RAHSIA Estates, a property developer based in Kuala Lumpur, has appointed Ri-Yaz Hotels & Resorts to manage its new five-star hospitality project in Langkawi.

Currently being constructed at a cost of RM380 million (US$127 million), Rahsia Estates Resort Residences & Spa will comprise 268 hotel rooms and residential suites when it opens in mid-2015.

Rahsia Estates CEO, Hanizah Abdul Hamid, said: “This will be Langkawi’s first gated mixed hospitality and resort residential development.”

According to Hanizah, the 6.9-hectare estate will be divided into three precincts. Precinct 1 will have 121 apartment units ranging from 73m2 – 167m2, Precinct 2 will feature a 116-room hotel and spa, while Precinct 3 will offer 31 cabana villas with private pools and landscaped gardens.

Ri-Yaz Hotels & Resorts managing director, Shaheen Shah, said: “Our expected average room rate (for the Langkawi property) is RM1,200 a night, and we are targeting 65 per cent occupancy.”

Asian Overland Services Tours & Travel assistant account manager, Ronnie Chan, said: “This property will compete with the Four Seasons (Resort Langkawi) in price, which is hard to sell. It will be a bigger challenge to sell 268 units at that price. Our clients from Europe, Australia and Asia are more comfortable with rooms in five-star hotels costing about RM500-600 a night.”

Ri-Yaz currently operates two other hotels in Malaysia – the Cyberview Resort & Spa in Cyberjaya, and the Ri-Yaz Heritage Marina Resort & Spa in Duyong Island, Terengganu.

By N. Nithiyananthan

IATA has urged China to continue the development of its aviation industry by ensuring sufficient capacity based on global standards and best practices.

Speaking at the China Civil Aviation Development Forum 2012 in Beijing, IATA director general and CEO, Tony Tyler, said that air transport played a significant role in China’s ongoing economic development.

“China is looking to increase its share of world trade from 10.4 per cent to 15 per cent. Aviation connectivity will be critical to making that happen,” he said. “Already, (China) is prioritising investments in airport and air navigation infrastructure.

“The challenge is to keep pace with rapidly growing demand, based on global standards which underpin safe and efficient global connectivity.”

In order to maximise growth potential, Tyler highlighted the need for China to expand its air navigation infrastructure to keep pace with burgeoning demand.

“IATA has worked successfully with China to open new entry points and create more flexibility in cooperation with the military. However, the challenge is growing daily as travel demand increase,” he said.

The more flexibility we have in how we share airspace between military, domestic and international flights, the better we will be able to manage growth and meet passenger expectations.”

Tyler added that planning for hub capacity at Beijing Capital International Airport, already the world’s second busiest airport in terms of passenger numbers handled, should also be a top priority.

MALAYSIA Airlines (MAS) registered a loss after tax of RM171 million (US$54 million) for 1Q2012, a 29-per cent recovery on its RM242 million net loss during the same quarter last year.

In an internal circular to staff, MAS group CEO Ahmad Jauhari Yahya attributed the marginal upswing to measures implemented since the airline embarked on efforts to streamline its network, lower costs and win back customers.

“We cut unprofitable routes, especially longhaul where yields were low. For cost, we lowered our fuel bill considerably – helped by the progressive delivery of new aircraft and returning old ones,” he said.

However, the situation remains dire for MAS. “(There is) a daily cash burn of RM5 million. It is imperative that we keep pushing up our revenue throughout the network and very closely watch all costs,” said Ahmad Jauhari.

To get around its financial handicap, the airline has resorted to a three-pronged fundraising initiative to bankroll its ongoing fleet revamp.

The first facet involves a 10-year Sukuk (Islamic bond issue) programme to generate RM2.5 billion.

The second involves a deal with Malaysia’s Ministry of Finance, which will purchase six Airbus A380s and two Airbus A330s worth RM5.3billion, and lease them to MAS through a special purpose vehicle.

The remaining funds will be sourced through commercial loans, with the shortfall met by MAS majority shareholder, Khazanah Nasional.

As an additional cost cutting-measure, MAS has offered its workforce up to two years of no-pay leave. The arrangement allows staff to seek alternative employment, except with rival airlines, but still avail of air travel benefits.

Reporting by N. Nithiyananthan

THE TOURISM Ministers of the G20 economies (T20) have issued a joint declaration calling for priority to be given to facilitating travel as a means to boosting economic growth and job creation.

“To ensure that tourism can play a key role in creating employment opportunities, both directly and indirectly through linkages to the local economy, raising national income, improving the balance of payments and boosting economic growth, priority should be given to facilitating travel and tourism,” the declaration states.

The declaration further urges the G20 nations to leverage new technologies to make travel “more accessible, convenient and more efficient without a diminution of national security”, and to ramp up cooperation on bilateral, regional and international travel facilitation.

The T20 were attending a summit in Mérida, Mexico on May 16, where research presented by UNWTO and WTTC demonstrated that improvements to visa processes would generate five million jobs for G20 economies and US$206 billion in international tourism receipts by 2015.

“UNWTO applauds the commitment of (the T20) to visa facilitation,” said UNWTO secretary-general, Taleb Rifai. “This declaration is an extremely positive signal to the international community that we are moving ahead on this issue of vital importance to the tourism sector and global economy.”