Gulf boosts Guangzhou’s tourism fortunes
Strong arrivals from Gulf states are driving recovery in China’s Guangzhou, with one hotel reporting rebound to pre-pandemic levels.
Franco Io, general manager of LN Garden Hotel, reported 100 per cent recovery in 2023 compared to 2019. “We’ve been surprised at how fast the foreign market has recovered,” he said.
He noted that the rebound has been predominantly led by Gulf states, mainly due to Emirates and Turkish Airlines being two of the first airlines to resume routes there.
“When China opened, they started flying immediately and this helped drive business from the Gulf,” Io added.
“In the Gulf states, everything is sparkling and new, and there is a lot of that going on in Guangzhou and China, so that has helped.”
Io said the surge in arrivals from Gulf states has been followed by strong South-east Asian arrivals. There was also a pick-up in arrivals from the European and North American markets at the end of 2023.
He added that arrivals are a healthy mix of business and leisure travellers keen to explore a destination that “flies under the shadow of Shanghai and Beijing”, but offers better value for money.
In addition, he noted an uptick in business travellers extending their stay for two to three days.
European tourists lifts tourism in Southern Thailand
European travellers have turned out to be Southern Thailand’s strongest tourism drivers, pushing up hotel performance to record-breaking levels while staying for weeks at a time.
According to a Bangkok Post report, tourists from Russia, Scandinavia and Germany, drawn to the region’s natural beauty, are the main contributors to an occupancy rate of 90 per cent or higher.
Pongsakorn Ketprapakorn, former president of Phang Nga Tourism Council, said: “Many hotels in the province, especially in Khao Lak, can charge higher room rates of between 6,000 baht (US$168.50) and 10,000 baht per night, exceeding the average of 5,000 baht in 2019.”
Ketprakorn explained that despite the surge in Chinese arrivals – nearly a fifth of all arrivals in 2023 – Phang Nga has no real access to a consumer base attracted to beach holidays and urban entertainment. The tourism sector contributes only between five and 10 per cent to the province’s economy.
Hotels in Krabi have also benefitted from long-term European visitors.
Charintip Tiyaphorn, owner of Pimalai Resort and Spa at Koh Lanta of Krabi, told the media that Chinese tourists were unable to secure any rooms during the Lunar New Year holidays, because it was 90 per cent booked by Europeans who had made their reservations up to 180 days in advance, beating out Chinese guests who tend to book closer to their travel time.
The strong advance demand allowed Pimalai Resort and Spa to punch up rates to in excess of 900 baht across all accommodation types.
Despite the Thai government’s enthusiastic embrace of China as key source markets with high-profile schemes to bolster the kingdom’s tourism industry, local tourism players believe that flight shortages and the destination profile of Southern Thailand may have dampened the potential for Chinese arrivals growth.
A Krabi Tourism Association spokesperson pointed to a shortage in direct flights from China to Krabi. Prior to Covid-19, the region had traffic from five cities in China.
Freelance travel agent, Lek Nawat, told TTG Asia that Chinese travellers were still more drawn to “established tourist centres, like Bangkok, Pattaya and Phuket, where some of them feel more secure and confident” about moving around.
She explained: “Chinese tourists are still quite cautious when it comes to travel. Less well-known destinations raise lots of questions regarding activities, food, health and safety, and whether they can use digital payments. Never underestimate the importance of WeChat. There is also a lack of demand to visit (places) perceived to be off the beaten path.”
Seoul International Travel Mart 2024 eyes Asia-Pacific growth markets
Seoul Tourism Organization is gearing up for Seoul International Travel Mart (SITM) 2024, slated to be held at Seoul Dragon City from June 17 to 19, 2024.
In 2023, the annual B2B trade show – the largest in South Korea – was a success, where it welcomed 501 buyers and sellers, and 3,027 business meetings were held.
Yunyeong Kim, STO’s assistant manager, told TTG Asia: “(Other tourism agencies of municipal governments) will also be participating at the show. Our target is to attract around 600 buyers and sellers this year, and organise over 3,300 meetings. Both buyers and sellers are invited to register via our website.”
For SITM 2023, Kim shared that 60 per cent of buyers were from Asia-Pacific, with the other 40 per cent from the rest of the world, but this year’s focus will be more on potential growth markets in Asia-Pacific.
“We are targeting to attract more leisure visitors from Vietnam, Thailand, the Philippines, and China, for 2024; especially China, as visa processes have been eased.”
Flights out of Germany impacted as airport, security staff go on strike
Up to 80 per cent of Lufthansa Airline flight programme will be affected between March 6 evening and March 9 morning (Central European Time) as German ground staff at Deutsche Lufthansa , Lufthansa Technik, Lufthansa Cargo and other companies go on strike.
A notification from the airline states that flights operating from Frankfurt, Dusseldorf, Cologne and Hamburg airports will not be possible during this period.
Frankfurt airport, Germany’s busiest, will also be closed to passengers with planned departures today (March 7) due to a security staff strike organised by Germany’s Verdi union.
With the strikes coinciding with ITB Berlin 2024, a travel tradeshow attended by the world’s travel and tourism professionals, some overseas exhibitors and participants have chosen to cut short their attendance and leave the city on March 6 or by the morning of March 7, especially those with urgent commitments in the coming days and could ill afford being stuck in Berlin.
Furthermore, the country’s train drivers with Deutsche Bahn have also walked out of their duties starting today, impacting rail services at varying extent from region to region. The Berlin S-Bahn will deploy an emergency schedule during this period, and commuters have been warned that vehicles would be packed and waiting times would be extended.
This has caused delays in ITB Berlin attendees reporting to the venue on March 7. Within the Asia-Pacific halls, for instance, many booths were still missing representatives and buyers at half an hour past the 10.00 opening of business appointments.
A Middle Eastern exhibitor, who declined to be named, expressed concerns yesterday of a possible poor buyer turnout on March 7, the last day of the event.
However, several Asian sellers remain upbeat on March 7 morning, saying potential business loss would be minimal since it was common for most buyers to pack their meetings and appointments into the first two days of the tradeshow; the bulk of their appointments have been fulfilled.
Anxious show attendees have earlier flocked the massive Lufthansa Group stand, which also houses representatives of Eurowings, Brussels Airlines, and Edelwiess, to enquire about their flights and rebooking procedures, prompting the aviation company to put up notices at its reception to inform guests that rebooking services are not possible onsite.
According to local news reports, disgruntled staff are demanding higher pay and better work conditions.
Centara pursues more management contracts to expand
Centara Hotels & Resorts is working towards being the top 100 hotels in the world, in terms of the number of operating rooms, and it plans to do so by securing more management contracts over the next five years.
“To do this, we probably need another 5,000 to 6,000 rooms. A quarter of this anticipated growth is going to be owned, while the rest are managed. With our own real estate, we also want to double the revenue within the next five years,” Michael Henssler, chief operations officer of Centara Hotels & Resorts, told TTG Asia at ITB Berlin 2024.
As Centara owns about one-third of its portfolio, Henssler said the company has empathy for fellow owners, and this is an advantage when it bids for management contracts.
At the moment, out of Centara’s 52 properties, around 20 are owned, while the rest are management contracts.
Henssler noted that resources for expansion are not a problem for the hospitality group, as it is backed by Thai multinational conglomerate Central Group.
“While Centara is renowned in Thailand, the perception of the brand outside of the country is not where it deserves to be, and this is our largest challenge. As a management company, we have an awful lot to offer, but property owners don’t know about it,” Henssler opined.
As to where future properties might be, Henssler pointed to home turf opportunities with Centara’s other hotel brands, such as COSI Hotels by Centara in a fourth-tier Thai city.
Vietnam, Laos, Indonesia, and Malaysia, as well as China, the Middle East, and North Africa are also destinations the groups wants to thrive in.
Henssler is also exploring popular resort destinations like Indonesia’s Bali, and Lombok, and Malaysia’s Kota Kinabalu, stating that Centara has “a lot of credibility in resorts”.
Overall, Henssler is optimistic about Asia’s travel sector, stating that it has rebounded strongly, and that the region is still value for money and safe.
However, he posited: “At the moment, growth rates in Asia are phenomenal, but I’m unsure of how long it can be sustained in this global climate. The only certain thing is uncertainty, so let’s stay vigilant, let’s stay creative, and let’s be humble.”
Radisson Red to debut in Auckland
Radisson Hotel Group (RHG) will introduce its first Radisson Red property to Auckland, New Zealand, set to launch in 2025.
Owned by developer Stonewood Group, the purpose-built 322-key Radisson Red Auckland is located in the heart of Queen Street and will offer accommodation ranging from Standard Rooms to two-bedroom suites. Guests will be able to enjoy access to an all-day dining restaurant, a wellness facility as well as four function rooms.
The hotel forms an integral component of a mixed-use commercial development, incorporating dining establishments including a rooftop specialty restaurant, and retail outlets.
With close access to Auckland’s key attractions, guests can take a 10-minute walk to the Auckland waterfront or visit popular tourist attractions, casinos, art galleries, parks, and museums.
“Auckland is fast becoming one of New Zealand’s top tourist destinations renowned for its multiculturalism and culinary influences, making it an ideal and thriving market to launch the Radisson Red brand.” said Lachlan Hoswell, managing director, Australasia, RHG.
“The Radisson Red brand is an ideal brand that diversifies our real estate portfolio, with a strong commercial and operational value proposition with a distinct design concept that helps guests immerse themselves into Queen Street’s thriving arts district,” added Michael Chow, co-founder and director, Stonewood Group.
Vietjet launches new services to Melbourne and Hiroshima
Vietjet is expanding its international flight network by introducing brand new routes from Hanoi to Hiroshima in Japan and Melbourne in Australia.
The Hanoi-Melbourne route will commence operation on June 3, operating twice weekly on Mondays and Fridays from Hanoi, arriving Melbourne later that day. Return flights depart Melbourne on Tuesdays and Saturdays.
Vietjet will debut direct flights between Hanoi and Hiroshima starting May 12, which will operate twice weekly return flights on Thursdays and Sundays.
New hotels: Lanson Place Causeway Bay, Swiss-Belhotel Airport Yogyakarta and more
Lanson Place Causeway Bay, Hong Kong
After a substantial refurbishment, Lanson Place Causeway Bay, Hong Kong has reopened with a new look, boasting 188 rooms and suites, including six penthouses.
The hotel offers a restaurant and bar on the first floor, an all-day lounge, new meeting areas and zones, as well as a new gym and wellness area.
The property is close to the city’s major business and commercial hubs, with access to malls, shops, eateries and bars. Guests can also visit landmarks such as the Peak, Victoria Harbour, Central and the West Kowloon Cultural District.
Swiss-Belhotel Airport Yogyakarta, Indonesia
Swiss-Belhotel Airport Yogyakarta, located in Kulon Progo in the Yogyakarta province, offers 167 rooms and suites, restaurant, lobby lounge, outdoor swimming pool with views of the Kulon Progo Region. Other facilities launching soon comprise a family room and suite, sky lounge and rooftop bar, fitness centre, kids’ corner, spa, and event venues.
The new hotel is situated just five minutes from Yogyakarta International Airport, ideal for business travellers and tourists looking for a stay in the city while exploring Yogyakarta or transiting before connecting to various cities in Indonesia or abroad via the airport.
Novotel Sihanoukville Holiday Resort, Cambodia
The 215-key Novotel Sihanoukville Holiday Resort is located directly on Independence Beach in Sihanoukville, Cambodia, and is just 25km from Sihanoukville International Airport.
The hotel offers eight room configurations, ranging from Standard Rooms to Suites. Interconnecting rooms are also available for families and larger groups. Facilities include four restaurants, 24/7 in-room dining, beachside infinity pool, kids’ pool, kids’ club, and ballroom.
Nature enthusiasts can discover the mangroves, forests, and coral reefs of Ream National Park and the picturesque Kbal Chhay Waterfalls.
Penang Marriott Hotel, Malaysia
Penang Marriott Hotel features 223 guestrooms boasting sea and city views, with facilities such as dining options, fitness centre, outdoor infinity pool, kids’ club, as well as meeting venues such as a pillar-less ballroom and five flexible function rooms.
The new hotel is situated in the central location of George Town, a UNESCO World Heritage Site, on Gurney Drive.
Asian destinations turn to tourist fees to fund maintenance and development
- Visitor fees imposed in Asia so far are too low to put off travellers
- Fees are no good for quelling overtourism, but will provide regular revenue for destinations to use on tourism infrastructure maintenance
- Industry players urge transparency in collection and usage
Bali is the latest destination in a line of others across the world to impose a visitor fee aimed at preserving the condition of the land, and will likely not be the last to do so as tourism authorities seek ways to better manage tourist flows and fund tourist infrastructure maintenance.
Since February 14 this year, all international visitors entering Bali have to pay a one-time levy of 150,000 rupiah (US$10) per person. The Bali government has said that the collection will be used to fund the preservation of Bali’s unique cultural heritage and to reinforce sustainable tourism efforts. The first year of takings, estimated at 250 billion rupiah, will specifically be used for cultural preservation programmes and critical waste management.
In October last year, the Japanese island of Miyajima, located in Hiroshima Prefecture and famed for the UNESCO World Heritage site of Itsukushima Shrine, began charging an entry tax of 100 yen (US$0.66) per entry or 500 yen for a one-year pass. Hatsukaichi City officials, who oversee Miyajima, say the visitor fee will be used for sustainable tourism development, including measures to alleviate visitor congestion, as well as the maintenance of the ancient shrine.
A tourist fee was also set to commence this year in Thailand, but has since been put on hold. Part of the collection was meant for a new health and accident insurance for foreign tourists, which is now funded by the nation’s coffers. The insurance coverage of up to 500,000 baht (US$13,861) per traveller involved in any accident while holidaying in the country – or up to one million baht in the event of death – is facilitated by Thailand’s Ministry of Tourism and Sports, and the National Institute of Emergency Medicine under the Ministry of Public Health.
Other popular Asian destinations, such as Jeju in South Korea as well as Taketomi and Amami in Japan, are mulling tourist fees.
Jeju intends to use the fees to manage waste brought on by its booming tourism industry. Discussions back in mid-2023 said tourists could expect to pay a fee for every night of stay on the island along with a one-time entry fee and vehicle rental surcharges.
Taketomi in Okinawa, which encompasses World Natural Heritage Site Iriomote island, submitted a draft plan last year for a visitor tax starting in fiscal year 2024. The income would be used to ease the strain on local infrastructure and reduce environmental damage caused by tourists, who numbered more than one million annually pre-pandemic.
Nearby island chain Amami, another World Natural Heritage Site, is also considering imposing taxes or asking for donations from visitors to help protect the endemic species and natural environment that make it one of the world’s biodiversity hotspots.
A welcome charge
Indonesian inbound operators say Bali’s tourism levy, which is a low US$10 equivalent, is not met with resistance, especially not European travellers who are used to higher tourism and accommodation taxes within Europe.
However, they feel that applications and payment systems could be improved. Presently, travellers are required to access a different link each for visa-on-arrivals, e-customs declaration, and the Bali Tourism Levy.
Ricky Setiawanto, director of business development at Panorama Destination, remarked that a single channel for all procedures would have been better for travellers.
Miyajima’s tourist fee, which is small change for travellers, has also not met with resistance.
Will it work?
When asked if the entry fee has helped to ease overcrowding on the famed island, Hatsukaichi City’s Miyajima Planning and Coordination Division, director, Shunji Mukai, told TTG Asia that “there has been no change in the number of visitors before and after the introduction of the Miyajima Visitor Tax”.
However, all is not lost, as the city is assured of “stable and continuous annual revenue of 350 million yen as a financial source” – a hefty amount that is being put to good use, from “improving transportation access and enhancing amenities such as cleaning and maintaining toilets and rest areas, to projects related to the preservation and inheritance of Miyajima’s traditions and culture”.
One such project is the Another 1000 Years for Miyajima project, launched in 2023 to promote the development of Miyajima as a sustainable tourism destination with activities for everyone.
Mukai is certain that the Miyajima Visitor Tax is a necessary system, as it makes travellers “bear some of the costs” of realising tourism that “adequately addresses the needs of visitors, tourism industry, environment, and host communities while fully considering the current and future impacts on the economy, society, and environment”.
“Visitors are required not only to be travellers and consumers but also to engage with the community as contributors to the creation of sustainable tourism destinations,” stated Mukai.
Proper and sustainable management of a destination is critical if it wishes to be a “repeatable” attraction for travellers, opined Hiroshima Tourism Association’s chief producer and executive director, Shotaro Yamabe.
“In the development of repeatable tourism destinations, it is essential to ensure the satisfaction of tourists,” said Yamabe, adding that destinations must at least maintain “basic qualities” to avoid stressing visitors and the Miyajima Visitor Tax will help fund the delivery of such basic qualities.
While these fees will enable travellers to contribute to positive destination development and care, industry players have called for transparency in tracing collection and usage.
Ewan Cluckie, founder of Thailand-headquartered Tripseed, a destination operator and tour distributor committed to responsible tourism, said such financial initiatives “require proper enforcement and transparency in how funds are being allocated, something which rarely happens in reality”.
Adjie Wahjono, operations manager, Aneka Kartika Tours & Travel in Indonesia, said the tour operator community looks forward to the Bali Tourism Levy’s contribution to culture and nature preservation, and expressed hopes that the fund would also support trade promotions.
Besides such financial measures, PATA CEO Noor Ahmad Hamid said destinations could encourage better tourist behaviour through education, such as by explaining the benefits of bringing their own water bottles while exploring destinations and ordering food in moderation. Tourism organisations could also inform travellers of the challenges of overtourism, so that they can make “informed decisions on where to visit, based on the destination’s carrying capacity”.
An example of a destination-led campaign to improve travellers’ behaviour can be found in Palau, which launched an app in 2022 that allows users to accumulate points by completing eco-friendly tasks such as offsetting their carbon footprint, frequenting responsible businesses, and participating in community regenerative tourism projects.
Cluckie is all for traveller education too, saying that travellers should be encouraged to explore second-city destinations or to make the trip during low seasons so that they would contribute to a more stable flow of tourism income throughout the year.
He also urged travel industry players to do better to achieve responsible tourism growth.
“DMOs, overseas travel agents, and tour operators have a huge role to play in communicating the benefits of more sustainable trips to consumers. At the back end, DMCs must ensure their operations and procurement strategies are genuinely aligned with (sustainable) goals (instead of) prioritising profit over community well-being,” he said. – Additional reporting by Mimi Hudoyo
Sarawak has launched its Gateway to Borneo campaign alongside the signing of a memorandum of understanding (MoU) on March 5 with longhaul travel specialist Tischler Reisen to lure more visitors from the European market.
In 2023, Sarawak attracted a total of 3.9 million visitors, an increase of 93.8 per cent compared to the previous year. Of those, a total of 57,496 arrivals hailed from Europe, marking a 121 per cent year-on-year surge.
This represents an 81.5 per cent recovery in the European market compared with 2019. The UK was the top source market, with Germany snagging second place with 7,738 visitors.
Abdul Karim Rahman Hamzah, Sarawak’s minister of tourism, creative industry and performing arts, is optimistic that 2024 will see Sarawak surpassing 2019’s European arrivals.
His confidence is bolstered by the MoU signing between Sarawak Tourism Board and Tischler Reisen.
“Building on the foundation laid in 2023, this partnership is a natural progression, aimed at enhancing Sarawak’s appeal as a premier destination in the eyes of European travellers,” Hamzah said.
“Tischler Reisen is set to leverage its extensive network of 600 agencies in Germany, promoting Sarawak through diverse tour packages, both offline and online. Through this collaborative effort, we’re confident Sarawak will ascend to greater heights as a preferred destination among Germany and neighbouring European markets.”