Airbnb shares research and best practices for Thailand’s short-term rental industry

Airbnb has today released its proposed regulatory principles for short-term accommodation which would support the Thai Government’s objectives of making Thailand the premier tourist destination in Asia and one of the top tourist destinations globally.

Driven by a desire for more local, unique and authentic travel experiences, the Airbnb community in Thailand continues to grow from strength to strength. Local hospitality entrepreneurs are choosing Airbnb to earn extra income or grow their business giving guests the choice to stay in boutique hotels, vacation rentals or local homes. By helping attract and host more guests, the Airbnb community is growing and diversifying Thai tourism.

Following positive meetings with multiple government departments and industry stakeholders, Airbnb has put forward suggested regulatory principles for short-term accommodation in Thailand. These principles would support local priorities and reflect Thailand’s unique needs, and are consistent with best practices for regulating short-term accommodation regionally and globally.

 

The regulatory principles also reflect latest research, conducted by Expedition Strategies in late 2018, which found 88% of Thai people would support residents in their neighborhoods sharing their homes, 89% would consider using short-term accommodation in the future and 84% believe short-term accommodation is good for communities because it will bring tourists to more areas where they will spend money.

Airbnb’s proposed regulatory principles include:

• Simple and online national-level registration – A simple, swift and online registration system for short-term accommodation to ensure compliance and promote high safety standards.
• Differentiated regulation – A differentiated – rather than one-size-fits-all – approach to regulation which distinguishes between the various types of short-term accommodation activity. For example, regulations should differentiate between someone sharing a room in their home, their own home occasionally or someone with a vacation rental for full commercial purpose.
• Industry-wide approach – There should be an industry-wide approach to regulation and close cooperation between all industry participants and regulators in implementing regulations.
• Tough but fair rules for bad behaviour – The overwhelming majority of hosts and guests are good neighbours and respectful travelers, but there should be penalties that target extremely rare instances of bad behavior.

“Airbnb wants to be a good and responsible partner to Government and do what we can to help Thailand achieve its tourism objectives. Already, our local community is helping grow and diversify the Thai tourism industry and spread the benefits of tourism to local communities across the country, particularly those in emerging destinations like Buriram,” Airbnb’s Head of Public Policy for Southeast Asia Mich Goh said.

 “For some time, we have listened to local authorities and sought to better understand their priorities. We appreciate the balanced and forward-looking approach the Thai Government has considered to take in developing a modern regulatory framework for short-term accommodation.”

“We respectfully believe the regulatory principles for short-term accommodation we have put forward support the Government’s objectives and strike the right balance. We look forward to continuing to work constructively with the Thai Government to develop regulation that would work in Thailand.

”Earlier this year, Airbnb released new data which found the local host and guest community generated over $33.8 billion baht in estimated direct economic impact in Thailand in 2018, and on average Airbnb guests say 46% of their spending occurs in the neighbourhoods where they stay.

Airbnb is also supporting the growth of emerging destinations in Thailand. In 2018, the number of Airbnb guest arrivals visiting emerging destinations in Thailand grew by 53% year-on-year. Recently, Airbnb launched a new campaign, Sustainable Travel with Airbnb: Beyond Big Cities” to promote emerging destinations such as Buriram.

Source - The Thaiger

#Cambodia plans Da Nang flight to boost tourism with #Vietnam

Prime Minister Hun Sen last week said a soon-to-begin direct flight between Phnom Penh and Da Nang, in central Vietnam, will boost the number of Vietnamese visitors to the Kingdom.

Speaking during a business forum during a two-day visit to Vietnam, Mr Hun Sen said the new fight, which will be operated by Cambodia’s national flag carrier, will play an important role in attracting more tourists from Vietnam.

“Vietnam continues to be the second-largest tourist market for Cambodia, and we expect to see more and more Vietnamese tourists choosing Cambodia as their holiday destination,” he said.

He said the Kingdom welcomed about 470,000 Vietnamese tourists during the first seven months of the year, an increase of 4.6 percent over the corresponding period last year.

Cambodia Angkor Air, the national flag carrier, recently announced that its Phnom Penh-Da Nang route will launch on Oct 27. Phnom Penh will become the second city, after Siem Reap, that the airline connects with Da Nang.

Mr Hun Sen said the new flight is a welcomed addition to the existing 112 flights that connect Cambodia and Vietnam every week.

Chhay Sivlin, president of the Cambodia Association of Travel Agents, noted the number of Vietnamese tourists is on the rise.

“The flight will not only bring in more Vietnamese tourists. Foreign tourists that visit Da Nang now also have the opportunity to board a plane and travel directly to Phnom Penh,” she said.

Tourism Minister Thong Khon recently urged airlines in Vietnam to increase the number and frequency of flights to Cambodia, particularly to Phnom Penh, Siem Reap and the coastal areas. He said that at least 15 percent of Vietnamese tourists prefer air travel.

The minister noted that Cambodia aims to attract about one million Vietnamese tourists a year by 2020. Currently, about 900,000 Vietnamese tourists visit Cambodia every year.

Cambodia and Vietnam have also agreed to cooperate on marine tourism once the new seaport in Kampot province is completed, which is expected to happen in 2021.

Mr Khon said marine tourism cooperation is an effective mechanism to boost cooperation among Asean countries.

According to the latest figures from the Ministry of Tourism, from January to July, Cambodia welcomed 1,154,786 visitors from Asean countries, a 5 percent hike compared to the same period last year.

Source - Khmer Times

Nationals of six more countries granted visa-on-arrival into #Myanmar (Burma)

The Myanmar government has introduced new regulations to facilitate easier access for foreign tourists as another step towards opening up the country to the world . 

 

Started from October 1, tourists from six countries (Australia, Germany, Italy, Russia, Spain and Switzerland) can enter Myanmar on visa-on-arrival (VOA) at Yangon, Mandalay and Nay Pyi Taw International Airports.

Pre-arrangement is not required for passport holders of these six countries, they can simply apply for a visa 

at any of the three airports for a fee of US$50 each. 

Visitors from Japan, South Korean, Hong Kong and Macau were granted visa-free entry last year.

Indian and mainland Chinese nationals were also granted visas-on-arrival (VOA) into Myanmar in a move to draw more Asian visitors to the country.

In the second quarter, Myanmar saw an increase in arrivals from countries granted visas free and visas-on-arrival treatment. 

"We hope the new regulation will lead to more foreign travellers to Myanmar, to discover the country's unique culture and most of all, the hospitality of its people," said May Myat Mon Win, Chairperson of Myanmar Tourism Marketing.

Myanmar Tourism Marketing has organised roadshows, trade shows and media familiarisation trips for journalists, TV producers and digital marketing influencers from around the world. 

Visa-free and visa on arrival entry from these Western countries would further boost growth of the Myanmar tourism industry.

Source - The Nation

Thomas Cook demise will affect British tourism to Thailand for the rest of 2019

“British tourists have contribute between 900,000 – 1,000,000 tourists to Thailand annually for the past seven years.”

The failure of the British Thomas Cook travel business will cut the numbers of arrivals from Britain to Thailand for the remainder of this year.

Yuthasak Supasorn, governor of the Tourism Authority of Thailand says they are also assessing a drop in northern-European tourists where tourists use the services of Thomas Cook subsidiaries. The TAT will issue their new projections when the full impact of the failure of the 178 year old British travel business is assessed.

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 According to the Bangkok Post, talks will include agencies such as Asian Trails, the main destination management company for Thomas Cook, and hoteliers at popular beach locations such as Phuket, Phangnga and Koh Samui, namely Dusit Thani, Anantara and Mandara.

 In 2018, 987,456 tourists from Britain visited Thailand and 600,000+ from northern-European countries. British tourists have contribute between 900,000 – 1,000,000 tourists to Thailand annually for the past seven years. The figures for the first six months of 2019 had already exceeded 500,000 visitors (584,626) and would have pushed past the million-mark for the year, but that figure is now being re-assessed.

There is currently a repatriation of existing British tourists overseas, some 150,000, back to UK shores following the collapse of the business. Confusion reigns as some hotels are charging Thomas Cook customers before they’re allowed to check-out, fearful they won’t be paid.

A prominent hotelier in Phuket, who asked not to be named, says there is still a lot of confusion about who is responsible for payments of existing customers and contractors as they work through the web of agents, insurance companies, tour companies and hotel contracts.

 Kanokkittika Kritwuttikorn, director of TAT’s Phuket office, says the failure of the British travel company won’t affect the island’s upcoming Christmas and New Year holiday season.
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“Even with Phuket the preferred destination for British tourists, the closure of Thomas Cook will not affect overall tourism in the province, especially over the upcoming high season, she told the Bangkok Post.

President of the Association of Thai Travel Agents, Vichit Prakobgosol, says the closure of Thomas Cook will “slightly affect Thai tourism”, according to the Bangkok Post.

“The fall of the firm, caused by the failure of a Brexit deal and a depreciating currency, is a wake-up call for tour operators about the impact of digital disruption as intense price wars from online travel agencies take a bite.”

Source - The Thaiger

 

Hilton to open first hotel in #Cambodia

Hilton has announced plans to enter the Kingdom’s market, with its first hotel set to come online in Phnom Penh by 2022.

The exact location of the planned Hilton hotel has not been disclosed, but reports indicate that it will be near the Central Market.

Hilton Phnom Penh will have 280 rooms and an all-day dining restaurant, lobby bar, and fitness centre, among other amenities.

To operate it, the US-based firm has signed a management agreement with real estate development group GFC Company, according to a report by TTG Asia released last week.

Paul Hutton, Hilton vice president for Southeast Asia, said they decided to expand into Cambodia because the country is primed for growth. He noted that the Kingdom experienced the third-largest increase in the number of international tourist in Asean last year, behind Vietnam and Indonesia.

“We believe the strength of Hilton brand will go a long way in helping to boost Phnom Penh as a tourism destination,” he said.

Cambodia has become an attractive destination for international hotel chains. Already several well-known international brands have a presence here: Sofitel Hotel & Resorts, Rosewood Hotels & Resorts, Park Hyatt, Raffles Hotels & Resorts, Six Senses, Hotel Emion, Ibis Hotels, Courtyard by Marriott, Alila Hotels & Resorts, Belmond, and Le Meridien.

Moreover, in July, UK-based Yoo Hotels & Resorts announced plans to build a hotel in Cambodia under its Yoo2 lifestyle brand.

According to data from the Ministry of Tourism, Cambodia welcomed 3.3 million holidaymakers during the first half of the year, an 11.2 percent hike compared to the same period in 2018.

The number of Chinese tourists, in particular, experienced strong growth. From January to June, 1.2 million Chinese nationals visited the country, a 38 percent increase.

 

Source - Khmer Times

Thailand set to introduce visa-free travel for Chinese and Indians

Thailand to open up visa-free stays

BANGKOK, 7 August 2019: As China and India emerge as priority targets for Thailand’s latest tourism promotions, visa-free-travel is back on the table for urgent consideration.

Last week, Minister of Tourism and Sports, Pipat Ratchakitprakarn, told Prachachat Business he intends to introduce visa-free travel for Chinese and Indians later this year.

Currently, citizens of both countries need to apply for a visa-on-arrival although the THB2,000 service fee has been waived until October this year.

The new minister says all that might change with both countries joining a long list of countries that enjoy visa-free entry for a stay of 14 days, possibly as early as 1 November.

This year’s target for tourism revenue, including domestic travel, has been set at THB3.4 trillion. Earnings from international tourists will reach around THB2.2 trillion while tourist arrivals should exceed 40.5 million.

The move is part of a broader policy to increase tourism revenue and reverse the slow down in the tourism growth rate.

Pipat says the Chinese market could still deliver as many as 11 million tourists this year up from 10.5 million. While tourist arrivals from India in 2018 reached 1.5 million, making it the sixth-largest source of visitors. The growth rate was an impressive 27% over 2017.

The latest proposal will introduce a one-year pilot project offering Chinese and Indian tourists visa-free entry starting 1 November, a day after the current Visa-on-Arrival project ends.

Pipat told Prachachat Business: “This time I would like to propose visa-free travel, not a free Visa-on-Arrival. I believe it would stimulate the tourism industry and result in a much stronger conclusion for the high season later this year.”

Source - ThaiVisa

THAI cancels all flights to and from Osaka after Typhoon Jebi

Thai Airways International (THAI) has cancelled more flights on the Bangkok-Osaka route due to the temporary closure of Kansai Airport after Typhoon Jebi hit the city.

The typhoon approached Japan on Tuesday at noon, damaging the airport and flooding the runways, Flt Lieutenant Pratana Patansiri, vice president for THAI’s aviation safety, security and standard’s department, said on Tuesday night.

Other airlines have also temporarily stopped flying in and out of Osaka.

The flights to be cancelled are:

1. TG622 scheduled to depart from Suvarnabhumi Airport on September 4 at 11.30pm and arrive at Kansai Airport at 7am (local time) the following day;

2. TG623 scheduled to depart Kansai Airport on September 5 at 11.45am (local time) and arrive at Suvarnabhumi Airport at 3.35pm.

Earlier, THAI had cancelled the Bangkok-Osaka TG672 flight, and the Osaka- Bangkok TG673 flight.

The airline has said it will closely monitor and assess the situation, and resume normal operations once Kansai Airport reopens.

THAI operates two round-trip flights daily between Bangkok and Osaka. For more information, visit thaiairways.com or call (02) 356 1111 (24 hours).

Source - TheNation

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#Bangkok - Khaosan vendors to ‘disobey’ orders from Monday

Khaosan Road vendors will resort to “civil disobedience” from Monday if Bangkok authorities do not allow them to sell their wares during daylight hours, a leader of the Khaosan Road Street Vendors Association said.

“We will defy the order and set our stalls up at the usual time,” Yada Pornpetrumpa said. 

The vendors are also planning to march to the capital’s City Hall at around 11.30am on Monday to seek permission to sell their wares during the day.

The Bangkok Metropolitan Administration (BMA) banned street vendors from trading during daytime since August 1. Though the BMA is coming up with a new regulation to allow trading from 4pm to midnight, vendors at present can only conduct their business from 6pm. 

 This time limit has meant a huge drop in income for daytime traders, largely because they have to hand their stalls over at 8pm to vendors who sell at night, Yada explained. 

“It’s like we set our stalls up for nothing. Now, we [daytime vendors] make only Bt500 or Bt1,000 daily,” she added. 

According to the 1992 Public Cleanliness and Orderliness Act, vending on the street is illegal. However, since Khaosan Road is known the world over for its vibrant street market, the City Hall decided to draft a municipal order allowing vendors to take over the Khaosan Road footpaths from 4pm to midnight. 

Khaosan vendors, however, said this order would cripple vendors who make a living by selling trinkets to backpackers and Chinese tourists during the daytime. 

Source - TheNation

Indonesia - Kaliurang hotels still open for business amid Mount Merapi eruption

Following the phreatic eruption of Mount Merapi on Friday morning, Yogyakarta has been experiencing falling volcanic ash from the morning until the afternoon. However, hotel operations in Kaliurang have not been affected.

Kalyana Resort Kaliurang manager Yohanes Widi Astono said to KompasTravel, “So far there are no warnings for the guests, as the National Disaster Mitigation Agency (BNPB) has not upgraded Mt. Merapi’s status.”

According to Yohanes, closure instructions have only been announced for tourist attractions around Mt. Merapi. Kalyana Resorts, located 7 kilometers from Merapi, is operating as per usual. 

“We experienced falling volcanic ash, but now it’s being cleaned up,” Yohanes said. 

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 However, he admits that several guests have canceled their bookings for the following couple of days. 

Similar to Kalyana Resort, @K Hotel in Kaliurang, Yogyakarta, is also remaining open. 

“@K Hotel is not affected by the Merapi eruption. We only experienced volcanic ash.” said @K Hotel Kaliurang assistant sales manager Sasha. The hotel, which is located only 8 km from Mt. Merapi, is still accepting guests, with several even prolonging their stay. 

Both Yohanes and Sasha said every hotel within the Kaliurang area already had disaster mitigation protocols prepared, including guest evacuation and hotel security. Currently, the hotels are waiting for official information from the government about Mt. Merapi’s status. The protocols have been in place at the hotels in Kaliurang since the volcano erupted in 2010.

 

Source - TheJakartaPost 

Mount Merapi National Park (TNGM) has closed all access routes to the mountain following the volcanic eruption on Friday morning at 7:32 a.m.

“All access ways to the tourist attractions, including hiking trails, are closed,”  

Mount Merapi National Park head Ammy Nurwati told KompasTravel on Friday morning.

Ammy noted that the national park management would keep an eye on tourists and mountaineers using the park’s facilities, as well as clear the summit area of hikers, “We are monitoring tourists [in the] inner part of the TNGM. The lava tour outside is also under our observation.”

Hiking on Mount Merapi is banned until further notice following the phreatic eruption.

 

Hong Kong named world's most-visited city once again

Although its top position was nearly usurped by Bangkok, Hong Kong remained on top, but it still has to face the growing number of tourists in the Thai capital and London, the United Kingdom. 

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When people think about Hong Kong, they probably think of high-class shopping and spectacular cityscapes that can be viewed from high-up gondolas. It's not surprising then that the city is the most-visited city on earth.

According to South China Morning Post, Euromonitor International’s latest Top 100 City Destinations Ranking has put Hong Kong at the top of the list for the eighth time in a row.

Although its position was nearly usurped by Bangkok, Hong Kong remained on top, but in the years to come, it still has to compete with the growing number of tourists in the Thai capital and London in the United Kingdom.  

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But even as Hong Kong’s relations with China worsen, which caused a slight decline in 2017, there is still tourist growth expected in the coming years for Hong Kong.

As reported by CNN, below are the top 10 most-visited cities (number in 2016/expected number in 2017):

1. Hong Kong: 26.55 million/25.7 million

2. Bangkok: 21.25 million/23.27 million

3. London: 19.19 million/19.8 million

4. Singapore: 16.6 million/17.6 million

5. Macau: 15.39 million/16.3 million

6. Dubai: 14.9 million/16.57 million

7. Paris: 14.39 million/14.26 million

8. New York City: 12.65 million/13.1 million

9. Shenzhen, China: 12.57 million/12.96 million

10. Kuala Lumpur: 12.29 million/12.8 million

Source - TheJakartaPost

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What is wrong in Thailand ?

In Holland we say

A man, a man - an word an word (Same a Rock)

(Een man, een man - een woord, een woord)

In Thailand is an word same a balloon.

The break their word in a minute.

An appointment has not any value, the come always to late (or not)

Same as a contract and a relation. 

 

The change from relation quicker than from their own car.

 

Difficult to live with, when you are always straight.

#Myanmar, (Burma) Golf tourism needs long drive out of bunkers.

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Myanmar is far from a golf tourist destination despite having many courses in different cities, said U Phyo Wai Yar Zar, vice chair of Myanmar Tourism Federation.

Speaking to The Myanmar Times, he said that golf tourism has a potential niche market but the local courses are not up to the expectations of international golfers.

“We have to try hard if we want to make Myanmar a golfing destination. We can count the number of courses that are of international standard. But that number cannot be compared with other regional countries which have already developed the game and facilities,” U Phyo Wai Yar Zar said.

There are no more than 10 tour agencies offering packages, including golfing.

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In Vietnam, there are 32 international courses. Myanmar has about 60 courses in the whole country.

Daw Su Su Tin, vice chair of Myanmar Tourism Marketing Committee, said, “Some tourists have tried golf courses in neighboring countries. A few tours operators are offering a golf program in their itinerary but we cannot promote golfing tourism too much.”

“Myanmar has fine weather, not as expensive as other countries and has a huge potential for golf tourism development,” she said.

U Phyo Wai Yar Zar added, “People know Myanmar as a cultural tourism centre. Perhaps now is the time to promote traditional sport related tourism like chinlone (caneball) and other Myanmar sporting events.”

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“Chinlone as a sporting event cannot be found in other countries. Relevant government departments should make it popular as a tourism product,” he said.

“Also, the golfing market is for high-end tourists who are mostly big spenders. Other facilities such as high-end restaurants and amenities need to be developed,” he said.

Currently, there are no more than six or seven international fine dining restaurants in Yangon.

U Phyo Wai Yar Zar said, “We should first get the primary requirements done up and then continue with other things,” he said.

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“As I know, there’s no website, specific market figures on golfing for tourists. Concerned authorities need to build up the human capital first and the required infrastructure before promoting golf as a product,” he said.

“We have no information yet about the various courses and it is hard to find out who are those interested in golfing in Myanmar. Golfing is the best way to attract visitors as part of tourism,” U Phyo Wai Yar Zar said.

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Source - mmtimes

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Staffing Request

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A big business development group offer me to set-up in Bangkok a (international) Staffing Network.
Yes, a great challenge and opportunity.
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But this is very difficult in Bangkok / Thailand
The most to employ people can not write their own name in a common language.
The education level in Thailand is very low, the most to prefer playing games and be lazy.

I ask before started, to search first in the surrounding countries, like Myanmar / Cambodia / Vietnam. These countries speak and write better in a common language. 

But the want started from Bangkok. 

I must good thinking before I take the challenge.

Bali regency of Klungkung launches app for #tourists

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To commemorate the 109^th anniversary of Puputan Klungkung, Klungkung regency in Bali has launched a smartphone app for tourists.

The Android-based app, called Klungkung Tourism, features information on tourist destinations, accommodation, places to eat and public services that may help tourists during their trip.

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 On the homepage of the app, users find some listicles on places to go, as well as category options like Beach & Nature, Art & Culture, Temple, Museum and Event & Festival; each accompanied by photos and details about the place and GPS navigation. “Tourists can comment on and give likes to destinations featured on the app, which we will evaluate later,” said Klungkung Regent I Nyoman Suwirta.
The app also acts as a platform for locals to market their businesses, “The local people can use it to promote their businesses, whether they are related to the tourism industry or micro, small and medium enterprises located in Klungkung,” added Suwirta.

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Source - TheJakartapost

 

Cambodia - Uber gears up to enter market

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Representatives from global ride-hailing behemoth Uber confirmed the company’s interest in starting operations in Cambodia during a meeting this week with Transportation Minister Sun Chanthol, according to one of the minister’s aides.

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Ken Ratha, deputy director of cabinet of the Ministry of Public Works and Transportation (MPWT), told The Post yesterday that Uber executives visited the ministry on Tuesday to explain their business model to the minister and Phnom Penh municipal officials.

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“They are interested in our market so they came to seek the minister’s support by explaining Uber’s business model to him,” he said. “The minister showed his strong support for the company’s project and encouraged more discussions to elaborate on its operating plan.”

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Ratha confirmed that no agreement has been signed yet between the government and Uber, and that discussions are still at an early stage. He added that officials are now giving thought on how to regulate the ride-sharing model in Cambodia.

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“Uber’s business model is new so the minister and relevant stakeholders are currently thinking about which laws and regulations would apply to the company as well as how to best help their activity in Cambodia,” he said. 

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“There are no details right now on how Uber’s entrance to the market will affect the current taxi and transport industries. But so far those involved in the discussion have shown their interest to implement this smart business concept, with the hope that it will help to reduce traffic congestion and accidents.”

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Uber representatives did not respond to press inquiries yesterday, though have previously confirmed to The Post that the company is actively exploring the possibility of entering the Cambodian market.

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US-based Uber operates ride-hailing services in over 570 cities worldwide, pairing passengers and drivers using the company’s smartphone app. The company has faced regulatory hurdles in many markets, including Thailand, where the company’s services were banned and drivers are liable to be fined.

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In some markets it has also faced a backlash from metered taxi drivers, who accuse it of unfairly stealing their business.

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Sambath Sothea, director of local taxi operator Taxi Rouge, which operates a fleet of 110 taxis, said Uber’s entrance into the Cambodian market could ratchet up the level of competition in the sector. 

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However, he said he welcomed new market entrants and the increased competition, though he held some concerns that Uber’s as-yet unregulated ride-hailing model could lead to unfair competition due to its lower operational costs. 

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“We are a fully regulated operator and we will welcome any newcomers who are also fully compliant with regulation,” he said. 

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“We urge the authorities to maintain solid control over who can enter the market and make sure that Uber fully complies with the law in order to create fair competition. In that scenario we would be happy to welcome them in the country.”

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Sothea also took aim at the capital’s existing taxi companies, pointing out that many operate without licences and do not pay taxes, unfairly lowering their operation costs compared to legitimate operators. He added that unlicensed companies sometimes engage in price-gouging practices to gain a greater market share, creating a negative image that affects the entire industry.

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Uber’s absence from Cambodia has created room for home-grown ride-hailing services to blossom. The largest of these, Exnet Taxi, has enjoyed strong growth since its launch in June. Within two months, the company reported it had registered 60 freelance drivers to the application. That number has now grown to 600 drivers who undertake around 2,000 rides a month, according to Hor Daluch, the company’s owner.

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“Now it is much more convenient to use the app than before because the passengers can get a ride in around five minutes, while before it took a lot more time due to the lower number of drivers,” he said.

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Daluch said he was not concerned with Uber’s potential entrance in Cambodia, suggesting the company might end up judging Phnom Penh to be too small of a market for its business.

“Because Uber is a big company, maybe the demand in Phnom Penh might not be enough for them here compared to other cities in Vietnam or Thailand,” he said.

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Authors: Matthieu de Gaudemar and Hor Kimsay

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AirAsia sets up low-cost airline in Vietnam

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Malaysian budget airline AirAsia Berhad plans to start a low-cost carrier in Vietnam in a joint venture with local businesses to tap the country’s booming travel market, company representatives told Viet Nam News in Hanoi.

AirAsia signed a shareholders’ agreement with Vietnam’s Gumin Co Limited, Hải Âu Aviation Joint Stock Company and Trần Trọng Kiên, the owner of these two companies, to form the joint venture last Friday, which was announced by the airline to Malaysia’s stock exchange. 

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The carrier, expected to start flying at the beginning of 2018, will need an investment of 1 trillion dong (US$44 million), with AirAsia holding 30 per cent and Gumin 70 per cent.

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Vietnam is the latest country to lure Malaysian billionaire Tony Fernandes, the head of AirAsia, who is aspiring to build a low-cost airline network covering Asia, as the 28-per-cent growth in Vietnam’s aviation market is three times the rate in other Southeast Asian countries.

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Vietnam is also the fifth biggest aviation market in the region, after Indonesia, Thailand, Malaysia and Singapore, with a passenger volume that has doubled since 2013 thanks to a growing middle class population that accounted for 25 per cent of the total population by 2010.

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In recent years, AirAsia has established affiliates in Indonesia, Thailand, India and Japan. The airline is betting on low-cost airline models for international travel through its AirAsia X subsidiary. Fernandes has also ordered hundreds of Airbus aircraft worth billions of dollars to meet his ambitious growth plans, and he is in the process of selling a subsidiary specialising in leasing aircrafts to raise cash.

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However, Brendan Sobie, an analyst at CAPA Centre for Aviation, told Bloomberg that AirAsia would face huge challenges, because it was late in entering the Vietnamese market. “The market is currently well served by two carriers, VietJet Air and Jetstar Pacific. The growth rate will slow down in the coming years, as the low-cost market is now more mature.”

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The value of Vietjet Aviation Joint Stock Company shares has grown 52 per cent since its listing on HCM Stock Exchange in February 28.

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According to a report released by ACB Securities in December last year, passenger traffic in Vietnam will continue to grow at double-digit rates over the next decade, after an annual growth of 17 per cent in the last decade.

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Source - TheNation

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Cambodia - Push to reduce chemical dependency

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The Ministry of Agriculture is working to develop a procedural framework for the trade and use of biological control agents (BCAs) in agriculture in an effort to improve crop yields, protect consumer health and ensure continued access to key export markets. Regulation could also create opportunities for the import or local production of BCA products a possibility that has piqued the interest of foreign firms.

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Speaking yesterday at a consultative meeting on regulations and national registration of biological control agents, Sam Chhom Sangha, deputy secretary-general of the Ministry of Agriculture, said the use of BCAs could provide “holistic” support to Cambodia’s struggling agriculture sector, which he claimed had been damaged by the overuse of chemical agents.

“We need to find ways to boost agricultural productivity, encourage crop resilience and diversification and improve commercialisation,” he said.

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“Our fields are under-producing and this is because the soil has been damaged by years of reckless use of chemicals.” 

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Biological control agents are an integral part of pest management programs that use natural mechanisms such as bacteria, fungi, viruses, algae or natural insect predators to protect crops from devastating plant diseases and insect infestations. While already in limited use in Cambodia, a regulatory framework on the trade and use of BCAs would facilitate the import of these products and provide solid footing for local production.

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“BCAs can improve our yields once we finalise and implement their regulation, allowing our farmers to be less dependent on chemical pesticides,” explained Sangha.The Ministry of Agriculture is working with regional experts to draft a national regulatory framework on biological control agents based on ASEAN guidelines.

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Sangha said the government must speed up its adoption of regulations or risk challenges to its agricultural exports as countries tighten restrictions on the import of contaminated products.

In one recent example, the European Commission has given Cambodian producers of white rice until June and fragrant rice until December to eliminate the use of the fungicide Tricyclazole. Failure to comply could block rice export shipments to the European Union, the Kingdom’s largest market for milled rice.

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Thomas Jaekel, a regional GIZ expert, said BCAs offers farmers an “economically and environmentally viable” way to increase yields by building crop resilience and improving soil quality. However, convincing Cambodian farmers to cut back on their chemical fertilisers and pesticides can be a challenge.

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“BCAs are used to complement, not eradicate, the use of chemicals, but the problem is that Cambodian farmers and distributors of chemicals are convinced that the more you spray your crops the better they will be,” he said.

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Jaekel noted that when Indonesia adopted ASEAN regulations in 2014 and set up the procedures for properly registering products, there was a massive uptake in applications for BCA products.

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“A week after the BCA regulation was approved in Indonesia, they had already over 10 applications from foreign and local firms trying to register their products,” he said.According to GIZ data, the Indonesian government receives almost 200 applications annually.

Sarah Anderson, a Singapore-based research and development project manager for German industrial giant BASF, said that despite BCAs having a limited market in ASEAN, there was plenty of room to grow. She said BASF, which has an entire arm dedicated to research and development of BCA products, would consider exporting to Cambodia if clear regulations were put in place.

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“The problem is that there is still a gap between government intentions and those of the traditional chemical distributors,” she said. “Easily 5 percent of the pesticide market in Cambodia could be replaced by bio-pesticides.” 

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However, she said the use of the products hinged on the government cutting red tape. “If the regulations are too strict or large companies see that costs are too high, they won’t enter the market,” she said.

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Ieng Sotheara, founder of Entree Baitang Co Ltd, said local demand for BCAs was growing. His company has been distributing Trichoderma – a naturally occurring fungicide that also protects plants against pests and toxins for the last two harvest cycles. 

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Last year, the company sold 100 tonnes of compost impregnated with Trichoderma. This year it has orders for 500 tonnes.

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Sotheara said he sells the locally-produced Trichoderma at $12 per kilo, or $400 per tonne when mixed with compost.

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“Some of the rice farmers say that it has increased their yields by 20 percent,” he said.

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Source - PhnomPenhPost

Vietnam - Gov’t set to relax farmland ceiling

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Viet Nam News MEKONG DELTA — The Government is considering relaxing limits on individual farmland holdings, a move largely welcomed by experts despite misgivings about some negative social impacts. 

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Allowing larger land holdings will greatly facilitate modernisation of the country’s agriculture sector, many experts say.

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Currently, the allocation quota of farmland for annual crops for each household or individual must not exceed 2-3 hectares. Many people have been arguing for sometime that this limit runs counter to the needs of co-operatives and businesses engaging in industrialised, large-scale agricultural production.

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The national average land allocation for each household is extremely small at around 0.5-0.7ha. The Ministry of Agriculture and Rural Development (MARD) reckons that in order to overcome poverty, on average, each rice cultivating household must own at least 2ha.

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In a recent resolution, the government tasked the MARD, the Ministry of Natural Resource and Environment, and the Ministry of Justice, to prepare amendments to the existing Law on Land by the end of this year, with the focus on rectifying farmland quotas.

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Vũ Trọng Khải, former rector of the School for Training Rural and Agriculture Development Management Experts, said the government should have done this long ago.

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“The existing allocation quota that has been in place for years has actually hindered agricultural production,” he said.

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Khải pointed out the fact that the Law on Land also contains contradictory clauses, in that it stipulates a ceiling on how much land a farmer can own, but imposes no such limit on businesses.

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“That’s why some people still can work around this limit. Sáu Đức, a farmer I know in An Giang Province, had accumulated some 70 hectares of farmland years ago, despite the restriction. However, the ‘excessive’ land parcels are all registered under his relatives’ names. When he was able to open a company, he used the company’s legal entity to gather back all the parcels, and now he owns some 150 hectares,” Khải said

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Cambodia - BigPhone dials into local market

A man browses Facebook on his smartphone in Phnom Penh.

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 Mobile World Investment Corp (MWG) – one of the largest mobile phone and electronic products distribution chains in Vietnam – will open its first store in Cambodia, operating under the name BigPhone.com, according to Vietnamese state media.

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Construction on the first 150- to 200-square-metre store in Phnom Penh is nearly completed and the branch is expected to open this quarter, Vietnam News Agency reported on Wednesday.

The English-language news outlet quoted MWG director-general Tran Kinh Doanh as saying Cambodia was the first market for the company’s regional expansion, which will also see stores opened in Myanmar and Laos.

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“Cambodia was chosen to be the first country for the group to approach in Indochina,” he said.

Established in Ho Chi Minh City in 2014, MWG is a fast-growing retail chain for mobile phones and digital devices, including mobile phones, tablets and accessories. It operates a network of stores as well as an online channel.

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MWG (Cambodia) Co Ltd registered with Cambodia’s Ministry of Commerce last October. The company’s Vietnamese directors could not be reached for comment yesterday.

A study on cellphone and internet use in Cambodia published last year by the Asia Foundation revealed that the Kingdom’s market was already heavily saturated. Over 94 percent of Cambodians claimed to own their own phone handset, with nearly 40 percent of those surveyed claiming to have at least one smartphone.

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Bung Hor, CEO of T-Shop, a Phnom-Penh based electronics products distributor with eight branches, said yesterday that demand for mobile phones and accessories had grown significantly with deepening smartphone penetration. 

He said the rising demand had driven his company’s expansion, and he was confident there was still room in the market for new retailers of mobile phones and their accessories.

“There are more and more competitors while the demand is also higher,” he said.

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Source - PhnomPenhPost

Coffee Cup Size - Bangkok

lets you pick your cup from menu on models’ breasts

 A new coffee shop has become a hot topic of discussion online after photos of a male customer picking his coffee from a menu on a model’s chest circulated online.

But can you actually touch the pretties? Nope, you can only point (and obviously take a photo of yourself pointing at them and Instagram it).

“No, customers aren’t allowed to feel the models. They can only point [at the menu],”

The shop owner said the models will stand by for a few days, but if his business can still afford having models in the cafe, he’d like to continue hiring them to entertain customers.

The baristas and waiters also wear T-shirts with the menu printed on them. But he said that the oh-so-tight tank tops are just for the pretties.

While some people say the women in tank tops are sexist, the shop owner said that a pretty in a tank top is nothing compared to what goes on at the Motor Show.

"It's their opinion. I'm happy that people are paying attention to the cafe. It just means my marketing plan is successful."

Surprisingly, he said most of his customers are normal office people and university students who need their morning coffee.

Source: Coconuts.co

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Our Coffee Shop in Bangkok