Tag Archives: tourism

Meliá Hotels International to open a urban hotel in Chiang Mai

Meliá Hotels International to open a urban hotel in Chiang Mai

Meliá Chiang Mai, a 260-key urban hotel that towers over the River Ping and bustling Night Bazaar in the heart of Chiang Mai city in Thailand’s mountainous north, is slated to open its doors for business in the fourth quarter of 2021.

Owned by Thailand’s leading integrated lifestyle real estate group Asset World Corporation (AWC) and launched by Meliá Hotels International, the five-star hotel is part of the Meliá brand’s roll-out plan in key destinations across Thailand. Meliá Koh Samui debuted in January 2020 with a nautical theme underscored by boat suites made from refurbished merchant vessels. INNSiDE by Meliá Bangkok Sukhumvit, the first property of its brand in Thailand, housing 176 guestrooms and located close to the Suvarnabhumi Airport, is due to open in 2022.

Meliá Chiang Mai will be situated six kilometres from the Chiang Mai International Airport on the vibrant Charoen Prathet Road, located near a broad spectrum of tourist attractions, markets, and Buddhist temples.
With a design that pays tribute to Chiang Mai’s charming history and culture with a contemporary flair, the hotel will comprise a striking 22-floor tower fronted by an adjoining seven-floor podium building.

Two restaurants, two bars, two lounges including an executive lounge on the 21st floor with a panoramic view of Chiang Mai, Meliá’s signature YHI Spa with seven treatment rooms, a fully equipped fitness center, swimming pool, ballroom and four other meeting spaces will be among the hotel’s host of facilities for business and leisure travelers alike.

Of the property’s room portfolio, 38 rooms and six suites will belong to ‘The Level’, an upgraded level of service and benefits that affords exclusive access to The Level executive lounge, an intimate area for indulging an upgraded breakfast and afternoon delicacies that is also suited for casual business meetings. The epitome of elegance, ‘The Level Presidential Suite’ will command 113 sqm of the tower’s top floor with unrivalled city vistas.

Meliá Chiang Mai’s jewel in the crown will be a 360-degree rooftop bar – the highest in the city – on the 22nd floor. Featuring two bars connected by a glass bridge, the bar will offer spectacular views of the River Ping to the city’s east and famed Doi Suthep Temple on the mountaintop to the west.

Drawing on Meliá’s Spanish origins, the hotel will pay homage to Spain’s famed gastronomy and quickly place itself on the city’s culinary map with two exquisite dining options. Perched on the 21st floor, the hotel’s signature restaurant will specialize in contemporary Northern Thai dishes with Mediterranean influences, with chefs preparing each dish à la minute from an open kitchen. The all-day-dining restaurant Mosaic will offer authentic Mediterranean cuisine in a vibrant marketplace setting.

An idyllic venue for events and weddings, the property’s extensive conference facilities include a 358-sqm ballroom and three function rooms on the tower’s second floor above the lobby and a 175-sqm multi-purpose function room on the podium building’s top floor.

The ballroom’s 173-sqm pre-function area is connected to an outdoor swimming pool and poolside bar, aptly named Poolside. The Power Lounge, one of the three function rooms that also afford access to the pool deck, will feature a pool table and coffee area suited to down time between meetings. Adjacent to a secret garden, the seventh-floor multi-function room opens to a 223-sqm outdoor terrace that also lends itself to events.

“With its exceptional location in the heart of Chiang Mai and an unparalleled array of facilities, Meliá Chiang Mai is a landmark project of our strategic roll-out of the Meliá brand in Thailand, in line with AWC’s growth-led strategy,” said Khun Wallapa Traisorat, Meliá Chiang Mai’s owner and AWC’s CEO and President. “Partnering with Meliá has allowed us to set a new benchmark for Thai hospitality and together, we aim to build a better future for Thailand’s tourism landscape and economy.”

“Following the hugely successful opening of Meliá Koh Samui, ranked TripAdvisor’s number one hotel in Koh Samui, Meliá Chiang Mai will be another flagship property for Meliá Hotels International in Thailand,” said Ignacio Martin, Area Managing Director South East Asia of Meliá Hotels International. “As we continue to strengthen our growth strategy with our key partners, AWC understands and shares our strong service and hospitality philosophy — a fundamental factor in ensuring the quality, reputation, and sustainability we strive for.”

“The global pandemic could not dampen our determination to unveil an extraordinary hotel that promises to exude the mystic splendor of Northern Thailand with Meliá’s warm Spanish hospitality, distinctive passion for service and focus on the customer’s wellbeing ever-present,” added Meliá Chiang Mai’s General Manager, Edward Snoeks.

Macao – A mix of East and West in Asia

Macao – A mix of East and West in Asia!

Macao the name of the destination itself has the sound of the word “wow” in it and rightfully so. This destination is nothing less than magnificent.

As one of Asia’s top destinations, Macao surely lives up to its reputation as a destination with an array of options for the foodies, culture junkies, thrill-seekers, and entertainment-lovers alike. It is a destination where East meets West and one will experience the fusion of European and Chinese cultures.

There’s a rich heritage to explore when walking down the lanes paved with Portuguese cobblestones and surrounded by neo-classical beautiful architectural gems, heritage sights, UNECO monuments, ancient ruins, temples, churches, museums and art to see. The destination is also home to some of the most amazing festivals, events and shows including traditional Chinese New Year celebrations, A-Ma Festival, Dragon Boat Festival, as well as important Western celebrations such as Easter, Procession of our Lady of Fatima and Christmas. Many annual international events are also held in Macao, including Macau Grand Prix and Macao International Fireworks Display Festival, plus world-class concerts and shows!

As a gourmet paradise, Macao will satiate your appetite with gamut of cuisines and world class dishes. Here one can experience a stunning variety of distinctive cuisines like Portuguese, Chinese, Japanese, Indian and so much more; making it a paradise for foodies. With an array of restaurants including Michelin starred to choose from, there is something to please every taste bud.

Another great pleasure of Macao is that you can spend all day shopping wandering through shopping malls and browsing the international labels. From Dolce & Gabbana to Cartier to Dior, one can find a stunning range of international designers and luxury premium brands. The entertainment ranges from kid-friendly shows to dazzling shows to enjoy for families. You can even jump off the world’s highest commercial bungee jump and visit the cute Pandas Kai Kai and Xin Xin at Giant Panda Pavilion.

Macao is a wholesome destination where you can explore rich culture, festivities, gastronomy and more making it a vibrant city to visit.

Prasenjit Chakraborty, Assistant Editor, TravelBiz Monitor

Act Responsibly

When we thought that India is gaining upper hand in its fight against Covid-19 at that time the virus is raising its ugly head again in states like Maharashtra, Kerala. This development has resulted in imposing fresh restrictions to contain the spread of new variants of the virus. In Maharashtra, lockdowns were imposed in select areas. Whether it is second wave or not, the damage is done to the tourism industry as people have started cancelling their scheduled visit. Few of my friends and relatives have cancelled their visits to Maharashtra and Goa which were curated carefully over a period. I am sure there are thousands of such examples all over the country. This has inflicted further damage to the sector (domestic), when business had just started gaining momentum.

There was a report which states that the new variant of virus led to a 35 per cent fall in sales in the last few days in Mumbai’s Zaveri Bazaar, Asia’s largest gold market. The fall in sales is because people are not venturing out. If this is the case for gold, we could imagine the impact on tourism industry. There is already a whisper in the industry-Are we going in 2020 way? Last year, exactly during the same time, the shadow of pandemic was looming large.

Besides Maharashtra and Kerala, new cases have been recorded from Punjab, Karnataka, and Madhya Pradesh. All these states are significant contributors to domestic tourism. We have to understand that in the current scenario, domestic market is the one and only hope for business. But the rising cases put a big question mark to the sector.

India is 17th among the most affected country by active cases. My intention is not to sound pessimistic, but to caution about possible consequences, if we don’t behave in a responsible way. Our irresponsible behaviour to a large extent is responsible for the current spike. Can we afford another lockdown? Can’t we learn lesson from 2020, which has just gone by? What is wrong in applying our brains so that we can live comfortably in the future?

 

Saudi Arabia

‘Launching E-visa was a significant milestone in the opening up of the Kingdom’

Saudi Arabia, since opening its doors to leisure tourism in September 2019 has introduced many new destinations and experiences for the audience both from home and abroad. Besides this, it has identified 15 priority leisure source markets spanning the GCC region, Asia, North America and Europe, says Saudi Tourism Authority in an exclusive interview with TravelBiz Monitor.

Q. Saudi Arabia wants to move from an oil dependent economy to tourism driven. What efforts are being made in this direction to become a world-class tourist destination?

We aim to achieve 100 million annual visits to the Kingdom by 2030, made up of both domestic and international travellers.
To achieve this goal, we have developed a comprehensive strategy to drive the number of visits, increase spend and to build a leading tourism brand for Saudi.
We have identified 15 priority leisure source markets spanning the GCC region, Asia, North America and Europe. This is broken down further into three target segments, leisure, MICE and spiritual travel.
Since opening our doors to leisure tourism in September 2019, STA has unveiled many new destinations and experiences for audiences from home and abroad.
The campaigns highlight what Saudi has to offer today – its rich culture, deep heritage, diversity of landscapes and unparalleled hospitality. It is the authentic home of Arabia: a place of exploration, of unique experiences. This is what we want the world to discover about Saudi.

Q. In September 2019, the tourist e-visa was introduced. Can you tell us more about the e-visa and any numbers surrounding its launch.

The launch of the e-visa was a significant milestone in the opening up of the Kingdom. From September 2019 to March 2020, we had issued more than 400,000 tourism visas, and we are confident that we will exceed this target once borders re-open.

Visitors from 49 countries are able to apply for the visit visa online, while other nationalities are able to apply for the visa at the Saudi embassy or consulate in their home country.

Q. What is the impact of the on-going pandemic on the tourism sector of Saudi Arabia?

We continue to work closely with the Ministry of Health on health and safety standards. The Ministry has put in place comprehensive protocols for establishments to provide visitors and their families with a safe experience, which are aligned with the guidelines recommended by the WTTC.
• Free healthcare is provided to anyone in Saudi Arabia (citizens and visitors alike) affected by COVID-19
• Tracking and testing apps have been introduced to help people assess their health and manage any quarantine requirements
• The Saudi tourism e-visa process is 100% digital, ensuring the reduction of touchpoints ahead of travel and upon arrivals

Q. In terms of outreach across channel partners and consumers alike, what platforms are being deployed?

We are investing in developing strong relationships with key partners in the travel trade sector in all of our priority source markets.

We are in the process of building a network of international offices, responsible for both trade and consumer marketing activities, to expand the reach and relevance of Saudi’s tourism offer.

Each market will be tasked with developing a tailored, strategic approach to most effectively engage with their target audiences, whether it be workshops, road shows, training, marketing campaign or FAM trips.

Q. What are your expectations from the Indian market?

India really set the standard in destination marketing with its Incredible India brand campaign. And it is amazing to think that campaign will be 20 years old next year. And as the tourism market begins to reopen, India will be one of the most significant source markets in the world.

Q. Tell us a bit about the Saudi Roadshow – what can we expect to see?

As it relates to leisure tourism, Saudi is a relatively new destination.
Our focus is two-fold. While it is fundamental to drive awareness about Saudi amongst travellers around the world, we must also engage, educate and inspire our travel trade partners about the diverse products and experiences that Arabia offers.

The Saudi Roadshow is an opportunity for our partners to meet-one-on-one with senior representatives from key destination, experience and hospitality brands. It is a platform for them to ask questions, build relationships and stimulate conversations around the potential commercial partnership opportunities. This is the first time we are engaging trade at this level. The response to date has been extremely positive, and we look forward to increasing activity to further showcase the Saudi offering.

 

Prasenjit Chakraborty, Assistant Editor, TravelBiz Monitor

Mired in Uncertainty

Joe Chernov, a renowned marketing leader once said, “Good marketing makes the company look smart. Great marketing makes the customer feel smart.” The Covid-19 pandemic necessitates ‘great marketing’ for the tourism industry. While health and hygiene have always been the essential elements for travel & tourism competitiveness, the pandemic has brought enhanced global spotlight on the importance of these factors.

In a normal situation, tourism marketing is undertaken with a relatively high degree of certainty. And planning, setting budget, etc. are routine affairs. But the situation now is completely different. Hence, the marketing process is fraught with challenges and understanding the pulse of travellers is a key. In all probability, travellers are likely to embark towards destinations that are seen to be healthy, safe and clean, and also how effectively they have managed the pandemic. Besides this, investment in health infrastructure by destinations will play a critical role in attracting tourists. Frankly speaking, in the current scenario, the essence of marketing should revolve around addressing the FEAR (Fear of unknown, fear of being touched, fear of infection, fear of bringing back the virus, etc). So, those who can address this vital issue effectively and efficiently would be successful.

Coming to the Union Budget, which the travel & tourism and hospitality industry was waiting with bated breath for some relief has been a complete washout. The sector significantly contributes to country’s GDP and employment generation. Plus, the magnitude of destruction the Covid-19 pandemic has inflicted on the sector is unimaginable. Was it wrong to expect some handholding from the government? Although, the Budget has taken steps to improve regional connectivity by privatisation of airports in Tier-II and III cities, focusing on road and rail infrastructure these are all long-term measures. Against the backdrop of pandemic, the industry wanted something which could immediately soothe the nerves like exemption of taxes, release of SEIS benefits, etc.

The current plight of the industry reminds me a famous line of a song by Rabindranath Tagore, “If no one responds to your call, then go your own way alone.”

ecommerce

GMV/GTV Multiple – The Fallacy of E-Commerce Valuation

Avijit Banerjee, CEO & MD, Argon Capital Advisors

Avijit Banerjee, CEO & MD, Argon Capital Advisors

By Avijit Banerjee, CEO & MD, Argon Capital Advisors

The valuation stories of E-Commerce companies, which almost always follows an exponential path, has always baffled me. This has made me wonder if there’s an alternative school of thought that may have a contrarian view to this valuation story/theory. If there isn’t any until now, I would want to be the founder of that alternative school.
The flaw in this valuation theory, the way I see it, is by assigning market multiples to the Gross Transaction Value i.e., GTV (also referred as Gross Merchandise Value or GMV) as opposed to the actual revenues booked by the e-commerce companies by way of reseller fees or commission earned. In order to understand it better, let’s dissect this step by step so that we get to the root of this fallacy…

…E-Commerce Companies, Unless They Sell Their Own Branded Merchandise, Are Commodities:

My focus here is on e-commerce companies who are aggregators (i.e., companies that operates as a market place) are commodities in the language of asset pricing/valuation, and will have high price elasticity. The reason being, these aggregators are frontline distributors – in the distribution value chain – to a producer’s merchandise, and, therefore, when a sale takes place, it’s because of the brand retention/loyalty of the producer’s merchandise and not of the aggregator. Therefore, if a competing aggregator offers the same merchandise on its platform at a lesser price, the consumer would go with the one that’s priced less due to value-for-money. That’s where the price elasticity kicks in, which hardly leaves aggregators with any differentiators other than price competitiveness.
Therefore, this distribution system i.e., Market Place Aggregators, without any key differentiators, is a commodity, and, hence, an unusual high valuation for such aggregators would certainly raise an eyebrow.

Differentiating GMV/GTV with Revenues Would be a Step Closer to Understand the Fallacy of E-Commerce Valuation:

GMV or GTV is the aggregate volume of the merchandise sold to the end consumers multiplied by the listed price of the units. While the transaction/POS happens at the aggregator’s domain, the gross retention for the aggregator is limited only to the agreed revenue sharing for the merchandise, and the rest of the transaction value is passed on to the producer of the merchandise. For example, if the revenue sharing between the producer of the merchandise and the aggregator is 70% and 30%, respectively, it means for a transaction of every INR 100, the aggregator would keep INR 30 as its reseller fees/commission income, and the remaining INR 70 would be passed on to the producer of the merchandise.

Therefore, if the valuation multiple, in the above example, is applied to the entire GTV of INR 100, it would be fundamentally incorrect because INR 70 – in this GTV – does not even belong to the aggregator. That’s the fallacy I am trying to highlight, since the actual revenue of the aggregator, in this example, is only INR 30. Therefore, assigning multiples to GMV/GTV as opposed to actual revenues would not only be fundamentally incorrect but also create…

…An Asset Bubble Trap:

The practice of GMV/GTV multiples would continue to keep the underlying asset price (i.e., the aggregator company) artificially high, thereby creating bubbles. While the early investors may perhaps get an exit, it’s the late entrants – who would usually enter at an astronomically high valuation – who would likely get trapped. An exit at this point would be next to impossible since the business fundamentals won’t be able to support the underlying price of the asset.

To Conclude – Always Bet on the Cash Flows:

If I am an investor looking at investing in e-commerce companies, I would bet my money on the ability of the company to generate cash. Let alone GMV/GTV, what’s the point of even having an exponential revenue trend if it fails to cover the cost of generating such revenues? Therefore, unless the company has the ability to not only turn cash positive, but also sustains it, valuation based on revenue multiple has no meaning, let alone GMV/GTV multiple.