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Thailand feels sting
of adverse travel warnings
A spate of travel advisory warnings in response to safety concerns in
Thailand has resulted in a worrying drop in occupancy rates at Bangkok
hotels - with the forecast for March remaining grim.
Hotels with a high MICE component are especially worried. Royal Orchid
Sheraton Hotel & Towers managing director, Mr. Wayne Buckingham, said
February’s occupancy rate was down around 10 per cent on the year - but the
property’s yield had plummeted due to a major drop in MICE business. He said
the hotel had reported more than 10,000 room night cancellations on
confirmed MICE business in the first three months of the year.
Mr. Buckingham, also vice-president of Starwood Hotels Thailand, Vietnam and
Cambodia, said: “All our hotels in Indochina are doing well except Bangkok.
Hotels with a high MICE component, like Royal Orchid, are suffering more.”
Skal International councillor - Thailand and Chaophya Park Hotel & Resorts
general manager, Mr. Andrew Wood, said some hotels in Bangkok had reported
revenue was down around 15 per cent on the year. He said: “A number of
high-profile events have recently cancelled. One five-star hotel recently
reported losing a North American corporate incentive group worth Bt11
million (US$309,000) due to current travel advisories.”
So far, countries such as Australia, Canada, Britain and Japan have advised
their citizens to stay away from crowded places such as shopping malls and
stations. And the Security Bureau of Hong Kong has issued travel warnings to
residents travelling to Thailand for holiday or work, advising them to pay
attention to their personal safety amid the fear of terrorist attacks. (TTG)
Air Astana picks Bangkok
Kazakhstan’s national carrier, Air Astana, has announced its
intention to use Bangkok as a hub for the South-east Asia region.
The five-year-old carrier, which is a 51:49 joint venture between the Kazakhstan
government and British BAE System, began the twice-weekly services on the
Almaty-Bangkok route, using a Boeing 757-200 aircraft, in October last year. The
Thai capital is the airline’s third destination in Asia after Seoul
(twice-weekly flights) and Beijing (four-weekly flights), and its first
connection in South-east Asia.
Air Astana president, Mr. Peter Foster, said the airline intended to develop and
increase the Almaty-Bangkok service to three flights per week in October, and
eventually to a daily flight under the open-skies policy between Thailand and
Kazakhstan.
He said discussions were underway with Thai Airways International (THAI) for the
possibility of linking Air Astana’s passengers through Bangkok to other
South-east Asian countries using THAI’s network, and with Bangkok Airways on the
Mekong sub-region connectivity. Both airlines had expressed their interests, he
added.
According to Mr. Foster, Thailand is a very popular destination among the
Kazakhstanian nationals given that most of the airline’s passengers on the
Almaty-Bangkok services are inbound tourists from Kazakhstan. (TTG)
From no-frills carriers to no-frills hotels?
Kuala Lumpur, Malaysia (eTN) - Southeast Asian countries got
a new entrant in the hospitality industry when Tune Hotels made its debut with
the opening of its first 173-room no-frills flagship hotel in the Malaysian
capital of Kuala Lumpur on March 1.
Situated in Kuala Lumpur’s business area, the hotel brand is pricing its rooms
following the path its founders have taken with the no frills airline approach.
Price will range from US$3 - $20.
Founded by Tony Fernandes, who also founded three of the region’s newest
start-up no-frills carriers, it promises to charge only for what is used. “We
are not cannibalising the market, we are aiding its growth.”
“People are not traveling due to expensive hotel room rates. Consumers in ASEAN
are now web-savvy and look for good deals by buying direct,” he added.
“There is a gap in the ASEAN tourism product offering,” said Dennis Melka,
co-founder and director of Tune Hotels. “There has been an explosion in
value-based tourism in Malaysia and the ASEAN region.”
Tune Hotels is basing its marketing strategy on the ‘low cost carrier’s pricing
model of “a room unsold is cash lost.”
“We want to be the first to offer the market a low-cost, dynamic booking system
and a standardized product which will dominate the ASEAN ‘economy’ hotel
market.”
Added Melka, tourists prefer to spend their money on shopping, food and
attractions instead of paying for rooms that are used only as a resting place.”
Tune Hotels have done away with cupboards, expensive floorings and carpets as
well as other complementary items usually found in normal hotels, said Melka.
“Customers can buy towels or other basic amenities which are theirs to keep.
Guests want a clean room, strong shower, nice bed and a secure hotel.
Tune Hotels is looking at a market of 40 million travelers in the ASEAN region,
served in the future by about 200 low cost carriers in Asia.
This year, Tune Hotels will open hotels in Malaysia’s major cities Kota
Kinabalu, Penang, Kuching and Johor Baru, which all have connecting flights to
its AirAsia network.
It will also open its Bali hotel by early next year.
The return of Samui’s Coconut Festival
Mark Bode (TTG Asia)
After disappearing from Koh Samui’s events calendar for several years, the
Samui Coconut Festival is making a return this month to ramp up the island’s
competitiveness against rival destinations.
The festival, which will run from March 27 to 31 at Chaweng Lake, will
attempt to showcase the island’s way of life to tourists through a wide
array of entertainment.
This includes a play about Koh Samui’s history, a light-and-sound show as
well as jazz, rock and pop performers. An exhibition in honour of the king
of Thailand’s 80th birthday celebration and a food fair will also be staged.
The event, which is being organised by the Tourism Association of Samui, is
listed on the Tourism Authority of Thailand’s (TAT) events calendar.
Tourism Association of Samui president, Mr. Seni Puwasetthawon, said he
hoped the festival would attract between 3,000 and 4,000 foreign tourists.
“The festival was held before, about eight or 10 years ago, but we regard
this one as the first Samui Coconut Festival. We want to show tourists Koh
Samui’s culture - its way of life,” he said.
Mr. Seni said he hoped it would become an annual event. “Koh Samui needs an
event this like to bring in more tourists,” he said.
TAT Southern Office Region 5 assistant director, Mr. Ponlert Ooncharoen,
said Koh Samui needed more attractions in the face of fierce competition.
“In my opinion, Koh Samui will sell itself through its attractions and
natural way of life. The competition is not only coming from Thailand, but
from other countries as well. We need something to brighten up the island.
Activities such as the Coconut Festival will do that.”
Mr. Ponlert said he wanted the festival to grow over the coming years.
“That’s the goal of the Tourism Association of Samui and I agree. If we have
an interesting event, the resorts will benefit and the whole island will
benefit.”
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