THE THAI government has given the green light to Airports of Thailand (AOT) to transform Bangkok’s Don Mueang Airport into a domestic LCC hub, in order to ease growing congestion at Suvarnabhumi Airport, the country’s main international gateway.

Under the arrangement, Suvarnabhumi, which is expected to process 52 millon passengers this year – beyond its annual passenger capacity of 45 million, will cater mainly to full-service carriers operating regional and international routes, while Don Mueang will cater to the domestic low-cost sector.

According to a report by the Bangkok Post, Thai Transport Minister Jarupong Ruangsuwan said Don Mueang would be informally opened for flights by relocated airlines in August, and commence full-scale operations by October.

AOT recently rolled out incentives on airport fees to entice LCCs to shift to Don Mueang. Thai AirAsia, the country’s largest LCC, is the main target for relocation, as its move would be a catalyst for other carriers to follow suit (TTG Asia e-Daily, May 30, 2012).

DAVAO’s accessibility as a tourist and business destination will receive a boost with the revival of Wings Air’s weekly Davao-Manado service on July 5, and the introduction of SEAir’s twice-daily Manila-Davao flights on July 31.

SEAir’s Manila-Davao service will be operated using a 144-seat Airbus A319 and a 180-seat Airbus A320 aircraft. The new route complements the carrier’s existing twice-daily Singapore-Manila flights, effectively replacing the direct Singapore-Davao service which Tiger Airways – part owner of SEAir – axed last April due to lower-than-expected load factors.

Wings Air, a subsidiary of Indonesia’s Lion Air, will use a 72-seater ATR 72-500 aircraft on its weekly charter service between Davao and Manado, the capital and commercial hub of North Sulawesi.

Wings Air’s return to the sector after a four-year hiatus represents a big gain for Davao, which lost access to Manado when Cebu’s Mid-SEA Express suspended operations on this route last April.

Jason Magnaye, head of Davao City Tourism Office and Davao City Investment and Promotion Center, said the new air routes “augur well for our efforts to improve the city’s accessibility both for tourism and business purposes”.

“The Davao-Manado connectivity opens up Davao City to Manado’s almost half a million population. This also complements our continued efforts to promote bilateral business and trade relations between the two cities,” he added.

STARWOOD Hotels & Resorts Worldwide is expanding its portfolio in China, fuelled by increasing affluence in the country, as well as growing demand in second- and third-tier cities.

After surpassing its 100^th hotel milestone in China earlier this year (TTG Asia e-Daily, April 25, 2012), Starwood has another 100 hotels in the pipeline. Greater China is the group’s second largest market outside the US.

Qian Jin, president, Greater China, Starwood Hotels & Resorts Worldwide, said: “Our portfolio of distinct brands and brand recognition across China and around the world allow us to enter multiple resort destinations like Hainan, leveraging collective local scale without cannibalizing business, so we get more than our share of new business.”

Sheraton, which is leading Starwood’s expansion in China, is on track to reach 90 hotels in Greater China by 2016. Other brands with openings in the works include W Hotels, The Westin, Le Méridien, Four Points by Sheraton, Aloft and St. Regis.

The group’s inaugural W Hotel in China will debut in Guangzhou in early 2013. Another four W Hotels are scheduled to open in Macau, Beijing, Shanghai and Changsha by 2017.

The Hongta Hotel, Twelve at Hengshan in Shanghai, and The Royal Begonia on Hainan Island, China’s first Luxury Collection resort, will open this year under Starwood’s Luxury Collection brand. Five more Luxury Collection hotels will be launched in Dalian, Hangzhou, Suzhou, Xiamen and Nanning by 2016.

Meanwhile, Starwood’s first dual-branded ski resort, The Westin and Sheraton Changbaishan, will open in July.

THREE historic hotels in Yangon have been earmarked for renovation this year.

The properties include Strand Hotel, Inya Lake Hotel and Thamada Hotel, which are all operated by Hong Kong-based Strand Hotel International in a joint venture with Myanmar’s Ministry of Hotels and Tourism.

A spokesperson from Strand Hotel said: “Since there is growing competition in Myanmar’s hotel industry, we are very concerned about providing better quality and services for guests. We hope the renovations can improve our star ratings.”

Both the Strand and Inya Lake Hotels will undergo major refurbishments, including the addition of rooms and overhaul of event venues. Meanwhile, minor renovation work is being planned for Thamada Hotel.

According to the Ministry’s five-star rating system, Strand Hotel is a five-star property, while Inya Lake Hotel and Thamada Hotel are four-star and three-star hotels, respectively.

FOUR historical state-owned buildings in central Yangon have been put up for hotel tenders, as part of the government’s effort to ease the city’s room shortage.

Myanmar Investment Commission (MIC) has invited both local and foreign companies to bid on the properties for conversion into hotels on long-term leases.

The tendered properties include the three-storey Myanma Oil and Gas Enterprise building on Merchant Street, the three-storey Ministry of Hotels and Tourism office at the corner of Sule Pagoda Road and Mahabandoola Street, the four-storey Trade Corporation building on Bo Sun Pat Street and the four-storey Export and Import Department building at the corner of Merchant Street and Mahabandoola Street.

“These buildings will be leased for 30 years, with the possibility of two 15-year extensions under the investment law. According to our terms and conditions, the original structure and architectural features of the buildings will not be allowed to change,” said a MIC spokesperson.

An empty seven-hectare block in Hmantan quarter, Amarapura Township, Mandalay, is also available for tender, according to the spokesperson, who added that more state-owned buildings would be put up and announced for tender at a later date.

In early January, MIC announced bids for the Yangon Region Government Office on Strand Road, the five-storey Myanma Railways building on Merchant Street and the former Foreign Minister’s Office on Pyay Road for conversion to serviced apartments, as well as the historic Secretariat and High Court buildings for restoration as museums.

SRILANKAN Airlines is ramping up its flight frequency to China as it seeks to capture a larger slice of the growing Chinese outbound market.

The state-owned carrier will hike its thrice-weekly Beijing flights and four-weekly Shanghai flights to daily services from July 15. It will also increase its Guangzhou operations from three to four times a week in July.

The airline will deploy A330 and A340 aircraft, each featuring 81 business class seats and 236-296 economy class seats. All three routes are flown from Colombo via Bangkok.

SriLankan Airlines chief marketing officer, G T Jayaseelan, said this was part of the carrier’s five-year plan to expand to Asia and rationalise its flight cutbacks to Europe. The focus is to tap the huge Chinese charter market to the Maldives, where the airline is a big player, through its Colombo base.

“In the long run we see many Chinese operators starting flights and we want to be there before this market expands,” he said, adding that the increased frequency will boost its Maldives operations.

Sri Lanka’s share of the Chinese outbound market is miniscule. In 2011, the country received 18,505 Chinese arrivals (including visitors from Hong Kong) – up from 11,660 in 2010 – of which more than half are workers in Chinese construction sites in Sri Lanka.

Chaminda Dias, executive director at Luxe Asia, a Colombo-based DMC, welcomed the move. “It is easier to schedule packages when there are daily flights compared to flights on different days of the week,” he said.