OKINAWA has been seeing a steady increase in the number of visitors from mainland China since a new multi-entry visa was launched on July 1 (TTG Asia e-Daily, September 5), and is rolling out a series of initiatives to boost the number further.

Speaking to TTG Asia e-Daily at the Okinawa MICE Project 2011 in Ginowan, Okinawa Convention & Visitors Bureau (OCVB) chairman, Shigenobu Asato, said there were 2,141 mainland Chinese visitors who availed of the new visa from July 1 to August 31.

“Relatively speaking, since it has only been two months since the new visa was launched, we believe it has been successful so far,” said OCVB Chinese market representative Shigema Sachiyo.

The multiple-entry visas are targeted at upper middle-class Chinese FITs, with annual incomes of at least 250,000 yen (US$39,100), as well as their families, who are required to travel to Okinawa on their first visit. They can subsequently visit other Japanese destinations over the next three years for stays of up to 90 consecutive days, although travel must be undertaken with transit via Okinawa.

Besides the visa boon, Asato said he was hoping to leverage on the historical relationship between Okinawa and China to tap mainland Chinese visitors. Promotional material and a website translated into Mandarin are being rolled out to highlight the various products on offer in Okinawa.

Other scheduled promotional initiatives include a fair in Fuzhou from November 5-7, commemorating the 30th anniversary of Naha City and Fuzhou as sister cities, which will feature Okinawan cultural drum dancers and a tourism seminar with suppliers from Okinawa, and a marketing drive in Shanghai from November 18-20, highlighting the various Okinawan product retailers in the Chinese city.

Contributing to the steady increase in mainland Chinese arrivals to Okinawa are direct flights, including four-weekly Shanghai services operated by China Eastern, as well as twice-weekly Beijing services launched by Hainan Airlines on July 28.

According to Sachiyo, additional twice-daily Beijing services are being planned by Chinese flag carrier Air China, while OCVB is looking to start charter flights from Fuzhou to cater to the South-east China outbound market.

Asato said: “All of our direct flights from China are almost always fully booked. We are definitely looking to cater to the increased demand by boosting frequencies and adding new routes, but at the moment, the (international) airport is running at near full capacity and facilities are hard pressed to cater to the increased numbers.”

Meanwhile, Koichiro Toyama, Singapore business development representative, Okinawa Industry Promotion Public Corporation, said the Okinawa government was looking to open a representative office in Beijing, which would add to its existing offices in Shanghai, Taiwan and Hong Kong.

According to Toyama, the government has already appointed a person to manage the office, but is still looking for a suitable venue. “With the new office, it will be easier for Chinese travellers to apply for visas, organise seminars (in Okinawa), and for us to provide tourism information and sell our products to the Chinese market,” he said.

WITH the start of operations of the Lombok International Airport (LIA) on October 1, the West Nusa Tenggara (NTB) provincial government is hoping to establish direct air links between Lombok and Malaysia, Australia, Hong Kong and the Middle East.

NTB regional tourist office head, Lalu Gita Aryadi, said: “We would like to get direct services here. Malaysia is a potential market for us, but air connection has been an issue. Arrivals from Australia have been growing in the last couple of years, but we have been relying on Bali so far. Hong Kong is a hub for us to reach the China, Korea and Japan markets.”

He added that the regional government had plans to do roadshows and promotions in Indonesia and overseas to create awareness for the new airport and destination.

When asked why they were only making an effort recently, Lalu said: “We have been concentrating on pushing the airport authority to open LIA, (as the opening had already been postponed a few times). Once the airport runs, we will start promoting to airlines.”

Lombok’s current airport, Selaparang, will cease operations on September 30. On October 1, all airlines will depart and land at LIA, located in Central Lombok, 40km from Selaparang, according to Lalu, quoting from the announcement made by the Angkasa Pura I airport authority.

Indonesia AirAsia (IAA) said that the airline had plans on flying the Kuala Lumpur-Lombok route four times a week next year.

IAA marketing and distribution director, Widijastoro Nugroho, said: “We have (always) been interested and planned to fly to Lombok as early as two years ago, but the airport opening was postponed and we have deployed the aircraft initially assigned for Lombok to other destinations.”

He added: “Now we need to plan again and wait for the availability of aircraft, probably next year.”

The airlines that currently fly to Lombok are Garuda Indonesia, Lion Air, Batavia Air, Merpati Nusantara Airlines, Wings Air, Travira Air, and SilkAir.

IN A bid to boost its trade show business, Thailand has launched the Next Best Shows marketing campaign, offering monetary support for international exhibitions scheduled in the country over the next three years.

Thailand Convention and Exhibition Bureau (TCEB) president, Akapol Sorasuchart, said a budget of 85 million baht (US$2.7 million) had been set aside to support the three-year campaign, to run from next year to 2014.

The campaign will support qualified trade fairs by matching funds for 50 per cent of total marketing spending in regional markets or during the period that the trade show is held.

To quality, trade fairs must have been held in Thailand thrice before; be committed to continue its next three editions; comprise at least 10 per cent exhibitors and five per cent visitors from overseas; cover at least 40,000m2 of exhibition space; and implement a registration system per the Global Association of the Exhibition Industry’s (UFI) guidelines.

At least 20 shows, like Food and Hotel Thailand, Wire and Tube and Medical Fair, have already been earmarked as potentially qualifying for monetary assistance.

Akapol said the campaign would help TCEB achieve its 75 per cent growth target in the number of MICE visitors, an 87 per cent increase in revenue in 2016, up from this year’s expectations of 720,000 visitors and 56 billion baht receipt.

Based on The Trade Fair Industry of Asia 7th Edition, 2011, as reported by UFI, Thailand’s exhibition industry in 2010 was number one in South-east Asia, with 71 international trade fairs held, US$132.6 million generated and 432,500m2 of exhibition space used.

Singapore ranked second with 80 shows, US$103.4 million revenue and 250,000m2 space used, followed by Malaysia with 49 shows, US$87.34 million revenue and 265,000m2 space used.

By Sirima Eamtako

HOTELS in Bangkok and Phuket recorded an increase in room occupancy as visitor arrivals surged in the second quarter, according to commercial real estate firm CB Richard Ellis. However, room rates registered a dip as growing supply continued to overshadow demand.

The firm’s Market View of Bangkok Luxury Hotel and Phuket Hotel report revealed that the average occupancy of Bangkok hotels in the second quarter was back to 2009 levels (around 60 per cent).

However, the report added that downward pressure on rates due to increasing competition from new hotels remains a problem, with certain upscale hotels in Bangkok experiencing a four per cent year-on-year decline in ADR to 5,488 baht (US$177).

Meanwhile, the 36 per cent year-on-year growth in arrival numbers at Phuket International Airport pushed up the average occupancy of some the island’s upscale hotels by 52 per cent year-on-year, 47 per cent higher than the same period in 2009.

In contrast, the ADR of upscale hotels in Phuket decreased by three per cent year-on-year as demand for luxury hotels remained weak. While exact ADR figures were not revealed, the report stated that luxury hotels fetched around US$300 per night, first-class hotels charged around US$120-300, and the rate at mid-range hotels was about US$60-120.

The report projected that with Bangkok gaining 9,700 extra rooms and Phuket supply set to jump by 48 per cent between now and 2014, the oversupply of rooms in Bangkok and Phuket would continue to apply pressure on rates.

*The report defined upscale hotels as comprising accommodation in the luxury, first-class and mid-range categories.

MÖVENPICK Hotel & Spa Bangalore officially opened earlier this month, becoming the first property in India for the international hotel chain.

The five-star hotel, located near the main business districts and a 30-minute drive from the airport, offers complimentary Wi-Fi Internet access in all 182 rooms and public areas.

The hotel features four F&B options, including an all-day dining outlet, a bar, an Italian restaurant, and a rooftop restaurant and lounge.

MICE facilities include a grand ballroom with separate entrance and seven meeting rooms, while leisure facilities include an infinity-edge swimming pool, a Sohum Spa and a fitness centre.

Guests staying in executive club rooms or suites can avail of a 24-hour rate commencing the moment they arrive, which will suit international travellers taking early morning or late evening flights.

Mövenpick Hotels & Resorts is planning to open a second property in the country, the 110-room Mövenpick Dharamshala Resort & Spa, which will open in the Northern Indian Kangra Valley in 2013.

THE WORLD Travel & Tourism Council condemned last week the US government’s proposal to raise US$25 billion over 10 years through changes to the country’s Aviation Passenger Security (APS) fee.

APS is currently levied on airline passengers in the US at between US$2.50 and US$5 per trip. Under the proposals, the current range will be replaced with a statutory minimum fee of US$5, with annual incremental increases of 50 cents from 2013 to 2017, to reach US$7.50 in 2017.

Of the US$25 billion additional revenue raised over 10 years, at least US$15 billion is to be used for general taxation purposes, rather than for passenger security.

David Scowsill, WTTC president & CEO, said: “Travel & tourism currently contributes more than US$1.3 trillion or nine per cent of total US GDP, generates nine per cent of its total exports and supports 15 million jobs. Taxes on the sector tend to do more harm than good economically – as higher charges discourage high-spending visitors.”

He added: “We fully support the US administration’s efforts to reduce its debt burden, but do not believe it is good economics to raid US$25 billion from an industry that is a driver of growth and recovery.”

GALILEO Indonesia released its hotel booking product Travelport Rooms and More (TRAM) in Indonesia yesterday, and outlined that it was targeting US$250,000 in revenue within TRAM’s first year of operations there.

Galileo Indonesia general manager, Agus Santoso, said TRAM would make hotel reservations easier and more profitable for travel agents.

According to Galileo Indonesia director, Raymond Setokusumo, agents selling hotel rooms are forced to fork out high bank charges when clearing cheques for commission payments received from individual hotels or overseas partners.

TRAM claims to minimise these charges by pooling sales commissions from aggregators and OTAs via PayPal, to be processed in lump sums periodically.

Santoso said TRAM would also allow agents to see the most competitive prices offered by different aggregators on the same sector, as well as agency commissions.

Commenting on the new product, Gunawan Travel Services managing director Gunawan said: “TRAM may work for big agents, but is still difficult for those small ones, who consider even US$25 bank charges still valuable.”

From left: TTG Asia Media managing director Darren Ng, Media Transasia Thailand regional sales director Yaowadee Leelakittiwong, Hertz International vice president Asia & Japan Wong Soon Hwa

YAOWADEE Leelakittiwong, regional sales director, Media Transasia Thailand, was the lucky winner of the Hertz car up for grabs at PATA Travel Mart (PTM) 2011 (TTG Asia e-Daily, September 1).

Open to all registered PTM delegates, the lucky draw was organized by Hertz and co-sponsored by TTG Asia Media.

TRAVELPORT’S Orbitz Worldwide has won the war against American Airlines (AA) over the carrier’s plans to force agents into using its Direct Connect booking tool rather than their global distribution systems.

Orbitz was forced to pull data on AA’s flights last December, but managed to secure an injunction to reinstate its right to display and ticket AA flights in June (TTG Asia e-Daily, June 2).

The Illinois Appellate Court affirmed the injunction yesterday, which preserved Orbitz’s ability to sell AA tickets. The court also recognised Travelport’s stand that Orbitz’s existing contract with AA allows all Travelport agents to fully utilise AA’s content.

“We are very pleased with the appellate court’s recognition of our contractual rights,” said Travelport’s chief legal and administrative officer, Eric Bock. “Those rights are critical to protecting our agencies’ ability to have and fully use AA’s content.”

Travelport said in statement that it would continue to pursue its claims for damages against AA before the trial court.

CAMBODIA’S Aboutasia Travel has appointed Hong Kong-based Gateway Group to increase outbound travel business volume from Hong Kong and Greater China.

Gateway Group will work to secure potential travel agents and MICE/PCOs looking for direct relationships with Aboutasia Travel.

Aboutasia Travel founder & CEO, Andy Booth, said: “We are excited to be working with Gateway Group to expand the reach of Aboutasia Travel into the Hong Kong, mainland China, Macau & Taiwan marketplaces.”

“We believe that we will see a substantial increase in leisure, special interest and MICE travel business from the region,” he added.

According to Gateway Group founder & managing director, Johnny Li, “the arrangement represents the first time Gateway Group has partnered with a DMC in Cambodia”.