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New air link between Jakarta and Kuching

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TTR WEEKLY
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KUCHING, 20 June 2023: Sarawak’s capital city welcomed guests on AirAsia’s maiden flight from Jakarta, Indonesia, that arrived at Kuching International Airport last Thursday.

Minister for Transport Sarawak, YB Dato’ Sri Lee Kim Shin, Deputy Minister for Tourism, Creative Industry and Performing Arts Sarawak, Datuk Sebastian Ting Chiew Yew and  Ministry of Tourism Indonesia regional marketing director, Raden Wisnu Sindhutrisno, welcomed guests on the inaugural flight QZ530 from Jakarta.

Caption (L-R) YB Senator Tuan Jaziri Alkaf Abdillah Suffian, Director Of International Relations, Malaysia – Indonesia Business Council, Bapak Captain Wuri Septiawan, Director Of Flight Operations, Indonesia Airasia, YBhg Datuk Wee Hong Seng, Mayor, Council (L-R) YB Senator Tuan Jaziri Alkaf Abdillah Suffian, Director Of International Relations, Malaysia – Indonesia Business Council, Bapak Captain Wuri Septiawan, Director Of Flight Operations, Indonesia Airasia, YBhg Datuk Wee Hong Seng, Mayor, Council of the City of Kuching South (MBKS) YB Datuk Sebastian Ting Chiew Yew, Deputy Minister For Tourism, Creative Industry & Performing Arts Sarawak, YB Dato’ Sri Lee Kim Shin Minister For Transport Sarawak, Bapak Raden Sigit Witjaksono, Consul General, Consulate General Of The Republic Of Indonesia (Kuching), &  Dato’ Thomas Tieng Mee Tung.

This new route, operated by Indonesia AirAsia, marks AirAsia’s fourth international route connecting Sarawak to ASEAN, following AirAsia Malaysia’s routes from Kuching, Miri and Sibu to Singapore launched last year. The ceremony was jointly organised by AirAsia, the Ministry of Transport Sarawak, Tourism Board and supported by Malaysia Airports.

Minister of Transport Sarawak YB Dato Sri Lee Kim Shin said: “I would like to commend the excellent groundwork done by AirAsia in collaboration with the Sarawak Tourism Board, the Ministry of Tourism and Creative Economy Indonesia and Jakarta Tourism Authority to prepare this route and to ensure that it is not only sought after by Sarawakians but also encourages Indonesians to visit Kuching and Sarawak.

“It is pertinent that all industry stakeholders take it as our joint responsibility to promote Sarawak in strategic markets like Indonesia and ensure the route is sustainable. Connection to Jakarta is a precursor to wider connectivity from Sarawak to other parts of Indonesia, especially with establishing the country’s new administrative capital Nusantara, in East Kalimantan.”

STB chief executive officer Sharzede Datu Salleh Askor added: “We are thrilled to welcome AirAsia Indonesia’s direct flight from Jakarta to Kuching, one week ahead of Sarawak’s iconic Rainforest World Music Festival 2023. This direct flight service not only makes travelling more accessible for both Sarawakians and Indonesians, but it also marks a significant step in strengthening the connectivity between these two destinations.”

AirAsia now operates 23 weekly international flights to Sarawak from Singapore and Jakarta and will increase frequencies in tandem with demand.

Flight schedule from Jakarta (CGK) to Kuching (KCH):

Mastercard: Business travel bounces back

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TTR WEEKLY
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SINGAPORE, 20 June 2023: With an uncertain economy providing some cross-market turbulence, mainland China’s reopening is expected to bolster growth globally with a concentrated impact in Asia Pacific, according to Mastercard Economics Institute estimates.

Released last week, the Mastercard Economics Institute’s Travel Industry Trends 2023 delivers key insights about the global state of travel, punctuated by shifting economic landscapes, persistent consumer demands, and a reopening of mainland China.

In the face of a changing economic landscape, post-pandemic preferences for experiences over things and a consistent demand for leisure travel shape the 2023 outlook.

With an uncertain economy providing some cross-market turbulence, mainland China’s reopening is expected to bolster growth globally with a concentrated impact in Asia Pacific, according to Mastercard Economics Institute estimates.

Key findings

Leisure and business travel are growing at the same pace. Driven by the long-awaited lifting of travel restrictions in Asia, global leisure travel remains robust, with flight bookings up roughly 31% in March 2023 compared to the same month in 2019.

In the second half of 2022 into early 2023, corporate flight bookings caught up to leisure flight bookings driven by regions with a strong return to office culture.

Global leisure and business travel are now growing at the same rate. Our insights show demand for in-person meetings, with the most significant growth in commercial travel and entertainment expenses being led by Asia Pacific and Europe, up 64% and 42%, respectively, between January-March 2023.

Mainland China’s reopening benefits global and Asia Pacific tourism. China’s reopening following tight Covid regulations comes at a time when it will likely have a positive impact on the experience economy as pent-up demand for travel is expected to drive strong tailwinds.

By March 2023, spending on experiences was notably 93% of where it was in 2019 despite minimal travel last year.6 Economies in the Asia Pacific region could be obvious beneficiaries of China’s opening, given their strong ties to international trade, tourism, and geographical proximity.

Based on Mastercard Economics Institute estimates, other countries expected to benefit include northern Europe – Germany and France – and Brazil, which could boost their exports to China as the economy recovers.

Travellers establish new corridors

As consumers enjoy higher incomes and return to some level of pre-pandemic comfort, they’re also starting to venture further from home to new locations. The US and Australia remain favourite destinations for travellers from the Asia Pacific region for spring and summer journeys.

Beginning in late 2022, visitors to Hong Kong SAR started to increase, with the destination edging into the top 10 list and soaring to #3 in February 2023. Luxury experiences like high-end accommodation and luxury travel in places like France and Italy will likely entice Chinese tourists from a zero-Covid environment to rejoin the experience economy.

Tourists continue to prioritise experiences

Potentially influenced by social media and entertainment, travellers land in lesser-known destinations searching for cultural experiences. As of March 2023, global spending on experiences was up 65%, while spending on things is up 12% compared to 2019.

Experience-oriented spending is surging in certain corridors where pandemic lockdowns have expired. Still, Chinese tourists who traditionally over-index on luxury retail compared to other tourists could boost goods spending across markets.

“In 2023, travel came roaring back in Asia as China reopened its borders and other markets eased the last of their pandemic-era travel restrictions,” said Mastercard Economics Institute chief economist for Asia David Mann.

“As people worldwide prioritise experiences over things, the strong travel demand is expected to last far beyond the initial ‘revenge travel’ bump. As we look ahead to the peak summer travel season, the big question is whether flight and accommodation supply can keep up with demand.”

You can view the full Travel Industry Trends 2023 report here. Other reports and insights from the Mastercard Economics Institute can be found here. 

Batik Air starts Chennai flights in August

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TTR WEEKLY
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MEDAN, Indonesia, 20 June 2023: Batik Air (Code ID) and a member of the Lion Air Group announced this week the launch of direct daily flights from North Sumatra’s Kualanamu International Airport (KNO) to Chennai International Airport (MAA) in India.

The inaugural flight will take place on 11 August 2023 using a Boeing 737-800.

A press statement issued on Monday said the airline said the new international route was part of Batik Air’s efforts to provide better travel options between Medan, Indonesia and Chennai, India. The daily flight will appeal to both leisure and business travellers.

Chennai is a city rich in India’s cultural and historical heritage, and tourists from Indonesia can visit historical sites, including temples, museums and cultural attractions such as India’s classical dance and music.

Direct flight access with daily flights will boost trade as Chennai is one of India’s most prominent business hubs. Kualanamu is one of the largest airports in North Sumatra, with an extensive flight network of flights to other cities in Indonesia.  

Batik Air’s launch of Kualanamu – Chennai direct flights also supports Indonesia’s government efforts to develop the tourism sector in Indonesia and increase the number of foreign tourists visiting the country, especially from India. Kualanamu is a convenient gateway to enter Indonesia to explore tourist destinations in North Sumatra and various other popular destinations in Indonesia.

Vietjet flies to Brisbane

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TTR WEEKLY
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HO CHI MINH CITY, 20 June 2023: Vietjet has celebrated its maiden flights between Ho Chi Minh City and Brisbane, making it the first-ever carrier to fly directly between Vietnam and Queensland.

The new service completes Vietjet’s network from Vietnam to the east coast of Australia, with eight weekly return flights now servicing Sydney, Melbourne, and Brisbane. Flights from Vietnam to Sydney and Melbourne will increase from September. 

Vietjet Chief Operating Officer Michael Hickey noted: “Vietjet’s direct flights between Ho Chi Minh City and Brisbane will ease the travel between the two localities, countries and across the region. Our crew and leaders warmly welcome our passengers on a comfortable, joyful journey with Vietjet.”

Operating on A330s with two return flights per week every Monday and Friday, Vietjet’s new service departs Ho Chi Minh City at 1005 and lands in Brisbane at 2110. The return flight take off from Brisbane at 2310 and lands in Ho Chi Minh City the next day at 0450 (All in local times).

Queensland Tourism Minister Stirling Hinchliffe welcomed the new service: “Vietjet’s inaugural Brisbane services coincide with Vietnam’s booming economy and surging demand among its citizens for world-class international holiday experiences. Queensland’s great holiday lifestyle, reunions with Queensland-based family and convenient direct flights from Ho Chi Minh City are set to make Brisbane a sought-after destination for Vietnamese travellers.”

To celebrate its launch, Vietjet cuts fares by 50% (*) for its SkyBoss and SkyBoss Business fares for bookings up to 30 June 2023. The travel period opens from 15 August to 20 December 2023.

To be eligible, passengers can use promo codes SKYBOSSALL50 (SkyBoss) or BUSINESS50 (SkyBoss Business) when purchasing tickets at www.vietjetair.com or the airline’s mobile app.

In addition to the 50% off deal on the route to Brisbane, Vietjet’s ongoing campaign, valid every Wednesday, Thursday and Friday, offers fares starting from just USD0 (**), applied for all international routes, including services between Vietnam and Australia.

In addition, Thai passengers can travel from Bangkok (Suvarnabhumi) to Australia with connecting flights from Bangkok (Suvarnabhumi) to Ho Chi Minh City and Hanoi.

(*) Terms and conditions apply

(**) Taxes and fees not included

Marriott reaches a China milestone

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TTR WEEKLY
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HONG KONG, 19 June 2023: Marriott International has announced the opening of its 500th hotel in Greater China – Rissai Valley, a Ritz-Carlton Reserve.

The company plans to bolster its strong position in Greater China, with 47 hotels due to open in China in 2023 – adding close to 13,000 guestrooms to the portfolio.

Rissai Valley, a Ritz-Carlton Reserve.

Situated in the southwest of China, Rissai Valley, a Ritz-Carlton Reserve, boasts 87 private villas within a nature reserve, offering immersive experiences that showcase the heritage, culture, and natural splendour of Jiuzhaigou, a UNESCO World Heritage Site and a World Biosphere Reserve.

“Reaching our 500th hotel in Greater China is a noteworthy accomplishment. It is a testament to the trust placed in Marriott by our owners, franchisees, and guests,” said Marriott International president Greater China Yibing Mao. “With nearly 190 hotels planned to open in the region in the next three years, we look forward to further growing our footprint in lockstep with our guests’ evolving needs and preferences in this robust market.”

Marriott has a diverse portfolio of 31 brands. Covering over 30 key leisure destinations with nearly 70 resort properties in the region, the company expects to strengthen its presence in leisure destinations with first-time entries and brand debuts in new markets across its well-established labels in the next few years, including Sheraton Hotels and Resorts, Marriott Hotels, Four Points by Sheraton, and Fairfield by Marriott.

Looking ahead, The Ritz-Carlton brand is expected to expand to include more destinations, such as openings in Suzhou and Wuhan in 2025. The St Regis brand also anticipates extending its iconic exquisite lifestyle, timeless tradition, and signature services to visitors and locals alike, including in Shenzhen in 2025, setting a new benchmark for luxury hospitality in the Silicon Valley of China.

Busan’s A-Z Guideline for Sustainable MICE

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TTR WEEKLY
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BUSAN, 19 June 2023: The sustainable management strategy for businesses, known as Environmental, Social, and Governance (ESG) management, is spreading throughout the MICE industry. Along with the infrastructure, costs, and service levels, the application of ESG is gaining prominence as a key consideration when selecting MICE destinations. As a result, international organizations such as the United Nations Environment Assembly and the European Union, as well as governments around the world, are providing guidelines for sustainable MICE events. In line with this trend, Busan is actively taking steps to implement and expand ESG practices in the MICE industry.

Moving Beyond Green to Sustainable MICE!

Busan MICE Sustainable Management Declaration.

Since 2020, Busan has been a leader in the implementation of environmental practices by aiming to reduce carbon emissions and enhance energy efficiency through its eco-friendly MICE campaigns. In 2022, Busan took a significant step towards sustainable management by announcing a joint ESG declaration with public and private entities, including the MICE industry. The goal of Busan’s sustainable MICE approach is to prepare environmentally-responsible events, while maximizing community participation and the overall impact. Fulfilling social responsibilities during MICE events and reporting the effectiveness of ESG at MICE events are also included in these objectives.

To achieve these goals, the Busan Tourism Organization (BTO) has developed the “Sustainable MICE Guidelines for Busan” that are tailored to the realities of the Busan MICE industry. These guidelines, which can be directly utilized by event organizers, PCOs, convention centers, hotels, and other relevant parties, have been distributed to those involved in the industry since the end of last year.

MICE Guidelines for Step-by-step Sustainability Assessments and Implementation

The sustainable MICE guidelines developed by Busan, which are the first of their kind in the region, are designed to assess and implement every stage of MICE events in a sustainable manner, from the preparation and planning to the organization and operations, as well as monitoring and reporting on the ESG performance. The guidelines provide detailed examples and recommendations to assist companies that may encounter challenges in establishing the ESG strategies and goals for events, as well as assistance in preparing operational manuals. Furthermore, they are presented in a checklist format, listing the key considerations for sustainability practices tailored to those involved in events, thereby enhancing their usability. In addition, the guidelines provide detailed guidance on incorporating ESG principles into event planning and different operational stages. This includes addressing aspects such as registration and entry procedures, integrating ESG into conference and exhibition programs, as well as planning for food, beverage and accommodation services.

Busan ESG management guidelines training.

The BTO has also conducted the “Training on ESG Management Guidelines for Busan” that is targeted industry professionals based on these guidelines. A range of initiatives is being promoted to expand ESG practices in the MICE industry, such as by organizing a relay of MOU signing ceremonies for ESG management practices with nine tourism and MICE organizations.

The implementation of the “Sustainable MICE Guidelines for Busan” is expected to further vitalize the planning and operation of sustainable MICE events in Busan. Through these efforts, Busan is aiming to evolve into a MICE-centric city that is in alignment with global trends.

Follow the link for more information: https://bto.or.kr

(SOURCE: Busan Tourism Organization)

Centara benefits greet Thai Vietjet passengers

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TTR WEEKLY
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BANGKOK, 19 June 2023: Centara Hotels & Resorts and Thai Vietjet have joined hands to launch a marketing partnership, offering special benefits to Thai Vietjet’s passengers and Centara’s customers throughout the year.

In line with the new marketing partnership, passengers of Thai Vietjet can benefit 19% discount on Flexible and The Place To Be room rates when logging in as CentaraThe1 members and booking through Centara’s website at www.centarahotelsresorts.com/vj.

The deal applies to participating Centara hotels & resorts in Thailand, UAE, Sri Lanka, Qatar, Oman, the Maldives, Japan and Vietnam. CentaraThe1 members can enjoy a special discount code of 20% off when booking domestic and international tickets with Thai Vietjet applied at https://th.vietjetair.com/

Centara also offers Thai Vietjet’s passengers additional special perks when staying at Centara Mirage Resort Mui Ne (Vietnam), including a complimentary hotel upgrade to the next upper category (subject to room availability upon check-in) and a 10% discount applied for spa treatments during their stays (for reservation in advance) when presenting Vietjet’s boarding pass upon check-in.

The partnership between Centara and the airline took to the skies with Thai Vietjet flight VZ110 from Bangkok (Suvarnabhumi) to Chiang Mai on 6 June 6, 2023, with a lucky draw activity for a special prize of a complimentary voucher from Centara for a two-night stay at Centara Mirage Resort Mui Ne, and two round-trip complimentary tickets from Thai Vietjet presented by Pinida Pettanagul, Corporate Director of Marketing & Creative Services of Centara Hotels & Resorts and Pinyot Pibulsonggram, Director of Commercial of Thai Vietjet.

“It is our great pleasure to announce our second partnership campaign with Thai Vietjet to offer their customers an opportunity to explore exciting destinations in Thailand, Vietnam, Japan, the Maldives, Sri Lanka, UAE, Qatar and Oman. As we see the international travel sector continuing to grow, with further collaboration between the two companies, we look forward to welcoming more and more guests to our hotels & resorts and ensuring Centara’s signature of Thai hospitality and family value service are at the heart of every stay,” said Centara Hotels & Resorts corporate director of marketing & creative services Pinida Pettanagul.

Centara’s customers can book Thai Vietjet’s air tickets and receive a 20% off discount by redeeming a special discount code until 20 December 2023, with the travel period also expiring on 20 December (excludes public holidays, and terms apply).

The special discount code is applicable to the entire Thai Vietjet’s domestic and international flight networks, including flights from Bangkok (Suvarnabhumi) to Chiang Mai, Chiang Rai, Phuket, Hat Yai, Krabi, Surat Thani, Khon Kaen, Udon Thani, Ubon Ratchathani, Fukuoka, Osaka, Taipei, Singapore, Ho Chi Minh City, Da Nang, Phu Quoc, and Phnom Penh.

For more information: www.centarahotelsresorts.com

India’s domestic passenger data recovers

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TTR WEEKLY
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DELHI, India, 19 June 2023: Passengers carried by India’s domestic airlines grew 36.10% from January to May 2023 and expanded 15.24% during May, a performance the Ministry of Civil Aviation described as impressive.

Reporting on the aviation sector’s recovery, the ministry quoted traffic data provided by domestic airlines reached an impressive milestone of 63,607,000 from January to May 2023. It represented a significant annual growth rate of 36.10% compared to January to May 2022. During that period in 2022, the passenger count reached 46,737,000.

The ministry also reported that passenger complaints decreased in May 2023 compared to May 2019. In May 2019, 746 passenger-related complaints were registered by scheduled domestic airlines compared with 556 passenger complaints in May 2023.

Commenting on the recovery data in the aviation industry, Union Minister of Civil Aviation and Steel, Shri Jyotiraditya M Scindia said:

“The collaborative efforts of all stakeholders have played a crucial role in propelling the growth of the aviation sector and establishing India as a prominent global aviation hub. The consistent expansion of the domestic airline industry and the birth of regional airlines are strengthening our economy, connecting people throughout the nation and ensuring last-mile connectivity through the UDAN Scheme.”

Penang to host 45th IAA World Congress

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TTR WEEKLY
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PENANG Malaysia, 19 June 2023: Penang has won the bid to host the next International Advertising Association (IAA) World Congress, making it the first time the prestigious event visits Southeast Asia.

The event will be Scheduled from 6 to 8 March 2024, jointly hosted by IAA Malaysia, Penang State EXCO Office for Tourism and Creative Economy (PETACE) and Penang Convention and Exhibition Bureau (PCEB).

Yeoh Soon Hin, the State Exco for Tourism and Creative Economy.

An official industry networking event hosted by PETACE and PCEB was held at the Amari Spice Hotel on Thursday, 15 June, to confirm the 45th IAA World Congress would convene in Penang.

In attendance was the Honorable Yeoh Soon Hin, the State Exco for Tourism and Creative Economy, who commented: “With our diverse multi-faceted multi-cultural heritage and culture, Malaysia is a destination that offers much for business event visitors. Penang is proud to host the 45th IAA World Congress 2024, for it will further cement the reputation of both Penang and

 Malaysia as Southeast Asia’s most advantageous, preferable and safe Business Event destination.”

The International Advertising Association was established in 1938 and is the only global association representing all marketing and marketing communications industry spheres.

Boeing: Air travel outpaces economic growth

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TTR WEEKLY
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LE BOURGET, France, 19 June 2023: With a resurgence in international traffic and domestic air travel back to pre-pandemic levels, Boeing projects global demand at 42,595 new commercial jets by 2042 worth an estimated USD8 trillion.

Boeing released its 2023 Commercial Market Outlook (CMO), the company’s forecast of 20-year demand for commercial aircraft and services, on the eve of the Paris Air Show from 19 to 25 June.

The new CMO comes three years after the pandemic grounded most global fleets.

Key takeaways

  • Passenger traffic continues to outpace global economic growth of 2.6%.
  • The global fleet nearly doubles to 48,600 jets, expanding by 3.5% annually.
  • Airlines are replacing about half of the global fleet with new, more fuel-efficient models.

“The aviation industry has demonstrated resilience and adaptability after unprecedented disruption, with airlines responding to challenges, simplifying their fleets, improving efficiency and capitalising on resurgent demand,” said Boeing senior vice president of Commercial Sales and Marketing Brad McMullen. “Looking to the future of air travel, our 2023 CMO reflects a further evolution of passenger traffic tied to the global growth of the middle class, investments in sustainability, continued growth for low-cost carriers and air cargo demand to serve evolving supply chains and express cargo delivery.”

Regional demand and key trends

Asia-Pacific markets represent more than 40% of global demand, with half of that total in China.

South Asia’s fleet will expand more than 7% annually, the world’s fastest rate, with India accounting for more than 90% of the region’s passenger traffic.

North America and Europe will account for about 20% of global demand.

Low-cost carriers will operate more than 40% of the single-aisle fleet in 2042, up from 10% 20 years ago.

After omitting demand for Russia and Central Asia in last year’s CMO due to uncertainty in the region, this year’s forecast covers Russia and Central Asia in the Eurasia region, which comprises about 3% of the global fleet by 2042.

Commercial Services forecasts a total served market worth USD3.8 trillion, including digital solutions that increase efficiency and reduce cost; robust demand for parts and supply chain solutions; growing maintenance and modification options; and effective training to enhance safety and support the pilot and technician pipeline.

Also, in the 20-year forecast period, Boeing anticipates demand for these models:

New single-aisle aircraft will account for more than 75% of all new deliveries, up slightly from the 2022 outlook and totalling more than 32,000 aircraft.

New widebody jets will be nearly 20% of deliveries, with more than 7,400 aircraft enabling airlines to open new markets and serve existing routes more efficiently.

(Source: Boeing)

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