TTR Weekly

May tourism marches on

2013-06-19T06:37:46Z

BANGKOK, 19 June 2013: International tourist arrivals to Thailand posted a growth of 19.09%, January to May, this year, according to the latest Ministry of Tourism and Sports’ data.

Released late last week, the ministry’s research registered 10,688,133 trips during the first five months up from 8,974,610 visits during the same period last year. If present trends continue, Thailand could attract as many as 25 million visitors this year.

In May alone, there were 1,846,403 trips increasing 19.36%, compared to 1,546,888 visits during the same month, last year. May is considered a low-season month.

Considering markets by regions East Asia, Europe and the Americas reported gains.

East Asia continues to be the top supplier, (ASEAN included), with a growth of 28.87% from 923,484 to 1,190,126 visits. All identified source markets in the region posted growth except for Cambodia (-11.94%); Laos (-32.13%); and Philippines (-5.41%).

China delivered a substantial growth of 93.77% up from 192,642 to 373,273 trips. This corresponded with data from the Association of Thai Travel Agents that indicated the China market grew 174.78% (138,402) for member companies during May.

Trips from Myanmar grew 48.98%, Indonesia +41.22% followed by Brunei (+39.22%), Hong Kong (+39.19%), Taiwan (+27.19%), Malaysia (+25.64%), Japan (+12.75%), Vietnam (+11.25%), Singapore (+10.61%), and South Korea (+5.74%).

Europe posted a growth of 21.20%, although some markets posted declines: Denmark (-5.13%); Finland (-7.56%); Ireland (-6.30%); Spain (-6.14%); and Sweden (-1.63%).

The top five European markets all reported growth: Russia (+73.14%); East Europe (+28.59%); Switzerland (+20.69%); Austria (+16.67%); and France (+11.41%).

The Americas recorded a slight growth of 0.87% from 80,471 to 81,172 visits. The main markets, the US and Brazil, posted an increase of 1.06% and 6.10% respectively.

However, arrivals from Africa, South Asia, Middle East and Oceania reported a decline of 20.33%, 10.43%, 7.17% and 5.07% correspondingly.

In addition, the tourism ministry reported international tourists to Thailand at Suvarnabhumi Airport reached 1,281,061 visits in May improving 25.14% from 1,023,679 visits during the same month last year.

Haze blankets Singapore

2013-06-19T06:30:34Z

SINGAPORE, 19 June 2013: Singapore on Tuesday stepped up the pressure on Indonesia to fight forest fires as smog from Sumatra Island continued to shroud the densely populated city-state.

The haze in Singapore is reportedly the worst since 2006 reaching 155 on the island’s pollution scale earlier in the week, a level considered hazardous to health.

Prime Minister Lee Hsien Loong said on his Facebook page that Singapore’s foreign and environment ministers had spoken to their Indonesian counterparts to “register our serious concerns and offer our help to fight the fires”.

“We are monitoring the situation closely and will stay in close touch with the Indonesian authorities,” he said in a posting accompanied by a photograph of the Istana government complex grounds shrouded in haze.

Singapore’s Pollutant Standards Index again shot above the “unhealthy” threshold of 100 late Tuesday after easing earlier in the day.

The index peaked at 155 on Monday night, Singapore’s worst outbreak of cross-border air pollution since 2006.

Singapore Foreign Minister K. Shanmugam said he and his Indonesian counterpart Marty Natalegawa “agreed that officials on both sides should meet soon to discuss how best to combat the haze issue”.

Vivian Balakrishnan, Singapore’s minister for environment and water resources, said of the smog: “This is the worst in seven years — and has practically become a permanent fixture every year.”

He suggested that Indonesia name the companies responsible for the fires.

“We need to exert commercial pressure against companies causing the haze,” Balakrishnan said.

On Monday, an Indonesian forestry ministry official, Hadi Daryanto, shifted some of the blame to Malaysia and Singapore, saying their palm oil companies that had invested in Indonesia were also responsible.

“We hope the governments of Malaysia and Singapore will tell their investors to adopt proper measures so we can solve this problem together.”

Regional environmentalists said the problem must be tackled by both Singapore and Indonesia.

Indonesia is Southeast Asia’s largest nation while tiny Singapore, just minutes away by fast boat from Indonesian territorial waters, is the region’s financial hub.

“Singapore is saying that Indonesia needs to enforce the law,” Bustar Maitar, head of Indonesia Forest Campaign at campaign group Greenpeace International, told AFP.

“But in actual fact, some palm oil plantations in Indonesia are listed in Singapore and have headquarters in Singapore. A lot of Malaysian plantations are also based here in Indonesia,” Maitar said.

“In my perspective, it is not only Indonesia. Singapore should also ask its companies who invest in Indonesia to not use fire, doing the same thing to enforce the law and increase environmental awareness.”

Jose Raymond, executive director of the independent Singapore Environment Council, said Singapore and Indonesia should publicly name the plantation owners using slash-and-burn land clearing.

“The public can stand together in letting their voices be heard and this can have a considerable impact on the way these landowners conduct their commercial activities,” Raymond told AFP.

He said a review was needed to “rework rural land-use habits and explore other viable and environmentally sustainable forms of economic revenue generation” in Indonesia.

A spokesman for conservation group WWF Indonesia said part of the problem stemmed from “a lack of field officers who can control fires”.

“The plantations do slash and burn activities because it is cheaper and easier to do so,” he said.

The most severe occurence of the haze problem in Southeast Asia was in 1997 to 1998, when air transport, tourism and commerce were disrupted, causing billions of dollars in business losses.

KAL orders long-haul aircraft

2013-06-19T06:29:13Z

LE BOURGET, 19 June 2013: Boeing announced Tuesday that Korean Air had agreed to buy five 747-8 jumbo jets and six 777 planes in a deal worth some US$3.6 billion (2.7 billion euros) at list prices, adding to an already strong order book at the Paris Air Show.

The US aviation giant said the agreement for the long-haul aircraft was not a firm order, adding it would work with the South Korean airline to finalise the deal.

It caps a highly successful day for Boeing at the world’s largest air show, where the US firm traditionally vies with arch-rival Airbus for supremacy in the number of orders.

Earlier Tuesday, Boeing launched the biggest version of its next-generation Dreamliner family with more than 100 orders for the 787-10 plane from five airlines and leasing companies around the world.

A 787-10 costs US$290 million at catalogue prices, which would mean the contracts were worth US$29.6 billion, although hard negotiation in the airline industry usually results in big discounts from list prices.

Korean Air’s decision to buy five 747-8s will be particularly welcome at Boeing, as the modernised version of the popular jumbo jet has not been faring well.

Jet Airways names new CEO

2013-06-19T06:28:07Z

NEW DELHI, 19 June 2013: Jet Airways appointed Gary Kenneth Toomey as its new chief executive, late last week, two months after a landmark deal in which Abu Dhabi-based Etihad acquired a 24% stake in the Indian carrier.

The partnership still requires Indian government approval which has asked for more information on the financial and operational details.

The 58-year-old Australian replaces Nikos Kardassis who resigned from the airline’s top post on 5 June.

Toomey has “extensive experience in domestic and international airline management, and the right credentials and skills to take Jet Airways forward”, said Jet Airways chief Naresh Goyal in a statement.

Gary-Kenneth-Toomey

The carrier’s chief operating officer Hameed Ali will be the acting CEO until Toomey’s appointment receives regulatory approval, said an airline spokesman.

Toomey has previously served as president and CEO of the Air New Zealand Group and CEO of Airlines PNG in Papua New Guinea during periods of major expansion.

Media reports said Etihad had been keen for a change in Jet’s management since the April deal between the two companies.

“Ever since Jet clinched the deal… the industry was abuzz with speculation that changes in the private carrier’s leadership were in the offing,” the Press Trust of India (PTI) news agency commented after the announcement.

On the revamped Jet Airways board, the Indian carrier will have four members and the Gulf carrier three members, including the CEO.

Toomey said the fast-growing Indian aviation market “offered significant potential for Jet Airways not only within India, but beyond, through new or improved international connections”, PTI reported.

The Jet-Etihad deal is the first overseas investment in an existing Indian airline since the government eased restrictions in September to allow foreign firms a 49% stake in domestic airline companies.

Jet is India’s second-largest airline, with a 22.6% market share, according to the country’s civil aviation regulator.

Last month, Jet reported a quarterly net loss of 4.96 billion rupees (US$90 million) in the three months to March, against a loss of 2.98 billion rupees a year earlier, after being hit by rising costs.

Ghosts dance in Dansai

2013-06-19T06:25:04Z

LOEI, 19 June 2013: The annual Bun Luang and Phi Ta Khon festival, 10 to 12 July, in Dansai district, Loei province, will attract thousands of visitors, who are interested in experiencing colourful and cultural aspects that are special to this province located on the western edge of Thailand’s northeast region.

The Bun Luang and Phi Ta Kon Festival is one of the biggest cultural festivals in Isan and special to Dansai district representing a mix of grand merit making and a ceremony to ask for plentiful rain during the rice planting season linked to local superstitions.

Thousands of visitors, both Thai and foreigners, travel to Dansai to see this vibrant festival. This year, Tourism Authority of Thailand’s office in Loei province expects around 20,000 people will participate in the festival.

TAT Loei office director, Yupa Panrod, told TTR Weekly that this year the festival will not fall on a weekend, which could discourage domestic tourists who travel independently.

“However, the festival should attract 20,000 tourists and generate Bt20 million in Phu Ruea and Dansai during the three-day event,” the director explained.

An emerging trend is for self-drive trips rather than booking through travel agencies so usually the planning is done at the last minute making it difficult to provide accurate forecasts, she said.

“This year, there are special activities as Phi Ta Khon Road with local culture and handicrafts on display as well as OTOP products.”

The special character of the festival and its history attracts visitors from Japan, United States and Germany. Japan is the main market for visitors to the Phi Ta Khon festival during the last 10 years.

Though the Bun Luang and Phi Ta Khon Festival is an annual festival, it does not always fall on the same dates because they have to be determined by a ritual performance by the highly respected mediums, Jao Por Guan and Jao Mae Nang Tiam.

The couple is not easily swayed by commercial aspects of the festival so having fixed dates, or giving adequate warning so more visitors can attend does not figure in their spiritual considerations.

The festival is very genuine and reflects the local Northeast or Isan beliefs in ghosts (Phi) or animism.

The Phi Ta Kon is part of Bun Luang festival and in Dansai district they have been combined into two festivals namely Bun Phra Wet – the festival of the fourth lunar month and Bun Bang Fai – the festival of the sixth lunar month commonly known as the bamboo rocket festival.

Bun Phra Wet is a religious ceremony where locals congregate to listen to 13 Buddhist sermons. It’s believed that being part of the congregation at the sermon sessions guarantees great merit.

Bun Bang Fai festival is held to worship spirits, the protectors of the village and to ask for sufficient rain for the rice planting season.

Features of the three-day festival

The ceremony usually starts as early as 0300 or 0400 with a parade of the men folk from Phon Chai Temple in Dansai district to the Man River. Before sunrise, they will perform a ritual to invite Phra Up Pa Khut, which is considered to be a white marble representation of a holy monk having supernatural powers who can change his form to be whatever he likes to be, such as a slab of marble.

The procession will then bring Phra Up Pa Khut back to the temple where the sacred worship will begin.

The colourful activities begin on the second day at dawn with local people dressed as Phi Ta Khon. They cheerfully perform on village streets in the afternoon. Beautifully decorated cars make up the street parade adorned by colourful flowers and candles. The Phi Ta Khon costumes come in all size from a little Phi Ta Khon to groups of serious looking giant Phi Ta Khon.

Phi Ta Khon is a charming and distinctive festival and visitors can join in with local residents to enjoy this community celebration.

The two mediums, Jao Por Guan and Jao Mai Nang Tiam, will travel in decorated vehicles and people along the procession route will pay respect to them. Late on the second day, bamboo rockets will be launched to encourage rain clouds to soak the fields ready for rice planting.

On the third day, villagers will return to the temple to listen to Buddhist sermons for one last time to close the festival.

Phi Ta Khon

Phi Ta Khon costume are made from rags and bamboo sticky rice streamers as well as scratches of cloth. On the neck or hips, there will be tin cans or bells.

In the past, the costumes would be thrown into the Man River after each ceremony to get rid of bad luck and misfortune. Nowadays, participants keep their costumes and add more decorations with time to keep them looking fresh.

Transport

Nok Air flies daily from Bangkok’s Don Mueang Airport to Loei Airport, about 30 km from Loei town and around 80 km from Dansai. There are no train services. There are frequent bus services. Day services are safer than the late night ones.

Hotels

According to TAT Loei office, there are 350 rooms in 15 hotels and resorts, in Dansai, while Phu Ruea has 697 rooms in 43 hotels and resorts. Loei town has 1,177 rooms in 53 hotels, resorts or apartments.

For further information, visit http://www.phitakhon.com/index.html.

Thailand can top 25m

2013-06-19T06:13:46Z

BANGKOK, 19 June 2013: Kasikorn Research Centre estimates international tourist arrivals to Thailand this year will reach a record of 25.4 million visits and generate Bt1.14 trillion (+15.9%) in revenue on the back of a boom in Chinese and Russian travel.

The centre said value-for-money will continue to be an important factor to lure foreign tourists, but delivering safety should be a priority, now that political tensions have eased.

In addition, cheaper travel on low-cost, or charter flights, will help draw more international tourists to the kingdom.

To maintain the country’s share, the centre suggested there should be renewed cooperation between the Thai private and public sector agencies to develop new tourist products particularly to attract up-scale markets.

It is expected that the number of Chinese tourists will reach about 3.8 to 4 million this year, up from 2.76 million in 2012 and registering a spend of Bt147 to 155 billion.

Meanwhile, the number of Russian tourists is likely to grow 19.1% year-on-year to about 1.56 million arrivals, helping to generate approximately Bt104 billion, up 22.6% year-on-year in tourism income for Thailand.

However, to reach the target the centre said safety and security measures needed to be improved.

According to Ministry of Tourism and Sports data, January to May generated 10,688,133 international trips to the country, up 19.09% from 8,974,610 visits during the same period last year.

Of that, China supplied 1,906,137 visits improving 93.00% from 987,613 in the first five months, while Russia supplied 830,404 growing 33.86% from 620,365 visits last year.

Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects.

EVA a Star player

2013-06-19T06:10:11Z

TAOYUAN, TAIWAN, 19 June 2013: Taiwan’s EVA Airways’ entry into Star Alliance, Tuesday, brings with it the added value of cross-straits travel between mainland China and Taiwan according to alliance CEO, Mark Schwab.

He made the comments on the sidelines of the gala dinner, Tuesday evening, saying EVA Air’s official entry after a year of preparation offered substantial value to the 28-airline grouping.

“It fills a gap and brings the enormous added value of cross straits travel to alliance members worldwide,” he told TTR Weekly.

The airline’s extensive “Asia Pacific rim” network should strengthen the alliance’s cover in what is now the world’s fastest growing air travel market. Other Pacific rim Star members are South Korea’s Asiana and Japan’s ANA. It will also strengthen the Taipei hub, one of 10 major hubs in Asia served by alliance airlines.

Airlines such as THAI Airways International will be keen to tap EVA Air’s US-bound services through code-share agreements, while EVA will most likely codeshare with THAI on flights beyond Bangkok westwards to India, Nepal, Sri Lanka and points in Southeast Asia including the emerging destination of Myanmar.

EVA’s trans-Pacific flights include services to Guam, Los Angeles, New York, Seattle, Toronto and Vancouver.

Earlier, EVA Air’s main rival China Airlines joined Sky Team a much smaller alliance, but it was a key factor prompting EVA to apply for membership in Star Alliance.

At the official acceptance ceremony Tuesday in the EVA Air plane hanger at Taipei’s international airport the Star Alliance CEO said: “EVA Air has successfully completed all joining requirements and I can confirm that our chief executive board has now unanimously accepted EVA Air into our alliance.”

EVA Air’s chairman, Chang Kuo-wei, said its passengers would benefit from greater integration with leading airlines and their frequent flyer programmes.

Earlier in the day, the airline opened a new business-class lounge at Taipei’s airport giving it four lounges that fit Star Alliance’s four card categories.

It took EVA Air a year and half to meet the alliance’s requirements to adjust its computer systems, align its frequent flyer programme and introduce mechanisms for code-share agreements.

Air China was praised during the acceptance ceremony for its role of “mentor airline.” It sponsored the original application and provided support and assistance in the year-long adoption phase.

A top airline official from Air China attended the ceremony, gave a speech congratulating EVA Air and underscored the close ties between the two airlines. In reoccurring messages of thanks throughout the day-long event, there was no mistaking the sentiments and role of Air China. Its mentoring sets the stage that will raise the alliance’s profile in the Pacific rim marketplace, while cementing relations between the two carriers.

Over the next decade China will become the world’s largest outbound travel market, or as one airline executive observed at the event “it will move the goal posts for airline planners, route networks will shift and new aviation hubs will emerge.”

There are hundreds of flights daily linking mainland China and Taiwan operated by both Air China and EVA Air and it is expected to be a key factor in prompting Star Alliance member to establish a swath of codeshare flights with EVA Air to tap the outbound travel boom from China.

EVA Air and its subsidiary UNI Air offer 113 weekly cross-straits flights on 44 routes to 29 destinations.

Lobby cites visa free advantages

2013-06-19T06:01:37Z

HANOI, 19 June 2013: Tourism expert continue to present the case for visa-free travel to the national government claiming it is essential to build the economy, revenue and jobs in tourism.

They are lobbying to stop a Ministry of Foreign Affairs’ proposal to close the visa-free scheme particularly for seven countries.

Vietnam has in place a pilot visa exemption programme for tourists from Japan, South Korea, Russia, Sweden, Norway, Denmark and Finland. It has been running for eight years for some of the countries, but has met resistance from the country’s Ministry of Foreign Affairs. Another visa-free stay programme for ASEAN visitors has not been targeted for review.

The ministry bemoans the loss of visa fee collection claiming the losses it incurs make the scheme unviable.

A tourist visa to Vietnam currently costs US$45 and if the exemption programme continues the ministry loses US$50 million a year in revenue, although tourism experts point out the positive earnings from tourism far outweigh the loss.

They also argue that a visa-free policy saves costs for the ministry, which can reduce its consulate staff payroll at embassies in the seven countries.

Vietnam Tourism Association vice president, Vu The Binh, argues that the loss of visa fees is just a drop in the ocean compared to the huge amount of revenue the tourism sector brings in every year.

Last year, the country attracted approximately 1.5 million visitors from Japan, Korea and Russia. If each visitor spent an average of US$1,500 during their stay, the tourism sector would earn US$2.1 billion and contribute US$210 million in VAT to the State budget.

“While Vietnam may lose several millions from visa exemptions each year, it will gain billions in tourism revenue,” he said.

“We also earn US$210 million in VAT, not to mention the other benefits such as generating more jobs,” he said.

TCT says stay focused

2013-06-19T05:56:43Z

BANGKOK, 19 June 2013: Tourism Council of Thailand says the country should move ahead by adding new tourism products and building quality rather than concentrating on competition from neighbours.

Tourism Council of Thailand president, Piyaman Techapaibun, said Thailand should not be preoccupied with competition, noting Myanmar had just released details of its first tourism master plan funded by the Norwegian government.

“Thailand tourism should increase quality and raise standards to compete with itself instead of looking at what neighbours are doing.”

TCT vice president Pornthip Hirunkate added that a growth in tourism to Myanmar will benefit Thailand and other ASEAN countries after a single market kick off in late 2015.

“We can sell tourism products in all ASEAN destinations… Thailand will still remain an important gateway in the region, while accommodation and infrastructure in Myanmar is insufficient to serve tourists’ demand.”

Association of Thai Travel Agents president, Sisdivachr Cheewarattanaporn, said: “Over the next five to 10 years, Myanmar will fully promotes its tourism potential, add more services and with facilities, it will become Thailand’s major competitor in international markets.”

However, he noted that as Myanmar opens its doors to investors and tourism, more Thai tourists would also visit the country creating a demand for more travel packages in the local outbound market.

Travellers from long-haul markets will also favour multi-destination trips since they are travelling long distances to reach Southeast Asia. They will tend to go for a Thailand and Myanmar trip as it will combine a new destination with a mature one to round off the holiday with shopping and entertainment.

In the past, Myanmar was a very profitable destination for Bangkok-based travel firms to sell. Most the major European tour operators were hesitant to get involved in doing direct business with Myanmar as long as there were sanctions in place. It allowed Bangkok partner agencies to carve out a profitable niche business, using Bangkok as the gateway.

That will now be challenged as European tour operators can go direct and work openly with Myanmar.

Last week, Ministry of Hotels and Tourism unveiled a Tourism Master Plan that has earmarked nearly US$500 million for various projects aimed at developing human resources and tourism-related infrastructure.

The plan was put together by experts and consultants under the Asian Development Bank, but critics say it was an off-the-shelf job hurriedly put together by consultants.

It could just as easily be a master plan for any of the emerging nations of the Mekong Region with a judicious trim here and there to make it applicable to Myanmar’s current situation.

The plan calls for US$500 million in investment, but like so many of Asian Development Bank master plans written for the Mekong Region the devil is always in the detail.

According to local media report, the master plan says the country will attract 3.01 million visitors to Myanmar in 2015 and 7.48 million in 2020. Last year, the country attracted 1.05 million tourists.

It also estimates the country will earn US$10.18 billion from the tourism industry in 2020, up from US$534 million in 2012. The number of tourism-related jobs is targeted to be raised to 1.49 million in 2020, up from 293,700 at present.

Speaking at World Economic Forum on East Asia in Nay Pyi Taw, Minister of Hotels and Tourism U Htay Aung said Myanmar tourism was “waiting for openness”.

“We are going to see both negative and positive impacts as tourism grows, but we have to ensure that tourism develops in the right way through proper management.”

The master plan was developed in consultation with tourism experts from Asian Development Bank (ADB). It includes 38 industry-development projects that are expected to cost a total of US$486.6 million.

Of these projects, 21 have been designated “critical projects” focusing on important infrastructure issues, and they account for US$215.6 million of the budget.

ADB has a very similar master plan on the Mekong region with 21 priority project and five years down track not a single one has materialised.

Funding for the master plan came from the government of Norway, and ADB will supervise the development projects inside the country through its branch office in Nay Pyi Taw.

ADB vice president Stephen Groff described the plan as a “long-term vision”.

The government also plans to update the 1993 Tourism Law to streamline licensing formalities for hotels, restaurants, tour operators and tour guides. Sections governing regulations around the gaming subsector and labour will also be amended.

CAA mulls expansion

2013-06-18T09:54:23Z

PHNOM PENH, 18 June 2013: Cambodia Angkor Air will launch routes to China and South Korean’s Seoul by August including routes to Singapore and Malaysia.

According to local news report, CAA chairman, Tek Reth Samrach, said the flights were part of the airline’s growth strategy.

“Singapore is a hub for Asia, so we have to go there…we will have some market demand in Kuala Lumpur because many Cambodians work in Malaysia.”

However, the details on the flight plan remain hazy at best.

The airline chairman could not offer a timeline on when flights to Singapore and Malaysia would take off, saying only the routes had to take a back seat to the August deadline for establishing flights to Shanghai and Guangzhou in China, and South Korea’s Seoul.

Cambodian government’s private sector working group co-chair, Ho Vandy, said competition is another factor, as CAA could find itself flying into a very crowded market.

Jetstar, Tiger Airways and SilkAir all connect Singapore and Cambodia, while Malaysia Airlines and AirAsia do the same for Kuala Lumpur.

“Ticket prices from these cities are inexpensive, so CAA might find it “hard to compete”, he said.

Cambodia Angkor Air is planning rapid fleet and network expansion as competition intensifies in the Cambodian market. The flag carrier is expected to more than double its fleet by the end of 2015 and launch services to several new markets, including mainland China, Hong Kong, India and South Korea.

Cambodia Angkor Air was established in 2009 as a joint venture with Vietnam Airlines, but remains one of the smallest flag carriers in Southeast Asia, only operating domestically and to two neighbouring countries–Thailand and Vietnam.

Bangkok was finally made the carrier’s first international destination outside Vietnam, with services from Siem Reap to the Thai capital launched in November 2012. A Phnom Penh-Bangkok service was added in February 2013.

Cambodia Angkor Air now serves the Siem Reap-Bangkok market with two daily ATR 72 flights, which will increase to three daily frequencies at the beginning of July 2013, and Phnom Penh-Bangkok with one daily A321 flight.