BUSINESS Event Sydney (BESydney) has so far managed to secure in 2012 a number of conferences, congresses and incentive programmes that will generate over 211,200 delegate days, and contribute an estimated A$191 million (US$191.5 million) to the New South Wales economy.

The events, some of which were secured by BESydney over five years ago, range from small incentive groups, to mid-sized congresses and international mega events.

“The 2012 calendar year is going to be a bumper year for the business events industry here in Sydney,” said Lyn Lewis-Smith, acting CEO of BESydney.

“With thousands of delegates spending 211,200 delegate days in our city, the economic and social legacies of these events will be substantial.”

The events are spread throughout the year, although March is looking to be a standout month with eight international events scheduled, including the 3,200-delegate USANA Asia Pacific Convention, the 1,500-delegate XVI International Symposium on Atherosclerosis, and a 1,500-delegate Tupperware Indonesia Manager’s Incentive Trip.

In total, 9,500 delegates will spend over 39,700 delegate days in Sydney in March.

THE DEAL under which China’s HNA Hotel Group was to have bought a 20 per cent stake in Spain’s NH Hoteles (TTG Asia e-Daily, December 14) has fallen through because of the current state of international markets.

NH informed the Spanish stock market regulatory body, the Comisión Nacional del Mercado de Valores (CNMV), of the development on Monday, blaming the breakdown on the “volatility and uncertainty” of global financial markets.

The value of the proposed investment, which would have made HNA the second largest stakeholder in NH, and anticipated the establishing of a joint hotel management company in China, had already been marked down from the original 431.6 million euro (US$560 million) price tag set in May, to 329.8 million euros.

HNA, the owner of Hainan Airlines, but also with its own Lucky Way International Travel Agency chain, was due to have put some of its existing properties under this new joint banner. In return, NH Hoteles was to receive favoured status for HNA customers visiting Europe.

NH said in its statement to the CNMV that the two sides were still exploring the possibility of some form of strategic alliance.

CATHAY Pacific Airways has released details of its new premium economy-class product (TTG Asia e-Daily, September 1), which will be progressively introduced on its longhaul services from March 2012, and be available for booking for flights departing from April 2012 onwards.

Cathay Pacific CEO John Slosar said: “Premium economy will be a real upgrade over economy, and passengers will get great value for a great product.”

The new premium economy class will feature a quieter, more spacious cabin than the existing economy class with between 26 and 34 seats. The seat pitch will be 38 inches – six inches more than economy class – and the seat itself will be wider and have a bigger recline.

The seat will also come with a large meal table, a cocktail table, a footrest, a 10.6-inch personal television, an in-seat power outlet, a multi-port connector for personal devices, and extra personal stowage space.

On the ground, premium economy-class passengers will enjoy priority check-in at dedicated counters, and boarding before traditional economy-class passengers. There will also be an increase in baggage allowance from 20kg to 25kg, or two pieces of baggage from 23 kg to 25kg each.

In-air service improvements include larger pillows and noise-cancelling headsets, being welcomed onboard with champagne, and an enhanced onboard meal selection.

The new premium economy cabin will be installed on all Cathay Pacific longhaul aircraft including Boeing 777-300ERs, Boeing 747-400s, Airbus A330-300s and Airbus A340-300s. The airline plans to have 87 aircraft fitted with the product by end-2013.

Premium economy will initially feature on the Sydney, Toronto and Vancouver and New York routes, followed by London, Los Angeles, San Francisco, continental Europe and other longhaul services.

THE ECONOMIC crises in Europe and the US will turn the attention of international exhibition organisers to Asia over the next few years, according to Napindo Media Ashatama president director, Herman Wiriadipoera.

Speaking at the recent 4th Indonesia MICE Outlook & Award 2011, Wiriadipoera said: “Asia’s economic situation is relatively positive. Big countries like Indonesia, China and India have become the economic barometer.”

“Organisers who used to concentrate their businesses in Europe and the US are switching to Asia, including Indonesia,” he said.

“There are a growing number—big and public listed companies from the US, Europe and Singapore who are looking either to develop partnerships, to affiliate or even to buy events.”

“I don’t need to mention names, but my company has received several offers,” he added.

Wiriadipoera said that for a successful event that has been around for around 10 years, the offer could be up to 10 times the event’s annual turnover.

“I invite my fellow exhibition organisers to look at the B2B sector more,” he said, adding that at the moment only around 10 per cent of PEOs in Indonesia were focusing on B2B events.

VIETNAM Airlines (VNA) will raise from tomorrow onwards its economy- and business-class domestic airfares by 15-20 per cent and five per cent, respectively.

VNA’s price hike follows a move by the country’s Ministry of Transport to increase the price ceiling for domestic airfares.

“It is expected that Jetstar and Air Mekong will follow with increases shortly,” said Exotissimo Travel Vietnam general manager George Ehrlich-Adam in an email to industry partners.

Ehrlich-Adam said that in order to avoid any cost increase for confirmed bookings from now leading into next year, Exotissimo would issue all domestic air tickets latest by today.

Exotissimo will add the applicable fare increase to any new invoices issued for confirmed bookings from tomorrow onwards.

By Sirima Eamtako

VIETNAM Airlines’ (VNA) new direct flights from Hanoi and Ho Chi Minh City (HCMC) to London’s Gatwick Airport, launched late last week, are expected to be a boon for the country’s inbound tourism prospects.

The flag carrier operates a Boeing 777 aircraft on the service, which departs from Hanoi on Mondays and Thursdays, and from HCMC on Tuesdays and Fridays.

Laurent Kuenzle, Asian Trails group managing director, said: “All additional air capacity to Vietnam from any carrier is most welcome, not only in view of the increase in capacity, but also with the marketing activity by the airline focusing on Vietnam, as well as the flexibility to invite tour operators, travel agents and press trips.”

Exotissimo Travel Vietnam general manager George Ehrlich-Adam said while the new VNA flights would mainly boost inbound traffic from the UK, additional seats on Turkish Airlines flights to Vietnam, as well as increased frequencies on services from France and Russia, would all contribute to hike capacity into the country.

VNA’s new UK links have also contributed business to areas outside of Hanoi and HCMC, with Furama Resort Danang’s executive assistant manager, Nguyen Duc Quynh, saying the property had seen heightened interest from many UK tour operators during the recent World Travel Market in London.

Nguyen said the property had managed to seal a deal with a UK tour operator for a total of 10 groups, each staying seven nights and taking 15 rooms, over the first six months of 2012.

By Sirima Eamtako

MALAYSIAN travel experts whom TTG Asia e-Daily spoke to offered differing opinions on Malaysia Airlines’ (MAS) strategy to rebuild its loss-making operations.

The flag carrier is attempting to turn around a RM1.25 billion (US$392 million) loss for the first three quarters of 2011, by streamlining its network, spinning off a new premium Asian carrier, and winning back customers through the gradual revamp of its fleet (TTG Asia e-Daily, December 8).

GrandLotus Travel Agencies director, K. Thangavelu, said: “There is a war out there and in such a situation there is a need to fight. What we are seeing (with MAS’ plan) is a withdrawal.”

Thangavelu added: “Regular top management changes – four in the last five years – have been a disaster for the airline. None of them had indepth knowledge on managing an airline. The (MAS) strategy is to bring in a new person, test him and hope he can do a good job.”

With regards to the new premium Asian carrier, Thangavelu said MAS already had MASwings, Firefly and a partnership with AirAsia. “What exactly is a new airline going to offer?” he questioned.

In contrast, Travecheq Travel managing director Jenny L Shahbudin fully supported MAS’s decision to pull out from loss-making routes and concentrate on profitable alternatives, especially in Asia.

“Asia-Pacific is the region of the 21st century,” she said.

When asked if new aircraft would drive more of her customers to fly with MAS, Shahbudin explained that travellers were hesitant to splurge at the moment.

She added: “Sometime the cheapest travel deal may not be the best. If they can afford it, they will look for quality.”

In a related development, Malaysian Association of Tour & Travel Agents (MATTA) deputy president John Tan welcomed MAS group CEO Ahmad Jauhari Yahya’s promise that he would meet with MATTA representatives on a regular basis.

“I hope (Ahmad Jauhari) keeps his word. We would like him to meet us at least two to three times a year,” said Tan.

“Matters we would like to discuss are ticketing issues including procedures and problems, direction for the airline and progress being made, and service-related issues.”

By N. Nithiyananthan

SINGAPORE’s Commonwealth Travel Corporation Services (CTC Travel) has completed a merger with MISA Travel, a local OTA.

As part of the deal, CTC, a full-service leisure and corporate travel consultancy, will gain an 80 per cent stake in MISA Travel, whose core business lies in online travel ticketing services.

CTC will absorb the various online ticketing channels under MISA Travel’s portfolio, including airfares.com.sg, hotels.com.sg, cruises.com.sg, getaways.com.sg, resorts.com.sg, landtours.com.sg, and rails.com.sg.

CTC Travel CEO, Wee Hee Ling, said: “The online portal has been an evolution for travelling trends, and we felt that this was a great chance to embrace this prevalent trend of travel booking to reach out to different travellers. MISA Travel’s online portals stand to offer instant access and affordable options for travel products, which will provide an opportunity for us to manage distressed air tickets and hotel inventory for all travellers.”

According to a statement from CTC, the merger marks the beginning of a three-year strategy, which includes “fostering the trend among travellers to book all their travel necessities online, and to enhance and expand the other corporate travel services such as MICE, corporate travel and inbound tours”.

CTC Travel senior vice president, marketing & PR, Alicia Seah, said: “CTC’s strengths lie in its ability to cater to groups and niche segments such as educational tours, MICE and speciality tours for Muslims. Through MISA, which has the technological know-how, we hope to gain more market share, by building our presence online and eventually capturing new markets for the firm.”

“Ultimately, we would like to transform CTC into a one-stop shop for all travel needs.”

Stressing that all MISA staff would be retained, Seah told TTG Asia e-Daily that for the time being, the two companies would retain their separate brand identities, although there would be some integration in the areas of product development, marketing, human resources and finance. For instance, CTC-designed products will be sold on MISA’s websites, which might be enhanced with live-booking capabilities at a later stage.

Moving forward, Seah said CTC was planning to open offices in Hong Kong, South Korea and Taiwan over the next three years to service in-country MICE clients. A corporate arm will be developed for each of these offices.

Seah added that CTC was also looking to purchase F&B outlets and hotels, or develop their own concepts, both locally and regionally.

“We want to expand our horizons and embed ourselves in (other) tourism-related businesses. CTC is poised to accelerate our regional growth both vertically and organically,” she said.

THE BOOMING automotive accessories market in China is spawning an ever-increasing demand for exhibition space.

Automechanika Shanghai, one of 11 annual tradeshows for automotive parts, equipment and services organised by Messe Frankfurt worldwide, recently concluded with a record number of exhibitors at Shanghai New International Expo Center.

This year’s edition – the seventh – saw a 15 per cent increase in both exhibitor numbers and exhibition space.

Kanice Ho, the show’s spokesperson, said: “In 2010, there were over 3,100 exhibitors from 27 countries and regions, exhibiting at 138,000m2 of exhibition space. And there were 50,561 buyers from 130 countries and regions.”

“This year, Automechanika Shanghai attracted over 3,600 exhibitors from 36 countries and regions.” There were also 12 international pavilions, with two additions from Japan and India, she added.

Automechanika Shanghai, organised in conjunction with the China National Automotive Industry International Corporation, is now Asia’s largest trade fair for automotive parts, accessories, equipment and services.

Last year, China’s automobile industry recorded the highest-ever annual sales in history with 18.06 million vehicles registered, while its automotive products market exceeded RMB500 billion (US$78.5 billion).

This year, the China Association of Automobile Manufacturers predicts car sales in China will grow by 10 per cent.

Industry analysts expect the automotive product market to be worth RMB1 trillion in three years. The automotive electronic products market is estimated to reach RMB240 billion with an annual growth of 26 per cent.

By Patricia Wee

SOFITEL will open in early 2015 a new 350-room hotel in Changsha, the capital of Hunan province in China.

The Sofitel Changsha Huachuang is being developed by Hunan Hua Chuang Group, and will occupy the first to fifth floors, plus the top 17 floors of a high-rise mixed-use development.

The tower’s lower floors will encompass luxury office space, while the complex will also contain a 28-storey office building, a 28-storey luxury apartment tower, and a shopping centre.

The hotel will offer 350 rooms and suites, three restaurants and a top-floor bar, a So Spa, a fitness centre, an executive lounge, a beauty salon, an indoor swimming pool and two boutique shops.

MICE facilities will include a large pillar-free ballroom, seven meeting rooms of various sizes, and a business centre.

The Sofitel Changsha Huachuang is the first international luxury hotel development for Hunan Hua Chuang Group, a major commercial real estate developer in Hunan, Henan and Hebei provinces.