Tourism Indochina: Asia Pacific News: Hong Kong Breaks Tourists Record in 2011

Tourism Indochina: Hong Kong Breaks Tourists Record in 2011

HONG KONG: Tourist arrivals hit a record high in Hong Kong in 2011 with nearly 42 million visitors, boosted by a huge increase of people from mainland China, tourism officials said.

The number of holiday makers to the city increased 16.4 percent from 2010 to 41.92 million, with about two-thirds coming from mainland China, according to the Hong Kong Tourism Board (HKTB) in a statement late Thursday.

Mainland tourist figures jumped 23.9 percent year-on-year, helping to offset a decline of 2.4 percent from Japan following the March 11 earthquake and tsunami disaster.

"Looking into 2012, notwithstanding uncertainty in the global economic environment, the HKTB will continue to invest in promotions in different key source markets," board chairman James Tien said.

"We project there will be single-digit growth in visitor arrivals in 2012."

Tourism accounts for about 3.4 percent of Hong Kong's economy.

The former British colony, which was returned to China in 1997 but maintains a semi-autonomous status, is a shopping haven for many of mainland China's newly-minted who pack the city's numerous luxury goods stores.

However, there have been complaints by some tourists that they are strong-armed to go shopping by tour guides who often earn commission from local shops based on how much is spent.

Source: AFP/al

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Tourism Indochina: Asia Pacific News: Voluntourism on the Rise

Tourism Indochina: Asia Pacific News: Voluntourism on the Rise

ANHUI: Soaking in the sights and sounds of rural China or visiting the homes of families affected by HIV and AIDS to better understand their needs may not be most people's idea of a vacation.

But an increasing number of people, foreigners as well as Chinese, are choosing this alternative form of travel called 'Voluntourism'.

'Voluntourism' or combining volunteer work with tourism is becoming an increasingly popular way of seeing the world.

In China, more people from major cities such as Shanghai and Hong Kong are choosing to travel with a purpose.

Charity organization Chi Heng Foundation has organized 10 such trips since last year to visit AIDS affected families in rural China.

A day out at the park may not seem like the most interesting activity on a tour itinerary, but for these AIDS affected children, it is good fun and a way to forget their problems for a while.

Thomas Ho and his wife, who are from Hong Kong, brought their three sons, with the youngest at seven years old, along with them for a 'Voluntourism' trip.

Mr Ho said: "What's the point of bringing children to great cities, five-star hotels, what do they learn? But coming to a trip like this, the children will see a contrast of what they have and the life of people who don't have what they have."

Chi Heng Foundation's founder Chung To said: "Many of the children do not have HIV themselves but in a village setting where people sometimes are superstitious and relatively uneducated, some villages believe that these children brought the bad luck to the family, causing the parents to die. The children have been the scapegoat in some cases and even the relatives are not treating them well."

Many of the visitors were inspired by the children's resilience.

Fourteen-year-old Kevin Ho said: "They are not different in any way. It's just that their background is different but when we meet them, they are all like normal kids."

Another participant Tejinder Rajput said: "In a place that has lots of poverty, they are so positive and vibrant. They are smiling and it makes you wonder whether we have got it wrong. Living in the city with the stresses of working nine to five, these people are just free-spirited individuals."

A three day two night weekend trip to Anhui costs about US$500.

It covers accommodation, meals, as well as gifts for the children.

Source: CNA/fa


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Tourism Indochina:Tourists to Asia Pacific spoiled by listing of eight new World Heritage Sites

A UNESCO World Heritage Site is a place (such as a forest, mountain, lake, desert, monument, building, complex, or city) that is listed by the UNESCO as of special cultural or physical significance. The list is maintained by the international World Heritage Programme administered by the UNESCO World Heritage Committee, composed of 21 states parties which are elected by their General Assembly.

The program catalogues, names, and conserves sites of outstanding cultural or natural importance to the common heritage of humanity. Under certain conditions, listed sites can obtain funds from the World Heritage Fund. The programme was founded with the Convention Concerning the Protection of World Cultural and Natural Heritage, which was adopted by the General Conference of UNESCO on November 16, 1972. Since then, 186 states party have ratified the convention.

As of 2011, 936 sites are listed: 725 cultural, 183 natural, and 28 mixed properties, in 153 States Parties. Italy is home to the greatest number of World Heritage Sites to date with 47 sites inscribed on the list. UNESCO references each World Heritage Site with an identification number; but new inscriptions often include previous sites now listed as part of larger descriptions. As a result, the identification numbers exceed 1200 even though there are fewer on the list.

While each World Heritage Site remains part of the legal territory of the state wherein the site is located, UNESCO considers it in the interest of the international community to preserve each site.

Tourism Indochina:Tourists to Asia Pacific spoiled by listing of eight new World Heritage Sites

(Tourism Indochina: Date : 2008-07-16):

KUALA LUMPUR, Malaysia (eTN) - Tourists heading to Asia Pacific this coming summer can now follow the trail of seven new World Heritage Sites, following the latest official listing by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in Quebec, Canada on Monday.


The sites in Asia Pacific listed are the Kuk Early Agriculture Site (Papua New Guinea), Chief Roi Mata's Domain (Vanuatu), Preah Vihear Temple (Cambodia), Le Morne Cultural Landscape (Mauritius), Fujian Tulou and Mount Sanqingshan National Park (both in China).George Town and Malacca join two other listed sites, Mulu Caves and Kinabalu National Park, as Malaysia's new World Heritage Sites. The recognition marks the end of an almost 20-year odyssey, started in 1998 by Malaysia to have both sites listed by UNESCO.


Looking forward to the tourist spin-offs following listing of both cities, Shafie Apdal, Malaysia's minister for culture, arts and heritage, said the hotel, transport and food industries in both sites will further thrive with the world recognition. "Some of our historical sites are around 400 years old, especially those in Malacca. This recognition can also dispel the notion that we live on trees, or Malaysia isn't safe."Malaysia, according to Apdal, will be inviting foreign expertise to preserve George Town and Malacca. "It will be of value to experts conducting studies on history."


Lim Guan Eng, chief minister of Penang, said a committee will be formed so the state can fulfill and comply with the "parameters" of a living heritage and cultural site, in addition to the expected surge in historical and heritage tourism.The challenge now, is to prevent heritage buildings from being left derelict, or modernized into glass boxes," said Dr. Choong Sim Poey, president of Penang Heritage Trust.


In recognition of their listing status, the sites listed will now be eligible for financial assistance and expert advice from the World Heritage Committee to support activities for the preservation of its sites.


By Yusof Sulaiman

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Tourism Indochina: Asia Pacific tourism revenues set to rise by 2010

Tourism Indochina: Asia Pacific tourism revenues set to rise by 2010

(Tourism Indochina:Date : 2008-09-11):

Tourism revenues in the Asia Pacific region will increase to 4.6 trillion U.S. dollars with visitor arrivals reaching close to 500 million by the end of 2010, the Pacific Asia Travel Association (PATA) said on Wednesday.

In its newly-published Asia Pacific Tourism Forecasts 2008-2010, officially launched here on Wednesday in partnership with the Singapore Tourism Board (STB), the PATA said that despite concerns over a U.S. recession, it predicts a bright future for the region, with China and South Korea set to generate strong outbound growth to Asia Pacific destinations.

Despite regional stock market volatility and uncertainty over local impacts of a possible U.S. recession, the PATA predicts robust average annual growth rates of between 7 percent and 8 percent in the region.

John Koldowski, director of PATA's strategic intelligence center, said that as much as two-thirds of all international arrivals into Asia Pacific are generated from within the region.

He said that Asian markets will inevitably be impacted by a slowdown in the U.S. economy triggered by the credit crunch. However, the medium-term outlook for most Asian economies is very strong with growth rates well above world averages.

As for Singapore's tourism sector, the PATA said in its annual forecasts that with 10.3 million visitor arrivals recorded for 2007 and 12 million forecasts for 2010, the city state is well on track to achieve its goal of 17 million arrivals in 2015.


PATA

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Tourism Indochina: Air travel, freight declines accelerated in November, IATA says

Tourism Indochina: Air travel, freight declines accelerated in November, IATA says

(Tourism Indochina:Date : 2008-12-31:)

Worldwide air travel fell for a third straight month in November, with cargo handling logging a “shocking” decline because of weakening global trade, the International Air Transport Association said.

Passenger traffic, or kilometers flown multiplied by the number of travelers, slumped 4.6 percent from a year earlier, IATA said today in a statement on its Web site. That compares with a 1.3 percent decline in October and a 2.9 percent drop in September. Freight traffic plunged almost 14 percent, the sixth straight monthly decrease.

The decline in air travel outstripped a 1 percent reduction in capacity and is likely to lead to airlines logging losses in the fourth quarter, according to Giovanni Bisignani, IATA’s chief executive officer. Japan’s sales abroad plunged the most on record in November, while Germany’s exports in October fell 0.5 percent and those of the U.S. fell 2.2 percent.

“The industry is now shrinking by all measures,” Bisignani said in the statement. The decline in freight transport “clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown.”

Asia-Pacific freight traffic fell 17 percent, the largest decline of any region, the association said. China’s exports decreased for the first time in seven years in November while imports plunged, China’s customs bureau reported Dec. 10.

Geneva- and Montreal-based IATA estimates that more than one-third of the value of goods traded internationally is transported by air.

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Tourism Indochina: Growth in low cost carrier passenger traffic within Asia Pacific

Tourism Indochina: Growth in low cost carrier passenger traffic within Asia Pacific

(Tourism Indochina:Date : 2009-01-08:)

SINGAPORE - Airline companies have played an immense feat, juggling both the legacy and low-cost carrier segment with unwavering commitment in going through the test of times during the last seven years and especially through 2008. The year 2007 was a year of regaining profitability for the airline industry after the uphill struggle of cutting off redundant infrastructure and going through various mergers and acquisitions and recovering from the post 9/11 downturn in volume of passenger air traffic. The exponential surge in fuel price and present volatility in financial sectors have significantly affected the aerospace industry as a whole.

According to Frost & Sullivan Asia Pacific Consultant of Aerospace & Defense Practice Amartya De, the year 2008 alone saw the International Air Transport Association (IATA) terminate 26 carriers and is keeping watch on 10 - 15 other carriers.

"This watch is not concentrated on any particular part of the world, but rather, in many different pockets. The load factor has remained more or less close to 75 percent since the last 7 years, and there is not much one can do above this unless the existing capacities are significantly cut down," he said.

He added that North America has been the largest loser in 2008 with Europe and Asia Pacific making meager profits of a few hundred million dollars and the Middle East retaining a little respectable share by the close of 2008.

"Airline companies will be able to rationalize and offer efficient services with gradual freedom to operate in open skies if governments look to deregulation as a way to promote the industry as a whole. The previous drop of 50 percent in airline share prices might just reach their initial levels, post all the merger and infrastructure cutbacks by early 2009," he continued.

In terms of industry, Frost & Sullivan estimates that the year 2009 will have its share of global losses owing to the liquidity crunch in the airline industry but most of it will be taken off by the US market. Emerging economies in Asia Pacific will still see an increase in passenger traffic of the order of 5 - 7 percent.

"The prices of air tickets globally will have come down to initial levels by end of 2008. On a positive note, the Asia Pacific players will not face any loss for 2009 and might even be left with few cents in the pocket. The market will still see reasonable growth in Low Cost Carrier (LCC) passenger traffic within Asia Pacific and even in the long haul segment," De said.

Frost & Sullivan also estimates that there will be stronger growth in the economy class travel rather than in the long-haul business class travel mainly for Asia and intra-Europe. "The three sectors - namely Europe-Middle East, Middle East-Asia, and Asia-Europe - will continue to grow at about 7 percent CAGR in 2009," De continued.

He also added that despite the financial slowdown, there will be continuing demand for new and fuel-efficient narrow body aircrafts with around 1,800 new fuel-efficient aircraft deliveries for 2009 equally shared by Boeing/McD-D and Airbus, while on the other hand, airlines will continue to deal with volatility in foreign currencies and hedging strategies.

"The financial torrent is affecting the aircraft leasing sector more than ever before and these times of change are definitely going to lay the new foundations of this industry. Increasing cost-cutting measures and resource sharing are forging together new business models in the airline industry," he said.

According to De, "The distinction between Legacy and LCC becomes thinner and thinner, and eventually we will see fewer carriers with better service and a reasonable ticket prices."


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Tourism Indochina:Spa industry looks forward with Strategic Planning Forum 2009

Tourism Indochina:Spa industry looks forward with Strategic Planning Forum 2009

(Tourism Indochina:Date : 2009-01-09:)

The Strategic Planning Forum to be held by the Asia Pacific Spa Wellness Coalition in Bangkok is hoped, by both managers and executives, to assist the industry through difficult times.

The third annual event is to be held at the Four Seasons Hotel, on Friday 20th and Saturday 21st of February, 2009.

The events were previously held in Bali and Kuala Lumpur, and the Strategic Planning Forums were heralded as a success.

The 2009 event embraces the trend of looking forward, with the appropriate theme of themed ‘Re-align, Re-cap and Re-energise.’

The forum hopes to evaluate the accomplishments of 2008, as well as provide an opportunity to re-consider priorities in both the short and long term future.

The five task forces will review their own work for the year, whilst identifying the areas requiring further development and implementation methods.

Regional reports of the spa and wellness associations around the region will also be considered, for the benefit of future strategic planning.

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Tourism Indochina: European, US tourists may drop, but Asia looks upbeat

Tourism Indochina: European, US tourists may drop, but Asia looks upbeat

(Tourism Indochian:Date : 2009-01-21:)

While the number of tourists visiting Bali from Europe and the United States might drop, tourists from the Asia-Pacific countries will increase, a noted tourism association has predicted.

The Bali chapter of the Association of the Indonesian Tours and Travel Agencies (ASITA) predicted that tourists from European countries and the US may drop by 40 percent this year compared to last year. "Tourists from Europe and the US will be those worse hit by the global financial crisis. Furthermore, the flights from Europe and the US (to Bali) are the most expensive," ASITA Bali chapter chairman Aloysius Purwa said in Denpasar on Saturday.

In 2008, the number of tourists from the United States reached an average of 5,000 per month, while tourists from European countries reached an average of 40,000.

However, he noted that the financial crisis could persuade tourists from the Asia-Pacific countries to change their holiday destinations from crisis-hit countries to Bali. He predicted a 10 percent increase in the number of tourists coming from countries such as Japan, Taiwan, China and Malaysia.

He said the upcoming 2009 election may bring more domestic tourists to Bali, citing a traditional upsurge in domestic travel during the campaign season.

"This is usually caused by parties campaigning around the country accompanied by their supporters," Purwa said.

course this could mean that they may travel to holiday spots during their stopovers. They are tourists too, in a sense."

According to data from the Bali Tourism Agency, the number of tourists coming to Bali reached 1.9 million last year. Japanese tourists remain in the top spot as the largest contributor to the island's tourism industry, with Australia coming in second and Taiwan third.

The tourism agency has cut its target of tourists from 2.1 million to 1.8 million this year, citing the financial crisis as its main reason.

"We have aimed for 2.1 million based on data from the past five years, but have decided to reduce that target to a more realistic 1.8 million due to the global financial crisis," Bali Tourism Agency Chief Gede Nurjaya said.

Meanwhile, Bali Tourism Board Chief Ida Bagus Ngurah Wijaya was optimistic that the predicted increase in the number of Asian tourists could help the island exceed its target of 1.8 million tourists this year.

"I am very optimistic that we can exceed the government's target, because aside from getting a lot of cancellations, we have also been getting a lot of reservations," he said.

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Tourism Indochina: Asia Pacific travel sector will get worse before it gets better

Tourism Indochina: Asia Pacific travel sector will get worse before it gets better

(Tourism Indochian:Date : 2009-01-23):

Key Asian tourism destinations including Thailand, Singapore, Hong Kong and India are bracing themselves for a weak 2009, as traveller numbers are expected to drop.

In a recent report from the United Nations World Tourism Organization (UNWTO), the tourism body recognised that the tourism sector in the Asia Pacific bore much of the brunt in the last quarter of 2008.

“The slowdown was particularly strong since August following the spike in oil prices and the consequent cuts in airline capacity and increasing transport costs,” noted the UNWTO.

“In the shorter term, overall prospects – against continuing downward revisions in macro-economic expectations and primary generating markets in recession – look quite gloomy.”

The International Air Transport Association (IATA) too has noted that traffic in and out of the Asia Pacific has dropped more than any other region in recent months.

In comparison, North America traffic figures were doing relatively well due to having entered the downward trend much earlier than the Asia Pacific.

IATA notes that in 2009, “North America [aviation] will be the only region in the black,” whereas the Asia Pacific is expected to see losses more than double from the US$500 million in 2008 to US$1.1 billion.

For these destinations a drop in capacity from carrier will translate to weaker profits across the board, from hotels to attractions as well as restaurants and convention centers.

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Tourism Indochina: Visa and PATA Survey Boosts Morale of Asia Pacific Tourism Industry

Tourism Indochina: Visa and PATA Survey Boosts Morale of Asia Pacific Tourism Industry

(Tourism Indochina:Date : 2009-02-15):

The positive results of the Visa and PATA Asia Pacific Travel Intentions Survey has boosted the overall morale of the Asia Pacific tourism industry.

The survey, entitled, ‘Determining Travel Preferences in 2009 and Beyond’ found that of the 5,554 people surveyed, 36 percent said they did not expect to make any changes to their travel plans in the near future.

Australians, British, Singaporeans, Indians, French and Americans considered their holidays to be a right not a privilege and were less likely than the average respondent to let the economic crisis get in the way of their travel plans.

64 percent of respondents said that in light of the economic uncertainty they would review their travel plans.

Among those respondents reviewing their plans, 57 percent (mainly from Singapore, Hong Kong, Japan, Chinese Taipei and China) said they would search for less expensive destinations or itineraries.

Domestic travel was an option being considered by 38 percent of respondents, with more travellers from Japan, India, Chinese Taipei, the United States and China opting to holiday ‘in their own backyards’.

While just 36 percent of travellers surveyed said they were planning to postpone travel in the near future.

Meranda Chan, Visa Country Manager for Singapore and Brunei, and PATA Board Director, said: “While the global economic situation will impact tourism, it is unlikely to bring travel to a standstill. What our survey has shown is that travelers will be more creative in their selection of destinations.”

Greg Duffell, President and CEO - PATA said: “The travel and tourism industry is a major employer in nearly every destination in Asia Pacific. Indeed, the top two global markets for travel and tourism employment are China (74.5 million jobs) and India (30.5 million jobs) with Japan, Indonesia, Vietnam and Thailand also in the top 10.

“We must never understate the importance of working with the travel industry to shape promotions and offerings that suit travellers’ desires for new and economically sensitive travel options – and it’s vitally important that the industry delivers innovative and creative solutions to keep these people travelling.” The Visa and PATA survey has named Asia Pacific as the number one region for those intending to travel overseas from now until 2010.

60 percent of respondents said they would travel to Asia Pacific while North America and Western Europe ranked second and third with 35 percent of the votes each.

The top three Asia Pacific destinations that respondents were considering between now and next year were Australia (43 percent), Japan (37 percent) and Hong Kong (35 percent).

Meranda Chan, Visa Country Manager for Singapore and Brunei, and PATA Board Director, said: “That Asia Pacific was named the leading global leisure travel region by respondents in Visa and PATA’s latest travel survey reinforces the vital role this industry fills in the regional economy.

“ PATA figures show that international arrivals to Asia Pacific destinations grew year on year by some 2.6 percent in 2008 - despite the economic slowdown which created a serious impact on inbound traffic in the second half of the year. The industry accounts for more than 5.5 percent of the total gross domestic product in the region, underscoring the importance of travel and tourism to the vibrant economies of Asia Pacific.”

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Tourism Indochina: Asia to suffer this year as travel demand slumps

(TourismIndochina: Date : 2009-02-27 ): Experts suggest new figures set to be released at the ITB Future Day in March will show a significant drop in the travel demand in Asia for 2009.

The 2009 ITB World Travel Trends Report is still being finalised but the preliminary trends show Asia will suffer a challenging 2009.

The World Tourism Organization (UNWTO) reported that the growth of inbound and outbound international travel in Asia fell from 6% in January-June to 2-3% in the second half when fuel prices soared and the economy cracked.

Rolf Freitag, President of IPK International, suggested that many leading source markets for Asia which experienced declines in outbound travel in 2008 will most likely experience it further in 2009.

However there is a light at the end of the tunnel according to Dr Martin Buck, Director of the Competence Center Travel & Logistics at Messe Berlin.

“It is still possible that Asia could start to recover before the end of 2009”

“Initial findings in the World Travel Trends Report still point to a modest overall growth in outbound travel demand from Asian markets in 2009”

“We expect short-haul travel to gain at the expense of long-haul demand. And if oil prices stay low, there could be another surge in low-cost flights in the region”

Asia will now rely on younger consumers which, according to Dr Yuwa Hedrick-Wong, economic advisor, Asia/Pacific, MasterCard Worldwide, are being much more powerful travellers.

“Young consumers in Asia Pacific now typically see personal travel as a key activity in their lifestyles” said Mr Hedrick Wong.

“Our research on consumer purchasing priorities shows personal travel ranking among the top discretionary spend priorities for consumers in the region”

The finalised ITB World Travel Trends Report 2009 will be released at the ITB Convention on ITB Future Day, Wednesday 11 March 2009.

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Asia to suffer this year as travel demand slumps

Experts suggest new figures set to be released at the ITB Future Day in March will show a significant drop in the travel demand in Asia for 2009.

The 2009 ITB World Travel Trends Report is still being finalised but the preliminary trends show Asia will suffer a challenging 2009.

The World Tourism Organization (UNWTO) reported that the growth of inbound and outbound international travel in Asia fell from 6% in January-June to 2-3% in the second half when fuel prices soared and the economy cracked.

Rolf Freitag, President of IPK International, suggested that many leading source markets for Asia which experienced declines in outbound travel in 2008 will most likely experience it further in 2009.

However there is a light at the end of the tunnel according to Dr Martin Buck, Director of the Competence Center Travel & Logistics at Messe Berlin.

“It is still possible that Asia could start to recover before the end of 2009”

“Initial findings in the World Travel Trends Report still point to a modest overall growth in outbound travel demand from Asian markets in 2009”

“We expect short-haul travel to gain at the expense of long-haul demand. And if oil prices stay low, there could be another surge in low-cost flights in the region”

Asia will now rely on younger consumers which, according to Dr Yuwa Hedrick-Wong, economic advisor, Asia/Pacific, MasterCard Worldwide, are being much more powerful travellers.

“Young consumers in Asia Pacific now typically see personal travel as a key activity in their lifestyles” said Mr Hedrick Wong.

“Our research on consumer purchasing priorities shows personal travel ranking among the top discretionary spend priorities for consumers in the region”

The finalised ITB World Travel Trends Report 2009 will be released at the ITB Convention on ITB Future Day, Wednesday 11 March 2009.


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Asia Pacific travel sector will get worse before it gets better

Key Asian tourism destinations including Thailand, Singapore, Hong Kong and India are bracing themselves for a weak 2009, as traveller numbers are expected to drop.

In a recent report from the United Nations World Tourism Organization (UNWTO), the tourism body recognised that the tourism sector in the Asia Pacific bore much of the brunt in the last quarter of 2008.

“The slowdown was particularly strong since August following the spike in oil prices and the consequent cuts in airline capacity and increasing transport costs,” noted the UNWTO.

“In the shorter term, overall prospects – against continuing downward revisions in macro-economic expectations and primary generating markets in recession – look quite gloomy.”

The International Air Transport Association (IATA) too has noted that traffic in and out of the Asia Pacific has dropped more than any other region in recent months.

In comparison, North America traffic figures were doing relatively well due to having entered the downward trend much earlier than the Asia Pacific.

IATA notes that in 2009, “North America [aviation] will be the only region in the black,” whereas the Asia Pacific is expected to see losses more than double from the US$500 million in 2008 to US$1.1 billion.

For these destinations a drop in capacity from carrier will translate to weaker profits across the board, from hotels to attractions as well as restaurants and convention centers.

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Spa industry looks forward with Strategic Planning Forum 2009

The Strategic Planning Forum to be held by the Asia Pacific Spa Wellness Coalition in Bangkok is hoped, by both managers and executives, to assist the industry through difficult times.

The third annual event is to be held at the Four Seasons Hotel, on Friday 20th and Saturday 21st of February, 2009.

The events were previously held in Bali and Kuala Lumpur, and the Strategic Planning Forums were heralded as a success.

The 2009 event embraces the trend of looking forward, with the appropriate theme of themed ‘Re-align, Re-cap and Re-energise.’

The forum hopes to evaluate the accomplishments of 2008, as well as provide an opportunity to re-consider priorities in both the short and long term future.

The five task forces will review their own work for the year, whilst identifying the areas requiring further development and implementation methods.

Regional reports of the spa and wellness associations around the region will also be considered, for the benefit of future strategic planning.

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Growth in low cost carrier passenger traffic within Asia Pacific

SINGAPORE - Airline companies have played an immense feat, juggling both the legacy and low-cost carrier segment with unwavering commitment in going through the test of times during the last seven years and especially through 2008. The year 2007 was a year of regaining profitability for the airline industry after the uphill struggle of cutting off redundant infrastructure and going through various mergers and acquisitions and recovering from the post 9/11 downturn in volume of passenger air traffic. The exponential surge in fuel price and present volatility in financial sectors have significantly affected the aerospace industry as a whole.

According to Frost & Sullivan Asia Pacific Consultant of Aerospace & Defense Practice Amartya De, the year 2008 alone saw the International Air Transport Association (IATA) terminate 26 carriers and is keeping watch on 10 - 15 other carriers.

"This watch is not concentrated on any particular part of the world, but rather, in many different pockets. The load factor has remained more or less close to 75 percent since the last 7 years, and there is not much one can do above this unless the existing capacities are significantly cut down," he said.

He added that North America has been the largest loser in 2008 with Europe and Asia Pacific making meager profits of a few hundred million dollars and the Middle East retaining a little respectable share by the close of 2008.

"Airline companies will be able to rationalize and offer efficient services with gradual freedom to operate in open skies if governments look to deregulation as a way to promote the industry as a whole. The previous drop of 50 percent in airline share prices might just reach their initial levels, post all the merger and infrastructure cutbacks by early 2009," he continued.

In terms of industry, Frost & Sullivan estimates that the year 2009 will have its share of global losses owing to the liquidity crunch in the airline industry but most of it will be taken off by the US market. Emerging economies in Asia Pacific will still see an increase in passenger traffic of the order of 5 - 7 percent.

"The prices of air tickets globally will have come down to initial levels by end of 2008. On a positive note, the Asia Pacific players will not face any loss for 2009 and might even be left with few cents in the pocket. The market will still see reasonable growth in Low Cost Carrier (LCC) passenger traffic within Asia Pacific and even in the long haul segment," De said.

Frost & Sullivan also estimates that there will be stronger growth in the economy class travel rather than in the long-haul business class travel mainly for Asia and intra-Europe. "The three sectors - namely Europe-Middle East, Middle East-Asia, and Asia-Europe - will continue to grow at about 7 percent CAGR in 2009," De continued.

He also added that despite the financial slowdown, there will be continuing demand for new and fuel-efficient narrow body aircrafts with around 1,800 new fuel-efficient aircraft deliveries for 2009 equally shared by Boeing/McD-D and Airbus, while on the other hand, airlines will continue to deal with volatility in foreign currencies and hedging strategies.

"The financial torrent is affecting the aircraft leasing sector more than ever before and these times of change are definitely going to lay the new foundations of this industry. Increasing cost-cutting measures and resource sharing are forging together new business models in the airline industry," he said.

According to De, "The distinction between Legacy and LCC becomes thinner and thinner, and eventually we will see fewer carriers with better service and a reasonable ticket prices."


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