THE MACAU government has finally approved Wynn Resorts’ Cotai land concession contract, paving the way for the company to begin construction on its second integrated resort in the SAR.

Stephen A. Wynn, chairman and CEO of Wynn Resorts said in a statement: “The official transfer of real estate in Cotai makes possible the commencement of the construction phase, of what will be the single most important project in the history of Wynn Resorts.”

Expected to open by 2016, the US$2.5 billion integrated resort will be located on a 20.6-hectare plot of reclaimed swampland on the Cotai Strip, and will incorporate a five-star hotel with 1,500-1,600 rooms, and a casino with 500 gaming tables and 1,300 slot machines.

The resort will also feature a spa, a range of F&B and retail outlets, and entertainment and convention facilities.

Wynn’s new resort will compete with several rivals on the Cotai Strip, including the recently opened Galaxy Macau and Sands Cotai Central, and the Venetian Macao.

JAPAN Airlines (JAL) has started using a Boeing 787 Dreamliner aircraft on four out of five weekly services between Tokyo (Narita) and New Delhi, effective May 1.

The remaining flight will continue to be served by a B777-200ER aircraft with 245 seats. In comparison, JAL’s Dreamliner is configured with 42 business-class and 144 economy-class seats, translating into a 19-per cent reduction in capacity on the route.

Yasushi Isomura, country manager – India, JAL said: “We are making the best use of the Boeing 787’s long-range capability to serve markets with promising business demand. With the introduction of the Dreamliner, we are expecting to attract a lot of corporate business and leisure travellers.”

Susrita Banerjee, managing director, Fly Faraway Kolkata said: “Deployment of more fuel-efficient aircraft between India and Japan is welcome, as travel between the two countries is increasing substantially due to joint investments in industries such as light engineering and energy. If airline costs are lowered, ticket prices should remain low. We should also see some MICE movement from Japan to India soon.”

SINGAPORE-headquartered GTMC Travel, which specialises in global wholesale of outbound travel products and regional in-bound ground operations, has entered into a joint venture with Vitours, one of the leading tour operators in Vietnam.

The joint venture allows GTMC’s global network of travel consultant partners to book inbound and outbound travel packages to and from Vietnam directly through GTMC’s office in Saigon, effective May 1, 2012.

“The association with Vitours will help our large network of travel (consultants) to confidently service the growing demand for travel into Vietnam,” said GTMC Travel CEO, Samson Tan.

Cao Tri Dung, managing director, Vitours said: “We look forward to serving more guests from around the world and delivering a high-quality travel experience.”

In addition to its joint venture with Vitours, GTMC also has subsidiaries in Thailand, Malaysia, the Philippines, Hong Kong and mainland China.

BANDUNG needs to arm itself with new attractions and improved infrastructure if it wants to fend off increasing competition from Vietnam for the Malaysian market, say Malaysian travel experts.

Malaysian buyers whom TTG Asia e-Daily spoke to during the recent West Java Tourism Exchange said travel demand for Vietnam was booming, with Malaysians viewing the destination as a shopping and culinary haven.

Azhar Ahmad, director, PHP Travel & Tours Kuala Lumpur said: “There is growing interest in travel to Vietnam. Shopping is the major attraction. Our travellers love to shop, and the food (in Vietnam) is similar to ours.”

Abu Hassan Ahmad, CEO, Honey Vacation Travel & Tours Petaling Jaya said: “Medan (North Sumatra) and Bukittinggi (West Sumatra) used to be favoured by Malaysians, but not anymore because we haven’t heard about anything new there lately.”

“Bandung needs to keep introducing new products and attractions to keep the destination appealing,” he added.

According to the buyers, infrastructure in Bandung such as Husein Sastranegara International Airport and the local road network also require upgrading, in addition to increased efforts to ease traffic conditions.

With Bandung actively promoting itself as a MICE destination, traffic conditions would be a major issue when handling large groups, they said.

Responding to the feedback, ASITA West Java chairman, Herman Rukmanadi, said: “Yes, we are aware of the trend (of more Malaysians heading to Vietnam) and we intend to do something about it.”

“Firstly, we are developing products and promoting (areas) beyond Bandung to the Kuala Lumpur market. Secondly, we will start penetrating markets other than Kuala Lumpur, such as Penang and Kota Kinabalu.”

MALAYSIA Airlines (MAS) and AirAsia yesterday inked several MoUs to enhance mutual cooperation, even as the share swap deal between the two carriers was abruptly called off.

Azman Mokhtar, managing director of Khazanah Nasional, MAS’ majority shareholder, said: “The cross holding of shares was intended to better align the economic interests on the part of the (airlines’) major shareholders, Khazanah and Tune Air. After eight months, however, our assessment is that the cross holding of shares has become a distraction to efforts to turn round MAS and win stakeholders’ support for collaboration.”

Moving forward, MAS and AirAsia have agreed to unwind the share swap deal, and have instead entered into a supplemental collaboration agreement to explore mutual collaboration in joint procurement and aircraft component maintenance, support and repair services, an extension to the comprehensive collaboration framework agreed last August.

“The (new agreement) will focus on specific areas of collaboration while continuing to comply with all relevant anti-trust laws. It is also part of the response to meet challenges brought about by the ASEAN Open Skies policy, which comes into effect in 2015,” said MAS and AirAsia in separate statements.

MAS group CEO, Ahmad Jauhari Yahya, said: “Collaboration is a game-changer in our plan to build a sustainable business for the future. We will continue to drive these collaborations with AirAsia and AirAsia X, as it will enable MAS to exploit potential synergies and efficiency gains.”

Meanwhile, AirAsia’s Tony Fernandes and Kamarudin Meranun have resigned from MAS board, while MAS’ Mohamed Azman Yahya has stepped down from the AirAsia board.

Reporting by N. Nithiyananthan

DETERMINED to cement its status as a top international tourism destination by 2020, China’s Hainan province is making moves to grow its infrastructure and flight connectivity to support the expected increase in domestic and international arrivals.

Speaking at press conference in Singapore yesterday, Luo Shixiang, deputy secretary general, Hainan province said two intersecting expressways cutting through the centre of Hainan Island would be constructed, linking its north and south.

In addition, the existing hi-speed railway in the east will be extended to connect the entire perimeter of the island. Two new airports will also be built in the south and east, with the latter serving the existing and planned MICE infrastructure in Boao.

To bolster international arrivals, the Hainan government recently granted third, fourth and fifth aviation rights to all foreign carriers, allowing them to operate from their home ports to Hainan, and onward to other destinations, without restriction.

Luo said: “Hainan is the only province in China that has granted foreign airlines third, fourth and fifth aviation rights. Foreign carriers are also permitted to establish operation bases in Hainan. Simultaneously, Hainan has eased visa restrictions since 2010, and nationals from 26 countries, if they travel in groups of at least five, can travel into Hainan visa-free.”

In keeping with its open skies policy, the Hainan government has formalised an extension of Jetstar Asia’s Haikou-Singapore flights to Perth. Once operational, the extended service is expected to increase traffic flow from Australia to Hainan and vice versa, via a two-hour transit in Singapore.

Luo said: “The Jetstar extension is just one of many initiatives which will help us to reach out to the Australian leisure market, which is a priority. Simultaneously, it will make travelling to Australia more convenient for the Chinese.”

Over 30 million tourists flooded Hainan in 2011, with the bulk arriving from mainland China. Between 2010 and 2011, tourism revenue jumped by 25 per cent to RMB32 billion (US$4.3 billion).

NIKKI Beach is poised to expand its Asian footprint by opening a beach resort and club in Phuket in 4Q2013. The group’s inaugural foray into the region saw it launch a Koh Samui beach club in 2009.

The Nikki Beach Club and Nikki Beach Hotel & Spa Phuket, nestled in the enclave of Bang Thao, will comprise a five-star hotel with 151 luxurious suites, and 23 villas featuring private pools and gardens.

Other hotels and beach clubs in Bali, Langkawi and Hainan Island, and an extension of the group’s hotel concept to Koh Samui are on the drawing board. Singapore is set to host a Nikki Beach Club, but no specific site has been earmarked thus far.

Michael Penrod, son of Nikki Beach’s founder Jack Penrod, told TTG Asia e-Daily that there was “simply no limit to where Nikki Beach could go and grow in Asia”.

“India and Hong Kong, alongside Thailand and Singapore, where sizeable pockets of our ideal (highly affluent) clientele reside, are in our sights. In fact, clients from these countries have told us time and time again that they want more Nikki Beach properties closer to home,” he said.

Penrod added that the Nikki Beach concept would be tweaked to suit Asian preferences. “For instance, we plan to integrate Asian dishes into our F&B menus,” he said.

Nikki Beach is working with commercial real estate developer, The Castlewood Group Singapore, to source and develop suitable land sites, and to market properties to regional investors.

Christopher Comer, CEO, Castlewood Group said: “The market that Nikki targets is, we believe, immune to economic fluctuations. That’s why we are expecting an uptick in growth despite the uncertain economic climate.”

According to Comer, rates for the Phuket hotel are estimated to start from US$450 a night for a suite, although analysts have advised that a rate of US$730 per night is plausible during high season.

Even though construction on the hotel has not yet started, 5,700 roomnights have already been sold, he added.

THE SHARE swap deal between Malaysia Airlines (MAS) and AirAsia is off, confirming earlier rumours that a combination of union pressure, concerns over conflict of interest and the upcoming general election would force the national carrier’s hand over the issue.

Trading of MAS and AirAsia shares has been suspended to make way for an official announcement later today.

The dissolution of the comprehensive collaboration framework signed last August is likely to see AirAsia’s Tony Fernandes and Kamarudin Meranun exit the MAS board.

On the flip side, the cooperative spirit of the agreement is set to continue, with MAS and AirAsia expected to persist in collaborations on procurement, pilot training, and maintenance support and repair services, in an attempt to secure cost savings.

The carriers are expected to establish several joint venture companies to facilitate this collaboration.

Reporting by N. Nithiyananthan