EMIRATES’ new services from Dubai to Geneva (launched in June), Copenhagen (launched on August 1) and St Petersburg (starting November 1) are expected to snare even more of the Indonesian economy and premium outbound market to Europe.

Mohammad Al-Nahari, Emirates country manager for Indonesia, said: “The new services follow higher demand, not just from business travellers but also leisure travellers, and will boost the number of Indonesians travelling to these destinations and vice-versa.”

Al-Nahari added that the new Copenhagen services would serve as a gateway to Scandinavian destinations. “The route is already proving popular, demonstrated by the number of passengers from Jakarta booked on the first week of flights,” he said.

Al-Nahari said Emirates started to see significant growth from the longhaul corporate outbound market after introducing twice-daily direct Jakarta-Dubai flights in March last year.

Emirates sales manager Indonesia, Ilonka Leiwakabessy, said: “With our aircraft capacity between 385 and 400 seats in two classes, our average load factor is between 75 per cent and 85 per cent, or about 800 passengers a day.”

Leiwakabessy said Indonesia’s growing premium-class market, especially from the corporate sector, had boosted Emirates’ business-class load factor by between 75 and 100 per cent compared to 2010.

Asked if there were plans to increase capacity or introduce three-class configuration services from Jakarta, Al-Nahari said the airline would first concentrate on maximising available services.

ESCALATING land prices and costly leases are affecting the development of new hotels in Sri Lanka, which is aiming to triple the current inventory of 15,000 rooms to 40,000-45,000 by 2016.

Land in the 500-acre (five hectares) Kuchchaveli development zone in eastern Trincomalee is going for an upfront fee of 20 million rupees (US$182,400) an acre. In Kalpitiya on the northwest coast, 1,000 acres is available at three million rupees an acre. In both Kuchchaveli and Kalpitiya, a 99-year lease is available at the annual rate of 25,000 rupees per acre.

Meanwhile, two hundred acres in Passekudah, also in Trincomalee, has already been allocated to investors on a 33-year lease, at the annual rate of 25,000 rupees per acre.

Anura Lokuhetty, president of the Tourist Hotels Association of Sri Lanka, said land prices had become a bone of contention for hotel developers. “If an investor is asked to pay 20 million rupees an acre, for 10 acres he has to pay 200 million rupees upfront. This will definitely raise the question of the project’s viability.”

Malin Hapugoda, managing director of Aitken Spence Hotels, agreed that prices had spiraled out of control. “Hotel projects need to be viable, land needs to be sold at reasonable prices,” he said.

The government has been shifting from 33-year to 99-year leases over the past year, after investors requested longer lease terms. The upfront payment option is a new development, and was introduced as a means of funding post-war infrastructural development.

THE INAUGURAL Cruise Shipping Asia, which runs from November 16-18 at the Marina Bay Sands Expo and Convention Centre (TTG Asia e-Daily, June 13), has released its preliminary conference agenda.

The conference opens on November 16 with a panel discussion on the State of the Asian Cruise Industry with Stein Kruse, president and CEO of Holland America Line; Michael Bayley, executive vice president, International, Royal Caribbean Cruises; Roberto Giorgi, president of V. Ships; and Neil Palomba, COO of MSC Cruises.

Participating in the afternoon’s Destinations: Challenges and Opportunities in the Development of the Cruise Industry panel discussion are Ted Blamey, principal of Chart Management Consultants; Made Mangku Pastika, governor of Bali; Sapta Nirwandar, director general of tourism marketing, Indonesia Ministry of Culture and Tourism; and Richard Doyle, managing director of Doyle Tourism Services.

On the morning of November 17, sessions to be held include Ship Building, Repair and Refurbishment—The Asian Perspective and Terminal Design & Operations, with panelists Bruce Krumrine, vice president shore operations for Europe and exotics for Princess Cruises; and Mark Robinson, managing director of Intercruises.

This will be followed by the afternoon sessions Sourcing in Asia for the Existing and Future Fleets and The Regulatory Environment and Crewing.

The last day of the conference will open with Marketing in the New Age, moderated by Yeoh Siew Hoon, editor and producer of Web In Travel. Shore Excursions & Port Services, running concurrently, will be moderated by Ted Blamey of Chart Management Consultants and panelist Laura Vlad, regional director for Asia, Intercruises.

The final conference sessions are Identifying Source Markets with Michael Goh, senior vice president of sales for Star Cruises, and Successfully Designing the Cruise Experience for the Asian Market, moderated by Yeoh Siew Hoon, and with panelists Liu Zinan, managing director of China & Asia Pacific, Royal Caribbean Cruises; Steve Odell, senior vice president, Asia-Pacific for Silversea Cruises; and Dario Rustico of Costa Crociere.

GO VACATION Thailand has won the contract to provide passenger transfer services and shore excursions for AIDA Cruises in Thailand during the upcoming 2011/2012 winter season.

The German cruise liner will be operating the 2,500-pax AIDAdiva on one- and two-week South-east Asian itineraries from November 27, 2011 to March 5, 2012.

This is the third consecutive season that Go Vacation has been assigned the account, having previously handled the 1,200-pax AIDAcara in 2009/2010 and the 1,300-pax AIDAaura in 2010/2011.

AIDAdiva will be based in Thailand’s Laem Chabang port throughout the season. The port, located about halfway between Bangkok and Pattaya, is around one-and-a-half hour’s journey by car from Suvarnabhumi Airport.

Go Vacation, which also handles the German REWE account, was one of three Thai cruise groundhandlers which made it to the final bidding round for AIDA’s winter programme in the country.

INTERCONTINENTAL Hotels Group’s (IHG) trio of properties in Pyeongchang, South Korea, are banking on the destination’s status as host city of the 2018 Winter Olympic Games to boost business.

Situated within Pyeongchang’s Alpensia village, an all-year purpose-built alpine resort, InterContinental Alpensia Pyeongchang Resort, Holiday Inn Resorts Alpensia Pyeongchang and Holiday Inn & Suites Alpensia Pyeongchang contribute a total of 871 rooms.

With facilities such as a ski jump tower, a cross-country skiing course, golf courses, a conference centre, shops and a water park, Alpensia draws both domestic and international visitors.

Clarence Tan, IHG COO, Japan and Korea, said: “Additional infrastructure has been planned to further support the host city. This includes a high-speed railway that will halve the travelling time from Seoul to Pyeongchang, making Alpensia and our hotels even more accessible.”

Although the International Olympic Committee has yet to designate official hotels for the games, Tan told TTGmice that the three IHG properties were the main accommodation options in Alpensia.

He added that enquiries relating to international meetings were received “right after the July 6 announcement of the 2018 Winter Olympic Games in Pyeongchang” and that increasing interest was expected in the lead up to the games.

– Read more in TTGmice, September issue

SOLUXE Hospitality Group, a Singapore-based international hotel chain owned by the China National Petroleum Corporation, has taken over the management of the Angkor Palace Resort & Spa in Siem Reap and rebranded it as Grand Soluxe Angkor Palace Resort & Spa.

Weng Aow will continue to lead the luxury resort as general manager.

Aow said the resort would tap the “extensive international network of Soluxe Hospitality Group to (attract) more business”, and would be represented as part of the group’s portfolio at roadshows and trade shows.

“With us being Grand Soluxe Angkor Palace now, we will be looking at enhancing and reinforcing our management structure, and leveraging on the strength of our team in our Singapore office headed by group general manager Bernard Chong,” he said.

Soluxe Hospitality Group manages several brands including Grand Soluxe, Soluxe, Soluxe Courtyard and Soluxe Inn, and has over 60 hotels in China and other destinations.

FOLLOWING the success of Eat, Pray, Love, which was filmed in Bali, another Hollywood movie, The Philosophers, is set to feature even more of Indonesia as a tourist destination.

Directed by John Huddles and produced by George Zakk and Cybill Lui, the film, which will premiere in May or June next year, has just finalised shooting at the Indonesian tourist destinations of Mount Bromo, the Prambanan temple complex and Belitung island.

Indonesian Minister of Culture and Tourism, Jero Wacik, said: “This is the second achievement of our efforts to promote Indonesia as venue for world movie-making.”

The drive to promote Indonesia as a movie-making destination has two aims, according to Wacik. The first is to create jobs for locals, while the second is to “promote tourist destinations through films”.

Wacik said: “If Eat, Pray, Love promoted Bali, through The Philosophers, we will promote Bromo, Prambanan, Belitung and Jakarta. This is what we call the low-cost high-impact marketing strategy that we have taken.”

According to Wacik, another filmmaker from France is planning to create an adventure film featuring Rajaampat, one of Indonesia’s best diving spots, while a US television programme has just finished shooting in Jogjakarta.

ALL SEASONS Property (ASP) has set aside some one billion baht (US$33.5 million) for the five-year upgrading programme of All Seasons Place and Conrad Bangkok, which celebrated its eighth anniversary on Monday.

ASP managing director, Frankie Bao, said the programme would revamp both the property’s software and hardware, to maintain competitiveness amid growing competition from other luxury and mixed-use properties.

Some 40 condominium units are currently under renovation, slated for completion by the middle of next year.

Bao said ASP was carrying out a feasibility study for the upgrading of security systems and lobbies at office buildings in All Seasons Place, as well as a proposed three-year renovation plan for the hotel.

According to Bao, the Conrad Bangkok had been running at an average occupancy of about 60 per cent year-to-date, and was on course to end the year at around 60-65 per cent, up from the 50 per cent recorded last year.

Barring further crisis, Bao said the hotel’s occupancy was expected to exceed 70 per cent next year, but added that it would take longer to raise the average room rate to its previous highs.

Bao is expecting the rate to grow from its current 4,500-4,800 baht to more than 6,000 baht within the next three years, when the number of luxury hotels in Bangkok stabilises.

In the first three to four years of operation, the Conrad Bangkok recorded above 80 per cent occupancy and an average daily room rate of more than 6,000 baht.

By Sirima Eamtako

EXPEDIA has introduced AirAsia flights and packages on its Malaysian website as part of an ongoing joint venture with the Malaysia-based low-cost carrier (TTG Asia e-Daily, March 29).

Travellers from Malaysia will now be able to book hotels, flights and holiday packages simultaneously via Expedia.com.my

Dan Lynn, CEO of Expedia Asia, said: “With this partnership, we are now the only third party online travel agency in Malaysia offering all AirAsia and AirAsia X flights to over 75 destinations worldwide.”

To celebrate the full-service launch, Expedia.com.my has launched an AirAsia flight and accommodation promotion, offering a free night’s stay for every two nights booked at 49 hotels across the region.

Valid until end-October, travellers need to book online at Expedia.com.my from now till September 7 to take advantage of the promotion.

THE DEAL signed yesterday between Malaysia Airlines (MAS) and AirAsia is set to rationalise the airline sector in Malaysia and help the flag carrier return to profitability.

By entering into a Comprehensive Collaboration Framework (CCF), both airlines have agreed to complement each other’s businesses, so as to leverage on core competencies and optimise efficiency. This involves an assessment of their respective network services.

An immediate effect of the CCF is a demarcation of the airlines’ business turfs. MAS will focus on the premium segment while its wholly-owned subsidiary Firefly will become a full-service carrier serving regional destinations. AirAsia and AirAsia X will continue with their low-cost services to local, regional and intercontinental destinations.

The development takes place nine-years after AirAsia CEO, Tony Fernandes, first told TTG Asia that AirAsia and MAS should be working together to synchronise their schedules and frequencies to take on airlines of neighbouring countries, instead of competing with one other.

However, Fernandes emphasised that yesterday’s deal was “not a merger”.

The CCF was facilitated by a share swop deal (TTG Asia e-Daily, August 8) between Tune Air, AirAsia’s holding company, and Khazanah Nasional, the government’s investment arm, which owned a 69 per cent stake in MAS.

Tune Air received 20.5 per cent equity in MAS, while Khazanah received 10 per cent equity in AirAsia. Fernandes and Kamarudin Meranun of AirAsia will sit on the MAS board, while MAS director Mohamed Azman Yahya will join the AirAsia board.

Accompanying the deal was the resignation of MAS managing director, Azmil Zahruddin (whose position was described as tenuous in TTG Asia, August 5 issue), and seven other directors. Replacing them, in addition to Fernandes and Kamarudin, are four high-profile corporate figures. Mohamed Rashdan Mohd Yusof has been designated as MAS executive director.

A senior travel agent who declined to be named welcomed the changes. “MAS board members should be made up of high flyers who travel first class in other airlines, who can then share their experiences with MAS; not government retirees,” he said.

Until MAS appoints a new managing director, an executive committee comprising MAS chairman Md Nor Yusof, Azman, Rashdan, Fernandes and Kamarudin will oversee its management.

By N. Nithiyananthan