SRILANKAN Airlines will be resuming flights to Zurich starting December 23, after a six-year suspension.

The airline said it will operate two flights a week to Zurich, on Mondays and Fridays, with the option of a third flight later on. SriLankan Airlines CEO, Manoj Gunawardene, said the Airbus AB-340 and AB-330 aircrafts will be used, with a seat capacity of 313 seats and 287 respectively.

“Compared to 2009, the number of Swiss nationals travelling to Sri Lanka grew by 49 per cent last year,” he said, adding that the airline was also targeting ethnic Sri Lankans living there.

Abbas Esufally, managing director at Sri Lanka’s Hemas Hotels, said: “Zurich is good connection for travellers from Canada and the US, and this will certainly increase and widen our markets.”

MALAYSIA’s tourism minister, Dr Ng Yen Yen, said in a press conference that the industry stands to lose up to 1.2 billion ringgit (US$399 million) in income because of the July 9 Bersih 2.0 (Walk for Democracy) rally in Kuala Lumpur.

The police is expecting thousands to participate in the rally for a free and fair general election in Malaysia.

“The tourism industry is highly sensitive to such matters like rallies and street demonstrations that can disrupt travel plans,” she said. “Tourist arrivals last July was 2.2 million, with revenue of six billion ringgit, so if we lose just 20 per cent of that, it would be 1.2 billion ringgit. Furthermore, July is also our peak season for Middle Eastern visitors who come on holiday here.”

Malaysian Chinese Tourism Association president Paul Paw said that the China National Tourist Office had sent representatives to assess the situation, as over 100 travel agents were scheduled for a conference, road show and business exchange on July 10. This is part of a three-country visit that will also take them to Singapore and Indonesia.

“They are very concerned with news of the upcoming rally and are hesitant if it’s safe for their visit. We are expecting just half of the group to arrive as planned,” he told TTG Asia e-Daily. He added that his company, China Express Tours and Travels, stands to lose one million ringgit if the entire group cancelled their trip.

Malaysian Association of Hotel Owners executive director Shaharudin Saaid said that over 30 three- to five-star hotels in central Kuala Lumpur would be affected.

“The tourism industry is fragile and the slightest change or disruption affects us first,” added Red Fury Tours and Travels managing director Frankie S.K. Lee. “Should the rally go on as planned on July 9, we would definitely feel the impact in the aftermath, especially if the situation descends into chaos.”

By Ellen Chen

THE INDONESIA Ministry of Culture and Tourism and Nahdlatul Ulama (NU), the country’s biggest Islamic organisation, is working together to develop pilgrimage tours.

Minister of Culture and Tourism, Jero Wacik, and NU Chairman Said Aqil Siraj signed the MoU yesterday. The ministry will be conducting training for NU members on tourism, especially ones related to the Muslim sites.

Wacik said: “We have had the Trail of Civilisation, a cooperation between countries with historic Buddhist historic sites, Indonesia with Borobudur, Cambodia with Angkor Wat. We are now developing the Muslim pilgrimage tours.”

Through the cooperation, the ministry also expects tour operators to develop related package tours.

This is not the first time that the ministry is working with NU, according to Wacik. Earlier, they organised the Sunan Gunung Jati cultural performance in Cirebon, West Java, where they renovated some of the graves of the wali songo – leaders who spread Islam in Indonesia, especially in Java.

Siraj said: “We support tourism. The Koran teaches that Prophet Muhammad’s followers should travel and visit different countries and nations. (Pilgrims can) learn about the history of Islam in Indonesia through the wali songo who succeeded in using art, cultural the and humane approach (in spreading Islam), for example.”

He added that Middle Eastern countries have developed their tourism, which means that Muslims were open to travelling.

JAPAN Airlines Corp (JAL) is planning to enter the booming low-cost carrier (LCC) market through a joint venture with Qantas LCC subsidiary Jetstar.

The venture is a surprising turn for JAL, as its chairman Kazuo Inamori has repeatedly insisted that it would keep out of the low-cost sector.

The new discount airline, which will have a capital of 10-20 billion yen (US$115-231.6 million), is scheduled to launch as early as next year. It may serve Tokyo’s Narita airport, which is expanding its landing slots.

The venture will reportedly only cover domestic routes initially, but is expected to eventually operate international flights. The decision on which company will take management control is said to be decided at a later stage. Major Japanese trading houses Mitsubishi and Toyota Tsusho have been invited to invest in the deal.

JAL and Jetstar hope to finalise the alliance by the end of July.

JAL rival All Nippon Airways (ANA) is set to start Japan’s first budget airline, Peach Aviation, with the aid of Hong Kong and Japanese investors (TTG Asia e-Daily, February 10). It aims to start domestic services out of Kansai International Airport in Osaka in March 2012.

KHAO LAK is seeing an increase in arrivals from existing and new markets, benefiting in part from tourism influx in Phuket. The destination is also seeing an expansion of its inventory.

Vichien Kitsuwan, general manager of the 270-room Khaolak Emerald Beach Resort and Spa, said the resort was expected to run at peak to full capacity again in the November to March high season. This is based on forward bookings from existing markets – Scandinavia, Germany, France and Switzerland – as well as new arrivals from the Netherlands.

However, Vichien said that the resort was unlikely to fetch the average room rate of 3,200 baht (US$104) – a level it achieved in 2008 – because of more competition.

Le Meridien Khao Lak Beach and Spa Resort marketing director Linawaty Ko said the resort was cultivating new markets to grow its share amid competition from more hotels. Recent activities done by the resort and the Tourism Authority of Thailand had resulted in more arrivals from Australia, Southern Europe and India, she said.

While Khao Lak had also seen the rise of arrivals from Asia – Hong Kong, Japan and South Korea – spilling over from Phuket, more collective destination marketing is still needed to drum up interest, according to True Holiday Thailand managing director Wichukorn Kootrakool.

Wichukorn said: “Bookings from the Hong Kong market to Khao Lak started arriving slowly after my recent sales mission. Khao Lak has the potential to get more Hong Kong business, but the destination needs to increase their promotions and market awareness.”

The destination is also set to add more inventory. In November, Phuket-based Kata Group Resorts will open its Khao Lak Cassaway Resort and Spa with 153 one-bedroom villas, while Casa de La Flora, which soft-opened in March with 14 villas, will add another 22 villas.

Owners of Phuket Graceland Resort and Spa also plan to open a 350-key resort early next year. They will join the 78-key new wing of the 103-room Briza Beach Resort, which opened in February.

In addition, the 156-key Kantary Beach Hotel Villas and Suites opened in November last year

KHAO LAK is seeing an increase in arrivals from existing and new markets, benefiting in part from tourism influx in Phuket. The destination is also seeing an expansion of its inventory.

Vichien Kitsuwan, general manager of the 270-room Khaolak Emerald Beach Resort and Spa, said the resort was expected to run at peak to full capacity again in the November to March high season. This is based on forward bookings from existing markets – Scandinavia, Germany, France and Switzerland – as well as new arrivals from the Netherlands.

However, Vichien said that the resort was unlikely to fetch the average room rate of 3,200 baht (US$104) – a level it achieved in 2008 – because of more competition.

Le Meridien Khao Lak Beach and Spa Resort marketing director Linawaty Ko said the resort was cultivating new markets to grow its share amid competition from more hotels. Recent activities done by the resort and the Tourism Authority of Thailand had resulted in more arrivals from Australia, Southern Europe and India, she said.

While Khao Lak had also seen the rise of arrivals from Asia – Hong Kong, Japan and South Korea – spilling over from Phuket, more collective destination marketing is still needed to drum up interest, according to True Holiday Thailand managing director Wichukorn Kootrakool.

Wichukorn said: “Bookings from the Hong Kong market to Khao Lak started arriving slowly after my recent sales mission. Khao Lak has the potential to get more Hong Kong business, but the destination needs to increase their promotions and market awareness.”

The destination is also set to add more inventory. In November, Phuket-based Kata Group Resorts will open its Khao Lak Cassaway Resort and Spa with 153 one-bedroom villas, while Casa de La Flora, which soft-opened in March with 14 villas, will add another 22 villas.

Owners of Phuket Graceland Resort and Spa also plan to open a 350-key resort early next year. They will join the 78-key new wing of the 103-room Briza Beach Resort, which opened in February.

In addition, the 156-key Kantary Beach Hotel Villas and Suites opened in November last year

By Sirima Eamtako

AUSTRALIA-based Staywell Hotel Group is pressing on with its move to expand into Singapore, despite the challenge of finding a suitable site to build.

Speaking to TTG e-daily, CEO Simon Wan said that he was delighted with the performance of Staywelll’s Park Regis Singapore since it opened last November. Occupancy for the property is now up to 90 per cent, and Wan is bullish about the hotel group’s future prospects.

He said: “Singapore is a good starting point for any hotel wishing to break into the South-east Asian market. It is our strategic gateway to the rest of the region.”

Wan explained that Staywell had tendered for a site behind the Park Regis along Havelock Road in June last year as part of its expansion plans. But they were outbid by RB Capital, which plans on constructing a Holiday Inn Express.

He said that the company was currently studying various sites. He did not reveal which sites had caught the group’s attention, but said that it had to be big enough to accommodate at least 300 rooms.

While Wan confirmed that the company was also looking to expand its three-star Leisure Inn brand in Malaysia and Thailand, it may not do the same for Singapore.

“The high cost of land is putting a lot of pressure on us to ensure that we secure a good financial return on our investment. We keep asking ourselves, ‘What is the risk and return in Singapore compared to other investment opportunities outside Singapore?’ Staywell needs to examine both the Singapore hotel market and the financial feasibility of opening a hotel from scratch.”

He added: “There is definitely an obvious gap in Singapore for three-star leisure properties to cater to tourists to diversify the Singapore market.”

LION AIR began daily flights on its Kuala Lumpur-Jakarta route on June 29.

The budget airline is using its new Boeing 737-900ER that can seat 215 for the route. Starting rates are from as low as 139 ringgit (US$46) one-way, including airport tax and fuel surcharge.

Lion Air president Rusdi Kirana said the Kuala Lumpur-Jakarta route has strong potential and that the airline has high expectations of excellent loads.

“Lion Air may be operating as a low fare airline, but we are pleased to be flying from the Kuala Lumpur International Airport’s main terminal, which will be an added comfort for passengers, as aerobridge services allow for easier access,” he said.

“Fares are inclusive of 20kg of check-in baggage and up to 7kg of hand luggage. Seats are also assigned at the check-in counters or reserved through our Internet check in service.”

With 475 daily departures in Indonesia via 150 routes to 61 destinations, Rusdi said that its Kuala Lumpur-Jakarta route would conveniently connect passengers with any of its domestic flights in Indonesia.

By Ellen Chen

JETWING Hotels, Sri Lanka’s third largest hotel operator, is planning to add 720 rooms to its current stock of 530, through the construction of eight properties over the next few years.

The company, with 12 properties under its portfolio, is investing a total of eight billion rupees (US$72 million) on its upcoming projects, which will be branded under a new cluster called Jetwing Symphony. Half of this investment will come from the public sale of company shares, a move which is estimated to reap US$36 million.

Construction on four four- to five-star properties will begin over the next three to six months. This includes an 83-room boutique hotel in Colombo, the 98-room Yala Safari hotel being rebuilt in the country’s south, and hotels in Kandy and Jaffna in the north. According to Jetwing chairman, Hiran Cooray, these properties will open in late 2012 or early 2013.

Also on the cards are three hotels in Trincomalee and Arugam Bay on the east coast, and one in Dambulla in the north central region.

Meanwhile, Jetwing Hotels last week reopened Jetwing Blue (formerly Blue Oceanic) in Negombo, after a US$8 million refurbishment (TTG Asia e-Daily, April 1).

THE RISING hotel rates in Seoul, due to inadequate supply of business hotels, is making buyers edgy about selling the destination.

Some buyers at the ongoing Korea MICE Expo said current room rates for a four-star hotel could start from US$250 a night, while a full-day meeting package offered by a five-star international hotel could cost as much as US$100 per delegate.

When a major convention swings into Seoul, room rates offered by five-star hotels near the city centre and COEX can even hit the US$350 mark, according to WOW Corea Tour president, Elvis Lee.

The increasingly-stretched supply of MICE-friendly hotels in the South Korean capital is an issue the local government must address fast, said Kim Chulwon, president of Korea Convention Society.

“Room rates were already high to begin with, as land cost is high in the city,” he said. “The government must do something to attract investors to develop more hotels here, perhaps by offering tax breaks.”

Although several hotels, such as Conrad Seoul, are due to open in the city, Lee explained that Seoul’s successful destination branding, and the popularity of K-pop and South Korean dramas, which have fanned interest in Seoul as a leisure and MICE destination, meant that room rates were unlikely to soften much.

THE INCHEON Convention Visitor’s Bureau kicked off a campaign earlier this year to lure more international medical events to the city, and is offering a slew of financial, event-planning and execution support to event organisers.

Benefits under the Medical MICE City, Incheon scheme, which started in March, are offered in addition to the usual support afforded by the bureau. The added perks include a traditional performance at a welcome or closing dinner event, a cocktail reception, post-tour programme planning and execution, and all land transfers.

Cho Kangwook, Incheon CVB manager, said: “What we are offering medical event organisers is more than just financial relief. We are doing some of their work for them, freeing them up so they need only focus on developing the conference or exhibition content.”

Medical event organisers hoping to avail of the offer need to sign their event management contracts by December, although the event can be held at a later date.

Although some South Korean cities such as Daegu are also branding themselves as medical hubs, Cho said Incheon was the only city to offer benefits to such an extent.

Cho said: “We have had a number of enquiries since we started marketing the campaign, and will embark on an event bid very soon. I expect Incheon to see five medical events in the bag by the end of the year.”

“If the campaign is successful, the bureau will enhance the benefits and extend the campaign duration,” Cho added.