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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PPS 1885/02/2017(025627) 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
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
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.
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.
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.
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.
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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. Half Page (Horizonal) 5column (236mm) x 180mm
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. Half Page (Horizonal) 5column (236mm) x 180mm
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