Issue
ITB Berlin, Germany
March 7, 2019
No winner in sight with Brexit
It may be premature to speculate on Brexit’s impact on travel, but bright spots are few
By Xinyi Liang-Pholsena and Yixin Ng
Uncertainties abound in the UK travel
sector with the outcome of Brexit still up
in the air weeks ahead of its planned dead-
line, but buyers and sellers at ITB Berlin
are cautious in speculating what this may
mean for business coming into Asia.
In January, IATA warned that up to five
million flights would be at risk if the UK
leaves the EU without a deal. A no-deal
Brexit was feared to see airlines capping
flights at 2018 level, although tickets for
2019 routes were already on sale. Late last
month, the EU reportedly stated its inten-
tions to lift this cap.
More recently, research by a product
comparison website claimed that half of
British holidaymakers could ditch Eu-
ropean mini-breaks as a result of Brexit,
with higher flight costs a concern.
Frank Wiegand, director of team sales
Europe at Focus Asia, said: “There could
be some legal problems for a short while,
leading to certain Europe flights (operated
by UK airlines) being unable to continue
– but these will be solved.”
On whether these uncertainties could
translate to speculative buying of Asian
holidays in the short term, Wiegand was
doubtful. “Asia is more expensive. I don’t
think a family in Birmingham originally in-
tending to visit Spain will decide on Thai-
land instead. (Those choosing Asia and Eu-
rope holidays) are different markets.”
Particular segments of Brits may even
Perhaps, a potential slump in the UK
choose to travel closer to home. “I think economy and currency are larger con-
the concern about being close to home cerns. “Nobody knows yet what the re-
is valid, particularly in the months im- sult of Brexit might be. Does it happen
mediately after Brexit. Our clients tend to in March, June, or ever? Will they hold
be decision-makers within their business. another referendum? The only risk I see
They want to feel they can react
is there might be less Brits travel-
quickly to any crisis. You can do
ling at all, whether to Europe or
a conference call but sometimes
to Asia,” said Wiegand
you feel the need to be present,”
If or when the pound takes a
said David Kevan of Chic Loca-
hit, “travel everywhere will get
tions.
more expensive”, Wiegand ex-
Paul Gorman, senior man-
plained. “It happened in Russia
ager – owner engagement, of
years ago, and there could be a
Luxury Escapes, which is plot- Kevan: problems
similar crisis ahead of the UK.”
ting its move into the European and opportunities
“Brexit opens up two levels
outbound market, said: “Whether Brexit of uncertainties. On the consumer level,
will have an impact depends on what the travellers are not sure what’s going on
result is. At the same time, (a great deal and how it would affect them personally;
of) airline capacity is coming out of Eu- on the trade level there will be more un-
rope into Asia and vice versa. The barrier certainty over currency issues, with the
to getting to places now is so much less, pound already hit really hard a bit ago, will
you can fly between Singapore and Berlin there be even further impacts?” said Wil-
(on an LCC, for example). Ultimately it’s lem Niemeijer, CEO & co-founder, Khiri
about (the desire to travel). I don’t think Travel.
Brexit will slow that down. “
With travellers’ spending power affect-
For intra-Europe travel, he said: “No- ed, Kevan suggested that the UK’s travel-
body knows how it’ll be in terms of op- ling demography may shift towards those
erating licences. Guys who have UK or age above 35. “Like with everything, a
Irish operating licences like Ryan Air and door closes and another opens. There will
EasyJet may have to reapply for landing be problems and opportunities in equal
rights. I suspect that will be worked out measure. I would probably be much more
before (the deal is final), (but it is still) a concerned if (over half) of my business
big risk to a lot of companies.”
came from under 35 year-olds .”
European comeback gives hope to Myanmar
By Xinyi Liang-Pholsena
The Myanmar trade is taking on a more
positive outlook of the European market,
as they believe that the plunge in Western
visitor numbers to the country due to the
international media coverage of the Rakh-
ine conflict has bottomed out.
May Myat Mon Win, Myanmar Tour-
ism Marketing’s (MTM) chairperson is
seeing signs of recovery from the Europe-
an market. “Twenty-eighteen was a chal-
lenging year, but we saw improvement in
January 2019, with -5 per cent drop (in
European numbers) instead of -35 per
cent (for same period last year),” she said.
Edwin Briels, managing director of
Khiri Travel Myanmar, is also observing
an uptick in interest in Myanmar from the
Netherlands and Scandinavian markets
since January this year.
“These are more conservative markets,
but even families are asking about Myan-
mar. If family trips are coming back, eve-
ryone is coming back,” he remarked.
This positive sentiment is providing
impetus for Myanmar tourism to step up
its charm offensive at ITB Berlin. The My-
anmar Tourism Marketing (MTM) yes-
If family trips are
coming back, every-
one is coming back
Edwin Briels
Managing director, Khiri Travel Myanmar
terday launched the 9 Enchanting Discov-
ers of Myanmar, highlighting the country’s
diversity of attractions and natural beauty
by focussing on nine lesser-known desti-
nations of Kyaing Tong, Loikaw, Mergui
Archipelago, Mogok, Mt Victoria, Mrauk
U, Putao, Hpa An and Hsipaw.
Minister of hotels and tourism Ohn
Maung told the Daily that the latest cam-
paign, which will leverage digital media to
target different groups and segments, will
place a stronger emphasis on experiental
travel. “Myanmar is not just a cultural
destination; there’s more than the classic
four of Yangon, Mandalay, Bagan and Inle
Lake,” he stressed.
Austria, which has greater market
awareness of Myanmar thanks to heavy
marketing of the country since some 15
years ago, is flagged as a “niche market”,
particularly for trekking and diving, ac-
cording to the minister.
Ohn Maung also shared that several
European governments, including Czech
Republic and Poland, have submitted for-
mal requests for visa-on-arrival for their
respective citizens into Myanmar.
In response, the Myanmar government
is currently planning visa relaxation to se-
lected European markets to facilitate trav-
el as well as investment into the country.
Meanwhile, Scandinavian airlines
have also indicated their interest in
launching flights to Ngapali, and in re-
sponse the Myanmar government is
now upgrading the domestic airport in
Ngapali, plus four others in Kawthaung,
Dawei, Heho and Pakkuko, into interna-
tional ones.
Furthermore, Italian carrier Neos Air
has begun direct flights from Milan to
Yangon since last October, driving up
optimism of faster recovery of the Italian
market, May Myat Mon Win added.
ITB to debut India
edition in 2020
Messe Berlin has announced the launch of
the inaugural ITB India next year, with the
three-day B2B travel tradeshow and con-
vention set to take place at the Bombay
Exhibition Centre in Mumbai from April
15 to 17, 2020.
“In recent years we have given the ITB
brand an increasingly international di-
mension,” said Christian Göke, CEO of
Messe Berlin.
“From a global and regional perspec-
tive, India is a vast source market for the
travel industry with a huge growth poten-
tial. We are delighted that ITB India will
in future complement the trio of ITB Ber-
lin, ITB Asia and ITB China, making it a
quartet and strengthening the global ITB
brand,” he said.
Katrina Leung, managing director of
Messe Berlin (Singapore), the organiser
of ITB India, said: “Having successfully
run eleven editions of ITB Asia, it is logi-
cal for us to progress to the next frontier
of travel in Asia. India represents an ex-
tremely promising market with a growing
purchasing power among travellers from
the region.
The Indian travel industry is expected
to reach US$56 billion by 2020 as UNT-
WO predicts 50 million outbound travel-
lers from the market by then.
Indian-based travel trade operators are
looking forward to the South Asian debut
of ITB in their homeground.
Lalit Atrish, deputy general manager
of Indo Asia House in India, said: “This
show will allow many different partners
from all over India to come together, it
will be a very exciting way to promote our
country.”
Eager to welcome international buyers
into India, Kshitij Kapoor, general manag-
er of Destinos India, commented: “There
is no better way to show our country to
them than to have them in the destination
itself.”
Anurag Rathore, general manager of
sales and marketing, Erco Travels India,
added: “Instead of just talking, we can
show and tell the destination by bringing
them to the attractions we are selling.”
ITB India will also have a Hosted Buy-
ers’ Programme that will cater to buyers
from first-, second- and third-tier cities in
India.
Some 50 per cent are expected to focus
on leisure travel, with MICE and corpo-
rate travel buyers making up the remain-
der with 25 per cent respectively. Almost a
third of all buyers at ITB India are expect-
ed to have a purchasing power of more
than US$1 million.
As with other ITB shows, exhibitors
will be drawn from a wide range of com-
panies and representatives from travel
agencies and operators, NTOs, business
travel and MICE, travel technology, ac-
commodation, and transport. – Paige Lee
Pei Qi