Infrastructure development across Labuan Bajo, East Nusa Tenggara in Indonesia has carried on in earnest even as the Covid-19 pandemic disrupts travel and tourism businesses, to ensure the destination is ready for both the ASEAN Summit and the G-20 Summit come 2023.
Shana Fatina, president director of the Labuan Bajo Flores Tourism Authority Agency (BOP), said that infrastructural works include new roads and airport runway extensions.
Shana said: “The construction of Komodo Airport is a focus this year. The Ministry of Transportation is working on extending the runway by 250m to reach 2,700m. The government has also breached the Telumpang hill (for improved aircraft access).”
Service excellence is also on the agenda, and the government is working with regional peers and experts, such as Changi Aiports International, Changi Airports Mena, Cinta Airport Flores and Cardig Aero Services, to manage Komodo Airport and to make it an international airport by February 2021.
Meanwhile, development of the Labuan Bajo marina area has been accelerated, allowing it to accommodate up to 125 yachts or cruise ships by end-2020.
On the accommodation side, Indonesia Tourism Development Corporation (ITDC) has been appointed to oversee Tana Mori’s development into a high-end resort destination similar to Bali’s Nusa Dua.
Edwin Darmasetiawan, ITDC’s director of development, said the Tana Mori masterplan was now complete and works could begin. The plan includes the construction of two five-star hotels and one four-star hotel to accommodate delegates of the two Summits.
Funding has been proposed through state equity participation, in addition to private investment.
“I am very optimistic that we can finish latest by 2022,” remarked Edwin.
“The event will be in 2023 but our obligation is to prepare the venue with all supporting aspects, both property and infrastructure by the end of 2022,” he added.
Susilowani Daud, president director of Pacto Convex, said the project underlined the government’s commitment to developing destinations in the country for business events, which would send a positive signal to investors.
She added that while private investors might remain conservative now due to economic uncertainty, interest could soar once business recovery begins.
Susilowani hopes the government would also invest in tourism and business events education for the local workforce, to establish a strong human resource foundation that would support the future developments in Labuan Bajo.
The Indian government’s biggest repatriation operation dubbed Vande Bharat Mission, which is being operated by Air India, has created a deep rift between the national carrier and Indian travel agents.
The national carrier has been warning consumers through its social media platforms against purchasing tickets from travel agents, which it said are overpriced as compared to rates published on Air India’s website.
In retaliation, travel agents have termed the move as meddling between their relationship with clients.
In a strongly worded letter addressed to India’s civil aviation minister and AirIndia’s chairman and managing director earlier this month, the Travel Agents Association of India (TAAI), which represents over 2,500 travel agent companies, asked the airline to withdraw such social media posts.
“The airline should inform consumers of any malpractices and manipulations if (they are) happening, but it should also understand that the agents and customers have a direct relationship, and for any additional services provided, the former can levy a charge,” it read.
Air India’s hostility towards travel agents came after a few were found to have sold air tickets issued under the Vande Bharat Mission at a high premium. In a social media post, the airline said that it had suspended transactions through three New Delhi-based travel agents – Air View Services, Real Fly Tour & Travels and Friends Ticketing Hub – over malpractices.
Since then, Air India has blocked travel agents on select routes, citing complaints of overcharging by consumers.
However, travel agents pointed out that a few black sheep in the market should not ruin the name of the entire community, most of whom have been working ethically.
“We are strictly against any unethical practices in the business. However, at a time when airlines are offering no commissions to the travel agents, it is within our right to charge a transaction fee or a consultancy fee,” said Naveen Manchanda, president, Indian Association of Travel and Tourism Experts.
A section of the travel agents also rued a lack of clarity in the distribution of air tickets under the Vande Bharat Mission initiative.
Pradip Lulla, acting president, Travel Agents Federation of India, said: “About 90 per cent of air ticket sales in India is still through IATA agents – both offline and online. Whenever the booking window opens and we (travel agents) try to book a ticket through GDS or Air India’s website, the message we get mostly is that they have been sold out.”
Correction: An earlier version of this article misquoted Lulla as saying that Air India should conduct an investigation to ensure that seats are allocated to agencies, and not booked out by the IATA fraternity. That is incorrect, and Lulla meant that an investigation should be done to ensure seats are available to all IATA travel agents, and not just a select few.