A chance for change - Bad Request

 
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A chance for change - Bad Request
PPS 1885/02/2017(025627)

                                                                      A chance
                                             No. 1749/August 2017
                                                                    for change
                                                                        In a morphing travel landscape, Singapore travel
                                                                       agencies say they need guidance and unity. Alas,
                                                                    strong leadership eludes them for now. But there’s a
                                                                              chance for change, reports Pamela Chow

                           View from the top
                           Expectations are high for
                           Myanmar’s minister of hotels
                           and tourism Ohn Maung, an old
                           hand in the tourism sector. He
                           tells Xinyi Liang-Pholsena how
                           he intends to steer Myanmar’s
                           fast-expanding tourism sector

                           +
                           Nepal clutches at
                           straws of recovery
                           ASEAN airports
                           plan for growth
                           Vietnam’s fertile
                           grounds for
                           ecotourism
A chance for change - Bad Request
August 2017 TTG Asia 2

Contents & editorial                                                                                                                                               Want to read us on the go?

 Analysis    03
View from
   the top   05
 Connect     14                              06
                                         Report:
                                                                                    08Report:                             Destination:
                                                                                                                                                              10                                          12
                                                                                                                                                                                                 Destination:
                                     Theme parks                                     Airports                               Malaysia                                                                Vietnam

Why S’pore agents must unite
                                                  I  f a travel agent could not run his own business suc-
                                                     cessfully, how could he lead the industry?
                                                     That must have occurred to a lot of members of the
                                                                                                                    NATAS. This has to be resolved. It’s a pity a proposal to
                                                                                                                    hold a joint fair as we reported in January (http://bit.
                                                                                                                    ly/2vxRQmC) came to naught.
                                                  National Association of Travel Agents Singapore (NA-                 The bigger interest must prevail and that is to ensure
                                                  TAS) when they received the shocker that GC Nanda &               that travel agents can thrive in a continuously changing
                                                  Sons was exiting the trade. It had seen 40 years of opera-        landscape. The travel agent sector in Singapore is actu-
                                                  tion, many of those years led by the soft-spoken, kindly          ally far from dying. A figure of 104 closures in the first
                                                  Prem Paul Ohri, then by his son, Devinder Ohri, who was           six months looks scary, but it’s nothing unusual from fig-
                                                  NATAS president from May 2016 until the agency’s re-              ures in the same period the past four years. The Singapore
                                                  cent demise (see Analysis page 4).                                Tourism Board (STB), which regulates the sector, expects
                                                     To be fair, has it occurred to agents that a reason why        the number of agencies to remain constant at around
                                                  GC Nanda closed could be that Ohri junior had spent a             1,200 this year, as it has been for the past four years.
                                                  lot of time on NATAS volunteer work? Another reason                  That means new agencies are always opening to re-
                                                  of course was the changing industry. A source close to            place closed ones. In two words, new competition, which
                                                  the agency said he was an administrator, whereas what’s           will only increase if proposals for tiered licensing are ap-
                                                  needed as the industry changes fast and furious are rain-         proved. STB, keen to grow tourism, naturally wants to
                                                  makers.                                                           nurture innovative players with grants such as Experience
                      The travel                     Whatever the reason, I can’t help feeling some revul-          Step-Up Fund and Business Improvement Fund while
                      agent sector                sion at the criticisms hurled at NATAS in re-appointing           helping the sector transform itself through a Travel Agent
                                                  office bearers who had left to lead the association until the     Roadmap. It’s not easy though. Look at MISA Travel,
                      in Singapore                next AGM, and for its current state of instability. It’s like     once held as a role model for its online push but couldn’t
                      is actually far             shooting a lame dog.                                              sustain drive and is now gone after 23 years in operation.
                      from dying.                    There are two realities that Singapore agents should
                                                  mull. The first is, few CEOs actually want to devote time
                                                                                                                       Fact is, it can happen to you. That’s why the need for
                                                                                                                    unity, stability and the spirit of cooperation and collabo-
                                                  and effort on volunteer work, especially when business is         ration among Singapore agents has never been greater.
                                                  so demanding. Anyone who comes forward, provided he
                                                  or she is not self-serving, therefore deserves all the sup-       Raini Hamdi
                                                  port and compassion.                                              Senior Editor
                                                     The second reality is agents are divided because of               raini.hamdi@ttgasia.com
                                                  the two travel fairs, a major income earner for them and             twitter.com/rainihamdi

   COMING UP
                  PHILIPPINES No stranger to controversy              LONGHAUL TRAVEL Germany, Canada
                                                                                                                           Zhukova Valentyna/shutterstock

                  or travel advisories in the past year, how is       (right) and South Africa – what do these
                  the country’s tourism coping with the negative      destinations have in common? A thirst for Asian
  NEXT ISSUE:     reports and perception in international media?      tourists, backed with strategic plans to show
  SEPTEMBER
                  HONG KONG In a city with no shortage of             MACAU Its strong Macanese and Portuguese
     2017         five-star hotels, a new breed of luxury offerings   culinary traditions, as well as new fusion offer-
                  continues to add glamour to the destination         ings, are a draw for foreign visitors                                                 Banff National Park, part of the Canadian Rockies
A chance for change - Bad Request
August 2017 TTG Asia 3

Analysis

Clutching at straws of recovery
Nepal tries to solidify                                                                                                                                                   added: “Pollution is also a big factor that
                                                                                                                                                                          needs to be addressed.”
signs of recovery by                                                                                                                                                         Political stability is necessary if invest-
diversifying into eco- and                                                                                                                                                ment is to be put into overhauling infra-
                                                                                                                                                                          structure and upgrading roads. Nepal’s
spiritual tourism, but still                                                                                                                                              first democratic elections in 20 years is
                                                                                                                                                                          taking place this year, with the third and
faces infrastructaure and                                                                                                                                                 final stage in September.
pollution issues, Marissa                                                                                                                                                    Pushka KC, Peak’s sales manager, said:
                                                                                                                                                                          “We are happy for these elections because
Carruthers reports                                                                                                                                                        we need (Nepal) to be politically stable.
                                                                                                                                                                          We can promote Nepal as a leisure or spir-
                                                                                                                                                                          itual destination or whatever, but if we

W
                 hile 2016 arrivals were still                                                                                                                            don’t have the infrastructure to get people
                 down by 4.7 per cent com-                                                                                                                                around, it is no good.”
                 pared with 2014 figures,                                                                                                                                    To cater to the predicted increase in
                 Nepal industry members                                                                                                                                   visitors, construction of a new US$216
said 2017 is looking bright, with one mil-                                                                                                                                million international airport in Pokhara
lion international arrivals anticipated.                                                                                                                                  started in June. Three kilometres east of
    Last year, the market showed signs of                                                                                                                                 the current domestic airport, it is slated
recovery, with a 39.7 per cent increase to                                                                                                                                for completion by July 2020.
753,002 visiting foreigners. India was the                                                                                                                                   In addition, Gautam Buddha Airport
top source market, followed by China, the                                                                                                                                 in Bhairahawa, gateway to Lumbini, is set
US, Sri Lanka and the UK.                                                                                                                                                 to open in 2019. It is also hoped that the
    The devastation caused by the 7.8-mag-                                                                                                                                stalled US$92 million improvement of
nitude earthquake that hit Nepal on April                                                                                                                                 Tribhuvan International Airport in Kath-
25, 2015, saw international visitors slump                                                                                                                                mandu will be unveiled the same year.
                                                 Nitipol Temprim/shutterstock

from 790,118 in 2014 to 554,747 in 2015,                                                                                                                                     While hurdles remain, the industry re-
according to figures from the Ministry of                                                                                                                                 mains confident of the country’s poten-
Immigration.                                                                                                                    Kathmandu’s Boudhanath Stupa at sunrise   tial to achieve two million foreign visitors
    Despite the earthquake being restrict-                                                                                                                                by 2020.
ed to 10 of the country’s 75 districts, the
damage was felt nationwide. An unofficial                                       to the world that Kathmandu and many
blockade along Indian border points cou-                                        other places survived. People need to learn
pled with a fuel crisis and trade embargo                                       more about Nepal.”
hit Nepal. Overnight, the country’s tour-                                          Stepping up its game, the country
ism trade crashed.                                                              hosted its first annual Himalayan Travel
    But as the market shows signs of turn-                                      Mart in June, attracting 74 buyers from 36
ing around, high hopes have been pinned                                         countries and more than 50 sellers. And
on the tourism sector.                                                          the industry has started to actively sell the
    Suman Pandey, president of PATA Ne-                                         country’s other attractions, away from the
pal, said: “Things are slowly starting to                                       Himalayas and trekking. Huge efforts are
pick back up. Last year, we were nearly                                         being pumped into developing ecotour-
back to the figures before the earthquake                                       ism, which is seen by many as a way to
and this year looks to be even better, so                                       elevate the industry.
this is encouraging.”                                                              Shital Chandra Dharel of Himalaya
    The country’s recovery was severely                                         Heart Treks and Expeditions said: “We
hindered by a blanket travel warning on                                         have much more than the mountains.
visiting Nepal despite many popular tour-                                       We have national parks, safaris, wildlife
ist destinations remaining untouched.                                           with black rhinos and tigers, more than
    Nepal Tourism Board (NTB) CEO,                                              60 different ethnic groups, culture and a
Deepak Raj Joshi, said: “After the earth-                                       lot of adventure activities. More is beingC

quake, people assumed it was the whole                                          done now to promote these activities and
                                                                                                                          M
country. This was very damaging and we                                          show that Nepal really is a diverse destina-
directly saw the impact it had on travel.”                                      tion.”                                    Y

    Despite suffering no earthquake dam-                                           Spiritual tourism is another area that is
                                                                                                                          CM

age, businesses in popular Pokhara –                                            being actively promoted. Nepal is home
gateway to the Himalayas – saw tourism                                          to Lumbini, the birthplace of Buddha,     MY

tumble. Tejina Malla, assistant sales man-                                      and other religious sites, and tour opera-CY

ager at Shangri-La Village Resort Pokhara,                                      tors are starting to target South-east Asian
                                                                                                                         CMY
said: “We were not hit physically by the                                        markets such as Cambodia and Vietnam
earthquake but we were hit very badly fi-                                       which have strong Buddhist populations    K

nancially, and it’s only now starting to pick                                   and growing economies.
back up.”                                                                          In June, the Bangkok-based Nepali em-
                                                                                bassy to Cambodia organised an event in
Initiatives                                                                     Phnom Penh to promote Buddhist tour-
Hard-hitting marketing campaigns done                                           ist sites and activities in Nepal. And talks
in major source markets in the aftermath                                        about starting direct flights between the
of the disaster, to spread the word that Ne-                                    two countries began.
pal is safe and open for business, are finally
paying off. Intrepid Travel said bookings                                       Not enough
have jumped 70 per cent this year from                                          But concerns have been raised that this
2016, while G Adventures, which offers                                          alone won’t be enough for Nepal to reach
ecotourism trips, reported a 62 per cent                                        its tourism potential. Infrastructure re-
rise – surpassing its 2014 figures.                                             mains weak, airports are in desperate need
   However, the industry said post-earth-                                       of upgrading, more flight paths are essen-
quake fears remain a major hurdle. Bharat                                       tial, as is increased investment in human
Kumar Basnet, managing director of Ex-                                          resources.
plore Nepal, said: “People across the world                                        Saurav Rajkarnikar, executive director
thought Nepal is not a safe place to visit                                      of KGH Hotels, which operates a string
and we weren’t able to pass the message                                         of properties in Kathmandu and Pokhara,
A chance for change - Bad Request
August 2017 TTG Asia 4

Analysis

A chance for change
In a morphing travel landscape, Singapore travel                                                                                                   Timeline
agencies say they need guidance and unity. Alas,
strong leadership eludes them for now. But there’s a                                                                                                  May 2016 Elections held at NATAS
chance for change, reports Pamela Chow                                                                                                                Annual General Meeting (AGM);
                                                                                                                                                      Devinder Ohri appointed president.
                                                                                                                                                      Position of secretary-general vacated
                                                                                                                                                      shortly after

                                                                                                                                                      March 2017 Ram Samtani ap-
                                                                                                                                                      pointed as secretary-general

                                                                                                                                                      March-May, date unknown
                                                                                                                                                      Deputy-president Steven Ler and
                                                                                                                                                      honorary treasurer Simon Er resigned
                                                                                                                                                      before AGM

                                                                                                                                                      May 30 GC Nanda & Sons voluntarily
                                                                                                                                                      ceased its Travel Agent License under
                                                                                                                                                      Singapore Tourism Board

                                                                                                                                                      June 19 Ohri announced GC Nanda
                                                                                                                                                      & Sons’ voluntary cessation in NATAS
                                                                                                                                                      circular

                                                                                                                                                      June 22 Official NATAS release an-
                                                                                                                                                      nounced Ohri is no longer president;
                                                                                                                                                      Steven Ler became acting president

                                                                                                                                                      May 2018 Elections for new execu-
                                                                                                                                                      tive committee and new president to
                                                                                                                                                      be held at NATAS AGM

T
           he closure of GC Nanda & Sons          for May 2018.                                  bicycle tours, would be exempted from a           main source of income for NATAS.”
           shocked agents not only because           In response to queries from TTG Asia,       travel agent licence. As well, entities selling       Yet, the role NATAS plays cannot be
           it was a prominent agency that         Ismail Hussain, NATAS’ general manager,        or arranging tours without accommoda-             underestimated. For example, Singapore
           had operated for four decades          surface transport & inbound tours said         tion can apply for a restricted licence with      Tourism Board (STB) collaborates with
but also because its managing director,           NATAS executive committee (exco) decid-        a lower paid-up capital and net worth re-         NATAS to “formulate a Travel Agent
Devinder Ohri, was leading the sector as          ed to invite and reappoint both Ler and Er     quirement.                                        Roadmap that seeks to build capabili-
president of the National Association of          at an emergency meeting on June 19.               “I actually think that there will be more      ties and enhance business sustainability
Travel Agents Singapore (NATAS).                     “Given the trust and confidence from        travel companies opening than closing             through business transformation, tech-
   That agents learnt of GC Nanda’s clo-          their colleagues in the exco, both were en-    given the changes in licensing being dis-         nology and manpower”, said Ong Ling
sure on May 30 only through the media,            couraged and committed to take on their        cussed,” said Robin Yap, president, Travel        Lee, STB’s director, travel agents and tour-
then officially in a NATAS circular on June       roles and lead the association. We welcome     Corporation Asia.                                 ist guides.
19 signed by Ohri as president, incensed          them back and look forward to working             Another worry is the lack of talent and            Chan Brothers’ Koh said: “It’s not rock-
some. A NATAS release three days later            them,” he said.                                the need for the industry to get younger          et science but we’d like to see them (NA-
announcing Ohri was no longer president              He added: “The next AGM will also be        people to work in the trade, said Seah.           TAS) go back to the basics of being a good
while Steven Ler had been appointed act-          an election year. Members will be invited                                                        leader. Qualities include listening with an
ing president and Simon Er as honorary            to nominate or be nominated for election       Strong NATAS needed                               open mind, gathering feedback and seek-
treasurer only brought more questions,            into the exco for the next term of office      Having guidance from NATAS is crucial in          ing advice on future decisions affecting
with Kay Swee Pin, president of the Sin-          2018-2020. All positions in the exco will be   these critical times, Seah added.                 members at large instead of upholding the
gapore Outbound Travel Agents Asso-               opened for nominations.”                          “We hope that the association can help         image as the leader at all costs.”
ciation, a rival group, even calling it “de-         As NATAS undergoes a leadership             travel agents stay ahead of competition               Holiday Tours’ head of MICE and lei-
ceitful”. Both Ler and Er had resigned as         overhaul, its members are left with hands      from the ever-growing online travel sites,        sure, Cindy Loo, said that it is important
NATAS deputy president and honorary               wringing over challenges looming on the        by continuing to build trust in people that       for the association to “work closely with
treasurer respectively between March and          horizon. Agencies that TTG Asia spoke to       travel agents can help better than a com-         IATA, STB and other government bodies
May.                                              expressed a need for guidance amid chang-      puter can,” she said.                             to help the travel trade ride through the
   “The president must be elected by              ing consumer behaviours that may leave            To members outside NATAS exco, the             changing environment, and in the course
shareholders… and if Steven Ler wants             traditional tour operators high and dry.       current state of the association is worry-        of doing so, make the industry more resil-
to assume the position, he must fight for            These changes are stimulated by the         ing.                                              ient to future challenges”.
it and not (have it) handed to him when           “emergence of more online direct sales            Said Koh: “High turnover or frequent               Adding to the list, Seah urged that ideal
he had already left the NATAS (executive          (and) online travel companies with cut-        changes at the top may be a sign of larger        leaders “must have a clear and unwavering
committee),” Kay told TTG Asia.                   ting-edge technology”, lamented Dynasty        organisational issues. We are concerned           focus on the association’s vision” and “be
   In short, it was a circus. And even be-        Travel’s spokesperson Alicia Seah.             about whether there is commitment and             able to make difficult decisions in a timely
fore news of Ohri’s departure had sur-               Exacerbating the climate of uncertainty     conviction to turn around NATAS’ finan-           manner”.
faced, “NATAS seemed to be plagued with           is the spectre of even more competition        cial position of severe loss for the past two         Meanwhile, she said the recent episode
leadership problems”, said Justine Koh,           from new players. Many agents expect           years, and at the same time, look after the       has had “no impact at all” on Dynasty
spokesperson for Chan Brothers Travel.            proposed changes to the Travel Agents Act      interests of all NATAS members.”                  Travel, and NATAS events are running “as
                                                  and Regulation being tabled will actually         When asked why NATAS is having a               usual”. The biannual NATAS Travel Fair
Stopgap                                           make it easier for new entrants to come        hard time, Robert Khoo, its former CEO            will next be held on August 11-13.
Ler’s appointment as acting president is a        in. Examples: As part of a tiered licens-      who led NATAS from 2000-2013, said:                   “The industry needs to stay reconciled
stopgap, to fulfil all the duties of the presi-   ing regime, entities that sell or arrange      “A few difficult and unreasonable mem-            and united to brace the challenges ahead,”
dent until one is elected at NATAS’ next          tours within Singapore without passenger-      bers with selfish intentions tried to bring       she urged. – Additional reporting by Raini
annual general meeting (AGM) scheduled            carrying conveyance, such as walking or        the travel fairs down. The travel fair is the     Hamdi and Karen Yue
A chance for change - Bad Request
August 2017 TTG Asia 5

View from the top

Support from                                                                                                                                    10 NEED TO KNOW’S
                                                                                                                                                ABOUT OHN MAUNG

an old hand
                                                                                                                                                ■ Who’s in your family? A lovely
                                                                                                                                                wife, one talented daughter, one smart
                                                                                                                                                son, one sweet granddaughter and two
                                                                                                                                                mighty grandsons
                                                                                                                                                ■ What do you do for fun? Enjoying
                                                                                                                                                music and meeting friends
                                                                                                                                                ■ Your ideal vacation? A visit to
Expectations are high for Myanmar’s minister of hotels and tourism Ohn Maung,                                                                   Ngapali Beach with my family
whose decades of practical experience as a hotelier and tour operator dates back                                                                ■ How do you book your own
                                                                                                                                                leisure trips? Internet for the sake of
to 1972 in his native Shan State. Xinyi Liang-Pholsena speaks to the veteran on                                                                 convenience

how he intends to steer the fast-expanding tourism sector in the right direction                                                                ■ What are you reading right
                                                                                                                                                now? Rama IX: The life and legacy of
                                                                                                                                                King Bhumibol Adulyadej
How did you get started in the tourism       decided to build an upmarket hotel, Inle          For all these destinations, we need to           ■ How do you stay healthy?
sector?                                      Princess Resort, which opened in 1998, to      improve infrastructure development such             Exercising every morning and eating
Tourists started visiting the Inle Lake      receive their clients visiting Inle Lake.      as new hotels, road access, extension of            healthy food
area from 1972. As I grew up in mission-                                                    runways of the existing airports, etc.
ary schools in Myanmar, I am quite flu-      Since taking on this minister role, what          What is most important is to improve             ■ Favorite food? Shan food, of
ent in speaking English so I became the      initiatives have you spearheaded?              tourism services through capacity build-            course!
local translator for the tourists. At that   I’m currently developing more destina-         ing such as hospitality management, and
                                                                                                                                                ■ A bad habit you cannot kick?
time, guests often overstayed on the lake    tions, people-to-people contacts by estab-     tour guide and travel agent training ac-
                                                                                                                                                Watching football matches late at night
and returned late for their transfers back   lishing community-based tourism (CBT)          cording to the ASEAN standards. In these
to Taunggyi – the only place where tour-     with the help of NGOs and INGOs, as well       destinations, there are already 20 informa-         ■ Your pet peeve, something
ists were supposed to spend the night – so   as DMCs, who have been my friends since        tion counters set up and six new counters           that never fails to annoy you? Big
they would ask me for a night’s stay. This   I started my career as a hotelier to promote   will be added this year.                            mouths with loud voices!
led me to decide to open a small lodge         the tourism industry by creating CBT vil-
for tourists who came back late                       lages as new destinations. So far,    Are you happy with the progress so far?             ■ Most people don’t know that
from sightseeing.                                        we have launched nine CBT          Yes, I am very happy with the progress so           you… Iove kids and want them to
   On April 1, 1976, I                                     projects and another five are    far as my team from the Ministry of Ho-             start their life from proper nursery
opened Inle Inn in                                          on the way. A newly opened      tels and Tourism, and the private sector            schools
Nyaung Shwe, a small                                         CBT project is Sor Lor Vil-    have worked hand in hand to promote
lodge with 14 rooms.                                         lage in Chin State.            our country. An example is our coopera-
In 1995, I helped the Pa                                        For ecotourism, Chin        tion with the private sector for ITB Berlin
O people build a hotel                                       State is a more promising      and other international trade shows.
called Golden Island                                          destination because of its       Tourism development is one of the          while sharing our rich culture diversity.
Cottages on the lake as                                       pristine nature and rich      priorities of our NLD (National League        We have developed codes of conduct for
tourism grew. Then, in                                       indigenous culture. The is-    for Democracy) government, which has          tourists, travel agents and locals with “do’s
1996, Road to Mandalay                                     lands of Mergui Archipelago      continuously supported the tourism sec-       and don’t’s” booklets.
started cruise operations on                             will be developed as new desti-    tor and even formed the National Tour-
the Irrawaddy River between                             nations to attract investment for   ism Development Committee, chaired by         What other challenges are there for
Bagan and Mandalay. I                                        eco and marine tourism.        the vice president and comprising union       Myanmar tourism right now, and what
                                                                                            ministers from related ministries.            needs to be done?
                                                                                                                                          Myanmar tourism is on the right track.
                                                                                            Do you think Myanmar has been too             Challenges for Myanmar tourism right
                                                                                            liberal with hotel construction as there      now are to build more infrastructure such
                                                                                            are signs of a room oversupply?               as hotels, roads, etc, as I have mentioned.
                                                                                            Tourism arrivals have increased from 1.6      Most importantly, (we need) to train
                                                                                            million in 2012 to 2.9 million in 2016. Of    more tourism professionals and hotel
                                                                                            course hotels are mushrooming across the      management, and help the private sector
                                                                                            country as tourism is increasing every year   expand their businesses efficiently by as-
                                                                                            in tandem with the focus of the Myanmar       sisting them at travel shows with tourism
                                                                                            Tourism Master Plan (2013-2020).              promotion.
                                                                                               At present, we don’t have enough ac-
                                                                                            commodation for incoming tourists dur-        Do you think the recent negative cov-
                                                                                            ing the peak season, so we need to build      erage of Myanmar’s Rohingya crisis is
                                                                                            more hotels and prepare for the future        affecting the country’s image on the
                                                                                            increment of tourists. I don’t think Myan-    global stage? Is an international desti-
                                                                                            mar has been too liberal with hotel con-      nation campaign needed?
                                                                                            struction at the moment. For example, 12      From the tourism development perspec-
                                                                                            new hotels will be built in Chin State in     tive, this issue does not significantly in-
                                                                                            order to fulfil the accommodation needs       terfere with tourism development at local
                                                                                            of tourists visiting the destination.         levels in Myanmar. We are doing interna-
                                                                                                                                          tional destination promotion now by par-
                                                                                            You are a strong advocate for CBT. How        ticipating in ITB Berlin*. We have more
                                                                                            do you balance growth with preserva-          than 60 participants here at ITB Berlin as
                                                                                            tion of culture and the environment?          proof that Myanmar tourism is booming.
                                                                                            I believe that by developing CBT, I can
                                                                                            increase the number of new destinations       What do you hope to achieve by the
                                                                                            and let tourists have a chance to get in      end of your term?
                                                                                            touch with the local people to share in       I would like to see the tourism industry in
                                                                                            their knowledge, understand their culture     Myanmar successfully achieve a new level
                                                                                            and improve the socio-economic well-          of development with positive impacts and
                                                                                            being of the local communities.               good results for the country and the peo-
                                                                                               I would like to bring development while    ple.
                                                                                            preserving our culture, traditions and the
                                                                                            environment to provide greater employ-        * Editor’s note: This interview was con-
                                                                                            ment opportunities for all our people         ducted in March during ITB Berlin
A chance for change - Bad Request
Report Theme parks

Competing for fun
In Asia, the business of                        5.4 per cent from 19.5 million to 20.9 mil-
                                                lion, reported the Themed Entertainment
                                                                                                 lion, according to the 2016 TEA/AECOM
                                                                                                 Theme Index and Museum Index.
fun is a serious industry                       Association (TEA) and AECOM.
                                                   To quench the region’s thirst for watery
                                                                                                    The decrease, as outlined in the report,
                                                                                                 is in part due to more parks opening in
as attractions keep up the                      fun, new operators are thronging the mar-        China, drawing droves of Chinese visitors
amusement war through                           ket – at least 15 water parks have opened        to domestic attractions and away from               Vietnam has huge
                                                in the last three years in Thailand alone,       those in neighbouring countries.
constant reinvention.                           said Wuthichai Luangamornlert, man-                 Confronted with sliding popularity and           growth potential right
                                                aging director of Siam Park City, at the         a tightening market share, incumbents
By Pamela Chow                                  Asian Attractions Expo 2017 in Singapore         around Asia are facing a mounting pres-             now (in theme park
                                                in June.                                         sure to reinvent.                                   development), and we

A
          sia has been the hotbed of a             “We’re seeing a growth in private in-
          theme park rush, with intellec-       vestment in this new emerging market as          Fun for the whole family                            also are seeing growth
          tual-property (IP) partnerships       tourism spreads from Pattaya, Bangkok            The key, industry players believe, lies in
          on the uptick as destinations         and Chiang Mai to the second-tier cities,”       multigenerational experiences. President            in Malaysia, South
the likes of Shanghai Disneyland, Lego-         observed Wuthichai.                              and CEO of the International Associa-
land Japan and Malaysia’s Movie Anima-             Meanwhile, service supplier WhiteWa-          tion of Amusement Parks and Attractions             Korea and India.
tion Park Studios seek out movie and car-       ter Southeast Asia has signed to develop         (IAAPA), Paul Noland, observed: “We are             Paul Noland
toon producers to create new universes of       “world-class water parks” in Thailand,           seeing parks capitalise on the nostalgia            President and CEO,
amusement.                                      Vietnam, Cambodia, Malaysia, the Philip-         factor. Successive generations like to share        International Association of Amusement
   With fun being a serious business in         pines and Bahrain, said CEO Chris Perry.         experiences that they enjoyed growing up,           Parks and Attractions
               Asia, water playgrounds             Yet, as the competition heats up, the         so the trend is to create high-quality rides
               have also been making a          market size is shrinking. In 2015-2016,          that all members of the family can enjoy.”
              splash. From 2015-2016,           overall visitor numbers in Asia-Pacific’s           Wuthichai agreed, adding that fam-           resort in the Entertainment City gaming
              visitor volume to water           top 20 amusement parks dipped 2.8 per            ily rides generate the most visibility and      strip. The US$2.4 billion project boasts a
             parks in the region climbed        cent from 130.9 million to 127.3 mil-            discussion on social media for Siam Park        casino, hotel, dining and shopping out-
                                                                                                 City, Thailand’s oldest water park.             lets, and conference spaces, in addition to
                                                                                                    “The trend is to become more family-         a 1.2km-long multimedia show compris-
                                                                                                 oriented, so we’ve invested in rides that       ing choreographed water, light and music
                                                                                                 the whole family can go on,” said Wuthi-        performances.
                                                                                                    chai. “We’ve had customers who haven’t          Such multimedia shows are also gain-
                                                                                                       visited our park in five years come       ing traction with operators across Asia,
                                                                                                          back.”                                 checking off boxes as a multigenerational,
                                                                                                               Operators also reported           sustainable and cost-effective revenue
                                                                                                              that more developers are           driver, with Marina Bay Sands’ Spectra
                                                                                                               capitalising on this trend by     light-and-water extravaganza by its prom-
                                                                                                                transforming casino com-         enade as a recent example.
                                                                                                                 plexes into mixed-use, fam-        “Multimedia presentations help us
                                                                                                                  ily-friendly destinations.     keep (attractions) current and relevant for
                                                                                                                     According       to    Ken   the next generation, who come back to ex-
                                                                                                                  Wheatley, director of enter-   perience something old that’s new again,”
                                                                                                                  tainment technology sup-       said Paul Rivet, director of entertainment
                                                                                                                  plier Christie, Macau led      at Walt Disney Attractions Japan.
                                                                                                                 the pack in the development        Often conducted in the evening, mul-
                                                                                                                of mixed-use integrated re-      timedia shows motivate visitors to stay
                                                                                                               sorts, which was soon repli-      longer at resorts or even overnight, and
                                                                                                             cated in the Philippines, South     can drive on-site F&B spending to 15 per
                                                                                                            Korea and Singapore.                 cent more, said Jean-Christophe Caniza-
                                                                                                             The latest talk of the town is      res, chairman and CEO of French multi-
                                                                                                       Okada Manila, a 44ha integrated           media provider ECA2, which developed
                                                                                                                                                 the Wings of Time show in Sentosa.
                                                                                                 Siam Park City, Bangkok                            They can also be “refreshed easily and

Upcoming attractions in Asia

Jeju Shinhwa World, South Korea                 Jeju’s largest retail and F&B complex, a YG      development and will operate the park follow-   20th Century Fox World. The 10ha park will
Opening in phases this year, the 250ha Jeju     entertainment centre, MICE facilities and ca-    ing its opening, slated for later this year.    feature six themed zones such as Alien vs
Shinhwa World will be Jeju’s first integrated   sinos. The 344-room Somerset Jeju Shinhwa                                                        Predator, Ice Age and Planet of the Apes. It is
resort. It will encompass premium accom-        World opened on April 25, while the 630-         Lionsgate Entertainment World, China            slated to open later this year.
modation, a family theme park, water park,      room Jeju Shinhwa World Marriott Resort &        Scheduled to open by the end of 2018 in
                                                Spa will launch in two phases, starting with     Novotown on Hengqin Island in Zhuhai, the       Universal Studios Beijing, China
                                                486 rooms in late-2017.                          2.2ha indoor park will be themed around         Universal Studios’ latest foray is a 405ha
                                                                                                 Lionsgate’s key franchises, including The       destination resort in Tongzhou, Beijing, with a
                                                Wet’n’Wild Haikou, China                         Hunger Games, The Twilight Saga, The            reported US$3.3 billion initial capital invest-
                                                Built on the Mission Hills Golf Resort Haikou    Divergent Series and Now You See Me. It is      ment.
                                                on Hainan Island, Wet’n’Wild Haikou is one       developed by Thinkwell Group with consulta-        A joint venture between Beijing Shouhuan
                                                of Village Roadshow Theme Parks’ (VRTP)          tion by VRTP, which will manage its opera-      Cultural Tourism Investment and Universal
                                                first debuts in Asia, bringing China its first   tions after the opening.                        Parks & Resorts, the theme park will feature
                                                Wet’n’Wild-branded theme park.                                                                   existing Universal Studio attractions as well
                                                    The site is a cluster of hotels – includ-    20th Century Fox World, Malaysia                as new attractions reflecting China’s cultural
                                                ing the recently opened Ritz-Carlton – and       Under the 10-year Genting Integrated Tour-      heritage, alongside a retail, dining and en-
                                                a retail, dining and entertainment precinct.     ism Plan, Genting Group is developing its       tertainment district and themed hotels. It is
Lionsgate Entertainment World                   VRTP is currently providing consultation for     Outdoor Theme Park into the US$300 million      scheduled to open in 2020 or later.
A chance for change - Bad Request
August 2017 TTG Asia 7

changed seasonally”, said Michael Reid,        quick to hop on this trend, with the Gent-
founder of IconPath Curated Experiences.       ing Group’s 20th Century Fox World open-
    This is a big selling point – especially   ing this year-end, and the launch of the
for regional parks with smaller budgets        DreamWorks-branded DreamPlay attrac-
– as operators prioritise the “sustained re-   tion in City of Dreams Manila.
peatable value” of an attraction, explained       Entertainment + Culture Advisors re-
Ron Merriman, managing director of MR          ported that other Asian markets, includ-
ProFun China, the company that helmed          ing Vietnam and South Korea, are in talks
Ferrari World Abu Dhabi.                       to develop integrated resorts with interna-
   While parkgoers may be eager to em-         tional IP.
brace multimedia extravaganzas, industry          Still, Indonesia currently lacks IP at-
experts caution operators against leaning      tractions, noted David Sutiono, director
on trending technology as the focal point      of Funworld Prima. He added that in or-
of the attraction.                             der to boost international visitor volume,
   “We have to recognise it’s the story and    the country should promote its culture
experience that is important. The tech-        and islands, as it has potential for huge
nology delivers it,” said Darrell Metzger,     market growth in 10 years or more.
former CEO of Ocean Park. “We have to             Wuthichai commented: “It can be dif-
be willing to abandon the technology and       ficult for major companies to come in                                  Clockwise from left: Redhorse
replace it with whatever it is that can tell   because there is no major land mass like                               Osaka Wheel in Expocity and Lego-
your story.”                                   the US or China. In my opinion, smaller                                land Discovery Center in Osaka;

                                                                                             r.nagy/shutterstock
                                               integrated resorts are the solution.”                                  Shanghai Disneyland; Spectra
The park battle wages on                          On the other hand, Wuthichai is opti-                               Light and Water Show at Marina
                                                                                                                      Bay Sands, Singapore
As Asia continues to receive new openings      mistic of Thailand’s theme park potential,
and expansions, China is seeing multiple       as the country received 32.5 million visi-
IP projects – including Zhuhai’s Lionsgate     tors in 2016 and expects an upwards of 34
Entertainment World and Universal Stu-         million this year. The country’s main con-
dios Beijing – in the development pipe-        cern lies in increasing repeat visitations,
line. TEA projects that by 2020, attend-       which will be tackled with continued gov-
ance at theme parks in China will surpass      ernment investment in man-made attrac-
those in the US.                               tions over the next five years, he shared.
   While numerous IP-driven develop-              Elsewhere in Asia, previously untapped
ments are in the pipeline across Asia,         markets are emerging into the fore. Said
countries outside of China may find            IAAPA’s Noland: “Vietnam has huge
                                                                                              MarinaBay Sands

greater favour in smaller or regional IP       growth potential right now, and we also
projects.                                      are seeing growth in Malaysia, South Ko-
   Malaysia and the Philippines were           rea and India.”
A chance for change - Bad Request
Report Airports

Planning for tomorrow
Now that the ASEAN Open Sky Agreement is finally ratified, getting the airport infrastructure planning right
and ahead of demand growth are the greatest challenges the region needs to overcome, say industry chiefs

Andrew Herdman
Director general
Association of Asia Pacific Airlines

The Asia-Pacific region is already the
world’s largest aviation market in terms
of both passenger and freight traffic vol-
umes, and is expected to continue grow-
ing at five to six per cent annually over the
next two decades.
   This year, four billion people world-
wide will travel by air, with a third of them
being carried by Asian airlines. By 2035,
this region alone will account for over
three billion air passengers annually, ac-
cording to IATA projections.
   The growth of aviation also delivers
wider social and economic benefits, and
nowhere is this more evident than key
                                                lOvE lOvE/shutterstock

markets in ASEAN, where tourism is a
significant contributor to national GDPs,
and air links are crucial to the movement
of people and goods across large archi-
pelagos. At the same time, steadily rising
                                                                         will continue to double in size every 12-                             Clockwise from above: Air traffic congestion is common at Bangkok’s Suvarnabhumi Airport; SITA
incomes and growing numbers of middle                                                                                                          Smart Path technology kiosks at Brisbane Airport; Singapore Changi Airport’s soon-to-open Terminal 4
class consumers across the region are fur-                               15 years.
ther accelerating the growth of air travel.                                  Some air travel markets in Asia have
   Nevertheless, the relentless growth in                                grown even quicker, highlighting the need
travel demand also raises a number of                                    for clear long-term vision and commit-
associated challenges for the ongoing de-                                ment to investing boldly for the future,
velopment of the industry, notably in rela-                              not just incremental expansion. It is criti-
tion to infrastructure capacity. At current                              cally important that the associated avia-
growth rates, the Asian air travel market                                tion infrastructure, including airports,
                                                                         runways, terminal capacity and air navi-
                                                                         gation services, keeps pace with the pro-
                                                                         jected growth in demand.
                                                                             Several airports in the region are al-
                                                                         ready experiencing problems with air
                                                                                                                        Changi Airport Group

                                                                         traffic congestion, especially during peak
                                                                         hours of the day. Some busy airports in
                                                                         ASEAN, including Jakarta, Manila and
                                                                                                                                                                                                                       SITA

                                                                         Bangkok, are operating well above their
                                                                         designed capacity, threatening to degrade                             ing much needed additional runways, but             delays to other flights.
                                                                         service performance and constraining                                  developing such infrastructure involves                Governments have a key role to play
                                                                         the development of new routes and flight                              complex planning decisions and multi-               in providing proper regulatory oversight
                                                                         frequencies. Vietnam provides a further                               year construction programmes.                       and coordinating the necessary long-term
                                                                         illustration of the potential for rapid                                  Air traffic congestion and infrastruc-           planning decisions required for timely de-
                                                                           growth in air travel in line with broader                           ture bottlenecks can quickly lead to de-            velopment of aviation infrastructure.
                                                                            economic and social development, now                               graded service levels for both passengers              Air travel offers exciting growth pros-
                                                                             being backed up with major invest-                                and airline operators. Flight delays can            pects, but continued progress can only
                                                                             ments in new airport infrastructure.                              cause significant frustration to passengers,        be effectively sustained when all relevant
                                                                                Major Asian hub airports including                             and the effect is compounded if it leads to         parties work closely together in active co-
                                                                              Hong Kong and Singapore are add-                                 missed connections and consequential                operation and collaboration.

On the top of ASEAN airlines’ wish list: infrastructure investment
Nicholas Ionides, divisional vice presi-                                 ences, and increasing runway capacity                                 at a low cost.                                      Jaime J Bautista, president and COO,
dent public affairs, Singapore Airlines                                  wherever possible to reduce aircraft                                     The real issue is slots at the air-              Philippine Airlines
                         We would like to                                holding in the air and on ground. Such                                ports. Though traffic rights have been                                        My wish is for
                         see the authorities                             investment in infrastructure is necessary                             liberalised, there is still airport conges-                                   airports to focus on
                         take a proactive                                to support the continuing growth of                                   tion across some of the major airports                                        infrastructure
                         approach and                                    tourism and air travel in this region.                                in ASEAN, such as Manila and Bali. In                                         because this will lead
                         long-term view of                                                                                                     markets like these, there has to be more                                      to the growth of the
                         airport planning,                               Francis Loi, head of commercial,                                      easing of slots to airlines to enable them                                    aviation industry in
                         and that includes                               Jetstar Asia                                                          to grow.                                                                      the country. For the
                         making sufficient                               The policy of open skies has to be fol-                                  Singapore and Jakarta airports are                                         country’s aviation
aircraft contact stands available, leveraging                            lowed with soft and hard infrastructure                               addressing this, in terms of improving              industry to fully maximise the potential of
new technologies to improve the check-in,                                and improvements. LCCs need terminals                                 efficiency. Others are addressing this with         ASEAN Open Skies, we should have the
immigration and security check experi-                                   that deliver quick aircraft turnarounds                               the expansion of runways and terminals.             facilities to support the market growth.
A chance for change - Bad Request
August 2017 TTG Asia 9
                                                                                                                                                              TTG Travel Trade Publishing
                                                                                                                                                                 Trade Media Partner

                                                   drop, at border control or aircraft board-     sengers can check-in at a kiosk, choose       evident that self bagdrop successfully in-
                                                   ing – passengers simply complete a facial      their seats and print their boarding passes   creases efficiency, with passengers being
                                                   scan without having to present their pass-     and bag tags; and drop off their baggage at   able to drop their bags in less than 20 sec-
                                                   port or boarding card.                         automated bagdrops.                           onds, as experienced at major airports in
                                                      The ability to integrate seamlessly at so      In Asia, airports are increasingly turn-   Australia like Melbourne and Brisbane.
                                                   many touch points would make at least 70       ing more to self-service to manage in-           Technology can provide many benefits
                                                   per cent of the journey faster, smoother       creasing passenger numbers. For example,      to airports – the ability to handle more
                                                   and less stressful for passengers. A trial     at Changi in Singapore, SITA is providing     passengers within the constraints of exist-
                                                   with Brisbane Airport for Smart Path has       a combination of self-service check-in ki-    ing infrastructure, while ensuring a fast,
                                                   been launched.                                 osks, self-bag drop and self-boarding to      seamless and stress-free journey for trav-
                                                      Another area is self-service, where pas-    increase passenger throughput. It is also     ellers.

Sumesh Patel
President, Asia-Pacific
SITA

IATA estimates that by 2036, 7.2 billion
passengers will travel by air annually,
nearly doubling the four billion air pas-
sengers expected in 2017. The Asia-Pacific
region is expected to lead this growth,
accounting for over half of the new pas-
sengers over the next 20 years, and China
will take the top spot as the world’s largest
aviation market in/around 2029.
    With the sheer number of travellers
passing through our airports, plus more
flights and aircraft to be managed, it’s no
surprise that we see a lot of infrastruc-
ture investment in this region. However,
as passenger volumes are increasing way
faster than new airports or terminals can
be built, airports need to get smart about
the way they handle this growth. In many
cases, innovation and technology can be
the answer.
    The latest of these is biometrics tech-
nology, which integrates with existing
airport infrastructure, including indus-
try standard equipment such as check-in
kiosks, bagdrop units, gates for secure
access, boarding and automated border
control. The SITA Smart Path technology
allows a passenger’s biometric details to be
captured through a facial scan at the first
touch point in the journey such as a check-
in kiosk. The biometric record is checked
against the passenger’s travel documents
and a secure single token is created.
    Then, at every additional step in the
journey – whether it’s during self-bag-

   The Philippine administration should
study the possibility of building a new inter-
national airport in Manila or expand existing
airports. Terminal 2 at Ninoy Aquino Inter-
national Airport, for example, is designed
to accommodate 28 million passengers per
year. At present, it is handling 34 million per
year – way beyond its allowable capacity.
   Improvements can also be made to
existing airports outside Manila like Clark
International Airport. Efforts are underway
to improve fuelling facilities, airline catering
and ground handling.
A chance for change - Bad Request
Destination Malaysia
                                                                                                                                                                            Viewpoints
                                                                                                                                                                            What more must be done to boost
                                                                                                                                                                            Chinese interest in the state?

                                                                                                                                                                            Raaj Navaratnaa,
                                                                                                                                                                            general man-
                                                                                                                                                                            ager, New Asia
                                                                                                                                                                            Holiday Tours
                                                                                                                                                                            & Travel
                                                                                                                                                                            Segmentising the
                                                                                                                                                                            market accord-
                                                                                                                                                                            ing to interests is
                                                                                                                                                                            important. Collaterals
                                                                                                                                                                            and marketing materials can be created
                                                                                                                                                                            according to the needs and interests of the
                                                                                                                                                                            different segments that have been identified
                                                                                                                                                                            by the tourism board.

                                                                                                                                                                            Adam Kamal,
                                                                                                                                                                            CEO, Olympik
                                                                                                                                                                            Holidays
                                                                                                                                                                            The state
                                                                                                                                                                            tourism board
                                                                                                                                                                            should also
                                                                                                                                                                            look at consistent
                                                                                                                                                                            marketing efforts
                                                                                                                                                                            targeted directly at consumers. This can be
                                                                                                                                                                            done through print, TV and online advertising.
                                                                                                                                                                            Besides leisure, incentives is another area
                                                                                                                                                                            that can be tapped.

In a state of
                                                                                                                                                                                Meanwhile, the growing force of Chi-
                                                                                                                                                                            nese FITs and their increasing thirst for
                                                                                                                                                                            diverse travel experiences stand Sarawak
                                                                                                                                                                            in good stead to court this burgeoning

vast potential
                                                                                                                                                                            market.
                                                                                                                                                                                “We see two types of Chinese FIT pro-
                                                                                                                                                                            files. There are some who extend their stay
                                                                                                                                                                            in Sarawak for three or four days and ex-
                                                                                                                                                                            perience the local food, city, heritage sites
                                                                                                                                                                            and culture,” observed Leong.
                                                                                                                                                                                The second segment comprises “spe-
Although lacking direct flights from China, Sarawak could                                                                                                                   cial interest travellers” who stay longer
                                                                                                                                                                            and seek activities ranging from diving
see Chinese inbound tourism take off thanks to new                                                                                                                          and deep sea fishing off Miri, to visiting
                                                                                                                                                                            longhouses and birdwatching. These are
major incentives and partnerships. By S Puvaneswary
                                                                                                                                               Lillian Tveit/shutterstock

                                                                                                                                                                            typically millennial travellers who travel
                                                                                                                                                                            in small groups of less than six, she added.
                                                                                                            Deer Cave in Mulu National Park                                     But for Kuching-based Bel-Air Travel
                                                                                                                                                                            and Tours, arrivals from China dropped
                                                                                                                                                                            30 per cent in the wake of the MH370 in-

B
         eing a relatively late entrant in      38,345 Chinese tourists visited Sarawak.       B2B roadshows in China’s first-tier cities,                                  cident in 2014, and Hong Kong Airlines’
         courting the high-growth China         China as a visitor source market ranked        as well as increasing visibility through film                                abrupt suspension of service to Kuching
         market, Sarawak is playing catch       fourth for Sarawak, after Brunei, Indone-      tourism with the Filming Support Unit –                                      in February after launching in May 2016
         up with other destinations in          sia and the Philippines.                       set up earlier this year – to process film                                   further dented its Chinese FIT business –
Malaysia through major tourism partner-            In the absence of scheduled direct ser-     permits from international production                                        not just from Hong Kong but also from
ships and incentives targeting the Chinese.     vices from China, the state government of      houses.                                                                      Shenzhen and Guangzhou, said managing
   As the top medium-haul market, arriv-        Sarawak began offering a free-entry pass          A 100-minute Chinese movie Blue                                           director Alice Khor.
als from China to Malaysia reached a re-        for Chinese tourists travelling to the state   Tears was released in May, with scenes                                           She added: “The main challenge in at-
cord 2.1 million tourists last year, yet only   directly from China on October 30, 2016.       shot in Miri featuring the beach, long-                                      tracting the Chinese market (to Sarawak)
                                                   This is to encourage charter services       houses and Mulu National Caves.                                              is the lack of good beaches and beach ac-
                                                from China to offer connections and pro-          Sarawak Economic Development Cor-                                         tivities, which is why the Chinese prefer
                                                vide alternative access to Chinese tourists    poration (SEDC) recently entered into an                                     Sabah.”
Destination in numbers                          who use Kuala Lumpur as the main gate-         MoU with international Chinese tour-                                             However, the opening of Borneo Sa-
                                                way, for whom a single-entry e-visa for up     ism development company, Beijing Glory                                       mariang Resort City, a 202ha integrated
   5 million                                    to 30 days costs US$25.
                                                   Prior to this development, Chinese
                                                                                               International Culture Development, to
                                                                                               develop the state’s tourism potential and
                                                                                                                                                                            resort featuring a water park, safari and
                                                                                                                                                                            1,000-room hotel will attract more family
   Targeted visitor arrivals to Sarawak         tourists visiting Sarawak had to connect       hospitality management.                                                      travellers from South-east Asia and China
   in 2017, an increase from last year’s        through Kuala Lumpur or Kota Kinabalu,            Under the agreement, Beijing Glory                                        to Sarawak, Khor said.
   arrivals which totalled 4.7 million          making it a challenge to sell the destina-     will manage two SEDC hotels, Damai                                               Sarawak’s potential to attract the China
                                                tion to budget-conscious travellers who        Puri and Grand Margherita, take over the                                     market has not gone unnoticed by Bandar

   RM2,236
                                                would favour combining Kuala Lumpur            management of tourist attractions such as                                    Seri Begawan-based Freme Travel, which
                                                with Langkawi, Penang, Malacca or Johor        Bako and Mulu National Park, and make                                        started to package Brunei with Miri early
   Average per capita expenditure of            to avoid additional flight costs, according    Kuching the South-east Asian hub for                                         this year to leverage the free-entry pass
   foreign tourists to Sarawak in 2016,         to Mint Leong, managing director of Sun-       China Express Airline.                                                       that also applies to Chinese tourists enter-
   equivalent to US$525                         flower Holidays.                                  Gracie Geikie, director of Planet Bor-                                    ing Sarawak overland from Brunei.
                                                   Sarawak Tourism Board (STB) has             neo Consultants, is also providing con-                                          Said Sugumaran Nair, manager, in-
                                                signed MoU with three charter operators        sultation to a large conglomerate in China
   6.4 nights
                                                                                                                                                                            bound & MICE division: “We are en-
                                                in Wuhan, which will also see the board        looking to develop a retirement village in                                   couraged that agents from Shanghai are
   Average length of stay of international      assist in itinerary planning and fam trips     Kuching comprising recreational facilities                                   selling Brunei-Miri combinations, which
   visitors to Sarawak in 2016                  for the media and bloggers.                    and a specialist centre. Once completed in                                   showcase the cultural aspects of Brunei,
                                                   The NTO is also promoting the desti-        three years’ time, it is expected to attract                                 and nature tours to Niah Caves and Mulu
                                                nation through consumer advertising and        senior travellers from China.                                                National Park in Sarawak.”
August 2017 TTG Asia 11

                                                                                                                                              MY WAY

Issue of the day

The dreary side of competition                                                                                                                           Nigel Wong
S Puvaneswary looks at price slashing, depleting                                               supply of rooms in the capital, some local
                                                                                               hoteliers have resorted to providing simi-
                                                                                                                                                Director, Urban Rhythm Tours
margins in Malaysia’s competitive inbound sector                                               lar rates to OTAs as what was enjoyed by             Adventures and Travel
                                                                                               local wholesalers.”

I
      ntense competition from new en-            transportation, food and entrance fees in-       On top of that, the OTAs get paid a 15
      trants, along with weakening book-         creases annually,” he lamented.               per cent commission upon meeting sales
      ings from most major markets in the           Furthermore, some leisure players are      targets and are spared the country’s six per   What are some of the challenges
      past two years, are giving rise to price   also courting MICE groups in their quest      cent GST charge by being based overseas,       that Malaysia faces as a tourist
undercutting among Malaysian inbound             to diversify business.                        he said.                                       destination?
tourism players.                                    Abdul Rahman Mohamed, general                 When contacted, Malaysian Associa-          Malaysia has many things to offer
   Arokia Das, senior manager at Luxury          manager, Mayflower Holidays, said: “Be-       tion of Tour and Travel Agents’ (MATTA)        tourists but somehow the message
Tours Malaysia, told TTG Asia that the           cause GIT and FIT movements are slow,         president KL Tan said: “We are aware of        is not getting through. While tour-
weak inbound market in recent years has          players are encroaching into the MICE         this issue and will sit down with the local    ist numbers have increased over the
compelled some inbound agents, who               sector targeting China, India and regional    hotel associations to find a solution.”        years, they have not been exponen-
traditionally handled longhaul markets,          markets by selling at very (low prices).”        In 4Q2017, MATTA plans to organise          tial and there is still room for further
to diversify into new markets for survival.         However, apart from the low prices,        roadshows to Nanning, Guilin, Shenzhen         growth. The challenge for the tour-
   As a result, price undercutting became        these players provide “no other value         and Guangzhou in China; Bengaluru,             ism industry is to promote the coun-
the call of the day to break into a mar-         proposition”, he opined.                      Chennai and Kochi in India; Manila and         try as a fresh destination.
ket and quickly build up clientele, he re-          “They do not offer added value to the      Cebu in the Philippines; and Yogyakarta           We are lagging behind our neigh-
marked.                                          whole MICE experience. They may get           and Semarang in Indonesia.                     bours as legislature infrastructure is
   “Prices have become so competitive            first-time business, but it is not sustain-      Tan commented: “These roadshows,            cumbersome, and not conducive in
that it’s now a volume game with razor-          able in the long run and will affect the      which are jointly organised with Tour-         empowering the tourism industry
thin profit margins. In 2014, we (had) a         reputation of Malaysia as a MICE destina-     ism Malaysia’s overseas offices, are a cost-   to take a step forward. The tourism
profit margin of around 12 to 15 per cent.       tion in the long run.”                        effective manner for small and big players     industry must be liberalised and li-
Now we are lucky to even get 10 per cent.           A local wholesaler, Ally Bhoonee, ex-      to join and build their contacts, expand       censing simplified to allow tour op-
   “Our package prices remain almost             ecutive director of World Avenues, said:      market share and ultimately draw more          erators to compete on a level playing
the same since 2014 although hotel rates,        “Due to a soft market resulting in an over-   arrivals into Malaysia.”                       field with ride-sharing apps and ho-
                                                                                                                                              teliers.
                                                                                                                                                 Another challenge is the lack of

NEWS IN A MINUTE                                                                                                                              innovation among travel industry
                                                                                                                                              players. We must look at what our
                                                                                                                                              counterparts in other countries are
1                                                        Hotels now fall under categories of                                                  doing so we can upgrade our prod-
     AirAsia X says Aloha                                                                                                                4
                                                      City Hotels, Highland Hotels, Island/                                                   uct offerings and exceed theirs.
     AirAsia X launched the four-times
     weekly Kuala Lumpur-Honolulu                     Beach/Lake/River Resorts, Innova-
                                                      tive Hotels and Boutique Hotels.                                                        If I had my way to improve things,
     route via Osaka on June 28, becom-
                                                                                                                                              I would... focus a lot more on devel-
     ing the first Malaysian carrier to fly to
     the US. Guests transiting in Osaka do       3    Hilton now in Kota Kinabalu                                                             oping quality infrastructure such as
                                                      The Hilton brand has expanded to                                                        connectivity and facilities to cater for
     not require a Japanese visa during the
                                                      Kota Kinabalu with the opening of                                                       business travellers, including dedi-
     two-hour stopover, and can return to
                                                      the 305-room Hilton Kota Kinabalu                                                       cated MRT lines to Sepang Interna-
     their seats after clearing security with
                                                      in March.                                                                               tional Circuit, Putrajaya and Cyber-
     any carry-on luggage or belongings.
                                                         All rooms and suites are equipped                                                    jaya. Sepang International Circuit
2                                                     with motion sensing technology that                                                     has good facilities and holds races
     New classification and rating
                                                      controls lighting and air condition-     5    MAPS opens at long last                   that attract international visitors,
     system for hotels
                                                      ing, modern furnishings and work-             Movie Animation Park Studios              but it is not convenient to visit using
     A new hotel classification system
                                                      spaces. The property also boasts the          (MAPS), Asia’s first animation            public transport.
     came into effect on June 1, after the
                                                      largest outdoor rooftop pool area             theme park located in Ipoh, Perak             I would bring to the government’s
     previous star rating system based on
                                                      in Sabah with a deck area of 842m2,           opened in June. Sprawled over 21ha        attention the need to focus more on
     the requirements of city hotels were
                                                      a 25m-long swimming pool and a                of land, it features 23 interactive at-   developing our eco attractions and
     deemed unfair to island and hill re-
                                                      separate children’s pool.                     tractions and 15 rides in six themed      provide funding for sustainable and
     sorts.
                                                                                                    zones.                                    viable eco-projects. We have plenty
                                         3       4    Element Kuala Lumpur                             The park houses both interna-          of gazetted sites that are under uti-
                                                      Element Kuala Lumpur, the first El-           tional and homegrown Intellectual         lised and unsustainable because it is
                                                      ement Hotels in South-east Asia,              Properties including DreamWorks           costly to maintain.
                                                      opened in March with 252 guest                characters, The Smurfs and The                I would also like a call to action on
                                                      rooms in configurations ranging               Home of BoBoiBoy. Attractions in-         our national treasure, Taman Negara
                                                      from studio units to three-bedroom            clude South-east Asia’s first car and     National Park, which can be further
                                                      suites. The hotel is located from lev-        bike stunt show, themed dining res-       improved through better facilities
                                                      els 39 to 53 of the mixed-use Ilham           taurants and Malaysia’s biggest drop      and conservation efforts.
                                                      Tower, making it the highest hotel in         tower. Operating hours are 10.00 to
                                                      the city.                                     18.00 daily.
Destination Vietnam
                                                                                                                                                                             Viewpoints

Keeping the land fertile                                                                                                                                                     How can ecotourism be sensitively
                                                                                                                                                                             developed in north Vietnam?

                                                                                                                                                                             Nguyen Thu Trang,
                                                                                                                                                                             director of sales
                                                                                                                                                                             and market-
                                                                                                                                                                             ing, Mai Chau
                                                                                                                                                                             Ecolodge
                                                                                                                                                                             As the resources
                                                                                                                                                                             upon which eco-
                                                                                                                                                                             tourism depends on
                                                                                                                                                                             are limited, one of the
                                                                                                                                                                             biggest issues is resource management.
                                                                                                                                                                             Local people recognise the importance of
                                                                                                                                                                             protecting their resources but there needs
                                                                                                                                                                             to be plans in place.

                                                                                                                                                                             Jack Bar-
                                                                                                                                                                             tholomew, gen-
                                                                                                                                                                             eral manager,
                                                                                                                                                                             Ground Asia

                                                                                                                                                     JunPhoto/shutterstock
                                                                                                                                                                             More organisa-
                                                                                                                                                                             tions and tour
                                                                                                                                                                             operators are
                                                                                       Terraced rice fields in Mu Cang Chai, north-western Vietnam                           committed to shaping
                                                                                                                                                                             the future positively, but a long-term com-
                                                                                                                                                                             mitment to sustainability and understanding
Ecotourism has been a lifeline for northern Vietnam, a region known for its                                                                                                  the responsibilities they have by bringing
                                                                                                                                                                             travellers to such places is needed.
remarkable landscapes and cultures, but can it prevent over- commerciali-
sation and overexploitation? By Marissa Carruthers

N
             orth Vietnam – in particular       cuts the bus journey from 12 hours to six.       out that careful development is essential
             Sapa – is shaping up to be the        She said: “The increase in accessibility      for the region to retain its authenticity.                                  Destination in numbers
             country’s ecotourism hub, as       allows tourists to spend more time seeing        Waste management plans, for instance,
             more operators develop tours       Vietnam rather than travelling from one          need to be put in place to preserve the
and homestays connecting with local eth-
nic minority communities, predominant-
                                                place to another.”
                                                   However, as development in Sapa picks
                                                                                                 unique environment and ecology.
                                                                                                    Expressing her concerns about the
                                                                                                                                                                               2.2 million
                                                                                                                                                                               The number of international arrivals
ly Hmong and Dao.                               up pace – triggering an oversupply in ho-        downsides of ecotourism, Nguyen said:
                                                                                                                                                                               to Vietnam in January and February
   Jack Bartholomew, general manager of         tels and guesthouses, and a surge in room        “(Ecotourism) can have a detrimental ef-
                                                                                                                                                                               2017, a 33 per cent increase, and
Ground Asia, said: “The potential in north      prices – tourism is trickling into nearby,       fect instead. As a destination’s popularity
                                                                                                                                                                               the first time the monthly figure
Vietnam is huge. You have a whole range         less-developed provinces.                        grows, resources sometimes become over-
                                                                                                                                                                               crossed the one million mark
of ecosystems – forests, national parks,           Other areas in north Vietnam, Lang            taxed and natural attractions suffer from
limestone ecosystems and a massive po-          Son, Ha Giang and Son La, are also grow-         (congestion). Visitors can also disrupt
tential for cultural preservation as the area
is home to numerous tribes and ethnic
                                                ing in popularity. Despite the lack of infra-
                                                structure, their off-the-beaten-track ap-
                                                                                                 wildlife, resulting in changes to their feed-
                                                                                                 ing and mating habits.”                                                       10 million
groups.”                                        peal has seen more international visitors           Overdevelopment is another concern,                                        The number of foreign visitors in
   Nguyen Thu Trang, director of sales          incorporating these destinations into their      especially as domestic tourists surge.                                        2016, a year-on-year increase of 26
and marketing at Mai Chau Ecolodge,             itineraries, noted Bartholomew.                     “What you see now is handful of sites                                      per cent. These visitors brought a
agreed: “Ecotourism is undoubtedly a               In February, a masterplan to develop          getting a massive number of visitors while                                    spending power of US$17.5 billion
burgeoning niche market within the Viet-        Mau Son tourism zone in Lang Son was             many others remain unvisited,” said Bar-
nam tourism industry.”
   Besides an increase in ecotourism
                                                given the green light, and 1,500ha was
                                                devoted to developing a range of tourism
                                                                                                 tholomew. “It also means the tourist dol-
                                                                                                 lar isn’t reaching those other places.”                                       11.5 million
products, Shu Tan, founder and di-              products relating to the landscapes and             Stressing the need for proper develop-                                     The anticipated number of
rector of Sapa O’Chau, said the high-           the native Dao, Tay and Nung ethnic mi-          ment plans in ecotourism destinations,                                        international arrivals in 2017, which
way connecting Hanoi to Lao Cai,                nority culture. A target to attract 800,000      Bartholomew added: “Hopefully some                                            will generate about US$20.3 billion
which debuted in 2015, has been key             visitors by 2025 has been set.                   lessons can be learnt (but) the outlook is
to opening the area up to visitors as it           But industry players are quick to point       positive; the potential is huge.”

      MY WAY                                       What are the three greatest chal-
                                                   lenges to Sapa’s tourism and how
                                                   would you address them if you had
                                                                                                 eos and ways to deal with street ped-
                                                                                                 dlers can be made, and publicised via
                                                                                                 social media or shown on flights enter-
                                                                                                                                                        These big commercial developments
                                                                                                                                                     mainly cater to domestic tourism but
                                                                                                                                                     there needs to be a balance between
                                                   your way?                                     ing Vietnam.                                        attracting domestic and foreign tour-
                                                                                                                                                     ists.
                                                   Harassment: Street peddlers are main-         Over-commercialisation: Sapa’s ap-
                                                   ly ethnic minority people selling hand-       peal is its ethnic minority cultures and            Short-term gains: Locals go for short-
                                                   icrafts or providing unlicensed tours         traditions, climate and spectacular                 term gains and often do not care
                                                   and homestays. They pester tourists           landscape. Over-commercialisation                    about proper licensing and training. As
                                                   over long distances to buy their prod-        makes it feel unauthentic.                          a result, there are not enough trained
                                                   ucts or harrass them to hop into mini-           For example, the new Sapa market is              workers in services and hospitality.
                                                   vans with the promise of low fares but        too commercialised compared with the                   There needs to be a training facility
                   Shu Tan                         instead charge exorbitant prices.             old, vibrant market. Another example                in Sapa so local ethnic minorities can
                                                      If these situations persist, the tran-     is the cable car at Fansipan mountain.              fit into this new economy; otherwise
             Founder and director,                 quil image of Sapa will be damaged            Foreigners prefer to climb it rather                the vicious cycle of poverty will nega-
                Sapa O’Chau                        and its appeal lost. Light-hearted vid-       than take the cable car.                            tively affect tourism.
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