WEST Java Tourism Promotion Board (WJTPB) is planning to install a dedicated marketing representative in Malaysia to boost arrivals and promote other Javanese attractions beyond Bandung.

WJTPB chairman, Cecep Rukmana, said: “Malaysia is a very important market for us. In term of numbers, they are the biggest regional market for us. However, (Malaysians) are still concentrating on visiting Bandung for bulk shopping and culinary tours.”

Rukmana added that destinations such as Garut, Tasikmalaya, Cirebon and Kuningan offered an abundance of natural and cultural attractions, in addition to new hotel developments, and were thus ripe for promotions.

According to Indonesia Hotel and Restaurant Association West Java chairman, Herman Muchtar, WJTPB is cooperating with the Indonesian Embassy in Kuala Lumpur and Visit Indonesia Tourism Office (VITO) Malaysia to grow Malaysian footfalls to the region.

“Although the number of arrivals from Malaysia is the largest – 145,000 arrivals in 2010 with an estimated growth of 10 to 13 per cent last year – it is still very small compared to the potential. Our target is to achieve between 300,000 and 350,000 arrivals within the next four years,” he said.

Welcoming the initiatives, VITO Malaysia manager, Mohd Shafie Obet, said: “Having a dedicated representative will certainly help me to promote Indonesia in general, particularly West Java, better.”

BRAND USA, a public private partnership tasked with promoting international travel to the US, unveiled its first-ever global marketing campaign during last month’s International Pow Wow in Los Angeles.

The campaign, which was originally scheduled for launch at ITB Berlin 2012, showcases the diversity of experiences available in the US, inviting travellers to Discover this land, like never before.

Brand USA has adopted an integrated marketing strategy for the campaign, employing a mix of television, digital, billboard and print advertising, in addition to utilising online and social media.

Dedicated Facebook, Twitter and YouTube pages highlight country-specific promotions, while the recently revamped DiscoverAmerica.com portal functions as an information hub for planning trips.

A budget of US$12.3 million has been set aside for the first three months of the marketing blitz, which will target Japan, the UK and Canada. A second wave will target Brazil and South Korea.

According to Chris Perkins, CMO, Brand USA, there are plans to extend the marketing efforts to China and other parts of Asia over the next 12-15 months. “We will also have in-market sales representation, and will hire these partners through an RFP process,” he said.

MACAU has taken a beating from regional competition for leisure travellers from Singapore, registering a 7.1 per cent dip in arrivals in January and February over the same period last year.

According to Grace Tong, marketing manager of Macau Government Tourist Office-Singapore Representative, Macau welcomed 30,000 Singapore visitors in the first two months of 2012.

Sam How, Asia-Euro Holidays general manager, said attractive airfare promotions for other mid-haul destinations have drawn Singaporean holiday-makers away from Macau.

He said: “Take Japan for instance – airfares have been slashed to recover tourist numbers after the disasters. One could fly to Tokyo for just S$300 (US$241), excluding taxes, which is in the same price range as a flight to Macau.

“Airfares to Hong Kong were also on promotion – S$180 on Hong Kong Airlines and S$195 on Cathay Pacific, making it a worthy competitor of Macau. Although there are campaigns to twin Hong Kong and Macau, and some leisure visitors do take up such arrangements, it is still uncommon. Perhaps travellers find it inconvenient to take the ferry from Hong Kong to Macau. Airfare promotions that allow Singaporeans to fly into Macau and leave from Hong Kong are not seeing strong take-ups.”

How was referring to an arrangement among carriers such as Air Macau, Hong Kong Airlines and Cathay Pacific to offer special fares that allow passengers to enter and exit either Hong Kong and Macau airports on different airlines.

High room rates and limited room supply over the weekends, a result of Macau’s strong Chinese arrivals, were also factors contributing to the declining demand from Singapore, noted a director of a Singapore travel company that handles leisure and incentive business.

Tong added that the softening demand out of Singapore was also due to Jetstar’s pull-out. The low-cost carrier had suspended its direct services between Singapore and Macau since February 6, leaving Tiger Airways and Air Macau to fly the route.

However, she expects the recent opening of Macau’s fourth integrated resort, Sands Cotai Central, to generate leisure and incentive interest from Singapore and lift arrival numbers.

A MULTITUDE of reports in the mainstream media are speculating that the share swap deal between Malaysia Airlines (MAS) and AirAsia, signed in August last year together with a comprehensive collaboration framework (CCF), will be scrapped, possibly as early as this Wednesday.

Speculation on this issue had intensified after officials of MAS’ eight unions and associations, representing some 22,000 individuals, met with Malaysian prime minister Najib Razak in February to protest the deal.

The unions and associations were particularly upset about the 20.5 per cent stake Tune Air (representing AirAsia) has in MAS and the presence of AirAsia’s two top officials Tony Fernandes and Kamarudin on the board.

Meetings have been held between finance ministry officials and MAS CEO, Ahmad Jauhari Yahya, aviation experts including former MAS CEO, Abdul Aziz Rahman, and union officials.

Abdul Aziz, who opposes the deal, had said that it would not resolve the problems faced by MAS. He called for the deal to be unwound by the return of the share swap between MAS and AirAsia, and for Fernandes and Kamarudin to step down from MAS’ board to avoid conflicts of interest.

It is believed that the forthcoming annual general election, which could be held as early as in June, was the reason behind the government’s willingness to listen to the unions and to seriously consider retracting the deal. Inclusive of spouses and families, the unions have been estimated to command 100,000 votes.

World Discovery Travel business development manager, Joseph Xavier, said: “The deal is…anti-competition, with the special arrangement benefiting only one airline. The loss of (MAS subsidiary) Firefly’s services on various routes (following the deal) is an example of this.

“Let airlines be competitive on their own and there will be more competitive prices in the market.”

Reporting by N. Nithiyananthan

NEPAL has registered consistent growth in arrivals over the past few years, with March alone clocking in a 37 per cent increase over the same period last year.

According to government statistics, Nepal welcomed 509,956 visitors in 2009, 602,867 in 2010 and 781,202 in 2011, while some 63,799 visitors thronged the destination in March.

India is the largest source market for Nepal, accounting for 20 per cent of tourists and registering the second largest percentage increment – it grew 69 per cent year-on-year. Germany tops the growth chart with a whopping 86 per cent increment. The other key source markets are China, Sri Lanka, the UK and the US.

Average length of stay in Nepal has hit a high of 12-13 days.

Pilgrimage drew 20 per cent of total visitors, trekking and mountaineering attracted 15 per cent, and leisure garnered 10 per cent.

Debjit Dutta, director and CEO, Impression Tourism Services, said, “Nepal is a very convenient destination for adventure tourism, pilgrimage for Hindus and Buddhists, and for leisure in cooler climates. And since there are no casinos in India, Kathmandu is a destination within easy reach for those who wish to test their luck.”

India and Nepal are linked by services operated by Jet Airways and Air India.

HILTON Colombo, armed with a US$45 million renovation plan, is the latest among five-star properties in Sri Lanka to spruce up its hardware in anticipation of 2.5 million visitors by 2016, a bold target set by the country’s tourism authorities.

Thiru Nadesan, chairman of the government-owned Hotel Developers, which owns the hotel, said local and international bids were called on Sunday for the refurbishment of the 362-room property. The hotel, opened in 1984, is said to be one of Colombo’s oldest five-star hotels.

Works will be done in two phases, with the first likely to start after September and be completed by August 2013. The hotel will be closed for the extensive makeover.

Nadesan said the company was searching for a suitable consultant and interior decorator.

Spurred by rising tourism demand following the end of Sri Lanka’s 30-year civil conflict, several hotels across the country have undergone major renovations in the past 18 months. Room inventory in the destination had also doubled.

In Colombo, the five-star, 229-room Ceylon Continental Hotel is being renovated at a cost of nearly US$14 million. The hotel has been closed since February and is slated to reopen this October.

The 300-room Taj Samudra, Colombo is planning an extensive remake later this year. A hotel spokesperson said costs were yet to be worked out but noted that works would be done in phases, with sections of the hotel closed.

Meanwhile, leisure industry sources told TTG Asia e-Daily that local players were negotiating with the Four Seasons Hotels and Resorts and Raffles Hotels and Resorts to establish properties in Colombo.

“If these deals materialise, these hotels will come on stream by 2018,” an industry source said.

With arrivals already on the rise, Sri Lanka aims to double the number of rooms to more than 45,000, from the current stock of 22,000.

Big-name hotels such as Shangri-La, Six Senses, Mövenpick and Anantara have jumped into Sri Lanka, while Marriott, Hyatt and Sheraton are now under negotiation.

MALAYSIA is spinning off a new hotel brand, Datai Hotels & Resorts, from one of its most acclaimed resorts, The Datai Langkawi.

The resort is majority-owned by Khazanah Nasional, the government’s investment holding arm, and is managed by Archipelago Hotels & Resorts, also formed by Khazanah as part of the government’s plan to march forth in hospitality.

With the exception of Resorts World, Malaysia virtually does not boast homegrown hotel brands which have a regional or international footprint.

A second Datai will open in Desaru in September 2014, “with a number of other exciting projects in the pipeline”, said Frank Zeller, managing director of Archipelago.

The hotel is part of the Desaru Coast Integrated Tourism Destination, also driven by Khazanah.

Observers said The Datai Langkawi was a hard act to follow, in no small part due to its unique location and architecture, which cascades from centuries-old rainforest to a private beach.

Zeller said it was “the ideal foundation” from which to “thoughtfully” grow the brand “through the management of appropriate and exciting luxury iconic hotels and resorts in unique destinations around the world”.

Manuel Ferrer, managing director of Pacific World in charge of South-east Asia, betted on “good to very good” prospects for Datai Hotels & Resorts.

“There is a rapidly-growing class of affluent Asians for whom this kind of product is appealing. There’s the increasing fascination and willingness to travel to the Orient among Western world clients and there are tens of thousands of expats in the region willing to spend their breaks in this kind of property. Plus, depending on each property, there are meetings, events, weddings. So, the clients are there. It is a matter of…above all, sticking to the brand promise of ‘creating everlasting memories’.”

This is not the first time single properties have spun off chains. Mandarin Oriental Hotel Group was built on the success of The Oriental, Bangkok (now The Mandarin Oriental Bangkok), while Soneva Fushi launched Six Senses Resorts & Spas, to name a few examples.

INDIA’s poster child OTA, MakeMyTrip, is on a prowl to buy more companies, having done three M&As since its blockbuster IPO on NASDAQ in 2010.

Founder & CEO Deep Kalra outlined three “buckets of M&As” when asked by TTG Asia about his strategy.

So far, the three companies bought by MakeMyTrip are disparate businesses: a 79 per cent stake in Luxury Tours & Travel Singapore; 29 per cent in Delhi-based My Guest House Accommodations, a portal focusing on budget accommodation in India; and 19.9 per cent in Ixigo, a leading travel meta search engine in India.

The first bucket enables MakeMyTrip to gain direct access to suppliers, such as its acquisition of Luxury. Kalra believes there is still a lot of potential to do more M&As in South-east Asia, “as that’s where Indians travel to”.

The second opens new customer segments for the company, such as its acquisition of My Guest House Accommodations.

The third bucket comprises niche travel technology players, like Ixigo.

– Read the full report in TTG Asia, May 4, 2012