Despite some travel and tourism companies recently reporting a cautious business outlook due to slowing demand and shorter booking windows from major U.S. markets, Malaysian and Indonesian inbound travel sectors are poised for a busy remainder of 2024.
In Malaysia, inbound travel specialists attribute the boost in bookings to favorable tourism policies, such as visa exemptions for key medium-haul markets like China and India. The extension of auto-gate facilities at entry points for travelers from 63 countries, including Singapore, Brunei, South Korea, China, Saudi Arabia, and the UAE, has further supported this increase.
Anthony Wong, Managing Director of The Frangipani Langkawi Resort and Spa, reported a 15% increase in Revenue per Available Room (RevPAR) for the first half of 2024 compared to the previous year. Forward bookings for the second half of the year are promising, with occupancy rates approaching pre-pandemic levels. However, Wong noted that high airfares for both domestic and international flights continue to be a significant challenge. To address this, The Frangipani is focusing on regaining bookings from Eastern European and Central Asian markets through partnerships with OTAs and traditional travel agents, markets that were strong for Langkawi before the pandemic.
For Essence of Asia Tours & Travel, bookings from the Middle East, North Africa, and the Indian subcontinent have been robust for the second half of 2024. Executive Director Arokia Das Anthony attributed this to the introduction of visa-free entry for Indian passport holders, which has spurred Indian arrivals. Forward bookings from India, the Middle East, and Southeast Asia have also been strong, driven by Tourism Malaysia’s promotional efforts and improvements in air connectivity, particularly to secondary markets.
In Indonesia, travel specialists are optimistic about the coming months. Pacto, a major travel company, has reported strong performance in line with increased air capacity to Indonesia. Umberto Cadamuro, COO Inbound for Pacto, highlighted that all markets have exceeded performance compared to the previous year, with a significant portion of business coming from Group Inclusive Tours (GITs). Cadamuro noted that while the Indian market is thriving and traffic from Italy remains strong, the Spanish market and the U.S. East Coast have underperformed, possibly due to concerns related to the Middle East.
Popular destinations in Indonesia such as Bali, Yogyakarta, and Komodo Island continue to attract travelers. Additionally, Sumba, with its accessibility, new properties, and unique culture, is expected to gain prominence. Sumatra is also seeing a resurgence in popularity.
Archipelago International, a leading hospitality firm, reported that its top-performing markets include India and Australia, with China showing significant growth and surpassing Russia in value. International guests made up 40 to 43 percent of the company’s business in the first half of 2024. There has been a notable increase in bookings from North America due to intensified promotional efforts.
John Flood, CEO of Archipelago International, noted that the company’s expanding portfolio of international hotels is helping to highlight its Indonesian properties. In addition to Bali and Lombok, properties in Sorong (West Papua), Surabaya, Bandung, and Yogyakarta are gaining traction among holidaymakers, while Jakarta remains a key destination for corporate clients. Flood expressed confidence in strong performance for the remainder of the year, supported by ongoing promotional efforts and brand expansion across long-haul and Asian markets.
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