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

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