CHINA is experiencing a stagnation in the growth of Indian visitor numbers this year, due to an unfavourable currency exchange rate and increasing costs.

According to data from the China National Tourist Office (CNTO), 245,901 Indians visited China during January-May 2012, an increase of just 0.72 per cent over the same period in 2011. China is targeting 610,000 arrivals from India this year, compared to 606,500 in 2011.

“We expect only a marginal increase in the number of Indian visitors to mainland China this year. With the rupee on a downhill and the yuan on an upward spiral, we have to take this into account,” said CNTO in a statement.

Sajan Gupta, director, Vayu Seva Tours Kolkata said: “Hotel rates and transportation costs (in China) are up with a stronger yuan and US dollar, so the nett cost of tour packages to China have risen, making it less attractive for the outbound tourist.”

Even with the dampened forecast, CNTO has ramped up this year’s promotional budget for the Indian market, and is actively targeting the travel trade in Bangalore, Kolkata, New Delhi and Mumbai.

Rajendra Dhumma, director, Classis Travel & Tours Mumbai, said: “Roadshows and promotions should provide inputs about language, belief and customs, cultural values and attitudes, the Chinese socio-economic environment, social etiquette and protocol; as 75 per cent of Indian travellers to China travel for business.”

HONG Kong Airlines will ground its daily Hongkong-London (Gatwick) flights on September 10, barely five months after the all-business class service was launched in March.

Hong Kong Airlines president, Yang Jiang Hong, said the decision was made after a review of the carrier’s European strategy as a result of the continued weak economic outlook in Europe.

“We believe that a regional model focused on Asia-Pacific is most appropriate for Hong Kong Airlines at this stage of our growth. Our key focus will be building our regional network and strengthening our business across China, South-east Asia, Japan and South Korea,” said Yang.

“Our plan is to re-deploy the three specially-equipped, all-business class Airbus A330-200s which currently service the London route to charter flights following the suspension,” he added.

Joyce Fung, director of Happy Star Travel Services, which caters mainly to business travellers, said: “There are many (alternative) choices for the London-Hong Kong route, like Cathay Pacific and British Airways. Of course, Hong Kong Airline’s price is attractive to FITs.”

ROYAL Caribbean International’s Legend of the Seas will be returning to Singapore for her final season this October, and will complete her long-running Asian deployment next April.

From October 31, 2012 till April 1, 2013, the cruise ship will offer a mix of popular and new South-east Asian itineraries from Singapore, including several two- to seven-night sailings to Malacca, Penang, Kuala Lumpur, Langkawi and Phuket.

Other highlights include the four- and five-night festive cruises for Christmas, New Year and Chinese New Year, the new seven-night Borneo Explorer Cruise to new ports-of-call Kota Kinabalu and Bandar Seri Begawan, and the five-night Bangkok and Koh Samui Cruise.

Prior to being based in Singapore, Legend of the Seas will offer a series of four- to nine-night North Asian sailings out of Yokohama and Shanghai from September to October. Highlights include the nine-night Russia & Hokkaido Cruise to Vladivostok and for the first time, Japan’s Muroran and Kushiro.

The ship’s Hong Kong season in October will line up itineraries to Taiwan, Vietnam and China, calling at Manila, Taipei, Halong Bay and Sanya, and new ports-of-call Boracay and Kota Kinabalu.

LUXURY group The Peninsula Hotels is aggressively courting the lucrative Chinese market with a number of new initiatives this year, including tailored experiences in its US hotels and lifestyle programmes in its Greater China properties.

Speaking to TTG Asia e-Daily, The Peninsula Hotels vice president, sales, Simon Yip, said Chinese guests currently comprised around 10-12 per cent of the customer mix across its nine properties worldwide, but he expects the market to account for at least 20 per cent by 2014.

He said: “The China market contributes 40-50 per cent of the mix for Shanghai and Beijing, 16-18 per cent for Hong Kong, seven per cent for Bangkok, four to five per cent for Tokyo, and still a small percentage for Manila and our three US hotels but it has huge potential.

“(Chinese guests) tend to pick the higher room types or the suite categories. This is good for us in terms of yield.”

Yip singled out two new programmes catering to the market. One is a Lifestyle Academy in Peninsula’s Hong Kong, Shanghai and Beijing hotels. Guests are assigned style experts who offer professional shopping advice and are taught how to host dinner parties, from table etiquette to menu selection.

“Chinese travellers are fast becoming affluent travellers and want to enjoy the good things in life. Unfortunately, because of rapid growth in China, they might not always get the chance to…There’s a desire to learn,” he explained.

When Peninsula’s 10th property opens in Paris at the end of next year, it will have similar initiatives and there will also be a Cantonese restaurant.

Another programme is The Very Best of America by The Peninsula, which can be found in New York, Beverly Hills and Chicago. The aim is to allow Chinese travellers to have quintessential American experiences, while still feeling “at home”.

Yip pointed out that for the many families who were visiting to scout around for American universities, the hotels would help in the research process and offer services such as limousine rides to campuses and translators. Tickets to Broadway shows and baseball games, as well as Chinese breakfasts are also examples of what can be provided.

When asked if Peninsula would create a separate brand to reach out to Chinese guests, Yip said: “We are focused on strengthening our Peninsula brand and don’t want to deviate from that. There is a fine line between being Chinese-friendly and becoming too Chinese.”

MALAYSIA Airlines (MAS) has increased the frequency of its Kuala Lumpur-London (Heathrow) services from three times a week to a daily, effective August 12.

The route is currently served by the airline’s two existing Airbus A380 aircraft, which are configured in a three-class layout, seating a total of 494 passengers.

MAS group CEO, Ahmad Jauhari Yahya, said: “We are also on track to providing the A380 service on the main ‘kangaroo’ route between London and Sydney, when (our) third A380 begins daily operations between Sydney and Kuala Lumpur by end November.”

MANDALA Airlines launched its maiden flight between Jakarta and Bangkok on August 10, intensifying competition on the route, which is also served by Thai Airways International, AirAsia and Garuda Indonesia.

The daily Jakarta-Bangkok flight is operated using the airline’s new Airbus A320 aircraft, which can seat up to 180 passengers.

Mandala president director, Michael Coltman, said: “The launch of Jakarta-Bangkok services is part of our plan to develop a network between Indonesia and the rest of Asia.”

The Thai capital is Mandala’s third overseas destination after Singapore and Kuala Lumpur (TTG Asia e-Daily, June 13, 2012).

MINOR Hotel Group (MHG) has added the Bundarika Villas & Suites to its portfolio in Phuket, and is planning to rebrand the resort as an Anantara in 2013.

Located on Layan Beach on Phuket’s north west coast, the resort features 77 villas and suites. MHG has also acquired five hectares of adjacent hillside land with panoramic views of the Andaman Sea, which it plans to develop into a high-end residential project.

MHG’s total investment is approximately three billion Thai baht (US$95.5 million), including funds for a refurbishment of Bundarika Villas & Suites over the coming months, before it is rebranded as Anantara Phuket Layan Resort & Spa in 2013.

Dillip Rajakarier, CEO of MHG, said: “We are very excited to announce this new addition to Minor’s portfolio and what will become a second Anantara resort in Phuket. Bundarika offers guests an exclusive retreat, and is ideal to be rebranded to an Anantara next year after renovation and an operational improvement programme.”

MHG currently operates two upscale hotels on Phuket’s Mai Khao beach, namely Anantara Phuket Villas and JW Marriott Phuket.

A SIGNIFICANT depreciation of the Indian rupee against the Malaysian ringgit has resulted in stronger outbound demand to South India, with some agencies reporting longer stays and higher budgets for clients during the ongoing Hari Raya festivities till end August.

Travel consultants interviewed by TTG Asia e-Daily said demand for the South Indian cities of Chennai, Kochi and Tiruchirappalli was especially buoyant, catalysed by low fares and direct connections provided by low-cost carriers.

Nantha Travel & Tours managing director, M Nantha Gopal, has seen a 15 per cent increase in business to Chennai, Kochi and Tiruchirapalli from mid-July till end-August. He explained that low airfares offered by budget carriers coupled with ongoing retail sales in South India were driving the growth in demand.

Topaz Travels travel consultant, Sharitha Rajendran, has seen a 20 per cent year-on-year increase in business to South India this Hari Raya season, with the average length of stay rising from four days to six days.

“There is also increased demand for four-star properties, whereas previously the trend was budget accommodation,” she added.

On the flipside, travel consultants reported slower business to Mumbai and New Delhi due to hikes – by some 15 to 20 per cent – in Malaysia Airlines airfares. The flag carrier became the sole operator on the route following AirAsia X’s exit earlier this year (TTG Asia e-Daily, January 13, 2012).

– Read more in TTG Asia, Aug 24, 2012 issue

THE TRAVEL Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) have jointly suggested a phased in implementation of IATA’s weekly remittance system, which was previously scheduled to take effect in November (TTG Asia e-Daily, June 8, 2012).

The two associations have proposed that the current fortnightly payment scheme be extended till June 30, 2013. For a one-year period thereafter, a 10-day billing cycle with a two-week credit period from the last day of sale will be implemented.

The weekly remittance system will finally be phased in from July 1, 2014 till June 30, 2015.

The joint proposal will be discussed with IATA at the upcoming World Passenger Symposium 2012 in Abu Dhabi this October.

Iqbal Mulla, president, TAAI, said: “Neither the airlines nor we can function or survive in isolation. Our discussion with the airlines has been fruitful and we are confident that our proposal will be unanimously accepted at the conference in Abu Dhabi.”

Ajay Prakash, president, TAFI, said: “The period of transition is necessary for the trade to adapt their business models around fund management and for clients to adjust to shorter credit tenure.”

INDIA’S private airlines Jet Airways, IndiGo and SpiceJet are set to add a large number of international flights by October, which are expected to ease fares. This is a long-awaited result of the Ministry of Civil Aviation’s move to cease Air India’s right of first refusal on overseas routes.

Having been granted permission for capacity increases, Jet Airways will add 14 weekly flights to Singapore, and seven each to Dhaka, Chittagong, Male and Dar-e-Salam. IndiGo will increase frequencies to Bangkok, Kathmandu and Singapore with 28 weekly flights. SpiceJet will start 35 additional weekly flights to Bangkok, Guangzhou, Hong Kong, Kabul and Male.

Iqbal Mulla, president, Travel Agents Association of India, said: “It augurs well for fliers and travel companies, as the increase in flights will offer a wider choice of itineraries and bring fares down.”

Seema Ahmed, general manager, Gainwell Travel & Leisure, said: “With the private Indian carriers entering the fray to garner a larger share of the rapidly growing aviation market, airfares are expected to rationalise and consumer confidence will rise.”

According to government sources, the three private carriers will also allocate more flights to their Middle East routes.

Out of the 63 flights that IndiGo has received permission for, 28 will go to Dubai and seven to Jeddah. SpiceJet will fly seven flights each to Dubai and Riyadh of the 49 flights it has been given a nod to. Jet Airways has received the thumbs up for 56 new flights, of which 14 will be used for Kuwait.