TTG Asia
Asia/Singapore Monday, 2nd February 2026
Page 2714

South Korea records strong ASEAN arrival growth

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TOURISM cooperation between ASEAN and South Korea took a turn for the better in 2011, with the latter implementing measures that paved the way for more ASEAN arrivals.

With South Korea’s visa system seen as a major obstacle to growing ASEAN arrivals, the destination’s authorities cut the number of supporting documents required, introduced double-entry and family-unit visas, relaxed conditions for multiple-entry visas and extended visa validity periods for travellers from Indonesia, Vietnam, the Philippines, Cambodia, Myanmar and Laos from last April.

As a result, 459,300 travellers from these markets visited South Korea between April and November last year, an improvement from the 555,012 arrivals in 2010. Cambodia registered the biggest growth (70.1 per cent), while the Philippines accounted for the lion’s share.

Last year also saw the opening of Korea Tourism Organization (KTO) offices in Hanoi and Jakarta. Another will open in Manila before June.

• Read more in the ATF Daily

New Thai-Cambodia visa

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IN A significant first, Thailand and Cambodia have announced they will issue a single 30-day tourist visa to non-ASEAN visitors from February 1, with Vietnam and Laos to be brought into the ambit by end-2012.

Aynur San, general manager, Turkey-based Oniva Tours, said: “It will benefit us as we will now pick destinations and products from two or more countries and not worry about itinerary changes due to unforeseen events, say the Bangkok flood.”

Frauke Melchert, Germany-based Meeting Consult International, added: “This is best for bringing more MICE events to ASEAN. Now I can plan multi-country incentives and many combinations of events. I hope more countries will be added.”

Michael Lim, managing director of Cambodia-based Dara Hotels and Resorts, was similarly optimistic about the prospects for MICE, giving an example of how a convention in Thailand could be combined with incentives or post-tours in Cambodia.

He said: “Tourists can now come with different objectives, for instance, wellness tourism for Cambodia and beach tourism for Thailand.”

Jose Henrique Goncalves, managing director, France-based Abako said: “Business travel will also benefit hugely because of the flexibility a multi-country visa offers”.

Echoing their views, Virat Chatturaputpitak, vice president of the Association of Thai Travel Agents and managing director Marwin Tours (Thailand) said immediate benefits could be expected from “cross-border travel with itineraries involving destinations of both countries”.

Cambodia’s minister of tourism, Thong Khon, revealed that the next step would be “to include Laos and Vietnam, develop the road network well and offer our four countries as a package to foreign visitors, a unique concept offering in Asia”.

The vision of a single visa enabling seamless travel across 10 ASEAN countries was one of the recurring topics discussed at ATF this year, with countries pledging to take serious steps in working towards its implementation.

• Read more in the ATF Daily

Malaysia’s year of events

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TOURISM Malaysia will focus its global marketing efforts on promoting events and festivals taking place in the country this year, with a first-of-its-kind Malaysia International Tourism Exchange (MITE) to be a calendar heavyweight.

Tourism Malaysia acting director general Azizan Noordin said: “We will be concentrating on marketing the year’s events under the umbrella brand of Luxury Malaysia.

“Our strategy will involve participating in international travel trade fairs and seminars, public relations and advertising activities, and organising hosted fam trips for foreign travel consultants and media.”

About 40 per cent of its total marketing budget of RM130 million (US$41.5 million) has been set aside to do this.

Under the initiative, Malaysia will promote events such the Kuala Lumpur International Shoe Festival, the Rainforest World Music Festival in Sarawak and the ASEAN Food Heritage Trail. Key highlights of the year are the 61st PATA Conference from April 20-22 and MITE 2012 from May 31-June 3.

To be held at the Malaysia Agro Exposition Park Serdang, MITE 2012 will span five halls: an international hall, a Malaysia hall, an Asian hall, a China hall, a B2C hall and a hall featuring Asian cuisine. Up to 600,000 visitors and 1,500 exhibitors from 25 countries are expected.

Norman Kumar, group deputy CEO of the event orgainser, Myevents International, said: “The concept is a tourism exchange, not a fair. It will bring Malaysia to the world, and the world to Malaysia.”

He added: “It is definitely on a bigger scale compared to ATF or ITB Asia, which focuses on bringing overseas traffic to ASEAN and Asia respectively. MITE has a focus on ASEAN, with Asia as a bigger picture, and the globe as the overall picture.”

In 2012, Malaysia is targeting 24.5 million overseas arrivals and RM58 billion in tourism receipts.

• Read more in the ATF Daily

More Singapore-Sulawesi traffic on the cards

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A NEW initiative to attract inbound traffic from Singapore to Sulawesi is in the making with a plan to sell Manado-Makassar packages riding on a codeshare agreement between SilkAir and Garuda Indonesia.

Visit Indonesia Tourism Officer (VITO) Singapore country manager, Sulaiman Shehdek, said: “SilkAir has four weekly services between Singapore and Manado (North Sulawesi), while Garuda Indonesia has a daily service between Singapore and Makassar (South Sulawesi), and a number of flights between Makassar and Manado.

“As such, travellers from Singapore and other countries can pick any day of the week to visit Manado and Makassar.”

“Both airlines have approached VITO Singapore to link them up with the North Sulawesi Tourism Promotion Board (NSTPB) and South Sulawesi Tourism Board to create two-city leisure traffic.”

Five-day/four-night packages with two nights in Manado and two nights in Makassar are being discussed, which should be ready in time for Singapore’s mid-year school holidays.

Fam trips for Singapore’s travel consultants and the media to North and South Sulawesi from March 3-7 are also being planned.

“Manado has always been known as a diving destination. Now we need the destination to come up with ideas on what they can offer leisure travellers in particular, but also MICE,” said Sulaiman.

NSTB executive director Widijanto said: “We will be responsible for the groundhandling and are working out the details with VITO Singapore.

“The cooperation with VITO Singapore is just the beginning. We are trying to expand our market, and cooperation with VITO is the way to go. The Ministry of Tourism and Creative Economy has VITOs in 11 destinations (worldwide), and we are working with them.”

One example is a partnership with VITO France, said Widijanto. “We are trying to get more of the European market, and VITO France is looking for new destinations (beyond Bali) for special interest tours.”

India, ASEAN join hands for tourism

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INDIA and ASEAN member states made history on January 12 by signing a Memorandum of Understanding (MoU) that will lead to cooperation on several levels to boost each other’s tourism business.

Areas of cooperation include human resource, technology transfers, infrastructure development, bilateral investments in the tourism and hospitality sector, full liberalisation for airlines to increase flights and mutual marketing campaigns. An office for monitoring its future has been set up by ASEAN in Mumbai.

The MoU’s biggest allure is the potential for air liberalisation. Indian private airlines, thus far constrained by the Directorate General of Civil Aviation from flying many of the available international routes, may now break free from the shackles.

The promotion of Buddhist pilgrimage tours will also be significant in the mutual exchange, and a highlight in the bilateral partnership this year is an ASEAN-India car rally that will run from Batam to New Delhi.

Cooperation will also manifest in areas such as cruise development along the Indian coastline and parts of ASEAN, and tourism flow enhancements.

With 4.5 million Indians travelling to ASEAN in 2010, the growth in bilateral tourism is expected to be exponential. The region is expecting 107 million global arrivals by 2015.

MAI spreads its wings

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MYANMAR Airways International (MAI) is starting a new daily flight in the Bangkok-Singapore-Bangkok sector from February, deploying Airbus A320 with 150 seats and A321 with 210 seats.

As well, to facilitate travel on their busiest routes, Guangzhou, Siem Reap and Phnom Penh, MAI is offering visas on arrival (VOA) for passengers of any nationality.

Ye Jhan, country manager (Thailand & Cambodia) confirmed that the VOA arrangements had helped to increase business travel to Myanmar.

“We are looking at acquiring more aircraft to support the opening of new routes within ASEAN and to other Asian destinations”, he said.

AirAsia X pull-out draws different views

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AIRASIA X’s impending pullout from Europe (London, Paris) and India (Delhi, Mumbai) (TTG Asia e-Daily, January 13, 2012) has drawn a mixed bag of reactions from the travel trade.

Kuala Lumpur-based MP Travel & Tours, whose inbound business mix consists of forty per cent from Indonesia and 60 per cent from India, stands to lose much from the withdrawal.

“Almost all of our customers from India fly AirAsia X, because our partner agency in India has a joint promotion with the carrier for FITs, so this will have a huge effect on our business,” said the company’s assistant manager – outbound, Ice Tey Lan Lan.

“We’ve not yet had a discussion on the issue, but we expect to lose at least 20 per cent of our business in the beginning. We will have no choice but to look for alternative airlines,” she added.

On the other hand, K. M. Lam, manager – international sales, Greater China inbound, of Kuala Lumpur-based Mayflower Acme Tours, said while AirAsia x’s pullout would be a loss for the destinations concerned, the impact on travel consultants would be insignificant.

“Travel consultants will not really be affected by the route cuts, since not many of us use budget airlines in the first place due to practical reasons,” she said. “Budget travellers, FITs and other independent consumers will be the ones affected, since they are the ones flying AirAsia X.”

“As long as the routes are served by alternative airlines, it will be okay for (travel consultants). For example, India has Malaysia Airlines (MAS) and Air India, while Europe has KLM, Lufthansa, Emirates and MAS,” she added.

Chennai-based Travelexpress chairman C. Nagendra Prasad said: “Tiger Airways will still provide the connections from South India to ASEAN. There are also Indigo, Jet Airways and Air India providing air links.”

View from the Top: Jason Peck

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Our first View From the Top in 2012 is a feel-good story of how a director of sales rose to become the CEO of a growing Asian hotel chain based in Singapore. Raini Hamdi finds out how Peck did it

jason-peck1
Jason Peck
CEO
Furama Hotels International, Singapore

We always ask women CEOs how they cope, so, for a change – what’s it like to be a CEO of an expanding chain, at just 43 years old and with a wife and two kids?
Quite frankly, in the last two years, I neglected my family a lot. The company expanded from four hotels five years ago to 43 hotels today, even though many of the hotels are in Thailand and China, the latter under FX, which is a no-frills, easy-to-manage brand. Still, that’s a lot of growth in five years.

How do you juggle career and family commitments?
I’m lucky I have a supportive wife. As you know, I rose from a director of sales (DOS) position (within eight years) to become a CEO and it has not been easy, frankly. Given my age, the job, the industry, you need an understanding and independent wife – imagine, your husband is always out. My two kids, one 19 years old and the other 12 years old, are also pretty independent and my wife is a businesswoman herself, working for her dad, so that helps a lot.

We try and schedule our lives – if I’m away, she will try her best to be at home; if I travel, I will always plan to be away Monday to Friday, so I can be with the family during weekends.

It is common for a DOS to rise to become a GM. Few, if any, rise to become a CEO. How did that happen?
Actually, when FHI was set up (as the management company of Furama Singapore, now Furama City Centre; the other property, previously a Novotel, is now Furama RiverFront), the owner did not have any plans to manage anybody’s hotels, only its own.

I joined Furama Singapore as DOS in 2003 during the SARS crisis, when the occupancy was five to 10 per cent. I had left my job at Mandarin Oriental Hotel Group when it decided to cease the regional office – as no one knew how long SARS was going to last – and asked staff to take six months no-pay leave.

I brought in strong results at Furama Singapore. This got me and Kevin (Ng, son of Ng Kim Suan, chairman and substantial shareholder of Furama Limited, the owning company) thinking: why can’t we manage hotels ourselves? Kevin was then business development manager for Furama Limited. At the same time, the management contract with Accor (for the Novotel) was ending. I also had an offer from Hilton International – a VP position in the regional office here – and I told Kevin, if I’m going to oversee just one hotel, it would not be suitable for me. And Kevin himself was young and aggressive (in wanting to grow the company).

But during that time, the other hotel, a Novotel at the time, had 480 rooms (today, it has 605 rooms), which were still a lot of rooms to fill and Singapore was not as vibrant as it is now. While we had stabilised and strengthened Furama Singapore, we had to be sure if we could manage the other hotel. We looked at the GOP and did our sums, and we were confident we could do it.

I’ll never forget what our chairman said. He was very supportive. He said, Jason, you don’t have to do much better than Novotel. If you can do the same, I have 100 per cent control, I save on the management fee and most of all, I can put my Furama brand back on the hotel.

 

“Why would I settle as regional head of an international chain, or a VP, if I can head the company myself?”

 

I suppose that’s why we are seeing the rise of more Asian management chains – hungry, young Asian owners and managers, and the fact that one hotel does not cut it to draw talent?
You can’t attract talent if you have only one hotel. People want to grow. There is only one GM for one hotel and one DOS – after you’ve promoted him to corporate director of sales within six months, what then?

Was it tough for you to choose between staying with Furama and joining Hilton?
Not at all. I had been with Banyan Tree and I’ve always had the vision to be with a Singapore homegrown brand. My first hotel was Equatorial Singapore; I was one of the youngest DOS’ then at 26 or 27 years old and I saw for myself how my boss, Lee Soo Han, had the owner’s trust in overseeing 18 hotels. Equatorial was the biggest local chain then. Once you have the trust, the Asian owner will let you run the show, as long as you report to him.

But why a homegrown brand – patriotism?
In my heart, if I work for an international chain, no matter how hard I try, at best I will be a regional head or a VP, not an MD or a CEO. It’s not discrimination. Its HQ is not in Singapore. And why would I settle as regional head of an international chain, or a VP, if I can head the company myself?

So you envisioned being a CEO?
I know I would be because the owner empowered the division to me when I turned around the business. The chairman, too, shared he wanted to focus on the shipping company and needed someone to head the hotel division.

Why not his son, Kevin?
Kevin has always wanted to be the owner, he wants to invest. Kevin worked in a bank for a long time and he never was into operations. He always says we’re a tac (tactical) team: Jay, I will go and enquire about a hotel, you handle the management. We work very well together.

What lessons do you learn from this, as to why some Asian brands succeed and others don’t?
I have the hotel knowledge but I really need someone like Kevin who has the legal and finance knowledge. And this is a strong good match. Without Kevin, you can indeed hire a finance and legal guy or set up the department, but it is different because it is his, he can make decisions, and he is young, aggressive and takes calculated risks.

Why do some owners choose new chains such as Furama over the internationals?
Various factors. An individual Thai owner, for example, may insist that the international chain employ his financial controller – and this could be his daughter or brother – and that’s something the international chain usually will not accept.

The international chains on the other hand may insist that the owners spend X million dollars to bring the property up to their brand standards, but the management contract starts right now. They also subject projections to 10,000 items that any bank which wants to lend owners money to build or renovate will lack the confidence to when they see there is no real guarantee with all the subject-tos.

I’m just speaking in very general terms to demonstrate that there has to be flexibility and a real win-win. We at Furama, too, have brand standards but, instead of subjecting projections to 10,000 items, we only subject them to maybe eight to 10 items. We promise owners, even if they don’t ask, that within a certain kilometre radius, we will not manage another hotel, regardless of the brand, and we have three  (Furama, FuramaXclusive and FX). We don’t ever want to put ourselves in a situation when the owner turns to us and say, would you, as an owner yourself, do that to your hotel?

This article was first published in TTG Asia, January13  issue, on page 7. To read more, please view our digital edition or click here to subscribe

Undergoing metamorphosis

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Whether it’s discovering new revenue streams or warding off existing threats, travel companies across Asia are evolving. Take a leaf from success stories told to TTG Asia.

butterfly

wee-hee-ling
Wee Hee Ling
CEO
CTC Travel

Offline buying online

WHO CTC Travel, a Singapore-based travel company providing leisure and corporate services, well known for its outbound packages.

WHAT Last month, it announced that it had acquired an 80 per cent stake in Singapore-based MISA Travel, whose strength lies in online travel ticketing services. MISA’s various online ticketing channels will now come under CTC, including airfares.com.sg, hotels.com.sg, cruises.com.sg, getaways.com.sg, resorts.com.sg, landtours.com.sg and rails.com.sg.

The two companies will retain their separate brand identities, although there will 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 numerous websites, which might be enhanced with live-booking capabilities at a later stage.

WHY With technological know-how provided by MISA, CTC will now be able to tap the burgeoning online booking space, reaching out to new markets.

“MISA Travel’s online portals stand to offer instant access, affordable options for travel products which will provide an opportunity to manage distressed air tickets and hotel inventory for all travellers”, said CEO Wee Hee Ling. The merger marks the beginning of CTC’s three-year plan, which includes expanding its corporate travel services such as MICE and inbound tours.

michael-lee
Michael Lee
Director
Luxury Tours & Travel

B2C + B2B 

WHO Luxury Tours & Travel, a Singapore-based tour operator that provides a range of services from hotel reservations to seat-in coach tours.

WHAT It launched the Singapore Tripper Pass last November, a two- or three-day pass that includes entrance to 18 attractions in Singapore, while also acting as a cashcard for public transport.

Luxury is also signing white label agreements with travel companies across Asia, allowing their products to be featured on its website. A revamped site will be unveiled this year.

In addition, the company is in the process of closing its tour desks in Singapore and migrating all its products online.

WHY Director Michael Lee explained that competition was intensifying among offline and online players in Singapore, and profit margins were shrinking. Alternative sources of revenue were needed, he added.

“Travel companies that work with us through our white label agreements will have an additional means of revenue while we earn commission. Conversely, the Singapore Tripper Pass will enable us to reach out directly to consumers without alienating our existing business partners,” Lee said.

juliana-gan
Juliana Gan
General manager, outbound travel
Dynasty Travel International

Moving upmarket

WHO Dynasty Travel International, a Singapore-based travel company that sells mainly outbound tours.

WHAT In 2010, it launched the Royale Dynasty brand and opened a Royale Dynasty retail outlet at Marina Bay Sands, targeting high net worth clients. The new brand caters to Singaporeans willing to spend more on top-tier experiences, as well as inbound travellers keen on local or regional sightseeing trips. Services include private jet arrangements, personal tour guides and a travel concierge who can draw up customised itineraries.

WHY “An increasing number of affluent travellers, both in Singapore and internationally,” said Juliana Gan, general manager of outbound travel. The two integrated resorts offer a rich source of clients for Royale Dynasty. Singapore’s upcoming International Cruise Terminal will also provide opportunities to service luxury cruise clients.

The company has seen a 20 per cent increase in luxury customers since 2010.

pham-ha
Pham Ha
CEO
Luxury Travel

Reaching Down Under

WHO Headquartered in Vietnam, Luxury Travel is a tour operator focusing on high-end travellers. Top markets are Australia, the US and Singapore.

WHAT It entered into a joint-venture with Australia-based The Cape Club to form Cape Lux Travels in October 2011. The marriage brings together Luxury’s expertise in Indochina with The Cape Club’s client base. The top five destinations sold by The Cape Club are Vietnam, Laos, Cambodia, Thailand and Myanmar.

Cape Lux Travels will introduce new fully-escorted tours to wealthy clients from Australia initially, and later to those from the US, UK and Europe. Vietnam, Cambodia and Laos are its first three destinations.

WHY To widen Luxury’s reach in the Australian market, one of its top markets. “The Cape Club understands Australian luxury travellers and creates beautiful niche experiences for guests,” said CEO Pham Ha. The joint venture is expected to attract 500 to 700 clients in the first year of operations.

helen-xu
Helen Xu
Managing director, sales & distribution
Panorama Tours Indonesia

Beefing up FIT retail

WHO Panorama Tours Indonesia, an outbound travel company  which handles the corporate, MICE and leisure markets.

WHAT With already a division dedicated to groups, it developed a strategy to target the FIT market beginning last year, creating free-and-easy packages. It has also opened one retail outlet targeting young travellers, with 10 more on the way. Products can be bought a la carte or as special deals. Examples include backpacker packages and special interest packages for those who travel to watch soccer games. Destinations sold are mostly shorthaul, such as Singapore, Malaysia and Hong Kong.

WHY Managing director, sales & distribution, Helen Xu, said: “The FIT outbound market in Indonesia is huge, but many travel companies are not interested in seriously developing it. Most of them concentrate on developing group tour programmes. We see this as an opportunity.” She added that last year, retail FIT business increased by 70 per cent compared to 2010.

debjit-dutta
Debjit Dutta
Director & CEO
Impression Tourism Services (India)

Re-invent a destination

WHO Impression Tourism Services (India), a Kolkata-based B2B inbound travel company.

WHAT Developed a range of products and created a new branding for West Bengal, its primary destination. Mountains to Mangroves – A Journey of 1,000 Kilometres has helped to highlight the diversity within the Indian state, from the Himalayas to the Bay of Bengal. The auspicious Bengal owl was also used as a mascot for marketing the products and destination.

WHY Director and CEO Debjit Dutta said the company faced price competition for oft-trodden itineraries, while product development for West Bengal had been stagnant in 10 years. “Instead of taking a beating from OTAs, we decided to re-invent the destination and create several products.” Impression is now readily identified with the destination. Once a small tour operator, it currently serves 900 B2B clients.

manei-gursahani
Manoj Gursahani
Chairman
Gursahani group

Identify gaps online

WHO Gursahani group, whose diversified interests range from technology to healthcare. Its travel division Travelmartindia is said to be India’s first e-commerce travel portal. Travelmartindia is supported by an offline arm, offering airline tickets, hotels, leisure packages and MICE arrangements.

WHAT Gursahani group entered the group-buy deal space last year with vamoose.in, which is currently being integrated into Travelmartindia’s website.

It also launched myairporttransfers.in last year, offering chauffeur-driven car rental services for airport and railway station transfers in all major cities in India. This operates as both a B2B and B2C model.

WHY The new ventures were in response to “dynamic changes in the marketplace” as well as “to cater to specific niches and address existing gaps”, said chairman Manoj Gursahani.

jo-jo-chan
Jo Jo Chan
Director and general manager
Wing On Travel

Harnessing technology

WHO Hong Kong’s Wing On Travel is known for its premium outbound travel services. Chinese OTA Ctrip bought a majority stake in Wing On Travel’s travel service segment in 2010.

WHAT Last August, it rolled out iWingon.com, an online hotel booking portal offering 17,000 hotels in 500 Chinese cities. Customers pay only upon check-in and no bank charges are incurred.

In November, the My Group concept was launched, allowing private groups (minimum 10 pax) to book Wing On’s signature group tour itineraries, based on standard fares. Bigger groups have more discounts.

WHY “With Ctrip’s strong back-up, we wanted to expand our business and be the market leader. Ultimately, the group wants to become a leader in Asia through product innovation and value-added services,” said director and general manager Jo Jo Chan.

tan-sin-chong
Tan Sin Chong
Managing director
Reliance Travel

Go the franchise way

WHO Reliance Travel, a Malaysia-based outbound travel company.

WHAT Boosting business through franchising. While initial franchised outlets were concentrated in the city of Kuala Lumpur, they have spread out to the suburbs. Last August,  Reliance opened its 15th franchise, some 30km away from the city.

WHY Said executive director Raymond Lee: “(The franchised outlets) increase our reach and brand presence, and collectively portray a strong brand visibility for Reliance in most key urban areas with high population bases.”

Additional income is also generated. Franchised outlets currently contribute 40 per cent of Reliance’s total sales compared to 20 per cent three to five years ago, Lee added. The company has plans to expand its franchise network to other big cities over the next two years.

vincent-liu
Vincent Liu 
CEO
Star Travel Corp

Cutting out the middle

WHO Star Travel Corp, a Taiwanese outbound travel company that counts Japan as its bestselling destination.

WHAT Tackling cost increases by eliminating the middle man. Taiwanese travel companies usually rely on local contacts in Japan to book hotels and on-the-ground services, “so nobody here knows what the real price is”, said CEO Vincent Liu.

Last year, Star Travel decided to deal directly with Japanese suppliers. With pre-paid bookings, the company was also able to negotiate lower prices.

WHY The March 11 earthquake and tsunami resulted in Japanese companies repatriating funds from overseas, forcing the Japanese yen to strengthen. What was once Star Travel’s most profitable business sector (outbound to Japan) was under threat, as the Japanese yen rose 20 per cent against the NT dollar. Going direct provided an effective hedge.

Additional reporting from Sirima Eamtako, Linda Haden, Mimi Hudoyo, Anand and Madhura Katti, Prudence Lui, Glenn Smith, N. Nithiyananthan and Shekhar Niyogi

This article was first published in TTG Asia, January 13  issue, on page 2. To read more, please view our digital edition or click here to subscribe.  

Myanmar’s tourism ministry signals change

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A FAR-SIGHTED new government in Myanmar has revealed that it is studying the implementation of several tourist-friendly changes in the areas of hotel development, air access and visas.

Policies are in place to develop infrastructure in six regions including Yangon, Bagan, Inle and Mandalay.

U Htay Aung, deputy minister, Ministry of Hotels and Tourism, told the Daily that the country’s land allocation and leasing policies are being relooked, including extending the duration of leases from two to at least five years.

He said: “There are 25 foreign investment-backed hotels here, and we may see a deluge if some of the policy changes take effect. We now charge US$200,000 or a percentage of gross revenue as a fee, whichever is higher. We are working on a formula that will be attractive to new overseas investors.”

According to U Aung Zaw Win, director general, Ministry of Hotels and Tourism, a target to build 24,000 guestrooms in the budget, two- and three-star categories over the next few years has been set.

Illustrating the destination’s dire need for rooms, he said the country’s 739 hotels were all booked out till March.

Aside from infrastructure, the Daily has also learned that a proposal to scrap tax on all incoming flights has been submitted to the government.

• Read more in the ATF Daily