INDONESIA - A Critical Over-Supply of Hotel Rooms in Bali

Balidiscovery.com, (1/27/2007)

Tempo Interaktif reports that Bali currently has a severe over-supply of hotel rooms contributing to increasingly unhealthy competition among the Island's hotels.

The Chairman of the Bali Tourism Board (BTB), Bagus Sudibya, told Tempo that average occupancies stand at only 30%, covering an estimated 52,000 hotel rooms used by the 3,000-4,000 tourist who arrive from overseas every day and stay for only 4-5 days.

>>Full article

BALI - The Battle for Europe

Balidiscovery.com, (1/26/2007)

In balidiscovery.com's continuing look at foreign tourist arrivals for 2006, this installment of Bali by the Numbers examines European arrivals to the Island over a 6 year period 2001-2006.The Six-Year Perspective: A Very Different EuropeJust how dramatically the European arrival numbers of changed over the past 6 years is underlined in the chart shown on balidiscovery.com

Overall European arrivals in 2006 to Bali have declined -18.14% from what they were in 2001.
Although still the top producing country in Europe, the U.K. totals have declined -46.04% since the 2001 – a situation that reflects Garuda Indonesia's cessation of London flights.

>>Full article

SINGAPORE - Hotel Investment Market Sets New Record in 2006

ASIATravelTips.com, 26 January 2007

The Singapore hotel investment market set a new record in 2006 with seven hotel-related transactions in excess of Sin$1.5 billion. In addition, five sites, including the commercial/hotel Collyer Quay site, were sold for more than Sin$470 million under the Government Land Sales Program last year.
Mr. Scott Hetherington, Jones Lang LaSalle Hotels’ Managing Director in Asia, commented, “Singapore is undoubtedly one of the ‘hottest’ hotel investment markets in Asia Pacific last year. The upturn in hotel trading performance has simultaneously attracted intense interest in Singapore hotel assets and enticed some hotel owners to capitalise on the aggressive investor market. 2006 has been an exceptional year for Singapore’s hotel investmen market.”

>>Full article

UAE - 136bn in Abu Dhabi projects may overtake Dubai, Doha

AME Info, 25-1-2007

By the end of this decade Abu Dhabi is likely to overtake its neighbors Dubai and Doha as the biggest construction market in the Gulf. Between this year and the end of the decade the UAE capital will invest $22 billion in oil and gas projects designed to keep the emirate among the leading global energy producers.United Arab Emirates: Wednesday, January 24 - 2007 at 14:39 Abu Dhabi's Tourism Development & Investment Company is overseeing the development of Saadiyat Island. According to new figures from the Abu Dhabi Chamber of Commerce and Industry GDP for the emirate will reach $159 billion by 2010 with the share of non-oil activities rising from $44 billion to $72 billion. Investment totals are huge with $136 billion targeted for construction and building, $55 billion for tourism, $9.5 billion for water and electricity and $33 billion for industry.

>>Full article

THAILAND - After reduction in tourism target, operators in Thailand reveal critical issues

eTN Asia, 25-1-2007

Travel operators want the Tourism Council of Thailand (TCT) to solve four major problems.
Even as the Tourism Authority of Thailand has reduced its 2008 tourist arrival target from 20 million to 16 million in order to tap “quality travelers” and to avoid the “cheap-destination trap”, travel operators want the Tourism Council of Thailand (TCT) to solve four major problems.The operators feel such issues are currently major issues that could hamper both international and domestic tourism.The operators are reportedly seeking action over entrance fees for national parks, promotion of the troubled deep South, negative publicity and domestic marketing. the problems had been brought to the attention of Pornsiri Manoharn, governor of the Tourism Authority of Thailand.

>>Full article

AVIATION - Asian Aviation Must Face Up To Low Cost Challenge

ASIATravelTips .com, 24 January 2007

Centre for Asia Pacific Aviation (CAPA) Executive Chairman, Peter Harbison, warned on Tuesday, that Asia’s major incumbent carriers risk becoming irrelevant, or even face extinction, if they fail to grasp the changes in the market occurring due to LCCs.
Opening the Low Cost Airline Congress in Singapore, Mr Harbison said, “The aviation world will never be the same. Any new entrant must be low cost and any existing airline not heeding this message will become an ex-airline. We haven’t yet seen a major international airline shut down in this region – although Ansett Australia’s collapse was contributed to by the entry of LCCs domestically – but it will happen.”

>>Full article

THAILAND - Tuk Tuk drivers protested about the one way traffic system in Patong

Thaisnews, January 2007

Tuk Tuk drivers on Sunday afternoon staged a rally against the new one way system, demanding that the authority revoke the system. They cited reasons that the new system caused more traffic congestion, instead of solving it, was more dangerous for pedestrians and that it consumed more fuel for them to go around the one way system. The rally followed the authority’s attempt to resolve traffic in the area which began on January 15th. In the evening more than 300 of them drove out along the beach road and caused traffic congestion. Yesterday morning the Phuket Vice Governor Tri Akkaradecha held a meeting with all parties concerned and reached a conclusion. They included a public hearing session which opens for all stakeholders to participate.

>>Full article + video

THAILAND - Tourism in Krabi especially Phi Phi Islands

Thaisnews, january 2007

The overall occupancy rate in the Andaman coastal province of Krabi for this high season stands at approximately 80%, according to Napasorn Kakhai, chief of the Tourism Authority of Thailand’s Krabi office. With its airport recently upgraded to international status, at least 7 airlines operate their scheduled services there, bringing in domestic and international travelers. They also include charter flights from Europe. The tourist province has a total of 12,000 rooms for accommodation with 2,000 located on the world renowned island of Phi Phi. Noppasorn points out that while the accomodation on the island is fully booked from the New Year period up until the Chinese New Year in February, other tourist locations like Ao Nang or Lanta Island still have accomodation available. Focusing on Phi Phi, Napasorn said the interesting new market is the Russian group of tourists who travel by charter flight from Phuket, stay for a couple of nights and then go on to Phi Phi.

>>Full article + video

THAILAND - Tourism and Property Investment Surge Drives Phuket's Economy to New Highs

ASIATravelTips.com, 17 January 2007

Thailand’s tropical paradise island Phuket continues to out-perform its Asian rivals in the intense competition for tourists who demand luxury accommodation managed by some of the world’s most prominent hotel organisations.
This in turn, has spurred substantial levels of investor interest in the destination’s every-growing property market and higher than ever interest from international hotel management companies searching from new projects along the Andaman coastline.
Tourist arrivals in Phuket reached 4.7 million in 2006, which in turn produced tourism-related spending of US$1.7 billion, up 87% from 2005, according to research from the Kasikorn Bank’s Research Centre. This year Phuket is predicted to welcome 5.2 million tourists who will spend US$2 billion during their time on the island.

>>Full article

BALI - India to have new cultural center in Bali

ANTARA News, January 22, 2007

India will have a new cultural center on Bali Island as the Bali provincial administration has provided a 629-square-meter plot of land for the purpose.The Bali administration�s commitment to provide the land was stated in an agreement signed by Indian Ambassador to Indonesia Navrekha Sharma and Bali Governor Dewa Beratha here on Monday.The sound bilateral relations between Indonesia and India could be improved further in the future, the ambassador said in her remarks."The cooperation which could be further intensified includes tourism, culture and education," Ambassador Navrekha Sharma said after the signing of the agreement.The Indian cultural center in Bali will be the second in Indonesia, the first being located in Jakarta.

>>Full article

CHINA - CapitaLand aims to bring integrated resort concepts to mainland China

Channelnewsasia.com, 16 January 2007

Having lost out twice on building the integrated resorts in Singapore, property developer CapitaLand is setting its sights on bringing integrated resort concepts to mainland China. And it says it may use ideas from its Singapore concepts in its Chinese proposal, albeit without the casino element which is not allowed in China. Still, the proposals will need the green light from Chinese authorities. CapitaLand says it's keen to grow its integrated leisure, entertainment and conventions business. It's looking at large scale projects in Indochina, China and India, but will not restrict its investments to projects with a gaming or casino component.

>>Full article

DEVELOPMENTS - Move over MICE, here come the SMERFs!

Express travel world, january 2007

The dominant segment of Meetings Incentives Conferences and Exhibitions (MICE) in Asia and South East Asia is facing competition from another fast emerging segment of those travelling for social, military, education, religious and fraternity reasons. These travellers, billed as SMERFs, are a hardy and growing bunch offering vast untapped potential for this region's developing and recovering travel markets according to a recent study by Abacus International.
The SMERFs (no relation to their cuddly namesakes of television fame) are the resilient groups travelling to and around Asia in their millions for social, military, education or religious reasons, or as part of fraternity groups such as alumni, workplace re-unions or special interest groups. They don't mind even gathering in non-peak times if it will help keep the costs down.

>>Full article

THAILAND - Phuket a Haven for Investors

Phuket, Thailand (PRWEB) June 1, 2006

These days, visitors to Phuket cannot help but notice the number of premium property projects being marketed on the island. Developers on this tourist hotspot are going all out to woo buyers with projects running the gamut from luxury villas to upmarket Phuket resort condominiums with ultramodern facades and interior design.Post-tsunami, Phuket’s property market is enjoying a boom fuelled by rising demand from expatriates. Real estate consultants say foreign investors from Singapore, Hong Kong, Europe and the Mediterranean form the bulk of buyers who are snapping up properties across the island.Property on Phuket has always been sought after, owing to its status as a top resort destination in Southeast Asia. About the size of Singapore, the 570 sq km island attracts tourists and investors with its striking natural beauty, unique brand of Thai hospitality and cost of living that is lower than other markets in the region such as Hong Kong and Singapore.“[Phuket] distinguishes itself by its unique blend of safety, unrivalled hospitality, and the degree of sophistication of its economy and property market. It is a fully serviced island with first-class facilities, very accessible from anywhere in the region, thanks to its international airport, and benefits from a fantastic natural environment,” notes David Simister, chairman of CB Richard Ellis Thailand.It’s not just luxury villas that are being snapped op on Phuket. Consultants say the island is enjoying strong demand across the entire spectrum of properties available. Supply has also evolved to fit all budgets, from US$70,000 ($1 approx US$ 0.64) to above US$ 7 million.Where are these investors coming from? Analysts say demand has historically been from cosmopolitan Hong Kong and Singaporean residents, as well as western expatriates living in the region. That profile, however is changing. "We are now seeing an increasing number of high net worth individuals coming from areas such as China, and expect to see more and more buyers from Europe as Mediterranean resort prices continue to rise and people realise that Phuket can offer a very good value-for-money exotic lifestyle,” says Simister.Potential buyers on Phuket invariably look for ocean-view properties, which are highly sought-after because of limited supply. These fast-selling developments include Trisara, which consists of exclusive US$ 2.6 million to US$ 5.3 million ocean-view and ocean-front villas on 1,300 to 2,900 sq.m. land plots adjoining an eponymous six-star hotel. Another sought-after development is The Heights, with 200 to 415 sq.m. sea-view condominium units priced from US$ 400,000 to US$ 950,000. Both projects sold half the units released within months of launching.While buyers previously looked to projects on the traditionally popular west coast of the island. Phuket’s south and east coast are steadily gaining prominence as an alternative, as a result of the exhaustion of prime land in the west coast. A high-end project with prices lower than that on the west coast is Supalai on Ao Por, which offers three-and four-bedroom villas with sea views for less than 20 million baht. Just 20 minutes from Phuket International Airport, the area is less crowed and located near amenities such as golf courses and marinas. Such properties represent much better value for money, with higher capital-appreciation prospects as the area develops.While consultants say Phuket’s property rental market is still in its infancy and most investors buy for owner-occupation, properties can offer healthy yields depending on their type, location and furnishings. Simister of CB Richard Ellis estimates that yields for an actively managed property can range from 6% to 12% a year, based on 100 nights’ occupancy. He adds that rental returns usually reach their full potential once the property and development it is in are fully completed and have been in operation for high seasons.CB Richard Ellis is more bullish. Simister says, “Far from being a bubble, the high level of real estate activity seen on the island is only the beginning. Phuket is in the early stages of a long-term growth curve. The market has only one way to go, which is up, in terms of volume of sales, and range and sophistication of properties and facilities offered.”

>>Full article

THAILAND - Pattaya upbeat as arrivals surge

The Nation, 19 January 2007

Despite a turbulent 2006, with loud street protests, a military coup and New Year bombings in Bangkok, nothing has stopped the waves of tourists filling up Pattaya's rooms, say authorities in the travel and real-estate sectors.The numbers speak for themselves for this beach town, says Royal Cliff Resort general manager Alexander Haeusler."From January to September 2006, there were 2.8 million foreign tourists registered as visiting Pattaya, up from 2.4 million in the same period in 2005," he says, quoting a survey compiled recently by local hospitality sources.But while the future looks upbeat for the 1,120-room resort, considered the undisputed leader in luxury hotels for the Eastern Seaboard, Haeusler expects some short-term challenges that could prove volatile if hotel properties are not prepared."I was here during the 1997 financial crisis and saw it unfold before my eyes," says Hauesler, who was then resident manager of the Amari Airport Hotel."The current climate may turn out a bit turbulent also but, over the long term, it will be much better."On the global front, he warns, much is also changing in the landscape of the travel business.Pattaya's own numbers show sharp demographic changes. While 10 years ago, British and Western Europeans made up a major slice of the pie, Russian and East European visitors today form the bulk of arrivals.British arrivals have fallen 10.5 per cent, dropping to 204,000 visitors from 229,000 in 2005 during the nine-month period.Meanwhile, Russian figures were 292,000 during the same period, up 35 per cent from 215,000 the previous year.Haeusler, an Austrian with several years of experience in the Middle East and Asia, says it is vital to note the changes, for example the rise of other groups such as those from India.In the three quarters to September of last year, 162,000 visitors arrived from India, jumping 62 per cent from 108,000 in 2005."Many of our guests from India are prepared to pay higher room rates for superior rooms and services," he says. The Royal Cliff has recently opened an authentic Indian restaurant to cater for this rising tide of wealthy subcontinental visitors.Five years ago, there would probably be less pressure to adapt to the changing environment.Equally telling is the rising number of local visitors. Contrary to conventional beliefs that locals do not spend much, Pattaya tourism authorities say the average Thai spends about Bt2,200 per day, compared to foreigners who spend Bt2,900.CB Richard Ellis chairman David Simister says that regardless of the troubles and tribulations facing the Thai hospitality and real-estate sector, foreigners continue to flock to the Kingdom.While it is true they are staying a little shorter than usual - the average stay now being 2.9 days as opposed to 3.2 days the previous year, Pattaya is still doing much better than most of its rivals abroad.Simister says over the long run, visitors who take a strong liking to resort towns such as Pattaya, Phuket and Hua Hin are most likely to buy holiday homes. Despite the difficulties in buying procedures - and leasehold agreements are somewhat short when compared with elsewhere - foreigners are still keen to come here.The baffling situation has made Thailand the "envy of its neighbours", says Simister, who adds that countries like Singapore and Malaysia do offer more attractive packages. "But foreigners are just not as enthusiastic about them."For global investors such as Dubai-based Istithmar Hotels and Kuwait's IFA Hotels, that observation has convinced them to invest here.They each recently bought a 24-per-cent stake in Raimon Land, which plans to make one of its two tall towers in the Northpoint estate in North Pattaya a five-star hotel.It is unclear which of the two Gulf giants will run the hotel, says a Raimon Land executive, but the project now has the tacit backing of strong Gulf governments.There were 124,000 Middle Eastern visitors in the first three quarters of last year, up 81 per cent year on year from 68,000, says Haeusler.What such trends suggest is quite clear, he adds. Top hotels must take note of who is coming and going.The new groups - including China, with 330,000 visitors to Pattaya, up from 166,000 the previous year - will eventually shape the beach town's future development.

>>Full article

THAILAND - TAT firmly focused on quality tourism

The Nation, January 22, 2007

The Tourism Authori-ty of Thailand is slashing the 2008 tourist-arrival target from 20 million to 16 million as the country reverses its tactics. Mass markets will be avoided as the TAT pursues "quality travellers" to avoid the "cheap-destination trap".
TAT's newly appointed governor Pornsiri Manoharn said the original target was too high and did not match the goal of becoming a leading world destination in terms of quality tourism.
"We have seen clear signs that we can move up, reflected through hotel room rates which have increased despite unfavourable factors," she said in an exclusive interview four days after she was signed up as the new governor.

>>Full article

MALAYSIA - Banker gives Sabah top marks

Dailyexpressnews, 21 January, 2007

Tuaran: The AmBank Group is prepared to extend more facilities to cater to the anticipated big economic growth in Sabah with the catalyst being the tourism sector.
Its Chairman, Tan Sri Azman Hashim (pic), said Sabah's economic potential was big "especially with its huge natural resources". "I am personally impressed particularly with the tourism sector. You can see the hotels are fully occupied, so are the flights," he said after officiating at the AmBank Group Region 7 Family Day 2007 at Shangri-La's Rasa Ria Resort, here, Saturday.
Such development, he said, was favourable for the banking institution to offer more facilities and improve its services to be more efficient to its customers.
He had earlier stated that AmBank Group had completed several initiatives in Sabah including branch remodelling, strengthening and integrating backroom processes, restructuring of business units and an increase in customer service specialisation as well as cross selling activities.

>>Full article

MALAYSIA - CM wants full exploitation of Sarawaks' eco-tourism

Thestar.com.my, January 16, 2007

KUCHING: Chief Minister Tan Sri Abdul Taib Mahmud wants tourism players to help tap the full potential of Sarawak’s eco-tourism products.
He said these unique products, which made the Land of the Hornbills different from the peninsula, were mostly found in rural areas.
“It is in the rural areas where nature is at its best, where cultural practice is well-preserved and where there are a lots of animals and plants to show to tourists,” he added before presenting Sarawak Hornbill Tourism Appreciation Awards 2006 to the winners at Crowne Plaza Riverside Hotel here on Monday night.
Sarawak Tourism Federation, which hosts the annual event to give recognition to outstanding tourism players, received 368 entries - the highest so far.

>>Full article

MALAYSIA - Medical Tourism shows promising future

PressZoom, 23 january 2007

Signs of continuous growth are being shown by the Malaysian medical tourism industry for the last couple of years. And, this was apparent with a 10% growth in the number of foreigners seeking medical treatment in the country during 2004-2005. Teng Chang Yeow – Chairman of State Tourism Development & Environment Committee, made this information public. Although foreign patients have been flocking towards Malaysia since 1997, but official recording of the figures was started only two years ago. About 110,000 foreigners were reported to have been seeking treatment in the country during the year 2006 alone, whereas the number was 100,000 in previous year ( 2005 ). This puts Malaysia ahead of Kota Kinabalu and Kuala Lumpur as most preferred destinations for medical tourism across the globe, added Yeow.

>>Full article

DEVELOPMENTS - New bridge brings swell of Thai tourists

VietNamNet Bridge, 19/01/2007

The new Second Friendship, Bridge linking Thailand and Laos has provided for a swell of tourists entering Vietnam on the Trans-Asia Highway.
The new bridge across the Mekong River has connected the central coast of Vietnam with Thailand via the Trans-Asia Highway, which runs from central Vietnam through Laos and Thailand to Myanmar.

Between 1999-2003, only 1,300 Thai visitors crossed into Vietnam at the highway's Lao Bao border gate in the central province of Quang Tri.
But thanks to the bridge's opening on December 20, more than 1,500 Thai tourists entered Vietnam via Lao Bao on the first day of the new year (January 1, 2007), according to the provincial tourism authority.
Recent policies to waive visas between Thailand, Laos and Vietnam have also supported the boom.

The bridge is part of the Trans-Asia highway or the East-West Economic Corridor (EWEC) initiative which aims to boost trade, tourism and transportation along the highway.

>>Full article

DEVELOPMENTS - On the road to increasing China-India tourism

China Daily, 2007-01-18

Having successfully launched several new initiatives and achieved many more milestones, including a visit to India by President Hu Jintao in 2006 (designated the Year of China-India Friendship), the two sides have designated 2007 as the Year of China-India Friendship through Tourism.

As is well-known worldwide, the boom in the tourism industry (including all the inflow and outflow of travelers and their spending power) remains a major driver and one of the most dependable indicators of high-level social development.
A tourism boom comes only with sustained economic growth accompanied by infrastructure development and the creation of jobs in new sectors and regions.

Especially in the case of China and India, the tourism boom is expected to facilitate peace and friendship by raising mutual awareness and enhancing mutual stakes. This also contributes to sustaining both countries' internal stability and long-run development.

>>Full article