hotel segment in Indonesia, Miettinen conceded that operators still face numerous challenges. “Competition is rife with both local and international players trying to enter this space. In addition, it is difficult to ensure service consistency given the geographic spread of Indonesia. It’s easy to build a hotel, but difficult to stay ahead of the game.”

Five hotels have begun construction in Jakarta, Palembang in South Sumatra, Pekanbaru in Riau, Karawang in West Java and Surabaya in East Java. These five properties are slated to open in 2013.

SSIA is currently awaiting approval from the government to develop budget hotels in Yogyakarta and Makassar.

TO drive greater sales volume, Orient-Express is rolling out higher travel consultants’ commission across the world next year.

Speaking at the presentation of its 2013 Myanmar programme yesterday, Marco Rosa, Orient-Express global sales & marketing director, trains & cruises, revealed that commission rates for travel consultants will be raised from the current eight per cent to 10 per cent next year for its cruise and train bookings.

When enquired about the reason for the revision, Rosa replied: “It’s more like an incentive for travel (consultants) to sell our products. We thought that eight per cent is maybe, on some occasions, below the industry standards while ten per cent is more reasonable.”

Consultants making bookings now for departures in 2013 will also get to enjoy the higher commission rates, he added.

Boosted by the growing demand in South-east Asia, Orient-Express is sharpening its focus in the region with the launch of a new river boat as well as several new appointments.

Said Rosa: “Both our Myanmar cruises and Eastern & Oriental Express products are doing extremely well over the last few years. The South-east Asian markets are performing quite well, and they are also attracting quite a lot of clients from the other markets like the UK, the US and Australia.”

Earlier this week, Orient-Express has just appointed Eddie Teh in the newly created position of general manager of Myanmar cruises, while a new Bangkok-based sales director for trains & cruises will come on board on October 1 to handle the South-east Asia market.

At the presentation attended by travel consultants, Orient-Express also unveiled its newest cruise product, Orcaella, a 25-cabin luxury boat (TTG Asia e-Daily, September 5, 2012) that will begin sailing along Myanmar’s Irrawaddy and Chindwin rivers in July 2013.

GARUDA Indonesia will begin including passenger service charge (PSC) in its air tickets from September 28, with a transitional period of 12 months.

Garuda’s vice president communications Pujobroto told The Jakarta Post that the flag carrier will be the first Indonesian airline to integrate PSC into its tickets. At present, the departure taxes need to be paid in cash and in person at Indonesian airports.

Garuda executive vice president marketing and sales, Elisa Lumbantoruan, revealed that the carrier has begun preparations, including opening an escrow account that it will manage together with state-owned airport operator, Angkasa Pura. The airport authorities will continue to collect the PSC for tickets issued before the policy announcement, he added.

Meanwhile, Sriwijaya Air has announced plans to launch a new full-service carrier, Nam Air, next year. Following Pacific Royale Airways and Lion Air’s new subsidiary, Batik Air, Sriwijaya Air will be the third Indonesian carrier to venture into the full-service market, which is currently dominated by Garuda.

According to Sriwijaya Air president director Chandra Lie, the airline is still waiting for the authorities to issue the flight permit for Nam Air, but he hopes that the subsidiary will begin operations in 2013.

MYANMAR’S Ministry of Hotels & Tourism has banned foreign tourists from visiting several attractions sites in Rakhine and Shan States until further notice due to instability caused by ethnic clashes.

Banned sites include Sittwe, Mrauk U, Vesali and Mahamuni Pagoda in Rakhine State and Mong La in Shan State, according to a spokesperson from the ministry.

Other off-limits areas include all of Kachin State, as well as Mogok and Nay Pyi Taw – including nearby townships of Pyinmana, Lewe and Tatkon – in the Mandalay Region.

“We have restricted access to these areas due to the current situation. I am sure we will allow the tourists (to visit) very soon,” the spokesperson said.

THE Maldives continues to attract international hospitality brands and innovative developments, with Louis Vuitton becoming the latest addition to its burgeoning list of luxury resorts.

Speaking to TTG Asia e-Daily, Maleeh Jamal, deputy minister of tourism, arts and culture, confirmed that Louis Vuitton would debut a 46-villa resort in the Maldives in 2013. The property is now under construction on the island of Randheli in Noonu Atoll.

“Maldives has (also) become the birthplace of tourism innovation,” Jamal said, noting the host of unique attractions in the country’s tourism landscape.

On September 7, the world’s first underwater club, Subsix, opened at the Niyama Maldives. Next in the pipeline is an ambitious floating-island development – including an 18-hole golf course, residences, villas, a hotel and a convention centre – that is being built by Dutch Docklands.

GLOBAL Premium Hotels, the operator of Fragrance Hotels, the second largest budget hotel chain in Singapore, is setting its sights on opening its first properties outside Singapore and has plans to open 200 to 300 rooms per annum, either in the city state or abroad.

“We have not firmed up plans as we are still at the evaluation stage, but we are open to expanding to regional destinations including Malaysia, Indonesia and potentially Myanmar and Vietnam,” said Eddie Lim, CEO, Global Premium Hotels, which had recently secured funds totalling S$292 million (US$236.53) on the back of its IPO in April.

Lim said that the group was keen to export both its economy Fragrance and midscale Parc Sovereign brands abroad.

He said: “At the moment, we are looking at various ownership models including joint ventures, acquisitions and management contracts to grow our portfolio regionally.”

Despite the group’s foreign ambitions, Lim insisted that the group remained firmly focused on Singapore, which he believes still offers ample opportunities.

“With 17 million arrivals forecast for 2015, and with the hotel supply rate anticipated to lag behind this growth, there’s still a lot of room for economy and mid-tier hotels to make their mark in Singapore. Global Premium Hotels has an advantage in this respect owing to the intimate knowledge we have of the (Singapore) market,” said Lim.

A second Parc Sovereign, which will have around 270 rooms, is due to open in Singapore by end-2014 in the Lavender district.

CONCERNS over Hong Kong’s limited infrastructure for an influx of 4.1 million Shenzhen visitors have forced the Hong Kong and Chinese governments to put changes in the Individual Visit Scheme (IVS) on hold indefinitely.

Under a recalibrated IVS, Shenzhen was to begin offering its residents multiple-entry visas to Hong Kong on September 21. (See TTG Asia e-daily, September 3, 2012)

Gray Line Tours managing director, Michael Wu, said the move would not dampen travel demand to Hong Kong as the scheme was still in operation, although visas issued would only allow one to two entries to the city per application.

“It may not be convenient but they (Chinese visitors) will still come. I agree with the government’s decision, given the immense pressure that would be imposed on our immigration staff. The advantage of the current IVS is visitors may stay longer and spend more, instead of taking daytrips under the multiple-entry visa.”

Hong Kong Tourism Board (HKTB) chairman, James Tien, believes that the move can help ensure that visitors to Hong Kong receive proper service and a satisfactory experience.

“HKTB welcomes travellers from mainland China and the rest of the world. Nevertheless, it is important to take into account the concerns of Hong Kong society even as we welcome them. As such, we believe the decision by the government will ensure that Hong Kong’s visitor capacity and its tourism facilities can accommodate visitors’ needs.”

China Travel Services (Hong Kong) assistant general manager, Ng Hi-on, sees the need for HKTB to grow its pie in the long run.

“Hong Kong cannot just rely on China. It needs a balanced growth in European and American markets too. These longhaul markets do not always perform well but we should not put all our eggs in one basket,” he said.

WEGO.COM has unveiled a new look for its Deals feature by taking on a more photo-driven approach to showcasing travel deals. With the revamp, the travel search engine is also keen to work with travel suppliers who have special deals.

Wego Deals lists travel deals from all over the Internet for all destinations, curated by an automated aggregation service as well as Wego’s staff. Expedia, Viva! Holidays, Seven Oceans, Qatar Airways, Virgin Australia and Intrepid Travel are some of its partners.

“Any travel company that has a fabulous deal they want to tell consumers about should get in touch with the Wego Deals team,” said Wego chief marketing officer, Dean Wicks.

HARD Rock International will storm China in 2015, which is when its first two Chinese hotels in Shenzhen and Haikou are expected to be ready.

Developed in collaboration with Mission Hills Group, which owns and operates sports and leisure properties in the Pearl River Delta and Hainan, the 280-room Hard Rock Hotel Shenzhen and 250-room Hard Rock Hotel Haikou will feature Hard Rock’s famed rock and roll design elements as well as guest amenities inspired by its music roots, while seamlessly fusing with the signature style of Mission Hills and the surrounding landscape.

Hard Rock Hotel Shenzhen will feature luxury suits on the top floor, a Body Rock fitness centre, signature restaurants, an entertainment lounge, a recording studio and a nightclub, among others. Its 3.2-hectare counterpart in Haikou will sit in Hainan Island’s carbon-friendly Haikou Town Center, an integrated development with golf, shopping, dining, entertainment and cultural facilities.

Said Ken Chu, chairman, Mission Hills Group: “As China’s only hotel(s) embracing and implementing music throughout the guest experience, they will be a welcome addition to our unmatched selection of recreation options.”