Malaysian tourism players to adjust rates to accommodate service tax increase
Travel package prices in Malaysia are poised to rise in the upcoming months due to the recent increase in service tax rates, which have surged from six to eight per cent as of March 1, affecting all taxable services.
Zahira Tahir, founder and CEO of Universal Holidays, noted that some hotels have already begun applying the eight per cent service tax rate, while most hotels will implement it during the new contracting period starting April 1. She added that her company will also raise rates by two per cent from next month onwards to offset what suppliers are charging them.
Bobby Eng, general manager of Overseas Tours and Travel, mentioned that while his hotel partners are still imposing the six per cent tax, coach vendors and restaurants are now charging the company the revised amount.
Despite this, Eng stated that since they bill clients in foreign currencies like the Hong Kong dollar, Singapore dollar, and the US dollar – and given the weakened ringgit against these currencies – they can still manage to absorb the costs. “For new quotations starting this month, we will be adjusting the package rates by two per cent.”
Expressing concern, Arokia Das Anthony, executive director of The Essence of Asia Tours and Travel, highlighted that the increase in service tax rates could discourage potential tourists from visiting Malaysia.
He stated: “We operate in a fiercely competitive environment where every dollar counts. We cannot afford to lose business to Thailand, Indonesia, or Vietnam. We need to engage in negotiations with our vendors and reassess pricing strategies. Additionally, we must explore innovative ways to enhance the customer experience without inflating costs.”
Japan is now present in Sweden
The Japan National Tourism Organization (JNTO) has opened an office in Stockholm, Sweden on March 4 to build up destination promotions in Nordic countries, one of its priority markets since 2023.
The office will join manage JNTO’s tourism promotion activity in Sweden, Denmark, Norway and Finland, which were growing markets pre-pandemic. The number of inbound travellers to Japan from Nordic countries has long been increasing, rising from 92,917 in 2014 to peak at 141,004 in 2019.
Although the market has not fully rebounded, resulting in only 96,295 arrivals in 2023, confidence is high due to the uptick in Scandinavian visitors at snow resorts this winter and the launch of more flights connecting Japan and the region, including All Nippon Airway’s route between Haneda and Stockholm debuting in 2024.
“Overseas travel is very active in the Nordic region, which has a lot of potential for market development. With new direct flights scheduled to begin in 2024, we will seize this opportunity and work with Japanese tourism-related businesses to attract tourists,” said JNTO in a statement.
The new office will promote sales of Japan tours by local travel agents, develop relations with local media, carry out market analysis, disseminate tourist information to consumers and provide support to host international conferences.
More attention to climate justice needed
As the tourism industry continues on its challenging journey towards net-zero, it is key that climate justice is kept at the forefront and support is given to the most vulnerable destinations, opined a speaker at ITB Berlin 2024.
Jeremy Sampson, CEO of The Travel Foundation, said a recent report released by the organisation revealed that under a business as usual scenario, by 2050, the tourism industry will be responsible for 66 per cent of global carbon emissions.
Aviation is particularly polluting and is responsible for 55 per cent of all tourism’s emissions. Longhaul flights make up 90 per cent of the sector’s global carbon emissions, despite only accounting for 1.9 per cent of all trips.
He noted that while multiple policies are being implemented to decarbonise the industry, it is key that frameworks take into account the carbon economies of developing and less developed countries.
“Some destinations are better placed to transition to a low carbon economy than others,” he said. “How can we ensure destinations that are less developed, or completely dependent on longhaul tourism, are not left behind?”
To achieve this, bolstering destinations must form a crucial part in the next step in climate action and tourism.
“This means target strategies for building resilience for enriching natural resources, not depleting them; for providing nature-based solutions, such as replenishing mangroves and reefs protecting tourism assets, not destroying them; and protecting wider communities from damages that will occur as wildfires spread and the increase in natural storms.”
He said the only way to achieve this is to listen to these destinations and communities’ needs.
Sampson added that with regard to the divide between the Global North and South and decarbonising the aviation industry, serious conversations need to be had regarding climate justice.
“Can we really expect developing economies in the Global South to hold off from building airports and new air routes when they look at the amount of flying and connectivity that Europeans and other economies have already enjoyed? Of course, we can’t do that.”
In April, Travel Foundation will publish a white paper on climate justice and ways the industry can approach the issue fairly.
“We need to ensure that the most vulnerable destinations, often those who have done the least to cause this problem, can be supported. We must start now to avoid worsening the situation,” Sampson added.
He recommended incorporating sustainability and climate action plans into business plans, and, instead of pumping huge budgets into promotion, make “meaningful investment” in these destinations.
“Destinations without the resources to act are often hit with multiple requests to raise standards to help demonstrate the industry credibility and sustainability credentials, but are not being supported to do so,” Sampson said.
“This is a call to action to identify the bigger ecosystem within which you exist and the organisations that are best placed to influence it, and to spend the money and resources that are required to support the change that needs to occur.”
Scoot expands services to Malaysia, Thailand with new E190-E2 aircraft
Scoot, the low-cost subsidiary of Singapore Airlines (SIA), has unveiled the six South-east Asian destinations that its fleet of new Embraer E190-E2 aircraft will fly to – Krabi, Koh Samui and Hat Yai in Thailand; and Kuantan, Miri and Sibu in Malaysia.
Expected to begin operations in May, Scoot’s E190-E2 services will offer direct connections to and from Singapore.
The first E2, aptly nicknamed Explorer 3.0, is expected to arrive in Singapore in April, and will take over Scoot’s existing flights to Krabi and Hat Yai from May 7, increasing flight frequencies to both destinations from 7-times to 10-times weekly.
The second E2 is also scheduled for delivery in April and will allow Scoot to operate to four additional cities – Koh Samui, Kuantan, Miri, and Sibu. Daily flights to Koh Samui will commence from May 13, with the frequency progressively increased to twice daily from early June.
The addition of the second E2 will also allow Scoot to increase its frequency to Miri and Kuantan from three to four times weekly from May 20 and June 3, respectively, as well as launch thrice weekly flights to Sibu from June 5.
Together with destinations served by Scoot’s existing fleet, the airline would operate 103-times weekly flights to Malaysia and 92-times weekly flights to Thailand by June.
Thai Airways regains control of its future in 2024
After a nightmare 2022 when the airline recorded a loss of 272 million baht (US$7.6 million), Thai Airways International (THAI) entered the new year with cause for optimism following the announcement that net profit totalled 28.1 billion baht in 2023.
According to THAI’s statement concerning its end-of-year report, 4Q2023 saw the carrier and its subsidiaries’ total record revenue, excluding one-time transactions, of 45,170 million baht – 14.4 per cent higher than the same period in 2022.
On top of a general rebound in aviation and the tourism industry, leading to increased passenger demand and higher ticket sales, THAI cites a restructured debt programme and asset sales as significant contributing factors.
Many of the airline’s creditors have committed to reducing interest payments and extended repayment terms, which will see THAI finish up the court-supervised restructuring ahead of schedule before the end of this year.
By sticking to the agreed timetable and honouring repayment obligations, THAI will be able to return to The Stock Exchange of Thailand and resume trade in 2025, four years after being suspended.
The healthy financials have made 2023 the second most profitable year for the Kingdom’s national airline and is the third time THAI has recorded positive gains in nearly 15 years – a welcome reverse for the company, which filed for bankruptcy in 2020.
With a healthier bank balance, the airline is in the position to enhance its fleet and has signed an order with Boeing for 45 new aeroplanes (with the option to increase the order to 80), the biggest order in Thailand’s aviation history. On top of that, the carrier has also requested three new A350-900s from Airbus to help serve rising passenger demand.
Saudi woos Malaysia at trade show with new initiatives
Saudi Tourism Authority (STA) has unveiled a series of initiatives during its 2024 Malaysian Trade Roadshow held at the Westin Kuala Lumpur on the March 4, reinforcing the Kingdom’s commitment to Malaysian visitors.
The trade show saw the attendance of 18 Saudi stakeholders including DMCs, hotels, transportation partners and travel agents.
This marks a significant milestone in Saudi’s commitment to welcoming global visitors, aligning with Saudi’s Vision 2030, which envisions welcoming 150 million annual visits by the end of the decade. Notably, Saudi has been recognised by UNWTO and WTTC as the fastest large growing destination with international arrivals having increased by 156 per cent compared to 2019.
Malaysia is among the 63 countries eligible for Saudi Arabia’s e-Visa programme, making it easier for Malaysian travellers to visit the destination. Malaysian passport holders having the UK, Schengen or the US visit visas are also eligible for e-visa and visa on arrival.
In addition, the recently launched 96-hour Stopover Visa grants visitors travelling with SAUDI and Flynas the opportunity to spend up to 96 hours in Saudi continuing their onward journeys, making Saudi the perfect stopover destination for Malaysian travellers.
Moreover, Saudi’s airline capacity has increased in the past year alone to over 700,000 seats across three main carriers – Air Asia X, Malaysia Airlines, and SAUDIA – with plans to further increase frequency to cater to the growing demand.
During the roadshow, STA announced the unveiling of enhanced Umrah+ packages tailored specifically for Malaysian pilgrims. Accessible through the Nusuk platform, these packages simplify e-visa application processes and present curated experiences, inviting Malaysians to explore Saudi’s rich culture, historical treasures, diverse landscape, and exclusive events and festivals, such as AlUla Skies Festival, and Winter at Tantora.
Fliggy, Amadeus to give travellers more hospitality options
Online travel platform Fliggy has partnered with Amadeus by signing on to Amadeus Value Hotels, offering its customers an extensive array of hotel options worldwide.
Fliggy’s corporate travel management division Alitrip has also signed an agreement to support its customers’ corporate travel in and out of China, allowing its customers to shop and book hospitality content via the Amadeus Travel Platform.
Founded in 2016, Fliggy, a wholly-owned subsidiary of Alibaba Group, provides comprehensive solutions for Chinese travellers looking to book airline and train tickets, accommodation, car rental, package tours, and local attractions.
The incorporation of Amadeus Value Hotels into Fliggy’s platform enables Fliggy’s customers to access an even wider range of property types, destinations and room details at the time of search and booking. The platform will give both Fliggy and Alitrip customers access to real-time rates and the content they need to serve their customers.
Xiaochen Zhou, international hotels general manager, Fliggy, commented: “This expanded partnership strengthens our commitment to meeting the evolving needs of modern travellers and providing them with a seamless and enriched travel journey.”
“As the travel landscape evolves, our partnership with Fliggy ensures that its customers have access to a broader range of hotel content tailored to its preferences,” commented Joerg Schuler, executive vice president, media & distribution, hospitality, Amadeus.
Head for an adventure with Aurora Expeditions
Aurora Expeditions, an expedition company in Australia, has released a suite of unbeatable new adventure deals for travellers wanting to book the trip of a lifetime in 2024 and 2025.
From now until June 30, explorers can choose from an array of adventures with combinable air credits and voyage fares on offer, on the expedition company’s voyages to Antarctica, the Arctic, and beyond.
Arctic & Beyond 2024 adventures comprise Across the Arctic Circle departing June 6; Greenland Odyssey departing July 6; Jewels of the Arctic departing July 7; and Northern Lights Explorer which departs on September 8.
Starting in the later part of the year are the Antarctica 2024-2025 expeditions, such as Spirit of Antarctica on October 27; Antarctic Peninsula in Depth on November 6; South Georgia and Antarctic Odyssey on November 19; Antarctic Explorer on January 26, 2025; and Across the Antarctic Circle, which departs February 23, 2025.
For more information, visit Aurora Expeditions.
THAI adjusts flight schedules to accommodate stranded passengers in Germany
Thai Airways International (THAI) has adjusted its flight schedule between Thailand’s Bangkok and Germany’s Frankfurt to accommodate passengers stuck at the airport due to the strikes by ground staff and airport security workers at Frankfurt Airport on March 6 and 7.
The flights will be operated with Boeing 777-300ER which has a capacity for 348 seats.
Flights to Frankfurt will depart Bangkok at 12.40 and 23.40 on March 7; at 12.40 on March 8; and at 07.30 on March 9.
Flights to Bangkok will leave Frankfurt on March 8 at four timings: 15.45, 13.45, 14.45 and 20.55; and at 15.45 on March 9.
All timings stated are in local time.
Passengers scheduled to fly on those days can visit THAI’s website for updates.
India’s STIC Travel Group has teamed up with Singapore’s leading professional development and enrichment company, Mastereign Group, to introduce the Red Dot Green City programme, a specifically designed product for the Indian market that focuses on educational tours for students, corporates, MICE and families showcasing Singapore’s sustainable living practices.
lsha Goyal, executive director & CEO, STIC Travel Group, remarked: “Travellers today are looking at experiential tours. It took us six months of brainstorming to co-create the programme with Mastereign. This programme will help participants understand how Singapore is a ‘living’ laboratory of sustainability and conservation. These unique tours besides allowing visitors to explore Singapore’s eco-friendly advancements will also club popular tourist destinations like Sentosa Island, blending leisure with learning experiences.”
To begin with, the duration of the Red Dot Green City programme will be five nights and six days for an average group size of 20 to 25 pax. The programme will have various themes like ‘Urban Farming and Food Security’ wherein participants will be offered the Sky Greens Vertical Farm tour – a unique 90-minute learning experience at the world’s first low-cost, hydro-powered vertical farm. Other themes like ‘Land Use and City Planning’ will include an immersive walk-through experience showcasing the transformation of Punggol – Singapore’s first eco-town.
“Presently, China is a very big market for educational programmes. India is not yet there in terms of numbers but hopefully we will have a first mover advantage with the launch of the Red Dot Green City programme. Other Asian markets where we see potential for similar educational tours include Vietnam and Indonesia,” said Terry Lim, managing director, Mastereign Group.
STIC Travel Group will be promoting the Red Dot Green City programme through both B2B channels and engaging with educational institutes directly in India.