ASIA’s popularity as a cruise destination is on the rise, with a number of international cruise liners scheduled to embark on their maiden Asian voyages in 2012, in addition to existing ships calling at new ports in the region.

Royal Caribbean International’s regional capacity will more than double when the 3,840-pax Voyager of the Seas joins Legend of the Seas in Asia next year.

Voyager of the Seas, homeported at Singapore’s new International Cruise Terminal, will kickstart a series of South-east Asian cruises in May. She will then move to Shanghai and Tianjin and offer North Asian cruises from June-October. Legend of the Seas, meanwhile, will feature new ports-of-call such as Ishigaki and Toyama for its 2012 summer season.

Also debuting in Asia is Royal Caribbean’s sister premium brand Celebrity Cruises. The 2,034-pax (pending refurbishment) Celebrity Millennium’s inaugural season will feature a series of 14-night open-jaw cruises between Singapore and Hong Kong from end-2012.

Costa Cruises’ capacity within Asia will also increase by 40 per cent with the deployment of its 2,394-pax Costa Victoria to replace the 1,680-pax Costa Classica. Costa Victoria will make its way to Singapore in early May, before heading north on a 17-night cruise, stopping in Thailand, Vietnam, Hong Kong and China.

Meanwhile, sister brand AIDA Cruises will bring the 2500-pax AIDAdiva into Asia this coming season (2011/12), a huge jump in capacity over the 1,300-pax AIDAaura and 1,200-pax AIDAcara used in 2010/2011 and 2009/2010, respectively. AIDAdiva will conduct turnarounds in Singapore as well as Bangkok, whereas in previous seasons the turnaround was only in Bangkok.

Richard Meadows, executive vice president of marketing, sales & guest programs, Holland America Line and president, Seabourn, said: “Being here (at the inaugural Cruise Shipping Asia) is an indication that we understand the value and importance of the Asian market. We are extremely optimistic that this sector will continue to evolve and grow.”

Holland America Line and Seabourn will see an increase in Asian activity next year. Holland America Line’s three ships deployed in Asia – Volendam, Amsterdam and Rotterdam – will have six unique itineraries and 10 departures, up from three departures this year.

Seabourn’s deployment of Seabourn Pride, Seabourn Legend, and Seabourn Odyssey will see an expansion in the range of destinations covered. Itineraries to Vietnam/Thailand will now have Cambodia added on, while Indonesian programmes will go beyond Bali to Sumba, Komodo, Sulawesi, Flores and Timor.

Additional reporting from Brian Higgs and Linda Hade

THE JEJU Tourism Organisation (JTO) is eyeing the youth traveller segment in its goal to grow international arrivals, with plans to hold a lengthy K-Pop music and dance festival on the resort island in 2012.

Speaking to TTG Asia e-Daily, JTO president, Yang Young-Kuen, said the festival would run for at least 15 days up to a month, and feature several South Korean performers. While the key target market would be young people in Europe, the event would also be promoted among Asian youth.

Yang said: “Korean pop culture has a strong following in Europe and Asia, hence we decided to create this festival. We also intend to market cultural tours around Jeju to allow the youth to see and learn about the destination and its people while they are here.”

Yang explained that it was more beneficial to target young travellers, as the market offered “far more opportunities for repeat visits than the silver market (senior citizens)” and they are opinion leaders who would “lead others to visit a destination they like”.

The festival is one of the items on JTO’s action plan to reach out to youth travellers. It also includes harnessing online platforms like YouTube for destination marketing.

DESPITE the flooding in Thailand’s central provinces and parts of Bangkok, many upcoming tourism events and activities are still scheduled for other parts of the country.

Tourism Authority of Thailand (TAT) governor Suraphon Svetasreni said Chiang Mai was confirmed for a 6,000-pax incentive from Amway South Korea from November 15 to December 13, as well as for a preparation camp for 20 Miss Belgium finalists from November 17 to 26.

An Indian couple will also be celebrating their wedding in Hua Hin from November 19-23, with 250 guests to be flown in from India.

Suraphon said TAT was making sure that it was sending the message across that most of Thailand is unaffected by flooding.

TAT’s 25 international offices are also conducting various activities in maintaining the country’s tourism markets. For example, from China, it has brokered charter flights from Xian to Phuket every six days, from Tai Yuan and Zheng Zhao twice a week each to Bangkok, and is cooperating with China Eastern Airlines to expand the Beijing-Kunming-Phuket route.

From January to September, Thailand’s main gateway Suvarnabhumi Airport recorded 14.4 million foreign visitors, up 27 per cent year on year. Suvarnabhumi recorded a 6.7 per cent year-on-year growth in October arrivals and a 27.25 per cent year-on-year drop between November 1 and 12.

By Sirima Eamtako

A NEW international cruise terminal in South Korea’s Yeosu City, due to be ready by next March, is expected to give the destination an edge in courting foreign visitors.

Located in Yeosu New Port and in the heart of the World Expo 2012 site, the EXPO Site Terminal will be divided into three separate sections.

The International Passenger Terminal and International Ferry Terminal, contributing a combined 3,274m2 of floor space, will be capable of handling up to 80,000 tonnes and 15,000 tonnes of ship hardware, respectively.

The Costa Ferry Terminal, meanwhile, will be able to cater to three to four ships of 300-2,500 tonnes each.

According to Kang Seung-won, director of Tourism, Yeosu City, the EXPO Site Terminal has already attracted attention from several cruise operators.

“Although Yeosu is a maritime city, with many islands (317 islands) and a national marine park, its cruise industry is not yet well-developed,” he said.

“The good news is, Star Cruises and Royal Caribbean, as well as five cruise companies in China and Japan, have shown interest in making Yeosu one of the ports of call in their itineraries next year.”

“We expect international arrivals to grow substantially once cruises start calling at Yeosu,” Kang added.

During the Expo season from May 12 to August 12 next year, the new cruise terminal is expected to handle 50,000 arrivals from China, 10,000 from Japan and the rest of Asia, and 10,000 from the US and Europe.

Kang noted that these inbound cruise arrivals would be able to avail of convenient connections to the rest of the country, such as the KTX rail transportation system. The KTX system links the cruise terminal to Seoul in approximately three hours, while a ride to Yeosu Airport takes 30 minutes.

To raise awareness of Yeosu as a potential destination for cruises, Yeosu City tourism representatives, in partnership with Korea Tourism Organization, are participating in the three-day Cruise Shipping Asia trade show and conference at Marina Bay Sands, Singapore.

Additional reporting from Brian Higgs

WESTIN Hotels & Resorts will open three new hotels in the Chinese cities of Ningbo, Xian and Xiamen over the next six months, according to its parent company Starwood Hotels & Resorts Worldwide.

Earlier this year, Westin already opened three hotels in the mainland, including its first hotel in Nanjing and Wuhan and its second hotel in Guangzhou. With the six new hotels, Westin will have 16 hotels in China by April 2012 and looks to double its footprint in the region by 2014.

“Westin is rapidly branching out across China, fuelled by growing enthusiasm among owners and developers who are eager to introduce the popular global brand to some of the country’s fastest growing cities,” said Brian Povinelli, global brand leader for Westin Hotels & Resorts.

“Our emphasis on well-being is resonating with travelers across China and around the world. More than 90 per cent of Westin hotels currently in development will open outside the United States.”

The three new hotel openings follow the Starwood’s relocation of its global headquarters to Shanghai this year.

The Westin Ningbo will have 312 rooms, six restaurants and bars, a Heavenly Spa and more than 14,000 square feet of meeting space.

The Westin Xian will feature 326 rooms, a Heavenly Spa, an indoor swimming pool, 5,705 square feet of state-of-the-art meeting facilities and an art and artefact museum below the hotel.

The Westin Xiamen, part of a mixed use complex, will offer 304 rooms, three restaurants, a Heavenly Spa, indoor pool and more than 14,000 square feet of meeting space.

AIRASIA Indonesia (AAI) is moving all its international operations to Terminal 3 of Jakarta’s Soekarno-Hatta International Airport starting today.

Terminal 3 has served as AAI’s main base of domestic operations since April 15, 2009. With the move, the airline is now consolidating its Jakarta hub operations under one roof by serving both domestic and international flights from Terminal 3.

AAI president director Dharmadi said: “Terminal 3 is, without question, a public facility the nation can be truly proud of. The sophisticated terminal is a reflection of Angkasa Pura II’s commitment to creating a world-class airport, and will set a new environmental benchmark for airport buildings. We are particularly honoured to be the first airline to fly internationally from Terminal 3.”

He added: “Not only will the move boost operational efficiency, but more importantly, it will also elevate our guests’ travel experience to the highest level of comfort.”

Terminal 3 offers the best in modern design, provides complimentary Wi-Fi and filtered drinking water fountains and has an environmentally-friendly concept. The terminal relies on natural daylight rather than on artificial lighting, which significantly lowers electricity consumption.

AirAsia Indonesia operates a brand new fleet of Airbus A320s, which will consist of 16 aircraft by year-end. Five more planes on order are set to be delivered in 2012.

Next year, the airline aims to transport approximately four million passengers via its Jakarta hub, up about 33 percent from this year’s number that stands at an estimated three million.

“The integration of our operations at Terminal 3 will enable guests to seamlessly transfer between domestic and international flights and vice versa. In addition, our Fly Thru facility enables connections from Jakarta to many exciting destinations such as Melbourne, the Gold Coast, Chengdu, Hangzhou (Shanghai), Bombay, Christchurch, New Delhi, Seoul, Tokyo, Osaka, Taipei, Paris, and London. In the long run, we hope to transform Jakarta into a critical international transit hub,” said Dharmadi.

TOURISM Australia says Qantas Airways’ recent grounding of its fleet has had minimal impact on international inbound traffic at best, and dismisses as “ridiculous” that tourism is “ailing” based on just one month’s performance in September, when arrivals slumped nine per cent.

Managing director Andrew McEvoy, in an interview with TTG Asia e-Daily, said the period prior to the grounding decision, in fact, was more damaging, as it caused a lack of confidence among consumers to fly, whereas the court order to end the dispute and resume flights had brought back “certainty”, which the industry needed. “It’s the one, good result from (the saga),” he said.

Besides, McEvoy pointed out, Qantas only had an 18 per cent share of the international traffic to Australia, with the majority, or 82 per cent, flown by foreign carriers.

McEvoy also lambasted reports that suggested Australia tourism was ailing due to a nine per cent slump in arrivals in September, a month during which, he said, the Rugby World Cup kept the New Zealand market – which contributes some 1.2 million arrivals – at home, and when two key holiday periods for Indonesians and Malaysians did not occur during that period for the first time.

McEvoy acknowledged, however, that there was “a story of two worlds”, essentially a two per cent to three per cent decline in traditional source markets such as the UK, France, Germany and Scandinavia, but contrasting with stellar growth in Asian source markets such as China, India, Singapore and Indonesia.

Setting the record straight, he said international arrivals grew four per cent to 5.9 million in the financial year ending June, and that he was fully confident the figure would be “six million plus” in this financial year.

A lot of resources have now been shifted to Asia. The ratio is now 60:40 towards Asia, compared to 40:60 before.

Asian buyers from Singapore and Indonesia interviewed at Dreamtime 2011, however, said currency appreciation and high rates as a result of Chinese and Indians filling up rooms were having an impact on costs. Many were expecting “average” performance in the months ahead to Australia.

– Full report in upcoming issues of TTG Asia, TTGmice

THERE is great potential for the meetings industry in China to be managed more effectively, according to American Express Meetings & Events director for Japan, Asia-Pacific and Australia, Danielle Puceta.

Speaking to TTG Asia e-Daily at the recently concluded China Business Travel Forum in Shanghai, Puceta said most clients there still view meetings management in an individualised or consolidated manner.

The former is defined as seeking support from travel consultants when help is needed. The latter approach is to ask for support in the area of savings and control, but the adoption rate of such support varies.

Puceta cited a case wherein a client lacked the ability to track meeting spend, supplier base, hotel usage and the number of meetings. She said: “The client implemented a centralised meetings registration system, which required all meetings to be registered, and the result was that they discovered they had underestimated their meeting spend by 40 per cent. They were now able to understand their meetings volumes and types of meetings.”

Another client had two meetings overlapping in timing and attendees. With the help of AMEX, the client was able to book the same venue for both meetings and negotiated US$156,000 in savings on room rates and F&B. They also reduced operating costs by sharing onsite staff.

However, pharmaceutical and technology companies in China seem to moving beyond these approaches and are looking at processes such as pre-travel, best practices, consistency, payment and data collection and analysis.

Said Puceta: “They are using the enterprise approach to meetings or continuously improving their meetings program.”

By Patricia Wee

THREE new homegrown cruise operators are set to launch in Asia over the next 12-18 months, with at least one of them rumoured to be from China.

Speaking to TTG Asia e-Daily on the sidelines of Cruise Shipping Asia 2011, Roberto Giorgi, president of V.Ships, which supplies ship management services to international cruise liners, said the three entities – all of whom are his clients – were choosing to enter the cruise industry to diversify their existing businesses.

“These will be new small players operating in the regional cruise business, with each operating in an almost distinct area,” he said, declining to go into further details.

If all goes according to plan, these new operators would be the next in the lineup of Asian cruise brands, which includes Star Cruises Asia-Pacific—founded in 1993, and India’s AMET Cruises—which started in May this year (TTG Asia e-Daily, May 27).

“Within the last two years, I have seen much more interest in new projects in Asia related to the cruise industry,” said Giorgi. “In particular, there is huge potential for the development of the luxury cruise segment in Asia, in terms of high-end travellers from overseas coming to the region.”

Cruise leaders whom TTG Asia e-Daily spoke to welcomed the news, saying that the influx of Asian cruise brands would help boost the development of the regional cruise industry.

According to Giorgi, the influx of “low-cost operators” might even create a knock-on effect on demand, just like in the UK—where new cruise operators enlarged the market and created more business for established brands such as Cunard and Costa Cruises.

“When you look at the size of the (Asian) cruise market, it’s a beautiful market suited for segmentation,” said Michael Bayley, executive vice president, Royal Caribbean Cruises.

“Customers like choice, so they may choose a national brand first but may later think ‘I want to go to Europe, Alaska or the Caribbean’,” he said. “They can’t do that with a regional or national brand, but they can do it with an international brand. So every brand plays a role in the grand mix of things.”

Additional reporting from Gracia Chiang

CRUISE leaders believe the Asian cruise industry is primed for further growth, but pointed out that there was still a slew of obstacles to overcome, including distribution and operating cost.

“Projections made for the Asian cruise industry several years ago were actually somewhat over-enthusiastic. Growth has been in double digits, but that’s because the market is small. There are still a number of barriers to overcome,” Gianni Onorato, president, Costa Crociere told TTG Asia e-Daily.

“The biggest issue to date is definitely distribution…The trade’s knowledge and experience in selling cruises is lacking, and this has a strong impact on how fast the (cruise) market in Asia develops.”

Michael Bayley, executive vice president, Royal Caribbean Cruises (RCC) agreed there was “a lot of work to do” in the area of distribution, as cruising was still seen as a niche vacation option.

“There’s a lack of knowledge in emerging markets. People believe it’s for old people or that it requires a lot of money,” he said.

Bayley told TTG Asia e-Daily that RCC had invested a disproportionate amount of money in the region, for instance, by setting up five sales and marketing offices in China, Australia and Singapore over the last three to four years.

Operating cost was another issue singled out. Roberto Giorgi, president, V.Ships said Asian currencies were strong, while the region’s newer terminals were charging relatively higher prices.

Bayley added there needed to be a competitive cost structure among ports in the region, explaining that the “multiplier effect of a cruise docking at a port” had to be considered by a destination.

Onorato, too, highlighted that financial performance might not correspond to demand, explaining that Costa Cruises’ experience of operating in the region since 2006 had been what he described as an “investment period”, or “not making money”.

Other factors affecting growth were infrastructure and regulatory constraints, said cruise stakeholders.

Additional reporting by Linda Haden and Brian Higgs