SOUTH kOREA - Seoul eyes 12 million tourists by 2010

eTN Asia, 12-10-2006

The Seoul Metropolitan government has shared plans to strengthen the city’s business and tourism infrastructure to achieve the same.

On the target set, Seoul Mayor Oh Se-hoon referred to the 2008 Olympics in Beijing and the 2010 World EXPO in Shanghai, which the official felt would provide the country great opportunities to expose the city internationally.

The increased number of foreign visitors will create 200,000 new jobs, as per the projections shared by city officials with The Korea Times. The report added as part of a four-year, 27.7 trillion won ($29 billion) urban development plan aimed at making Seoul a “top 10 world city,” the city promised further investment in developing more leisure and tourists attractions in downtown areas and strengthening the infrastructure for the convention sector to lure more business travelers.

Among initiatives, there are plans on the anvil to reduce the tax burdens for hotels and other businesses in the lodging sector, which currently charge customers value-added tax (VAT). Recently, a 253 million won urban development project, “the Han River Renaissance,” focused on turning the Han River into a major tourist attraction through 2010 by improving its accessibility, strengthening its culture and tourist infrastructure and adding more green areas on its embankments.

The Ministry of Culture and Tourism is working to effectively improve the quality of life in Korea, to promote culture and tourism industries in the globalization process, and to make Korea more competitive in international sports.

>>Full article

ANALYSES - ‘Spas don’t do enough research’

TTGasia, Oct 6 - 12,2006 / No.1498

Research can help the young spa industry avoid costly mistakes, yet it is not doing enough of it. Mak Ying Kwan reports.

RESEARCH is indispensable to successful marketing, especially for the relatively young spa and wellness industry in
the region.

Spa managers need access to reliable industry-wide research and data on their customers’ behaviour, likes, dislikes and expectations.

Yet, spa operators are not doing enough research.

As an example, research conducted by Intelligent Spas shows “relaxation” as the top reason 24.8 per cent male and 34.6 per cent female spa customers go to a spa. “Detoxification” is cited by 3.5 per cent of male customers and 2.4 per cent female customers. “Slimming/weight loss” is cited by 0.0 per cent male and 3.2 per cent female customers. Yet many spa marketing focus on detoxification and slimming/weight loss treatments in their brochures and advertisements, Intelligent Spas co-founder, Mr Stu Garrow, points out.

With this research data, spa managers may decide to stop highlighting these two treatments, or choose to increase the demand for them by educating their customers.

Mr Garrow said: “Research findings can be used to drive business and avoid costly mistakes.” He was speaking at Asia Connect, a conference in Singapore recently organised by Hospitality Sales & Marketing Association International.

Customers surveyed expect “impeccable service”, “hygienic environment” and “a peaceful ambience” when visiting a spa.

However, surveys show these expectations are not met. Just over 19 per cent of male and 18.6 per cent of female customers found “unprofessional treatment” as a main cause of “disappointment during recent spa visit”. Other reasons for an unsatisfied visit include “not clean”, cited by 8.5 per cent of male and 3.2 per cent of female customers, “poor service”, cited by 2.1 per cent of male and 14.7 per cent of female customers and “airconditioning too cold”, cited by 0 per cent of male and 3.2 per cent of female customers.

“Pushy sales techniques” is another factor not appreciated by customers.

Cleanliness and airconditioning temperatures could be easily and quickly corrected at minimal cost once negative customer reaction to them shows up in findings, Mr Garrow said. Operating procedures could be put in place, prioritised, implemented and regularly updated to avoid other pitfalls.

>>Full article

DEVELOPMENTS - Difficult to implement unpopular policy in Philippines

TTGasia, Oct 6 - 12,2006 / No.1498

PHILIPPINE IATA Agents Travel Association (PIATA) president and Rajah Travel executive vice-president, Ms Aileen Clemente, said the Philippines’ unique market conditions also made daily voiding difficult to implement.

The marine market, particularly for sea crew travel, is characterised by changes in port and departure dates, and is governed by stringent travel-tax-exemption procedures. Each IATA agent also has ticket stock allocations, resulting in different formulations of how many tickets they can issue.

Ms Clemente added: “It is a chicken-and-egg situation. To apply for a visa, you need proof of booking. What happens if the visa is denied or the processing is late and you cannot leave on your desired date?”

First Metro Travelex president, Ms Lucille Chabeldin, believed agents would lose flexibility in handling corporate clients. She said: “Business travellers often change their schedule. We used to either refund or re-issue tickets for no-shows or changes in onward sectors. Clients will not pay for unused tickets, so I would now have to pay for them. Sometimes, tickets are highly restricted with no refund value. There are so many issues IATA failed to consider.”

Adding that refund charges would have to be passed on to clients, she anticipated cash flow problems as agents would have to make advance payments for international tickets and taxes.

The trade has asked IATA to defer implementation of the same-day-void regulation. Ms Clemente said: “We already have shorter ticketing time limits that show a higher commitment to ticketing and allow airlines to know their revenue. The rationale behind daily voiding is still unclear.” At press time, IATA had not replied.

Agents are bracing themselves for the effects. Ms Chabeldin said: “Some commitments with corporate clients, especially credit accommodation, will really have to change.”

MALAYSIA - Sarawak works on Lion City

TTGasia, Oct 6 - 12,2006 / No.1498

KUALA LUMPUR – Plagued by falling visitor arrivals from Singapore, the Sarawak Tourism Board has developed a strategy to increase tourist arrivals from its biggest overseas market, by as much as 30 per cent in this last quarter.

In the first quarter of this year, there were 6,373 arrivals from Singapore to Sarawak, a 43.34 per cent decrease over the previous quarter’s 11,248.

Working with the two carriers that fly from Singapore to Kuching, SilkAir and Malaysia Airlines, and the Sarawak Ambassador consortium of agents in Singapore, the board launched Kuching Delight on September 28.

It is a marketing strategy to introduce the unique types of gastronomic, cultural and natural delights of the state capital, Kuching, to outbound travel agents, the media, schools and polytechnics.

Sarawak Tourism Board marketing manager, Ms Mary Wan Mering, explained the focus would be on activities popular with Singaporeans – dolphin and firefly watching, visits to an ethnic longhouse and orang utan rehabilitation centre, and city tours.

The first phase kicks off after the Muslim month of Ramadhan in late-October, with fam trips for travel agents and the press. “This would be ongoing and the airlines would sponsor the flights,” Ms Mering said.

After the year-end school exams and before the holidays begin, the board will hold a product update seminar on tourist spots in Kuching for secondary schools and polytechnics. “Schools have always been very supportive of Sarawak, with two-day/one-night study trips being the norm. We will answer queries on safety, food and any other issues schools may have pertaining to student travel.”

In the last quarter of 2005, Sarawak’s arrivals from Singapore totalled 9,281.

Travel agents said the board’s goal of 30 per cent growth from the Singapore market was very achievable, but felt arrivals for this last quarter could be higher if air fares on the Singapore-Kuching route were lowered.

Reliance Sightseeing director and general manager, Mr Henry Lee, said: “Sarawak Tourism Board should work with low-cost carrier (LCC), AirAsia, and further facilitate travel to Senai Airport for AirAsia flights to Kuching.”

Sarawak’s Third Division Travel Agents Association secretary, Mr Michael Wong, said: “The Sarawak state government should lobby the federal government to allow (Singapore LCC) Tiger Airways to fly to Sarawak. This will definitely see an upswing in numbers, as is seen in other cities when an LCC enters the market.”

Of late, the travel industry has been pinning hopes on the Singaporean LCC to stimulate inbound tourism through better accessibility to the state.

>>Full article

ACOMMODATION - Jumeirah aims for East Asia

TTGasia, Oct 6 - 12,2006 / No.1498

HONG KONG – Dubai-based luxury hotel group Jumeirah is planning for aggressive expansion, and East Asia is key.

Hong Kong is seen as a “must have” location. By 2009, the group aims to have 40 properties. Senior executives were at a recent roadshow in Asia to reveal these plans and introduce new Asia-Pacific vice-president of development, Mr Francis Killory, and senior Asia-Pacific vice-president, Mr Serge Zaalof, both based in Shanghai.

Mr Killory said: “We made a significant step last February when we assumed management of 338-room Han Tang Jumeirah Shanghai at Xintiandi. The city is a major corporate market and it will be positioned at the top end.” The hotel is scheduled to open in mid-2008 before the Olympic Games.

“We are looking at Guangzhou seriously because of its new and different market. The new CBD at Tianhe district has drawn luxury brands such Ritz-Carlton. We are interested in Pudong in Shanghai and are in talks with an owner in the Chaoyang district of Beijing. We are keen on Hangzhou and perhaps Lhasa in Tibet and Lijiang in Yunnan province.

BALI - campaign livens up things

TTGasia, Oct 6 - 12,2006 / No.1498

JAKARTA – Bali is launching a tactical marketing campaign, Bali is My Life, for the last quarter of 2006 in Australia, Japan and Europe as part of its recovery programme.

The B2C campaign will run from October to December with a total budget of US$1.1 million. Bali Tourism Board executive director, Mr Wiwin Suyasa, told TTG Asia: “The campaign is targeted at the end-user. We are focusing on using media as a means of getting to the public, and in Australia and Germany, we are also partnering tour operators and agents.”

Indonesia marketing consultant, Indo Multi Media, has been appointed project leader for the campaign.

The government has set a budget of some US$300,000 for media advertisement placements and a TV programme in Japan.

In Europe, advertising will take place in Switzerland, the UK, Italy and France, while in Germany, the campaign will also include a joint promotion by producing flyers and brochures with TUI Germany and an incentive house. The total budget is around US$400,000. Australia also gets some US$400,000 and Strategy to Implementation, an Australian PR consultancy, has been appointed to handle the media campaign.

Meanwhile, Indonesia will do a joint promotion with Flight Centre, Harvey World Travel and Travelscene American Express in the form of flyers and brochures.

Mr Suyasa said: “These agents sell Bali and they have agreed to do a joint promotion where both parties put in some money to do it. We have budgeted some US$100,000 per agent and they top it up.”

While declining to disclose Flight Centre, Australia’s investment, its director, Ms Sue Robinson, said: “Bali has been our key market and (therefore) we are keen to do our part to contribute.”

Flight Centre will use the money for advertising campaigns with its three major retail brands, Flight Centre, Escape Travel and Student Flights. It will also mount a small promotion with its boutique brand, Travel Associates.

“The campaigns comprise press advertising and point-of-sale for the stores and promotion in our suite of catalogues,” she said.

>>Full article

VIETNAM - US$1.1 billion in Phu Quoc Island projects await greenlight

Thanhniennews.com, October 9, 2006

Southern Kien Giang Province is petitioning the government for the go-ahead on a total of US$1.1 billion in foreign-invested tourism projects on Phu Quoc Island.

The provincial Planning and Investment Department said Sunday the agency had proposed three separate projects invested by the US Rockingham, Canadian Automind Capital Group Inc. and French Victoria to the Planning and Investment Ministry for approval.

Of those, the US-initiated project on a beach-tourism complex in Ham Ninh Commune is at the top of the list in terms of capital – worth $1 billion.

The runner-up is $120 million tourism port, apartment and ecological reserve project in An Thoi township proposed by the Canadian investor.

The French Victoria group plans to develop a tourism village in O Quoi Cap, Cua Can Commune on the north island.

Phu Quoc is the largest island in Vietnam with 561 sq.km and 85,000 residents, 150km of coastline and a good geographical location for international access by sea and air.

The local government has offered preferential policies for investors to join a national plan to transform Phu Quoc Island to an international center for tourism in the Southeast Asia in the next five years.

The plan, which requires a major cash injection from both foreign and domestic sources, is projected to draw some 300,000 - 350,000 visitors annually by 2010 and 2-3 million tourists by 2020.

>>Full article

PALAWAN - S. Korea offers grant for Busuanga airport

Manilastandardtoday.com, October 4, 2006

THE Korean government has offered a grant of P150 million for the improvement of the airport in Busuanga, an island off Palawan’s northern tip which has been touted as the country’s next Boracay, a congressman disclosed yesterday.

Palawan Rep. Antonio Alvarez said the Korean government made the offer as Korean arrivals in the country jumped by 18 percent to 321,308 in the first seven months of the year, making Koreans the second biggest group of visitors after the Americans.

Alvarez estimated that Korean arrivals by the end of the year might hit 600,000 adding that about three jetplane loads of Koreans, or about 1,515 people, arriving in the country daily.

He said the Department of Tourism is expected to spend about $3 million in advertising and promotional programs to lure more of them to the country.

Alvarez said one strategy being considered is to offer the Philippines’ “sand, sea and sun” as locale for Korean films, possibly in joint venture with local production houses.

“We can also have Jewel in the Coconut Palace here,” Alvarez said, referring to the popular Korean soap opera Jewel in the Palace which has been dubbed in Tagalog.

He said the government has estimated that Koreans have spent P15 bilion in the country last year “on the very low assumption” that each Korean spends an average of $500 while in the country.

“If you factor in the long-staying Koreans—those who study college or English language schools here, the figure is definitely higher,” he added.

>>Full article

AVIATION - AirAsia spreads wings to Hanoi

Businesstimes.com, October 10 2006

AIRASIA Bhd on October 4 began flying daily Hanoi-Kuala Lumpur flights, marking the first service to Vietnam by the budget carrier.

Thai AirAsia, AirAsia's sister company is currently serving two daily Hanoi flights from Bangkok, Thailand.

"Going into our fifth year of operations, we have successfully revolutionised low-cost travel in the region and penetrated many cities in Asean, therefore Hanoi is an inevitable choice," AirAsia group chief executive officer Datuk Tony Fernandes said in a statement yesterday.

"We aim to offer more choices for people to fly and low fare will definitely encourage that," he added.

He said Hanoi is an attractive market due to its strong tourism appeal and there has always been a strong demand for Malaysians as well as those in Asia to visit Vietnam.

"This is why we have decided to fly our A320 for this route, which has a bigger capacity. We feel that the timing is right to add Hanoi to our expanding international network and we will not hesitate to increase frequencies when the demand deems fit," said Fernandes.

In a separate statement, AirAsia and its associates' passenger numbers increased 91.1 per cent to 1.13 million passengers for August 2006 from 591,556 passengers a year earlier.

>>Full article

PHILIPPINES - Subic Bay: Rising Star on Eco-Tourism

Philippine News.com, Oct 04, 2006

Weekends are an extraordinarily busy time in the Subic Bay Freeport. As dawn illumines this economic growth center wedged between lush forests and an emerald bay, cars and buses begin snaking down the Tipo Road leading to this tropical paradise —disgorging weary executives from Manila, students for Luzon provinces on study tours, and foreign tourists cramped by traffic and congestion in Manila.

“It’s becoming more of a place for weekend retreats,” observes Vina, a businesswoman from Quezon City, who finds the two-hour trip to Subic well worth it. My kids just love going to the nature-theme parks while my husband enjoys water sports and fishing. I, of course, go for shopping in the duty-free stores here,” she beams.

More than a decade after the withdrawal of the US Navy from what was once the biggest American military facility outside of the continental United States, the imagery associated with Subic Bay has totally changed.

The original planners for the conversion of the then Subic Naval Base had deemed it suitable to be developed into an industrial center, precisely to offset the jobs lost with the US Navy withdrawal. However, while Subic is now home of close to seven hundred locators whose business range from customer service to trade and marketing to manufacturing and estate developing, it has emerged into a prime tourist destination perhaps incomparable to others in the country. While it is true that the US Navy built facilities and infrastructure which later met the needs of prospective investors, it also conserved thousands of hectares of untouched forest lands and pristine beaches. As a result, Subic Bay has become one of the favorite destinations for wreck diving enthusiasts, water sports aficionados, hikers, campers and adventure tourists.

Today, Subic is gearing up to be one of the best eco-tourism destination not only in the Philippines, but in the Asian region as well. The Subic Bay Metropolitan Authority, which manages the Freeport zone, has recently launched an aggressive marketing program to tap Subic’s tourism potentials to the fullest.

Under the helm of SBMA Administrator Armand C. Arreza, a former Department of Tourism undersecretary, the SBMA has outlined a four-pronged plan: develop of a comprehensive marketing strategy for Subic Bay; create integrated tourism products; stage special events to create hype; and promote the culture of tourism.

Arreza contends rightly that Subic should not be limited to the domestic tourist market,” pointing out that direct flights from other countries are possible because of Subic’s own international airport. “We have more facilities and natural attractions that would meet customer expectations, and we offer a variety of activities depending on the interests of our visitors.”

This is one very notable character of Subic that cannot be replicated by other tourist destinations,” Arreza stresses.

Indeed, Subic offers a whole different experience. Subic is not just a beach resort, although it boasts of beautiful. It is not just a recreational site, although water and inland sports facilities are there. It is not just an eco-tourism destination, despite the nature parks and forest adventure packages offered. It is not just a leisure center, despite the restaurants and shops and hotels.

Arreza sees the contrast of Nature and Industry as plus factor that makes Subic unique and, hence, more attractive. As a destination offering virtually the best of both worlds, Subic now aims for a bigger chunk of tourism revenue.

“Tourism is big business and a proven growth engine,” Arreza says, adding that the industry includes such diverse activities as transport, accommodation, recreation, and catering. Citing figures learned by heart during his stint at the Department of Tourism, he points out that total tourism spending worldwide, including those by domestic tourists, annually topped US$3 trillion in the past few years. Local tourism receipts, meanwhile, contributed US1.87 billion or PhP97.45 billion to the Philippine economy in 2002, equivalent to 8.6 percent of the Philippines’ gross domestic product.

“The tourism industry also looks toward a rosy future,” Arreza enthuses, with growth in the Asia-Pacific area projected to increase from a 16 percent share last year to 25 percent by 2020. The tourism industry, he notes, serves close to a billion people each year and ranks as a major sector of the world economy, accounting or nearly 11 percent of the global gross domestic product. Given this potential, the SBMA has identified several target customers like young travelers from Asia, Russian and Eastern Europe; and visitors who prefer customized vacations. Subic is likewise tapping into emerging market segments like retirees and their families, honeymooners, the 18-24 youth market, and those who favor sports and adventure tourism, as well as eco-tourism.

Subic’s tourism program is also proving to be a good incentive to protecting the natural and cultural environment of Subic. Alongside industrialization, which primarily targets job creation, the need to maintain Subic’s ecological integrity has remained a priority for the SBMA —if only for the revenue that tourism generates.

>>Full article

ACOMMODATION - InterContinental eyeing more hotels in Singapore

Singapore Tourism Board, 1-10-2006

InterContinental Hotels Group (IHG), which operates three hotels in Singapore, has welcomed the Singapore government's recent move to release more land for hotel development and says it is planning at least eight more properties within five years.

Tony South, the group's Senior Vice President for development and asset management, said: "It is certainly a positive move to prepare Singapore well ahead to meet the projected increase in number of visitors it hopes to welcome by 2015."

Eight new sites were released recently, the largest number of hotel sites ever put up on the land release programme at one go.

South said the group, which owns the Holiday Inn, Crowne Plaza and InterContinental brands, was eyeing a second InterContinental, one or two more Crowne Plazas and two additional Holiday Inns.

It is also keen launch its limited service/convenience brand, Express by Holiday Inn, in Singapore with plans for between four and eight properties in this tier. The Crowne Plaza Changi Airport Hotel, its fourth property in Singapore, will open early 2008.

Said South: "We see the potential to further expand our existing portfolio here across the InterContinental, Crowne Plaza and Holiday Inn brands, and potentially, other of our family of hotel brands."

Asked if managing multiple properties of the same brand in one city might be challenging, South said: "This is not new to us and brings many benefits to our guests, investors, staff and other stakeholders.

>>Full article

SINGAPORE - Why the Singapore Flyer is such a big deal

Singapore Tourism Board, 1-10-2006

The S$200 million Singapore Flyer will put Singapore on the same stage as world cities such as Paris with its Eiffel Tower and London with its London Eye.

Said Mr Alexander Melchers, the Singapore-based director of Melchers Pte Ltd, whose company is building the 165-metre observation wheel: 'The Singapore Flyer will become an Iconic Viewing Platform and the term, IVP, will become a recognised business model in the tourism industry in five years.'

Notwithstanding that the Eiffel Tower, possibly the most successful IVP in the world was built in the 19th century, Mr Melchers said the business concept had only recently taken root in the tourism industry.

"The London Eye is another good example, as is the viewing platform on top of the Empire State Building in New York City. Since time immemorial, mankind has always had a desire to see things from above - that's why we construct ancient forts and cities and now modern buildings."

What the Singapore Flyer will bring to Singapore is "a unique human experience," said Mr Melchers, whose company opened the Carlsberg Sky Tower on Sentosa in February 2004.

"One of the true experiences of the Singapore Flyer is there will be no sensation of movement because the wheel will be turning so gently. You will feel nothing, only a change in perspective. That's a unique human experience."

Costs less than club cover charges and flip-flops are welcome

The Singapore Flyer, which is scheduled to offer its first ride during Lunar New Year 2008, will offer 28 fully air-conditioned capsules, each capable of handling around 32 passengers at a time.

Situated on Marina Bay, close to the Marina Bay Sands Integrated Resort, the Flyer will offer a unique perspective of Singapore, said Mr Melchers. "When you see Singapore from that perspective, you realise it is a city of colour - the green of the parks, the reds and yellows of Chinatown, the shiny-grey of the skyline and the blue of water."

While some might argue the New Asia bar atop Swissotel The Stamford (170m) and the Sky Park at The Marina Bay Sands would offer similar views, Mr Melchers pointed out the Flyer would offer unrestricted 360-degree views of Singapore and the surrounding areas in just 40 minutes and for the price of a ticket.

"We let you in without a cover charge and you can wear flip-flops," he said. "And it will be a different experience from the Sky Park."

>>Full article

BALI - Voted Best Holiday Destination

Balidiscovery.com, (10/8/2006)

Based on a poll that queried sophisticated frequent travelers over a three month period from May-July 2006, SmartTravelAsia.com recently announced its list of the "best of the best" covering airlines, hotels, and destinations. Mirroring results in the recent Travel + Leisure readers' survey, Bali was, once again, selected as the "Best Holiday Destination" in Asia.

Best Holiday Destination

Proving that Bali's magic is truly indestructible, SmartTravelAsia.com voted Bali its favorite Asian holiday destination, saying, "It is an island that has retained its disarmingly honest and simple charm, a peaceful ritual-minded Hindu enclave in a bustling Muslim country."

Bali garnered 18.7% of total votes in the category followed by Phuket in a distant second receiving 11.3% of the votes cast. The South Indian destination of Kerala captured third place (7%) followed by Bangkok in fourth.

In reviewing Bali's win SmartTravelAsia.com said: "Bali held top spot - and by a wide margin - demonstrating that integrity and authenticity can attract visitor votes, and dollars. This is a reassuring message in an age of instantly bottled and serially manufactured destinations where neon and crocodile shows push everything else off the stage."

>>Full article

INDONESIA - Kintamani Tourism Suffering

Balidiscovery.com, (10/7/2006)

The Indonesian language BisnisBali carried a page-one story reporting that in the four years since the 2002 Bali bombing there have been 22 closures of restaurants and hotels in the hill-top resort area of Kintamani.

According to the report, businesses populating the volcanic crater have been forced to cease operations due to the dramatic drop in visitors and the resulting inability to meet operating expenses.

The newspaper quoted a local businessman who has changed professions from being a restaurateur to selling produce as saying, "What can we do when we are facing growing losses?"

The currently dire situation was confirmed by the Chairman of the Bangli Chapter of the Indonesian Hotel & Restaurant Association (PHRI), I Wayan Winurjaya, who said that many business had closed with the hardest hit being small-sized enterprises. Winurjaya, who is also the owner of the Lake View Hotel and Restaurant in Kintamani, blamed terrorist acts, natural disasters, and fear of disease as all having a negative contribution to the state of Bali's tourism.

>>Full article

VIETNAM - Hoi An ready for APEC Tourism Ministerial Meeting

Vietnam News Agency, 10-5-2006

All preparations for the 4th APEC Tourism Ministerial Meeting (TMM) have been basically completed, said Tran Minh Ca, Vice Chairman of the People's Committee of Quang Nam province, which will host the event in mid-October.

He affirmed that the authorities and people of Quang Nam province as well as of the ancient town of Hoi An, where the meeting will take place, have tried their best to ensure the success of the TMM. The locality has also got ready for cultural activities held during the event, including an APEC tourism fair, a cultural exchange programme between regions to introduce the land and people of Vietnam, and a photo exhibition. The official cited the fact that 1,000 tourists visited Hoi An town - a world cultural heritage site - in three days right after the locality was hard hit by typhoon Xangsane. In particular, a delegation of 120 Spanish visitors stayed at the five-star Palm Garden resort on Cua Dai beach which was hardest struck by the typhoon.

>>Full article

TAIWAN - foreign earnings from tourism set all-time record

Asia Focus, 10-5-2006

Taiwan's foreign exchange earnings from tourism totaled US$4.98 billion last year, setting an all-time record, according to statistics released Wednesday by the Directorate General of Budget Accounting and Statistics (DGBAS).

The statistics also show that forex earnings from tourism in the first six months of this year reached US$2.53 billion. * In terms of visitors, 2004 saw 2.95 million tourist arrivals, with the total growing to 3.38 million in 2005. * For the first eight months of this year, tourist arrivals already reached 2.3 million, while the average cost of a hotel room increased to NT$3,131 per night, with Asians making up 79.3 per cent of tourist arrivals in 2005.

(C) Copyright 2006 Asia In Focus

CHINA - How is China outbound tourism potential viewed by its top tourism officials?

eTN, 10-5-2006

(An interview with a retired top tourism official from China)

The upcoming WTM-ChinaContact conference on bilateral tourism relations with China, is gearing up to be the most comprehensive collection of knowledge and expertise on China tourism sector ever assembled outside China.

A keynote speaker and chairperson of the session on bilateral tourism, Mrs. Shen Hui Rong, has until
recently held the position of Marketing & Communications Director General at China National Tourism Administration (CNTA) in Beijing. For over 27 years, Mrs. Shen played key roles in China rapidly developing tourism industry. She implemented China recovery program post-SARS and has negotiated tourism agreements, known as ADS, with overseas destinations. Her work in this area earned her the nickname s. ADS?

We have interviewed Mrs. Shen about China approach to outbound tourism and the role they see it playing in overall economic growth and social benefit to China. The views reflected are personal and do not represent any official body.

CC (ChinaContact): What is China outbound travel market potential?

SHR: As usual when something is big in China, the numbers mentioned are staggering. The World Tourism Organization forecasts that China will become the world fourth-largest source of outbound tourists by 2020 with more than 100 million departures each year. Outbound travel from China jumped 50-fold in 20 years. In 1997, when the first batch of ADS destinations were approved including Thailand, Singapore, Malaysia, Philippines and the Hong Kong and Macao Special Administrative Regions, only 5.32 million trips were made. The number became 16.6 million in 2002, 20.22 million in 2003 despite the SARS epidemic, 28.85 million in 2004 and 31 million in 2005. It is expected that 2006 will still see 34 million overseas trips (10% increase). China has already replaced Japan as Asia number one outbound travel market.

CC: What type of Chinese visitors will be coming to Europe in the next few years? How is the market going to be segmented?

SHR: According to the survey released in the Annual Report of China Outbound Tourism Development 2005, white collar and company managerial staff are the main source of outbound travel, making up half of the market. This is especially the case in Beijing and Shanghai. 80% outbound travellers are aged between 18-50 with high education. 45% of outbound travellers are from three-member families while couples or singles comprise 30%.

CC: How affluent are the Chinese visitors to Europe?

>>Full article

SINGAPORE - Celebrity designer to create $31m spectacular nightly attraction to enthrall Sentosa guests

Sentosa.com, June 2006

The new attraction will be created by world-renowned and internationally acclaimed Yves Pepin, Founder and President of ECA2, a company recognized the world over as one of the most experienced international teams for conception, creation and production of multimedia shows. Yves along with famous film directors Steven Spielberg and Zhang Yimou, and Ric Birch, the talented producer of the Sydney 2000 Ceremonies, have recently been appointed Artistic Advisers in the creative team for the Ceremonies of 2008 Beijing Olympic Games by the Chinese Organization Committee. Earlier, in March 2006, Yves was also conferred the THEA Lifetime Achievement Award 2006 at the Themed Entertainment Awards considered the Oscars of the Entertainment industry, in recognition of his life works.

“We are proud to collaborate with Yves again,” said Darrell Metzger, Chief Executive Officer of Sentosa, “And we are sure that his creative genius will help us present a world-class nightly attraction to our guests from Singapore as well as overseas. It will be the only such attraction in this region which operates in the sea waters for spectators to watch from the sea shore.”

Sentosa will invest $31 million to develop the new attraction, which will boast dramatic effects and high-tech lasers. Work on the new nightly attraction, conveniently located at the Siloso Beach just by the forthcoming Sentosa Express Beach Station, begun earlier this year and the attraction is scheduled to be complete by 2nd Quarter 2007. The seating capacity of the open-air amphitheatre will be 3,000. Once operational, the attraction is slated to have two shows every night.

>>Full article

THAILAND - Unseen’ Thai tourism: Where does the baht go?

Bangkokpost, October 3rd, 2006

The importance of tourism to the Thai economy from the government’s viewpoint can be seen in budget allocations and corresponding predictions of tourism receipts. By spending just 2.5 billion baht to stimulate tourism in 2005, the Thai government expected to gain 450 billion baht in revenue from 13.38 million inbound tourists.

The government has used tourism as part of its broad development strategies based on two assumptions: tourism is a major source of foreign-exchange earnings and thereby contributes to economic growth; and labour-intensive tourism improves income distribution and alleviates poverty for low-income households.

While the first assumption is well-founded, the second is an illusion.

According to national account data and the Thai Tourism Satellite Accounts produced by World Travel and Tourism Council, on average between 1998 and 2005, international and domestic tourism directly and indirectly accounted for 13% of GDP (655 billion baht), 10% of employment (three million jobs), 13% of exports (417 billion baht), 12% of investment (117 billion baht) and 3% of the government budget (13 billion baht).

As for the optimistic assumption of income-distribution improvement, it is true that tourism expansion creates jobs for unskilled workers and has a direct impact on poverty alleviation. But recent empirical work shows that much of the gain from tourism growth accrues to factors other than unskilled labour.

Moreover, low-skilled jobs in other sectors may be destroyed and returns on agricultural land, from which the poor derive a considerable share of their income, may fall as the tourism industry expands.

Apparently, income distribution is far from effective as tourism grows.
The empirical work implements the Computable General Equilibrium (CGE) approach with the Social Accounting Matrix (SAM) and several parameters for Thailand to investigate the effects of tourism growth on income distribution.

The evidence reveals that although tourism growth benefits all household classes in terms of an increase in overall consumption, income and welfare, much fewer benefits are distributed to the poor.

Specifically, if we examine the income-distribution effects of tourism within the same income level, households in the non-agricultural sector actually gain more benefits than those in the agricultural sector. Within the same sector, high-income households gain more benefits than low-income households.

A case in point: while tourism expands at an average growth rate of 10%, welfare gains in the money metric of low-income agricultural households increase slightly by 3.2% but those of high income non-agricultural households jump by 7.6%.

This implies that tourism expansion in Thailand is neither pro-agricultural nor pro-poor. Why?
The explanation lies on the answers to these questions: What are the major factors of production in the Thai tourism industry? Who are the major owners of those factors? What are the effects of tourism growth on wages and returns?

The empirical evidence shows that non-agricultural capital and non-agricultural labour are major factors of the Thai tourism industry. Non-agricultural capital is mainly owned by business corporations and high-income households. Tourism expansion considerably widens the differential between the agricultural and non-agricultural sectors in terms of labour wages and rates of return on capital.

This means business corporations are the first winners and high-income non-agricultural households are the second winners in the race for tourism benefits.
So, what is in it for the poor? The last finishers? What, then, should the government and policymakers do?

The government should tax, not subsidise, tourism industries, the biggest beneficiaries from tourism expansion; indirect tax forms such as excise, sales and import tax may be imposed on tourism-related goods and services.

The tax revenue could then be used to fund pro-poor and pro-agricultural projects.
Furthermore, more benefits of tourism expansion can be distributed to low-income and agricultural households if the government increases their involvement with tourism.

For instance, tourism industries may consider proper and fair payments to farmers for the provision of agricultural landscape services and the preservation of the agricultural countryside, payments to local people for the conservation of indigenous culture and tradition.
In the end, such policy efforts could contribute to the financial strength of the society and the sustainable preservation of national assets.

AVIATION - Jumbo delay sends SIA to Boeing

Bangkokpost.com, 3-10-2006

Singapore (dpa) - Singapore Airlines (SIA) expressed disappointment on Wednesday over the third delay in receiving its Airbus A380 and said new capacity will be injected by aircraft from the European planemaker's US rival, Boeing.

"Compensation will be provided," SIA said, referring to its agreement with Airbus. No specific amounts were disclosed, but Airbus was reported to have paid millions of dollars for the previous delays.

With the first double-decker, 555-passenger jets now scheduled for delivery in the fourth quarter of 2007, SIA affirmed it will remain the "first to fly" the world's largest passenger plane with deliveries of subsequent aircraft in 2008 and beyond.

"As was the case under the former delivery schedule," SIA said in a statement, the carrier "will receive the first four aircraft."

The European Aeronautic Defence & Space Co (EADS), the parent company, announced on Tuesday it has pushed back its A380 for another year with deliveries now running two years late.

SIA, which had been expecting to be the A380 launch carrier in December, will have to wait until October 2007.

The new capacity will be injected with the first of 19 Boeing 777-300ER aircraft being delivered in November, SIA said.

"Six of these aircraft will be delivered before the end of 2006, and ten will be in service by mid-2007," said SIA, one of the world's wealthiest airlines.

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