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Positive start for AirAsia’s KK to China flights

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TTR WEEKLY
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KUALA LUMPUR, 18 July 2023: AirAsia is confident its newly-launched routes from Kota Kinabalu to Beijing and Macau will generate strong travel demand.

Both the Kota Kinabalu-Beijing and Kota Kinabalu-Macau flights are registering impressive load factors (percentage of seats filled) in the 90% territory.

AirAsia flight, AK1302 from Macau, greeted by water cannon salute upon landing at Kota Kinabalu International Airport on Sunday afternoon.

The maiden flight from Beijing on 2 July recorded 172 guests (92% full), and the inaugural flight from Macau on Sunday welcomed 169 guests (93% full). Both new services demonstrate significant consumer demand for these routes, and the airline expects it to continue to pick up both ways.

AirAsia’s mid-haul airline, AirAsia X (AAX), also recorded a remarkable load factor for its first flight from Chengdu (Tianfu) to Kuala Lumpur on 1 July 2023 with 376 passengers (99% full). AAX has increased flights from two to three weekly based on increased forward bookings.

Minister of Tourism, Culture and Environment Sabah, YB Datuk Christina Liew said: “The tourism scene is moving fast towards recovery, especially from China since its border reopening this year, and we are pleased to continue working with AirAsia to welcome more travellers into the state.

“The impressive load factors from AirAsia will not only foster stronger international relations and open up new opportunities for economic growth and cultural exchanges for Sabah as a whole but also bring us a step closer to achieving our aim of registering more than 2.2 million tourist arrivals this year.

“AirAsia’s daily flights from Beijing (Daxing) and four weekly flights from Macao will add to the current 100 international flights weekly into Sabah. This signifies that we are on the right course for a steady tourism recovery, and we welcome AirAsia’s commitment to increasing its flight frequencies and launching more flight services in support of the government’s relentless efforts to boost the tourism industry in Sabah.”

AirAsia Malaysia CEO Riad Asmat added: “We are proud to contribute to the tourism industry in Sabah continuously. Kota Kinabalu has always been an important hub for us, and our Sabah network growth plays a significant role in our recovery strategy. Currently, we operate 21 domestic and international routes to the state, with 300 flights weekly to and from Sabah, with the addition of daily flights to and from Beijing and four weekly flights to and from Macau.

“From 1 January to the first week of July this year, we have flown 2.1 million travellers to Sabah, and with these additional direct flight connections, the numbers will continue to increase, contributing significantly to the number of tourist arrivals, boosting the economy in the state.

“Moreover, with the strong demand for more China flights from this hub, we look forward to increasing the frequency and adding more routes. This would not have been possible without the support from our industry partners, especially Sabah Tourism Board, and we would like to take this opportunity to thank them for their support.”

AirAsia Malaysia (AK) currently flies 14 routes to China with over 104 flights weekly from Kuala Lumpur to Guilin, Quanzhou, Guangzhou, Kunming, Shenzhen, Nanning, Shantou and Macao; Kota Kinabalu to Guangzhou, Shenzhen, Wuhan, Beijing and Macao; and Johor Bahru to Guangzhou.

AirAsia X Malaysia (D7) currently flies four routes from Kuala Lumpur to China, with over 22 flights weekly to Chengdu (Tianfu), Beijing (Daxing), Shanghai and Hangzhou.

Chinese searching for Airbnb stays in Southeast Asia

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TTR WEEKLY
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BANGKOK, 18 July 2023: Latest data from Airbnb reveals that Airbnb hosts and guests are emerging as key drivers of economic activity in destinations and communities across Southeast Asia.

While the pandemic caused unprecedented disruption to global tourism, Airbnb is seeing a strong rebound in international and domestic guest arrivals across the region.

Chinese travellers are once more flocking to Southeast Asia, and so far, Thailand ranks as the most searched summer destination for China guests on Airbnb.

This summer, Chinese guests on Airbnb searching for early summer outbound stays (between 1 to 15 July) surged nearly sixfold compared to last year. About half of their searches for summer travel were for medium to long-term stays, spanning seven days or longer.

Chinese travellers are also increasingly looking to visit a wider variety of destinations, including Malaysia and the Philippines, which have recorded more than 10x increases in guest searches on Airbnb year-on-year.

Airbnb’s general manager for Southeast Asia, India, Hong Kong and Taiwan, Amanpreet Bajaj, opined that the challenges posed by mass tourism are clear, and across Southeast Asia, Airbnb is helping disperse guests, income and tourism benefits beyond the usual hotspots to new and trending destinations.

Airbnb guests stayed in over 100,000 different cities and towns globally last year, and since March 2020, more than 13,000 towns and cities globally have received their first Airbnb booking. Also, the communities where guests stayed increased by over 25% in 2022 compared with five years ago.

Bajaj added: “Distributed travel is affordable, boosts local economies and local jobs, and immerses people in these communities – whereas too much travel to popular places concentrates tourism economically and geographically.”

Asia Pacific hotel investment cools

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TTR WEEKLY
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SINGAPORE, 18 July 2023: Asia Pacific hotel investment volumes declined by 51% year-on-year in the first half of 2023 as macroeconomic challenges and the rising cost of debt influenced capital deployment.

Coming off a high base in 2022 and despite supportive market fundamentals, hotel investments moderated to USD3.13 billion in the first half versus USD6.41 billion during the same period last year, according to data and analysis by JLL.

Activity during the first half was most robust in Japan (USD1.54 billion) and Australia/New Zealand (USD820 million), which grew by 56% and 189% year-on-year, respectively. Gateway markets such as Singapore (USD30 million) dropped by 95% year-on-year as the number of transactions declined. However, with the recent sale of PARKROYAL on Kitchener Road for USD388 million, the outlook for the second half of the year will be stronger. China (USD300 million) also saw activity moderate by 76% year-on-year. Despite strong performance metrics, activity in the resort sector was muted as assets remained tightly held.

“We have observed the impact of a continued disconnect between the robust tourism demand and macroeconomic and geopolitical challenges in the first half of 2023, resulting in a gap between sellers’ pricing expectations and buyers’ access to capital,” says JLL Hotels & Hospitality Group chief executive officer, Asia Pacific Nihat Ercan.

“However, trading performance of the sector remains strong, and other fundamentals, including tourism arrivals and high occupancy rates, provide us with full confidence that the current investment environment is externally-based, rather than industry-specific.”

Factors, including the recent reopening of China in January 2023, which was earlier than expected, fuelled existing travel demand strength. As a result, there has been a considerable improvement in trading performance, particularly in the upscale and luxury segments, supported by an increase in average daily rates (ADR) across the region’s hotels. Furthermore, according to JLL analysis, the rise in tourism arrivals since January 2022 has been predominantly driven by leisure demand, leading to continued growth in performance among hotels in the region, with occupancy rates leading to the recovery as more tourists return. Despite facing economic, health, and geopolitical challenges, the United Nations World Travel Organization (UNWTO) foresees the recovery in travel to continue throughout 2023.

Considering factors including the macroeconomic environment, project interest cycle, and broad investor interest in strong-performing assets, JLL has revised its full-year 2023 forecast to USD8.7 billion, down 24% from its initial 2023 estimate. 

“Approaching 2024, we expect to see more specific opportunities emerge in some destinations across the Asia Pacific, where prices have been adjusted downwards, enabling interested parties to reconsider. Investors remain very committed to the Asia Pacific hospitality sector, and we see ongoing buyer appetite to invest in key markets and strategic assets, with the ability to deploy capital,” says Ercan.

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in various commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of USD20.9 billion and operations in over 80 countries worldwide, our more than 103,000 employees bring the power of a global platform combined with local expertise. For further information, visit

Oceania schedules 2024 Med sailings

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TTR WEEKLY
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SINGAPORE, 17 July 2023: Oceania Cruises schedules Mediterranean sailings in 2024 with credits allowing guests to enjoy free shore excursions in cultural capitals and lesser-known gems. 

Sailing from cities such as Rome, Barcelona, Lisbon, Athens and London, the crafted voyages aboard Marina, Riviera, Sirena and Vista range from seven days to a 59-day Grand Voyage from Miami to Rome. 

Mid to mini cruises: less than three weeks at sea

Oceania Cruises offer a free shore excursion credit valued up to USD1,600 and a free beverage package for all guests for all new reservations for sailings departing 1 October  2023 or later. 

Ionian & Adriatic Seas: 10 days from Valletta to Venice (Trieste) aboard Vista, overnighting in Istanbul, and visiting Ephesus, Mykonos, Athens, Dubrovnik, Pula/Rovinj. Departs 21 April  2024.

Classical Mediterranean: 14 days from Barcelona to Rome aboard Marina, visiting Valencia, Palma de Mallorca, La Goulette, Valletta, Syracuse, Argostoli, Santorini, Athens, Izmir, Messina and Sorrento. Departs 18 May 2024. 

Mediterranean Fascination: 19-days from Jerusalem to Rome aboard Riviera, overnighting in Jerusalem (Haifa) and visiting Jerusalem (Ashdod), Limassol, Rhodes, Santorini, Taormina, Naples/Pompeii, Rome, Florence/Pisa/Tuscany, Saint-Tropez, Barcelona, Monte Carlo, Propriano, Cagliari, Palermo and Amalfi/Positano. Departs 29 May 2024.

Aegean Icons: 11 days from Jerusalem to Athens aboard Vista, overnighting in Jerusalem (Haifa) and visiting Jerusalem (Ashdod), Paphos, Alanya, Marmaris, Patmos, Ephesus, Volos, Thessaloniki, Mykonos. Departs 1 June  2024.

Greco-Roman Gateway: 10 days from Rome to Istanbul aboard Riviera, overnighting in Istanbul and visiting Sorrento/Capri, Catania, Valletta, Taranto, Katakolon, Corfu, and Izmir. Departs 17 June 2024.

Picturesque Rivieras: seven days from Monte Carlo to Barcelona aboard Riviera, visiting Florence/Pisa/Tuscany, Rome, Ajaccio, Provence, Port-Vendres and Palma de Mallorca. Departs 4 September 2024.

Timeless Turkey & Greece: 17 days from Istanbul to Venice (Trieste) aboard Riviera, overnighting in Istanbul, and visiting Kavala/Philippi, Ephesus, Rhodes, Alanya, Bodrum, Santorini, Athens, Mykonos, Izmir, Bari, Kotor, Dubrovnik, Pula/Rovinj. Departs 8 October  2024.

Dusit Thani Maldives opens seaplane lounge

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TTR WEEKLY
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MUDHDHOO ISLAND, Baa Atoll, 17 July 2023: Dusit Thani Maldives, a luxury Thai-inspired resort on Mudhdhoo Island in Baa Atoll, has elevated its arrival experience by opening an exclusive seaplane lounge at the Trans Maldivian Airways (TMA) terminal at Velana International Airport in Malé. 

Designed to deliver unmatched comfort to guests as they await their connecting flight to the island, the air-conditioned lounge is tastefully furnished with luxurious seating spaces, floor-to-ceiling windows, and elegant, modern decor embodying Maldivian serenity.

In line with Dusit Thani Maldives’ dedication to delivering unparalleled experiences, the seaplane lounge offers exclusive refreshments, gourmet snacks, and a variety of beverages, plus complimentary high-speed Wi-Fi, electronic device charging stations, and a dedicated children’s play area to ensure a relaxed atmosphere for families and couples alike.

Dusit Thani Maldives’ collaboration with TMA, the world’s largest seaplane operator, ensures guests can enjoy prompt and smooth transfers once they touch down in the Maldives. Resort-assigned airport representatives are present to assist with luggage and navigate guests through the transfer process, so they can focus on enjoying the travel experience. 

“Our complimentary Dusit Thani Maldives seaplane lounge has been meticulously crafted to provide an extraordinary experience right from the moment our guests step foot in the Maldives, and we are thrilled to present it as part of our unique offerings,” said Dusit Thani Maldives general manager Reinhold Johann. “Aligned with our unwavering commitment to providing top-tier service, we hope to curate an unforgettable journey for each guest, leaving them with cherished memories that will last a lifetime.”

The seaplane lounge marks the latest addition to Dusit Thani Maldives’ endeavours to elevate its guest experience. With its deluxe villas, world-class overwater dining, and spa treatment rooms nestled amidst palm trees, the resort continually raises the bar for luxury travel in the Maldives.

For further information or reservations, please visit https://www.dusit.com/dusitthani-maldives/ or Tel: +960 660 8888.

Sarawak shares responsible tourism message

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TTR WEEKLY
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KUALA LUMPUR, 17 July 2023: More than 150 local and regional media personalities were treated to Sarawak Culture, Adventure, Natural beauty, gastronomic delicacies and a taste of Sarawak‘s colourful and multi-ethnic festivals. 

Sarawak Tourism Board (STB) hosted an enchanting showcase of Sarawak in every aspect – from its beautiful landscapes to rich and diverse cultures and heritage. The lush Borneo rainforest setting and vibrant elements created an immersive ambience, allowing guests to connect with the natural beauty of Sarawak – all depicted through immersive skits by talented performers.

The evening started with a special rendition of ‘Hijau’ by Zamil Idris, a song that conveyed a strong sustainability message – a narrative strongly advocated by STB. Sarawak stresses the importance of Responsible Tourism to create awareness of the significance of Planetary Health through Responsible tourism practices.

Upon arrival, attendees were warmly greeted with a traditional Sarawakian welcome, showcasing the warm hospitality for which Sarawak is well-known. The ambience exuded a sense of authenticity, reflecting Sarawak’s commitment to preserving its rich cultural traditions and its million-year-old rainforest.

Sarawak Tourism Board chief executive officer Puan Sharzede Datu Salleh Askor said in her welcome message: “Sarawak is truly blessed with different landscapes, national parks, and UNESCO sites like the Gunong Mulu National Park. However, we must ensure we do not spoil our natural beauty and resources. This is our promise and pledge towards Responsible Tourism to ensure the preservation of Sarawak as a beautiful destination to live in and visit.”

She added, “Advocating ‘Planetary Health’ through ‘Responsible Practices’, among our people and to our visitors, Sarawak invites everyone to play a role in ensuring that the space they occupy remains clean after they leave. Attention should be given to protecting and enhancing environmental and social sustainability within the entire ecosystem so that our Land thrives and remains unspoilt for generations to come.”

In appreciation of the media’s contribution to telling the Sarawak story, STB surprised the audience with Yours Truly Sarawak Awards for best stories and coverage for broadcast, print, and online featured since January. From the vast submissions across various media platforms, the winners were:

Broadcast – Aksi Nyata Bantu Merawat Bumi di RWMF 2023 Sarawak by KompasTV Pontianak;

Print Media – Journeying into the Melanau Kitchen by Intan Maizura Ahmad Kamal, from New Straits Times;

Online Media – Kuching: A Peek into Sarawak’s Heritage by Farid Wahab from Leisurely Leisure.

For more information on Sarawak, visit www.sarawaktourism.com.

HAL bookings break record

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TTR WEEKLY
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SINGAPORE, 17 July 2023: Holland America Line bookings on 11 July were higher than any day in the brand’s 150-year history. Booking revenues also broke the line’s single-day record. 

Photo credit: Holland America Line

Most sailings booked on 11 July were for 2024 and 2025, showing that cruisers are planning and eager to travel. The bookings show significant interest in marquee locations for the cruise line, including Alaska, Europe and the Caribbean, and a lift in sales for its new, longer Legendary Voyages. Reservations included destinations worldwide, including Australia, South America, the South Pacific and Asia.  

Holland America Line is a leader in Alaska with the most Glacier Bay visits in the cruise industry. Through Alaska Up Close, guests are immersed in the local culture with authentic onboard programming, cruise activities and award-winning shore excursions.

In addition to seven-day cruises throughout the Caribbean, Holland America Line offers a differentiated experience with longer sailings, allowing one to visit more islands on one itinerary.

Upcoming Europe seasons offer diverse cruises stretching from trending locales like Greenland and Iceland to Greece and Turkey. Itineraries range from weeklong getaways to longer voyages that extend into multiple regions. With two Pinnacle Class ships homeporting in Rotterdam, the Netherlands, in 2024, guests are booking cruises to Northern Europe and the UK.

IATA urges Sri Lanka to adopt aviation blueprint

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TTR WEEKLY
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SINGAPORE, 17 July 2023: The International Air Transport Association (IATA) urges Sri Lanka to develop an aviation blueprint to generate greater economic growth and prosperity through having a stronger aviation industry.

“Aviation connectivity can play a much bigger role in Sri Lanka’s economic development and social advancement. But this will not happen by chance. Government support will be critical to growing a strong airline sector and developing Colombo as an aviation hub. We urge the government and all industry stakeholders to collaborate on developing an aviation blueprint to strengthen the aviation industry’s competitiveness and bring greater prosperity to Sri Lanka. And IATA stands ready to support through our expertise and sharing of industry best practices,” said IATA’s regional vice president for Asia Pacific, Philip Goh.

Photo credit: Bandaranaike International Airport. Passenger traffic is swiftly recovering post-Covid, but Sri Lanka’s aviation needs a blueprint.

Aviation has a role to play 

IATA noted that aviation has a strategic role to play in 15 of the 17 UN Sustainable Development Goals. Trade and tourism rely on aviation, and this helps to create jobs, alleviate poverty and generate prosperity. In a 2018 IATA study, Sri Lanka’s aviation sector supported 700,000 jobs and contributed USD8 billion to the GDP. This has the potential to increase to over 1 million jobs contributing nearly USD30 billion to the GDP by 2038.

In his keynote remarks at Aviation Day Sri Lanka, organised by IATA and the Civil Aviation Authority of Sri Lanka (CAASL), Goh suggested three areas to consider in the aviation blueprint: facilitating sustainable growth, safety, and sustainability.

Facilitating Sustainable Growth: “Sri Lanka’s aviation blueprint needs to facilitate the industry’s sustainable growth, and having an updated airport masterplan is the first step. I urge the government to engage in a consultative approach involving airlines to ensure that industry input is factored in,” said Goh,

Goh urged Sri Lanka to digitise processes for passenger and cargo facilitation. “Many of the country’s passenger and cargo processes are paper-based. As traffic grows, digitisation will be key to addressing capacity constraints, increasing efficiency and improving the travel experience. IATA’s One ID and One Record initiatives can help support this,” said Goh.

Goh also highlighted the need to keep costs low, particularly jet fuel. Airlines pay more for jet fuel in Sri Lanka than other major airports in Asia. He recognised much has been done in recent months to lower the cost of jet fuel. He encouraged the government to review and consider limiting or capping the amount CEYPETCO can mark up for supplying fuel at the airport.

Safety: “Sri Lanka’s aviation sector needs to grow sustainably safely, and IATA is doing our part to support the country’s efforts. Utilising the International Airlines Training Fund, IATA will support the aviation industry in Sri Lanka by conducting safety-related training in August for CAASL and Sri Lankan Airlines,” said Goh.

Goh encouraged the government to explore how the IATA Operational Safety Audit (IOSA) and IATA Safety Audit for Ground Operations (ISAGO) can contribute to greater aviation safety in Sri Lanka.

Sustainability: “I am delighted that net zero carbon from aviation by 2050 is one of the stated policy goals of Sri Lanka’s sustainable aviation environment policy, including the need to ensure the availability of sustainable aviation fuels (SAF) in the country,” said Goh. SAF is expected to abate more than 60% of aviation carbon emissions by 2050.

Goh called on the government to adopt a comprehensive consultation process involving airlines and other aviation stakeholders as the government develops sustainability policies.

CX: A day in June hits passenger peak

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TTR WEEKLY
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HONG KONG, 17 July 2023: Cathay Pacific reached a new milestone for passengers carried in a single day since the pandemic as it continues to make good progress in rebuilding connectivity at the Hong Kong international aviation hub, the airline reported in its traffic figures for June 2023

Cathay Pacific carried 1,548,571 passengers last month, an increase of 931.9% compared with June 2022. The month’s revenue passenger kilometres (RPKs) increased 527.9% yearly. Passenger load factor increased by 20.7 percentage points to 87.7%, while capacity, measured in available seat kilometres (ASKs), increased by 379.6% year on year. In the first six months of 2023, the number of passengers carried increased by 2,230% against a 1,111% increase in capacity and a 1,685% increase in RPKs, compared with the same period for 2022.

The airline carried 111,210 tonnes of cargo last month, an increase of 6.4% compared with June 2022. The month’s cargo revenue tonne kilometres (RFTKs) increased 16.3% yearly. The cargo load factor decreased by 6.7 percentage points to 61.7%, while capacity, measured in available cargo tonne kilometres (AFTKs), increased by 29% yearly. In the first six months of 2023, the tonnage increased by 23.8% against a 117.6% increase in capacity and an 83% increase in RFTKs, compared to the same period for 2022.

Travel

Chief Customer and Commercial Officer Lavinia Lau said: “Our travel business continued to perform well in June. We reached a new milestone on 25 June when we surpassed the 60,000 mark for passengers carried in a single day for the first time since the pandemic. We continued to increase our capacity and frequencies to cater for the strong travel demand.

“Long-haul routes popular for student traffic, such as North America, the UK and Australasia, all saw good demand, with load factors on flights to Hong Kong averaging about 90%. As a result, the overall passenger load factor was very high in June at 87.7%.”

Outlook

“Turning to July and August, on the travel side, the outlook is encouraging. As we continue adding more flights, we are also reopening our lounges for our premium passengers. We reopened our Vancouver lounge in June, and our fifth and final lounge in Hong Kong, The Pier, First, will follow next week. Customers can also expect to experience our Taipei and San Francisco lounges again shortly.

“Although cargo demand is expected to remain flat throughout the summer, we are already preparing for demand to pick up in the latter part of the third quarter. The additional capacity will be operated on our key transpacific routes to cater for this.”

TG takes over more Thai Smile flights

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TTR WEEKLY
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BANGKOK, 17 July 2023: Thai Airways International is accelerating the restructuring of Thai Airways and Thai Smile’s business operations, which will see most of Thai Smile’s Asian routes returning to THAI by the end of the year.

Last week THAI’s leased Airbus A320 aircraft replaced THAI Smile on routes from Bangkok to Yangon, Myanmar and Dhaka in Bangladesh. 

Effective 16 July 2023, flight details are as follows: 

Roundtrip route Bangkok-Yangon is now served by a TG Airbus A320 aircraft twice daily (14 flights weekly), replacing Thai Smile aircraft used previously for a three-weekly service.

Bangkok – Yangon
Flight TG301 departs from Bangkok at 0935 and arrives in Yangon at 1035.
Flight TG303 departs from Bangkok at 1705 and arrives in Yangon at 180. 

Yangon – Bangkok  
Flight TG302 departs from Yangon at 1125 and arrives in Bangkok at 1325.
Flight TG304 departs from Yangon at 1900 and arrives in Bangkok at 2100. 

Round trip route Bangkok-Dhaka is served twice daily (14 weekly flights) using the Airbus A320 and Boeing B777-200ER for morning and late night departures from Bangkok. Previously Thai Smile served the route three times weekly.

Bangkok – Dhaka 
Flight TG321 departs from Bangkok at 1035 and arrives in Dhaka at 1210 (Boeing B777-200ER).
Flight TG339 departs from Bangkok at 2350 hours and arrives in Dhaka at 0125 (Airbus A320). 

Dhaka-Bangkok route
Flight TG340 departs Dhaka at 0245 and arrives in Bangkok at 0615 (Airbus A320).
Flight TG322 departs from Dhaka at 1335 and arrives in Bangkok at 1700 (Boeing B777-200ER). 

Thai Airways also operates flights to Delhi and Mumbai in India using Boeing 777-200ERs and Airbus A320s.

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