THE growing demand for budget properties in Indonesia has prompted Swiss-Belhotel International to join the bandwagon with its budget Zest Hotel brand.

Swiss-Belhotel International chairman, Gavin Faull, said of the budget brand: “Zest Hotel was developed to be a value-for-money accommodation, which offers a new benchmark of services and facilities for both business and leisure travellers.”

The first property is under construction in Ambon, with Jakarta next on the cards.

Swiss-Belhotel International senior vice president Operations and Development for Indonesia and Malaysia, Emmanuel Guillard, said: “Our target is to operate 30 Zest Hotels within three years.”

Aside from Ambon and Jakarta, Zest Hotel will aim to build in Surabaya, Jogjakarta and Makassar, Guillard said, as the demand for budget accommodation is growing in major and secondary cities. Investors are also showing increasing interest.

“With the current 21 operating hotels and 27 development projects throughout the archipelago, Swiss-Belhotel International aims to boost that figure to 60 hotels (in the three- to five-star categories) within the next three years,” he said.

THE Perak state government is looking to increase international visitors, with the declaration of 2012 as Visit Perak year.

To facilitate this, five clusters have been identified to grow arrivals. “The five clusters are Belum and Lenggong, Taiping, Kuala Kangsar, Ipoh and Pangkor,” said Hamidah Osman, chairman of the state committee responsible for tourism. “The clusters will be developed into three-day, two-night packages.”

Perak’s capital Ipoh, Taiping and Kuala Kangsar are urban centres featuring history and heritage. Pangkor is a popular beach resort, Belum has one of the oldest rainforests in the world, while Lenggong is an archaeologically-rich area.

Perak currently attracts three million tourists a year, mostly domestic.

Chief minister, Dr Zambry Abd. Kadir, said: “We are still working on the target for 2012. However, of the increase in the number of tourists we aim for, we want at least 40 per cent of them to be international visitors.”

In addition to the five clusters, two trails are also being packaged – one on history and heritage, and another on food.

“The food trail is specially targeted at Singaporeans, (the state’s main source of international tourists),” Zambry said.

Singapore-based Citiskies Travel Mart customer service manager, Liyana Ahmad Kamal, said: “Having just visited Belum and Lenggong, I know that such a package is sellable to adventurous travellers. I am not so sure about heritage though. It will be hard for Ipoh to compete with Malacca, which is well established.”

Ipoh-based Syuen Tours Travel & Leisure general manager, May Wong, thinks the food trail will do well. “I already have customers from Singapore who regularly visit Ipoh just to try out the food,” Wong said.

By N. Nithiyananthan

THE completion of the Qinghai Yushu Airport in 2014 is expected to boost international air connections and foreign arrivals to the Chinese province.

Qinghai Tourism Administration director, Wu Dawei, said: “The current lack of international direct flights into Qinghai has limited the growth potential of international arrivals. Entry is only via Shanghai or Beijing, which the average longhaul visitor considers inconvenient. We are hopeful that the larger new airport will attract bigger jets that fly international routes.”

According to Wu, Qinghai attracted mostly special interest international visitors, drawn to the natural and cultural attractions, with the US, Europe, Malaysia, Singapore, South Korea and Japan as the biggest source markets for the segment.

Attractions include Qinghai Lake, Mengda Nature Reserve, Anyemaqen Mountain and Ta’er Monastery, built in 1577.

“We regularly handle small groups from Japan that visit during the flowering season, and bird-watching groups are also common,” Wu said.

“Hotels in Qinghai are all domestic brands, which are fine with the domestic market and niche international segment.

“But to grow international arrivals beyond the nature and culture segments, international hotel brands are needed. Brands such as Shangri-La, Kempinski and InterContinental have expressed intentions to set up properties in Qinghai,” he said.

The Qinghai Tourism Administration has stepped up international marketing efforts, hoping to improve tourism infrastructure.

Apart from participation at international travel marts such as the PATA Travel Mart and IMEX, the bureau is also attending government-led trade shows and its own roadshows in Singapore, South Korea and Malaysia.

ANCIENT cities in the Chinese province of Henan are banking on religious attractions to draw in more Indian travellers, said Henan Tourism Group deputy general manager, Lion Liang.

“India is a relatively new source market, but it has been feeding good business travel numbers to Henan,” Liang said.

Although the Henan Tourism Group did not have exact figures, Liang said 80 per cent of Indian arrivals to China were there for meetings, incentives and trade fairs.

“We can encourage these business travellers to extend their stay in Henan or bring their family by showcasing the many Buddhist temples in Luoyang, Anyang and Kaifeng,” Liang said.

At a Henan tourism presentation in New Delhi during PATA mart in September, the province’s ambassador, Zhang Yan, said the Longmen Grottoes in Luoyang were popular among Indian travellers.

He described the UNESCO World Heritage attraction, home to 100,000 statues of Buddha and his disciples, as an “embodiment of the profound mutual influence of cultures between our two countries”.

The White Horse Temple in Luoyang, the Indian-style Buddhist Hall of which was inaugurated by Indian President Pratibha Patil, is also a key draw for Indian visitors, Zhang said.

To grow leisure arrivals from India, the Henan Tourism Group is partnering with the local government and the China National Tourism Administration on a series of roadshows to India next year to promote religious and history tours.

TAIWAN outbound travel to Europe has seen a nearly 40 per cent increase this year, according to the country’s Ministry of Foreign Affairs.

The ministry attributed the rise to the ease of obtaining visas under the European Union’s Schengen visa-waiver programme for Taiwan passport holders that went into effect on January 11.

Year-on-year comparisons show Taiwan outbound to Europe increasing 39.6 per cent for March to August, with a peak of 57 per cent in July alone.

Grace Chou, director of European sales, Lion Travel, confirmed that Taiwan travel agencies were seeing an increase in outbound traffic to Europe, but was surprised by the figures reported by the ministry.

“Forty per cent is a bit incredible,” said Chou, adding that Lion Travel, in comparison, experienced growth in Taiwan outbound to Europe of 10 to 15 per cent for group tours, and 20 to 25 per cent for FITs.

Chou said she doubted if the numbers could be much higher as there has not been a corresponding increase in flight frequencies to Europe during this period.

According to Zhou, besides the visa-waiver scheme, another reason for the boost in Taiwan outbound to Europe is favorable exchange rates.

“The NT dollar to euro exchange rate had been around 1 to 43 or 44, but has dropped below 1 to 40 at times this year,” she said.

By Glenn Smith

FIREFLY’S decision to shut its Johor Bahru hub offering direct flights to Indonesia’s Bandung and Surabaya, and East Malaysia’s Kuching and Kota Kinabalu, has met with brickbats from the trade.

Initiated in August, Firefly’s Johor Bahru-Bandung services ceased yesterday, while its Johor Bahru-Surabaya flights will end with the last flight on October 28. The flights to Kuching and Kota Kinabalu, which started in May and June respectively (TTG Asia e-Daily, March 28), were stopped earlier on.

Malaysian Association of Tour & Travel Agents Johor chapter chairman and CK Vacation managing director, Kenny Ngi, expressed frustration over Firefly’s move.

“We are very disappointed with Firefly. It is a drastic move at short notice. The airline should have given a better time frame with a grace period,” he said. “Some (travel agents) had spent money printing brochures and advertisements. While we are upset, there is nothing we can do about it.”

“The biggest (negative) impact is to the image of Firefly and to Johor overall. We won’t trust Firefly anymore,” he added.

With regards to forward bookings already secured, Ngi said Firefly had advised agents to apply for a refund or look for alternatives. “I feel sorry for those who went to Java for the Hari Raya break, and are now stuck there unable to return,” he said.

However, a source in the Johor Bahru branch of Reliance Travel, who declined to be named, said the impact of Firefly’s pullout from Johor was not that great. “For flights from Johor Bahru to Kuching and Kota Kinabalu, customers prefer AirAsia,” she explained.

Bandung agents also reacted calmly to Firefly’s pullout, as the airline has not brought much business in its two months of operation there.

Bandung-based Tama Indonesia managing director, Reza Novaldi, pointed out: “In the last two months since its launch, Firefly’s load factor was low. I’m not sure whether many travellers were aware of the service, but clients from Johor still fly AirAsia through Singapore.”

Bandung agents are expecting AirAsia to take up the dropped routes, following its recent cooperative agreement with Firefly’s parent company Malaysia Airlines (MAS) (TTG Asia e-Daily, August 10).

Atalanta Tours Bandung CEO, Ameriawati Atmasubrata, said: “I think the decision has to do with the entry of AirAsia into MAS. If the route between Johor Baru and Bandung is lucrative, AirAsia will take it to increase frequency to Bandung.

“We just need to be patient and wait until MAS and AirAsia finalise their internal consolidation.”

Additional reporting by N. Nithiyananthan

SRI Lanka’s online visa application system for visitors (TTG Asia e-Daily, May 3) will go into operation from beginning of next year.

According to Immigration and Emigration Department controller general, Chulananda Perera, the new Electronic Travel Authorization (ETA) system will enable travellers to obtain online visa approval within 24 hours of submitting an application for short-term stays.

The system will run parallel to the previous visa on arrival (VOA) scheme, contrary to earlier reports that the VOA would be scrapped (TTG Asia e-Daily, May 30).

A US$50 visa-processing fee will be levied on all travellers for short stays of up to 30 days, while those seeking a VOA must pay US$75. The fees vary for extended stays.

Shiromal Cooray, managing director of Jetwing Travels, said: “We have expressed our concern in the past that this could be an added burden to travellers. For example, for a family of five, it would an additional US$250.”

In addition, all passengers transiting through Sri Lanka will need to pay a US$25 processing fee for a visa, compared to the earlier arrangement where neither visas nor fees were required.

THE ASSOCIATION of Thai Travel Agents (ATTA) expects the number of inbound tourists handled by its members to grow by 50 per cent this year, despite concerns over the recent floods in the country, as well as the dismal economic situation in Europe and the US.

According to ATTA president Sisdivachr Cheewarattanaporn, even though members continue to receive forward bookings for the last three months of the year, there have been an increasing number of queries about the floods from key markets such as China and Japan.

“The government should resolve the situation by October, otherwise it would impact the high season,” he said. “They should also send out a message that the flood does not affect major tourist areas.”

Sisdivachr said the burgeoning Asian markets were expected to make up for the possible decline in visitor numbers from Europe and the US.

Between January 1 and September 27 this year, ATTA members handled 2.23 million tourists, a 57.5 per cent jump over the same period last year. The top nine markets for ATTA were from Asia – China, Russia, India, South Korea, Japan, Taiwan, Vietnam, Hong Kong and Indonesia. All registered either double- or triple-digit growth.

The UK came in 10th with a 0.30 per cent increase, while the markets registering declines were Iran, Norway and Germany.

By Sirima Eamtako

THE TOURISM Authority of Thailand (TAT) has reported that most tourism sites in Chiang Mai have been unaffected by recent floods, while floodwaters which submerged the city’s commercial areas are receding (TTG Asia e-Daily, September 29).

According to TAT Chiang Mai office director, Chalermsak Suranant, the floods in the city centre are confined to two areas near the banks of the Ping River, specifically Chang Klang and Chiang Mai-Lampoon Roads.

The famous Chiang Mai Night Bazaar and several hotels are located on Chang Klan Road, which remained submerged up to ankle level this morning, while the TAT Chiang Mai office and some hotels and restaurants are located on Chiang Mai-Lampoon Road.

Chalermsak said hotels and establishments around the night bazaar were operating as per normal, with the exception of roadside stalls. “I am now at the Le Meridien hotel (on Chang Klan Road), which is unaffected by the flood. It’s also business as usual at the Centara Duangtawan hotel, which is located nearby,” he said.

Sukanya Janchoo, general manager of dusitD2 and Dusit Princess Chiang Mai, said the floodwaters did not flow into either of the hotels, both located on Chang Klan Road, although the street in front of Dusit Princess remains submerged up to ankle level.

Chalermsak said other tourist areas such as the old quarter around Nimmanhaemin Road, Doi Suthep, the elephant camps, Mae Rim, Bo Sang and San Kamphaeng were untouched by the floods, while flights and other major forms of transportation were operating as per normal.

“Provided there is no more heavy rain, city officials have confirmed that the floodwaters on the two roads should subside by tonight,” he said.

By Sirima Eamtako

WEST Nusa Tenggara (NTB) province is planning to draw MICE to Lombok and Sumbawa islands as one of its major focus areas for tourism development.

The MICE drive forms part of the destination’s new branding strategy, which also focuses on mountains and marine tourism.

Speaking to travel agents and PCOs in Jakarta to introduce its new tagline Lombok Sumbawa Experience the Wonders, NTB Tourism Promotion Board chairman, Awan Aswinabawa, said: “Meetings and incentives contributed 50 per cent of our domestic market business last year.”

“NTB governor (Zainul Majdi) has instructed all regency heads to find and bid for government meetings to be held in Lombok. Every ministry has their national, regional and international meeting agenda, and governor Majdi wants some of those to be held in Lombok.”

Aswinabawa said hotels in Lombok had been busy constructing meetings facilities. The new Lombok Raya Convention Centre is scheduled to open soon with a capacity of 3,000 seats, while an additional 1,500 rooms are expected to enter the market between this year and next.

According to Aswinabawa, NTB’s next step will be to promote Sumbawa, especially as an incentive destination to both the domestic and international markets.

“We realise that the island still needs to develop its infrastructure and facilities, but the destination is charming and will leave unforgettable memories for travellers,” he said, adding that traditional processions and even a buffalo race could be arranged for incentive groups visiting Sumbawa.