INDIAN tour operators are bracing themselves for tough negotiations in the months to come over the country’s new proposed taxes on hotel rooms and F&B.

India’s current budget proposal includes a five per cent national service tax on hotel rooms and three per cent on F&B serving alcohol.

If passed, the taxes are expected to have a minimal impact on demand. The real battle though will play out in the B2B arena, with bottomlines as the main casualty, especially where rates have been fixed for brochures and group series.

Creative Travel joint managing director Rajeev Kohli said: “The tax is too small to impact demand – around US$40 on a US$1,000 tour – but bottomlines will suffer.”

Tour operators are examining various ways of minimising the impact on revenues. As Kohli put it: “We either fight with our partners (and get them to help shoulder the tax burden), absorb the tax – an option that will leave us bleeding – or lose business.”

Sanjeev Ticku, general manager inbound tours of Yatra Exotic Routes, said some hotels had agreed to honour agreed rates until the contracts run out. “As for the rest, we will ask them to help us shoulder the tax burden equally until the new rates kick in,” he said.

– Full report in TTG Asia

By Ollie Quiniquini

EMERGING from a strong rebound after three dismal years, tour operators and hotels are expecting that demand for Myanmar will continue to grow in 2011, despite an impending increase in room rates.

Exotissimo Travel general manager for Germany, Pantanida Jantsakool, said Myanmar was the fastest-growing destination for the Bangkok-based DMC, with sales doubling in 2010 compared to the year before.

“We’re seeing a big, big increase for Myanmar. Demand dropped a lot because of the cyclone and political problems in the last few years, but now the country is calm and stable again.”

Yangon-based Golden Trip Travels & Tours director Tilly Sand said business had also increased by at least 50 per cent from the Belgian, French and Dutch markets for the high season from October through March this year.

“We’re seeing both groups and adventure-seeking travellers, who do trekking, bike and eco-tours.”

As a sign of the booming market, Myanmar Airways International (MAI) marketing & commercial executive Aye Mra Tha said the airline was also planning to fly to Dubai by October to bring in more European travellers through a codeshare agreement with Qatar Airways.

– Full report in TTG Asia

ASIA is a major blimp on Kuoni Connect’s radar as the region grows in significance, both as a source market and a destination.

Frank Woller, Kuoni Connect’s head of sales and marketing, said the company would add Japan and South Korea as destinations by early next year. “We are evaluating (the destinations) now and looking at when and how to integrate the product in our inventory.”

Last year, Asia and the US produced the biggest growth rates for Kuoni Connect, which is striving to grow its global business. At present, Europe accounts for 70 per cent of the business, and the company is looking at both Asia and India as major destinations and source markets in the future.

Demand for Asian products stemmed mainly from European and Asian markets, said Woller, who expects double-digit growth for the region this year.

Thailand, China and Hong Kong are its top destinations in the region, excluding India, but Woller believes Singapore will feature more prominently in the years to come as the company changes its structure for the city-state.

“We will start to do our own contracting for Singapore this year, instead of relying on third-party contracts,” explained Woller. “This will allow us to be more competitive in the market.”

– Full report in TTG Asia

By Ollie Quiniquini

THE BIGGEST German tour operator to the Far East, Rewe Touristik, is seeing in excess of 15 per cent growth in bookings to the region, with chief Michael Frese saying the only blip on the horizon is rising fuel costs.

Political unrest in the Middle East has sent oil over US$100 per barrel, with airlines being forced to increase fuel surcharges. “If this continues, it will for sure have an impact on longhaul travel, as flying will become expensive. If you have to spend 250 euros just on taxes, clients with certain limitations will think twice. Now, it is not yet a problem, but if oil goes up, bookings will be affected,” Frese told TTG Asia ITB Berlin Daily.

Rewe, which operates DERtour, Meier’s Weltreisen, Jahn Reisen, ITS and Tjareborg, is seeing an overall 12 per cent rise in bookings, with growth being even to all places: 11 per cent to North America, 14 per cent to the Mediterranean, 20 per cent to Africa, even seven per cent to Australia despite the recent natural disasters. “No one’s a ‘loser’, save for Egypt and Tunisia, where bookings are down 60 per cent,” he said.

– Full report in TTG Asia

ASIAN specialist SunTrips is growing its offerings to the region, featuring more destinations in Thailand and Indonesia in its latest itineraries.

Senior sales representative Stefan Bremer-Riedl said SunTrips had included smaller islands such as Koh Tao, north of Koh Samui, as well as areas of northern Bali into its programmes.

“Response has been very good. People are increasingly looking for unspoilt places,” he said.

SunTrips is now selling a combination of north and south Bali, while its Thai line-up has more snorkelling and diving options.

Bremer-Riedl said there were 15 per cent more bookings for February compared to the same time last year. January’s performance also matched that of 2010.