Japan sticks to 60 million tourists by 2030 target
The Japanese government has pledged to uphold its target of welcoming 60 million international visitors annually by 2030 despite ongoing pandemic-related problems.
Ministers said they would keep the goal, which was set in 2016 as part of the government’s tourism strategy, despite the current entry ban on tourists and the ailing travel industry, which has been beset by numerous regional states of emergency.
Pre-pandemic, Japan was expected to easily achieve the goal based on its record inbound tourism growth, which rose from 8.3 million in 2012 to 31.8 million in 2019, according to the Japan National Tourism Organization (JNTO). In January 2020, Japan was tipped to enjoy the highest growth in international arrivals by 2022 of any country, with a compound annual growth rate of 11.3 per cent, according to a report by GlobalData.
Based on global predictions, 2024 is expected to see international travel rebound to pre-pandemic levels, and JNTO is setting 2024 as “one target” year, according to Kyoji Kuramochi, executive vice president.
“We are not changing the 2030 goal and are trying to figure out how we will be able to achieve it,” he told media, adding that JNTO is drafting strategies for recovery. These include building on efforts made during the Tokyo 2020 Olympic and Paralympic Games to raise awareness of Japan for adventure and outdoors tourism as well as barrier-free travel.
During the Games, JNTO enlisted the support of American Olympian Ashton Eaton in a tourism video commercial that was aired on major broadcast stations. It introduced new activities and experiences on offer in Japan, including paragliding for wheelchair users at Lake Biwa, near Kyoto.
Kuramochi said the Games were a “really good opportunity to draw the attention of those people around the world who are interested in visiting Japan”, and expressed hope that Japan’s high level of hygiene and wide range of outdoor activities will be big selling points in the post-Covid period. He also expects greater interest in Japan’s sustainable tourism offerings, particularly from France and Germany.
Thailand in travel bubble talks with Cambodia, Malaysia and Laos
Thailand is currently in talks with Cambodia, Malaysia and Laos to set up two-way travel bubbles in a bid to revive intra-regional travel.
Minister of tourism and sports Phiphat Ratchakitprakarn said that many international tourists are keen to visit places outside of the designated Sandbox areas, but are deterred by prevailing quarantine requirements.
As such, the tourism ministry together with the Ministry of Foreign Affairs and the Ministry of Public Health are seeking to establishment travel bubble arrangements with regional countries.
As a first step, the Thai government is negotiating with Cambodia to reopen Trat province in eastern Thailand and Cambodia’s Koh Kong island. The deal is expected to be finalised within the final quarter of this year.
Authorities are also in discussion to link Malaysia’s Langkawi Island with Koh Lipe Island in southern Thailand. Negotiations are also underway between Thailand and Laos for a similar arrangement.
Thailand is targeting to receive at least one million foreign tourists during 4Q2021 and 1Q2022. For 2022, the country hopes to receive about 15 million foreigners, and achieve 160 million domestic trips, generating 1.5 trillion baht (US$45.5 billion) in revenue or about half of 2019’s earnings.
Medical tourism eyed to revive Indonesia’s tourism sector
The Indonesian government is planning to develop medical tourism in the country so as to revive the pandemic-hit tourism sector, while at the same time, strengthening the public health system resilience.
Sandiaga Uno, minister of tourism and creative economy, said 15 class A and class B hospitals in Greater Jakarta, Bali and Medan will be piloted for the development.
“Our hospitals are not inferior to (those) overseas. Eka Hospital, for example, is the only hospital in South-east Asia to have German-made medical equipment for spine treatment,” he said.
Other hospitals he cited as examples included Mayapada Hospital that excels at curing neurological disorders and Siloam Hospitals that specialises in providing brain-related health services.
While the goal is to attract the international markets, the government will initially tap the domestic segment, particularly the affluent outbound medical travellers whose total annual spending pre-Covid reached approximately US$11 billion, according to Sandiaga.
The government will focus promotions on “8+1”, which means eight most sought-after medical services plus one for medical check-up. They include treatments for eyes, heart, and weight loss, among others.
The 8+1 will be offered as part of medical tourism packages which will also include accommodation and transportation facilities provided by trade players. The packages will be launched in November, and the government will form the Indonesia Health Tourism Board to manage and organise the programme.
Ng Sebastian, managing director of Incito Vacations, said the greatest hurdle to advancing the medical tourism sector is the distrust towards medical systems due to the lack of hospitality in Indonesian hospitals.
Agreeing, Yento Chen, CEO of Destination Tour, urged Indonesian doctors to work towards increasing patient satisfaction across the healthcare sector by learning from their foreign counterparts who were willing to conduct longer consultations with patients to put them at ease.
Sebastian urged the government to ensure that the participating hospitals have gone digital in order to scrap issues like red tape bureaucracy.
He said: “If such issues are not immediately solved by the government, travel operators will find it difficult to sell the medical packages.”
Japan’s SmartRyde nets US$1.6m in Series A
SmartRyde, a Tokyo-based marketplace for airport transfer services, has raised US$1.6 million in a Series A round led by Angel Bridge.
Other investors included SG Incubate, Yamaguchi Capital, SMBC Venture Capital, Hiroshima Venture Capital, Iyogin Capital, Inventum Ventures, serial entrepreneur Shouji Kodama, Nobuaki Takahashi and Optima Ventures.
Founded in 2017, SmartRyde connects local transportation operators to OTAs, allowing travellers to book airport transfers at the same time that they book airline tickets and hotels. The company has collaborated with more than 650 transportation operators and over 25 OTAs, including Booking.com, Expedia, Trip.com, Traveloka and Despegar.
SmartRyde CEO Sota Kimura said that the company will use the funding to strengthen system integration with OTAs, build a booking management system for transportation operators, and promote digital transformation.
Singapore Airlines brings wellness on board in new tie-up
Singapore Airlines (SIA) has sealed a partnership with California-based health and wellness retreat Golden Door to bring a new roster of health-focused meals, exercise, and well-being options to passengers on board its flights between Singapore and the US.
Golden Door experts including top chefs, nutritionists, and personal trainers have developed a broad range of menus, exercise and stretching programmes, as well as other content designed specifically for SIA customers.
In a statement, SIA said that the partnership will help travellers enjoy improved nutrition, sleep, relaxation and energy levels on board the non-stop flights that can extend to nearly 19 hours.
Yeoh Phee Teik, senior vice president customer experience, SIA, said: “Our long-standing commitment to wellness has led to us to work with Golden Door’s highly specialised expertise, and create new options for health-oriented dining, exercise, and strategies for better sleep on long flights.
“Now, more than ever, our customers are focused on maximising wellness in every aspect of their lives. This partnership is instrumental in finding practical, effective ways to extend the principles and practice of well-being to air travel.”
The first menus and wellness content from the partnership will first be available on flight SQ37, the direct service from Los Angeles to Singapore, in January 2022. The programme will be progressively extended to SIA’s non-stop services from San Francisco, New York, and Seattle to Singapore.
SIA’s non-stop services from Los Angeles, New York, and San Francisco have also been designated as vaccinated travel lane flights, allowing eligible customers to enjoy quarantine-free entry into Singapore.
The non-stop service between Singapore and Seattle is currently suspended. SIA will launch a seasonal route between Singapore, Vancouver and Seattle from December 2 to February 15.
Wheels up: liberalisation the way forward for ASEAN aviation recovery
For decades, policies and restrictions imposed on the aviation business has caused it to veer off course in relation to its core purpose of existence – to facilitate trade and make the world more connected.
Destinations, frequency and prices had been defined in hundreds of bilateral air service agreements creating competition and restricting market entry for international carriers.
Flying high: liberalisation of international aviation
In the 1990s, two important developments took place which seemed to alleviate the situation. An increasing number of bilateral air service agreements became more liberalised and relaxed, allowing for greater frequency, capacity, relaxed pricing restrictions and regulations.
Within the European Union (EU), airlines that were registered to a domestic state within the EU, were granted permission to fly anywhere within the Union. Ryanair, Europe’s largest low-cost carrier (LCC) registered in the Republic of Ireland could launch services between Germany and Spain, and even within either of those countries.
In the 21st century, this shift in relaxed measures across the aviation sector occurred on a regional and international scale. In 2008, international initiatives began to see fruition as the agreement between the US and the EU made it possible for European carriers to fly to the US from any EU country, regardless of their state of registration. Common market including Australia and New Zealand was also created.
Current state of play in South-east Asia
South-east Asian countries progressed into taking steps towards creating a more open regional airline market. The 2010 Multilateral Agreement on the Full Liberalisation of Passenger Air Services, also known as the ASEAN Open Skies Agreement (ASEAN OSA), gives airlines the right to carry out international services between any two South-east Asian states.
This agreement, however, does not apply to flights on domestic routes. For example, Singapore’s homegrown carrier, Singapore Airlines, would be able to fly from Bangkok to Jakarta, but is prohibited from operating flights from Bangkok to Phuket.
In June 2021, a new ASEAN-EU Comprehensive Air Transport Agreement was signed. The first of its kind, this treaty between two blocks of nations signified a true milestone in aviation – allowing South-east Asia-based airlines to launch services to any EU destination from South-east Asian states, with European carriers receiving similar rights for services to South-east Asian countries.
Currently, Finnair, a Finland-based carrier has already announced the launch of several South-east Asian routes from Stockholm, the capital of Sweden. While the experience of the US-EU agreement revealed that only a few European carriers have been able to sustain services to the US from gateways beyond their domestic region, the potential of such entry alone can limit the exercise of market power by other incumbent airlines.
The impact of ASEAN liberalisation
My recent work with Professor Yuichiro Yoshida from Hiroshima University and other colleagues, which has just been published in the journal Transport Policy, sheds light on the impact of the ASEAN OSA. Utilising data on passenger volumes and number of airlines operating on international routes within South-east Asia, and from South-east Asia to third countries, we assess the effects of ASEAN OSA on competition.
Our study revealed that the ASEAN OSA has been responsible for about 40 per cent of the growth in passenger air traffic within South-east Asia from 2010 to 2017. However, the impact of this Agreement was different for LCCs such as Jetstar or AirAsia in comparison to the longstanding full-service carriers (FSCs) such as Singapore Airlines or Thai Airways.
Evidence shows that LCCs were replacing some of the FSCs on routes within South-east Asia. Moreover, the number of competitors on an average international route had decreased, in most cases due to departure of FSCs and/or their replacement with LCCs.
The young and hungry, at the big boys’ table
The research revealed there were two phenomena that were taking place simultaneously – market expansion as FSCs re-pivot their focus towards routes beyond the South-east Asian nations and LCCs are cannibalising and replacing FSCs traffic.
We find that the ASEAN OSA, which was meant to promote competition among member-state carriers, had inadvertently caused FSCs to be replaced by the LCCs. On a few markets, FSCs were devoid of passenger traffic, leading to their departure from the market.
Faced with increasing competitive pressures from LCCs, FSCs responded by pivoting their focus on routes to and from countries outside South-east Asia, since bilateral agreements on these markets provided them with protection against competition.
This translated into a considerable increase in the volume of passengers and the number of competitors in all segments – ranging from shorter-haul routes such as Singapore-Hong Kong, to longhaul itineraries such as Singapore-Paris.
It is not surprising that in a more liberalised and competitive environment, LCCs have managed to thrive, given that they have more short-haul route options to leverage upon and are preferably favoured cost-wise.
Having entered the pandemic in a better financial situation, and with short-haul routes set to recover before the longhaul markets; LCCs are well poised to expand their market reach when recovery starts. In Europe, LCCs are seen recovering faster than their legacy counterparts.
ASEAN and the road to recovery
The timeline for market recovery is unpredictable, with vaccination rates and risk management approaches inherently impacting progress on that front. According to the Bloomberg’s vaccine tracker, Singapore stands at a 81 per cent full inoculation rate, with total reopening of the borders set comfortably in its sights.
Undoubtedly, when travel restrictions are eased, the ASEAN OSA would facilitate reopening of international travel to the masses, with FSCs likely prioritised for travel bubble or vaccinated travel lane type arrangements by the governments due to close ties.
In the longer term, however, South-east Asian FSCs may have to adjust their business models in a post-Covid-19 world. Their counterparts in Europe and North America have responded to pressures from the LCCs by unbundling their products (charging for checked luggage, on board meals, and other amenities).
We may see more of this happening in our region post-pandemic.
SPTO-Destination Mekong partnership to enhance tourism recovery
The Pacific Tourism Organization (SPTO) and Destination Mekong have signed a MoU to foster a collaborative partnership that will benefit both organisations and their stakeholders.
A key objective of the partnership is to accelerate sustainable and inclusive tourism growth post-pandemic, so as to ensure that tourism’s benefits are equitably distributed to all stakeholders while also enhancing sustainable tourism development practices in the destinations.
With their extensive membership of the greater Mekong sub-region (Cambodia, Laos, Myanmar, Thailand and Vietnam, as well as Southwestern Chinese provinces of Yunnan and Guanxi) and 20 Pacific Island countries (PICs), spanning all four sub-regions, SPTO and Destination Mekong represent tourism destinations that will benefit from information sharing and best-practice experiences under the MoU.
Speaking at the MoU announcement at the virtual Mekong World Tourism Day Forum, Destination Mekong founder and outgoing executive director of the Mekong Tourism Coordinating Office, Jens Thraenhart, noted the importance of innovative collaboration during this time.
“The MoU with SPTO signals an important step in a partnership agreement between two major regional tourism organisations, in a time when collaboration and sharing of knowledge is more important than ever, to practically assist our business communities prepare for a balanced tourism ecosystem”, he said.
Similarly, SPTO CEO Christopher Cocker, emphasised the importance of building partnerships to effectively address common challenges. “Innovation and collaboration will drive tourism’s recovery and ensure resilience in the long run,” he said.
SPTO and Destination Mekong intend to host a virtual mini tourism forum towards the end of 2021, with details to be announced in due course.
Optimism for travel restart as Thailand readies to reopen for vaccinated
Thai tourism operators are seeing a very positive outlook with international travellers eager to travel to Thailand following the government’s announcement that the country will welcome fully vaccinated tourists without quarantine requirements starting November 1.
Initially, at least 10 countries deemed low-risk including the UK, Singapore, Germany, China, and the US will be allowed to enter Thailand.
Sisdivachr Cheewaratanaporn, managing director of Quality Express Tour, said the news is welcomed, following nearly two years of hardship for tourism operators due to the Covid-induced travel slump.
“At this time, tourists in many countries want to travel to Thailand,” Sisdivachr said. He added that even though some countries like China, Japan and Hong Kong have yet to allow their citizens to travel abroad, there is an optimistic demand outlook from other potential markets.
For instance, Indian tourists which has become a key visitor source market for Thailand, have shown a readiness to return once entry restrictions are relaxed. Also, European tourists are likely to be among the first groups to return to Thailand during the year-end season and in 1Q2022.
He shared that the agency has started working with overseas agents to sell packages, and have received “fairly good feedback”.
Luzi Matzig, chairman of Asian Trails Group, revealed that the reopening of Thailand to vaccinated visitors is a step in the right direction that restores confidence from international markets, especially Europe, that are crucial to the country’s tourism recovery.
Some 70 per cent of the European Union’s adult population has been fully vaccinated and allowed to travel overseas, however, they want the Thai government to waive the need for certificate of entry application in order to ease travel, he noted.
Matzig said he is currently working with agents in European countries to prepare tours, and that the response has been “very positive”.
Supawan Tanomkieatipume, managing director of the Twin Towers Hotel Bangkok, expressed optimism over the country’s reopening next month, saying that he looked forward to hotels, and F&B and entertainment venues being filled again, especially in December when restaurants will be allowed to resume the sale of alcoholic beverages.
Supawan said that she has been receiving an uptick in requests from travel agents asking for room rates on behalf of their clients.
She also shared that many hotels in the capital and in major tourist destinations have been receiving calls from potential clients looking to rent spaces to run year-end events.
Indonesian trade pushes for shorter quarantine ahead of Bali’s reopening
Trade associations are calling on the Indonesian government to shorten the quarantine period for all arriving passengers from abroad, as the country prepares to reopen Bali for fully vaccinated visitors from select countries starting October 14.
The call comes after coordinating minister for maritime and investment affairs Luhut Binsar Pandjaitan announced on Monday (October 11) that the government will cut the quarantine period for international visitors from eight to five days.
Despite the reduction, the trade feels the policy will put a damper on Bali’s reopening plan and hinder recovery of the travel industry. Hence, they are hoping that the government will consider further cutting the quarantine time to one to three days for incoming visitors.
That sentiment will be conveyed in a letter addressed to the related government offices written by four major travel associations – Association of the Indonesian Travel Agencies (ASITA ’71), Association of the Travel Agencies in Indonesia (ASTINDO), Indonesia Inbound Tour Operators Association (IINTOA) and Indonesian Tour Leaders Association (ITLA).
Speaking at an open discussion among the four travel associations last weekend, Artha Hanif, chairman of ASITA ’71, questioned the need for a five-day quarantine for incoming travellers to Bali, given that they must meet the criteria of being fully vaccinated, and must present a negative Covid-19 PCR test result before departure, and be tested again on arrival.
“These are healthy people we are talking about. Why should we treat them like sick ones who have to be confined to their hotel rooms, eating hotel food which may not be to their liking since no outside food is allowed during the quarantine?” he said.
Instead, he suggested that the self-isolation period be cut to three or even two days, by which time the PCR test result should have been released. This will help travellers to save on travel expenses, given that serving a hotel quarantine will incur a minimum additional cost of seven million rupiah (US$492), according to Artha.
He also noted that sufficient protocols are in place to protect travellers’ safety, as they will be monitored by the Peduli Lindungi contact tracing app and must also purchase travel insurance for Covid-19-related medical expenses prior to arrival. As well, the places they will be visiting have received the Cleanliness, Health, Safety, and Environment Sustainability (CHSE) certification, he added.
Similarly, Paul Edmundus Talo, chairman of IINTOA, questioned the need to subject incoming travellers to a five-day quarantine given that they are fully inoculated. “I think a two- or even one-day quarantine to wait for the PCR test result (to be released) is reasonable,” he said.
The current quarantine policy hampers both inbound and outbound travel sales, as it is costly and inconvenient, opined Pauline Suharno, chairman of ASTINDO.
She suggested for the government to follow Dubai’s model of quarantining incoming visitors for one day until the release of their on-arrival PCR test result.
Pauline also expressed hope that the government work on establishing travel corridor arrangements with other countries and regions to facilitate two-way, quarantine-free travel as part of its border reopening plan.
Agreeing, Tetty Ariyanto, chairman of the ITLA, suggested that the travel industry urge the government to open travel corridors with select countries based on reciprocity, similar to the recently-announced vaccinated travel lanes between Singapore and South Korea.
With Bali’s reopening limited to 18 countries deemed low-risk including China, Japan, New Zealand, South Korea, and the UAE, Paul pointed out that many of those countries have outbound travel restrictions in place.
He said: “China and New Zealand, for example, are still limiting their people to travel. In the meantime, Germany and the Netherlands, which has at least 7,000 tourists waiting to travel (to Bali), are not on the list.”
Centara Mirage Beach Resort Dubai, the UAE
Thailand’s Centara Hotels & Resorts marks its debut in the Middle East with the opening of Centara Mirage Beach Resort Dubai. Nestled on the Deira Islands, just 30 minutes from Dubai International Airport, the themed resort offers 607 rooms and suites, ranging from Superior, Family and Mirage Rooms to Junior and Two-Bedroom Suites with 32 to 95m2 of bright, contemporary space and panoramic city or sea views.
Mirage represents Centara’s themed family resort concept, featuring facilities like a water park, three kids’ clubs, an outdoor playground, a candy-themed children’s spa, fitness centre, Spa Cenvaree, and the Mirage Family Lounge. Rooms offer flexible bedding options including bunk beds that accommodate up to two children. Nine dining venues are on offer. Suan Bua specialises in Asian cuisine, while Uno Mas is a traditional Argentinian grill with its own wine cellar. Fresh seafood and prime meats can be savoured at Sands, the casual beach club; Waves Pool Bar and Zing promise refreshing drinks and light bites; and Sheesh is a chic rooftop shisha lounge and Lebanese restaurant. As well, meeting planners can host events in a choice of indoor and alfresco function spaces.
Oakwood Hotel Oike Kyoto, Japan
Oakwood Hotel Oike Kyoto represents the brand’s 12th property in Japan as well as Oakwood’s debut in the former Japanese capital. The property showcases 120 rooms and studio apartments in the heart of the historic and cultural district. All 104 guestrooms are equipped with the latest in-room technology, including an air purifier, 55′ flat screen smart TV, tablet, press readers and complimentary Wi-Fi along with guest services. Sixteen studio apartments feature a well-equipped kitchen fitted with a refrigerator, microwave oven, cooking utensils, washing machine and dryer. Café O, an onsite dining establishment, will serve breakfast featuring local culinary specialties. Other facilities include a co-working space, smoking room, laundromat, housekeeping and multilingual guest relations for assistance such as limousine, taxi and airport bus arrangements.
Taoxichuan Hotel, China
Hyatt Hotels Corporation has added the Taoxichuan Hotel to The Unbound Collection by Hyatt brand. The 196-room hotel has been developed as part of the Taoxichuan cultural and creative quarter in the heart of downtown Jingdezhen. Occupying three interconnected buildings and designed by Britain’s acclaimed David Chipperfield Architects, Taoxichuan Hotel houses 196 guestrooms, including seven suites. Guests can enjoy authentic local and regional Chinese cuisines at the Cobalt Restaurant, which has been conceived as an extension of an adjacent outdoor garden, providing a picnic-in-the-park dining experience. Elsewhere, Emerald Lounge serves light bites, afternoon tea and a selection of fine teas, wines and cocktails. Leisure amenities include a heated indoor pool and 24-hour fitness centre. Additionally, the hotel offers 1,360m2 of flexible meeting and event space, including a pillar-free ballroom and five meeting rooms in a variety of sizes.
Vega Hotel Gading Serpong, Indonesia
Indonesia’s Parador Hotels & Resorts has rebranded its three-star Ara Hotel Gading Serpong to Vega Hotel Gading Serpong. The 145-room hotel, which opened in 2014, has become the first property under Parador’s new three-star brand after undergoing a renovation. The Vega Hotel brand was first introduced at the ground breaking of Vega Hotel Surabaya in January 2020, with the property targeted for a 2024 opening.