Travel

Sri Lanka Tourism officials return after study tour

A delegation of Sri Lankan Tourism officials returned after a study tour in Singapore recently. The study was funded by the Commonwealth Secretariat in the face of new developments with peace returning to Sri Lanka where it is now necessary to accelerate the programs with appropriate short and long term strategies towards

achieving the overall mission of Sri Lanka Tourism.

The program entailed a comprehensive understanding of practices adopted by Singapore Tourism in the sphere of planning, organizing and implementation of sustainable tourism that benefits all stakeholders as well as its public/private sector partnership that has opened up investment opportunities in Singapore.

The meetings were wide ranging with high-powered officials representing all relevant organizations in Singapore viz Singapore Tourism Board (STB), Singapore Hotels Association (SHA), Singapore Hotel Tourism Education Centre (SHATEC), Singapore Association of Convention and Exhibition Organisers and Suppliers (SACEOS), Association of Singapore Attractions (ASA), National Association of Travel Agents Singapore (NATAS), SENTOSA Leisure Group, SUNTEC, National Environment Authority, Changi Airport Group, Hawkers Department, Marina Bay Sands Integrated resort, TIMS, Tourism Academy and Civil Aviation Authority.

The News Straits Times of Singapore published an interview with the Sri Lanka Team and ran a story of the visit on the positive outlook of Sri Lanka which could attract investors, specially from the region. The Team, led by Tourism Authority and Promotion Bureau Chairman Bernard Goonetilleke consisted of Additional Secretary of the Ministry U. Basnayake, DG Hotel School Roy Jayasinghe, GM SL Convention Bureau Vipula Wanigasekera, Director Upali de Silva of Trade Standards and Director Domestic Tourism Upali Ratnayake. Sri Lanka High Commission Officials, High Commissioner Jayanthri Samarakoon, Deputy Saj Mendis and Minister Counsellor Bandula Somasiri joined the delegation in Singapore.

Emirates and Virgin Blue join hands

Emirates and Virgin Blue airlines have teamed up to launch the Emirates Visit Australia Pass allowing unprecedented access Down Under.

The pass offers attractively-priced domestic connections to 22 additional Australian destinations on Virgin Blue from all four Australian cities currently served by Emirates: Brisbane, Melbourne, Perth and Sydney.

Emirates passengers visiting this large and diverse country can extend their journey to Adelaide, Albury, Broome, Byron Bay, Cairns, Canberra, Coffs Harbour, Darwin, Fraser Coast, Gold Coast, Hamilton Island, Hobart, Karratha, Launceston, Mackay, Mildura, Newcastle, Newman, Rockhampton, Sunshine Coast, Townsville and Whitsunday Coast with Virgin Blue. The selection of cities will be expanded to include new destinations operated by Virgin Blue in future.

The Emirates Visit Australia Pass heralds positive news for Australian tourism - especially for centres outside the major cities.

The pass is yet another compelling consumer offer from Emirates and Virgin Blue, and closely follows an interline agreement reached between the two airlines last month to provide a convenient, single ticket option for travellers flying to regional points in Australia.

Both initiatives will pave the way for seamless travel between Emirates' extensive global network of 99 destinations in 60 countries, and Virgin Blue's robust Australian footprint.

Emirates' Divisional Senior Vice President, Commercial Operations Worldwide Richard Vaughan said: "Due to the sheer size of Australia, many visitors prefer to fly as against drive within the country. With the Emirates Visit Australia Pass our passengers will benefit from an increased reach, conveniently accessing 22 additional Australian gateways from our four online points.

"We look forward to work with Virgin Blue and hope to grow this relationship to deliver a truly competitive offering for our customers," he said.

The pass must be issued in combination with return flights on Emirates to Australia on a single ticket. The international return journey must originate outside Australia and New Zealand.

For travellers it means an enhanced travel experience with simple and streamlined ticketing. A minimum of two and a maximum of four domestic Virgin Blue flights can be combined with Emirates flights. Ticketing must be completed by March 31, 2010 and travel should conclude within the validity period of the international ticket.

Interline guests transiting through Brisbane, Melbourne, Perth and Sydney will be provided free transfers between the domestic and international airports..

Vaughan said: "The Emirates Visit Australia Pass is an encouraging development for the Australian tourism industry as it offers an easy incentive for overseas travellers to see more of Australia and thereby stay longer. Emirates' initiative to sell this product via travel agents worldwide is testament to its commitment to the Australian market."

What crisis? Budget carriers thrive amid gloom

Budget airlines have found a silver lining in the global recession. As travelers pinch pennies and opt for cheaper alternatives, AirAsia, Europe's Ryanair and other low-cost carriers are adding routes and buying new planes to grab a larger slice of global aviation at the expense of their more established rivals.

Major players such as British Airways and Hong Kong's Cathay Pacific Airways have reported full year losses for the first time in years despite cutting costs and flights to cope with a downturn in premium air travel.

Full service carriers, which once completely dominated the skies, are banking on an economic recovery to restore their fortunes but they may find it tough to return to the growth levels they enjoyed before the crisis.

"Full-service airlines have a bit of conundrum on their hands," said Derek Sadubin of the Sydney-based Center of Asia Pacific Aviation. "We think low-cost carriers will become so much more entrenched in airports and corporate travel that it will be difficult for them to claw their business back" when the economy recovers, he said. To be sure, all airlines have struggled as oil prices soared in the last two years. Oil prices have since tumbled and despite a rally early this year, are still half the level of a year earlier.

But major industrialized economies continue to contract and economic conditions are likely to remain tough even when a recovery is under way. The International Air Travel Association in June predicted airline losses worldwide to swell to $9 billion this year, nearly double its previous forecast.

Full service carriers are the worst hit as the downturn has hammered business and first-class travel, which make up a small percentage of seats but account for up to 40 percent of their revenues.

Their smaller, no-frills rivals are weathering the recession better with a low-cost model that relies on high passenger volumes, stripping out costs through strategies such as taking the cheapest landing slots at airports and turning full service features like meals and check-in baggage into profit-making extras.

In Asia, budget aviation has seen exponential growth since the start of the decade and now has a 16 percent market share, Sadubin said.

The market share of low cost carriers could cross the 20 percent mark in the next one to two years, he said, as they open up new routes across the region and give travelers an option to fly at a fraction of the cost charged by full service airlines.

Malaysian-based AirAsia, the biggest low-cost carrier in the region, posted a record profit of 203.2 million ringgit ($56.4 million) for the quarter through March, up 26 percent from a year earlier. Passengers soared 21 percent to 3.15 million during the period while falling at regular airlines. It has ordered new planes, made its debut in Europe with flights to London in March and is eyeing plans to enter the U.S. market. "We are in the McDonald's, Wal Mart category. Business is booming as people are looking for value," AirAsia Chief Executive Tony Fernandes told The Associated Press in a recent interview.

AirAsia's success has generated rivals, the best known of which are Singapore-based Tiger Airways and Qantas Airways-owned Jetstar.

Tiger, which is 49 percent owned by Singapore Airlines, is rapidly expanding and has a total 56 new aircraft on order for delivery through to 2016. Tiger expects business travel to account for 15 percent of its total traffic by March 2010, more than triple from current levels.

Budget aviation has put down even stronger roots in the U.S. and Europe, with about a one-third market share in both regions, analysts said.

In Europe, Irish discount airline Ryanair remained on an expansionary course and forecasts a net profit of up to 250 million euros ($350 million) for its 2010 fiscal year. It is eyeing plans to order up to 300 more aircraft in a deal that would make the Irish carrier more than double the size of British Airways. AP

Hertz Corp signs franchise agreement

The Hertz Corporation (NYSE: HTZ), has entered Sri Lanka with a multi-faceted approach to offering car rental within the country.

The company which signed a licensee agreement with Andrew the Car Rental Company (Pvt) Ltd., is working with Discover the World Marketing to handle international car rental reservations, and has joined forces with SriLankan Airlines' FlySmiLes frequent flyer program.

"In an effort to strengthen its business, Hertz has been strategically tapping into markets with solid growth potential and we are pleased to commence operations in Sri Lanka," said Wong Soon Hwa, Hertz Vice President and General Manager, Asia and Japan. "We've embarked upon a three-pronged entry and believe the integrated approach empowers Hertz to fully maximize the Sri Lankan market's potential. Hertz is dedicated to this region and believes that our induction into the TTG Travel Awards Travel Hall of Fame is a testament to our commitment to excellence."

"Andrews, is delighted to be the latest addition to the Hertz global network. As Sri Lanka spears ahead in its nation building on the threshold of a new dawn of peace we see a new era in tourism. Hertz Sri Lanka will be the first choice brand for vehicle rental in Sri Lanka delivering the best service and products that Hertz is known for by corporate and leisure customers", said Mahen Kariyawasan, Managing Director of Hertz Sri Lanka.

The Licensee Agreement with Andrew The Car Rental Company (Pvt) Ltd. provides Andrews the right to operate the Hertz brand throughout Sri Lanka. Hertz Sri Lanka offers business and leisure renters with self-drive, and airport transfer rental options.

Dubai World puts African tourism projects on hold

The state-owned conglomerate Dubai World said Wednesday it is putting multiple projects in Africa and elsewhere on hold because of the global economic downturn.

The pullback comes as Dubai World scrambles to pay back billions of dollars in debt racked up during the boom years, even as it weighs plans to relocate its prized Queen Elizabeth 2 luxury liner to Africa to generate revenue.

“Dubai World has put on hold a number of projects until the market improves, including some tourism projects in Africa and elsewhere,” the company said in a brief statement. It did not specify the projects to be shelved.

Dubai World has previously pledged to invest $1.5 billion in Africa over a five year period. Chairman Sultan Ahmed bin Sulayem has repeatedly described the continent as a largely untapped investment opportunity.

The company joined a British investor in acquiring the historic Victoria & Alfred Waterfront property development in Cape Town, South Africa, for $1 billion in 2006. That site became home for a new division, Dubai World Africa, which was charged with developing investment projects on the continent. AP