EGYPT is looking East to boost arrivals as numbers from the West continue to slump, owing to economic ills plaguing Europe and Egypt’s political turmoil.

Traffic into Egypt nosedived 40 per cent in the first six months, Egyptian Tourism Office data shows. Russia, its biggest source, has slumped 30 per cent since the January 25 revolution.

Tourism director Adel El Masry said Asia, which comprises around a fifth of arrivals, offered better prospects for Egypt for the foreseeable future as it had outperformed traditional source markets in growth. “In 2010, arrivals from Asia rose 36.6 per cent over 2009, compared to the overall average of around 20 per cent. Asia is our future.”

His strategy to grow Asia is to offer niche products and work closely with major tour operators across Singapore, India, Malaysia and Thailand.

“For Singapore we will focus on golf and diving; for India and Thailand, honeymoons; and Malaysia, cultural and religious attractions,” he said.

A new campaign will be launched in 1Q2012.

Masry said: “Tourists are avoiding Cairo, and Nile cruise tours, a popular option with European tourists, have really suffered. Resort towns along the Red Sea and Sharm el Sheikh have performed better in recent months. We hope arrival figures will improve significantly once the Egyptian presidential elections are held in March or April.”

George Fawzi, president and CEO of Excel Travel in Cairo, said volume had increased 60 per cent so far this year but was still below previous levels. “Nevertheless, the situation is slowly but surely getting better,” he said

Shravan Bhalla, CEO of High Flyer India, said Indian holidaymakers were gradually returning to Egypt. “However, the same cannot be said for MICE. Some of my clients are switching from Egypt to Turkey,” he said.

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

JACTRAVEL, traditionally a tour operator selling the UK since 1975, is now growing its reputation as an online supplier of hotel inventory, setting its sights on both properties and business from the region with its debut at ITB Asia 2011.

Explaining that the company had only started online wholesaling in recent years, CEO Mario Bodini said this source of revenue had now overtaken its traditional offline one, contributing 70 to 80 per cent of business. Three years ago, it decided to put together a dedicated contracting team for Asia.

Selling 7,000 “handpicked” hotels worldwide, only 15 per cent of these are in Asia, concentrated in hubs such as Singapore, Hong Kong and Bangkok. Much of its inventory is in the UK, Europe and Canada.

JacTravel’s key Asian customers are major wholesalers in South Korea, Japan and Thailand, with demand also coming from other countries such as Indonesia, Vietnam and India.

Properties can be booked via XML or by logging into a web-based interface.

Bodini said: “Right now we’re selling more Asia to Asia than Asia to Europeans. Our inbound business is steady but not growing at the same level as our online wholesaling. The UK is a mature market, whereas online, we have the whole world.”

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

HOTELIERS in Singapore, Malaysia and Indonesia are angling for moderate room rate increases, reflecting current concerns about the economy but also a hint of optimism that occupancies can be maintained.

Despite Singapore hotels enjoying healthy rate hikes over the past few years, The Traveller DMC Singapore executive director Yvonne Low said hotels were asking for five to six per cent hikes in rates. She has resigned herself to the rise.

“It’s quite owner-driven these days, so although there’s uncertainty, rates will still go up,” she said.

Hoteliers in Indonesia and Malaysia, who are also pitching for an increase of five to 10 per cent, argue that the quantum only covers “inflation and electricity hikes”, as Ayodya Resort Bali assistant sales manager Budi Susanta pointed out.

Agreeing, Flamingo Hotel by the Lake Kuala Lumpur director of sales Fiona Achung said: “Rates have to increase every year as costs are also increasing.” The hotel, and its sister in Penang, are planning to increase prices by five and 10 per cent. The four-star properties’ average rate today is between US$80 and US$90.

But buyers such as The Netherlands’ Smaragd Reizen’s director, Amy Foss, who sends clients to South-east Asia, said: “It is going to be challenging for us. The increase in prices on top of the weakened Euro effectively doubles our selling price.”

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

THE TRAVEL trade in Sabah and Sarawak believes that Firefly’s impending discontinuation of flights from Kuala Lumpur to Kuching and Sibu in Sarawak, and to Kota Kinabalu and Sandakan in Sabah will create a monopoly, push up prices and curtail short and longhaul traffic into the region.

Coming on the heels of the decision to shut Firefly’s Johor hub offering direct flights to Kuching and Kota Kinabalu, Kevin Nila, regional marketing manager, Malaysia & Singapore, Sarawak Tourism Board, said the twin exits would only benefit AirAsia, Firefly’s only other budget competitor on the routes. “It’s a monopoly now,” he said. “There’s no more freedom to choose your own airline. It’s like having a single telco with full control over the entire region.”

Noredah Othman, senior marketing manager, Sabah Tourism Board, agreed with her Sarawak counterpart, saying although Malaysia Airlines (MAS) offered a deluge of flights into both state capitals, they were premium category, and Firefly’s exit had removed the only barrier discouraging AirAsia from raising its fares.

She said: “Firefly provided good competition for AirAsia. Travellers are very price-conscious nowadays, and there are never enough flights into Kota Kinabalu. Previously we had 80 MAS, 63 AirAsia and 42 Firefly flights from Kuala Lumpur per week. Some 8,000 weekly seats will no longer be available once Firefly pulls out.

“My main concern is Sandakan, which receives a lot of longhaul from Australia through Kuala Lumpur.”

Charlie Chan, director-operations & sales, Kota Kinabalu-based Borneo Passages, was another who predicted that AirAsia fares to East Malaysia would see a subsequent increase. “AirAsia rates will go up for sure. For MAS and AirAsia, their rate is always ‘right’; their attitude is that ‘it’s my rate, not your rate’,” he said.

Noraini Ahmad, sales manager, Peninsular Malaysia, Borneo Convention Centre Kuching, said rates on AirAsia’s flights from Kuala Lumpur to Kuching were already increasing at an alarming rate. “During peak season, they are even more expensive than MAS tickets,” she said.

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

CHILE-based LAN Airlines wants to extend its reach into South-east Asia through partnerships with travel agents and ticketing agents in Indonesia, Malaysia, the Philippines and Thailand, who will be supported by its Singapore-based GSA.

Juan Carlos Selman, senior sales manager Asia of LAN, said: “These partnerships mean that agents in those markets can access LAN fares, products and sales and marketing support.”

LAN has debuted a LAN Pack programme in Singapore, which consolidates travellers from various travel agencies and arranges for a combined departure. As of yesterday, 15 Singapore travel agents have expressed their interest in the programme.

“LAN Pack is specially developed for markets that find it hard to get enough (leisure) volume to South America,” said Selman, who added that the airline would help travel agents on the programme negotiate better rates with suppliers and provide marketing tools.


Selman expects the programme to garner enough numbers for a group departure in April.

– Read more in ITB Asia 2011 Official Daily – Day 2 issue

JAPAN inbound is on the mend, with smaller declines being recorded from major sources.


Japan National Tourism Organisation figures show foreign arrivals in June and July were 36 per cent lower than in the same period in 2010. This compares with whopping drops of 62 per cent and 50 per cent in April and May respectively.


Japan Tourism Agency commissioner, Hiroshi Mizohata, said: “We are now seeing the start of a full recovery.”


China, its second largest source, shrank 40.1 per cent in August, compared to 49.5 per cent in April. China proved to be Japan’s most resilient source, dipping the least when Japan was first hit by the earthquake and tsunami.

Yuki Ye, deputy manager of business department, Century Holiday International Travel Group Shenzhen, said bookings for her company to Japan were down 20 per cent overall to-date.


“Our Chinese clients are not as perturbed by the radiation threat as they were when the Fukushima nuclear plant went into meltdown in March. Many are looking at Japan again, and even Tokyo, which is relatively close to the Fukushima radiation hotspot,” she said. Ye expects traffic from China to return to previous levels by end-2012.


Hong Kong, Japan’s fourth largest source, shrank 25.5 per cent in August – versus a massive 87.6 per cent in April.

Benny Liu, assistant manager, global business, JTB China, said: “The market from Hong Kong to Japan is recovering and should continue to do so into 2012 but the bulk of demand is being driven by younger customers; older people are still wary and nervous about travelling to Japan despite the more positive picture painted by the media.”


Singapore, Japan’s sixth largest source, saw a dip of 24 per cent in August, compared to 82.9 per cent in April.

Sabura Bagum, director (business development), NSK@Work, said: “There have been no enquiries for MICE to Japan by Singapore-based clients since the tragedy. But we have been receiving some bookings for FIT and leisure travel.”

– Read more in ITB Asia 2011 Official Daily – Day 2 issue

SMALL South American country Ecuador, which has not taken serious steps to court the Asian market until now, is muscling its way into the region, assisted by a marketing budget that has multiplied three-fold.


Speaking to the Daily at its first Asian travel tradeshow, Tourism Promotion Secretary Carlos Guzmán said the country’s goal was to make tourism revenue the top contributor to its economy, overtaking income from oil. Tourism is currently in fourth place.


Armed with a new country brand – Ecuador Love Life – that represents the locals’ affection for their way of life and their warm hospitality, the ministry will begin hosting fam trips from Asia next year, as well as attend several tradeshows in China, South Korea and Japan, aside from coming to ITB Asia again. It is also negotiating with airlines for joint advertising campaigns.


Observing a gradual increase from Asia-Pacific markets, which accounted for slightly over one per cent of total arrivals in 2000 compared to between three and five per cent last year, Guzmán explained that Ecuador shared close links with the region such as its collaboration with Singapore in the areas of commerce and biotechnology.

Ecuador received one million visitor arrivals in 2010, and Australia and China are its largest Australasian markets. Guzmán said the plan was to grow Australasian arrivals to between five and 10 per cent of total arrivals within five years. It is also looking to increase numbers from Singapore, Malaysia, South Korea and Japan.

Ecuador is being positioned as a destination for ecotourism and adventure travellers, but also for the average tourist. Said Guzmán: “Ecuador is an excellent starting point as we are the sum of South American experiences.”

Infrastructure-wise, Guzmán said the government had a five-year plan to develop the international airport in the coastal city of Manta as a South American hub. There are currently more than 19 airports in Ecuador, five of them international.

– Read more in ITB Asia 2011 Official Daily – Day 2 issue

THREE competing tour operators in Indonesia are putting aside their rivalry to grab a share of the country’s emerging online market.


The Panorama Group, Dwidaya Tour and Travel, and Smailing Tours have formed Raja Kamar International and has hired former ZUJI CEO, Scott Blume, as group CEO, effective November 1.


Their first roll-out is Raja Kamar Indonesia. Rajakamar.com, which literally translates to “king of rooms” in Bahasa, aims to be the number one B2C online hotel booking channel with the largest inventory of Indonesia hotels, selling primarily to Indonesian consumers.


Panorama’s Satrijanto Tirtawisata, who is Raja Kamar International’s president, said more hotel rooms were opening in secondary and tertiary cities throughout Indonesia.

This, along with Internet access and “phenomenal” growth in the number of mobile phone users, made online hotel booking an “obvious” form of distribution for hotels, he said.

The initial target for is to be among the top three sellers of hotel roomnights in Indonesia in the next four months. The next goal, said Blume, was to take the learnings in Indonesia to the neighbouring Asian markets.


Within a year, Raja Kamar International is expected to spread its wings to the region, be it in the form of joint ventures or strategic alliance partners.


Quizzed on why Panorama decided to go to bed with rivals, Satrijanto said in this instance, it was more effective for the three tour operators to combine resources than compete. They would also remain neutral and not elbow their inventory through to Rajakamar.com.

– Read more in ITB Asia 2011 Official Daily – Day 2 issue

AS PART of President Susilo Bambang Yudhoyono’s Cabinet reshuffle announced Tuesday, Dr Marie Eka Pangestu has been named Minister of Tourism and Creative Economy.


She was formerly Minister of Trade.


Her predecessor, Jero Wacik, who held the position of Minister of Culture and Tourism, is now Minister of Energy and Mineral Resources.


Dr Sapta Nurwandar, who was director-general of tourism marketing, is now vice minis

ter of the new tourism ministry.

The trade is hailing the combination of tourism with ‘creative economy’.


Hotel Santika Jogjakarta general manager Ari Respati said: “I think Ibu Marie and Pak Sapta make a good combination. Both are professionals with good track record in their capacities. If they can work together, it will be positive for tourism.”


Sintesa Peninsula Manado executive assistant manager Jonathan Mokalu said: “Marie Pangestu recently held a conference in Manado to promote investment in Indonesia to international buyers. The feedback was positive.”


Ministry of Tourism and Creative Economy director of international promotions Nia Niscaya said: “Ibu Marie has very good relations with China. We hope she will repeat her success in bringing business from China with tourism, and also bring tourists from other parts of the world, of course.”

– Read more in ITB Asia 2011 Official Daily – Day 2 issue

TRAVEL business leaders have warned that the economic woes of the US and Europe could exert a downward pressure on Asia’s industry performance, with some saying the next few months are crucial in determining whether there will be growth.


Speaking to the Daily, World Travel & Tourism Council (WTTC) president & CEO David Scowsill said: “We’re in a very delicate phase at the moment. Asia is still steaming away in general terms, but there are real wobbles in Europe and America. Everybody is concerned about the potential of going into a double-dip recession.”


He added that with the volatility of oil prices and new taxation on the horizon in the form of the European Union (EU) Emissions Trading System, affecting flights to and from the EU, network airlines would have no choice but to pass on the increase in costs to consumers, due to razor-thin profit margins. This could further depress demand from longhaul markets, he said.


Scowsill said: “At this point, nobody knows what 2012 is going to bring.”

“When I talk to business leaders running hotels, airlines and car rental businesses…Most of them have two different budgets for 2012 – one is kind of low growth to no growth and one is a lot more optimistic.”


Bright spots in Asia are also giving hope to leaders in the region.

Azran Osman-Rani, CEO, AirAsiaX said while Europeans had become concerned about longhaul travel, other Asia-Pacific markets were still holding up.

Similarly, William Heinecke, chairman and CEO of Minor International, said: “The slowdown in US and Europe has been compensated by emerging markets like China and India. We’re in a very strange recessionary period because a lot of markets still have cash.”

– Read more in ITB Asia 2011 Official Daily – Day 2 issue