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.

THE ASIAN Development Bank (ADB) is considering rendering assistance to develop Myanmar’s tourism industry, most likely through its Sustainable Tourism Development Project (STDP), which is currently being implemented in Laos and Vietnam.

ADB country director – Thailand Craig Steffensen said visitor numbers to Myanmar had been on an uptrend since 2009, with significant opportunities for future growth, especially with the government keen to support the sector’s expansion.

“Myanmar’s tourism sector is blooming rapidly. Hotels and airlines are all booked now; this is a good sign,” Steffensen said. “But we want to know how Myanmar can handle this situation in the right way. We are considering how we can help (but) can’t say when and how much we will provide.”

According to Steffensen, tourism growth would also bring challenges, such as cultural and environmental sustainability issues, and these could be addressed through the STDP.

“Myanmar should take care of (these issues) and find the right way to promote tourism,” he said. “We are also looking forward to the chance to work together not only on (tourism) but also other sectors, such as the environment.”

According to tourism consultant Kyi Kyi Aye, Myanmar currently only receives indirect support from the ADB through Greater Mekong Sub-region (GMS) initiatives.

“But now ADB has attended this GMS meeting in Myanmar and they are interested in (supporting) our tourism sector,” she said. “It would be very good if they could provide infrastructural and technical assistance on sustainable tourism development.”

Khin Than Win, a director at Myanmar’s Ministry of Hotels and Tourism, believes the bank’s policy on Myanmar was becoming more “flexible”.

“As Myanmar is not in a position to initiate strategic projects, we requested the ADB to provide some assistance regarding the building of tourist information centres and the provision of technical expertise,” she said.

MARRIOTT International has just opened in Shanghai its flagship property for the Marriott Hotels & Resorts brand in China.

The Shanghai Marriott Hotel City Centre, located on Xizang Middle Rd and overlooking People’s Square, offers a total of 720 rooms and suites.

“Having opened several hotels with Marriott International in Shanghai and abroad, I truly believe that this hotel is poised to make a significant impact in the city,” said Meng Lo, general manager of Shanghai Marriott Hotel City Centre.

The hotel features five different F&B outlets including Inagiku, a Japanese restaurant; Man Ho, which serves Cantonese and Shanghainese cuisine; Shanghai City Bistro, offering international fare; fresh coffees and takeaway options at Java+; and a lounge and bar.

Facilities include an executive lounge, a 25m indoor pool with Jacuzzi, steam room and sauna, a gym and a spa.

The entire fifth floor is a dedicated events venue, offering more than 2,000m2 of space including two pillar-free ballrooms and seven breakout rooms.

INDONESIA’s MICE industry should capitalise on the country’s robust economic growth by encouraging the development of domestic MICE, said Anggito Abimanyu, the former head of fiscal analysis at Indonesia’s Ministry of Finance.

While trade- and export-related MICE business might be affected by the ongoing financial turmoil in the US and Europe, the positive results posted by domestic businesses should result in an overall increase in the number of domestic MICE in 2012, explained Abimanyu.

Abimanyu projected that Indonesia’s economy would grow by between six and 6.3 per cent next year, with a low inflation rate of around four per cent.

“Indonesia’s economic fundamentals are better than during the crisis of 2008/2009,” he said. “While the external economic growth is slowing down, Indonesia’s domestic economy is strong.”

“It is a good opportunity to create MICE events.”

SILKAIR, the regional wing of Singapore Airlines (SIA), will introduce on March 26, 2012 direct air services between Singapore and Darwin, the capital of the Northern Territory and the carrier’s first destination in Australia.

Flights will be operated four-weekly, departing on Mondays, Wednesdays, Fridays and Sundays, with next-day return flights. Airbus A319 and A320 aircraft will be deployed on the route, and will feature both business and economy-class cabins.

The new service will boost SilkAir’s presence in Australia, which is currently being served by SIA via five points: Adelaide, Brisbane, Melbourne, Perth and Sydney.

“This is a very significant move for us and will complement our parent company’s ongoing efforts to better serve the Australian market,” said SilkAir CEO Marvin Tan.

Meanwhile, reciprocal frequent flyer arrangements between SIA and Virgin Australia, the next stage of a long-term alliance between (TTG Asia e-Daily, August 12) the two carriers, will start from December 10.

The arrangements will enable KrisFlyer members to earn and redeem frequent flyer points on Virgin Australia’s entire network, and Velocity members to earn and redeem frequent flyer points on SIA-operated flights.

The two airlines expect to commence codesharing on each other’s services from early 2012.

KOSMOPOLITO Hotels International (KHI) has completed the sale of Central Park Hotel in Hong Kong for a sum of HK$515 million (US$66 million).

The sale realises a gain of approximately HK$370 million for KHI, which has been appointed by the new owners to manage the property.

“The disposal completion and the managerial appointment continue to demonstrate our group’s ability to execute consistently on our stated strategy,” said Winnie Chiu, KHI’s president & executive director.

“We will use the proceeds to reduce the group’s bank borrowing position and to further invest in other value-accretive hotel opportunities.”

The 142-room Central Park Hotel was converted from an office building and opened in April 2005.

NEXT year’s edition of Cruise Shipping Asia is scheduled to take place from October 17-19 at the Marina Bay Sands Convention Centre in Singapore.

The second annual three-day conference and trade show organised by UBM, which focuses on the cruise industry in Asia-Pacific, will include a full conference programme of panel discussions, a trade fair, as well as business-matching and travel consultant training sessions.

Michael Kazakoff, vice president of UBM Live, said: “As more cruise lines commit to Asia, growth is inevitable, and forums like Cruise Shipping Asia provide an excellent platform for networking and creating business opportunities.”

Rama Rebbapragada, chairman of the Asia Cruise Association, said: “Cruise Shipping Asia has certainly established a strong platform for like-minded cruise industry players and stakeholders for the fruitful discussions and exchange of ideas that are essential in bringing Asian cruising forward into its next phase of development.”