A chance for change - Bad Request
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PPS 1885/02/2017(025627) A chance No. 1749/August 2017 for change In a morphing travel landscape, Singapore travel agencies say they need guidance and unity. Alas, strong leadership eludes them for now. But there’s a chance for change, reports Pamela Chow View from the top Expectations are high for Myanmar’s minister of hotels and tourism Ohn Maung, an old hand in the tourism sector. He tells Xinyi Liang-Pholsena how he intends to steer Myanmar’s fast-expanding tourism sector + Nepal clutches at straws of recovery ASEAN airports plan for growth Vietnam’s fertile grounds for ecotourism
August 2017 TTG Asia 2 Contents & editorial Want to read us on the go? Analysis 03 View from the top 05 Connect 14 06 Report: 08Report: Destination: 10 12 Destination: Theme parks Airports Malaysia Vietnam Why S’pore agents must unite I f a travel agent could not run his own business suc- cessfully, how could he lead the industry? That must have occurred to a lot of members of the NATAS. This has to be resolved. It’s a pity a proposal to hold a joint fair as we reported in January (http://bit. ly/2vxRQmC) came to naught. National Association of Travel Agents Singapore (NA- The bigger interest must prevail and that is to ensure TAS) when they received the shocker that GC Nanda & that travel agents can thrive in a continuously changing Sons was exiting the trade. It had seen 40 years of opera- landscape. The travel agent sector in Singapore is actu- tion, many of those years led by the soft-spoken, kindly ally far from dying. A figure of 104 closures in the first Prem Paul Ohri, then by his son, Devinder Ohri, who was six months looks scary, but it’s nothing unusual from fig- NATAS president from May 2016 until the agency’s re- ures in the same period the past four years. The Singapore cent demise (see Analysis page 4). Tourism Board (STB), which regulates the sector, expects To be fair, has it occurred to agents that a reason why the number of agencies to remain constant at around GC Nanda closed could be that Ohri junior had spent a 1,200 this year, as it has been for the past four years. lot of time on NATAS volunteer work? Another reason That means new agencies are always opening to re- of course was the changing industry. A source close to place closed ones. In two words, new competition, which the agency said he was an administrator, whereas what’s will only increase if proposals for tiered licensing are ap- needed as the industry changes fast and furious are rain- proved. STB, keen to grow tourism, naturally wants to makers. nurture innovative players with grants such as Experience The travel Whatever the reason, I can’t help feeling some revul- Step-Up Fund and Business Improvement Fund while agent sector sion at the criticisms hurled at NATAS in re-appointing helping the sector transform itself through a Travel Agent office bearers who had left to lead the association until the Roadmap. It’s not easy though. Look at MISA Travel, in Singapore next AGM, and for its current state of instability. It’s like once held as a role model for its online push but couldn’t is actually far shooting a lame dog. sustain drive and is now gone after 23 years in operation. from dying. There are two realities that Singapore agents should mull. The first is, few CEOs actually want to devote time Fact is, it can happen to you. That’s why the need for unity, stability and the spirit of cooperation and collabo- and effort on volunteer work, especially when business is ration among Singapore agents has never been greater. so demanding. Anyone who comes forward, provided he or she is not self-serving, therefore deserves all the sup- Raini Hamdi port and compassion. Senior Editor The second reality is agents are divided because of raini.hamdi@ttgasia.com the two travel fairs, a major income earner for them and twitter.com/rainihamdi COMING UP PHILIPPINES No stranger to controversy LONGHAUL TRAVEL Germany, Canada Zhukova Valentyna/shutterstock or travel advisories in the past year, how is (right) and South Africa – what do these the country’s tourism coping with the negative destinations have in common? A thirst for Asian NEXT ISSUE: reports and perception in international media? tourists, backed with strategic plans to show SEPTEMBER HONG KONG In a city with no shortage of MACAU Its strong Macanese and Portuguese 2017 five-star hotels, a new breed of luxury offerings culinary traditions, as well as new fusion offer- continues to add glamour to the destination ings, are a draw for foreign visitors Banff National Park, part of the Canadian Rockies
August 2017 TTG Asia 3 Analysis Clutching at straws of recovery Nepal tries to solidify added: “Pollution is also a big factor that needs to be addressed.” signs of recovery by Political stability is necessary if invest- diversifying into eco- and ment is to be put into overhauling infra- structure and upgrading roads. Nepal’s spiritual tourism, but still first democratic elections in 20 years is taking place this year, with the third and faces infrastructaure and final stage in September. pollution issues, Marissa Pushka KC, Peak’s sales manager, said: “We are happy for these elections because Carruthers reports we need (Nepal) to be politically stable. We can promote Nepal as a leisure or spir- itual destination or whatever, but if we W hile 2016 arrivals were still don’t have the infrastructure to get people down by 4.7 per cent com- around, it is no good.” pared with 2014 figures, To cater to the predicted increase in Nepal industry members visitors, construction of a new US$216 said 2017 is looking bright, with one mil- million international airport in Pokhara lion international arrivals anticipated. started in June. Three kilometres east of Last year, the market showed signs of the current domestic airport, it is slated recovery, with a 39.7 per cent increase to for completion by July 2020. 753,002 visiting foreigners. India was the In addition, Gautam Buddha Airport top source market, followed by China, the in Bhairahawa, gateway to Lumbini, is set US, Sri Lanka and the UK. to open in 2019. It is also hoped that the The devastation caused by the 7.8-mag- stalled US$92 million improvement of nitude earthquake that hit Nepal on April Tribhuvan International Airport in Kath- 25, 2015, saw international visitors slump mandu will be unveiled the same year. Nitipol Temprim/shutterstock from 790,118 in 2014 to 554,747 in 2015, While hurdles remain, the industry re- according to figures from the Ministry of mains confident of the country’s poten- Immigration. Kathmandu’s Boudhanath Stupa at sunrise tial to achieve two million foreign visitors Despite the earthquake being restrict- by 2020. ed to 10 of the country’s 75 districts, the damage was felt nationwide. An unofficial to the world that Kathmandu and many blockade along Indian border points cou- other places survived. People need to learn pled with a fuel crisis and trade embargo more about Nepal.” hit Nepal. Overnight, the country’s tour- Stepping up its game, the country ism trade crashed. hosted its first annual Himalayan Travel But as the market shows signs of turn- Mart in June, attracting 74 buyers from 36 ing around, high hopes have been pinned countries and more than 50 sellers. And on the tourism sector. the industry has started to actively sell the Suman Pandey, president of PATA Ne- country’s other attractions, away from the pal, said: “Things are slowly starting to Himalayas and trekking. Huge efforts are pick back up. Last year, we were nearly being pumped into developing ecotour- back to the figures before the earthquake ism, which is seen by many as a way to and this year looks to be even better, so elevate the industry. this is encouraging.” Shital Chandra Dharel of Himalaya The country’s recovery was severely Heart Treks and Expeditions said: “We hindered by a blanket travel warning on have much more than the mountains. visiting Nepal despite many popular tour- We have national parks, safaris, wildlife ist destinations remaining untouched. with black rhinos and tigers, more than Nepal Tourism Board (NTB) CEO, 60 different ethnic groups, culture and a Deepak Raj Joshi, said: “After the earth- lot of adventure activities. More is beingC quake, people assumed it was the whole done now to promote these activities and M country. This was very damaging and we show that Nepal really is a diverse destina- directly saw the impact it had on travel.” tion.” Y Despite suffering no earthquake dam- Spiritual tourism is another area that is CM age, businesses in popular Pokhara – being actively promoted. Nepal is home gateway to the Himalayas – saw tourism to Lumbini, the birthplace of Buddha, MY tumble. Tejina Malla, assistant sales man- and other religious sites, and tour opera-CY ager at Shangri-La Village Resort Pokhara, tors are starting to target South-east Asian CMY said: “We were not hit physically by the markets such as Cambodia and Vietnam earthquake but we were hit very badly fi- which have strong Buddhist populations K nancially, and it’s only now starting to pick and growing economies. back up.” In June, the Bangkok-based Nepali em- bassy to Cambodia organised an event in Initiatives Phnom Penh to promote Buddhist tour- Hard-hitting marketing campaigns done ist sites and activities in Nepal. And talks in major source markets in the aftermath about starting direct flights between the of the disaster, to spread the word that Ne- two countries began. pal is safe and open for business, are finally paying off. Intrepid Travel said bookings Not enough have jumped 70 per cent this year from But concerns have been raised that this 2016, while G Adventures, which offers alone won’t be enough for Nepal to reach ecotourism trips, reported a 62 per cent its tourism potential. Infrastructure re- rise – surpassing its 2014 figures. mains weak, airports are in desperate need However, the industry said post-earth- of upgrading, more flight paths are essen- quake fears remain a major hurdle. Bharat tial, as is increased investment in human Kumar Basnet, managing director of Ex- resources. plore Nepal, said: “People across the world Saurav Rajkarnikar, executive director thought Nepal is not a safe place to visit of KGH Hotels, which operates a string and we weren’t able to pass the message of properties in Kathmandu and Pokhara,
August 2017 TTG Asia 4 Analysis A chance for change In a morphing travel landscape, Singapore travel Timeline agencies say they need guidance and unity. Alas, strong leadership eludes them for now. But there’s a May 2016 Elections held at NATAS chance for change, reports Pamela Chow Annual General Meeting (AGM); Devinder Ohri appointed president. Position of secretary-general vacated shortly after March 2017 Ram Samtani ap- pointed as secretary-general March-May, date unknown Deputy-president Steven Ler and honorary treasurer Simon Er resigned before AGM May 30 GC Nanda & Sons voluntarily ceased its Travel Agent License under Singapore Tourism Board June 19 Ohri announced GC Nanda & Sons’ voluntary cessation in NATAS circular June 22 Official NATAS release an- nounced Ohri is no longer president; Steven Ler became acting president May 2018 Elections for new execu- tive committee and new president to be held at NATAS AGM T he closure of GC Nanda & Sons for May 2018. bicycle tours, would be exempted from a main source of income for NATAS.” shocked agents not only because In response to queries from TTG Asia, travel agent licence. As well, entities selling Yet, the role NATAS plays cannot be it was a prominent agency that Ismail Hussain, NATAS’ general manager, or arranging tours without accommoda- underestimated. For example, Singapore had operated for four decades surface transport & inbound tours said tion can apply for a restricted licence with Tourism Board (STB) collaborates with but also because its managing director, NATAS executive committee (exco) decid- a lower paid-up capital and net worth re- NATAS to “formulate a Travel Agent Devinder Ohri, was leading the sector as ed to invite and reappoint both Ler and Er quirement. Roadmap that seeks to build capabili- president of the National Association of at an emergency meeting on June 19. “I actually think that there will be more ties and enhance business sustainability Travel Agents Singapore (NATAS). “Given the trust and confidence from travel companies opening than closing through business transformation, tech- That agents learnt of GC Nanda’s clo- their colleagues in the exco, both were en- given the changes in licensing being dis- nology and manpower”, said Ong Ling sure on May 30 only through the media, couraged and committed to take on their cussed,” said Robin Yap, president, Travel Lee, STB’s director, travel agents and tour- then officially in a NATAS circular on June roles and lead the association. We welcome Corporation Asia. ist guides. 19 signed by Ohri as president, incensed them back and look forward to working Another worry is the lack of talent and Chan Brothers’ Koh said: “It’s not rock- some. A NATAS release three days later them,” he said. the need for the industry to get younger et science but we’d like to see them (NA- announcing Ohri was no longer president He added: “The next AGM will also be people to work in the trade, said Seah. TAS) go back to the basics of being a good while Steven Ler had been appointed act- an election year. Members will be invited leader. Qualities include listening with an ing president and Simon Er as honorary to nominate or be nominated for election Strong NATAS needed open mind, gathering feedback and seek- treasurer only brought more questions, into the exco for the next term of office Having guidance from NATAS is crucial in ing advice on future decisions affecting with Kay Swee Pin, president of the Sin- 2018-2020. All positions in the exco will be these critical times, Seah added. members at large instead of upholding the gapore Outbound Travel Agents Asso- opened for nominations.” “We hope that the association can help image as the leader at all costs.” ciation, a rival group, even calling it “de- As NATAS undergoes a leadership travel agents stay ahead of competition Holiday Tours’ head of MICE and lei- ceitful”. Both Ler and Er had resigned as overhaul, its members are left with hands from the ever-growing online travel sites, sure, Cindy Loo, said that it is important NATAS deputy president and honorary wringing over challenges looming on the by continuing to build trust in people that for the association to “work closely with treasurer respectively between March and horizon. Agencies that TTG Asia spoke to travel agents can help better than a com- IATA, STB and other government bodies May. expressed a need for guidance amid chang- puter can,” she said. to help the travel trade ride through the “The president must be elected by ing consumer behaviours that may leave To members outside NATAS exco, the changing environment, and in the course shareholders… and if Steven Ler wants traditional tour operators high and dry. current state of the association is worry- of doing so, make the industry more resil- to assume the position, he must fight for These changes are stimulated by the ing. ient to future challenges”. it and not (have it) handed to him when “emergence of more online direct sales Said Koh: “High turnover or frequent Adding to the list, Seah urged that ideal he had already left the NATAS (executive (and) online travel companies with cut- changes at the top may be a sign of larger leaders “must have a clear and unwavering committee),” Kay told TTG Asia. ting-edge technology”, lamented Dynasty organisational issues. We are concerned focus on the association’s vision” and “be In short, it was a circus. And even be- Travel’s spokesperson Alicia Seah. about whether there is commitment and able to make difficult decisions in a timely fore news of Ohri’s departure had sur- Exacerbating the climate of uncertainty conviction to turn around NATAS’ finan- manner”. faced, “NATAS seemed to be plagued with is the spectre of even more competition cial position of severe loss for the past two Meanwhile, she said the recent episode leadership problems”, said Justine Koh, from new players. Many agents expect years, and at the same time, look after the has had “no impact at all” on Dynasty spokesperson for Chan Brothers Travel. proposed changes to the Travel Agents Act interests of all NATAS members.” Travel, and NATAS events are running “as and Regulation being tabled will actually When asked why NATAS is having a usual”. The biannual NATAS Travel Fair Stopgap make it easier for new entrants to come hard time, Robert Khoo, its former CEO will next be held on August 11-13. Ler’s appointment as acting president is a in. Examples: As part of a tiered licens- who led NATAS from 2000-2013, said: “The industry needs to stay reconciled stopgap, to fulfil all the duties of the presi- ing regime, entities that sell or arrange “A few difficult and unreasonable mem- and united to brace the challenges ahead,” dent until one is elected at NATAS’ next tours within Singapore without passenger- bers with selfish intentions tried to bring she urged. – Additional reporting by Raini annual general meeting (AGM) scheduled carrying conveyance, such as walking or the travel fairs down. The travel fair is the Hamdi and Karen Yue
August 2017 TTG Asia 5 View from the top Support from 10 NEED TO KNOW’S ABOUT OHN MAUNG an old hand ■ Who’s in your family? A lovely wife, one talented daughter, one smart son, one sweet granddaughter and two mighty grandsons ■ What do you do for fun? Enjoying music and meeting friends ■ Your ideal vacation? A visit to Expectations are high for Myanmar’s minister of hotels and tourism Ohn Maung, Ngapali Beach with my family whose decades of practical experience as a hotelier and tour operator dates back ■ How do you book your own leisure trips? Internet for the sake of to 1972 in his native Shan State. Xinyi Liang-Pholsena speaks to the veteran on convenience how he intends to steer the fast-expanding tourism sector in the right direction ■ What are you reading right now? Rama IX: The life and legacy of King Bhumibol Adulyadej How did you get started in the tourism decided to build an upmarket hotel, Inle For all these destinations, we need to ■ How do you stay healthy? sector? Princess Resort, which opened in 1998, to improve infrastructure development such Exercising every morning and eating Tourists started visiting the Inle Lake receive their clients visiting Inle Lake. as new hotels, road access, extension of healthy food area from 1972. As I grew up in mission- runways of the existing airports, etc. ary schools in Myanmar, I am quite flu- Since taking on this minister role, what What is most important is to improve ■ Favorite food? Shan food, of ent in speaking English so I became the initiatives have you spearheaded? tourism services through capacity build- course! local translator for the tourists. At that I’m currently developing more destina- ing such as hospitality management, and ■ A bad habit you cannot kick? time, guests often overstayed on the lake tions, people-to-people contacts by estab- tour guide and travel agent training ac- Watching football matches late at night and returned late for their transfers back lishing community-based tourism (CBT) cording to the ASEAN standards. In these to Taunggyi – the only place where tour- with the help of NGOs and INGOs, as well destinations, there are already 20 informa- ■ Your pet peeve, something ists were supposed to spend the night – so as DMCs, who have been my friends since tion counters set up and six new counters that never fails to annoy you? Big they would ask me for a night’s stay. This I started my career as a hotelier to promote will be added this year. mouths with loud voices! led me to decide to open a small lodge the tourism industry by creating CBT vil- for tourists who came back late lages as new destinations. So far, Are you happy with the progress so far? ■ Most people don’t know that from sightseeing. we have launched nine CBT Yes, I am very happy with the progress so you… Iove kids and want them to On April 1, 1976, I projects and another five are far as my team from the Ministry of Ho- start their life from proper nursery opened Inle Inn in on the way. A newly opened tels and Tourism, and the private sector schools Nyaung Shwe, a small CBT project is Sor Lor Vil- have worked hand in hand to promote lodge with 14 rooms. lage in Chin State. our country. An example is our coopera- In 1995, I helped the Pa For ecotourism, Chin tion with the private sector for ITB Berlin O people build a hotel State is a more promising and other international trade shows. called Golden Island destination because of its Tourism development is one of the while sharing our rich culture diversity. Cottages on the lake as pristine nature and rich priorities of our NLD (National League We have developed codes of conduct for tourism grew. Then, in indigenous culture. The is- for Democracy) government, which has tourists, travel agents and locals with “do’s 1996, Road to Mandalay lands of Mergui Archipelago continuously supported the tourism sec- and don’t’s” booklets. started cruise operations on will be developed as new desti- tor and even formed the National Tour- the Irrawaddy River between nations to attract investment for ism Development Committee, chaired by What other challenges are there for Bagan and Mandalay. I eco and marine tourism. the vice president and comprising union Myanmar tourism right now, and what ministers from related ministries. needs to be done? Myanmar tourism is on the right track. Do you think Myanmar has been too Challenges for Myanmar tourism right liberal with hotel construction as there now are to build more infrastructure such are signs of a room oversupply? as hotels, roads, etc, as I have mentioned. Tourism arrivals have increased from 1.6 Most importantly, (we need) to train million in 2012 to 2.9 million in 2016. Of more tourism professionals and hotel course hotels are mushrooming across the management, and help the private sector country as tourism is increasing every year expand their businesses efficiently by as- in tandem with the focus of the Myanmar sisting them at travel shows with tourism Tourism Master Plan (2013-2020). promotion. At present, we don’t have enough ac- commodation for incoming tourists dur- Do you think the recent negative cov- ing the peak season, so we need to build erage of Myanmar’s Rohingya crisis is more hotels and prepare for the future affecting the country’s image on the increment of tourists. I don’t think Myan- global stage? Is an international desti- mar has been too liberal with hotel con- nation campaign needed? struction at the moment. For example, 12 From the tourism development perspec- new hotels will be built in Chin State in tive, this issue does not significantly in- order to fulfil the accommodation needs terfere with tourism development at local of tourists visiting the destination. levels in Myanmar. We are doing interna- tional destination promotion now by par- You are a strong advocate for CBT. How ticipating in ITB Berlin*. We have more do you balance growth with preserva- than 60 participants here at ITB Berlin as tion of culture and the environment? proof that Myanmar tourism is booming. I believe that by developing CBT, I can increase the number of new destinations What do you hope to achieve by the and let tourists have a chance to get in end of your term? touch with the local people to share in I would like to see the tourism industry in their knowledge, understand their culture Myanmar successfully achieve a new level and improve the socio-economic well- of development with positive impacts and being of the local communities. good results for the country and the peo- I would like to bring development while ple. preserving our culture, traditions and the environment to provide greater employ- * Editor’s note: This interview was con- ment opportunities for all our people ducted in March during ITB Berlin
Report Theme parks Competing for fun In Asia, the business of 5.4 per cent from 19.5 million to 20.9 mil- lion, reported the Themed Entertainment lion, according to the 2016 TEA/AECOM Theme Index and Museum Index. fun is a serious industry Association (TEA) and AECOM. To quench the region’s thirst for watery The decrease, as outlined in the report, is in part due to more parks opening in as attractions keep up the fun, new operators are thronging the mar- China, drawing droves of Chinese visitors amusement war through ket – at least 15 water parks have opened to domestic attractions and away from Vietnam has huge in the last three years in Thailand alone, those in neighbouring countries. constant reinvention. said Wuthichai Luangamornlert, man- Confronted with sliding popularity and growth potential right aging director of Siam Park City, at the a tightening market share, incumbents By Pamela Chow Asian Attractions Expo 2017 in Singapore around Asia are facing a mounting pres- now (in theme park in June. sure to reinvent. development), and we A sia has been the hotbed of a “We’re seeing a growth in private in- theme park rush, with intellec- vestment in this new emerging market as Fun for the whole family also are seeing growth tual-property (IP) partnerships tourism spreads from Pattaya, Bangkok The key, industry players believe, lies in on the uptick as destinations and Chiang Mai to the second-tier cities,” multigenerational experiences. President in Malaysia, South the likes of Shanghai Disneyland, Lego- observed Wuthichai. and CEO of the International Associa- land Japan and Malaysia’s Movie Anima- Meanwhile, service supplier WhiteWa- tion of Amusement Parks and Attractions Korea and India. tion Park Studios seek out movie and car- ter Southeast Asia has signed to develop (IAAPA), Paul Noland, observed: “We are Paul Noland toon producers to create new universes of “world-class water parks” in Thailand, seeing parks capitalise on the nostalgia President and CEO, amusement. Vietnam, Cambodia, Malaysia, the Philip- factor. Successive generations like to share International Association of Amusement With fun being a serious business in pines and Bahrain, said CEO Chris Perry. experiences that they enjoyed growing up, Parks and Attractions Asia, water playgrounds Yet, as the competition heats up, the so the trend is to create high-quality rides have also been making a market size is shrinking. In 2015-2016, that all members of the family can enjoy.” splash. From 2015-2016, overall visitor numbers in Asia-Pacific’s Wuthichai agreed, adding that fam- resort in the Entertainment City gaming visitor volume to water top 20 amusement parks dipped 2.8 per ily rides generate the most visibility and strip. The US$2.4 billion project boasts a parks in the region climbed cent from 130.9 million to 127.3 mil- discussion on social media for Siam Park casino, hotel, dining and shopping out- City, Thailand’s oldest water park. lets, and conference spaces, in addition to “The trend is to become more family- a 1.2km-long multimedia show compris- oriented, so we’ve invested in rides that ing choreographed water, light and music the whole family can go on,” said Wuthi- performances. chai. “We’ve had customers who haven’t Such multimedia shows are also gain- visited our park in five years come ing traction with operators across Asia, back.” checking off boxes as a multigenerational, Operators also reported sustainable and cost-effective revenue that more developers are driver, with Marina Bay Sands’ Spectra capitalising on this trend by light-and-water extravaganza by its prom- transforming casino com- enade as a recent example. plexes into mixed-use, fam- “Multimedia presentations help us ily-friendly destinations. keep (attractions) current and relevant for According to Ken the next generation, who come back to ex- Wheatley, director of enter- perience something old that’s new again,” tainment technology sup- said Paul Rivet, director of entertainment plier Christie, Macau led at Walt Disney Attractions Japan. the pack in the development Often conducted in the evening, mul- of mixed-use integrated re- timedia shows motivate visitors to stay sorts, which was soon repli- longer at resorts or even overnight, and cated in the Philippines, South can drive on-site F&B spending to 15 per Korea and Singapore. cent more, said Jean-Christophe Caniza- The latest talk of the town is res, chairman and CEO of French multi- Okada Manila, a 44ha integrated media provider ECA2, which developed the Wings of Time show in Sentosa. Siam Park City, Bangkok They can also be “refreshed easily and Upcoming attractions in Asia Jeju Shinhwa World, South Korea Jeju’s largest retail and F&B complex, a YG development and will operate the park follow- 20th Century Fox World. The 10ha park will Opening in phases this year, the 250ha Jeju entertainment centre, MICE facilities and ca- ing its opening, slated for later this year. feature six themed zones such as Alien vs Shinhwa World will be Jeju’s first integrated sinos. The 344-room Somerset Jeju Shinhwa Predator, Ice Age and Planet of the Apes. It is resort. It will encompass premium accom- World opened on April 25, while the 630- Lionsgate Entertainment World, China slated to open later this year. modation, a family theme park, water park, room Jeju Shinhwa World Marriott Resort & Scheduled to open by the end of 2018 in Spa will launch in two phases, starting with Novotown on Hengqin Island in Zhuhai, the Universal Studios Beijing, China 486 rooms in late-2017. 2.2ha indoor park will be themed around Universal Studios’ latest foray is a 405ha Lionsgate’s key franchises, including The destination resort in Tongzhou, Beijing, with a Wet’n’Wild Haikou, China Hunger Games, The Twilight Saga, The reported US$3.3 billion initial capital invest- Built on the Mission Hills Golf Resort Haikou Divergent Series and Now You See Me. It is ment. on Hainan Island, Wet’n’Wild Haikou is one developed by Thinkwell Group with consulta- A joint venture between Beijing Shouhuan of Village Roadshow Theme Parks’ (VRTP) tion by VRTP, which will manage its opera- Cultural Tourism Investment and Universal first debuts in Asia, bringing China its first tions after the opening. Parks & Resorts, the theme park will feature Wet’n’Wild-branded theme park. existing Universal Studio attractions as well The site is a cluster of hotels – includ- 20th Century Fox World, Malaysia as new attractions reflecting China’s cultural ing the recently opened Ritz-Carlton – and Under the 10-year Genting Integrated Tour- heritage, alongside a retail, dining and en- a retail, dining and entertainment precinct. ism Plan, Genting Group is developing its tertainment district and themed hotels. It is Lionsgate Entertainment World VRTP is currently providing consultation for Outdoor Theme Park into the US$300 million scheduled to open in 2020 or later.
August 2017 TTG Asia 7 changed seasonally”, said Michael Reid, quick to hop on this trend, with the Gent- founder of IconPath Curated Experiences. ing Group’s 20th Century Fox World open- This is a big selling point – especially ing this year-end, and the launch of the for regional parks with smaller budgets DreamWorks-branded DreamPlay attrac- – as operators prioritise the “sustained re- tion in City of Dreams Manila. peatable value” of an attraction, explained Entertainment + Culture Advisors re- Ron Merriman, managing director of MR ported that other Asian markets, includ- ProFun China, the company that helmed ing Vietnam and South Korea, are in talks Ferrari World Abu Dhabi. to develop integrated resorts with interna- While parkgoers may be eager to em- tional IP. brace multimedia extravaganzas, industry Still, Indonesia currently lacks IP at- experts caution operators against leaning tractions, noted David Sutiono, director on trending technology as the focal point of Funworld Prima. He added that in or- of the attraction. der to boost international visitor volume, “We have to recognise it’s the story and the country should promote its culture experience that is important. The tech- and islands, as it has potential for huge nology delivers it,” said Darrell Metzger, market growth in 10 years or more. former CEO of Ocean Park. “We have to Wuthichai commented: “It can be dif- be willing to abandon the technology and ficult for major companies to come in Clockwise from left: Redhorse replace it with whatever it is that can tell because there is no major land mass like Osaka Wheel in Expocity and Lego- your story.” the US or China. In my opinion, smaller land Discovery Center in Osaka; r.nagy/shutterstock integrated resorts are the solution.” Shanghai Disneyland; Spectra The park battle wages on On the other hand, Wuthichai is opti- Light and Water Show at Marina Bay Sands, Singapore As Asia continues to receive new openings mistic of Thailand’s theme park potential, and expansions, China is seeing multiple as the country received 32.5 million visi- IP projects – including Zhuhai’s Lionsgate tors in 2016 and expects an upwards of 34 Entertainment World and Universal Stu- million this year. The country’s main con- dios Beijing – in the development pipe- cern lies in increasing repeat visitations, line. TEA projects that by 2020, attend- which will be tackled with continued gov- ance at theme parks in China will surpass ernment investment in man-made attrac- those in the US. tions over the next five years, he shared. While numerous IP-driven develop- Elsewhere in Asia, previously untapped ments are in the pipeline across Asia, markets are emerging into the fore. Said countries outside of China may find IAAPA’s Noland: “Vietnam has huge MarinaBay Sands greater favour in smaller or regional IP growth potential right now, and we also projects. are seeing growth in Malaysia, South Ko- Malaysia and the Philippines were rea and India.”
Report Airports Planning for tomorrow Now that the ASEAN Open Sky Agreement is finally ratified, getting the airport infrastructure planning right and ahead of demand growth are the greatest challenges the region needs to overcome, say industry chiefs Andrew Herdman Director general Association of Asia Pacific Airlines The Asia-Pacific region is already the world’s largest aviation market in terms of both passenger and freight traffic vol- umes, and is expected to continue grow- ing at five to six per cent annually over the next two decades. This year, four billion people world- wide will travel by air, with a third of them being carried by Asian airlines. By 2035, this region alone will account for over three billion air passengers annually, ac- cording to IATA projections. The growth of aviation also delivers wider social and economic benefits, and nowhere is this more evident than key lOvE lOvE/shutterstock markets in ASEAN, where tourism is a significant contributor to national GDPs, and air links are crucial to the movement of people and goods across large archi- pelagos. At the same time, steadily rising will continue to double in size every 12- Clockwise from above: Air traffic congestion is common at Bangkok’s Suvarnabhumi Airport; SITA incomes and growing numbers of middle Smart Path technology kiosks at Brisbane Airport; Singapore Changi Airport’s soon-to-open Terminal 4 class consumers across the region are fur- 15 years. ther accelerating the growth of air travel. Some air travel markets in Asia have Nevertheless, the relentless growth in grown even quicker, highlighting the need travel demand also raises a number of for clear long-term vision and commit- associated challenges for the ongoing de- ment to investing boldly for the future, velopment of the industry, notably in rela- not just incremental expansion. It is criti- tion to infrastructure capacity. At current cally important that the associated avia- growth rates, the Asian air travel market tion infrastructure, including airports, runways, terminal capacity and air navi- gation services, keeps pace with the pro- jected growth in demand. Several airports in the region are al- ready experiencing problems with air Changi Airport Group traffic congestion, especially during peak hours of the day. Some busy airports in ASEAN, including Jakarta, Manila and SITA Bangkok, are operating well above their designed capacity, threatening to degrade ing much needed additional runways, but delays to other flights. service performance and constraining developing such infrastructure involves Governments have a key role to play the development of new routes and flight complex planning decisions and multi- in providing proper regulatory oversight frequencies. Vietnam provides a further year construction programmes. and coordinating the necessary long-term illustration of the potential for rapid Air traffic congestion and infrastruc- planning decisions required for timely de- growth in air travel in line with broader ture bottlenecks can quickly lead to de- velopment of aviation infrastructure. economic and social development, now graded service levels for both passengers Air travel offers exciting growth pros- being backed up with major invest- and airline operators. Flight delays can pects, but continued progress can only ments in new airport infrastructure. cause significant frustration to passengers, be effectively sustained when all relevant Major Asian hub airports including and the effect is compounded if it leads to parties work closely together in active co- Hong Kong and Singapore are add- missed connections and consequential operation and collaboration. On the top of ASEAN airlines’ wish list: infrastructure investment Nicholas Ionides, divisional vice presi- ences, and increasing runway capacity at a low cost. Jaime J Bautista, president and COO, dent public affairs, Singapore Airlines wherever possible to reduce aircraft The real issue is slots at the air- Philippine Airlines We would like to holding in the air and on ground. Such ports. Though traffic rights have been My wish is for see the authorities investment in infrastructure is necessary liberalised, there is still airport conges- airports to focus on take a proactive to support the continuing growth of tion across some of the major airports infrastructure approach and tourism and air travel in this region. in ASEAN, such as Manila and Bali. In because this will lead long-term view of markets like these, there has to be more to the growth of the airport planning, Francis Loi, head of commercial, easing of slots to airlines to enable them aviation industry in and that includes Jetstar Asia to grow. the country. For the making sufficient The policy of open skies has to be fol- Singapore and Jakarta airports are country’s aviation aircraft contact stands available, leveraging lowed with soft and hard infrastructure addressing this, in terms of improving industry to fully maximise the potential of new technologies to improve the check-in, and improvements. LCCs need terminals efficiency. Others are addressing this with ASEAN Open Skies, we should have the immigration and security check experi- that deliver quick aircraft turnarounds the expansion of runways and terminals. facilities to support the market growth.
August 2017 TTG Asia 9 TTG Travel Trade Publishing Trade Media Partner drop, at border control or aircraft board- sengers can check-in at a kiosk, choose evident that self bagdrop successfully in- ing – passengers simply complete a facial their seats and print their boarding passes creases efficiency, with passengers being scan without having to present their pass- and bag tags; and drop off their baggage at able to drop their bags in less than 20 sec- port or boarding card. automated bagdrops. onds, as experienced at major airports in The ability to integrate seamlessly at so In Asia, airports are increasingly turn- Australia like Melbourne and Brisbane. many touch points would make at least 70 ing more to self-service to manage in- Technology can provide many benefits per cent of the journey faster, smoother creasing passenger numbers. For example, to airports – the ability to handle more and less stressful for passengers. A trial at Changi in Singapore, SITA is providing passengers within the constraints of exist- with Brisbane Airport for Smart Path has a combination of self-service check-in ki- ing infrastructure, while ensuring a fast, been launched. osks, self-bag drop and self-boarding to seamless and stress-free journey for trav- Another area is self-service, where pas- increase passenger throughput. It is also ellers. Sumesh Patel President, Asia-Pacific SITA IATA estimates that by 2036, 7.2 billion passengers will travel by air annually, nearly doubling the four billion air pas- sengers expected in 2017. The Asia-Pacific region is expected to lead this growth, accounting for over half of the new pas- sengers over the next 20 years, and China will take the top spot as the world’s largest aviation market in/around 2029. With the sheer number of travellers passing through our airports, plus more flights and aircraft to be managed, it’s no surprise that we see a lot of infrastruc- ture investment in this region. However, as passenger volumes are increasing way faster than new airports or terminals can be built, airports need to get smart about the way they handle this growth. In many cases, innovation and technology can be the answer. The latest of these is biometrics tech- nology, which integrates with existing airport infrastructure, including indus- try standard equipment such as check-in kiosks, bagdrop units, gates for secure access, boarding and automated border control. The SITA Smart Path technology allows a passenger’s biometric details to be captured through a facial scan at the first touch point in the journey such as a check- in kiosk. The biometric record is checked against the passenger’s travel documents and a secure single token is created. Then, at every additional step in the journey – whether it’s during self-bag- The Philippine administration should study the possibility of building a new inter- national airport in Manila or expand existing airports. Terminal 2 at Ninoy Aquino Inter- national Airport, for example, is designed to accommodate 28 million passengers per year. At present, it is handling 34 million per year – way beyond its allowable capacity. Improvements can also be made to existing airports outside Manila like Clark International Airport. Efforts are underway to improve fuelling facilities, airline catering and ground handling.
Destination Malaysia Viewpoints What more must be done to boost Chinese interest in the state? Raaj Navaratnaa, general man- ager, New Asia Holiday Tours & Travel Segmentising the market accord- ing to interests is important. Collaterals and marketing materials can be created according to the needs and interests of the different segments that have been identified by the tourism board. Adam Kamal, CEO, Olympik Holidays The state tourism board should also look at consistent marketing efforts targeted directly at consumers. This can be done through print, TV and online advertising. Besides leisure, incentives is another area that can be tapped. In a state of Meanwhile, the growing force of Chi- nese FITs and their increasing thirst for diverse travel experiences stand Sarawak in good stead to court this burgeoning vast potential market. “We see two types of Chinese FIT pro- files. There are some who extend their stay in Sarawak for three or four days and ex- perience the local food, city, heritage sites and culture,” observed Leong. The second segment comprises “spe- Although lacking direct flights from China, Sarawak could cial interest travellers” who stay longer and seek activities ranging from diving see Chinese inbound tourism take off thanks to new and deep sea fishing off Miri, to visiting longhouses and birdwatching. These are major incentives and partnerships. By S Puvaneswary Lillian Tveit/shutterstock typically millennial travellers who travel in small groups of less than six, she added. Deer Cave in Mulu National Park But for Kuching-based Bel-Air Travel and Tours, arrivals from China dropped 30 per cent in the wake of the MH370 in- B eing a relatively late entrant in 38,345 Chinese tourists visited Sarawak. B2B roadshows in China’s first-tier cities, cident in 2014, and Hong Kong Airlines’ courting the high-growth China China as a visitor source market ranked as well as increasing visibility through film abrupt suspension of service to Kuching market, Sarawak is playing catch fourth for Sarawak, after Brunei, Indone- tourism with the Filming Support Unit – in February after launching in May 2016 up with other destinations in sia and the Philippines. set up earlier this year – to process film further dented its Chinese FIT business – Malaysia through major tourism partner- In the absence of scheduled direct ser- permits from international production not just from Hong Kong but also from ships and incentives targeting the Chinese. vices from China, the state government of houses. Shenzhen and Guangzhou, said managing As the top medium-haul market, arriv- Sarawak began offering a free-entry pass A 100-minute Chinese movie Blue director Alice Khor. als from China to Malaysia reached a re- for Chinese tourists travelling to the state Tears was released in May, with scenes She added: “The main challenge in at- cord 2.1 million tourists last year, yet only directly from China on October 30, 2016. shot in Miri featuring the beach, long- tracting the Chinese market (to Sarawak) This is to encourage charter services houses and Mulu National Caves. is the lack of good beaches and beach ac- from China to offer connections and pro- Sarawak Economic Development Cor- tivities, which is why the Chinese prefer vide alternative access to Chinese tourists poration (SEDC) recently entered into an Sabah.” Destination in numbers who use Kuala Lumpur as the main gate- MoU with international Chinese tour- However, the opening of Borneo Sa- way, for whom a single-entry e-visa for up ism development company, Beijing Glory mariang Resort City, a 202ha integrated 5 million to 30 days costs US$25. Prior to this development, Chinese International Culture Development, to develop the state’s tourism potential and resort featuring a water park, safari and 1,000-room hotel will attract more family Targeted visitor arrivals to Sarawak tourists visiting Sarawak had to connect hospitality management. travellers from South-east Asia and China in 2017, an increase from last year’s through Kuala Lumpur or Kota Kinabalu, Under the agreement, Beijing Glory to Sarawak, Khor said. arrivals which totalled 4.7 million making it a challenge to sell the destina- will manage two SEDC hotels, Damai Sarawak’s potential to attract the China tion to budget-conscious travellers who Puri and Grand Margherita, take over the market has not gone unnoticed by Bandar RM2,236 would favour combining Kuala Lumpur management of tourist attractions such as Seri Begawan-based Freme Travel, which with Langkawi, Penang, Malacca or Johor Bako and Mulu National Park, and make started to package Brunei with Miri early Average per capita expenditure of to avoid additional flight costs, according Kuching the South-east Asian hub for this year to leverage the free-entry pass foreign tourists to Sarawak in 2016, to Mint Leong, managing director of Sun- China Express Airline. that also applies to Chinese tourists enter- equivalent to US$525 flower Holidays. Gracie Geikie, director of Planet Bor- ing Sarawak overland from Brunei. Sarawak Tourism Board (STB) has neo Consultants, is also providing con- Said Sugumaran Nair, manager, in- signed MoU with three charter operators sultation to a large conglomerate in China 6.4 nights bound & MICE division: “We are en- in Wuhan, which will also see the board looking to develop a retirement village in couraged that agents from Shanghai are Average length of stay of international assist in itinerary planning and fam trips Kuching comprising recreational facilities selling Brunei-Miri combinations, which visitors to Sarawak in 2016 for the media and bloggers. and a specialist centre. Once completed in showcase the cultural aspects of Brunei, The NTO is also promoting the desti- three years’ time, it is expected to attract and nature tours to Niah Caves and Mulu nation through consumer advertising and senior travellers from China. National Park in Sarawak.”
August 2017 TTG Asia 11 MY WAY Issue of the day The dreary side of competition Nigel Wong S Puvaneswary looks at price slashing, depleting supply of rooms in the capital, some local hoteliers have resorted to providing simi- Director, Urban Rhythm Tours margins in Malaysia’s competitive inbound sector lar rates to OTAs as what was enjoyed by Adventures and Travel local wholesalers.” I ntense competition from new en- transportation, food and entrance fees in- On top of that, the OTAs get paid a 15 trants, along with weakening book- creases annually,” he lamented. per cent commission upon meeting sales ings from most major markets in the Furthermore, some leisure players are targets and are spared the country’s six per What are some of the challenges past two years, are giving rise to price also courting MICE groups in their quest cent GST charge by being based overseas, that Malaysia faces as a tourist undercutting among Malaysian inbound to diversify business. he said. destination? tourism players. Abdul Rahman Mohamed, general When contacted, Malaysian Associa- Malaysia has many things to offer Arokia Das, senior manager at Luxury manager, Mayflower Holidays, said: “Be- tion of Tour and Travel Agents’ (MATTA) tourists but somehow the message Tours Malaysia, told TTG Asia that the cause GIT and FIT movements are slow, president KL Tan said: “We are aware of is not getting through. While tour- weak inbound market in recent years has players are encroaching into the MICE this issue and will sit down with the local ist numbers have increased over the compelled some inbound agents, who sector targeting China, India and regional hotel associations to find a solution.” years, they have not been exponen- traditionally handled longhaul markets, markets by selling at very (low prices).” In 4Q2017, MATTA plans to organise tial and there is still room for further to diversify into new markets for survival. However, apart from the low prices, roadshows to Nanning, Guilin, Shenzhen growth. The challenge for the tour- As a result, price undercutting became these players provide “no other value and Guangzhou in China; Bengaluru, ism industry is to promote the coun- the call of the day to break into a mar- proposition”, he opined. Chennai and Kochi in India; Manila and try as a fresh destination. ket and quickly build up clientele, he re- “They do not offer added value to the Cebu in the Philippines; and Yogyakarta We are lagging behind our neigh- marked. whole MICE experience. They may get and Semarang in Indonesia. bours as legislature infrastructure is “Prices have become so competitive first-time business, but it is not sustain- Tan commented: “These roadshows, cumbersome, and not conducive in that it’s now a volume game with razor- able in the long run and will affect the which are jointly organised with Tour- empowering the tourism industry thin profit margins. In 2014, we (had) a reputation of Malaysia as a MICE destina- ism Malaysia’s overseas offices, are a cost- to take a step forward. The tourism profit margin of around 12 to 15 per cent. tion in the long run.” effective manner for small and big players industry must be liberalised and li- Now we are lucky to even get 10 per cent. A local wholesaler, Ally Bhoonee, ex- to join and build their contacts, expand censing simplified to allow tour op- “Our package prices remain almost ecutive director of World Avenues, said: market share and ultimately draw more erators to compete on a level playing the same since 2014 although hotel rates, “Due to a soft market resulting in an over- arrivals into Malaysia.” field with ride-sharing apps and ho- teliers. Another challenge is the lack of NEWS IN A MINUTE innovation among travel industry players. We must look at what our counterparts in other countries are 1 Hotels now fall under categories of doing so we can upgrade our prod- AirAsia X says Aloha 4 City Hotels, Highland Hotels, Island/ uct offerings and exceed theirs. AirAsia X launched the four-times weekly Kuala Lumpur-Honolulu Beach/Lake/River Resorts, Innova- tive Hotels and Boutique Hotels. If I had my way to improve things, route via Osaka on June 28, becom- I would... focus a lot more on devel- ing the first Malaysian carrier to fly to the US. Guests transiting in Osaka do 3 Hilton now in Kota Kinabalu oping quality infrastructure such as The Hilton brand has expanded to connectivity and facilities to cater for not require a Japanese visa during the Kota Kinabalu with the opening of business travellers, including dedi- two-hour stopover, and can return to the 305-room Hilton Kota Kinabalu cated MRT lines to Sepang Interna- their seats after clearing security with in March. tional Circuit, Putrajaya and Cyber- any carry-on luggage or belongings. All rooms and suites are equipped jaya. Sepang International Circuit 2 with motion sensing technology that has good facilities and holds races New classification and rating controls lighting and air condition- 5 MAPS opens at long last that attract international visitors, system for hotels ing, modern furnishings and work- Movie Animation Park Studios but it is not convenient to visit using A new hotel classification system spaces. The property also boasts the (MAPS), Asia’s first animation public transport. came into effect on June 1, after the largest outdoor rooftop pool area theme park located in Ipoh, Perak I would bring to the government’s previous star rating system based on in Sabah with a deck area of 842m2, opened in June. Sprawled over 21ha attention the need to focus more on the requirements of city hotels were a 25m-long swimming pool and a of land, it features 23 interactive at- developing our eco attractions and deemed unfair to island and hill re- separate children’s pool. tractions and 15 rides in six themed provide funding for sustainable and sorts. zones. viable eco-projects. We have plenty 3 4 Element Kuala Lumpur The park houses both interna- of gazetted sites that are under uti- Element Kuala Lumpur, the first El- tional and homegrown Intellectual lised and unsustainable because it is ement Hotels in South-east Asia, Properties including DreamWorks costly to maintain. opened in March with 252 guest characters, The Smurfs and The I would also like a call to action on rooms in configurations ranging Home of BoBoiBoy. Attractions in- our national treasure, Taman Negara from studio units to three-bedroom clude South-east Asia’s first car and National Park, which can be further suites. The hotel is located from lev- bike stunt show, themed dining res- improved through better facilities els 39 to 53 of the mixed-use Ilham taurants and Malaysia’s biggest drop and conservation efforts. Tower, making it the highest hotel in tower. Operating hours are 10.00 to the city. 18.00 daily.
Destination Vietnam Viewpoints Keeping the land fertile How can ecotourism be sensitively developed in north Vietnam? Nguyen Thu Trang, director of sales and market- ing, Mai Chau Ecolodge As the resources upon which eco- tourism depends on are limited, one of the biggest issues is resource management. Local people recognise the importance of protecting their resources but there needs to be plans in place. Jack Bar- tholomew, gen- eral manager, Ground Asia JunPhoto/shutterstock More organisa- tions and tour operators are Terraced rice fields in Mu Cang Chai, north-western Vietnam committed to shaping the future positively, but a long-term com- mitment to sustainability and understanding Ecotourism has been a lifeline for northern Vietnam, a region known for its the responsibilities they have by bringing travellers to such places is needed. remarkable landscapes and cultures, but can it prevent over- commerciali- sation and overexploitation? By Marissa Carruthers N orth Vietnam – in particular cuts the bus journey from 12 hours to six. out that careful development is essential Sapa – is shaping up to be the She said: “The increase in accessibility for the region to retain its authenticity. Destination in numbers country’s ecotourism hub, as allows tourists to spend more time seeing Waste management plans, for instance, more operators develop tours Vietnam rather than travelling from one need to be put in place to preserve the and homestays connecting with local eth- nic minority communities, predominant- place to another.” However, as development in Sapa picks unique environment and ecology. Expressing her concerns about the 2.2 million The number of international arrivals ly Hmong and Dao. up pace – triggering an oversupply in ho- downsides of ecotourism, Nguyen said: to Vietnam in January and February Jack Bartholomew, general manager of tels and guesthouses, and a surge in room “(Ecotourism) can have a detrimental ef- 2017, a 33 per cent increase, and Ground Asia, said: “The potential in north prices – tourism is trickling into nearby, fect instead. As a destination’s popularity the first time the monthly figure Vietnam is huge. You have a whole range less-developed provinces. grows, resources sometimes become over- crossed the one million mark of ecosystems – forests, national parks, Other areas in north Vietnam, Lang taxed and natural attractions suffer from limestone ecosystems and a massive po- Son, Ha Giang and Son La, are also grow- (congestion). Visitors can also disrupt tential for cultural preservation as the area is home to numerous tribes and ethnic ing in popularity. Despite the lack of infra- structure, their off-the-beaten-track ap- wildlife, resulting in changes to their feed- ing and mating habits.” 10 million groups.” peal has seen more international visitors Overdevelopment is another concern, The number of foreign visitors in Nguyen Thu Trang, director of sales incorporating these destinations into their especially as domestic tourists surge. 2016, a year-on-year increase of 26 and marketing at Mai Chau Ecolodge, itineraries, noted Bartholomew. “What you see now is handful of sites per cent. These visitors brought a agreed: “Ecotourism is undoubtedly a In February, a masterplan to develop getting a massive number of visitors while spending power of US$17.5 billion burgeoning niche market within the Viet- Mau Son tourism zone in Lang Son was many others remain unvisited,” said Bar- nam tourism industry.” Besides an increase in ecotourism given the green light, and 1,500ha was devoted to developing a range of tourism tholomew. “It also means the tourist dol- lar isn’t reaching those other places.” 11.5 million products, Shu Tan, founder and di- products relating to the landscapes and Stressing the need for proper develop- The anticipated number of rector of Sapa O’Chau, said the high- the native Dao, Tay and Nung ethnic mi- ment plans in ecotourism destinations, international arrivals in 2017, which way connecting Hanoi to Lao Cai, nority culture. A target to attract 800,000 Bartholomew added: “Hopefully some will generate about US$20.3 billion which debuted in 2015, has been key visitors by 2025 has been set. lessons can be learnt (but) the outlook is to opening the area up to visitors as it But industry players are quick to point positive; the potential is huge.” MY WAY What are the three greatest chal- lenges to Sapa’s tourism and how would you address them if you had eos and ways to deal with street ped- dlers can be made, and publicised via social media or shown on flights enter- These big commercial developments mainly cater to domestic tourism but there needs to be a balance between your way? ing Vietnam. attracting domestic and foreign tour- ists. Harassment: Street peddlers are main- Over-commercialisation: Sapa’s ap- ly ethnic minority people selling hand- peal is its ethnic minority cultures and Short-term gains: Locals go for short- icrafts or providing unlicensed tours traditions, climate and spectacular term gains and often do not care and homestays. They pester tourists landscape. Over-commercialisation about proper licensing and training. As over long distances to buy their prod- makes it feel unauthentic. a result, there are not enough trained ucts or harrass them to hop into mini- For example, the new Sapa market is workers in services and hospitality. vans with the promise of low fares but too commercialised compared with the There needs to be a training facility Shu Tan instead charge exorbitant prices. old, vibrant market. Another example in Sapa so local ethnic minorities can If these situations persist, the tran- is the cable car at Fansipan mountain. fit into this new economy; otherwise Founder and director, quil image of Sapa will be damaged Foreigners prefer to climb it rather the vicious cycle of poverty will nega- Sapa O’Chau and its appeal lost. Light-hearted vid- than take the cable car. tively affect tourism.
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