AT the rate China is growing for Australia, the country’s tourism vision 2020 of boosting Chinese arrivals to 876,000, and their travel spend to A$7 billion (US$6.97 billion) to A$9 billion is turning out to be an easy target.

Saying the targets are “more than achievable”, Johnny Nee, Tourism Australia’s regional general manager, North Asia, & chief representative China, explained China already topped the charts in terms of spending last year, even though it was number four in terms of number of arrivals. And by September, China had risen to the second largest market for Australia, after New Zealand, elbowing out traditional markets the UK, US and Japan.

Nee told TTG Asia e-Daily: “I believe more than 900,000 Chinese will visit Australia by 2020 because, by the end of 2011, I expect more than 500,000 will already have visited.”

Nee said the restructuring of the Hong Kong and Greater China office had been effective in helping Tourism Australia focus on the right strategy to tap China, building Aussie specialists among Chinese travel consultants and now communicating directly to consumers to further raise awareness of Australia. As well, more new airlinks and gateways, such as Guangzhou, were tied up.

But Nee said it was a misnomer to see China as an easy target. “Competition is strong, so our focus is also on making the industry here understand the needs of China market. We take care of the demand side, they have to come up with the right supply and innovative ideas.”

– Full report in the next issue of TTGmice

FORMER Hilton International and Accor Asia-Pacific chiefs Koos Klein and Ray Stone are bringing an Asian vision to Ayers Rock Resort, Australia’s largest integrated resort comprising five hotels.

A new direction includes a strong Asian marketing focus for the first time, with the resort tying up with Accor to open new markets for it and boost domestic leisure and conference demand. The partnership is designed to tap on Accor’s loyalty programme and network in Australia – over 160 hotels with this agreement – aside its worldwide sales and distribution network.

Already, Ayers Rock Resort has made a breakthrough with the China market with its first Chinese charter flight arriving in January. Stone has also negotiated for the resort to be included in a number of new Australian tour programmes being sold in China next year.

The charter is operated by Guangzhou-based BCTS using a Qantas Airways aircraft. The package, primarily a tour to the Northern Territory, is being marketed throughout China and Hong Kong through the travel trade. The group will be in Uluru and spending Chinese New Year at the resort from January 22 to 24.

Stone, in Sydney, told TTG Asia e-Daily: “The Asian market, particularly China, forms an extremely low percentage of our business at present. But this charter, along with a new Chinese language website, some social media activity and various promotions with a number of Chinese tour operators, is the start of a serious programme to develop the market.

“I expect the China market to be on a level with the UK, Japan and North America as a major source of business in three years.”

Stone is executive general manager of Voyages Indigenous Tourism Australia, which operates the resort. Klein is the managing director.

“Since the Indigenous Land Corporation purchased Ayers Rock Resort earlier this year we have been looking at a comprehensive range of measures to rejuvenate what is one of Australia’s most important tourism assets,” said Klein.

The five hotels, Sails in the Desert, Desert Gardens Hotel, Outback Pioneer & Lodge, Emu Walk Apartments and Lost Camel Hotel, will undergo extensive refurbishments. A new Conference & Exhibition Centre will open in August 2012. Another new addition will be a luxury under-the-stars dining experience, Tali Wiru.

– Full report in the next issue of TTGmice

AFTER a tumultuous 2011, Japan is looking forward to welcoming the highest number of foreign cruise ship calls on record in 2012.

International cruise ships are expected to make 350 calls to Japan in 2012, compared to 338 in 2010, and 185 this year, according to Japan National Tourism Organisation executive director Singapore office, Motonari Adachi.

This year, a total of 334 calls were expected. However, after the March earthquake and subsequent tsunami, a large portion of these never materialised.

Dario Rustico, vice president sales & marketing Pacific Asia Operations at Costa Crociere, said: “2011 was an ‘exceptional’ year for us, with the various geopolitical, financial and natural disasters around the world. In Japan, in particular, we had to cancel our itineraries from May to August because of the earthquake and tsunami.”

He added: “The overall profitability of our company was not affected though, as other areas such as South America and Dubai picked up the slack.”

Adachi said the record number of international cruise liners visiting Japan next year could be accredited to the return of the biggest players in the region, including Royal Caribbean and Cunard. “Royal Caribbean alone is purportedly making 100 calls to Japan next year,” he said.

Princess Cruises, MSC Cruises and Disney Cruises are also rumoured to be extending their upcoming itineraries to encompass Japan, said Yoshi Ohkuma, director of marketing-cruise division, Japan Travel Bureau.

Meanwhile, a number of ports in Japan are using tax incentives – on a local rather than on a federal scale – to lure foreign ships to the country’s shores.

Osaka, one of the main ports capable of handling larger cruise ships, introduced port entry fee exemptions in April, alongside discounts on wharf charges. In addition, the province’s port authority is currently in discussions with the local government to offer international cruise operators even more incentives.

CRUISE stakeholders are pouring their resources into education and training, saying this is what Asia needs in order for the industry to take off.

Asia Cruise Association (ACA) chairman Rama Rebbapragada said the body had “identified cruise training as one of its cornerstone activities”, launching its first training programme for travel consultants at the 24th International Travel Expo in Hong Kong last June.

ACA has since worked with Seatrade and the China Cruise & Yacht Industry Association to conduct a number of training sessions over the past year, and is also partnering UBM to do the same at this year’s Cruise Shipping Asia.

“It is through training programmes that we can enhance cruise product knowledge within our distribution network and broaden our outreach in this market,” said Rebbapragada, adding that ACA had trained more than 400 travel consultants so far, and was working towards a goal of training “thousands every year”.

Silversea Cruises senior vice president, UK, Europe & Asia-Pacific, Steve Odell, said besides supporting ACA’s work, it would also launch its own online academy in Asia by next year, in addition to the training seminars, ship showcases and fam trips it already invests in. The training would also incorporate an incentive component based on booking results.

Other cruise heavyweights which already have their own online institutions in the region include Costa Cruises—which has separate B2B online training portals for Japanese and South Korean travel consultants, and Holland America Line (HAL)—whose online academy, which conducts courses in English, has seen about 13,000 graduates to date. HAL’s high-end sister brand, Seabourn, will also be rolling out an online academy over the next few months.

According to Richard Meadows, executive vice president of marketing, sales & guest programs, HAL and president, Seabourn, travel consultants who have undergone the training curriculum will be more effective in terms of their sales pitch and identifying target customers.

“We have to do a better job of helping the travel trade to understand the USPs of both our brands. It is very difficult for a travel consultant to discover for himself what sets apart the different product offerings without proper training,” he explained.

Besides the various training programmes on offer, Asia’s cruise ecosystem has also received a boost, with cruise terminal operators officially launching the seven-member Asia Cruise Terminal Association earlier this week, creating a platform for sharing of best practices and training.

Separately, the Singapore Cruise Centre is partnering the Institute of Technical Education to develop Singapore’s first Maritime Passenger Service course to build a healthy pipeline of human resource. An MoU will be signed today, with the curriculum commencing next April.

Additional reporting from Brian Higgs

THE TOURISM Council of Thailand (TCT) will be lobbying for flood relief measures to help Thai tourism-related operators affected by floods in the central provinces and parts of Bangkok.

TCT president Piyaman Techapaiboon said that since the flooding had caused widespread damage to tourism as a whole, including establishments and operations in unaffected regions, the aid should not only be limited to areas affected by the floods.

The council is calling for a 500 million baht (US$16.1 million) funding to restore establishments affected by the floods, as well as special loan schemes and a relaxation in paying off existing debts for operators of tourism-related establishments and operations.

For tourism-related operators and establishments directly affected by the flood, it will broker for reduction in payments for electricity consumption and social security fund during and two months post-floods. It will also urge the government to help shoulder wages for staff during the flood period.

According to Piyaman, the TCT estimates the floods to have caused Thailand one million foreign arrivals and 50 billion baht in revenue, bringing the figures down to 18.5 million tourists and 700 billion baht in earnings.

Data by the Department of Tourism, Ministry of Tourism and Sports, showed that in the first 10 months of this year, Thailand recorded 15.79 million foreign arrivals, up 25.01 per cent year-on-year.

The TCT assessed that visitor numbers in November would likely drop by 30 per cent year-on-year due to the decline in bookings from China and Russia. The situation is expected to improve in December, with visitor numbers expected to fall by just 10 per cent year-on-year.

PULLMAN Jakarta Central Park (PJCP), the second Pullman property in Indonesia after Bali, officially opened yesterday.

Initially operating with 212 of its total 317 rooms and with a ballroom that can fit 5,000, the hotel is the first upscale property in the West Jakarta area. The hotel is attached to the upmarket Central Park Mall and the offices and leisure entertainment of the Podomoro City Super Block.

Accor vice president Malaysia, Indonesia, Singapore, Gerard Guillouet, said: “The opening of the PJCP is very important for us, as the Pullman brand is at the core of our upscale portfolio and the fastest growing upscale brand in Asia-Pacific.”

The hotel is targeting the business traveller, MICE and family markets, with 35 per cent of this expected from overseas.

PJCP general manager, Fabrice Mini, said: “Accor Asia Pacific Business Traveller Research 2011 surveyed more than 10,000 respondents who made business trips in the first semester of 2011.

“Jakarta and Bali are the two Indonesian destinations mostly visited by Asia-Pacific business travellers, with 73 per cent and 32 per cent of respondents having visited for business. Meanwhile, almost three quarters of domestic business travel was to Jakarta.”

The hotel, which has a contemporary, urban art-style design, has Collage, an all-day restaurant, Bunk, a two-storey lounge and café, swimming pool and sunbathe terrace, Fit & Spa Lounge and roof-top Sky Terrace Garden.

Apart from the ballroom, which can be divided into two, there are six other meeting and board rooms.

The hotel’s opening rate starts from 888,140 rupiah (US$98.20) and is valid until December 30.

THE FIRST Global Tourism Mart India, which aims to unite the diverse Indian travel trade under one event, will be held in either New Delhi or Hyderabad on December 12 next year, according to India tourism minister Subodh Kant Sahai.

Concurrently, a conference of about 40 tourism ministers, will also be held at the mart.

P. P. Khanna, director of Delhi-based Diplomatic Travel Point, said: “We need to have this impetus from the ministry for a world-class tourism event so that serious buyers are able to focus on India at large and not just a few regional and popular destination routes, as what is happening now.”

Ashwini Gupta, managing partner of Amritsar-based Dove Travels, said: “When we go as hosted buyers to international travel marts, we are often asked what event in India would encapsulate all buying options and present the largest cross-section of products, and we are at a loss, because there was no definitive trade show like that until now.

“This event, if organised well and targeted at the right buyer community, will be able to showcase Indian tourism very effectively and could help India achieve its target of 10 million inbound tourist arrivals by 2016.”

Sahai previously announced the event, which is sponsored by the Ministry of Tourism, at PATA mart in Delhi. Currently, some large shows like SATTE and the Great Indian Travel Bazaar are organised by tour operator associations or by the state tourism boards.

SPANISH charter airlines are cashing in on a lack of regional aircraft to meet the heavy seasonal demand of Muslim pilgrims wanting to fly to the holy cites of Saudi Arabia from eastern Asia.

One of the biggest is Orbest, part of the Orizonia travel group, which is scheduled to carry about 65,000 passengers out of Indonesia alone in the last quarter of the year. Last year, the company handled 14,000 passengers.

“It’s proving to be a good business, and one which doesn’t go away,” said a spokeswoman for the Palma-based group, formerly known as Iberworld.

The routes started when the Indonesian national carrier Garuda realised it did not have enough aircraft capacity to handle passengers travelling to Saudi Arabia between October and December.

Conveniently for Spanish airlines, “those dates coincide with the low season in the European holiday market,” said the spokeswoman.

The tie-up with Garuda gives Orbest access to Indonesia, the country with the world’s biggest Muslim population.

This year, the company has scheduled 217 flights with two 388-seat Airbus A330 aircraft flying out of Adi Sumarmo in central Java and Pandang in Sumatra. Their destination is Jeddah, the second largest city in Saudi Arabia.

At least two other Spanish airlines, Pullmantur Air and Mint Airways, are involved in Muslim pilgrimage flights from Asia, a market estimated to have been worth around 40 million euros (US$53.8 million) in 2010.

Last year, Pullmantur was the leader, handling some 25,000 Muslim pilgrims from Indonesia and Bangladesh, while Mint carried around 5,000 from India.

It is estimated that up to five million pilgrims travel to Mecca each year.

JEJU province needs more MICE-friendly hotels and venues and more direct international flight access, as well as raise MICE practitioner standards if it wants to become a stronger MICE destination, said the island’s industry players.

Jeju Tourism Organisation president, Yang Young-Keun, said the resort island has 12,000 rooms from tourist hotels, motels and inns, and 35,000 rooms from bed-and-breakfast establishments.

“With Jeju stepping up destination promotions and welcoming an increasing number of visitors, more hotel rooms are needed. And Jeju’s biggest problem today is the lack of five-star hotels, especially those of international hotel brands. This shortage of five-star hotel rooms led room rates to be very high, at US$300 per night.”

Yang pointed at that Jeju’s main convention centre, ICC Jeju, is located in Seogwipo city, which makes Jeju city lacking a dedicated MICE facility. Conventions in Jeju city are supported by hotels with function rooms.

“Jeju city needs at least 15,000 hotel rooms and a convention centre that can accommodate at least 10,000 delegates. The city needs also a 1,000-room hotel that can cater to mega MICE groups,” said Yang.

Guk Moon-Gyeong, producer, MICE, of Jeju-based PCO WinPlusWin, agreed, saying that the island’s existing infrastructure cannot support mega events. “Most of our clients are drawn to Seoul and Busan, which have facilities and logistics support for large events, as well as supporting appeal such as shopping malls, restaurants and entertainment.”

Guk also identified direct international air access as a stumbling block for Jeju’s MICE ambition.

Jang Sung-woo, director and professor at Jeju National University’s Tourism & Leisure Education Centre, also said Jeju’s shortage of MICE talent was also an obstacle in the destination’s quest to become a world-class MICE city.

He said: “There are 150 PCOs in Jeju this year, which is a poor number, and there is a lack of experienced MICE practitioners to staff these PCOs. Fortunately, the Korean government recognises this weakness and has invested US$2 million per year over the last two to three years on the university’s MICE programme. We have 600 students to date.”

Despite these limitations, Jeju has been hosting some large MICE groups, including a 10,000-pax Baozhen Group incentive and 8,000-pax Amway Korea incentive. It will also welcome the 10,000-pax World Conservation Congress next September.

FACED with fierce competition for Asian visitors from cities such as Singapore, Macau and Melbourne, Sydney is fielding The Star, an A$870 million (US$876 million) makeover of Star City – New South Wales’ only casino – into a leisure and MICE destination which happens to have a casino.

The redevelopment is now 80 per cent completed and work is well underway for the “severely missing” jigsaw, said The Star’s managing director, Sid Vaikunta, referring to a A$100 million Events Centre that aims to grab MICE with its 2,200 square metre column-free space that can seat 3,000 pax and 4,000 pax standing when it is completed in early 2013. The centre complements its existing 2,000-seat Lyric Theatre.

The Star, which reopened in September, has reoriented itself to take in views of Sydney Harbour, features a new five-star boutique hotel, The Darling, a slew of signature restaurants and bars including David Chang’s Momofuku Seiobo, a 16-room spa and a new retail collection of leading brands.

When asked by TTG Asia e-Daily if competition from the Marina Bay Sands in Singapore motivated the redevelopment, Vaikunta said: “The Sands model happened 20 years before Marina Bay Sands opened. It started on the Las Vegas strip with The Mirage in 1989 opening with eight new restaurants, beautiful spas, gaming and so on. In Marina Bay Sands, we see it in its largest form as a singular destination in Singapore and what we’re doing is not dissimilar – we’re just doing it in a way that it’s Sydney and it fits our location.”

He said The Star would work on “a city approach”, with Business Events Sydney and Tourism Australia to secure more MICE, adding while there was pretty healthy demand from the domestic market, the real engine of growth was international.

– Full report in the next issue of TTGmice