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Hotelier Indonesia

First Quarter 2017 Exhibits Strong Growth in Lombok Tourism

International visitor arrivals (air) up 61 percent and occupied rooms at upscale beach resorts up 23 percent in Q1

LOMBOK, Indonesia --- The third Lombok Tourism Development Forum recently concluded with developers and investors showing strong optimism for the transformation of Lombok into a premier international resort destination in the next few years.

A positive atmosphere was evident at the third Lombok Tourism Development Forum, with investors enthusiastic to push ahead with high-end resort and residential projects, citing a 61 percent increase in international air arrivals in 2017 Q1 and continued development of both North and South Lombok as a source of optimism for the emergence of Lombok as a significant tourism destination.

The Forum was attended by hotel and resort residential investors in Lombok, heads of leading hotels on the island, as well as existing hotel and land principals; representing controlling interest of over 60% of current and future upscale and luxury beach-oriented projects on the island and covering over 2000 hectares of land dedicated to high-end hotel and tourism related projects.


With participants enthusiastic to understand recent and projected market performance, The Forum kicked off with Tourism Solutions International (TSI) presenting a Lombok market update, bolstering its expectations of strong long-term growth presented a year ago with updated market data and performance through the first quarter of 2017.

Whilst demand is undoubtedly growing at a blistering pace, strong investor confidence on the island is apparent, with large resort developments in the traditional Northern/Western areas of Lombok steamrolling ahead and paradigm shifting activity in Southern Lombok starting, both to tap into the huge potential that is expected.


This follows a short-term demand/supply imbalance experienced in 2015 which was due primarily to the cancellation of two international routes, which had short lived lives, and created record performance by resorts in 2014. In 2015 the market experienced a top-tier (beach-oriented) supply growth of five percent coupled with a ten percent decrease in demand, which was reversed in 2016. Last year exhibited a supply growth (upscale beach resorts) of over ten percent being met with an even larger growth in demand growth of approximately eighteen percent. This results in demand growing at a faster pace than supply, echoed once again in a Q1 2017 with year-on-year growth of demand within this segment of twenty-three percent.

Current estimates project competitive supply in Lombok to grow at strong double-digit growth rates over the next five years, largely spearheaded by the development in South Lombok and surrounding Gili Islands, in addition to the continued growth of North Lombok.

International airlines are sure to note the potential due to the expansion of accommodation supply in Lombok in addition to the Tourism Ministry’s recent focus upon increasing lift capacity to the Island. Whilst an additional scheduled route has yet to be formalized, a new charter service has been scheduled to commence in June and given the multiple reports of potential new routes in recent months, the attendees were optimistic relating to international lift capacity to Lombok being increased in the near future.

It is clear that the Indonesian government’s programs and incentives to boost tourism including those through the Mandalika project in South Lombok are gaining traction. Ricky Baheramsjah, Head of Investment & Marketing – Indonesia Tourism Development Corporation (ITDC) revealed further news of upcoming developments within the project.

“Vinci Construction Grands Projects, in partnership with IDB, the Islamic Development Bank, have committed to bringing in a dual-branded Hotel from the Middle East, Shaza and Mysk by Shaza. Along with a few other Hotel Brands in the pipeline, we are hoping to have over 1.500 room keys open and ready by 2020. We have so far secured or booked over 350 ha of development projects for our partners which equates to over 60.0% of our total inventory or buildable landbank available.”

Facilitated discussions continued amongst Forum participants, citing international airlift as the key laggard in bringing international arrivals to the island. Whilst rooms supply, demand and airlift almost never grow hand-in-hand, sentiment was that increased airlift will surely follow imminent increases in rooms supply. Mr. Soepit Bharata, Head Lombok & Surabaya – Silkair (Singapore) Private Limited was optimistic about the future, with more international carriers showing interest in flying direct routes to the island, and an increase in load factor on direct flights from Singapore. He also explained the issues of the current infrastructure of Lombok International Airport in handling wide-bodied aircraft.

Following flat growth in international arrivals in 2015, just under 100,000 international arrivals were reported in 2016 by the BPS (Statistics Indonesia Bureau at Lombok International Airport), an annual increase of 29%. Fuelling a positive outlook even further, the first quarter of 2017 reported a strong increase of 61% - totalling over 30,000 arrivals.

General Managers from four leading hotels in Lombok addressed pressing issues on the years’ performance, and opened the floor to questions and discussion regarding the market outlook. Optimism was clear, following a challenging 2015, that the market had shown recovery in 2016 and that demand was up year-to-date. Although competitive supply has increased, occupancy rates have still increased year-on-year. The additional supply has contributed to a short-term softening of average daily room rates (ADR); however, speakers and local players in the audience alike were unanimous in their opinion that full year 2017 ADR will be relatively flat YOY, with a two percent increase in RevPar already evident in Q1 2017.


Three years ago, TSI estimated that Lombok star-rated (three to five star) hotel supply would double prior to 2022. TSI MD Eric Levy noted

“With the significant Mataram additions to supply from late 2014 until today (over 600 keys) and expected completion of several beach oriented properties (approximately 600 keys) in the north/west of Lombok that are significantly underway, it appears this estimate of 4,500 keys (in addition to a myriad of pleasant non-star rated hotels rooms – note that total room inventory today exceeds 10,000 keys) by 2022 may very well be exceeded. This combined with transportation infrastructure sufficiently in place bodes well for the second major wave of development in Lombok to continue. We expect accommodation and lift capacity to grow given the attraction of Lombok as an accessible, idyllic and authentic island getaway that also offers an urban environment with recently enhanced shopping and cultural experiences.”

About TSI
Tourism Solutions International (TSI) is a hospitality investment firm that in addition to its investment and asset management activities conducts select advisory work that is related to investment within the industry. Established in 1991, it’s Principal and associates have worked in the industry throughout Asia since the 1980’s. TSI and its founder, Eric J Levy, have been involved in numerous notable hotel acquisitions, developments and redevelopments throughout Asia over the last three decades. TSI is driven by a mentality of achieving bottom-line results while maintaining the highest of ethical standards related to both its investment activities and advisory services. Positive and long-term relationships whether with partners, clients or service providers are highly valued by TSI.
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Hotelier Indonesia - SevenFold , Year 2017 is challenging for Indonesia Tourism, but the government is still very optimistic it will grow, even they targeted Tourism would contribute 8 percent to national gross domestic product, accounting for Rp 240 trillion and 13 million people working in this sector by 2019 and the government is eyeing 30th position among 141 tourist countries.

President Joko Widodo's administration even has set a target of reaching 20 million foreign tourists and 275 million domestic tourists by 2019.It is responded by Tourism Ministry office to achieve that target with “Spirit Indonesia Incorporated” It is become one the priority programs in 2017.

And Tourism Minister Arief Yahya, has set up another program, 10 New Bali tourist destinations as a priority to be developed in order to be at least as aligned and developed as tourism in Bali. Regional tourism destinations such as Lake Toba (North Sumatra), Belitung (Babel), Tanjung Lesung (Banten), the Thousand Islands (DKI Jakarta), Borobudur (Central Java), Mount Bromo (East Java), Mandalika Lombok (NTB), Komodo Island (NTT), Wakatobi National Park (Southeast Sulawesi), and Morotai (Maluku Utara) with each uniqueness will be put forward on Government’s promotion to prospective tourists, both domestic and foreign.

It is really great if those 10 new tourist destinations can be developed as tourism in Bali, but Don’t force it! said by Arief Gunawan President & CEO SEVENFOLD ASIA. “Better consider whether those destinations have met the 5G requirements yet? We should diagnose them before doing far further.” Arief Gunawan added.

WHAT IS 5G?
The destination has to be fulfilled the 5G requirements, here they are;



#1. Great Attraction consist of great Nature, great Culture and great Manmade.
We may claim our attraction is the best than the others, wait, it’s not enough!
We should continue the 2nd G

#2. Great Accessibility
Great Accessibility consist of great infrastructure and connectivity by land, air and sea. Does the attraction has great accessibility enough, at least easy to be accessed by land, water or even by air. Even it has been fulfilled, it’s still not enough!

#3. Great Facility
Great Facility consist of great public facility, accommodation and other support facilities. Remember, when we develop a destination, it’s not only great attraction and great accessibility, we should be well prepared from public services such as public toilet, gas station till personal services such as accommodation and or restaurant.

#4. Great Value
Here we go, is it worthy to go that destination, is it value for money or greater compare to the other greatest destinations?
Review it again, if that domestic destination is even more expensive compare to international tourist destination!

Domestic or foreign tourist are easily to access those information in this digital era. Do not only make a local destination comparison but please do compare with international destination too. So prepare the better value for winning the destination!

#5. Great Management
This is the last G, Great Management!
Even though you have 4Gs, It’s still not completed. We need a professional and expert to handle the tourist destination, who can think and anticipate from A – Z, to avoid and reduce the failure. Not only that, management who can make a proper strategy from operation, finance, marketing, sales and also not less important is great service.



WHY B?
After analysing the 10 New Bali destinations and doing some matrix for the top Indonesia Tourist destinations, SEVENFOLD Asia introduced B Destinations instead, by fact that all B Destinations start with letter B are better and greater than other destination, here we are;
Banda Aceh, Brastagi, Bukit Tinggi, Batam Bintan, Bangka Belitung, Bengkulu, Bandar Lampung, Banten, Bandung, Bogor, Borobudur, Bromo, Banyuwangi, Bali, Bajo, Balikpapan, Banjarmasin, Bunaken, Baliem and Biak.

Beside letter B, he added letter J as special city destinations which are Jakarta and Jogjakarta.
Those destinations are hot destinations and worthy as investment destinations too!

Should there be any other destinations look like top destinations, they have to use B & J Destination as the selling and entry point.

From 20 B and 2 J Destinations, Bali is still the highest rank & score Indonesia Tourism Destinations. Followed by Bandung, Batam Bintan, Borobudur and Bogor. If the Tourism Ministry would develop 10 New Bali Destinations, they should make a different approach or consider to diagnose and or should be fulfilled 5G requirements. Even Bali took more than 30% foreign tourist share whose visit to Indonesia archipelago. In his last statement, “If we want to be better Indonesia Tourism Better Future Outlook, do not diagnose wrongly and or mistreated, it will definitely drive you in wrong direction and it will only be rhetoric every year strategy!” he added.

OUTLOOK
The good news is President Joko Widodo knows 5G is very important for Indonesia, he has started to repair and develop better National ‘Connection’ Accessibility! The air connectivity and land bridge are very important and crucial.

And it is the right time to review those countries whose have visa-free entry for tourist from 30 countries before to set the next branding and promotion.

However Indonesia archipelago remains one of Asia’s popular tourist destinations and provides some accommodations with significant opportunities for growth. Assuming a six percent compounded annual growth rate, domestic and international visitor arrivals is projected to increase to 600 million by 2022.

B+J Destinations as above mentioned should prepare all facilities including accommodation.

Historically, many of the economy and midscale hotel categories catered to the rapidly growing domestic markets. There are less on the upscale or luxury hotels. The influx of budget airlines in Asia and within Indonesia, have enhanced connectivity and affordability of travels. Bolstered by a healthy economic outlook, the hospitality and tourism industry of Indonesia is expected to experience a period of sustainable growth and opportunities for investors too.

ABOUT SEVENFOLD ASIA
SEVENFOLD ASIA is hospitality, investment, tourism destination advisory and consultation. SEVENFOLD ASIA affiliated advisory offices are in Singapore, Jakarta, Kuala Lumpur, HCMC and Bangkok. SEVENFOLD ASIA and LTH Worldwide have consulted and advised on existing restaurants, beach club, hotels and resorts, as well as development projects located in more than ten cities and resort markets across Asia. The team’s extensive project experience encompasses consulting and strategic advice, development feasibility studies, investment property sales and acquisitions, hotel asset management and hotel destination by brand company. They committed and participated to assist the Indonesia Tourism Ministry to reach their target and they have planned several international events such sport, beauty and lifestyle annually around Indonesia archipelago for mass tourism. (For further information regarding our expertise and specifics about our services, please visit www.sevenfold.asia)

ABOUT THE AUTHOR
Arief Gunawan is President & CEO of SEVENFOLD ASIA. He has more than 30 years of experience in the hospitality, investment and tourism destination industry including executive positions with the World Trade Center, Coldwell Banker & HVS which all these based in USA and he has various senior hospitality corporate roles in IHG, Shangri-La, ACCOR, Kosaido Country Club, Ocean, Compass Hospitality and LTH Worldwide.

Beside that Arief chairs as Chairman of ILTHA – Indonesia Luxury Travel & Hospitality Association, wishes that Indonesia should have more Luxury Travel & Hospitality product in this upcoming years. So that it leverages the Indonesian Tourism to the next up market level.
Arief and his qualified team are ready to advise your hospitality, investment and tourism destination projects. And also they invite, welcome the luxury industries to be part and member of ILTHA.


Contact person:
Name: ARIEF GUNAWAN
Company: President & CEO – SEVENFOLD ASIA Chairman – ILTHA
Email: [email protected]
Phone: +65 8426 4400
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Badan Promosi Pariwisata Daerah (BPPD) NTB bersama Dinas Kebudayaan dan Pariwisata Provins NTB sebagai leading sector pariwisata Lombok Sumbawa dan stakeholder pariwisata lainnya (termasuk seniman dan budayawan) menggelar Parade Budaya Lombok Sumbawa yang bertepatan dengan car free day Jakarta, tadi pagi tanggal 16 Juni 2013. Menambil rute dari Gedung Sapta Pesona Kementrian Pariwisata dan Ekonomi Kreatif menuju Bundaran Hotel Indonesia dan kembali ke Gedung Parekraf. -
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TripAdvisor® is the world’s largest travel site*, enabling travelers to plan and have the perfect trip. TripAdvisor offers trusted advice from real travelers and a wide variety of travel choices and planning features with seamless links to booking tools. 

TripAdvisor branded sites make up the largest travel community in the world, reaching nearly 260 million unique monthly visitors**, and more than 150 million reviews and opinions covering more than 4 million accommodations, restaurants and attractions. The sites operate in 39 countries worldwide, including China under daodao.com. TripAdvisor also includes TripAdvisor for Business, a dedicated division that provides the tourism industry access to millions of monthly TripAdvisor visitors.

TripAdvisor, Inc. (NASDAQ: TRIP) manages and operates websites under 22 other travel media brands: 

www.kuxun.cn.

*Source: comScore Media Metrix for TripAdvisor Sites, worldwide, Q1 2014
**Source: Google Analytics, average monthly unique users, Q1 2014; does not include traffic to daodao.com

©2014 TripAdvisor, Inc. All rights reserved.
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Horwath HTL, The HotelTourism and Leisure Specialists


At Horwath HTL, we focus one hundred percent on hotels, tourism and leisure. With over two hundred and fifty professionals world wide, our network can draw on a tremendous amount of international experience and local knowledge that gives us, and our clients, a unique advantage.

We offer a broad range of advisory solutions that covers the whole cycle of the hotel product, starting with planning and development, on to asset management and operational advice, to transactional and financial restructuring. At any stage, Horwath HTL will add value to your project and ensure that you receive the very best support every step of the way.


Complete Consulting and Advisory Solutions for the Hospitality Industry


Horwath HTL is the largest specialist consulting network in this sector, with 50 offices in 39 countries. Our unrivalled global reach is matched by a unique depth of knowledge and experience gained from thousands of projects over many years, in all kinds of economic climates.

We remain the number one choice for hotel and real estate companies, as well as financial institutions looking to invest in the industry. Whatever and wherever your project, we offer the reassurance of an internationally consistent quality of service combined with local solutions.







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BHAOur Programs


Living in a Balinese community is ruled by the local philosophy called the “gotong royong” which means joined responsibility and mutual cooperation.


Responding to today’s challenges;


BHA is inspired by these living principles and the benefit of supporting the local communities and its people. Numerous programs are developed and implemented to empower individuals and groups providing them with the skills and knowledge they need to initiate and drive change in their life and communities.


BHA collaboratively works with other social institutions and initiates programs on an ad hoc basis to address short- and long-term concerns in Bali.


BHA Programs 2012-2013 at a glance:


Community Relations and Charity




  • Blood drive

  • Linen drive

  • Disability program

  • One Hotel One Orphanage program

  • Orphanage visits


Education, Training and Scholarship




  • Regular training for sales and PR, security and safety, housekeeping, and more

  • BHA Scholarship program

  • Book launch for the one-decade anniversary of the BHA Scholarship program

  • BHA Scholarship gatherings and forums


Environment




  • Monthly green team meeting

  • Supporting Bali Clean and Green Program

  • Reporting water and electricity usage data for 2013

  • Ongoing Say No to Disposable Plastic initiative


General Affairs/Government Relations




  • Supporting the government in socializing new regulations

  • Facilitating discussion among members and government officials

  • Contributing ideas and expert solutions related to various matters


Marketing and Public Relations  




  • Yearly participation in Australian Expos

  • Sales mission trips with the Ministry of Tourism

  • Supporting the Sanur Village Festival, the Nusa Dua Fiesta, the Denpasar Festival and Bali Arts Festival

  • Participated in ITCEF

  • Sending press releases to media and database contacts on BHA website about BHA activities and initiatives

  • Updating the marketing tools on the BHA website for both media and public

  • Bali map initiative

  • Destination advertising in magazines

  • www.facebook.com/baliismylife


Safety and Security




  • Provision of security and safety relevant SOP’s, background papers and check lists for members

  • Comprehensive  security audits

  • Bali Security and Safety Radio

  • Crisis PR, Communication and Management

  • Workshops on Tourism Security and Safety related subjects

  • Individual consultations and tailored problem solutions

  • Disaster Risk Reduction e.g. Tsunami Ready Hotels certification

  • Cooperation with ASEAN in the drafting of the ASEAN Tourism Security and Safety Guidelines

  • Cooperation with its partners to tackle HIV AIDS, rabies and other health issues

  • Situational support and preventive measure e.g. during ASEAN and APEC meetings, Bali Bombing Anniversary etc.

  • Security and safety related cooperation with the local community e.g. Tanjung Benoa Tsunami Shelter and Evacuation Initiative

  • Liaison with BHA’s national and international partners e.g. the Indonesian Ministry of Tourism and Creative Economy, Police, UNDSS, UNESCO, PATA, ASEAN, OSAC, US


Sport and Cultural Activities




  • Organizing sport competitions

  • Supporting various events


Networking




  • BHA members bi-monthly meeting

  • Bali Award Night and Cocktail Party

  • weekly updates for members on new product, trends, happenings and activities

  • working on the website that reaches 3,000 readers from various industries, including the media


In Development




  • organizing Australia Trade Shows for members

  • developing the Bali Convention Bureau

  • supporting the government for APEC 2013

  • seminars, workshops, events


- See more at: http://hotelier-indonesia.com/news/bali-hotel-association/#sthash.XisBHBkw.dpuf
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rajamiceRajaMICE.com is a Professional Exhibition Organizer (PCO) that constantly adapting our products and services according to the expectations and wishes of our clients. We also successfully have been serving the needs of corporations, incentive houses, professional associations and government agencies.


RajaMICE has a network in most of popular MICE destination in Indonesia as well as major city in South East Asia. Our events are varying in number of participants from 50 to 1000, and from small regional seminars to large international conferences.


As professional conference organisers, we specialise in organising international and local conferences. We also organise other meeting-related events, matching them with suitable function venues for any number of delegates.


Our trademark is providing high level services at top value. Your event can be large or small, perhaps combined with an exhibition, or perhaps you wish to keep part of the organization in your own hands: we will make a proposal for you that suit your desires. Should you have planned your meeting somewhere else in the region, you can also contact us. We have no boundaries.


- See more at: http://hotelier-indonesia.com/news/rajamice/#sthash.lFiUQzPv.dpuf