Northstar

www.travelweekly-asia.com 4 | ATF OFFICIAL SUPPORTING DAILIES cover story news highlight VIEWPOINTS Tedjo Iskandar from Destination Networking, based in Jakarta, said there is demand from corporate clients such as Carlson Wagonlit Travel and companies in the multi-level marketing, insurance and automotive industries that are organising big incentive groups for cruises. "Vietnam is currently experiencing high demand from big Indonesian groups. It is popular because for the same price as a trip to Thailand, groups can hit two cities – Ho Chi Minh and Hanoi," he added. Rudy Techrisna, managing director, Multi Holiday, based in Jakarta, said there is a big demand for golfing trips by groups, with Jakarta and Surabaya being the popular cities. "The Raja Ampat islands is also seeing demand from small groups looking for a luxury experience. The Middle East is another market looking for luxury venues, spas and wellness programmes, mainly in Bali," he added. Cambodia is also a big outbound market for them. "Angkor Wat and the golf courses are popular with my groups. It is a very attractive destination with affordable accommodation and food options." sites, and "wonders of the world" provide the magic dust that attracts global attention. The timing is ideal for the region to receive a shot in the arm in tourism performance. ASEAN celebrates its 50th anniversary, which heralds a period of attractive marketing promotions and initiatives. Devinder Ohri, president, ASEAN Tourism Association; president, National Association of Travel Agents Singapore, said ASEAN naturally lends itself for successful incentive groups to be handled here, because the formula calls for a combination of a city and a resort. "All companies ideally want to have a gala, and then proceed to let their hair down at the beach – something which all of our ASEAN nations can provide. It's even possible to do this across nations, such as flying to Philippines first, then Thailand. With huge connectivity – Singapore Airlines has six flights per day to Bali for instance – shifting 400 people in one day between two countries is now easier than before," he adds. "Two of this year's WTTC Tourism for Tomorrow Awards finalists are from the region. Misool, Indonesia, is in the Environment category and STREETS International, Vietnam is in the People category. They are part of inspiring stories that work to preserve nature and empower local communities." – HELEN MARANO (PICTURED RIGHT), SENIOR VICE PRESIDENT, GOVERNMENT AFFAIRS, WORLD TRAVEL & TOURISM COUNCIL (WTTC) is ready in 10 years' time. Indonesia, on the other hand, is currently developing ports in Medan, Palemberg, Semarang and Bali that will enable large cruise ships accommodating a minimum of 2,000 passengers to berth. All eyes on the ball ASEAN's rich cultural traditions, icons and natural attractions, including UNESCO World Heritage Despite turbulence on the global geopolitical landscape in 2016, the coming year's outlook on ASEAN travel remains positive on the back of recent growth in regional markets. Speaking at the ASEAN Tourism Conference on Tuesday, Jesper Palmqvist, STR's area director, Asia Pacific, revealed hotel industry metrics for supply, demand and performance that offered cause for optimism for travel in the 10 ASEAN countries in 2017 and beyond. Most notable among the ASEAN member states was the resilience shown in Thailand, where tourism and the hotel industry have rebounded impressively after the political crisis of 2014, and the high-octane growth that is being sustained in Vietnam. Palmqvist prefaced these and other findings by referencing the uncertain backdrop of 2016, which saw geopolitical instability in the South China Sea, the banking crisis and economic slowdown in China, the Brexit referendum, fears over the Zika virus, demonetisation in India, as well as the shock election results of Donald Trump and the impact his Presidency will have. "2016 can be summarised in one word: uncertainty," he said. In spite of the events of the past year, travel and tourism in ASEAN has continued to grow, he added, with more people travelling within and to the region, and investment increasing. "(There is) growth in general in the 10 nations, and with that comes the need for more infrastructure and investment from government, NTOs and others," Palmqvist said. On Thailand, he revealed that revPAR has recovered to and, in fact, grown over and above 2013 pre- coup figures, and that ADR premium – the ability to raise rates and optimise yield in accordance to more saturated occupancy – ranged from eight to 20.5 percent. "Thailand has a history of being able to increase rates rapidly (in line with higher demand and room occupancy) and yield very well -- the way airlines have done for a long time," he said. Palmqvist also noted the "tremendous" success story of Vietnam, which has seen the second-best growth after Thailand, dating back to 2010, and a significant hotel pipeline that will see room inventory more than double in the next five years. In addition, he said falling occu- pancy in Singapore was felt most by upper midscale hotels last year, and demand should catch up with sup- ply in 2018 – one year later than STR had previously targeted. UNCERTAINTY, BUT 2016 NOT ALL BAD By Yong Shu Chiang Jesper Palmqvist, Area Director Asia Pacific, STR Continued from page 1.

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