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The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
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                                                                       The makings
                                               No. 1751/October 2017
                                                                       of new Bali’s
                                                                           Indonesia wants to develop 10 new Bali’s.
                                                                        Problem is, investors still can’t get enough of
                                                                                the real one, Mimi Hudoyo reports
              Erwin Gumelar

                           View from the top
                           Archipelago International turns
                           20 this year. Founder Charles
                           Brookfield recounts its rocky
                           journey to be Indonesia’s biggest
                           hotel management company
                           with 134 hotels in three
                           countries. By Mimi Hudoyo

                           +
                           LCCs’ magic wand
                           on Mindanao
                           Why are DMCs
                           so hot now?
                           Luxury travel:
                           For richer for
                           poorer
                                                                                                                                          myfifthday/shutterstock

                                                                                                         Tourists hiking to Mount Bromo
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
October 2017 TTG Asia 4

Contents & editorial                                                                                                                  Want to read us on the go?

   Analysis    06
 View from
    the top    10
Intelligence   12
    On The
     Radar     13
      Shop     14
   Connect     34
                      Report: Serviced
                                       16                               20
                                                                  Report:
                                                                                                       22
                                                                                               Destination:
                                                                                                                                        26
                                                                                                                                 Destination:
                                                                                                                                                                          30
                                                                                                                                                                    Destination:
                           residences                        Luxury Travel                      Singapore                          Malaysia                          Philippines

Why are DMCs so hot now?
                                                     I  t is raining DMCs at our newsdesk. Who would have
                                                        thought that it’s the smaller guy who would take the
                                                     wheel at the larger player? That’s the story of Stephan
                                                                                                                           So why are DMCs so hot now? The major reason is
                                                                                                                       they are profitable, and benefit from continued rise in
                                                                                                                       travel. For companies like Intrepid, it’s the rise in new ad-
                                                     Roemer, who founded Tourasia in 1992 and grew it to               venture travel markets in China, Japan and everywhere
                                                     be a reputable Swiss tour operator specialising in travel         else. And if you look at ‘adventure’ in the broader sense
                                                     to Asia, with just 50 staff in Europe (including opera-           of the word, i.e. not necessarily jumping off a cliff, but
                                                     tions in Germany and Poland). He’s now a “substantial”            going off-the-beaten path, engaging with locals, etc –
                                                     shareholder of Bangkok-based Diethelm Travel Group                well, there’s a whole lot of passengers wanting that today.
                                                     (DTG) – established in 1957, 450 staff, 12 Asian coun-            Which is why DMCs thrive; they are after all ‘Destination
                                                     tries – substantial enough to put him in the driver’s seat        Management Companies’ (although I find the word pre-
                                                     to shape Diethelm’s future.                                       tentious, not to say confusing, when ‘specialists’ alone will
                                                         Over at Bangkok-based Destination Asia, there’s also          do, but that’s another story).
                                                     a new CEO, Monique Arnoux, replacing Jim Reed, co-                    For organisations like JTB, it’s the rise in Asians trav-
                        What’s excit-                founder of the company who has been elevated as execu-            elling longhaul, while for companies like Thomas Cook
                                                                                                                       India and Tourasia, it’s the re-emergence of Europe and
                                                     tive chairman. You recall that in June last year, DNATA
                        ing for me                   bought an undisclosed share of Destination Asia. And              the US for Asia. As Thomas Cook India’s CEO Madhavan
                        is this criss-               let’s not forget that Kuoni Group went to pieces; Thomas          Menon told me: “As Singapore Airlines, Qantas and other
                                                     Cook India vultured its network of DMCs – Allied TPro             carriers start operating longhaul aircraft – nonstop from
                        crossing                     US, Asian Trails, Australian Tours Management, Desert             Asia to North America, from Australia to Europe – these
                        of DMC                       Adventures/Gulf Dunes Middle East and Private Safaris             tourists will find it easier to come to Asia, unlike today
                                                     Africa – while JTB Corporation swooped in on Kuoni                where it involves a stop through say Emirates or Qatar in
                        acquisitions                 Global Travel Services, which handles a growing volume            the Middle East.”
                        – India into                 of Asian leisure and corporate business into Europe.                  Economies of scale and vertical integration (Toura-
                                                                                                                       sia’s DMCs, for instance, are now into DTG) will enable
                        Asia, Japan                      What’s exciting for me is this criss-crossing of DMC
                                                     acquisitions – India into Asia, Japan into Europe, Middle         DMCs to invest more on technology and resources to be
                        into Europe,                 East into Asia. More of this will happen. Intrepid Group,         more personalised, knowledgeable and speedier in re-
                                                                                                                       sponding to clients’ needs.
                        Middle East                  which owns 20 adventure travel DMCs throughout Asia,
                                                     South America, Africa and Europe, is on the prowl for                 Expect them to be ‘hotter’.
                        into Asia.                   more DMCs to buy. Executive chairman Darrell Wade
                                                                                                                       Raini Hamdi
                                                     told me they collectively contribute half of the group’s
                                                     revenues. He aims to buy five DMCS this year, in Japan,           Senior Editor
                                                     Mexico, Costa Rica, Panama and Iceland, and another                  raini.hamdi@ttgasia.com
                                                     five next year in Indonesia, Brazil and three others.                twitter.com/rainihamdi

     COMING UP
                    TRAVEL AGENCY CHALLENGES 2018                       2017 CEO REFLECTIONS Industry big-
                    Find out what inbound agencies in Asia predict      wigs describe 2017 in three words, reveal their
                    are their biggest challenge in 2018 and how         unexpected joy, single biggest time waster and
   NEXT ISSUE:      they are prepping themselves up for it.             the best books they read in the past year.
    NOV/DEC
                    BEST OF THE BEST 2017 Our pick of the               FAMILY TRAVEL, CRUISES Check out the
      2017          best innovations and initiatives from the various   latest trends in family travel and cruises, our two    World Dream, Dream Cruises’ second ship will begin service on
                    sectors of the industry this year.                  special reports in this issue.                         November 17
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
DREAM CRUISES’
                                        WORLD DREAM
                                                   to debut in China in November

Genting Cruise Lines is set to launch World Dream,
                                                                            LUXURIOUS ALL-INCLUSIVE
Asia’s newest cruise ship, this November at dual                            CONCEPT FOR DREAM PALACE
homeports in Hong Kong and Guangzhou (Nansha).                              Dream Palace, the signature,
                                                                            exclusive ship-within-a-ship
The second ship in Dream Cruises’ fleet will be an 18-deck, 151,300         experience across the Dream
ton vessel with capacity for over 3,400 passengers. World Dream aims        Cruises fleet, will be offering
to continue to grow the Pearl River Delta cruise industry and provide       additional suites exclusively for
fly/cruise options for the region with new itineraries to Vietnam and the   World Dream guests to meet the
Philippines.                                                                growing demand for more
    This newest addition has been conceived as a floating high-end,         luxurious accommodations.
integrated resort at sea leveraging on Genting Cruise Lines’ extensive      Ensconced in elegantly spacious
history and expertise from its cruise related businesses.                   interiors, all Dream Palace guests
    “Genting Cruise Lines is reinforcing our position in the Pearl River    will enjoy dedicated Palace             From top: Dream Suite; Vintage Room
Delta region by welcoming World Dream to begin her service with dual        Concierge service orchestrated
homeports in Guangzhou (Nansha) and Hong Kong, following in the             by a team of attentive Dream            ABUZZ WITH
footsteps of Genting Dream previously,” said Kent Zhu, president of         Butlers.                                RECREATIONAL ACTIVITIES
Genting Cruise Lines.                                                           Passengers are offered              Retail pursuits will be
    “Designed to cater to the growing Chinese market with tailor            exclusive and unique experiences        accommodated by a variety luxury
made facilities including quad occupancy staterooms to accommodate          which are Asian at heart and            shops and boutiques, highlighted
family travellers, World Dream will further build upon our ongoing          international in spirit. The Dream      by new brand partners including
commitment to this region which has seen Guangzhou (Nansha) evolve          Palace all-inclusive experience         prestigious luxury jewellers Tiffany &
into China’s second busiest port and the strengthening of Hong Kong         will also deliver a host of             Co. and a beauty bar. A novel
as a premier fly/cruise hub.”                                               complimentary privileges                marketplace and bazaar concept will
    Itineraries include 6-day/5-night cruises to Manila and Boracay in      including set menu meals in all         bring the hustle and bustle of street
the Philippines from mid-November to end March 2018 alternating             Dream Palace outlets, set meal          market shopping to World Dream
with 6-day/5-night journeys to Ho Chi Minh and Nha Trang in Vietnam         credit in five specialty restaurants,   with stalls of goodies available for
from December 3, 2017 to October 14, 2018 aimed at both local and           premium beverage package and            purchase. Leisure and entertainment
international guests.                                                       city shuttle transfers.                 options will be further boosted with
                                                                                                                    a new outdoor plaza in the pool
                                                                            SURF AND TURF FINE DINING               area and a thrilling new indoor
                                                                            On the dining front, guests can         virtual reality and game area.
                                                                            look forward to the new Vintage             An integrated medical and
                                                                            Room private food and wine              European Spa facility will feature a
                                                                            chef’s table showcasing Dream           dedicated doctor to administer the
                                                                            Cruises’ preferred relationship         latest in beauty treatments and new
                                                                            with Penfolds wine makers and           spa “Journey” packages promise
                                                                            their extended vineyards globally       the ultimate in pampering.
                                                                            to provide the perfect spot for an
                                                                            exclusive dinner experience. Two        dreamcruiseline.com
                                                                            new world class restaurants will
                                                                            include an upscale steakhouse for
                                                                            meat lovers and a seafood
                                                                            concept featuring a fresh seafood
Clockwise from left: Boracay; Nha Trang; Ho Chi Minh                        market display counter.
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
October 2017 TTG Asia 6

Analysis
                                                                                                                                                                                 port fees.

                                                                                                                                               Thor Jorgen Udvang/shutterstock
LCC wand on Mindanao
                                                                                                                                                                                    Aviation veteran Avelino Zapanta, who
                                                                                                                                                                                 used to helm PAL and Seair and is now a
                                                                                                                                                                                 professor at WCC Aeronautical and Tech-
                                                                                                                                                                                 nological College in Pangasinan, con-
                                                                                                                                                                                 curred that granting the airlines highly
                                                                                                                                                                                 discounted charges, if not free, will “help
                                                                                                                                                                                 them survive in their pioneering effort”.
                                                                                                                                                                                    “The Malaysian airport authorities are
                                                                                                                                                                                 much more liberal in this. They automati-
                                                                                                                                                                                 cally give these benefits to new entrants in
                                                                                                                                                                                 the EAGA routes. Our authorities should
                                                                                                                                                                                 be equally supportive,” he said.

                                                                                                                                                                                 Other issues
                                                                                                                                                                                 Opening the EAGA corridors from Mind-
                                                                                                                                                                                 anao will also require the strengthening
                                                                                                                                                                                 of immigration. Airlines will have to do
                                                                                                                                                                                 their part in profiling their passengers
                                                                                                                                                                                 which Air Asia is doing in Malaysia, said
                                                                                                                                                                                 Comendador, cum laude graduate of the
                                                                                                                                                                                 Philippine Military Academy and for years
                                                                                                                                                                                 a pilot and strategist of combat missions
                                                                                                                                                                                 as member of the Philippine Air Force’s
                                                                                                                                                                                 elite Strike Wing.
                                                                                                                                                                                    “In Malaysia, we have a direct access
                                                                                                                                                                                 with Interpol and we are trying to adopt
                                                                                                                        Zamboanga airport
                                                                                                                                                                                 that in the Philippines,” he said.
                                                                                                                                                                                    Comendador also pointed out that as
A string of airlines has come and gone in trying to link the Philippines with Brunei,                                                                                            part of its CSR, Air Asia through Air Asia
                                                                                                                                                                                 Foundation has teamed up with US-based
Indonesia and Malaysia. Two new lionhearts are AirAsia and Cebu Pacific. Can they                                                                                                Airline Ambassadors International to
make it and usher in peace and prosperity to Mindanao? Rosa Ocampo reports                                                                                                       train all its frontline staff and cabin crew,
                                                                                                                                                                                 including those in the Philippines, to fight
                                                                                                                                                                                 human trafficking.

M
               indanao’s isolation may          Dexter Comendador said that with the           from Mindanao, Fernandes sent a posi-
               soon be a thing of the past,     Philippine government’s emphasis on            tion paper to the Philippine government                                           What comes first?
               giving hope for tourism –        improving infrastructure in Mindanao,          requesting for concessions in airports that                                       What comes first: Tourism creates peace,
               and peace – to bloom in this     the Davao-Kuala Lumpur flight is a start,      are not yet fully developed. This includes                                        or peace creates tourism?
bountiful yet troubled land in southern         and there are plans to pioneer more routes     waiving the passenger departure tax of                                               Much rests on the success of the flights
Philippines.                                    from Davao to Miri, Kota Kinabalu, Bru-        P1,620 (a little over US$3) and airport                                           to prove that the former can come first.
   From just a single ASEAN route               nei and other EAGA and non-EAGA des-           fees such as landing and takeoff charges                                             Zapanta said: “The industry will owe
(Davao-Singapore via SilkAir), Mindanao         tinations.                                     and aeronautical charges for a period of                                          Cebu Pacific and Air Asia much if they get
will have two more: in October with Cebu           Indeed, there is a market waiting to be     five years until the passenger traffic is de-                                     to develop the traffic on the routes.”
Pacific’s Zamboanga City-Sandakan and           tapped. Several areas in Mindanao have         veloped.                                                                             He said as traffic and flight frequencies
in December with Air Asia’s Davao-Kuala         enjoyed centuries of economic and cul-            The paper pointed out that what the                                            increase, the benefits to the communities
Lumpur, a starting point for connecting         tural ties with EAGA regions, their shared     Philippine government will lose in waived                                         involved will be great and should help
Davao to the rest of the East Asia Growth                                                                                                                                        bring about peace and order as more jobs
Area of Brunei, Indonesia, Malaysia and                                                                                                                                          are created.
the Philippines (BIMP EAGA).                                                                                                                                                        Agreeing, Dottie Cronin, who hails
   Much hope is pinned on these air routes                                                                                                                                       from Mindanao and is general manager of
to Mindanao, which while being one of                                                                                                                                            Marco Polo Hotel Davao – the only for-
the country’s loveliest and unspoiled des-                                                                                                                                       eign-brand in Mindanao for a long time
tinations, has been suffering from limited                                                                                                                                       – said pioneering air routes will open up
access, bad image, and poverty – a major                                                                                                                                         other destinations in Mindanao and beef
contributor to insurgency and unrest in                                                                                                                                          up tourism development.
certain areas.                                                                                                                                                                      Proving that tourism helps pump the
   The routes gain more significance as                                                                                                                                          economy, Cebu Pacific’s Lagamon point-
their launch is amid the ongoing war be-                                                                                                                                         ed out how it created opportunities and
tween government forces and militants in         The industry will owe                          Davao is amenable to                                                             positive socio-economic change in Siar-
the Islamic City of Marawi that caused the                                                                                                                                       gao and Camiguin, two of the most popu-
declaration of martial law over the entire       Cebu Pacific and Air                           the proposal (of waiv-                                                           lar destinations in Mindanao.
Mindanao in May.                                                                                                                                                                     Butch Blanco, tourism director of Re-
   But will these air services be sustainable    Asia much if they get                          ing passenger and                                                                gion IX in western Mindanao including
given that past efforts floundered due to
thin traffic?                                    to develop the traffic                         airport charges which)                                                           Zamboanga, believes peace comes before
                                                                                                                                                                                 tourism. However there are instances
   Among airlines that have quit the
EAGA routes are Mindanao Express
                                                 on the routes.                                 will result in lower                                                             when tourism is honed even before peace
                                                                                                                                                                                 settles in.
(Zamboanga-Sabah), Philippine Airlines
(PAL) with its Cebu-Bandar Seri Bega-
                                                 Avelino Zapanta
                                                 Aviation veteran
                                                                                                fares.                                                                              For instance, Blanco shared that the re-
                                                                                                                                                                                 gion will embark on a community-based
wan, Cebu-Kota Kinabalu and Zamboan-                                                            Dexter Comendador                                                                tourism project next year, either in Zam-
ga-Lauban routes, and South East Asia                                                           President and CEO                                                                boanga del Norte, Zamboanga del Sur or
                                                                                                AirAsia Philippines
Airlines (Seair) with its Manila-Puerto                                                                                                                                          Zamboanga Sibugay, that will encourage
Princesa-Kota Kinabalu.                                                                                                                                                          former insurgents to join so they can real-
                                                                                                                                                                                 ise what benefits tourism can bring.
Someone has to try it again                     heritage resulting in strong trade relations   fees would be more than compensated                                                  “We can be a tourism template (of how
Perhaps AirAsia Group CEO Tony Fer-             and family ties. But the main mode of          for by huge increases in passenger traffic,                                       to develop a certain area that has issues
nandes can make it happen. A risk-taker,        transport remains by sea.                      which will in turn attract hotels and other                                       with insurgency and poverty, into a tour-
he foresees that opening new routes in un-         As Cebu Pacific director of corporate       tourism investments.                                                              ism draw),” he said.
derserved areas with low fares would cre-       communications, Charo Lagamon, said:              Departure fees are many times more                                                The road to peace, progress and pros-
ate the demand, including in Mindanao           “Today, hundreds of passengers brave a         expensive than the air fares, a disincentive                                      perity is long and necessitates participa-
which has a huge population. After all,         14-hour boat ride between Zamboanga            to travellers, it said.                                                           tion from all stakeholders, be they the
Fernandes has opened new routes nobody          and Sandakan. That indicates that there is        AirAsia’s Comendador said: “Davao                                              public and private sectors and local resi-
dreamed of doing – to Macau, Bandung,           a market for a 40-minute plane ride.”          is amenable to the proposal. This is big                                          dents.
Langkawi and, in the Philippines, Clark                                                        deal for developing regional routes from                                             But connecting Mindanao to its Asian
and Kalibo.                                     What AirAsia asked for                         Davao, as it will result in lower fares.”                                         neighbours now is a good start in making
   AirAsia Philippines president and CEO        Laying down the groundwork for flights            He said Malaysia does not charge air-                                          tourism a creator of peace.
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
October 2017 TTG Asia 8

                                                                                                  Analysis
         UNLOCK

                                                                  Kanjanee Chaisin/shutterstock
       THE JOURNEY

                                                                                                   Mount Bromo, East Java, Indonesia

                                                                                                  Developing new Bali’s
Soak in the autumn                                                                                Indonesia wants to develop 10 new Bali’s. Problem is, investors
air with aviS                                                                                     still can’t get enough of the real one, Mimi Hudoyo reports

                                                                                                  W
                                                                                                                   ith 15 million ar-   it is redeveloping the former Pan       around Bali (such as Lombok
autumn is the season where the air gets crisp and the                                                              rivals expected      Pacific Nirwana Bali Resort in          and Labuan Bajo, gateway to Ko-
leaves start to turn into beautiful hues of copper. a time                                                         this year, and 20    Tuban into a “six-star” hotel and       modo Island) are talked about
when one finds crunchy leaves underfoot, dazzling colours                                                          million by 2019,     redesigning the golf course there.      more, but plots that have been
and cooler temperatures, offering perfect conditions for                                          Indonesia believes the need to            Ivan Casadevall, MNC Land’s         sold are small.”
                      2 column strip ad (Vertical)

road-trippers looking to pull over and stretch their legs on                                      spread tourism beyond Bali has        deputy COO hospitality, said:              Wallace questioned if it was
                        5column 88 x 356mm

an autumnal hike.                                                                                 become more critical.                 “We are going into Bali but way         not wasteful to spend money
                                                                                                     As pointed out by tourism          out of where everything is hap-         opening as many as 10 new des-
                                       White Mountains, USA                                       minister Arief Yahya, of 34 prov-     pening. The toll road is not even       tinations. “Why not choose just
                          Promising a visual treat, new                                           inces in the country, Greater Bali    close to start being built. It takes    three or four and do those well?”
                          england in the uSa  a is renowned                                       gets 40 per cent of international     a little bit of longterm vision.”          Better still, focus on the do-
                          for its beautiful fall landscapes.                                      arrivals, Greater Jakarta 30 per          But Indonesian travellers actu-     mestic market, he added. “I think
                          one of new england’s most                                               cent and Riau Islands 20 per cent.    ally do look for new destinations       the real game here is where the
                          beautiful drives is along the                                              The 10 new destinations the        in the country. Erastus Radjimin,       Indonesian market wants to go,
                          scenic kancamagus highway.                                              ministry hopes to nurture as                                                  how to stop them from going to
take a pit-stop in the white mountains, lace up your
t
                                                                                                  new Bali’s are Lake Toba (North                                               Singapore,” he said.
walking boots and take a hike through the hills to see
autumn at its most vibrant, where the trees are full of vivid
                                                                                                  Sumatra), Tanjung Kelayang                                                       Samudra Hendra, owner of
maple leaves.                                                                                     (Belitung), Tanjung Lesung                                                    Milestone Pacific Hotel Group,
                                                                                                  (Banten), Kepulauan Seribu                                                    Indonesia, which operates hotels
                                                                                                  (Jakarta), Borobudur (Jogja-                                                  in many cities in Indonesia, said
                                                                                                  karta-Solo-Semarang, Central                                                  he focuses on business rather
                                       Loire Valley, France
                                                                                                  Java), Mount Bromo (East Java),                                               than leisure hotels and goes
                            if you thought that the Loire                                         Mandalika (Lombok), Komodo                                                    “where new infrastructure de-
                            valley in France couldn’t get any                                     National Park (East Nusa Teng-                                                velopments are, even if those are
                            more picturesque, think again!                                        gara), Wakatobi National Park                                                 in destinations like Purwokerto,
                            the season sees the rolling
                            vineyards put on their annual
                                                                                                  (Southeast Sulawesi) and Moro-                                                Tegal or Cilacap (Central Java)”.
                            autumnal display of colours as                                        tai (North Maluku).                                                              “I will rush and open a hotel
the vines transform from green to fiery red. after driving                                           It’s been a long try. The gov-                                             there and make money, well, at
past charming chateaux, take a stroll along the tracks and                                        ernment has, for instance, given                                              least until others follow,” he said.
trails that criss-cross the vineyards and watch the grapes                                        a Special Economic Zone status                                                   Hiramsyah S. Thaib, team
being harvested.                                                                                  to places such sa Tanjung Lesung,                                             leader of the acceleration for the
                                                                                                  Mandalika and Morotai, enticing       Gebbie: There are clients who look      development of priority tour-
                                                                                                  investors to develop infrastruc-      beyond Bali but most are small scale    ism, Ministry of Tourism, said
                                       Jeju Island, South Korea                                   ture there. But, take Lombok’s                                                infrastructre development isn’t
                           Closer to home in asia is                                              Mandalika project – fact is, it has   CEO of Artotel Indonesia, said:         the responsibility of the minis-
                           Jeju island in South korea,                                            not taken off in over a decade.       “For Indonesians, especially my         try alone.He said the transport
                           designated as one of the new                                              While players such as Ac-          (millennial) generation, we are         ministry and airport authorities
                           7 wonders of nature. with                                              corHotels, Archipelago Inter-         bored with Bali. It is interesting      are developing airports, while
                           numerous attractions all over                                          national, Santika Indonesia and       to see what is being promoted in        the public works ministry has
                           the island, self-drive is one of the                                   Sahid Hotels have entered some        these 10 destinations.                  worked with the World Bank for
best ways to tour this destination. Popular routes include                                        of these destinations, a hospital-       “However, at the end of the          a loan to develop roads. Indone-
the 1131 highway that connects the 2 major cities of the
island – Jeju City and Seogwipo City; the 1132 highway,
                                                                                                  ity investment conference held        day, it will be back to infrastruc-     sia’s financial institutions too are
which circles the island and promises a spectacular coastal                                       in Jakarta last May revealed that     ture development, which is more         providing loans for hostels and
drive; and the 1139 highway with a stunning view of                                               many investors still see Bali and     important than promotion (at            homestays, while the education
southern Jeju – all of which lead to the start of different                                       Jakarta as fertile grounds.           this stage). When you have good         ministry is lending its hand on
hiking trails.                                                                                       Kevin Wallace, managing di-        infrastructure, everybody will          human resource training.
                                                                                                  rector Asia-Pacific of Dream          start coming in, we will see good          Citing an example, he said
As the temperature cools and the days dim in this season,                                         Hotel Group, said: “I don’t think     asset value – the developers will       Silangit Airport near Toba was
the air becomes magical, making it a lovely time for a                                            Bali is saturated. Tuban and Sun-     automatically come.”                    reopened last year declared an
road trip to see the amazing autumnal colours shine in                                            set Road perhaps yes, but we are                                              international airport last month.
                                                                                                                                           Matt Gebbie, director of Hor-
their seasonal glory.
                                                                                                  looking at Pecatu and Canggu –        wath HTL Pacific Asia, said there          Travel time between Jakarta
                                                                                                  beautiful up there.”                  are clients, mostly Indonesians         and Toba has been cut down to
                                                                                                     MNC Land, which has a huge         and some mainland Chinese,              two hours with a direct Jakarta-
                                                                                                  project on a 110ha land near          that are looking for destinations       Silangit flight, served by Garuda
                                                                                                  Tanah Lot temple, also believes       other than Jakarta and Bali. But        Indonesia, Sriwijaya Airlines and
www.avisworld.com/ttgasia
                                                                                                  Bali is still feasible. In partner-   most are small-scale investments.       Lion Air. Then it’s only less than
                                                                                                  ship with Trump Organization,            Gebbie said: “The islands            an hour’s boat ride to Lake Toba.
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
The makings of new Bali's - Indonesia wants to develop 10 new Bali's. Problem is, investors still can't get enough of the real one, Mimi Hudoyo ...
October 2017 TTG Asia 10

View from the top
Archipelago was founded in 1997 as                                                                                                                             cans will travel and tourism will boom.

                                                                                                                                               Erwin Gumelar
Aston International. What was your vi-
sion for it then?                                                                                                                                              But the brands were developed to suit
Aston, where I worked as executive vice                                                                                                                        the Indonesian market. How do you
president, was a well-known hotel brand                                                                                                                        convince overseas developers that the
in Hawaii with around 30 properties. The                                                                                                                       brands fit their clients?
company was looking to expand outside                                                                                                                          Fave and Neo are mostly domestic prod-
the US. I was looking at Asia-Pacific for                                                                                                                      ucts. But the Malaysian domestic market,
countries whose economy would boom                                                                                                                             for example, is similar in many ways to
in the next 10 to 20 years and I targeted                                                                                                                      that in Indonesia.
Indonesia and the Philippines originally.                                                                                                                          I tell the developers to look at what
   The hotel developments were mostly                                                                                                                          we have done and how we have done it.
four and five stars categories, which gave                                                                                                                     I show them the cost structure. How we
prestige to the conglomerate developers                                                                                                                        control and do things here we believe will
then. My idea then was to get four- and                                                                                                                        work in Malaysia as well.
five-star properties in all the capital cities                                                                                                                     So it is a matter of saying in your coun-
in South-east Asia and in major resorts                                                                                                                        try, no matter what country that may be, is
such as Phuket, Boracay and Bali.                                                                                                                              the domestic market growing enough? Is
                                                                                                                                                               there enough budget airline travel, is the
What happened when the economic                                                                                                                                economic profile of the country similar
crisis hit Asia in 1997-1998?                                                                                                                                  to Indonesia? I think in many cases it is.
At that time we had opened offices in Ja-                                                                                                                      In many countries in South-east Asia, the
karta and Manila.                                                                                                                                              middle class is growing and travel is up, be
   When the economic crisis hit Asia,                                                                                                                          it for business, schooling or leisure. So it is
Indonesia did not only experience an                                                                                                                           a matter of matching the economic profile
economic crash but a political overturn;                                                                                                                       of the country (with the brand).
however the Philippines seemed more
negatively affected than Indonesia.                                                                                                                            What is your plan going forward? More
   A number of hotel projects and every-                                                                                                                       hotels in Indonesia or more overseas

                                                           Conquering
thing else on the way in the Philippines                                                                                                                       expansion?
were all frozen. The only way to get a                                                                                                                         We have full efforts on both local develop-
project in the Philippines was if you also                                                                                                                     ment and overseas development.
brought to the table US$4-US$5 million                                                                                                                            We have one expatriate looking for

                                                           Archipelago
as some sort of investment capital to go                                                                                                                       overseas expansion, and another expatri-
with getting a management contract.                                                                                                                            ate looking after overseas and local busi-
   As a small company, there was no way                                                                                                                        ness development.
I had the personal capital to do that. So I                                                                                                                       So we have actually put more resources
had to close the office in the Philippines                                                                                                                     into looking overseas than we have before.
and came to Indonesia and focused my
attention here. Here, at least we had the                                                                                                                      Any thoughts on going public in the fu-
Aston Rasuna Jakarta and Aston Benoa
Bali running.
                                                  Archipelago International turns 20 this year. Founder                                                        ture?
                                                                                                                                                               We have been approached to sell some
   That, however, was not enough to sur-
vive as a management company, especially
                                                   Charles Brookfield recounts its rocky journey to be                                                         shares. In fact, a Chinese company wanted
                                                                                                                                                               to buy the whole company.
when the management fee was very mod-
est in the beginning. We did not even have
                                                   Indonesia’s biggest hotel management company                                                                   With 134 hotels operating, and over
                                                                                                                                                               100 projects on the pipeline, what I would
enough income to support an office.               with 134 hotels in three countries. By Mimi Hudoyo                                                           like to see is (my children) Jules (now
                                                                                                                                                               vice president of technology & integra-
Indonesia’s political situation made                                                                                                                           tion) and Tenaiya (vice president of sales
the business environment bleak many              What was the turning point?                    hotels in the major cities and resort desti-                   & marketing) be responsible for the com-
years after. What kept you believing?            It was when John (Flood, now president         nations the way we originally planned but                      pany to grow, so that someday they can
Indonesia’s economy and political unrest         and CEO of the company) and I dis-             in secondary cities as well. We also oper-                     take over, run the company and take it to a
were really difficult. I could go back to the    cussed what we were going to do to make        ate hotels in the Philippines and Thailand,                    greater height.
US, but if I did that I felt I was going back-   the company more successful. Then the          and soon will be in Cuba!                                         The only way I would actively be think-
ward. I have a little bit of a donkey attitude   idea of getting away from four and five                                                                       ing about selling anything is if Jules and
to keep battling, and believed that things       stars, to budget and mid-market, came          Was the regional and international ex-                         Tenaiya say, ‘Dad, in five or 10 years we
would eventually succeed.                        and with it, the idea for the Fave (budget)    pansion planned or by chance?                                  would rather start our own business or do
   For almost 10 years the company grew          brand.                                         We were able to convince a developer in                        our own things.’
very little. I had a hard time surviving as         The reason behind it was that the great-    Langkawi to develop Fave. That same                               If the family does not want to run the
an individual to keep the company alive.         est growth in Indonesia was coming from        owner wanted to do another hotel in                            company, then why not sell and take that
If I had taken my salary in the first six to     the budget sector. Domestic travel was         Langkawi, a Neo. (Later) we signed a con-                      money and invest in other things. But I re-
seven years, the company would have been         increasing but on budget airlines. That        tract for Royal Kamuela Villas. So we are                      ally like the idea of the company growing
bankrupt.                                        meant people were travelling on probably       finally getting higher brand contracts.                        and becoming something more.
   During that period, my son Jules, who         a more limited budget. So if they needed          Similarly in the Philippines, our part-                        Having said that, Gabriella (Brook-
still lived in Hawaii then, kept asking me       to stay in a hotel, they needed to stay in a   ner wanted to build different brands and                       field’s other daughter, 13 years old) has
year over year, ‘Dad, when are things go-        more affordable hotel – clean, everything      even created its own five star brand, the                      talked to me of what college she needs to
ing to get better for you there?’ I kept re-     works but very affordable.                     Crimson. They are even committed to                            take to be able to join the company. The
sponding, ‘Let us see in a couple of years.’        We then decided to hire our own archi-      build more Crimsons.                                           fact that she is already thinking about it at
   Really inside I always believed that we       tect, design our own hotels and present it        In the Philippines we have four hotels                      her eighth grade is surprising to me.
just needed one of two good breaks. It           to developers.                                 already; two more will be open this year
took 10 years before the company really             We developed Fave and included finan-       and at least one every year for the next six                   To sum up, how do you view your “baby”
took off.                                        cial projections that showed developers        or seven years, with the same developer.                       growing in the past 20 years?
                                                 great return on investment. That eventu-                                                                      If ever I write a story of my life and the
Ten years is a long time to keep a busi-         ally became the turning point. Today we        How did you get business in Cuba?                              whole dream of coming to Asia, it turned
ness afloat. Where did that positive at-         have 52 Fave hotels opened (plus 22 on         It was really an unexpected contact. It was                    out that the first 10 years was worse than
titude come from?                                projects), and around 25 Neos, a brand a       surprising that they picked us when they                       what I imagined. The last 10 years, how-
The good thing in my life is that I have         bit higher than Fave.                          sent representatives to meet us in Jakarta.                    ever, was a success story.
a humble beginning. I grew up in an or-             So of the 134 hotels we have opened            We have signed a project for Aston but                         With the contracts we signed and the
phanage, but was fortunate to get scholar-       now, about 75 of them are Faves and Neos.      are also negotiating for the other brands                      projects and developments on hand,
ships to high school and Boston college.            We then came up with different brands       across the board. As a country the govern-                     there’s a good chance that in a few years
Then I got a good job and got promoted           (from budget to upper upscale) to suit the     ment is really interested to have as many                      we will manage up to 200 hotels.
almost every year. The same thing hap-           different needs of investors and guests.       brands there as possible to appeal to con-                        When I first came to Asia, managing 20
pened when I went to Hawaii to join a               As Aston was only one of the seven          sumers.                                                        or 30 hotels would have been a dream.
management company. I got promoted to            brands we were operating, we decided to           They want to have more employment                              Sitting here today after 20 years look-
bigger properties, bigger projects.              change the (holding) company’s name to         for the people. They believe especially with                   ing at the possibility that we will have 200
   So my entire adult working life for           Archipelago International in 2013.             the recent reduction in travel restrictions                    hotels, it is hard to believe it is happen-
more than 20 years was successful.                  (In Indonesia), we do not only operate      between America and Cuba that Ameri-                           ing.
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October 2017 TTG Asia 12

                                                                                                        TripAdvisor takes a look at the top inbound markets
Intelligence                                                                                                  and most-searched destinations for Thailand

Strongest waves of interest for Thai beaches
Beaches and islands prove to be Thai-              Krabi is followed by Kathu and Nai         centage increase in search traffic on Tri-   Top five Thai destinations with the big-
land’s most powerful attractions for in-        Yang in Phuket, at 37% and 31% respec-        pAdvisor, with a year-on-year increase of    gest increase in international traveller
ternational travellers, with Krabi entering     tively. Tied in fourth place with a 10%       30%, outpacing the overall international     interest:
TripAdvisor’s top five Thai destinations in     increase in searches is Chiang Mai in the     average of 4%. India and Indonesia fol-
terms of search traffic growth for the first    north and border city Hat Yai in the south.   lowed in second and third place, with          Krabi (41%)
time this year, after registering the highest      As for visitor origin markets, China       year-on-year search increases of 16% and
increase at 41%.                                continues to contribute the highest per-      12% respectively.                              Kathu (37%)

                                                                                                                                             Nai Yang (31%)

                                                                                                                                                       Chiang Mai (10%)

                                                                                                                                                       Hat Yai (10%)

                                                                                                                                           Note: Exact percentages rounded to zero
                                                                                                                                           decimal points; year-on-year growth com-
                                                                                                                                           paring July 2016 – June 2017 versus July
                                                                                                                                           2015 – June 2016

                                                                                                                                              The largest sources of search traffic for
                                                                                                                                           Thailand are China, the US, the UK, Aus-
                                                                                                                                           tralia and Russia. According to the Tour-
                                                                                                                                           ism Authority of Thailand (TAT), China
                                                                                                                                           and Russia were also two of the largest
                                                                                                                                           contributors to Thailand’s inbound tour-
                                                                                                                                           ism and inbound expenditure in 1H2017.

                                                                                                                                           Top five inbound countries by overall
                                                                                                                                           search traffic:

                                                                                                                                                      US

                                                                                                                                                               UK

                                                                                                                                                                        lia

                                                                                                                                                                                  ia
                                                                                                                                              a
                                                                                                                                             in

                                                                                                                                                                                ss
                                                          Junior Page

                                                                                                                                                                       tra
                                                                                                                                           Ch

                                                                                                                                                                              Ru
                                                                                                                                                                      s
                                                                                                                                                                   Au
                                                  4 column (173mm) x 280mm
                                                                                                                                           Note: based on total number of searches
                                                                                                                                           (unique sessions) for Thailand on TripAd-
                                                                                                                                           visor (excluding Thailand), July 2016 –
                                                                                                                                           June 2017

                                                                                                                                              Out of the top five inbound markets,
                                                                                                                                           Chinese travellers have the shortest plan-
                                                                                                                                           ning lead time of approximately 51 days
                                                                                                                                           and stay for nearly four nights. Russian
                                                                                                                                           travellers take around 60 days to plan a
                                                                                                                                           trip but stay the longest with approxi-
                                                                                                                                           mately 11 nights per stay.
                                                                                                                                              Travellers from the US, the UK and
                                                                                                                                           Australia stay for an average of six nights
                                                                                                                                           and take the longest to plan, with lead
                                                                                                                                           times of 108, 102 and 82 days respectively.
                                                                                                                                              On average, international travellers vis-
                                                                                                                                           iting Thailand start planning their trip 65
                                                                                                                                           days in advance, and stay for almost five
                                                                                                                                           nights.
                                                                                                                                              Among Chinese travellers searching
                                                                                                                                           Thailand, there was continued interest
                                                                                                                                           from second-tier cities of Hangzhou, Da-
                                                                                                                                           lian and Qingdao. The surge in interest
                                                                                                                                           comes amid increasing disposable income
                                                                                                                                           in these cities and improved flight con-
                                                                                                                                           nectivity to South-east Asia.

                                                                                                                                           Top five Chinese cities with biggest in-
                                                                                                                                           crease in traveller interest to Thailand:

                                                                                                                                             Beijing (102%)

                                                                                                                                             Hangzhou (91%)

                                                                                                                                             Dalian (81%)

                                                                                                                                             Qingdao (65%)

                                                                                                                                             Shanghai (61%)

                                                                                                                                           Note: exact percentages rounded to zero
                                                                                                                                           decimal points; year-on-year growth com-
                                                                                                                                           paring July 2016 – June 2017 versus July
                                                                                                                                           2015 – June 2016 with a minimum session
                                                                                                                                           of 50,000
October 2017 TTG Asia 13
                                                                                                                      Learn from the experts, take heed of technology
On the radar                                                                                                           currently shaping the travel landscape and pick
                                                                                                                           up new ideas on how to do business better
        INNOVATORS                       By Marissa Carruthers

Ticket to a smoother journey
WHO Helping travellers to make             With an aim to bring the local        TARGET The start-up recently
sense of Cambodia’s fragmented          market in line with international        secured US$100,000 invest-
transport sector – which ranges         standards, CamboTicket works with        ment and won a US$7,000
widely in price, service and quality    operators to train them in transfer-     grant after being crowned
– was the aim of CamboTicket’s          ring their operations online.            runner-up in the Mekong
founders Shivam Tripathi, based            “We wanted to do something            Business Initiative Tourism
in Cambodia, and Rahul Amand,           that would help the local tourism        programme.
based in Singapore.                     market. A lot of things are still man-       It plans to continue
   Founded in 2014, the dynamic         aged manually here,” said Tripathi.      reaching out to the local
duo went on to develop a back-end       “They still call bus companies and       market, as well as growing
system and delivered training to        record using pen and paper.”             beyond the transport sector
equip its more than 40 partners            To date, they have trained and        to bridge gaps in other ar-
with the skills to shift online, as     brought 25 per cent of Cambodian         eas of the travel and tourism
many local operators still manage       operators online.                        segment. This includes tours
operations manually.                                                             and experiences, which Tripathi
                                        WHY “When we launched, there             refers to as “fragmented and
WHAT CamboTicket sells tick-            was a big absence of information,”       unorganised”, and hotels.
ets for buses, private taxis and        said Tripathi. “What are the true            “The hotel market is saturated
vehicles, and ferries to more than      prices? What kind of buses are           but we still see opportunities,
80 destinations in Cambodia, and        used, are they punctual, are they        especially with budget accommo-                         CamboTicket’s Tripathi (third from right),
                                                                                                                                         together with team members
cross-border trips to and from          reliable, are they safe? We provide      dation,” said Tripathi.
Laos, Vietnam and Thailand.             this information with transparency.”         Additional plans include
   The platform provides infor-             CamboTicket brings all this in-      extending to Laos and Myanmar.            We wanted to do something that would
mation on the swathe of bus             formation together, with the option      “These are undeveloped coun-
companies, ferries and vehicles         for travellers to book online. A live    tries where technology levels are         help the local tourism market. A lot of
available in the country, presenting    chat option also allows users to ask     low,” he said. “We have done the          things are still managed manually (in
timetables, reliability, prices and     questions about their forthcoming        hard work in Cambodia, and are
safety ratings, as well as the option   trip. Today, the team of 10 engage       confident we can do the same in           Cambodia).
to book online in one portal.           in 17 to 18 hours of live chat daily.    other countries.”                         Shivam Tripathi, co-founder, CamboTicket

                                                                          (236mm) x 180mm
October 2017 TTG Asia 14
                                             Need ideas on what to buy? Take your pick
Shop                                           and load your cart with the array of new
                                                     products showcased on this page
       ACTIVITY
VESPA SIDECAR TOURS SCOOT INTO SINGAPORE
Sideways.sg was launched in Singapore earlier this year to offer Vespa sidecar tour service in the city.
   Supported by the Singapore Tourism Board and co-created with tour agency and hostel Betel Box, the sidecar
tours include 30-minute Selfie Spins as well as a half-day Chinatown & Rooftops programme.
   Selfie Spins offer a choice of districts to explore, including Chinatown, Joo Chiat and Katong, as well as
Kampong Glam and Haji Lane.
   Sideways is planning to add more half-day rides, namely the Little India Sunset Ride & Dine and the F1 Route
Sunset Ride & Dine, soon.

                                                                                                                          HOTELS

                                                                                                                  SOFITEL KUALA LUMPUR
                                                                                                                  DAMANSARA
                                                                                                                  Sofitel’s first property in Malaysia has 312
                                                                                                                  rooms, each furnished with the brand’s
                                                                                                                  signature MyBed, and in-room amenities
                                                                                                                  from Lanvin and Hermès. Facilities include
                                                                                                                  an outdoor pool, gym and a spa. There are
                                                                                                                  also five F&B options, as well as six meeting
                                                                                                                  rooms and a pillarless 1,100m2 ballroom.

                                                           Junior Page
                                                   4 column (173mm) x 280mm

                                                                                                                  YOTEL SINGAPORE
                                                                                                                  Asia’s first Yotel will open along Singapore’s
                                                                                                                  Orchard Road on October 1, 2017. There will
                                                                                                                  be 610 cabin-esque rooms, each featuring
                                                                                                                  the brand’s adjustable SmartBed, free Wi-Fi,
                                                                                                                  rainshowers, smart TVs. Amenities include a
                                                                                                                  Club Lounge, gym, 20m-long swimming pool
                                                                                                                  and Grains & Hops eatery.

                                                                                                                  THE MACAU ROOSEVELT
                                                                                                                  At the five-star Macau Roosevelt, the 368
                                                                                                                  guestrooms are inspired by Old Hollywood
                                                                                                                  and its glamour – think ebony-lacquered
                                                                                                                  burnt wood doors, polished bronze and Italian
                                                                                                                  marble. Facilities include a restaurant, fitness
                                                                                                                  centre and an open-air swimming pool
                                                                                                                  overlooking Macau’s Jockey Club.

                                                                                                                  MERCURE MALDIVES KOODDOO
                                                                                                                  Adjacent to Kooddoo domestic airport,
                                                                                                                  the property boasts 68 villas, 43 of which
                                                                                                                  are over-water and 25 are on the beach.
                                                                                                                  Facilities include a 50m-long lagoon-side
                                                                                                                  swimming pool, three F&B options, tennis
                                                                                                                  courts, fitness facilities, a Kids’ Club, as well
                                                                                                                  as a Dive & Water Sports Centre.
GTEF bridges                                                        PROGRAMME
continents, furthers
                                                                                                                      INNOVATION AND TECHNOLOGY
                                                                    HIGHLIGHTS                                            (SUPPORTED BY PATA)

public and private                                                       FACE TO FACE, MINISTERS
                                                                                                                    Driving Tourism Economic Growth
                                                                                                                    through Innovation and Technology

opportunities
                                                                        AND PRIVATE SECTOR CEOS                     The ever-growing number of tourists who
                                                                           (IN COLLABORATION                        travel within and across their regions and

in global travel
                                                                               WITH UNWTO)                          internationally shows the dynamics of the
                                                                                                                    tourism economy. In this session, industry
                                                                    Embracing Regional Collaboration                leaders will discuss how they drive economic
                                                                    for Collective Growth                           growth through innovation and/or technology.
Cross-border partnerships between China                             The global exchange of people and ideas         What are the economic or social trends that
and international tourism destinations continue                     continues to be driven by strong proponents     have the most impact on their businesses?
                                                                    of free trade and cross-border cooperation.     How do they capitalize on these trends to
to be built at the Global Tourism Economy                           China’s Belt and Road Initiative has been       create innovation and technology solutions
Forum this October 16-17 in Macao                                   a prominent champion of such policies,          to meet travelers’ wants and needs and

W
                                                                    creating a number of collaborative              enhance travelers’ pre-trip, on-the-ground
          ith China’s 122 million outbound travelers and            economic frameworks such as the “16+1”          and post-trip experiences? Are they
          138 million inbound arrivals in 2016, tourism             with the Central and Eastern European           changing travel behaviors or are travelers
          has increasingly become an important area                 Countries. These frameworks will serve as       changing their business models?
of partnership between the mainland and global travel               the foundations of future regional alliances,
                                                                    of which cooperation in the travel economy
organizations. This increased global exchange has opened
                                                                    will become a prominent topic.                      REGIONAL COLLABORATION
doors to bi- and multilateral cooperation in travel, particularly
                                                                                                                           – CHINA PERSPECTIVE
among countries along the Belt and Road Initiative.                 In this session, international leaders             (IN PARTNERSHIP WITH CHINA
                                                                    from both the public and private sectors            DAILY & SPONSORED BY BNP
                                                                    will discuss how regional and inter-                 PARIBAS PRIVATE WEALTH
“We will continue to support the Belt and Road                      regional collaboration can create positive                MANAGEMENT)
Initiative and promote regional collaboration                       developments that expand beyond
                                                                    geographic regions. What constitutes the
to achieve strategic compatibility and                                                                              The Greater Bay Area – Visionary
                                                                    scope of cooperation for these partnerships
complementary advantages along the Belt                                                                             Collaboration in the Making
                                                                    in the travel economy? When it comes to
                                                                                                                    The latest statistics show that the Greater
and Road regions, and to attain cooperation,                        building a travel economy, what forms of
                                                                                                                    Bay Area – which takes in Guangdong
common development, interconnection and                             cross-border collaboration are most viable?
                                                                                                                    province with its 9 cities, Hong Kong and
                                                                    What formats of public-private partnership
interoperability around the world.”                                                                                 Macao – received a total of more than
                                                                    create the best long-term results? How can
                                                                                                                    400 million tourists and tourism revenue
Ms. Pansy Ho, Secretary-General and Vice Chairman of GTEF           governments create incentive for the private
                                                                                                                    of more than 1 trillion yuan ($153 billion)
                                                                    sector to promote sustainable growth? How
                                                                                                                    in 2016. Hong Kong and Macao remained
                                                                    can individual countries and markets benefit
                                                                                                                    the top destinations for mainland tourists,
For the Global Tourism Economy Forum’s partner countries,           from regional alliances?
                                                                                                                    comprising 58 percent of the 122 million
provinces and corporate attendees, the opportunities to                                                             outbound travelers. Together with the central
join in on the growing fruitfulness of cross-border tourism                                                         government’s plan for the development of a
collaboration are abundant. How better to facilitate Chinese             PRESENTATION OF UNWTO/                     city cluster in the Guangdong-Hong Kong-
tourism towards an unexplored region like the Central and                 GTERC JOINT RESEARCH                      Macao Greater Bay Area, led by Chinese
Eastern European Countries (CEECs) than to mingle and                           PROJECT                             Premier Li Keqiang, the plan is expected
meet with the local travel operators and tourism ministers?                                                         to elevate regional development and
What better ways to explore mutually beneficial cooperation         Asia Tourism Trends 2017                        economic growth efficiency in the hub as a
with Chinese destinations like Guizhou Province than to             Asia and the Pacific, the world’s largest       whole, while giving full play to the distinctive
explore each locale’s unique features?                              region by population, continues to              strengths of the region.
                                                                    lead tourism development. In this joint
                                                                    World Tourism Organization and Global           In this session, government officials and
In the 2017 edition, GTEF will explore “Regional                    Tourism Economy Research Centre                 academics will share their outlook on the
Collaboration Towards a Better Future,” to broaden the              report, UNWTO representative will               Greater Bay Area, which covers 5 percent
positive and peaceful impact of international tourism               present tourism trends and outlook of           of the country’s population but created 13
collaboration. A balance of public and private sector               the region; showcase how technology             percent of the nation’s GDP in 2016. What
dynamics, the Forum combines the latest travel trends               is driving revolutionary changes in the         are the policies that drive this ambitious
with global issues such as tourism for sustainable growth.          tourism industry; highlight the importance      regional collaboration initiative? What role
                                                                    of regional collaboration, an integral          will the Greater Bay Area play in this region’s
                                                                    element of the celebration of the UN 2017       tourism economy and in the global tourism
       Join us in Macao this October to participate                 International Year of Sustainable Tourism       economic supply chain? How can the
                                                                    for Development; and identify UNWTO’s           Greater Bay Area’s tourism industry benefit
          in pivotal talks on the future of travel.
                                                                    key tourism agendas in the region.              from this regional collaboration?
   For more information, visit www.gte-forum.com.
October 2017 TTG Asia 16

Report Serviced residences

Millennial-centric stays
Recognising the strong market potential of millennials, serviced residence operators are rethinking
their strategies to target the new darling of the travel industry. Pamela Chow and Rachel AJ Lee
check out what new brands and plans operators have in store for Gen Y guests

                                                                                                                                             Clockwise from above: Parkroyal Serviced
                                                                                                                                             Suites Singapore; Oasia Residence, Singapore;
                                                                                                                                             Capri by Fraser, Brisbane; an impression of a lyf
                                                                                                                                             suite by The Ascott

                                                                                                                                                         generation of global nomads.
                                                                                                                                                            When asked if this was tar-
                                                                                                                                                         geted at millennials, Dean
                                                                                                                                                         Schreiber, managing director,
                                                                                                                                                         Oakwood Asia Pacific, stressed:
                                                                                                                                                         “The Oakwood Studios prod-
The Ascott                                                                                                                                               uct is designed for travellers
The Ascott clearly has its eyes on breath-                                                                                                               with a millennial mindset, not
ing new life into the serviced residence                                                                                                                 just people of a specific age
sector with the launch of lyf in November                                                                                                                group.”
2016, a brand that is “designed for and                                                                                                                     On how it differs from tra-
managed by millennials” with its co-living                                                                                                               ditional serviced apartments,
and co-working ethos.                                                                                                                                    Schreiber pointed out that the
   “The millennial traveller segment al-                                                                                                                 company wanted to “inject
ready (makes) up a quarter of Ascott’s                                                                                                                   fun into the equation” through
global customer base and (is) poised to                                                                                                                  quirky furnishings, curated art
further expand,” said Lee Chee Koon, As-                                                                                                                 installations, adaptable spaces,
cott’s CEO, citing the reason driving the                                                                                                                and even an area for guests to
Singapore-based serviced residence op-                                                                                                                   concoct their own beverage
erator to devote a brand to this growing                                                                                                                 from a range of Monogram
market force.                                                                                                                                            teas.
   Singapore will soon have two lyf prop-                                                                                                                   Another example can be seen
erties: lyf Funan Singapore (opening                                                                                                                     through its first-of-its-kind col-
in 2020) and lyf Farrer Park Singapore                                                                                                                   laboration with Lumas Gallery
(opening in 2021 with 240 units).                                                                                                                        to feature a curated selection of
   The former – to be developed as the                                                                                                                   art photography at Oakwood
flagship of the co-living, millennial-tar-                                                                                                               Studios Singapore. Should a
geted concept – will be located in the up-                                                                                                               guest like a particular piece,
coming Funan integrated development as                                                                                                                   they can buy it via the mobile
a nine-storey residence offering between                                                      screen panels and integrated whiteboard-       app on the Samsung tablet provided in
279 and 412 rooms. It will be developed                                                       projector features.                            every apartment, and have it delivered
for an estimated S$80 million (US$59.6        lers, representing more than 23 per cent           To cater to millennials’ preference for     anywhere in the world.
million).                                     of over one billion international travel-       localised experiences, Capri by Fraser has        Schreiber elaborated: “The Oakwood
   In the pipeline is another lyf property    lers. Millennials are currently spending an     dedicated teams to organise customised         Studios Singapore app is the first such ap-
in downtown Singapore, Mindy Teo, vice        average of US$200 billion yearly, and this      activities for guests to experience the city   plication by a serviced apartment in Sin-
president of brand & marketing and digi-      is set to increase as they enter their prime    like a local.                                  gapore. Initially available to guests only
tal innovation for Ascott, told TTG Asia.     working and spending years.”                       Currently, there are seven Capri by         via the in-room tablet, it was launched in
                                                  Capri by Fraser is a design-led residence   Fraser properties in seven cities – Bris-      June on mobile app stores so that guests
                                              that features a strong adoption of technol-     bane, Frankfurt, Berlin, Barcelona, Sin-       can easily download the application prior
Frasers Hospitality                           ogy with e-concierge and e-print facilities,    gapore, Kuala Lumpur and Ho Chi Minh           to arrival and check in at the property.”
Frasers Hospitality launched the Capri by     plus complimentary high-speed Wi-Fi to          City. The brand will soon open in Shenz-          Through this app, Oakwood focuses
Fraser brand in 2012 to cater to the evolv-   cater to this tech-savvy segment.               hen, Penang and Gurgaon, expanding the         on “curated experiences”, as guests can
ing needs of millennial travellers and meet       Unique to the property is the Spin &        brand’s portfolio to 4,000 units across 19     make pre-arrival special requests, whether
their expectations of a place to stay that    Play facility, where its 24-hour launderette    properties by 2021.                            they require a stocked fridge or even loan
combines good value, seamless connec-         is fitted with the latest games consoles, and                                                  a Steinway Gallery Singapore piano and
tivity and an authentic travel experience.    other recreational amenities that encour-                                                      have it placed in their apartment.
   Choe Peng Sum, Frasers Hospitality’s       age interaction and socialising.                Oakwood                                           In the near future, Schreiber hopes to
CEO, commented: “We are targeting mil-            Meeting and conference facilities are       Oakwood Asia Pacific’s first property un-      bring the Oakwood Studio brands to oth-
lennials as they constitute an influential    also equipped with the latest audio-visual      der the Oakwood Studios brand debuted          er key gateway cities such as Jakarta, Bang-
and fast-growing segment among travel-        capabilities, such as interactive touch-        Singapore in end-2016 to cater to a new        kok, Beijing, Shanghai, Tokyo and Sydney.
LUXURY LIVING IN THE
HEART OF THE CITY
Blending urban style with nature-inspired elements,
Oakwood Premier OUE Singapore’s serviced apartments
provide sophisticated travelers a high-quality living
environment, tailored with all the luxuries of a hotel.

6 Shenton Way, OUE Downtown 1, Singapore 068809
T: +65-6812 6000 | F: +65-6812 6059 | E: general.opsg@oakwoodasia.com
OakwoodAsia.com | @OakwoodPremierOUESingapore
AUSTRALIA | CHINA | INDIA | INDONESIA | JAPAN | MALAYSIA | SINGAPORE | SOUTH KOREA | THAILAND | VIETNAM
Report Serviced residences
                                                                                                   Located in the West Coast of Singapore,      lennial traveller,” explained Tan.
                                                                                                the property houses recreational ameni-            He also shared that travellers, especially
                                                                                                ties such as a fitness centre, tennis court     millennials, are going for shorter leases
                                                                                                and swimming pool, in addition to shuttle       during their business trips. Pan Pacific has
                                                                                                services to major business districts, plus      thus created packages such as Stay 4, Pay 3
                                                                                                walking and attraction guides for travel-       at Pan Pacific Serviced Suites Beach Road
                                                                                                lers to explore their surroundings.             and Stay 7, Pay 6 at Pan Pacific Serviced
                                                                                                                                                Suites Orchard to appeal to this segment.
                                                                                                Pan Pacific Hotels Group
                                                                                                Pan Pacific Hotels Group (PPHG) is keen         Lanson Place
                                                                                                to attract the youth segment of long-term       Lanson Place is currently in the midst of
                                                                                                guests, noting the rise of bleisure especial-   refining its current business models, lay-
                                                                                                ly among millennial guests.                     outs, and design and marketing to capture
                                                                                                   “A 2016 report by GBTA showed that           more of the millennial segment.
                                                                                                                           four in 10 mil-         Marc Hediger, CEO of Lanson Place
                                                                                                                           lennial travellers   Hospitality Management, revealed: “Up-
                                                                                                                           (have) extended      coming projects will integrate technologi-
                                                                                                                           at least one busi-   cal, entertainment and design elements
                                                                                                                           ness trip for lei-   that respond to the needs of the millen-
                                                                                                                           sure travel,” said   nials, who are projected to be the largest
From left: Oakwood Premier OUE Singapore; Lanson Place,                                                                    Richard       Tan,   spending travel demographic by 2020.”
One Sunland Shanghai                                                                                                       vice president,         For instance, smart technology is one
                                                                                                                           serviced suites,     of the key attributes the Hong Kong-based
                                                                                                                           PPHG.                group is focusing on, having upgraded the
Far East Serviced Residences                      lennial business                                                            The        Sin-   Handy smartphone feature in Lanson
Far East Hospitality is keeping a close           travellers to en-                                                        gapore-based         Place Hotel, Hong Kong.
eye on the millennial segment in its de-          gage in fun activi-                                                      group has com-          “Moving forward, we strive to enhance
velopment of serviced residences, Arthur          ties throughout                                                          bined this trend     technology in our projects, such as of-
Kiong, CEO of Far East Hospitality, told          their     business                                                       with the millen-     fering tech-driven interfaces controlled
TTG Asia.                                         trips, and provide them with opportuni-                                  nial’s    reliance   by mobile phone or table apps from the
   He observed that millennials are “more         ties for wellness too.”                       on digital media with the Parkroyal Picks       room,” he added.
inclined to blend work and leisure during            Far East Hospitality’s first Oasia Resi-   app, which offers more than 1,000 curated          Aside from technology advancements,
work trips” – and services such as Wi-Fi          dence – launched in October last year – is    guides in cities where Parkroyal properties     Lanson Place aims to maximise the com-
or a business centre “will no longer suffice      hence geared towards a new generation of      are present.                                    munal and social spaces for networking,
today”.                                           guests with “an integrated work-live-play        “This adds greater depth to Parkroyal’s      and enhance health and wellness facili-
   He noted: “It is important that serviced       environment for millennial business trav-     ‘local connection’ brand positioning and        ties such as a sky yoga garden or outdoor
residences provide options that allow mil-        ellers on a longer stay”.                     enhances our brand’s appeal to the mil-         plunge pool in its properties.

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October 2017 TTG Asia 19

TRIED AND TESTED
Fraser Place
Setiabudi Jakarta
In a city where serviced residences are now taking off,
this year-old property impresses Mimi Hudoyo with
its landscaped environs and well-kitted amenities                                          ing the fasting month).                        No.of residences 151
                                                                                              Although there were less than 10 guests     Rates From US$125
LOCATION The serviced residence is           kitchen with a built-in electric stove, mi-   having meals that morning, the lavish sa-      Contact details
located on Jalan Karbela Selatan, in the     crowave oven, double-door refrigerator        hur spread – just like any breakfast buffet    Tel: (62-21) 3002-0888
heart of Jakarta’s Kuningan CBD area.        and dishwasher. Other equipment in-           – way exceeded my expectations as as I         Website: setiabudi-jakarta.frasers
It also lies within walking distance from    cludes a home entertainment system,           was prepared to choose from a set menu.        hospitality.com
Setiabudi One, a building housing a wide     washer and dryer, and a storage room.
array of dining and leisure options.            The equipment and furnishings are el-      FACILITIES Although the property is
                                             egant in design and arranged to minimise      located on a busy street, I did not feel the   worries aside as this serviced residence has
ROOM The 31-storey Fraser Place Seti-        space that the 108m2 apartment remains        throng when I strolled in the garden. The      a children’s playroom and games room to
abudi has 151 serviced residences, offer-    expansive and comfortable for long-stay-      tropical garden outside the restaurant is      keep the little ones busy.
ing one-, two- and three-bedroom apart-      ing guests.                                   lined with high plants, separating it from        As well, there’s a small meeting room
ments.                                                                                     the crowded environs while offering a feel     with a capacity up to 80 people.
   My two-bedroom Executive Apartment        F&B Jardino, the all-day dining venue and     of tranquillity and privacy.
on the 19th floor comes with a view of the   bar at the lobby level, serves Asian and         The jogging track, basketball court and     SERVICE My check-in process was a
landscaped swimming pool and Jakarta’s       western cuisine. The contemporary bistro      the landscaped swimming pool and kids’         breeze and I was swiftly escorted to my
skyscrapers in the background.               also offers both indoor and alfresco seats    pools are also located in this area.           room. The restaurant staff was likewise re-
   The two bedrooms come with separate       facing the lush garden.                          Indoor facilities include a 24-hour gym,    sponsive and my à la carte order was quick.
living areas. The master bedroom is con-        As my stay coincided with the Rama-        steam and sauna, hot and cold Jacuzzi. I
nected to the main bathroom through a        dan period, the restaurant – which usu-       was so tempted to try these facilities, but    VERDICT A serviced residence that
large walk-in closet, whereas the second     ally opens at 06.00 for breakfast – began     unfortunately had to give them a miss as I     scores highly on its central location. It is
room has a separate bathroom.                services at 03.00 to provide Muslim guests    had to check out early for meetings.           ideal for business travellers and families,
   The apartment has a well-equipped         with an early sahur (pre-dawn meals dur-         Families with children can set their        whether for short or long stays.

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