Intense demand, labour pains take Japan hotel rates higher
Hotel rates in Japan are soaring as the number of inbound tourists surges and the hospitality sector’s labour shortage continues to bite.
Attracted by the weak yen and the first cherry blossom season since Japan downgraded Covid-19 to the same level as seasonal influenza, 3.08 million international visitors arrived in March, up 11.6 per cent on the same month in 2019, according to the Japan National Tourism Organization (JNTO).
The average room rate for March was 20,986 yen (US$134), equating to almost a 20 per cent increase year-on-year, and the highest level since August 1997, according to real estate company CoStar Group.
Of 48 countries surveyed in the four weeks ending March 9, 2024 by analytics provider STR, Japan led in year-on-year revenue per available room (RevPAR) growth, along with Greece, Malaysia, the Czech Republic, and Singapore. Japan also enjoyed the highest average daily rate growth of all countries, at 30 per cent.
Analysts attribute rising rates to unprecedented demand from international arrivals, together with average hotel occupancy of 78 per cent and a shortage of hotel staff.
A survey by the Japan Federation of Service & Tourism Industries Workers’ Unions shows 85 per cent of travel and hospitality business operators are limiting their operations due to not having enough workers, with 80 per cent of hotels and ryokan inns employing part-time or temporary staff to fill the gap in regular workers.
The weak yen means international tourists are able to shell out for the higher costs of hotel rooms but travel agents fear this may hinder sustainable travel in Japan.
Ramkey, an independent luxury tour guide, told TTG Asia that his clients were paying roughly 50 per cent of their travel budget on airfares and hotels, which he described as “concerning.”
“Persuading more visitors to go off the Golden Route (to less-visited areas) will continue to be tricky if the clients’ overall travel costs remain high,” he explained.
Rising hotel rates also risk pricing out domestic travellers, who made 36.7 million cumulative overnight stays in February, up 4.2 per cent year-on-year, but mostly in business hotels, which are more affordable, according to JNTO.
Kempinski Jakarta plays up Indonesian history and culture this year
Hotel Indonesia Kempinski Jakarta has launched the Legend Lives On, a year-long campaign to honour Indonesian history and culture, which the hotel hopes would allow guests to appreciate the country through different lenses.
Programmes include Mustikarasa, an F&B offering featuring Indonesian dishes from the legendary cookbook left by Indonesia’s first president, Soekarno; and interactions with The Curator, an “ambassador of cultural conduit” who will share captivating tales of Indonesia’s vibrant history and unravel mysteries of ancient traditions and local customs.
Harald Fitzek, the hotel’s general manager, said at the launch of the campaign: “Indonesia is a very diverse country, and we are always looking for new ways to introduce our guests to different aspects of Indonesia.”
He added: “”Hotel Indonesia Kempinski Jakarta has always been an important part of Indonesia’s history. Here, we always strive to do our part as the guardians of the country’s rich heritage.
Formerly known as Hotel Indonesia, the hotel opened in 1962 as the first five-star property in the country to host Asian Games IV delegates.
As Legend Lives On leads to August, when the hotel celebrates its 62nd anniversary and Indonesia’s independence, a grand party will be hosted to connect the past, present, and future through a blend of music, art, and storytelling.
In the final quarter of 2024, refreshed guestrooms will be unveiled.
Philippines is in the mood for food tourism
Gastronomy can play a pivotal role in tourism development and a catalyst for economic growth and cultural exchange in the Asia-Pacific region, according to Philippine Department of Tourism (DOT) secretary Christina Garcia Frasco.
Speaking at the 3rd World Tourism Industry Conference (WTIC) and Business Luncheon on May 9, she highlighted the diverse gastronomic landscape of the region and the benefits of using gastronomy to drive tourism.
“Gastronomy tourism is not just about indulging in delicious food; it also has immense economic and cultural benefits for the Asia-Pacific region. This form of tourism attracts food enthusiasts from all over the world, creating opportunities for local businesses, farmers, artisans, and the like. It stimulates job creation, promotes sustainable agriculture, and preserves culinary traditions that have been passed down through generations,” she said.
The Philippines’ National Tourism Development Plan (NTDP) 2023-2028 highlights the integration of food and gastronomy within cultural experiences.
“For example, Iloilo, a province in our country, has recently been recognised as a Creative City for Gastronomy by UNESCO. Additionally, regions such as Western Visayas, the Cordillera Administrative Region, Pampanga, and Cebu are actively engaging in the development of Slow Food programs. These initiatives aim to protect our local produce, ingredients, and culinary traditions by boosting demand for them. This increased demand ensures that local farmers and communities are supported and encouraged to continue cultivating these valuable resources,” Frasco said.
The Philippines will host the First UN Tourism Regional Forum on Gastronomy Tourism for Asia and the Pacific, on June 26 to 27 in Cebu.
Dusit Hotels and Resorts expands footprint in the Maldives
Dusit Hotels and Resorts has signed an agreement with Pearl Atoll to manage dusitD2 Feydhoo Maldives, which is expected to open in 4Q2024 with 125 keys.
dusitD2 Feydhoo Maldives resort will be located on a private island near the main island of Malé, accessible with a five-minute speedboat ride from Malé International Airport.
It will be the company’s first all-inclusive property, and Dusit’s second resort in the Maldives.
The resort will comprise spacious overwater villas and family suites ranging from 77m2 to 319m2, a kids club, multiple F&B outlets, a fully equipped gym, and a signature Namm Spa offering a wide range of Thai massage therapies and beauty treatments.
Guests will have access to three main private beaches and a smaller beach.
“We are delighted to be expanding our presence in the Maldives with dusitD2 Feydhoo Maldives, our first all-inclusive resort concept,” said Gilles Cretallaz, chief operating officer, Dusit International.
“The Maldives is a strategic market for us, and this exciting addition complements our existing presence in the luxury segment by offering a distinct lifestyle experience for families and young couples seeking an unforgettable and accessible Maldivian escape. We are committed to exceeding guest expectations with innovative offerings and exceptional service, and dusitD2 Feydhoo Maldives will be a shining example of this unwavering dedication,” he added.
As part of Dusit’s sustainability programme, Tree of Life, the resort will implement processes and systems that minimise environmental impact.
The resort’s developers also plan to open a resort-based entertainment hub and small convention centre, catering to guests beyond the core resort experience. More information will be announced at a later date.
Riu CEO Carmen Riu prepares for retirement
Riu Hotels and Resorts’ chief executive officer (CEO) Carmen Riu has announced that she will retire before the summer this year. She currently shares her position with her brother Luis Riu, who will now continue as the company’s sole CEO.
Riu began her career in 1977 as the manager of the hotel Riu Bali in Playa de Palma, Mallorca. Prior to that, she had worked in various hotel departments during her time as a trainee in the family business. In 1978, she took the reins of the human resources department, a responsibility that expanded to include administration and finance in 1981.
After the death of her father Luis Riu Bertrán, in 1998 she was appointed CEO alongside her brother Luis Riu Güell. Both have been responsible for the RIU Hotels & Resorts chain’s international growth and consolidation over the last 25 years.
Celebrate the art of Monet at Gardens by the Bay this July
Brought to you by Gardens by the Bay
From July 12, 2024, Gardens by the Bay Singapore debuts a fresh exhibition in a different style at its Flower Dome.
Visitors to Gardens by the Bay’s Flower Dome will get to experience a first-of-its-kind exhibition that seamlessly combines multi-sensory immersion and the beauty of nature with the Impressions of Monet exhibition.
Centred on the art, life and gardens of the master Impressionist painter, Claude Monet (1840 – 1926), visitors to the Flower Dome can experience two distinct but complementary aspects of the exhibition in one location: Impressions of Monet: The Garden and Impressions of Monet: The Experience.
Impressions of Monet: The Garden is a floral display that recreates the landscapes of the renowned gardens of Monet’s home in Giverny in Normandy, France. Monet’s house is the second most visited tourist attraction in the region.
Inside the Flower Dome, visitors will encounter a recreation of Monet’s iconic pink house and the picturesque scenes of the adjoining garden, Clos Normand and Water Garden. Plants similiar to those in the original gardens, such as hydrangeas, weeping willows, digitalis, daisies, delphiniums and geraniums will be featured.
A highlight of the exhibit is the recreation of the unusual green arched Japanese footbridge that Monet was particularly proud of, and the water lilies that will be featured in the floral display for the first time. These beautiful flowering plants are the eponymous subject of one of his most renowned works, the Water Lilies series.
Complementing the floral extravaganza is Impressions of Monet: The Experience, a multi-sensory immersive experience that celebrates the works and life of Monet and his contemporaries.
As visitors cross into the front façade of Monet’s house, they are enveloped in the sights and sounds of 19th-century Europe as imagined by Monet and his Impressionist contemporaries.
Breathtaking paintings will be projected on an enormous scale, illuminating the bold brushstrokes of Monet, Camille Pissarro, Pierre-Auguste Renoir, Paul Cézanne, Edgar Degas and many more. In a rich, dynamic display of light, colour, sound and fragrance, the masterpieces of the Impressionists will come to life.
Visitors also have the chance to examine the Impressionists’ sources of inspiration via photographs and videos displayed alongside their works.
Impressions of Monet will run from July 12 to September 17, 2024. Visit www.gardensbythebay.com.sg/monet for more information.
TTG Conversations: Five Questions with Sumesh Patel, SITA
IATA is maintaining its projection of eight billion air travellers by 2040. Such massive travel volumes will push airport operations to their limits, but not all airports are able to expand their infrastructure to cope with future travel appetites, says Sumesh Patel, president for Asia-Pacific at SITA, the IT provider for the air transport industry.
In this episode of TTG Conversations: Five Questions video news series, Patel discusses what airports are doing to prepare for higher passenger volumes as well as mounting public expectations for sustainable aviation, emerging technologies that could aid traveller processing, and obstacles in adopting available technology, including biometric clearance. He also highlights notable airport developments and digitalisation efforts in Asia, and casts his eyes on how the future of air travel could look.
Singapore Cruise Centre to make way for Greater Southern Waterfront
Singapore’s two cruise terminals will be consolidated in the coming years, with a move planned for the long-established Singapore Cruise Centre so as to make way for the Greater Southern Waterfront development.
Singapore’s other cruise terminal is the Marina Bay Cruise Centre, which opened in 2012 to service the new generation of larger and taller cruise ships.
According to a report by national broadsheet, The Straits Times, with information from Urban Redevelopment Authority’s chief executive Lim Eng Hwee, the port move would come with “a lot of infrastructural work”, including land reclamation from the sea, and would result in a larger cruise hub.
Lim explained that the “small move” would allow urban development authorities to “stitch up the entire waterfront” which stretches from Labrador Nature Park through to the future Long Island project off the East Coast, cutting through Keppel-Tanjong Pagar and the Marina Bay areas.
The Long Island project is expected to create space for new homes, various amenities, and a new reservoir. The public has been encouraged to share use ideas for the project, which will take decades to come to fruition.
Chinese travel to the Middle East set for full recovery by 2025
Middle Eastern travel and hospitality stakeholders expect Chinese outbound numbers to improve in 2024 and make a complete recovery by 2025.
Amanda Elder, chief commercial officer and member of the management board, Kempinski Hotels, told TTG Asia that while the number of Chinese guests at her Middle Eastern properties has been lower than that of sister properties in destinations like Bangkok, Bali, and Singapore, performance has increased noticeably this year.
“We anticipate that within the next 18 months, visitor numbers from China will return to their pre-Covid levels,” said Elder.
According to HBX Group, one of the leading B2B players in travel tech space, Chinese outbound to the Middle East grew by 10 per cent in the 2024 fiscal year (October 2023 to September 2024) when compared against the previous year. The most popular Middle Eastern destination among Chinese outbound travellers for 2024 fiscal year was Dubai, with Doha, Medina, and Kuwait making up the rest of the list.
Paul Anthony, digital commercialisation director of HBX Group, said: “Among Chinese outbound to destinations in the Middle East, around 30 per cent of arrivals stay between four and six nights while more than 20 per cent of them stay more than seven nights. The Chinese look for culture, shopping and luxury experiences while in the Middle East.”
DMCs in the region told TTG Asia that Chinese incentive travel movement has turned out stronger than leisure traffic.
Samir Mehta, chief operating officer, Desert Adventures Tourism, said enhanced air links between China and the Middle East are a factor.
“Recently, we managed a large group of nearly 1,400 Chinese incentive winners,” he shared.
Chinese outbound travellers polled by Dragon Trail International (DTI) six weeks before the May Day holiday reveal emerging trends on preferred information and booking source and type of media, and new attitudes towards spending.
According to Sienna Parulis-Cook, director of marketing and communications, DTI, the key takeaways from the latest survey are as follows: Chinese social media and e-commerce platform Xiaohongshu is the leading source of destination information; video content has the deepest impact; the traveller is price conscious but is willing to spend; outbound travel intent is much higher than in 2023; there are more plans to venture beyond Asia; and the perception is the world is safer than before.
In ranking channels used for destination information, Janice Meng, market research analyst, DTI, said Xiaohongshu was top at 52 per cent, Douyin 43 per cent, Ctrip 37 per cent, and tying with friends, family and acquaintances, and 36 per cent bloggers and key opinion leaders.
Elaborating on booking channels, Meng noted 60 per cent would pick domestic platforms likes Ctrip and Qunar, 38 per cent via travel agents and social platforms like Xiaohongshu and WeChat; 27 per cent directly on official airline and hotel sites; 23 per cent with offline traditional travel agencies; 22 per cent with domestic review-sharing platform like Mafengwo, 21 per cent on international booking platform like Booking.com, and 17 per cent on online traditional travel agencies.
She noted current attitudes on outbound travel spending show 58 per cent “considering carefully to get the best value for money”, and 14 per cent choosing products with the best price.
Parulis-Cook added: “Chinese travellers are definitely price conscious right now, are seeking value for money, and actually see outbound travel as delivering better value for money compared to domestic trips, especially during Chinese national holiday periods.
At the same time, Meng pointed out that 11 per cent of respondents said they would choose the best products and services regardless of cost and, and another 11 pet cent said they were willing to increase their budget for better experiences.
Based on international departure ticketing data as of early-April. Nancy Dai, China market expert, ForwardKeys, who also spoke at the webinar, cited demand from China for European destinations was being driven by affluent travellers
Dai said the percentage difference for premium travel in 2Q2024 vs 2Q2019 was only minus three per cent; and the top-three destinations of Geneva increased 105 per cent, Copenhagen 55 per cent and Madrid 49 per cent.
In summing up which overseas destination marketing initiatives had the biggest impact among those polled, Meng shared the top three destinations were Thailand, Singapore and Japan; Douyin, Xiaohongshu and TV for platforms; cuisine, scenery and culture for content; and video, live streaming and advertisements for delivery preference format.
Popular reality shows also succeeded in familiarising Chinese audiences with overseas destinations, like in the case of Iceland featuring in the TV show Divas Hit the Road, Meng added.
There were 1,015 survey responses and Parulis-Cook pointed out that 56 per cent of respondents were female.